The global specialist recruitment group reports today that, on a like-for-like basis net fees are down by 40% versus the same period last year. Net fees from the temporary employment business fell by 23% compared to the permanent placement business, which fell by 57%.
In the UK and Ireland net fees fell by 45% in the private sector as opposed to a mere 3% in the public sector.
The Asia-Pacific region is down by 46%, ROW fell by 25%. In Germany, where Hays are specialised in the IT sector, net fees experienced a relatively mild reduction of only 7%. The more favourable Euro and Australian Dollar exchange rates have had a buffering effect on Hays’s business results.
During the last quarter Hays reduced their head count by 8%. Over the financial year head count was down by a total of 26%.
Despite deteriorating conditions, Hays started new operations in India and Russia.
“Currently, demand continues do weaken in both our temporary and permanent placement businesses. The experience of our management teams across the world, our leading market position, the strength of the balance sheet, the early actions we have taken to reduce the cost base and our strategy of continuing to invest selectively, position us well both to deal with the short term market conditions and to capitalise on the long term opportunitiesâ€VbCrLf, says Alistair Cox, Chief Executive of Hays.