Hays Q2 net fees increase as temp jobs drive growth

17th Jan 2023 08:06

(Sharecast News) - UK recruitment agency Hays said second-quarter net fees increased as demand for temporary and contract jobs grew faster than for permanent posts for the first time in seven quarters.

The company on Tuesday said like-for-like net fees in the second quarter to December 31 grew by 8%, with temporary segment jumping 9%.

"Growth was a result of our actions to increase fee margins and our focus on the most in-demand markets, supported by overall wage inflation," said chief executive Alistair Cox.

He also said the company's forward-looking client and candidate activity saw modest reductions in its permanent segment in several markets as client and candidate uncertainties increased.

"That said, our key markets continue to be characterised by acute skill shortages and wage inflation, and we are focused on further increasing fee margins while closely managing our overheads," Cox added.

Hays' peers PageGroup and Robert Walters last week slashed their outlook and warned that annual profits will be hit by macroeconomic challenges and their China exposure as the global economy braces for a slowdown amid soaring inflation and a cost of living crisis.

Hays, which has a workforce of about 13,000 employees and operates across 33 countries, maintained first-half operating profit guidance of £95-97m.

Reporting by Frank Prenesti for Sharecast.com