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1 KEEP TRACK OF THE TRENDS INSIGHTS FROM THE EXPERTS The 2015 Hays Salary Guide: Salary & Recruiting Trends hays.com.au hays.net.nz

2 OPPORTUNITIES FOR GROWTH We are on the verge of a significant shift in our recruitment landscape. Last year employers were conservative; there was a focus on cost savings, process improvements, and temporary and contract roles. While cost savings remain a priority, organisations are now poised to boost revenue growth. As a result we re seeing rising permanent vacancy activity, increased candidate movement and new skills shortages. This will lift candidate confidence in the year to come and give employers access to candidates leaving long-term employment in search of new opportunities. Driving this change is a need for staff for the growing number of residential and infrastructure projects (especially in NSW), the expansion of sales teams to increase revenue, a need to secure IT and marketing experts in response to emerging new technology, the constant demand for healthcare services, and the addition of people who can spot opportunities for productivity and performance improvements. Green shoots are even emerging in states and territories that once relied heavily on the resources and mining industry. Thanks to this, employers tell us that they will transition away from high levels of temporary/contract roles back to more permanent positions, which is a sure indication of employer confidence. While salaries will remain stable during this transition phase; in the long-term we will start to see a broader pick-up in salaries. Until then, our advice to candidates is to focus on securing a role where you can expand your skills base and take a step forward. For employers with permanent hiring intentions, the pressure will be on to find highly-skilled talent with the right combination of technical skills and cultural fit, and then to secure and retain them with a tailored offer. With improved confidence, permanent vacancies increasing and heightened staff turnover, why not talk to us when you next need to access the most comprehensive, current and global network of talent? Nick Deligiannis Managing Director, Hays Australia & New Zealand 2015 Hays Salary Guide 3

3 MARKET OVERVIEW & TRENDS 36% OF EMPLOYERS WILL INCREASE PERMANENT STAFF LEVELS 68% SAID BUSINESS ACTIVITY WILL INCREASE IN THE NEXT 12 MONTHS Hays Salary Guide

4 EMPLOYERS EYE HEADCOUNT GROWTH ARE YOU READY? This year as part of our Hays Salary Guide we surveyed 2,610 organisations, representing 2,891,747 employees, to gather their views on salary policy, hiring intentions and recruitment trends. As a group these employers have a positive outlook, with permanent headcount increases planned, flexible working practices on offer and an expectation that business activity will rise. In contrast, the year behind us will be remembered for cost cutting and doing more with less. Unsurprisingly then, 17% of employers did not increase salaries in their last review. Like the previous financial year ( ), those who did receive a salary increase in found that their wallet was not that much heavier. 56% of employers increased salaries by less than 3%, while 22% gave increases between 3 and 6%. Just 5% of employers gave increases of 6% or more. This cost-consciousness will remain when it comes to salaries in the year ahead, with 65% of employers intending to increase salaries by less than 3%. A further 19% will boost salaries between 3 and 6%, while just 3% will increase by 6% or more. Employers in the professional services, advertising & media, financial services and IT & telecommunications industries are at the front of the small pack offering these increases. While candidates have higher hopes for their next salary increase, the expectations of employees and employers are not that far apart that they can t be bridged. One way to do this is through benefits, which are offered by 77% of our total employer group. Another is through flexible work practices, offered by 84% of employers. Hiring intentions While 15% of employers plan to decrease permanent headcount in the year ahead, this will be absorbed more than twice over by the 36% who expect to increase permanent staff levels. The IT department will lead this headcount expansion, followed by project management, operational management, marketing and sales. In addition, 68% expect business activity to increase in the next 12 months, while 62% have already seen an increase in business activity over the 12 months prior to the survey. Candidates too are confident, with staff turnover increasing in 27% of organisations. This willingness of candidates to change permanent jobs and of employers to expand permanent headcount helps to explain why 45% of employers expect to decrease their use of temporary/contract staff in the year ahead. Emerging skills shortages As the available candidate pool is absorbed into new and replacement permanent roles, it is natural that skills shortages emerge. In the year ahead, 57% of employers think that skill shortages are likely to impact the effective operation of their business or department. Already we re seeing shortages of certain skilled professionals. Of our total employer group, 15% have recently found it difficult to recruit operations staff at the entry to mid management level. Employers also report challenges recruiting accountancy & finance (14%), technical (12%), sales & marketing (also 12%), IT (10%) and engineering (9%) talent at this level. Perhaps that s why 28% of employers said overtime levels had increased in their organisation Hays Salary Guide 5

5 SALARY INCREASES 1. Average % increases from last reviews: across all industries 17% 56% 22% 4% 1% Nil Less than 3% From 3% to 6% From 6% to 10% More than 10% For specific industries: MARKET OVERVIEW & TRENDS: SALARY POLICY Advertising & Media Construction, Property & Engineering Financial Services Hospitality, Travel & Entertainment IT & Telecommunications Manufacturing Hays Salary Guide Professional Services Public Sector Resources & Mining Retail Transport & Distribution Other

6 SALARY INCREASES 2. When you next review, by what percentage do you intend to increase salaries? across all industries 13% 65% 19% 2% 1% Nil Less than 3% From 3% to 6% From 6% to 10% More than 10% For specific industries: Advertising & Media Professional Services Construction, Property & Engineering Public Sector Financial Services Resources & Mining Hospitality, Travel & Entertainment Retail IT & Telecommunications Transport & Distribution Manufacturing Other 2015 Hays Salary Guide 7

7 CANDIDATE SALARY EXPECTATIONS In a separate survey we also asked our candidates what their expected salary increases were In your next review, what percentage increase do you expect to receive? across all industries 20% 47% 25% 5% 3% Nil Less than 3% From 3% to 6% From 6% to 10% More than 10% For specific industries: MARKET OVERVIEW & TRENDS: SALARY POLICY Advertising & Media 23 Construction, Property & Engineering 15 Financial Services 15 Hospitality, Travel & Entertainment 22 IT & Telecommunications Manufacturing Hays Salary Guide Professional Services Public Sector Resources & Mining Retail 29 Transport & Distribution Other

8 BENEFITS 3. Does your company offer flexible salary packaging? 77% 23% YES NO Of those who answered yes, the following benefits were indicated as being commonly offered to... All employees More than 50% Less than 50% Few employees Car 13% 9% 25% 53% Bonuses 25% 17% 21% 37% Private health insurance 30% 5% 8% 57% Parking 34% 13% 16% 37% Salary sacrifice 56% 8% 12% 24% Above mandatory superannuation 38% 8% 10% 44% Private expenses 13% 5% 13% 69% Other 30% 8% 8% 54% 2015 Hays Salary Guide 9

9 STAFFING 4. Over the last 12 months, have permanent staff levels in your department... across all departments MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS 23% Decreased For specific departments: 17 Accountancy & Finance 29 Distribution 28 Engineering 26 Human Resources Information Technology Hays Salary Guide % Remained the same 17 Marketing 26 Operational Management 24 Project Management 28 Purchasing/Procurement 33 Sales % Increased

10 STAFFING 5. Over the coming year, do you expect permanent staff levels to... across all departments 15% Decrease 49% Remain the same 36% Increase For specific departments: Accountancy & Finance Marketing Distribution Operational Management Engineering Project Management Human Resources Purchasing/Procurement Information Technology Sales 6. If you expect staffing levels to increase, please specify how: 80% 27% 20% 18% Full time/ permanent staff Temporary/ contractors (through an employment consultancy) Employment of part-time staff Employment of casual staff (on your payroll) 2% 2% Job sharing Mixture, other (inc. overseas recruitment, acquisitions) Note: Multiple choices permitted Hays Salary Guide 11

11 STAFFING 7. How often do you employ temporary/contract staff? across all departments MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS For specific departments: 41 33% Exceptional circumstances/never Accountancy & Finance 36 Distribution 25 Engineering 30 Human Resources Information Technology Hays Salary Guide % Special projects/ workloads 26 Marketing 31 Operational Management 23 Project Management 33 Purchasing/Procurement 46 Sales % Regular ongoing basis

12 STAFFING 8. In the next 12 months, do you expect your use of temporary/contract staff to... across all departments 45% Decrease 32% Remain the same 23% Increase For specific departments: Accountancy & Finance Marketing Distribution Operational Management Engineering Project Management Human Resources Purchasing/Procurement Information Technology Sales 2015 Hays Salary Guide 13

13 SKILL SHORTAGES MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS 9a. Do you think that skill shortages are likely to impact the effective operation of your business/department? 43% No Hays Salary Guide 40% Yes - in a minor way 17% Yes - significantly 9b. In skill-short areas, would you consider employing or sponsoring a qualified overseas candidate? 62% 38% YES NO

14 SKILL SHORTAGES 10a. For which areas have you recently found it difficult to recruit? Junior to mid management: 15% OPERATIONS 14% ACCOUNTANCY & FINANCE 12% TECHNICAL 12% SALES & MARKETING Senior management: 9% OPERATIONS 8% TECHNICAL 7% ACCOUNTANCY & FINANCE 6% SALES & MARKETING 10b. Other areas for which you have recently found it difficult to recruit? Junior to mid management Senior management Junior to mid management Distribution 3% 1% IT 10% 6% Engineering 9% 7% Purchasing 3% 1% Human Resources 4% 3% Other 11% 5% Senior management 2015 Hays Salary Guide 15

15 WORK PRACTICES 11. Does your workplace allow for flexible work practices? 84% 16% YES NO 12. If yes, which practices do you currently offer?* 79% 74% 58% 36% MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS Flexible working hours 30% Job sharing *Multiple choices permitted Hays Salary Guide Part time employment Career breaks Flex-place 20% 15% Phased retirement 13. Has overtime/extra hours in your organisation over the last 12 months... If increased, by how much? Flexible leave options 11% 61% 28% Decreased Remained the same Increased 5 hours or less Between 5-10 hours More than 10 hours Per Week 33% 34% 11% Month End 13% 19% 28% Year End 7% 9% 40%

16 WORK PRACTICES 14. For non-award staff in your organisation, is overtime/extra hours worked... $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 62% Unpaid 38% Paid 15. Is it your policy to counter-offer staff when they resign? 64% 35% 1% No Sometimes Yes Of those you counter-offered, on average, did they... 43% 33% 19% 5% Leave anyway Stay longer than 12 months Stay 3-12 months Stay less than 3 months 16. Over the last 12 months has your staff turnover rate: 18% Decreased 55% Remained the same 27% Increased 2015 Hays Salary Guide 17

17 DIVERSITY MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS 17. Does your organisation have a diversity policy for hiring new staff? 57% YES If yes, do you think the people who hire in your organisation generally adhere to it? 87% YES Hays Salary Guide 43% NO 13% NO

18 EMPLOYER BRANDING 18. How important do you think the following factors are for an employer brand and how well do you think your organisation is perceived on the same criteria? Level of importance No impact Minor impact Some impact Significant impact Major impact Organisational perception Poor Okay Good Very Good Excellent Career path/training & development An individual s fit with the company s vision, culture and values People s direct/indirect experience of the company Salary and benefits Work/life balance Hays Salary Guide 19

19 ECONOMIC OUTLOOK 19. In the past 12 months, has business activity... 17% 21% 62% Decreased Remained the same Increased 20. In the next 12 months, do you envisage business activity: across all industries 9% 23% 68% Decreasing Remaining the same Increasing MARKET OVERVIEW & TRENDS: ECONOMIC OUTLOOK For specific industries: Advertising & Media Construction, Property & Engineering Financial Services Hospitality, Travel & Entertainment IT & Telecommunications Manufacturing Hays Salary Guide Professional Services Public Sector Resources & Mining Retail Transport & Distribution Other

20 ECONOMIC OUTLOOK 21. What are the key factors driving your business activity? No impact Some impact Significant impact Interest rates Currency/forex rates Consumer/business confidence Capex investments Projects driven by government Current economic conditions Do you see the general outlook for the economy in the forthcoming 6-12* months as... $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 22% Weakening *This data was collected during March % Static 27% Strengthening 2015 Hays Salary Guide 21

21 HOW TO NAVIGATE THIS GUIDE Using our salary tables Salaries are in 000. The bold number represents the typical salary. The number(s) underneath represent the salary range. Refer to the notes section under the salary table to determine if superannuation or other benefits are included. All salaries are represented in local currencies. Sydney Head of HR/HR Director 250 Typical salary Salary range SALARY INFORMATION: SALARIES & SECTOR OVERVIEWS The complete Hays 2015 Salary Guide is available as an app free to download from itunes. Search over 1,000 salaries and find offices in your area Hays Salary Guide

22 HUMAN RESOURCES SALARY INFORMATION: HUMAN RESOURCES AUSTRALIA With project-driven requirements fuelling demand, the year will have a strong focus on contract roles and temporary assignments, particularly for skilled candidates who can facilitate cultural change and efficiency programs. As a result, competition for permanent roles is intense and HR professionals navigating the employment market will need to be informed and realistic about permanent salary levels as well as open to contract roles. In the last 12 months many candidates in permanent positions, and looking for their next career move, found it difficult to secure a new role with a salary equal to, or higher than, their current salary. In fact, we have seen salary reductions in some states anywhere from 10 per cent to as much as 30 per cent. Given the focus on contract roles, it is not surprising that hourly rates for temporary and contract opportunities remain strong. We have also seen an influx of highly skilled senior HR professionals entering the market over the last year as a result of large-scale redundancies across the government, resources & mining and construction sectors. However, many of these quality candidates were absorbed into the buoyant contracting space. Given the focus on contract roles, it is not surprising that hourly rates for temporary and contract opportunities remain strong, particularly in areas of high demand such as instructional design, training, change management and industrial relations. The trend away from workforce expansion within organisations and towards workforce up-skilling has resulted in increased demand for learning & development and training professionals. Contract opportunities in learning & development and training across the country continue to offer competitive hourly rates Hays Salary Guide With many organisations focused on process improvement and analysis, increased demand for Change Managers has been a consistent feature of the past 12 months. This has been most obvious in South Australia and the Australian Capital Territory where government organisations have focused time and attention on driving greater efficiencies across departments by introducing new ICT systems, outsourcing services and undergoing restructures. This has created demand for HR talent able to help achieve these goals. The market in Canberra will continue to grow in employee relations and industrial relations as agencies negotiate and implement new employee agreements. Similarly, we anticipate strong demand for performance management candidates to help organisations achieve strong employee performance in a shrinking workforce. Radical changes to demand in Western Australia as a result of the slowdown in resources & mining have reduced the requirement for site allowances and project bonuses and also impacted salary expectations. Industries previously overlooked by HR professionals in the state in preference for the more lucrative resources & mining sector are now deemed attractive propositions, particularly those organisations able to offer flexible work/life balance and a greater degree of job security. These include roles in healthcare, professional services and state government. However, having a relevant industry sector background and being the right cultural fit remains key to candidate selection. NEW ZEALAND New Zealand is enjoying strong economic conditions resulting in business growth. As a result, we are currently experiencing a substantial increase in hiring activity for both HR and recruitment professionals. Further adding to vacancy activity is the number of New Zealand-based international businesses that are moving away from centralised ANZ HR functions to instead appoint sole charge HR practitioners for their local operations. We are experiencing a substantial increase in hiring activity for both HR and recruitment professionals. Demand for learning & development and organisational development specialists has been rising steadily too as businesses look to up-skill their staff and management teams to maximise productivity to take advantage of improving market conditions. In addition, as many businesses in the retail, construction, infrastructure and manufacturing sectors have ramped up their recruitment across many specialist areas, the need for more structured onboarding as well as learning & development programs has increased. We are also seeing a significant increase in demand for candidates with high-level expertise in employee relations and industrial relations, since the sectors experiencing the most activity are construction, manufacturing and engineering, which are typically operational, unionised environments. An increase in recruitment activity across a wide range of sectors has also led to a surge in demand for experienced Internal Recruiters with specific industry expertise. Since HR professionals with the abovementioned skill set are in short supply, salaries are increasing as businesses pay a premium to attract and retain top talent with relevant industry experience and ER or IR expertise.

23 HUMAN RESOURCES NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand Head of HR/ HR Director HR Manager HR Business Partner HR Advisor HR Coordinator HR Admin NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand IR Manager ER Manager IR Advisor ER Advisor HR Analyst HR Policy Writers NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand Head of L&D Learning & Development Manager Learning & Development Consultant Learning & Development Coordinator Training Manager Trainer NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars 2015 Hays Salary Guide 75

24 HUMAN RESOURCES NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand Diversity Manager Diversity Consultant Recruitment Manager/ Talent Recruitment Acquisition Mgr Consultant Recruitment Coordinator Workforce Planner Change Manager Change Analyst Instructional Designer Organisational Organisational Development Development Manager Consultant NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand Head of Remuneration & Benefits Remuneration & Benefits Manager Remuneration & Benefits Consultant HRIS Consultant HR Project Manager NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars Hays Salary Guide

25 HUMAN RESOURCES NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand Head of OH&S Health & Wellbeing Manager/Officer OH&S Manager OH&S Consultant OH&S Coordinator NSW - Sydney VIC - Melbourne QLD - Brisbane SA - Adelaide WA - Perth ACT - Canberra NT - Darwin New Zealand Injury/RTW Manager Injury/RTW Consultant RTW Coordinator NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars 2015 Hays Salary Guide 77

26 ABOUT US Our passion lies in helping people develop their professional careers, in whatever sector they work; this principle is what makes Hays the world s leading expert in powering the world of work. We believe that the right job can transform a person s life and the right person can transform an organisation. We have the depth of expertise and market insight to offer advice to both clients and candidates. Fuelled by energy and passion, we look beyond skills and experience to find the right cultural fit. This allows us to find the right match that enables individuals and organisations to flourish. Working across a wide variety of specialist areas, we have experts recruiting for professions from HR, legal and accountancy & finance to information technology, construction and life sciences, meaning we have the breadth of expertise to find the people you need. Our extensive candidate database allows our consultants to search millions of candidates globally using Google search technology to find the best people in the fastest timeframe. In addition, our exciting collaboration with LinkedIn provides real-time data on the active candidate market, behavioural trend analysis for future movers and an additional talent pool of over 200 million potential candidates. OUR SPECIALISMS Accountancy & Finance Architecture Banking Construction Contact Centres Education Energy Engineering Executive Facilities Management Healthcare Human Resources Insurance Information Technology Legal Life Sciences Logistics Manufacturing & Operations Marketing Office Support Oil & Gas Policy & Strategy Procurement Property Resources & Mining Retail Sales Trades & Labour GET SOCIAL Hays is the most followed recruitment agency on LinkedIn in the world. Join our growing network by following Hays Worldwide. Get expert advice, insights and the latest recruitment news by following us

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KEEP TRACK OF THE TRENDS INSIGHTS FROM THE EXPERTS. The 2015 Hays Salary Guide: Salary & Recruiting Trends. hays.com.au hays.net.

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