Thursday 14 October 2021 3:38 pm

Hays benefits from Tech market labour squeeze

Recruitment firm Hays has reported strong growth in the first quarter of 2022 with fees up 41 per cent as labour shortages continue to bite the tech industry.

The international recruiter saw record fees in 12 countries with the UK and Ireland delivering fee growth of 44 per cent for the three months ending in September 2021.

In the company’s largest global specialism of technology, which accounts for more than a quarter of group fees, intake jumped by 36 per cent with employers shelling out 7 per cent more for new hires than in the same period last year.

Commenting on the Group’s performance, Alistair Cox, Chief Executive, said it had made a “strong start” to the financial year and praised “fee growth in all major markets.”

“Client and candidate confidence is high and there are clear signs of skill shortages and wage inflation,
particularly at higher salary levels,” Cox continued.

It comes as the UK tech sector battles acute shortages with vacancies regularly surpassing 100,000 per week in 2021 and a recent survey by Banking Circle found that the vast majority of European FinTechs and Banks are experiencing a tech skills gap.

Antony Walker, the Deputy CEO of TechUK, said “hiring is currently at its highest level for five years and has surged past pre-pandemic levels.

“Even at the height of the first lockdown, when the economic impacts of the pandemic were being felt across all industries, thousands of jobs requiring digital skills were being advertised – yet, most of them remain unfilled,” he added.

Tech recruiter Montash confirmed that the company is also seeing wages rise amid acute shortages. CEO Andy Larholt said “we’re seeing a rise in vacancies, not matched by a rise in candidates which continues to lead to significant fee inflation across the European technology market.”

On the back of bumper results the board of Hays confirmed that investors would receive a core and £150m special dividend payout of 1.22p per share and 8.93p per share each in November 2021.

Today, share price is up 2.65 per cent at the time of writing and stands at £1.67.

Read more: Hays operating profit to beat expectations after strong March hiring