Relay Recruitment has used its record £3.3 million turnover for reinvestment in major expansion plans.

The human resources firm, which has its head office on Salem Street, has opened a new site in Leeds in a move which will see its operational costs rise a further £100,000.

The announcement is the first in a planned multi-site expansion programme over the next few months.

Relay, which sees more than 3,000 qualified people seeking employment pass through its doors every year, has also expanded its staffing level by five people.

The firm, which has invested heavily in technology and personal development programmes to increase its growth strategy, says the move should increase turnover to around £4.5 million.

But Relay's head office is definitely set to stay in Bradford.

Steven Street, managing director of the firm, said: "Bradford is Relay's home. It remains a very viable area and is one that has huge potential over the next 20 years.

"A lot of competitors rushed into Leeds and got their fingers burnt. But we held back to study every aspect of the market and conditions there.

"Consultancies saw Leeds, with its rapidly growing economy, as some sort of Eldorado. In most cases. though, they found it difficult to compete there.

"Not only were they hit hard by some of the highest rents in Europe, but they were also scuppered by their working practices.

"A willingness to pitch for the lowest rates meant they couldn't attract top staff for clients, which is ludicrous in an area with such a strong labour market."

Mr Street saud they were not interested in clients who seek the lowest common denominators.

He added: "We only appeal to progressive, innovative companies which can see the benefits of properly rewarded and engaged workers and which are prepared to attract and retain them by paying realistic salaries and supporting reward and recognition schemes."

He said the labour market nationally is at its strongest for 26 years and Leeds' workers are more aware of their marketability than most.

"Leeds has enjoyed immense growth in its economy and as a result the labour market has become polarised. This climate does not lend itself to registering and placing large numbers of people.

"The message and therefore the strategy is really quite different. Rather than facilitating people into work, our role will be to provide more gateway opportunities to those candidates choosing to exercise their marketability."

Relay, which has more than 1,200 hits on its website every year, recently joined up with jobs giant Monster.com.

Mr Street added: "The partnership with Monster.com has been a huge success for our appointment division, catering for more senior managerial and technical positions. We are currently enjoying more than 2,400 qualified enquiries annually because of it."

The firm, which this year carried out six bespoke redundancy consultations with local employers, has great success.

Mr Street explained: "We were able to redeploy a good number of those affected by redundancy into other local employers. My estimate is that this was in the region of some 200 workers."

The firm has more plans to extend staffing levels in the future and expects to take on at least two more staff at its Bradford head office. It also expects to see staffing levels at its new Leeds office double over the next 12 months.

Mr Street said: "It has always been our intention to provide a vehicle upon which those who are suitably motivated and driven are able to develop their own enterprises utilising our infrastructure, profile, mentoring and encouragement.

"As a niche player, our appeal is non-corporate, quick on its feet and individualised.

"Candidates and clients do not respond well to a sanitised and one-size fits all formulaic approach.

"This organisation's personality and identity comes from its people... this is where we are unique."