By Stuart Condie
SYDNEY–WiseTech Global Ltd. was able to step up hiring over the six months through June after job seekers’ focus mirrored that of investors by shifting to company profitability, Chief Executive Richard White said.
WiseTech increased global headcount by 119 to 1,979 over its 2022 fiscal year, which ended June 30. The logistics-software company increased the pace of hiring by 20% in the second half compared with the first half, as a shifting macroeconomic backdrop prompted tech- literate workers to place fresh emphasis on job security, Mr. White said Wednesday.
Rising funding costs, soaring inflation and weak consumer sentiment have hit tech valuations in 2022 as investors switch attention to companies with a track record of weathering economic downturns.
WiseTech, which has been profitable every year since listing in 2016, has hired from privately owned companies and startups in 2022 as valuations dropped, Mr. White told The Wall Street Journal in an interview.
“Anybody wanting to move jobs or even people who are in stable jobs, they’re worried about the long-term success of the company,” Mr. White said.
“If you’re the last person in a tech startup, you’re the first person out when things don’t go well.”
WiseTech raised its dividend and flagged further earnings growth after new customer wins and price rises helped it lift annual profit by 72%.
Wages rose 1.5% to 236.3 million Australian dollars (US$163.8 million) and total employee benefits by 4.8% to A$286.2 million as WiseTech responded to competition for skilled labor by increasing equity-based compensation to support employee retention.
The tech sector of Australia’s S&P/ASX 200 benchmark index is down 28% so far in 2022, while the tech-heavy Nasdaq Composite is down 21%. WiseTech shares are down just 0.1% over the same period after jumping 10% on Wednesday’s fiscal 2022 results announcement.
“Six months ago, there were just so many jobs on offer and everybody was throwing money at everything. We had to work hard to hold on to people, but we were very successful at that,” Mr. White said.
Write to Stuart Condie at [email protected]
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