AUSTRALIAN HUMAN RESOURCES SALARY SURVEY 2010/

Transcription

1 AUSTRALIAN HUMAN RESOURCES SALARY SURVEY 2010/2011

2 INTRODUCTION Frazer Jones is a global, market leading recruitment business working exclusively within the Human Resources market. Established as HR Matters in 1994 in Australia, the business merged with UK leader Frazer Jones in 2004 to become the first truly global HR recruitment specialist. We have over 40 consultants with connections to great HR talent within the Asia Pacific and EMEA regions through offices in Australia, Hong Kong, Singapore, Dubai and London. Our knowledge, resources and access to the best candidates are never limited by geography. With this truly global reach, we partner with our clients to improve the talent management process and build successful teams. Our expert consultants have developed a reputation for providing honest, insightful advice as well as access to a unique and diverse network of the world s top HR talent. Our relationships are based on excellent service delivery and long term success. We supply HR talent to a complete cross-section of clients, from the world s largest companies to small owner-managed businesses. With dedicated consultants specialising in specific levels, from entry-level up to Group Executive, our purpose is to identify and assess outstanding HR professionals and match them with key roles globally. We are committed to the identification and nurturing of great HR talent, proactively connecting with them to discuss their long-term aspirations, understand what really motivates them and facilitate career planning and management. As the first established HR recruitment firm in Australia, we have built up a depth of knowledge about the HR market that is second to none. 2

3 PERMANENT MARKET OVERVIEW/UPDATE Over the past couple of years the severe downturn in the global economy, and subsequently all recruitment activity, has been reported on and discussed at length. The net result of the GFC in all major financial centres across the world was businesses stopped hiring and redundancies becoming the norm. Granted, Australia weathered the storm far better than the United Kingdom and the US (we of course never went in to recession), but most companies took a significant knock during the latter half of 2008 and throughout most of Which is why the recovery through 2010 has been all the more remarkable. The first signs of recovery in the form of recruiting new talent happened as early as August 2009, but not to the same extent as it did at the start of Our 2009 HR Market Expectations Survey predicted that hiring activity would not kick in until the second half of 2010, but it genuinely appears that many people significantly underestimated the speed of the recovery with job levels in HR recovering both quickly and significantly at the start of the year. Economic indicators all consistently point to sustained recovery, with Australia s GDP figures remaining positive and amongst the best in the developed world. The financial services sector was hit early and hit hardest, but it has certainly bounced back stronger and more quickly. The resources, IT&T and energy sectors have also continued to improve this year. In the permanent area, we have seen a marked improvement in the amount of learning & development roles, as well as recruitment and reward. It seems that the acquisition, development and retention of its talent is at the top of all company objectives as business leaders strive to retain their best people as we enter this period of regrowth. Many people significantly underestimated the speed of the recovery. We are already noticing some employers offering attractive increases to attain the best calibre candidates. With regards to salaries and bonuses, unsurprisingly there was very little movement for anyone in 2009, with companies almost universally freezing all increases. A huge proportion of candidates starting their job search in 2010 have been on the same salary package for up to 2 years, with no clear indication as to when this might improve. Before the downturn HR salaries in Australia, particularly in Sydney, had reached levels that were well above the global market rate; the downturn did at least bring some sensibility to pay grades. As the market continues to improve employers will have to ensure they look at incentivising their staff correctly. Whilst we are yet to return to the extremes of 2006/2007 when candidates were receiving multiple offers with vastly inflated salaries, we are already noticing some employers offering attractive increases to attain the best calibre candidates. This couples an increasing number of candidates receiving more than one offer. The GFC has certainly left its mark, reminding us that a buoyant market will always be followed by a low. We have witnessed the speed at which recruitment can dry up, but also at how quickly things can bounce back. Barring any exceptional global economic shocks, we would expect the market for HR professionals in Australia to continue to improve over the next two years. 3

4 INTERIM MARKET OVERVIEW As Australia came out of the economic downturn we started to see an immediate need for short term contractors. With a renewed focus on business sustainability, talent had to be sourced at the speed in which the market was recovering. Over the course of 2010, this has led to an increase in the volume of contract positions in the market. As expected when top performing permanent candidates are not moving roles, the amount of roles on a temporary basis increases. The increase has mainly been in the junior to mid level space ($20 to $35 per hour), with contracts generally ranging from two - six months. In the first part of 2010, most of these opportunities were Recruitment Consultant / Officer and HR Coordinator roles. This increase resulted in an immediate need to bring staff on board to assist with high workloads, while companies assessed how they were going to restructure their teams and deal with these increased volumes of work. As a result of the market being reactive in the first part of 2010, there was not a huge demand for executive level interim work. Companies requiring change managers and organisational designers were not initially prominent, but this has steadily increased through the second half of There has also been a demand for individuals with global and international experience who can deliver results quickly. We have certainly noticed an increased appetite for overseas arrivals with working holiday visas. A good proportion of this pool of people have stepped into roles quite quickly after arriving in Australia. The early part of 2010 pointed to a notable increase in the use of temporary and interim staff. The market sentiment in the early part of 2010 pointed to headcount and budget restraints still being a factor, resulting in a notable increase in the use of temporary and interim staff. This presented good opportunities for those candidates / professionals looking to start an interim career or continue as a professional contractor. Broadly speaking the outlook for the Australian HR industry over the next couple of years is positive and despite wider (global) economic issues, we believe it will be a good twelve months in the interim market. We will continue to support both our clients and candidates and look forward to hearing from you if you require advice on the current interim market. 4

5 GLOBAL MARKET As Australian organisations emerged from the global financial crisis many took a more targeted approach to their recruitment. With 2009 being a tough year in recruitment globally, we have seen the Australian HR community looking to the broader market to find exceptional talent. With international markets such as the UK and US lagging in their rebuild phase, Australian organisations have been far more open to sponsorship in The UK market has seen a healthy increase in recruitment activity in 2010, and they expect the net result to show a continued upward swing in the number of roles across the 30,000 to 70,000 salary range. However, the market for top talent in this range will remain tight which may lead to some salary inflation for top quality candidates. The number of senior HR jobs is also on the rise and there remains a large supply of good candidates. Organisations are seeing strong shortlists for most roles and are benefiting from this surplus. Conversely, senior candidates may have found 2010 frustrating as those organisations remain highly prescriptive about the skill sets and backgrounds of the individuals they look to take on. Candidates had to be very flexible during 2009; many have been happy to look at working and staying away from home or even relocating to secure the next role. We have seen this trend continue to an extent, throughout 2010 as those living in certain parts of the UK will have to look further afield for the right role. Historically, banking and financial services, professional services and law firms have been the main industries that will look at sponsorship as a competitive option, often due to the global nature of their business. However, we have noticed an increase in a range of large Australian employers looking at hiring HR professionals from off shore, at a variety of levels. Reward organisational development and recruitment professionals have always been in demand, however, more recently we have also seen increased demand for commercial HR business partners at the more senior levels. The Australian market is also seeing an increase in the acceptance of expatriates with Working Holiday Visas for short term contracts. There are certainly increasing opportunities of sponsorship for some candidates once they have proved themselves within a role on a temporary basis. As you would expect, this is predominantly happening in larger organisations. We have noticed an increase in employers looking at hiring HR professionals from off shore, at a variety of levels 5

6 THE 2010/11 SALARY SURVEY The data and commentary that follows appear as a result of qualitative research and input from HR professionals, as well as information taken from interviews and recruitment assignments handled by our Consultants over the past eighteen months. We have broken down the survey into six grades, with bespoke data for the varied areas of HR. The terminology we have used for job titles in this document is purely representative of what we have come across regularly in the market. It is not indicative of a role s seniority as the variance in usage by organisations and across different industry sectors is significant. For the purposes of this survey we have divided each grade into two sections: one to represent small to medium-sized organisations typically up to around 4,000 staff. The second represents larger businesses, usually over 4,000 staff. Also included in the larger business section would be those global businesses with a smaller population in Australia (often investment banks and professional services firms). This year, rather than give different bandings for different sectors, we have produced the data for the different types of role found in HR. As the salary bandings are already relatively broad, the various sector nuances are better articulated by our Consultants who know their specific market inside-out. Relevant information on industry trends can be found in the summaries on each page, as can a list of general responsibilities attached to these types of job. The salary ranges shown are a direct representation of the data collected during the survey. As such, there are significant variances in the minimum and maximum figures. As always, please contact one of our consultants to discuss salary ranges in more detail. 6

7 ADMINISTRATOR/ CO-ORDINATOR/ ANALYST These positions broadly focus on support to HR teams and the basic administrative duties of the HR function. The HR Administrator or HR Coordinator will often be the first point of contact for all HR queries and will be responsible for a variety of tasks ranging from basic administrative support, HR database entry and maintenance, document preparation, recruitment coordination, training coordination and reporting. They will also be actively involved in the coordination of annual people processes and ad hoc projects. The HR Coordinator title can be used for employees with up to three years of experience. HR Analysts are most commonly specialists with one or two years of experience in their area of expertise. These positions tend to exist most commonly within the area of reward or HR information systems. The Reward Analyst was in particular shortage during the GFC due to the obvious scrutiny on salaries. Equally affected was the junior L&D market, which took quite a hit in terms of hiring activity. With the return of nice to have development programmes, the need for coordinators to support the L&D consultants was all but gone. This is one area that has not seen a great increase in the marketplace as yet, despite increased activity for more mid-senior level L&D roles. The downturn in the market saw a need for many HR Administrators and Coordinators to increase their work loads as well as their skill sets due to the cut backs of more senior positions within HR teams. For these employees, a move to a new organisation into an HR Advisor or HR Officer role should see a reasonable increase in salary, keeping in mind a high level of competition will exist for these roles. On the other hand, in many organisations administrative functions were scaled back, carving out more administrative work for HR Managers and the like. Due to the rapid rebuilding of HR teams that we have been experiencing, this junior end of the HR market should see the creation of more jobs for entry level and junior HR professionals over the next six-twelve months. Small to medium sized businesses Larger organisations Base salary Bonus Base salary Bonus Generalist $45,000 - $60,000 NA $50,000 - $70,000 NA Reward $50,000 - $65,000 NA $50,000 - $75,000 NA L&D $45,000 - $60,000 NA $50,000 - $65,000 NA Recruitment / Grad Rec $45,000- $60,000 NA $50,000 - $65,000 NA OD / Talent / Change NA NA $50,000 - $65,000 NA 7

8 OFFICER / ADVISOR The HR Officer/Advisor group have responsibility as the HR contact for a defined client group within an organisation. Typically, employees at this level will have up to five years experience. HR Generalists at this level tend to have broad ranging responsibilities, such as providing operational HR support and advice to employees and line managers around employee issues such as performance management, disciplinary and grievance issues. Requiring strong knowledge of HR policies and procedures across the business is of vast importance. Responsibility for annual processes and providing guidance and advice across reward, recruitment & learning and development will often fall under this level of role, particularly if the organisation does not have a centralised specialist function. However if an organisation does have a centre of expertise for these areas, there will often be specialist advisors at this level in the group. The specialist roles most affected by the market downturn were the learning and recruitment positions. These areas have been getting increasingly busy throughout 2010, in line with the economic recovery. Interestingly, we have noticed that junior HR professionals are generally remunerated well, particularly in larger businesses. Salaries have remained at a premium in this space for the last two years, more so than at other levels in HR. Small to medium sized businesses Larger organisations Base salary Bonus Base salary Bonus Generalist $65,000 - $85,000 NA $65,000 - $95,000 5%-10% Reward $70,000 - $85,000 NA $70,000 - $90,000 5%-10% L&D $60,000 - $75,000 NA $60,000 - $85,000 5%-10% Recruitment / Grad Rec $65,000 - $75,000 NA $65,000 - $80,000 5%-10% OD / Talent / Change $70,000 - $85,000 NA $70,000 - $90,000 5%-10% ER / IR $60,000 - $80,000 NA $65,000 - $90,000 5%-10% 8

9 CONSULTANT / SENIOR ADVISOR The role of the HR Business Partner / HR Consultant is to work closely with each part of the organisation to achieve their business goals. They provide strategic HR planning, analysis and execution support to enhance business performance through people strategies. They would be responsible for day to day management of HR queries normally reporting to a more senior HR Manager. The role of the HR Consultant can vary depending on industry and size of teams. This job group includes all HR Generalist roles where there is a defined responsibility for advising client groups within the business. The professionals at this level usually have between four and seven years HR experience and do not ordinarily have direct staff management duties. Typical responsibilities would include providing advice to line managers on all HR policy and procedural queries and providing operational support on employee relations issues such as performance management, disciplinary, grievance and redundancy processes. In addition they would be running the implementation of all HR processes for client groups, ie succession planning and salary review processes. In certain roles they will also be responsible for advice and guidance on recruitment and where there is no centralised recruitment function, providing operational recruitment support. In specialist areas of HR such as learning and developement, OD, reward and recruitment, we have noticed candidates being paid at a premium (regularly above their generalist counterparts). Often this can be due to the shortage of quality specialists, given many new-to-hr professionals will not specialise in HR until this point in their careers. As with most roles, the industry that the HR Consultant works in will influence how well paid they are. Often the financial services industry tends to pay more with the incentive of a more attractive bonus scheme. In the first half of 2010 there was a demand for consultants at the four-six year band, with good talent at this level harder to find. Conversely, HR Consultants at the more senior level have been in greater supply in the market due to less senior Business Partner roles. Small to medium sized businesses Larger organisations Base salary Bonus Base salary Bonus Generalist $75,000 - $100,000 5%-15% $80,000 - $120,000 5%-20% Reward $75,000 - $100,000 5%-15% $80,000 - $120,000 5%-20% L&D $75,000 - $100,000 5%-15% $80,000 - $120,000 5%-20% Recruitment / Grad Rec $70,000 - $100,000 5%-15% $75,000 - $120,000 5%-20% OD / Talent / Change $80,000 - $110,000 5%-15% $80,000 - $130,000 5%-20% ER / IR $70,000 - $100,000 5%-15% $75,000 - $110,000 5%-20% 9

10 MANAGER / BUSINESS PARTNER The Manager level practitioner in most entities is responsible for the human resources function for a medium to large-sized division and in the case of small-to-medium-sized entities, for the entire organisation. Managers will typically have responsibility for a small team of practitioners and depending on the size and sophistication of the business, those team members may be generalists or responsible for one or more specialism (eg recruitment and learning and development). In larger employers, the HR Manager may be supported by a centre of excellence for some or all of the specialist streams. Indeed, some larger organisations with a particularly sophisticated HR function, will support a structure where the business partner has no direct reports, or at most only one or two. A stand-alone HR Manager may report directly to the CEO or Managing Director of a small-to-medium-sized business, whilst in larger companies the role would report to a GM of HR or HR Director. The market for HR Managers was fairly static through 2009 but has been gaining momentum throughout Those HR Managers who maintained their positions during the downturn often did so with smaller teams and tightened budgets. There is now movement in most sectors although the manufacturing industry is somewhat lagging. From a remuneration perspective, and following pay freezes at many employers, there has been movement across the band for HR Managers this year, if modest. Pay in the OD, talent and change areas, as well as reward, will continue to attract a premium at the top of the banding. Small to medium sized businesses Larger organisations Base salary Bonus Base salary Bonus Generalist $120,000 - $150,000 10%-20% $140,000 - $200,000 10%-30% Reward $120,000 - $160,000 10%-20% $130,000 - $200,000 10%-30% L&D $120,000 - $160,000 10%-20% $130,000 - $170,000 10%-30% Recruitment / Grad Rec $120,000 - $150,000 10%-20% $130,000 - $170,000 10%-30% OD / Talent / Change $120,000 - $160,000 10%-20% $130,000 - $180,000 10%-30% ER / IR $120,000 - $150,000 10%-20% $130,000 - $170,000 10%-30% 10

11 SENIOR MANAGER / SENIOR BUSINESS PARTNER The Senior Manager role is ascribed to individuals who are managing a larger team, usually a minimum of five. Typically these individuals will be overseeing a sizeable generalist HR function for a business division, or a specialist HR function such as learning and development, resourcing or reward, in a larger organisation. If in a generalist role then typically client groups would be a minimum of 500-1,000 staff, but in larger organisations this may increase to c.2,000 staff. From a generalist perspective, the responsibilities for professionals at this level can often act as quasi-hr Directors for their specific business unit (BU) client groups. Invariably they will be part of a BU senior management or leadership team with at least a dotted line report into the business leader of that area. With regards to the specialist roles of HR, these will typically sit centrally, driving strategy in their specialist area from a group-wide perspective. The reporting line is usually into the overall HR Director, but can also be a level down in the largest organisations. Salaries for the Specialist Heads are certainly at a premium at the moment, mirroring the market trends we mentioned initially of businesses investing more heavily in reward, L&D and OD type-roles, with senior level reward professionals often leading the pack. Frazer Jones has undertaken a number of Head of Reward roles in the past eighteen months, particularly within the services industries. Naturally roles at this level are at the pointy end of any HR structure in terms of seniority. However, whilst there will never be the same volume as at more junior levels, we would expect this portion of the market to remain busy for some time, particularly as Senior Leaders are increasingly looking to surround themselves with high calibre experts. We find that pay ranges vary substantially towards the senior end, so there are exceptions to these bandings, and the largest employers in Australia will often pay substantially more for the divisional / BU head of roles. Frazer Jones will include this data in the Executive HR Director Salary Survey to be released in early 2011 (see below for more information on this). Small to medium sized businesses Larger organisations Base salary Bonus Base salary Bonus Generalist $150,000 - $200,000 20%-40% $170,000 - $250,000 30%-50% Reward $140,000 - $200,000 20%-40% $170,000 - $270,000 30%-50% L&D $150,000 - $180,000 20%-30% $170,000 - $250,000 30%-50% Recruitment / Grad Rec $150,000 - $200,000 20%-30% $170,000 - $250,000 30%-50% OD / Talent / Change $160,000 - $200,000 20%-30% $170,000 - $250,000 30%-50% ER / IR $140,000 - $180,000 20%-30% $160,000 - $230,000 30%-50% DIRECTOR / GM At the executive end of the HR market salary packages vary more substantially based on size of company, ownership (public or private), industry sector, location and regional complexity. As a consequence, we are in the process of developing a specific remuneration survey for HR Directors and will be publishing this in early This will cover generalist and specialist HR roles and will specify fixed and variable pay components in detail. If you require information on this in the meantime, please contact Paul Breslin. E. paulbreslin@frazerjones.com.au 11

12 CONTACT DETAILS For Executive HR Recruitment, please contact: Paul Breslin T. +61 (02) For Permanent HR Recruitment, please contact: Julie Spears T. +61 (02) For Interim HR Recruitment, please contact: Renee Clarke T. +61 (02) For all Melbourne HR Recruitment, please contact: Peter Barber T. +61 (03) Sydney Level 12, 25 Bligh Street, Sydney, NSW 2000 T: +61 (0) Melbourne Level 2, Rialto North Tower, 525 Collins Street, Melbourne, Victoria 3000 T: +61 (0) London 95 Queen Victoria Street, London, EC4V 4HN T: +44 (0) Dubai Suite 614, Liberty House, DIFC, PO BOX , Dubai, UAE T: Hong Kong 1918 Hutchison House, 10 Harcourt Road, Central, Hong Kong T: Singapore Level 15, Prudential Tower, 30 Cecil Street, Singapore T: FRAZER JONES IS A MEMBER OF THE SR GROUP.