Hays posts softer Q1 as permanent hiring weakens, net fees fall 3pc
By Iain Gilbert
Date: Monday 12 Oct 2026
(Sharecast News) - Recruitment firm Hays said on Monday that first‑quarter trading remained soft, with group net fees down 3% like‑for‑like, as permanent hiring weakened and several country exits continued to weigh on reported numbers.
Temp and contracting fell 1% on a like‑for‑like basis, with volumes broadly stable and German hours worked performing in line with expectations. Permanent net fees dropped 7%, driven by a 12% decline in volumes amid ongoing fragility in Northern Europe, though Southern Europe and North America delivered growth.
Regionally, Germany was down 6%, UK&I fell 5%, ANZ slipped 3% on a like‑for‑like basis, while Rest of World was flat.
Hays said consultant net fee productivity rose 8%, marking a twelfth consecutive quarter of improvement, supported by higher‑salary placements and investment in AI‑enabled tools.
The FTSE 250-listed firm also stated that September net fee growth was -2%, with temp and contracting showing greater resilience than permanent, and noted that it expects stable market conditions in the near term.
Consultant headcount fell 1% sequentially and 9% year‑on‑year, while non‑consultant roles were down 15% as structural cost‑saving initiatives continued. Hays has now delivered around £125m of annualised structural savings since FY24, with £10m achieved in Q1 and a further £50m targeted for FY27.
As of 0900 BST, Hays shares had sunk 7.39% to 59.50p.
Reporting by Iain Gilbert at Sharecast.com
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