Robert Walters Flags Break-Even Profit as Hiring Backdrop Remains Challenging

Robert Walters, a leading global recruitment consultancy, has reported a break-even profit for 2023, reflecting the challenging hiring backdrop and the company's strategic moves to adapt to the evolving recruitment landscape. Despite the headwinds, Robert Walters has demonstrated resilience and adaptability, positioning itself for future growth.

The company's break-even profit in 2023 was driven by several key factors, including international diversification, resilience in temporary recruitment, cost management, and maintaining core consultant capacity. These strategic moves have enabled Robert Walters to navigate the uncertain market conditions and maintain its competitive edge.

International diversification has been a critical factor in Robert Walters' success, with no single country accounting for more than a sixth of the group's net fee income. This diversification has helped the company mitigate the impact of softening macro-economic conditions in many of its markets. Additionally, the company's temporary recruitment segment demonstrated good resilience, with a 2% increase in net fee income compared to 2022, accounting for 27% of the group's net fee income in 2023.

Cost management has also played a significant role in Robert Walters' ability to maintain profitability. The company improved its conversion rate to 8.2% during the second half of 2023, reflecting management actions taken to manage the Group's cost base. This improvement helped to offset the impact of lower net fee income on operating profit.

Maintaining core consultant capacity has been another crucial factor in Robert Walters' success. Despite a 9% year-on-year decrease in headcount, the company maintained core consultant capacity in its most resilient markets. This approach has allowed the company to quickly respond to market recovery when conditions improve.

As the hiring backdrop continues to evolve, Robert Walters has identified several trends emerging in 2025. Professionals in Singapore are increasingly valuing flexible working arrangements, with 82% preferring flexible working hours, 46% wanting enhanced use of technology, 43% desiring an increased focus on well-being, and 32% seeking more opportunities for cross-department work. In contrast, only 19% and 23% prefer reduced hours or full-time remote working, respectively.

Job movers can expect salary increments of 12-15%, with increments of up to 20% for in-demand sectors such as AI or data. Employees staying with their current companies will see their salaries increase by 2-5% to align with inflation. Companies are increasingly turning to contract staff to better manage manpower and costs, with 46% of companies hiring talent on a contract basis in 2024. Functions where contract staff were deployed in 2024 include tech and transformation (43%), accounting and finance (38%), HR and business support (21%), and supply chain, procurement, and logistics (21%).

The shift towards a skills-first approach in hiring is another emerging trend in 2025. Employers are valuing skills assessments over traditional hiring processes, with 79% of HR professionals sharing that they would value skills assessments over traditional hiring processes, and 36% would progress a candidate if they possessed the skills but not the years of experience required. Soft skills, such as problem-solving and critical thinking, are particularly sought after, with 66% of companies valuing these skills.

In conclusion, Robert Walters' break-even profit in 2023 reflects the company's strategic moves to adapt to the changing recruitment landscape. As the hiring backdrop continues to evolve, Robert Walters is well-positioned to capitalize on emerging trends, such as the increasing demand for flexible working arrangements, salary increments, contract hiring, and a skills-first approach to recruitment. By staying ahead of the curve and maintaining its core consultant capacity, Robert Walters is poised for future growth and success in the competitive recruitment market.