Hays Resources & Mining - January 2008

New Zealand

Hotspots

Throughout 2007 the market for experienced technical personnel at both the management and trade level across mining, oil & gas, power, energy and associated design and construction markets tightened. The resources and energy sector in New Zealand continues to develop; in particular oil & gas exploration and power generation remain key areas for growth and technical staff are at a premium.

Within oil & gas the exploration and production industry continues to be active and shows no sign of slowing down in 2008. Geoscience professionals including geologists and geophysicists, in addition to reservoir and petroleum engineers, are in great demand.

The development of several new mining projects across the country has seen the demand for technical mining staff increase over the last six months - engineers and supervisors at all levels are extremely scarce. Design engineers, particularly within power and energy, in addition to project engineers for heavy industrial EPCM projects are also coveted. This is not a new problem for employers and with new projects in the development phase this demand will remain.

New Zealand's power industry has seen an increased need for specialist engineers in the fields of transmission, distribution and generation mostly around protection systems, primary designers for sub-stations and generation technologies, both development and design orientated. There is a current demand nationally for power systems engineers with intermediate to senior levels of experience, however the market is very tight within all engineering disciplines.

The resources and energy sector globally - and especially in Australia - is buoyant and shows no signs of slowing. New projects, and the development of existing projects, have led to an increased demand for staff at all levels. New Zealand employers unfortunately struggle to compete with the salaries and remuneration packages available in the global market for experienced personnel.

The coming quarter

Employers anticipate continual growth across all the resources, mining, energy, heavy engineering and industrial sectors due to an increased workload and further staff movement overseas. The majority of recruitment is permanent based with companies attempting to increase their core staff levels. There is an increase in contract recruitment as companies look to overcome the pressure of being under-resourced by using experienced personnel for short-term solutions. While this does not ultimately resolve key recruitment issues it does provide relief in key design and supervisory roles, particularly on construction and maintenance projects.

Executive recruitment

Recruitment at the senior management and executive level faces the same problems as at lower levels. Companies are looking to supplement existing management structures with new management from within and outside New Zealand. Opportunities exist for executive professionals with expertise in staff and operation management in addition to technical professionals who can provide organisations with the benchmark and direction to move forward. Geoscience professionals within oil & gas exploration and production are extremely sought after as New Zealand's oil & gas industry continues to develop and expand.

Salaries

Remuneration for permanent staff continues to increase steadily across all market sectors and this trend will continue. Particular increases have been noted in oil & gas exploration and production, mining and power generation. Regional variations do exist although these tend to even out for roles that are in particular demand such as design engineers and technical specialists.

Contrary to reports, the economy in the heavy engineering/industrial sector is buoyant with continued investment internally and from overseas. This is leading to increased demand for staff, which in turn is leading to continual increases in base salary levels.

Candidate trends

Employees are aware of the market environment and are increasingly more demanding of their own employers, as well as being prepared to seek new challenges in different industries or different locations. All sectors have shown an increased number of vacancies and an increased demand for staff. Whilst overseas migration from New Zealand remains a constant threat to company growth domestically, there is a steady influx of returning nationals and overseas immigrants seeking a change of lifestyle for themselves and their families.