Hays' UK fees stymied as Brexit holds back bank hiring

“Very cautious” banks awaiting the outcome of the Brexit negotiations dented recruiter Hays’ performance in the UK in the past three months.

Banks stopped short of a recruitment freeze, replacing those that left, but there was “little or no new investment”, finance chief Paul Venables said.

“All financial institutions are having to think through their positions and the likely outcome of Brexit deals… it’s bound to lead to very tight cost control.”

UK fees fell 5% in the quarter ended June 30, with London fees, which are heavily dependent on banking, down 9%.

Group fees grew 7%, helped by strength in Germany and Australia and the company upped its profit guidance for the second consecutive quarter.

Venables said there were reasons to be “cautiously optimistic” for the UK, including the fact that businesses are preparing for Brexit, the election did not worsen conditions and candidate confidence has held up in the past 18 months.