Cost inflation is biting many companies on the backside on their way out of the pandemic. But for recruitment groups such as Hays, it provides a shove in the right direction for profits. It’s not just lorry drivers that are in short supply, employers in white collar industries such as technology, accountancy and finance are also paying more to attract hard-to-find staff. Taking a fee based on a percentage of a candidate’s salary means rising wage inflation plays well for recruiters.
That’s on top of the broader rebound in hiring among employers, which meant net fee income was up just over a third during Hays’ first financial quarter and prompted earnings upgrades from analysts for the year.
Recruiters are capital-light businesses, so a recovery in
