An interim management statement from recruiter Hays shows 14% net fee growth (at constant currency) in its temporary divisions globally in the quarter ending 31 March, almost three times the 5% figure for permanent income.
Speaking to Recruiter, group financial director Paul Venables says “no specific trend” has led to this picture, although he does identify growth in the interim market, which Hays classifies amongst temporary recruitment, as a factor.
He says: “I think that interim is the new permanent in some countries”, which impacts upon the figures significantly given that in Germany, which saw 36% net fee growth, 90% of Hays’ business is interim and temporary.
Venables also tells Recruiter
that the present strong health of international utilities and energy markets which are “by their very nature” project-led, is also a factor.
He also commented to Recruiter that net fee growth internationally of 10% across the board at constant currency contrasted with a 5% decline in the UK – a similar situation to that shown in Michael Page International’s results yesterday
, as reported on recruiter.co.uk
“Fundamentally,” Venables says, “the international growth will always be materially higher than the UK,” given that while 80% of hiring in the UK is done by agencies, this can be as low as 5% “in places like Brazil or Germany… so we are in recruitment terms over 30 years behind”.
For more on major recruiters’ international growth and its relation to their UK performance, see p20 of the new issue of Recruiter
, out tomorrow, 13 April.