The hiring market remains stagnant, with no signs of an imminent recovery. This is highlighted by a more than 50% drop in annual profits at Hays, one of Britain’s leading recruitment firms. Over the past year, Hays has faced “increasingly challenging market conditions,” as businesses are hesitant to hire and employees are choosing to remain in their current positions. Dirk Hahn, the chief executive of Hays, noted that during a downturn, clients tend to have fewer roles available, are more selective, and require more interviews to find the right candidate. Meanwhile, candidates are more cautious in a difficult economy, aware that they may be the last hired and first let go.
The slowdown has impacted Hays’s main markets—Germany, Australia, and the UK—though Italy and Portugal have seen record fee income. Hays’s consultants generated a fee income of £1.11 billion in the year ending June, a 14% decrease from £1.29 billion in the previous financial year. Pre-tax profits fell by 51%, from £192.1 million to £94.7 million. Headquartered in London and operating in 33 countries, Hays is known as Britain’s largest recruiter of qualified accountants, although technology has become its most profitable sector.
Hahn, who has 27 years of industry experience, remarked that he could not recall such an extended period of downturn. In response to the subdued market, Hays has focused on cost reduction, primarily through workforce downsizing, with current employment around 11,000—down 22% from its peak 18 months ago. Hahn aims to position Hays “further up the food chain,” as demand for skilled and senior positions remains more stable compared to junior roles.
The prolonged downturn in the hiring market, worsened by global economic uncertainty and elections around the world, has led businesses to pause their expansion plans, while workers are less willing to change jobs without significant pay increases. Consequently, recruiters like Hays continue to face challenges, with industry sentiment indicating that recovery may not happen until 2025.
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