HAYS PLC
ANNUAL
REPORT & ACCOUNTS
2023
HAYS ANNUAL
REPORT FY23
Welcome to Hays' Annual Report for FY23, a year in which we made strong operational, cultural and strategic progress.
Despite increasingly challenging macroeconomic conditions, we delivered record net fees, £197.0 million of operating profit and returned £240.1 million to shareholders in core & special dividends and share buybacks.
As a global industry leader in recruitment, our strategy is designed to capitalise on powerful megatrends which drive the world of work. These include long-term skill shortages, changing work habits, new job category creation, continual need for upskilling and demographic changes. We are also market leaders in some of the most attractive, long-term structural growth markets globally. At Hays, we are 'Working for your tomorrow', and via our expertise and unique culture, we benefit many stakeholders across society. It is a privilege to be able to share these stories.
During the year, the Board commenced an orderly and transparent succession process to identify Alistair Cox's successor as CEO. Alistair has been a great leader for 16 successful years, transforming Hays from a UK-focused business to a diverse global leader in recruitment and talent services across many sectors, with over 80% of our operating profits now generated internationally. Throughout Alistair's leadership, Hays has helped many millions of talented individuals develop and thrive in their careers, and the Board would like to express its gratitude to Alistair for an outstanding career at Hays.
The Board was delighted to welcome Dirk Hahn, previously Managing Director of Hays Germany and CEMEA, as our new Chief Executive from 1 September 2023. Together, we look forward to writing many future chapters in 'Our Hays Story', benefiting society by investing in lifelong partnerships which empower people and organisations to succeed. Our services have never been as relevant in helping to find, create, retain and develop diverse talent, powered by our c.13,000 expert colleagues worldwide.
Andrew Martin
Chair
OUR HAYS STORY
We are proud to be industry leaders in recruitment, based on our global scale and deep expertise.
Our balanced and diverse business across 33 countries empowers our customers, enabling clients to find the talent they need to grow and helping people advance their careers.
The digital revolution is accelerating, and we will lead our industry through change. We believe the prize for adding real human value in a digital world is significant.
Our strong foundations in technology underpin our Talent Networks, providing deep and valuable data insights for our consultants and our clients.
Our speed and agility help us create the recruiting and talent services experience of tomorrow… enabling us to become trusted lifelong partners to millions of people and organisations. The best people, allied to the best technology, will deliver the best service.
HAYS' FUTURE AT THE HEART OF THE WORLD OF WORK
The world of work is rapidly changing, with clients and candidates facing many new challenges and opportunities. Powerful and accelerating megatrends shape the world of work.
For more information see page 3
CLIENTS
Skill shortages and job churn
Significant new demand in related talent services
Rapid new job category creation
Enhanced ESG requirements
More information on page 16
Organisation | Skill | Employee |
challenges | shortages | demands |
DemographicSocietal
challengesdemands
Hays sits at the heart of this rapidly changing work ecosystem, and we strongly benefit by solving our clients' talent problems
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Skill shortages | New job creation | ||||||||||||||||||||||
We have deep and | Particularly in structurally | ||||||||||||||||||||||
broad Talent Networks | growing sectors |
CANDIDATES
Demands for flexible working and changing work habits
Ageing population and other demographic changes
Significant need for upskilling and reskilling
Material inflation
More information on page 16
Job churn | Wage inflation | Workforce challenges |
Helped by faster | Our fees benefit | Creating, developing |
hiring decisions | from rising wages | and retaining talent |
FIVE REASONS HAYS IS POSITIONED TO WIN IN THE NEW WORLD OF WORK
Global scale and | 1 | Growing from | 2 | Strong enterprise | 3 | Our diverse | 4 | Broad Talent | 5 |
delivery capability | a position of | client relationships | SME client base | Networks | |||||
market leadership |
STRATEGIC PRIORITIES
Enable
Our strategy is underpinned by our continuous investment in People, Culture, Technology and Sustainability
OUR PURPOSE
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ys cult |
Grow
Materially increase core recruitment fees, particularly in long-term structural growth sectors and with Enterprise clients
Partner
Nurture lifelong client and candidate partnerships and build the deepest and most engaged Talent Networks worldwide
More information on page 6
Our purpose is to empower people | ||||
and organisations to succeed, | ||||
through investing in lifelong | ||||
partnerships with them. Over many | ||||
years, we have helped millions of | ||||
talented individuals develop their | ||||
careers, and are deeply committed | ||||
to helping many millions more in | ||||
the future. | ||||
Our 'social licence to operate' and | ||||
reputation are underpinned by this | ||||
purpose. We are determined that | ||||
S | 'Our Hays Story' is a sustainable | |||
one, in terms of our role in our | ||||
t | ||||
a | ||||
k | communities, our business | |||
e | ||||
h | operations and our ability to | |||
o | ||||
d | l | grow profits and cash flow in | ||
the long term.
Diversify
Substantially grow new revenue streams and partnership-based areas such as Talent Services and in Project Services globally
Enhance
Drive productivity to deliver
profit and cash, fund reinvestment and enable substantial returns to shareholders
and doing the right thing by our stakeholders. This means putting sustainability at the heart of our
business (more information on page 54).
Our stakeholders are central to how we integrate our strategy
with our responsibilities. We are
committed to open engagement. Our FY23 sustainability actions
have demonstrated significant,
tangible progress. These include the 1.9% increase in senior female
leadership to 44.3%, our c.85%
increase in volunteering hours, conducting our most comprehensive Greenhouse Gas (GHG) emission data collection
A | Our mission to be the world's |
leading recruitment and talent | |
ctions | |
services provider is based on | |
forming lifelong partnerships with | |
clients and candidates, providing | |
them with a first-class service | |
More information on page 5 |
in support of our Science-based
targets, enhancing our free learning portals and advancing
our work in DE&I globally, both
internally and with clients via our Vercida Consulting acquisition.
INVESTMENT CASE
Driven by our strategic priorities and many structural growth market opportunities, we believe there are three simple and compelling reasons to invest in Hays
Growth | 1 Scale | 2 | Returns | 3 |
We are market leaders in some of the most attractive recruitment markets globally, which offer significant long- term growth potential. Our ability to solve our clients' talent problems globally and at scale is second to none and we have increasing opportunities to grow in related talent services.
We have unrivalled balance, scale and diversity. Our deep relationships with large, medium and small clients are based on partnerships and trust, built over many years. Our expertise, people and culture, brand, infrastructure and financial strength will help us build the leading global recruitment and talent services business.
Our growth is increasingly derived from diverse, partnership- based revenue streams.
We will return significant cash to shareholders in the most appropriate form of core and special dividends, and via share buybacks.
More information on page 7
OUR YEAR
HIGHLIGHTS
FINANCIALOPERATIONAL
OVERVIEWSUMMARY
£1,294.6m | 8,590 |
Net fee income | Consultants |
FY22: £1,189.4m | FY22: 9,037 |
£197.0m | c.76,800 |
Operating profit | Perm jobs filled |
FY22: £210.1m | FY22: c.83,750 |
8.59p | c.245,000 |
Basic EPS | Temp and contracting roles filled |
FY22: 9.22p | FY22: c.250,000 |
5.24p | |
Core & special dividend per share | |
FY22: 10.19p |
SUSTAINABLE
BUSINESS
44.3%
Women in senior leadership FY22: 42.4%
17,673
Hays' employee volunteering hours
FY22: 9,433 hours
16,778 CO2e tonnes
Our scope 1, 2 and Business travel scope 3 GHG emissions
FY22: 13,780 CO2e tonnes(1); Science-based target (SBT) base year (2020): 23,527 CO2e tonnes(1)
£135.6m
Net cash
FY22: £296.2
More information on pages 42 to 47 | More information on pages 16 to 19 | More information on pages 54 to 67 |
Note | Unless otherwise stated all growth rates discussed in this Strategic Report are LFL (like-for-like), YoY (year-on-year) net fees and profits, representing organic growth at constant currency. (1) This is a restated GHG figure. Please see footnote (1) on our GHG table on page 66for more details.
IN THIS REPORT
01 Strategic Report
A description of our business model, markets and strategy.
3 Accelerating megatrends in the new world of work
-
A broad, diverse and balanced business
5 Our business model
6 Our strategic priorities
7 Our investment case
8 Key performance indicators (KPIs)
10 Chief Executive's review
16 Stakeholder engagement
18 How we create value
19 Value for our stakeholders
20 Our people our culture
26 Life at Hays
28 Customer partnerships, powered by our people and technology
34 In focus 1 - Accelerate growth in technology recruitment
36 In focus 2 - A great place to work
38 In focus 3 - Building more partnerships with clients
- In focus 4 - Empowering clients globally
- Finance Director's review
- Divisional operating review
- Sustainability in the world of work
- Task Force on Climate-related Financial Disclosures (TCFD)
- Principal risks
- Non-financialand sustainability information statement
02 Governance Report
How our Board of Directors sets strategic direction and provides oversight and control.
82 Chair of the Board's introduction to governance
84 Our Board of Directors
- Our governance framework
- Division of responsibilities
- How the Board works
94 Key activities of the Board
- Board and stakeholder engagement
- Workforce engagement
- How the Board monitors culture
- Board evaluation
- Nomination Committee Report
- Audit Committee Report
- Remuneration Report
- Directors' Report
- Directors' responsibilities
03 Financial Statements
Financial statements for the Group, including a report from the Independent Auditor.
150 Independent Auditors' Report
- Consolidated Group Financial Statements
- Hays plc Company Financial Statements
04 Shareholder Information
Supporting information for investors.
- Shareholder information
- Financial calendar
- Hays online
- Glossary
- Country and specialism list
More information online
Our investor website gives you direct access to a wide range of Company information
More information onhaysplc.com/investors
Read our views and advice on the world of work
More information onsocial.hays.com
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Hays plc published this content on 02 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 October 2023 12:20:16 UTC.