Hays Plc will focus on hiring for roles that are harder to replace with artificial intelligence (AI), as recruitment companies globally seek to mitigate the AI threat to the jobs market.
"We’ve been through downturns before but this time is different,” the company said in a Thursday (Aug 20) statement. "The future is significantly uncertain, shaped by the potential impact of AI on jobs, disintermediation by technology platforms, increased macroeconomic uncertainty, and threats from deglobalisation.”
Hays’ new strategy will target "higher-value” roles "where the potential impact from AI is lowest.” It also said it will concentrate its focus on just 16 countries, down from its current presence in 31 markets, and invest in six global specialisms including technology, construction and life sciences.
Recruiters globally have been grappling with the double threat posed by AI, which is replacing human labour and moving companies to embrace AI-assisted applicant screening. Companies including Randstad NV and Robert Walters Plc are honing in on niche, in-demand jobs in the AI economy, like database architects and cybersecurity experts, to counter the threat.
Hays reported full-year adjusted operating profit of £48.6mil (US$66.2mil/RM267.77mil), ahead of its own guidance and analyst estimates. The recruiter also secured about £50mil (RM275.9mil) in savings, with a further £50mil (RM275.9mil) in annualised savings in fiscal 2027.
The results "suggest the recruiter is beginning to regain control of the factors within its own influence, despite a subdued jobs market,” Garry White, chief investment commentator at Raymond James, said.
Overall fees decreased by eight per cent over the year, weighed by recruitment for permanent roles which was "subdued”, Hays said, noting "modestly lower activity and placement conversion through the year in markets outside North America, Southern Europe, and Asia.” Hiring for temporary and contract-based roles was "relatively resilient.” – Bloomberg
