Recruitment costs skyrocket as companies seek skilled workers | City & Business | Finance
Group CFO Paul Venables said that due to intense competition for skilled workers, the white-collar recruiter has seen candidates in certain industries offered pay increases of up to 20% for change jobs.
He said: âEmployers have been caught off guard by the speed and acceleration of the economic recovery, and it has been much stronger than expected.
“There is a shortage of people, so they have to pay more than they would have before the pandemic.”
September was the best month for Hays since the start of the pandemic, helping its first-quarter expenses to rise 36% from the same three-month period last year.
He said a 58% increase in permanent fees spurred its growth, while income from temporary job placements increased 22%.
Hays saw a 44% increase in costs for its UK branch in the quarter, driven by âexcellent growthâ of 69% in ongoing costs.
Temporary incomes increased by 29%. Fees for private sector employers rose 57 percent, while those in the public sector rose 21 percent.
While most regions saw fee growth in line with overall UK activity, Hays said the North West and Midlands saw the strongest growth, up 74% to 51 % respectively. London rose 46 percent.
The UK and Ireland were Hays’ best performing region, with net commissions up 44%.
The United States, South America, Asia and Europe recorded growth of 37%. Germany grew 31%, while Australia and New Zealand revenues increased 29%.
Neil Shah, chief research officer at Edison Group analysts, said: âWith UK job openings peaking in 20 years, the group appears to be in a privileged position to thrive.
“However, the outlook for the sector retains an element of uncertainty due to a potentially disruptive combination of labor shortages, inflation and the end of the leave regime.”