Strategy
PageGroup’s strategy is to leverage our existing global platform with a focus on targeted growth, whilst maximising profit by building on what we’re famous for.
This new strategy will take Page through to 2030 and we have set ourselves three key strategic goals:
- A goal that targets the business on delivering operating profit for our shareholders and our people
- A social impact goal that speaks to our people, our customers and our investors
- And finally, a goal that reflects our focus on customer centricity, that sets us apart from many of our competitors, and is key for our clients and our people
Four pillars of growth will support the delivery of this strategy:
- Maximising our core business, essentially building on our strengths with our Michael Page and Page Personnel operations,
- Accelerating the growth of our technology recruitment business,
- Expanding our Page Executive business within a market that has untapped opportunities,
- And building out our capabilities for Strategic Customers.
Our ambition is clear: be the leading specialist recruitment consultancy in each of our chosen markets.
Our strategy continues to be pursued entirely through the organic growth of existing and new teams, disciplines and countries with a strong team culture at its core. Our organic growth is achieved by drawing upon the skills and experiences of proven PageGroup management, ensuring we have the best and most experienced, home-grown talent in each key role.
Our team-based structure and profit share business model is scalable. When market conditions tighten, teams will reduce in size largely through natural attrition. Consequently, our cost base will be reduced in a slowdown. Having invested years in training and developing our highly capable management teams, our objective is to ensure we retain this expertise within the Group. By following this course of action, we typically gain market share during downturns and position our businesses for market leading rates of growth when economic conditions improve.
Pursuing this approach does mean that in an economic downturn our profitability declines as, in addition to the lower productivity levels that come with a slowdown, we also carry spare capacity. However, when market conditions improve, the Group’s profitability recovers quickly as spare capacity is utilised. Adopting this strategy in times of economic slowdown also drives our financing strategy and the management of our balance sheet position. In periods of economic slowdowns, the business has continued to produce strong cash flows, as working capital requirements reduce. However, with uncertainty around the length and depth of any economic slowdown, a strong balance sheet is essential in order to support the businesses through tougher periods and as economic conditions improve and the businesses start growing, to fund increased working capital requirements.
Our strategy offers us a platform for growth and maximised profit, building on what we’re famous for at a discipline, brand and country level – being Customer Led, People Powered and Insight Driven.
All, while staying true to our Purpose of changing lives all around the world.