Opportunities amidst challenges
Temporary has significantly outpaced permanent recruitment throughout this economic cycle, offering clients the flexibility they need in uncertain times. For Hays, a leader in non-permanent staffing, this presents an ideal opportunity to capitalise on the growing demand for flexible working arrangements. As Hays continues to refine its operating model, the focus on streamlining processes across markets, such as Germany, Australia, and the UK, ensures that the business is well-positioned to drive productivity and efficiency.
By adopting a strategy of micro-segmentation and hyper-specialisation, successful agencies are leveraging precise business analytics to direct resources where they will generate the highest return. Hays is also taking decisive actions globally — reallocating resources to more attractive business lines and ensuring scalable delivery models in key focus markets like the US and Japan. These strategic efforts, including the redeployment of 400 consultants into high-growth areas, highlight the importance of continually adapting operational models to meet evolving market demands.
Winning strategies in challenging times
There’s a great deal of opportunity ahead, even in the face of slower growth. Agencies like Hays that focus on boosting market share and driving internal productivity are not just surviving but positioning themselves for bigger wins when the market rebounds. At Bullhorn, we’ve seen that top-performing agencies share a common trait — they have adopted automation and AI to increase productivity and deliver faster placements.
Productivity and efficiency through automation
With the economy so uncertain, agencies remain laser-focused on productivity and efficiency. Having restructured in the most recent fiscal year, Hays has leaned into automation and AI to help your remaining recruiters be more productive. Bullhorn’s 2024 GRID Industry Trends Report revealed that the best-performing agencies are 2.4 times more likely to have automated client requirement gathering and 32% more likely to automate candidate screening. These top agencies are also placing candidates in less than 20 days, a key indicator of efficiency in a tough hiring market. It’s this kind of automation that will help Hays maintain competitiveness, increase efficiency, and ultimately thrive during uncertain economic times.
Diversifying business lines yields financial benefits
Adding new services such as consulting, project management, and managed teams has continued to show strong revenue gains. This strategy closely correlated with winning new business in 2023. For Hays, this approach has allowed the agency to not only offer flexible and cost-effective solutions to clients but also create true partnerships. This diversification drives resilience, positioning Hays for sustained success through different economic cycles and contributing to the “flywheel effect” often referenced by your CEO, Dirk Hahn.
Improving conversion rates with a better talent experience
Top-performing agencies are heavily investing in technology to improve the overall candidate experience. While Hays has made strides in refining job classifications and talent segmentation, the recruitment landscape continues to shift, and further investment will be crucial to keep pace with evolving candidate expectations. Bullhorn’s research shows that agencies focused on improving their talent funnel conversion are 40% more likely to boost conversion rates and nearly two-thirds more likely to enhance job classification accuracy.
To stay ahead, continuing to evolve your approach with cutting-edge tools will help Hays not only maintain its strong position but also drive even greater efficiency and success in placing high-quality candidates — all while protecting margins.
Aligning with candidate expectations
Candidates today expect more from recruitment agencies. Bullhorn’s 2024 GRID Talent Trends Report found that candidates genuinely value the personalised service that recruiters bring to their job searches, which sets them apart from online job boards used by two-thirds of job-seekers. Agencies like Hays that invest in top-of-funnel automation to speed up conversions align with candidate expectations for faster placements. This focus on automation is also critical to providing a positive candidate experience that builds long-term trust.
Driving talent satisfaction and loyalty
The key to building candidate loyalty lies in understanding their needs. While only 18% of recruitment agencies believe that poor job matching is a major pain point, 56% of dissatisfied candidates say it’s their top frustration. Hays can capitalise on this insight by improving job matching from the outset and ensuring clear, consistent communication throughout the recruitment process. In fact, Bullhorn’s research shows that 75% of candidates would stay with their current agency if these small tweaks were made, and this number increases significantly with improved communication and transparency.
Agencies can improve candidate loyalty
Recruitment agencies have the power to improve candidate loyalty through simple yet effective strategies. By ensuring regular communication and matching candidates to the right jobs on the first try, agencies like Hays can keep top talent engaged and prevent them from seeking opportunities elsewhere. The alignment of expectations and delivery is key here, and data shows that this approach significantly boosts candidate retention and loyalty.
The impact of AI
AI is revolutionising the recruitment industry, and its influence is only set to grow. As recruitment firms seek to enhance productivity and efficiency, AI offers transformative potential across all areas of recruitment. At Bullhorn, we envision a future where AI seamlessly integrates into every stage of the workflow — from creating more accurate job descriptions to instantaneously sourcing and screening the right candidates. By reducing manual, time-consuming tasks, AI empowers recruiters to focus on the strategic, relational aspects of their roles, delivering more value to both clients and candidates.
For agencies like Hays, AI presents an unparalleled opportunity to improve recruitment outcomes while driving efficiency gains. Bullhorn’s research underscores that top-performing firms are already leveraging AI to streamline key processes such as client requirement gathering and candidate screening. These agencies are placing candidates faster, reducing time-to-fill, and ultimately freeing up recruiters to focus on high-value activities like candidate engagement and client relationship building.
The power of AI lies not only in speeding up recruitment but also in enhancing the quality of matches. AI-driven tools analyse vast amounts of data to identify patterns and insights that even the most experienced recruiters might miss. This results in better-fit placements, higher candidate satisfaction, and more value for clients. According to Bullhorn’s 2024 GRID Talent Trends Report, 60% of candidates expressed comfort with AI handling parts of the recruitment process, especially when it leads to faster, more accurate job matches.
However, AI must be implemented with care. While candidates appreciate the speed and precision AI brings, maintaining the human element is critical to preserving trust. For Hays, the key to success lies in using AI to handle routine tasks, while recruiters remain focused on the personal, human connections that define recruitment. By augmenting — rather than replacing — the recruiter’s role, AI can enhance both productivity and the candidate experience, ensuring that Hays continues to lead the market through a perfect balance of technology and human insight.
As long as AI delivers value, candidates are on board
55% of survey respondents are aware that their recruitment agencies are using AI, and for the majority of these candidates, the experience has been positive. Faster response times and more accurate job matches are key benefits they’ve noted. Overall, around 60% of candidates surveyed expressed comfort with AI being used in the recruitment process, as long as it delivers a better experience. However, agencies must recognise that these sentiments could quickly shift if AI fails to meet candidate expectations — placing greater importance on getting the AI experience right from the start.
Top performers are already leaning into AI tools
While many recruitment agencies are still in the early stages of AI adoption, top-performers are embracing AI tools with tangible results. Bullhorn’s research shows that these agencies are twice as likely to have implemented AI-driven tools for shift scheduling and credentialing and 2.5 times more likely to use AI for client requirement gathering. By automating these repetitive tasks, agencies can scale operations during periods of economic recovery without the need to significantly increase headcount — positioning themselves for long-term growth and success.