Hays profits rise as employers compete to fill vacancies

A view over the London skyline shows the City of London’s financial district as seen from St Paul’s Cathedral in London, Britain February 25, 2017. REUTERS/Neil Hall/

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  • Hays sees fees in the quarter jump 23%
  • Rival PageGroup reports 26% increase in profits
  • Employers race interviews to find talent

July 14 (Reuters) – Britain’s Hays (HAYS.L) reported an increase in quarterly profit on Thursday, reflecting higher revenue reported by other recruitment firms as competition for talent among employers spurred increase salaries and recruitment costs.

Hays, London’s largest listed recruiter, reported a 23% increase in fees for the April to June quarter.

PageGroup had said on Wednesday that its profits had risen 26% for the period, while another recruiter, Robert Walters (RWA.L), specializing in accounting, legal and technology jobs, had recorded a rise earlier this month. 26% increase in fees. Read more

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Hays chief financial officer Paul Venables told Reuters that “good candidates have plenty of choice” as employers raise the salaries they offer and speed up the hiring process.

“If starting salaries go up, then the fees we get are higher,” he said.

PageGroup boss Steve Ingham said after his firm’s earnings announcement that companies needed to schedule interviews faster and make hiring decisions faster to find the best candidates.

The two said there was a strong demand for technology and accounting positions.

But the labor market, which is sizzling with career changers and pent-up hiring after the pandemic, could see a leaner second half as cash-strapped companies scale back expansion plans to fight soaring jobs. costs.

PageGroup expects a weaker annual profit, amid concerns about an economic slowdown.

“That usually means a lot of companies are slowing down their hiring plans, which will naturally have an impact on us,” Ingham said.

Brokerage Jefferies cut its price target on Hays shares by 9.3% to 145 pence citing economic risks including political uncertainty in Britain and legislative headwinds to labor market flexibility in certain countries.

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Reporting by Amna Karimi and Eva Mathews in Bengaluru; Editing by Sherry Jacob-Phillips and Edmund Blair

Our standards: The Thomson Reuters Trust Principles.

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