2024 has been a challenging year for two leading global recruitment companies, Page Group and Hays, both of which have struggled to maintain revenue growth. This downturn raises the question: is the recruitment industry failing to attract top talent? Are ambitious and motivated individuals shifting their focus to more innovative industries? In this article, we explore the current state of the recruitment sector.
Page Group’s 2024 Revenue Decline
Page Group, one of the most recognizable names in the recruitment industry, has experienced a significant global contraction. The UK market has been hit hardest. Revenues have shrunk by 18.5%. This is followed by Asia Pacific at 17.8%, and the EMEA region by 11.4%. Negative conversion rates and challenging market conditions in key regions, particularly the UK and APAC, have contributed to this decline. Central cost allocations have also put pressure on overall performance.
#PageGroup, the leading recruitment business in London, presented its results for first half of 2024. The picture the results paint could be better.
Is the #recruitment industry finally becoming disrupted? Are market leaders like PageGroup ready for what might happen tomorrow? pic.twitter.com/Sf8mqLYpCj
CEO Nick Kirk’s Strategy for Page Group
Despite a 35% reduction in cash reserves, Nick Kirk, CEO of Page Group, emphasizes the positive social impact of the company, noting that over one million lives have been changed through its recruitment efforts. However, he also acknowledges the company’s dependence on permanent recruitment as a risk. To counteract this, Page Group is now focusing on expanding its presence in outsourcing as a strategic growth opportunity.
Hays Recruitment Faces Challenges in 2024
Similarly, Hays, another UK-based recruitment giant, has reported a 12% revenue decline over the past year. Temporary recruitment, a historically strong segment for Hays, contracted by 7%, while permanent recruitment dropped by 17%, despite an 8% price increase. In response, the company has closed 16 offices and is considering additional closures. Hays has also reduced its headcount by 9% to cut costs.
Recruiter #Hays has seen a sharp decline in its fees reported
Hays said market conditions “remained challenging” as group fees dropped by 15% in the 3 months to June 30, 2024, compared to the same period in the year before. https://t.co/IjK7XBVBcl
Shifting Priorities in the Recruitment Industry
James Hilton, CFO of Hays, highlights that 1,900 employees have been laid off, and the company has reduced advertising spend by £3 million. Dirk Hahn, CEO of Hays, underscores the strategic importance of growing temporary and contracting volumes in markets like Italy, Poland, and Spain, as the company seeks to adapt to changing market dynamics. This shift hints at a broader trend: recruitment may no longer be seen as an attractive career path for top talent.
Is the Recruitment Industry Struggling to Hire the Best?
Recruitment companies, despite their expertise in hiring talent for others, often struggle to attract the best talent for themselves. Once a go-to career for young professionals, recruitment is now competing with industries like fintech, quantum computing, and the metaverse. Additionally, recruitment firms have been slow to embrace technology and digital transformation, which may further limit their appeal.
Evolving Recruitment Training for the Digital Age
Traditional recruitment training, which emphasized personal interactions and numbers, is becoming outdated. In today’s digital-first world, skills such as coding, social media expertise, and building online ecosystems are far more valuable. As the industry enters the Web3 era, recruitment firms need to modernize their approaches to attract and retain top talent, while also leveraging technology to stay competitive.
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.
#recruitment #Poland #Hays #PageGroup #Talent #VeritaHR
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
