SELECTIVE INVESTMENT INSIGHTS TO INFORM. The 2013 Hays Salary Guide: Salary & Recruiting Trends

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1 SELECTIVE INVESTMENT INSIGHTS TO INFORM The 2013 Hays Salary Guide: Salary & Recruiting Trends

2 STABILITY RETURNS As the dust starts to settle on the shifting picture for WA and QLD, forecasts point towards a more stable economic climate with increased confidence; 68% of respondents say they envisage business activity increasing in the coming months and record low interest rates will only support that. While it is clear that there is now sustained demand, much of it in the more traditional disciplines such as Accountancy & Finance, IT and Sales & Marketing it s not in every function, in every region. Our clients are making strategic hires into roles that will offer long term benefits for the organisation be they permanent or short term. The qualities of the most valued candidates are consistent though, with capability, culture fit and specific relevance to the job at the top of many shortlists. The keys to attracting those high potential candidates still lies with finding them, engaging with them and making sure that they see the right opportunities at the right time. Nick Deligiannis Managing Director, Hays Australia & New Zealand THANK YOU Hays would like to express our gratitude to all those organisations that participated in our online survey and provided such invaluable feedback, which we feel has contributed to making this the most accurate and up to date survey of its kind in Australia and New Zealand. A list of all contributors who kindly gave their permission to be named as participants can be found on our website. This Guide is reproduced in full in PDF format and can be requested from our website hays.com.au and hays.net.nz FEEDBACK We welcome any feedback or comments regarding this guide whether positive or negative to ensure that it continues to be relevant to Australian and New Zealand organisations across all industries. Please address any suggestions to your local Hays office or to: Hays, Level 11, Chifley Tower, 2 Chifley Square, Sydney NSW E: DISCLAIMER The Hays Salary Guide is representative of a value added service to our clients, prospective clients and candidates. Whilst every care is taken in the collection and compilation of data, the guide is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced in total or by section without written prior permission from Hays Hays Salary Guide 3

3 MARKET OVERVIEW & TRENDS Hays Salary Guide

4 Employers are cautiously optimistic about the year ahead. Last year, only 27% saw the outlook for the economy as strengthening. In comparison, this year 40% say they see a more positive outlook on the horizon. When asked about the 12 months ahead, an encouraging 68% of employers expected their levels of business activity to increase. And 55% had already seen an increase in business activity over the 12 months prior to the survey. Of the total employer group, 8% had no plans to increase salaries in the 12 months after the survey and 11% had not awarded any increases in the preceding 12 months. Continuing to look at theses two time periods, 57% of employers plan salary increases of less than 3% (49% had awarded such increases in 2012); 32% increases of 3% to 6% (33% in 2012) and 2% increases of 6% to 10% (5% in 2012). Only 1% of employers planned salary increases of more than 10% compared to 2% in When asked about permanent headcount over the next 12 months, 37% of those surveyed expected headcount to increase, 51% for staff levels to stay the same and 12% for numbers to decrease. Reflecting on the past 12 months, 35% of employers had increased permanent headcount, 42% kept it on hold and 23% decreased numbers. Of those employers planning to hire, 83% say the roles will be full-time (down from 85% in 2012), 20% plan more part-time staff (18% in 2012), 14% more casual staff (15% in 2012) and 17% will increase their use of temporary/ contracting staff (unchanged). By sector, permanent headcount is expected to grow most within Engineering and Project Management with 60% and 49% respectively of employers predicting growth in these areas. Hiring intentions in Accountancy & Finance are consistent with the prior year at 26% planning to increase hiring. A large 80% of employers plan to keep Marketing headcount unchanged but of those employers surveyed none were planning to decrease headcount. Sales professionals are in demand but mostly for hunter roles that will increase the revenues of the organisation while demand for Account Management talent has declined. Resources & Mining employers remain focused on retention, a continuing trend from The largest area of skills shortage appears to be junior to mid management talent in both Operations and Accountancy & Finance. The next highest areas of skills shortage were for Junior to Mid Management talent for Engineering, Technical roles, Sales & Marketing and IT roles. As an indicator of the need to increase flexibility in the workforce we ve seen a 25% increase in the number of respondents expecting to utilize temporary and contract staff on an ongoing basis. In terms of skills shortages, more than 63% of those surveyed said that the effectiveness of their operations would be impacted by not finding the right skills for their business. Interestingly, career path and development was identified as being critical to attracting the best candidates by 41% of respondents, yet in contrast only 10% say their organization is perceived as offering those opportunities by the market. Similarly, in order to cope with skills shortages, 61% of employers would consider sponsoring candidates from overseas compared to 59% in Hays Salary Guide 5

5 SALARY INCREASES 1. Average % increases from last reviews: across all countries 11% 49% 33% 5% 2% 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 Mining & Resources 7 48 Professional Services 7 55 Public Sector 8 57 Retail 7 54 Transport & Distribution 9 48 Other

6 SALARY INCREASES 2. When you next review, by what percentage do you intend to increase salaries? across all countries 8% 57% 32% 2% 1% Nil Less than 3% From 3% to 6% From 6% to 10% More than 10% For specific industries: Advertising & Media Mining & Resources Construction, Property & Engineering Professional Services Financial Services Public Sector Hospitality, Travel & Entertainment Retail IT & Telecommunications Transport & Distribution Manufacturing Other 2013 Hays Salary Guide 7

7 BENEFITS 3. Does your company offer flexible salary packaging? MARKET OVERVIEW & TRENDS: SALARY POLICY 76% 24% YES NO Of those who answered yes, the following benefits were indicated as being commonly offered to Hays Salary Guide All employees More than 50% Less than 50% Few employees Car 13% 8% 29% 51% Bonuses 25% 16% 22% 37% Private health insurance 32% 5% 8% 55% Parking 33% 14% 18% 36% Salary sacrifice 54% 7% 14% 26% Above mandatory superannuation 34% 6% 12% 48% Private expenses 14% 5% 12% 70%

8 STAFFING 4. Over the last 12 months, have permanent staff levels in your department... across all departments 23% Decreased 42% Remained the same 35% Increased For specific departments: Accountancy & Finance Engineering Human Resources Information Technology Marketing Operations Project Management Purchasing Sales Other Hays Salary Guide 9 MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS

9 STAFFING 5. Over the coming year, do you expect permanent staff levels to... across all departments 12% Decrease 51% Remain the same 37% Increase MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS For specific departments: 9 65 Accountancy & Finance Engineering Human Resources Information Technology 80 Marketing Operations Hays Salary Guide Project Management Purchasing 9 61 Sales 9 48 Other

10 STAFFING 6. If you expect staffing levels to increase, please specify how: 83% 20% 17% 14% Full time/ permanent staff Employment of part-time staff Temporary/ contractors (through an employment consultancy) Employment of casual staff (on your payroll) 3% 3% 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 19% Regular ongoing basis 43% Special projects/ workloads 38% Exceptional circumstances/never MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS For specific departments: 13 Accountancy & Finance 20 Engineering 18 Human Resources 25 Information Technology 10 Marketing Operations Hays Salary Guide Project Management 43 Purchasing Sales Other

12 STAFFING 8. In the next 12 months, do you expect your use of temporary/contract staff to... across all departments 14% Decrease 71% Remain the same 15% Increase For specific departments: Accountancy & Finance Project Management Engineering Purchasing Human Resources Sales Information Technology Other 30 Marketing Operations 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? 37% No Hays Salary Guide 45% Yes - in a minor way 18% Yes - signifcantly 9b. In skill-short areas, would you consider employing or sponsoring a qualified overseas candidate? 61% 39% YES NO 10. For which areas have you recently found it difficult to recruit? Junior to mid management Senior management Junior to mid management Accountancy & Finance 19% 8% Operations 19% 11% Distribution 3% 1% Purchasing 2% 1% Engineering 15% 13% Sales & Marketing 14% 8% Human Resources 5% 2% Technical 15% 7% IT 12% 3% Other 15% 6% Senior management

14 WORK PRACTICES 11. Does your workplace allow for flexible work practices? 83% 17% YES NO 12. If yes, which practices do you currently offer?* 80% 76% 54% 35% Part time employment Flexible working hours Flex-place Flexible leave options 29% 17% 14% Job sharing *Multiple choices permitted. Career breaks Phased retirement 13. Has overtime/extra hours in your organisation over the last 12 months... 11% 63% 26% Decreased Remained the same Increased If increased, by how much? Per week Month end Year end 5 hours or less 37% 15% 9% 5-10 hours 35% 26% 15% More than 10 hours 10% 22% 34% 2013 Hays Salary Guide 15

15 WORK PRACTICES MARKET OVERVIEW & TRENDS: RECRUITMENT TRENDS & EMPLOYER BRANDING 14. For non-award staff in your organisation, is overtime/extra hours worked... $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 38% Paid 15. Is it your policy to counter-offer staff when they resign? Of those you counter-offered, on average, did they Hays Salary Guide 62% Unpaid 61% 38% 1% No Sometimes Yes 3% 22% Stay less than 3 months 16. Over the last 12 months has your staff turnover rate: 22% Decreased Stay 3-12 months 52% Remained the same 33% Stay longer than 12 months 42% Leave anyway 26% Increased

16 EMPLOYER BRANDING 17. 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 Direct/indirect experience of the company Salary and benefits Work/life balance Hays Salary Guide 17

17 ECONOMIC OUTLOOK 18. In the past 12 months, has business activity... 21% 24% 55% Decreased Remained the same Increased 19. In the next 12 months, do you envisage business activity: across all industries 7% 25% 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 Mining & Resources Professional Services Public Sector Retail Transport & Distribution Other

18 ECONOMIC OUTLOOK 20. What are the key factors driving your business activity? None Some Significant 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... $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 10% Weakening *This data was collected during March % Static 40% Strengthening 2013 Hays Salary Guide 19

19 SKILLS SHORTAGES STILL POWERING SALARY MOVES 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 300 Typical salary Salary range SALARY INFORMATION: SALARIES & SECTOR OVERVIEWS Hays Salary Guide

20 PROPERTY & FACILITIES MANAGEMENT SALARY INFORMATION: PROPERTY & FACILITIES MANAGEMENT AUSTRALIA Private sector development in Perth is driving up demand for experienced Development Managers and Acquisitions Consultants but salaries for residential property roles remain flat despite chronic skills shortages. A high demand for retail sales and leasing professionals has seen salary increases for these roles. Facilities Management (FM) vacancies in Perth s CBD have increased along with salaries for most senior roles. And a significant shortage of Hospital Engineers in both the public and private sectors is expected to drive up salaries. In WA s North West, salary growth has slowed for residential Property Managers looking after high yield investment properties in and around the Pilbara s mining towns although they still command higher than average salaries. Demand for Facilities Managers for mine camps remains high but salaries have not increased. To keep costs down, employers want residential managers rather than flyin-fly out workers. The FM sector is candidate heavy across lower end roles such as Facilities Administrators and Facilities Coordinators. Temp roles paying $25 to $35 an hour are in particular favour. The Sydney FM market remains stable. Fewer commercial high-rises are being built but construction of new data centres has increased to cater to mobile and internet clients. Candidates with the right skills to work in these data centres are hard to find. And maintenance trades personnel are in growing demand too particularly On-site Technicians for data centres. There also appears to be fewer commercial fit outs and relocation projects taking place although we are seeing floor plans redesigned as hot desk environments increasing demand for Accommodation Planners and Workspace Delivery Managers. In property there are still more candidates than jobs keeping salaries on hold and the high number of available Senior Development Managers has seen their salaries go backwards. Despite all this, the overall outlook is one Hays Salary Guide of optimism and in some areas of the job market there is even competition for good candidates. In Perth, private sector development is driving up demand for experienced Development Managers and Acquisitions Consultants. In Queensland companies appear to be valuing assets more often creating greater demand for Valuers to work closely with banks in the small residential, commercial and retail space. More employers are also using Property Managers to manage multiple sites and take on additional duties such as invoicing to keep costs down. In South Australia demand for skilled and qualified Property Managers with three or more years experience has grown. Retail Leasing and Commercial Property Management roles are also gaining ground due to growth in Adelaide s CBD retail sector. In NSW organisations have been trying to recover from a tough 2012 characterised by redundancies and little hiring activity particularly in the senior market. As we head towards the new financial year, the mood is more positive with a number of very large commercial projects approved. Demand for commercial space is expected to remain steady for the next few years before the wave of big projects reach completion. Lower interest rates saw more activity in investment property and increased demand for Property Analysts, Development Analysts, Lease Administrators and Portfolio Managers. Increased demand for local A Grade commercial property from overseas buyers has also seen more hiring of Fund Managers and Tenant Reps. NEW ZEALAND There has been a steady increase in demand for candidates across all areas of Property driven by the residential development market, commercial projects and the Christchurch re-build. Christchurch in particular has created demand for strategically-focused property candidates able to work to ensure portfolios meet future requirements. Good development skills have been in short supply for the last five years as many candidates left the sector; therefore Senior Project Managers are in particular demand. However, the shortage of senior candidates has filtered down to create greater demand for Project Managers and Intermediate Project Managers. Meanwhile, permanent roles within Facilities have been limited due to an employer preference for contractors. Senior roles are starting to be created but there is a lack of more generic facilities positions on the market. There has also been a drive to cap salaries in both property management and facilities management due to the fact that private sector employers have to service price-driven contracts as has always been the case in the public sector. Senior candidates who have been in the same position for many years and therefore insulated from market changes have also been surprised by the need to take a salary cut when moving roles. KEY TREND THE APPROVAL OF A NUMBER OF LARGE COMMERCIAL PROJECTS IN AUSTRALIA IS GENERATING A POSITIVE MOOD FOR THE UPCOMING FINANCIAL YEAR

21 PROPERTY PROPERTY Commercial/ Industrial/Retail Commercial/ Industrial/Retail Property Management Property Management Asset Manager 0-3 yrs exp 3+ yrs exp 0-3 yrs exp Asset Manager 3+ yrs exp NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast QLD - Regional SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Christchurch/Wellington Retail Centre Manager Lease Administrator Valuer 0-3 yrs Valuer 3 yrs+ NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast QLD - Regional SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Christchurch/Wellington NOTES: Australian salaries include superannuation New Zealand salaries do not include superannuation New Zealand salaries are represented in New Zealand dollars 2013 Hays Salary Guide 131

22 PROPERTY PROPERTY Commercial/ Industrial/Retail Sales & Leasing Acquisitions 0-4 yrs Acquisitions 4yrs+ Development Manager Assistant Development Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast QLD - Regional SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Christchurch/Wellington NOTES: Australian salaries include superannuation New Zealand salaries do not include superannuation New Zealand salaries are represented in New Zealand dollars Hays Salary Guide

23 FACILITIES MANAGEMENT FACILITIES MANAGEMENT Building Manager Facilities Coordinator Facilities Manager Service Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast QLD - Regional SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Christchurch/Wellington Contracts Manager Operations Manager Engineering Manager Bid Manager General Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast QLD - Regional SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Christchurch/Wellington NOTES: Australian salaries include superannuation New Zealand salaries do not include superannuation New Zealand salaries are represented in New Zealand dollars 2013 Hays Salary Guide 133

24 HAYS JOURNALA BI-ANNUAL PUBLICATION FROM HAYS, PROVIDING GLOBAL INSIGHT FOR EXPERTS IN HR AND RECRUITMENT LOOKING FOR TOMORROW S WORKFORCE? The skills that jobseekers offer today don t always match those needed by employers tomorrow. If business and education can t adapt, what does the future hold? The Hays Journal analyses the complexities of the modern workplace and asks the tough questions facing those who employ and manage people. To request a copy or read it online, visit hays.com/haysjournal or download the free ipad app from the App store. Copyright Hays plc HAYS, Recruiting experts worldwide and the HAYS Recruiting experts worldwide logo are trade marks of Hays plc. All rights are reserved. ipad is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.

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