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 INFORMATION TECHNOLOGY SALARY INFORMATION: INFORMATION TECHNOLOGY AUSTRALIA As predicted, both private and public sector employment has remained fairly steady overall in the first half of 2013 as organisations looked to improve systems in order to create a better customer experience, gain efficiencies and take advantage of developing technologies. We did see a number of job cuts in the public sector but this activity was offset by the job growth in the private sector as major institutions continued to reform their IT structures. Within the private sector, major programmes of work were undertaken in banking and financial services, utilities and telecommunications organisations. The majority of the recruitment activity in information technology involved an increased volume in contracting staff as companies looked to remain flexible. We also saw fairly major growth within the systems integrators and other IT services organisations such as software and advisory. In infrastructure, we witnessed constant demand over the year for all levels of support, and, moving up the levels, skills in networking, security and design as major projects, upgrades and new network builds in the enterprise space continued. Skills in the communications vendor space were in high demand, and we also started seeing challenger brands to these technologies enter the market. The software development area saw continued growth within Java technologies creating consistent hiring across the board. Microsoft technologies also kept up, with SharePoint, ASP.Net and MVC framework professionals in demand. Candidates with opensource technologies were also highly sought after particularly those with skills in DRUPAL and Magento as organisations looked to implement more cost-effective strategies. In addition, increased mobile activity pushed up demand in the ios and Android space. With continued IT investment, programs of work demanded strong business analyst skills and we have seen a significant push for functional BAs with excellent communication capabilities. This has been an ongoing trend, as IT touches on all areas of a business. Such major pieces of work saw requirements for strong Project and IT change managers Hays Salary Guide coming through. Furthermore, we saw a large number of senior roles recruited as businesses looked to bring intellectual property and IT knowledge back in-house after years of outsourcing. This has led to strategy and enterprise architecture skills being in high demand. As companies are increasingly looking at ways to harness information to help them make the right decisions and gain competitive advantage, we are seeing an increased demand for candidates with strong data warehousing and business intelligence skills. With the big data trend, candidates with strong technical and analytical skills will continue to be sought after for targeted projects and campaigns. We predict demand for technology experts will continue with candidate demand driven particularly by the mobile and security areas of the IT sector. Organisations are keen to take advantage of cloud technology, virtualisation and its knock-on effect as well as to use technology to enable better customer relationships moving from transactional to networked consumers. Technology continues to move from occupying a back-office cost-reduction role to the role of enabler within the organisation. Technologists with businessfocused softer skills will continue to be in constant demand. Public sector Within the public sector, there has been a number of major business driven projects enabled by technology developments which has meant an increased demand for IT change and business readiness candidates. Within federal government there has been a focus on decreasing contractor numbers in preference for engaging candidates on fixed term contracts or permanently. This has primarily been cost-led and has had a knock-on effect on rates and candidate availability. This has been coupled with slight contract rate reductions, but has not been offset by higher permanent salaries. Contractors are still being sought where they have hard to find or specific skill sets. High candidate demand exists in DRUPAL, CRM, SharePoint, Oracle BI developers, and those with a strong knowledge of cloud computing. New Zealand Demand for talent in the IT and telecommunications sectors was higher than other sectors in both 2012 and early Factors influencing the increase in both temporary and permanent roles include the roll out of ultra fast broadband, increased competition in e-mobile devices and data, the infrastructure rebuild in Christchurch, and upgrades and roll outs of new ERP solutions. ERP consultants such as Dynamics AX Specialists have been in high demand. An increase in Windows-based projects also created a shortage of experienced client facing Wintel Engineers. Development support and business intelligence have been two other employment hot spots in 2013 with more companies wanting to acquire SQL DBA professionals. Demand for Business Analysts within the health and telco sectors has also been high. Contract Test Analysts and VMware (virtual storage) experts for cloud technology projects are also on the increase. Rates and salaries rose in all areas of high demand. Employers are keen to hire candidates on fixed term contracts while candidates prefer either the security of permanent employment or a higher hourly contract rate. Indecisiveness has proved costly for some employers. In demand candidates receive multiple offers so a lengthy recruitment processes will see an employer regularly miss out on the best candidates. 88% OF EMPLOYERS SEE BUSINESS ACTIVITY IN INFORMATION TECHNOLOGY AS INCREASING OVER THE NEXT 12 MONTHS

21 INFORMATION TECHNOLOGY SYSTEM SUPPORT & ADMINISTRATION Service Desk/Level 1 Desktop Support/ Level 2 Systems Administration/Level 3 UNIX Administration NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch Team Leader Helpdesk Manager Applications Support NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars 2013 Hays Salary Guide 115

22 INFORMATION TECHNOLOGY NETWORK MANAGEMENT Network Administration Network Engineer Network Security Network Designer NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch Network Architect Data/Voice Engineer Telco Engineer NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars Hays Salary Guide

23 INFORMATION TECHNOLOGY SOFTWARE.Net Developer Senior.Net Developer Team Leader -.Net Java Developer Senior Developer Team Leader - Java NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch Mobile Apps Developer Web Designer C/C++ Developer Snr C/C++ Developer Developer (Other) Snr Developer (Other) NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars 2013 Hays Salary Guide 117

24 INFORMATION TECHNOLOGY DATA Report Writer Data Analyst Database Developer BI/DW Development Architect NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch DBA TESTING & QA Test Analyst Senior Test Analyst Automation Test Analyst Test/QA Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars Hays Salary Guide

25 INFORMATION TECHNOLOGY PROJECT MANAGEMENT & BUSINESS ANALYSIS Systems Analyst Business Analyst Senior Business Analyst BA Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch Project Co-ordinator Project Manager Senior Project Manager Project Director PMO Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars 2013 Hays Salary Guide 119

26 INFORMATION TECHNOLOGY MANAGEMENT Infrastructure Manager Service Delivery Manager IT Manager Change Manager NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch Development Manager CIO NSW - Sydney NSW - Regional VIC - Melbourne VIC - Regional QLD - Brisbane, Gold Coast & Sunshine Coast SA - Adelaide WA - Perth ACT - Canberra TAS - Hobart NT - Darwin NZ - Auckland NZ - Wellington NZ - Christchurch CTO NOTES: All salaries shown exclude superannuation New Zealand salaries are represented in New Zealand dollars Hays Salary Guide

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