Hays Engineering - January 2008

Hotspots

There is no denying Australia is severely short of experienced engineers. Demand exists for candidates with more than one years post-graduate experience, with the most severe shortage of candidates existing for those with between three to ten years experience. The skills shortage is such that any candidate with a suitable background and good communication skills can expect multiple employment offers. Unfortunately, many graduates lack communication and presentation skills, which employers want.

The senior to associate director level across all building services disciplines is also facing a severe shortage of candidates, with the ongoing construction boom, aging population and lack of investment in the engineering sector the key factors.

There is an increased need for water and wastewater engineers due to an increased focus on reusing wastewater and improving the efficiency of water processing plants. The demands caused by the drought have called for governments and local councils to be more accountable for efficient water production and reuse, putting pressure on the need for these skills.

Finally, environmental engineers are a rapidly growing area of demand as engineering firms aim to build buildings with a sustainable focus.

Geographically, civil engineers and drafters with design industry experience in road, stormwater and drainage design are an area of particular demand in South Australia. The gap in University funding following several years ago, the higher salaries available in other states and the mining sector have had a significant impact on this shortage.

The coming quarter

There is no doubt new engineering vacancies will be created over the quarter, since consultancies use the first quarter of the year to appoint key personnel to facilitate their 2008 activity. The building services and civil structural design sectors will be very active over the quarter, seeking both temporary and permanent new staff.

However as noted, there is a shortage of qualified and experienced engineers, putting a strain on the market. The mining industry is not only attracting skilled engineers for its own sites, but consultancies in states such as South Australia are winning tenders to provide the mine's infrastructure, further putting pressure on the availability of candidates.

Darwin has become an active market geographically, with a number of opportunities available for civil and structural engineers.

During the University break between semesters, more consultancies are employing students with the appropriate visa and drafting and design skills from overseas. The contract process allows these employers to assess the candidate's skills and also provides Australian experience for the candidate.

Executive recruitment

Sydney and Melbourne have significant executive recruitment requirements, since companies are expanding into a global market and salary packages continue to rise.

In other states, there is not an enormous demand for executives, with activity instead focused at senior management level. The main focus is on the recruitment of mid-tier engineers who will be eligible for promotion to senior level in approximately five to seven years when current managers retire.

Salaries

Salaries are remaining fairly stable, albeit pushing the upper limits of the Hays Salary Survey bands. Despite speculations that salaries in the design sector were due to rise significantly to compete with the mining and construction sector, there has been little actual evidence of this. Salaries are steadily increasing in line with inflation, however candidates who are demanding higher than average salaries are being met with scepticism from their potential employers.

Employers are very cautious of generation Y candidates, feeling their salary expectations are unrealistic. However with some education and the use of the Hays Salary Survey, candidate expectations can be brought in line with current market trends.

Candidate trends

There has been a continual decrease in the number of qualified civil and structural engineers who can hit the ground running. However, as a result of this publicised shortage we are starting to see a slight increase in the number of graduate engineers.

There has been a significant increase in the number of overseas candidates who have been granted a skilled working visa. However companies remain reluctant to employ these candidates, particularly in the building services sector, without Australian experience. This is an area that we are constantly trying to educate companies about, although it takes time.

Companies are working hard to retain staff, particularly in those roles that are particularly candidate short.

Other trends

Counter offers remain a major factor in a candidate accepting a new position, although for those candidates that do accept a counter offer from their current employer, they often end up searching for another vacancy within a year as the real reasons for looking for another role were not wholly monetary based.