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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 PROPERTY SALARY INFORMATION: PROPERTY AUSTRALIA The Australian property market has continued to benefit from a prolonged period of low interest rates and an increase in consumer confidence and consumer spending. Business confidence has trailed behind somewhat but a strengthening economic outlook both in Australia and globally coupled with a weaker Australian dollar has stimulated significant investment in property in tourism-related sectors such as retail and hospitality in many capital cities. Population growth and overseas investors are also playing a major role in the investment decisions of property developers. The goal is to ensure there is enough supply of residential property to keep affordability within a healthy range in most areas, with the exception of the central Sydney housing market, which is now considered overvalued. The lower Australian dollar has also helped those states and territories with a non-resources related manufacturing sector and as a result, the industrial property sector has improved. Meanwhile, industrial and commercial property vacancy rates in the resources states of Queensland and Western Australia have continued to rise and no real change is expected this year. In the year ahead, most major cities will invest heavily in urban infill projects in order to restrict urban sprawl creating a high demand for Development Managers and Project Managers with Brownfield medium to high-density experience. These projects will also ensure that experienced Acquisitions Consultants and Strategic Planners will continue to be highly sought this year. Real skills shortages are expected for Strata Managers as Australians continue to embrace inner city living. Sustained high levels of residential property investment will continue to keep that sector s Sales Managers, Leasing Hays Salary Guide Managers and Property Managers busy. Real skills shortages are expected for Strata Managers as Australians continue to embrace inner city living and property developers continue to release new products in all capital cities. In terms of salaries, roles linked with the residential property market will continue to see salary movements in line with the fortunes of their region s property market. For example, current boom conditions in Sydney will push up salaries whereas oversupply and rising vacancy levels in Perth and Darwin will see stabilisation if not small declines. As business sentiment improves we will see a moderate increase in commercial property salaries, and those states and territories that maintain steady nonresources manufacturing businesses will see an improvement in industrial salaries. In the public sector, the various states and territories are all looking at asset recycling to boost their balance sheets. This will create high demand for candidates with strong sales, community engagement and asset management skills. The growing urbanisation of our inner city suburbs will also keep local councils busy generating work for Statutory Planners. Improving technology in relation to volume desktop valuations by statutory authorities will reduce the current skills shortage in this area although the private sector will continue to benefit from the outsourcing of mortgage related valuations from the major banks. In general, the focus on cost savings has kept public sector salaries stable, and this will continue in the year ahead with increases in line with CPI for business critical roles and a greater tendency to use contractors for short term needs. In addition, Federal Government Departments are reviewing service providers and looking for value, which is creating some movement but competitive pricing will ensure salaries remain stable in this area too. NEW ZEALAND New Zealand s property industry is again busy after three years of cautious yearon-year growth and this is great news for candidates. Demand for talent in Auckland is almost back to pre-gfc levels thanks to a buoyant commercial, retail and industrial development market. When development is busy, the rest of the market is busy. Salaries for Development Managers are increasing and candidate demand from both the public and private sectors will see further upward salary pressure. Candidates in particular demand include Sales Agents and Leasing Agents and Property Managers. The retail sector in Auckland has been very busy too and due to a general shortage of specialist retail candidates we expect to see a large hike in their salaries. The demand for contract staff is particularly strong across the country, which has seen rates increase. The property market in Christchurch is being partially driven by demand but mainly driven by turnover in the leasing space. Many of the leases signed postearthquake are nearing their end and numerous large blue-chip tenants are moving back into the CBD. This is generating additional demand for Sales and Leasing Agents and Property Managers as well as driving up salaries for these roles. The Government sector is currently driving the Wellington candidate market, with planned major projects such as roads and housing as well as earthquake restrengthening work and the Christchurch rebuild all influencing recruitment activity. Wellington s public sector is hiring Wellington-based temporaries and contractors to manage programs of work in Christchurch from Wellington or to fly-in fly-out. The demand for contract staff is particularly strong across the country as well, which has seen rates increase and transformed contracting in the minds of quality candidates from an occasional opportunity into a viable career option.

23 PROPERTY PROPERTY Commercial/ Industrial/Retail Property Management 0-3 yrs exp Commercial/ Industrial/Retail Property Management Residential Property 3+ yrs exp Manager 0-3 yrs Residential Property Manager 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 Asset Manager 0-3 yrs exp Asset Manager 3+ yrs exp Retail Centre Manager Lease Administrator 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 2015 Hays Salary Guide 127

24 PROPERTY PROPERTY Valuer CPV 0-3 yrs Valuer CPV 3+ yrs Valuer RPV 0-3 yrs Valuer RPV 3+ yrs Commercial/ Industrial/Retail Sales & Leasing 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 Acquisitions 0-4 yrs exp Acquisitions 4+ yrs Assistant Development Manager Development Manager Development Director 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

25 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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