In 2024 so far two leading recruitment companies have struggled to grow. These companies are called Michael Page (Page Group) and Hays. The results are less than compelling. With a drop in revenues, does this mean that the recruitment industry is struggling to attract talent? Are young motivated outgoing individuals turning to other industries? We investigated it.
Page Group has grown dramatically over the years. The company has been highly visible as well. This year the results say something else though.
A first glance at the results of Page Group might be of concern. If you are anywhere apart from the Americas, they may be worrying. Overall, Page Group has shrunk. And this phenomenon is global. To make matters worse, its Page Groups home market, the UK, that has shrunk the most. 18.5% according to the companies half year results. Asia Pacific isn’t far behind, shrinking by 17.8%. Whilst the EMEA region has ‘only’ shrunk by 11.4%.
The main reason for this drop in revenues has been negative conversion rates and challenging market conditions in the UK and APAC. This has been exacerbated by central cost allocation too.
What is the Focus at Page Group in 2024?
Nick Kirk, CEO of Page Group has offered his thoughts. Whilst the cash reserves of the company have collapsed by over 35%, he still believes that over 1 million lives have been changed due to the social impact of the group.
Nick highlighted how technology has and continues to be a tough sector globally. At the same time he believes that India, Latin America and MEA are showing signs of growth. Most importantly, he believes that Page Group needs to diversify. The company’s reliance on permanent recruitment is something that the leadership team will be addressing.
Where does the leadership team at Page Group see the potential for growth? In outsourcing.
Is the Outlook Better for Hays in 2024?
Another leading recruitment business based out of the UK; Hays closes its financial year each June. However, the results are nothing to be proud of. Hays has shrunk by 12% since 2022-3.
In the latest financial report the leading recruitment business has explained how even the temporary business part of the company has shrunk by 7%. At the same time permanent recruitment is down by 17% even with a price increase of 8%. The results have meant that Hays has had to look at cutting costs. It has meant that the company has shut 16 offices and are reviewing further locations to close.
Just as Page Group highlighted tough economic conditions, Hays has the same concern. But in the Hays report there has been one other addition. The company have trimmed the total headcount of recruitment consultants by 9%.
James Hilton, CFO of Hays has added his thoughts to the financial review. He has explained how 1,900 people have had to leave Hays during the year. Advertising spend is down by £3 million.
Dirk Hahn, Chief Executive of Hays, goes further. He believes that increasing proportion of non-permanent recruitment fees is going to be a strategic lever going forward. Much as Page Group stated. He sees Italy, Poland, and Spain as the markets where Hays can grow temp and contracting volumes. He is also going to move 400 consultants into ‘more attractive business lines’. Hinting at how recruitment might not be as appealing as it once was.
What about the Talents?
Recruitment businesses are like doctors. They don’t make great patients. And whilst they tell you they want to help you hire the best talent; they don’t always hire the best talents for themselves. It’s ok when you see their logo on premier league football games. It’s also ok when you get a high-quality report about market trends. Recruitment looks very attractive then. It used to be a great place for young people to build a career.
Today things have changed. Recruitment companies might still recruit talents, but its one thing talking about the world of quantum computing, metaverse, or fintech. It’s another thing to be able to work in those sectors. And. Recruitment businesses are notoriously slow at embracing technology themselves.
Some of the insights in the Page Group and Hays reports suggest an increased investment in technology. The question is whether this has been an afterthought. Talented people rely on technology. Today, not tomorrow. Have recruitment companies done enough to attract talent to their own teams?
Is Training in Recruitment fit for the Metaverse?
Many of us ‘old school’ recruiters were always told that recruitment wasn’t ‘rocket science’. It was often a numbers game with a bit of a personal touch. Today, this training isn’t as useful anymore. Nobody really wants to understand how competencies work. People want a github account with some history of coding. A clean Instagram profile. Or someone who seems popular due to their online ecosystem. These concepts were unheard of in the 90s when companies like Page Group and Hays made their names.
As we enter the realms of Web3. Enter the post-COVID reality of being able to hire someone from anywhere in the world. Is recruitment the right place for talented people to go if they want development? Perhaps. But more could be done.
Does your recruitment partner take the topic of talent seriously? Does your recruitment partner already offer flexible work to talented individuals on the market? Do you want to talk to the specialists at Verita HR to find out more?
Verita HR offers services including RPO | Permanent Recruitment | Outsourcing | Media Services
If you are looking for a role in financial services or Fintech, then click here.
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Content at Verita HR News is brought to you in collaboration with the editorial team at Magazyn Rekruter. Magazyn Rekruter, a brand within Verita HR Group in Poland, is the longest standing
recruitment and human resources industry magazine in Central Eastern Europe. The first issue was published in March 2010. Find out more at: Portal Branży HR i Biznesu (magazynrekruter.pl)
See Also:
Who is the Best Fintech Recruitment Business in Poland? – Verita HR
