𝐏𝐫𝐨𝐟𝐢𝐭𝐬 𝐝𝐨𝐰𝐧 𝟗𝟐%
Reading about "Profits down 92pc at Hays as it struggles to fill jobs," it’s clear the recruitment industry is under pressure. Hays, a FTSE 250 giant, is facing a significant challenge: plenty of jobs, but low confidence among clients and candidates is dragging out hiring times. The timing of public holidays in Germany, their largest market, only made matters worse, leading to a 14% drop in net fees and a staggering 92% plunge in profits.
They’re cutting £30 million from their cost base, with plans to cut another £30 million. While cost management is necessary, it’s critical not to sacrifice service quality or team morale. Even in tough times, investing in your people is what sets a business up for future success.
Hays is navigating a challenging market, and their September outlook is crucial. But what stands out to me is the need for agility and innovation in such times. It’s not just about filling positions—it’s about understanding the shifting motivations of both clients and candidates. Diversification is also key; relying too heavily on one market, like Germany, can expose a business to unnecessary risk.
In tough times, my advice is simple: observe the masses and do the opposite. This is the time to reassess strategies, explore new markets, and invest where others might hesitate. The businesses that thrive aren’t just those that survive downturns—they innovate and grow.