War for talent and skyrocketing wages push fees at job giant Hays to record levels in 15 countries

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The announcement comes on the heels of last week’s controversial shelving of £1.3bn in tech and AI funding.
The announcement comes on the heels of last week’s controversial shelving of £1.3bn in tech and AI funding.

Recruitment giant Hays said this morning the company is benefiting from higher wages around the world as it sets up potential candidates with jobs in industries.

Job numbers have been strong, leading to increased competition from companies for workers, and helping to push up pay – although often not by enough to offset runaway inflation.

“While macroeconomic uncertainties are increasing, we have a clear strategy and our key markets continue to be characterised by skill shortages,” said chief executive Alistair Cox.

“Our fee growth is also supported by improved margins and wage inflation globally.”

CEO Alistair Cox

But the business has also taken a hit in China, due to stricter Covid-19 regulations persisting, while the global economic outlook is uncertain.

Unemployment has – so far at least – not been one of the economic problems facing policymakers worldwide.

During the three months to the end of June, Hays made record fees in 15 of the countries where it operates, including Germany, where it makes more money than anywhere else.

German fees rose 29 per cent, the business said, as it also reported rises of 22 per cent in the UK and Ireland, 12 per cent in Australia and New Zealand, and 24 per cent in the rest of the world.

But the final category includes China. Like its rival Page Group on Wednesday, Hays reported a drop in the country, where people are still living under heavy coronavirus restrictions.

The fees that Hays got from China dropped by 5 per cent over the quarter, with the mainland particularly affected.

Elsewhere in Asia, Japan was a standout performer as fees rose 65 per cent, while Malaysia grew 27 per cent.

“We finished our financial year strongly, delivering record quarterly fees overall and with 15 countries producing quarterly fee records, including our largest country of Germany,” Mr Cox said.

“Fees and activity were stable at high levels through the quarter, driven by good client and candidate confidence.”