- New research by the Centre for Economic Performance (CEP) has revealed that around 50% of businesses face challenges in recruiting new workers.
- Amidst labour shortages across different countries, the role of recruitment and staffing companies has become vital to help organisations hire the right talent and fill the skill gap.
According to new research by the Centre for Economic Performance (CEP), around 50% of businesses face challenges in recruiting new workers that results in business confidence decline. Moreover, one in five firms is having issues in retaining existing employees, as staff looks for new opportunities elsewhere.
Furthermore, about half of the firms anticipate that the labour shortage will last for more than one year, while some businesses try to address the labour shortage through wage increases. Some firms reported they are not able to recruit workers due to long term skill gaps.
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As per experts, companies should invest in training workers. Also, the government can consider giving tax credits to companies, which encourage and support the skills training programs. An active employee training program will help address the labour shortage issue and increase productivity.
Amidst labour shortages across different countries, the role of recruitment and staffing companies is vital to help organisations recruit the right talent and fill the skill gap. The companies that can successfully operate and address the industry-wide demand might see a boost in revenue and profitability.
In view of this, let us explore some FTSE listed recruitment and staffing service provider stocks and their investment prospects:
Hays Plc (LON: HAS)
FTSE250 listed company offers recruitment services in the UK and many other countries. It serves close to 30,000 clients from the public and private sectors. The company had announced the start of its Treasury purchase program on 14 December 2021. It plans to purchase 10 million ordinary shares of 1p and utilise it for share-based awards to its employee for the next two years. UBS AG London will conduct the Treasury Share Purchase on behalf of the company.
Hays Plc closed at GBX 138.00, up by 0.22% on 15 December 2021, with a market cap of £2,308.1 million.
PageGroup Plc (LON: PAGE)
The recruitment service provider has operations in the UK and other countries. It offers an executive search service, recruitment service for professionals. The company reported a positive trading momentum in the regional and global market in its recent business update. As a result, the company now expects full-year operating profits to be not less than £165 million.
PageGroup Plc closed at GBX 623.00, up by 0.08% on 15 December 2021, with a market cap of £2,045.6 million.
Staffline Group Plc (LON: STAF)
The company provides recruitment and skill training in the United Kingdom. It provides the workforce to manufacturing, agriculture, and many other sectors. The company’s business continues to benefit from increased levels of client activity. As a result, it reported a revenue of £450.7 million in the first half of 2021. The gross profit rose by 14% at £39 million during the period.
Staffline Group Plc closed at GBX 60.00, down by 1.17% on 15 December 2021, with a market cap of £99.63 million.