- Now its second-largest market globally, Employment Hero is accelerating UK investment with Yorkshire and the South West identified as priority growth regions.

Employment Hero, the global AI-powered employment platform, has surpassed £200 million in global annual recurring revenue (ARR), with UK ARR up 84% in the past 12 months , as it accelerates investment in Britain’s SME market.

The results mark another strong year for the business, which Ben Thompson and Dave Tong founded in Australia in 2014. Globally, Employment Hero added more than £50 million in ARR in a year, has grown more than tenfold in six years and is now free cash flow positive. The UK, identified as a key growth market in 2023, is now Employment Hero’s largest market outside of Australia and its fastest-growing.

Since the start of 2025, Employment Hero has grown its UK customer base by 22%. More than 30,000 customers, including Leukaemia UK, 1Rebel, Townhouse Salons and Tropic Skincare, now use its Employment Operating System (eOS) to manage HR, payroll and hiring. UK headcount has also grown 58% since January 2025, reflecting continued investment in the market.

Built on Hero AI and a decade of payroll and employment law expertise, the platform brings the entire employment lifecycle into one connected system. Globally, Employment Hero processes £80 billion in salaries each year through its payroll infrastructure.

Other recent developments include the Recruitment Agent, which combines verified employment records with data from its network of 2.3 million pre-vetted, work-ready candidates to connect businesses with talent. The company will also launch a new compliance agent built on Hero AI, designed to help small businesses navigate the growing complexity of UK employment legislation and stay compliant. Further enhancements to its payroll capabilities are also planned, including faster payments that will reduce manual processes.

Regional investment at the heart of UK expansion

As part of its next phase of UK growth, Employment Hero is taking a highly targeted regional approach to investment, with Yorkshire and the South West identified as priority markets.

The strategy reflects the company's ambition to reach more of Britain's scaling businesses beyond London, supporting employers in regional economies where SMEs play a critical role in local employment.

In Leeds, Employment Hero recently announced a partnership with Leeds United, bringing together two organisations with a shared ambition to support the city's business community.

Kevin Fitzgerald, UK Managing Director at Employment Hero, said: "Running a SME business in Britain isn’t getting any easier. Employment costs have risen and with the introduction of the Employment Rights Act, keeping up with employment legislation has become a job in itself, even for employers with established HR teams, particularly as headcount grows. Despite these pressures, Britain's businesses remain hugely ambitious and we see enormous opportunities across the nation, especially with the advent of AI. Our investment is about getting closer to the businesses powering local economies so we can understand the challenges they face and give them the tools to scale."

Ben Thompson, Co-Founder and CEO, Employment Hero, added: “Surpassing £200 million in annual recurring revenue is a significant milestone, and it reflects the growing demand for AI-powered technology that simplifies employment for businesses and their people. The UK is a major priority for me, and the results we’re seeing show how important we are to growing British businesses. We've spent the past decade building a platform that goes far beyond traditional HR and payroll software. We want as many people in jobs as possible and we know that a key driver for that is making employment easy for British businesses - we’ll continue to do everything we can to support that.”

Rachel Geller, Managing Director of Insight Partners, said: “Ben and Dave have a compelling vision for the global future of employment and labour management, and they’ve executed on it exceptionally well to date. Employment Hero runs a highly effective business and has turned that focus to driving stand out innovation within their product. Employment Hero's commitment to driving real AI outcomes for customers is what sets them apart."

Notes to Editors

About Employment Hero

Employment Hero is a global, AI-powered employment platform transforming the way businesses hire, manage, and pay their teams. Its intelligent Employment Operating System (EOS) uses Hero AI to automate HR, payroll, recruitment, and employee engagement, delivering real-time insights, predictive recommendations, and compliance safeguards. Serving over 350,000 businesses and 2.5 million employees worldwide, Employment Hero leverages AI-driven automation to reduce administrative overhead by up to 80%, creating smarter, faster, and more compliant workplaces. For further information, please visit www.employmenthero.com/uk

View source version on businesswire.com: https://www.businesswire.com/news/home/20261112608934/en/

Media contact
Jessica Hale, PR Manager UK
jessica.hale@employmenthero.com
07961974465

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/C O R R E C T I O N -- Employment Hero/