Hays Engineering - October 2007

Hotspots

Continued emphasis on infrastructure projects and increasing populations in some states, such as Western Australia and Queensland, have created a hotspot for civil engineers, drafters and design drafters, with a particular emphasis on 12D experience. There is a national shortage of drafters with experience preparing drawings to national and international standards. In addition, many candidates possess strong 3D CAD modelling skills but a large number of companies require 2D skills.

Within commercial/residential building there is a requirement for structural engineers and drafters with between five and ten years experience, while Australia's drought and long-term environmental concerns have created demands within water infrastructure for engineers and drafters with five to 15 years experience.

Mechanical and electrical design engineers with product or machine design experience are required as many candidates pursue mining roles for the higher salaries on offer. In addition, very few candidates have experience designing and validating products within a structured design process and experience in development within highly regulated industries and conforming to modern quality standards is also in high demand.

Building services hotspots exist within mechanical design (HVAC) for candidates with three or more years experience and solid communication/client facing skills, and within hydraulic design, a relatively unknown career path with limited training opportunities.

Continued rail personnel shortages now mean opportunities are available for civil engineers who wish to move into the rail market.

As more consultancies seek to diversify their business, traffic engineering has become a major area of interest, requiring candidates at all experience levels.

Finally, there is a trend towards sustainability in all market sectors and many buildings are increasing their star rating or aiming for 6 Green star rating. Environmental specialists will play a larger role in all construction phases in the future and we anticipate it will be a hotspot of the future.

The coming quarter

Vacancy activity and job creation is positive and is expected to remain steady over the quarter since workloads are high. Engineering consultancies and private sector employers have ongoing requirements and candidate availability remains the key. While most consultancies prefer to secure skills on a permanent basis, they will now more readily employ temporary and part-time candidates given that the demand for skills is so high.

For similar reasons, there is also a considerable drive to recruit overseas engineers to supplement the local skills shortages where necessary.

Employers who traditionally would not consider the sponsorship of international candidates are now showing a real shift in attitude. Candidates from the UK, South Africa and Singapore are proving to be a very good fit for local employers due to their relevant project experience and transferable skills.

Executive recruitment

Executive recruitment is certainly a focus for employers, and candidates with a strong technical background, commercial awareness, project management and people skills are highly sought after. Those with solid business acumen can make all the difference on winning a bid. Vacancy activity for executive staff is expected to continue unabated as senior management positions become available for upcoming major projects. Typical vacancies include alliance project directors, engineering management roles and senior safety management positions.

However given the level of candidate shortages, companies are increasingly looking overseas for senior staff, while many local engineers who are nearing or past retirement age, but wish to continue working, have a multitude of opportunities to choose from, particularly from the consulting engineering industry which is in desperate need of their skills.

Salaries

With the market for engineering professionals in Australia and New Zealand remaining very buoyant, and given current levels of demand, there have been many instances of big salary increases over the past 12 months. However over the coming quarter we only expect marginal increases as firms have already increased many of their salaries strongly. Employers are also using performance-related bonuses, employee incentives and flexible arrangements to attract and retain staff, rather than relying on salary alone.

The Hays Salary Survey includes over 30 engineering roles across 11 locations, with over 80 construction & property roles surveyed overall. It can be viewed at www.hays.com.au/salary

Candidate trends

The availability of entry-level candidates has improved as those approaching the completion of their degrees commence their employment search and drafters completing their diplomas enter the market.

There has been an increase in candidates applying to unsuitable roles, yet it is important candidates apply to vacancies that match their skills and experience to avoid wasting both their own time and that of potential employers.

Other trends

The training and development of entry-level candidates may involve initial investment, but is beneficial to the whole industry long-term. Consultancies must recognise the need to employ and train entry-level staff, as the skill shortage will only continue without an investment in experience development.

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