Hays Human Resources - April 2008

Hotspots

HR generalists with a cross-section of skills and permanent HR managers are the current hotspots of demand across Australia's human resources market. Generally, organisations are encouraging internal career advance of their HR generalists and managers to retain their skills, which requires these roles to be back-filled.

Recruitment consultants are required due to company growth, although there is a shortage of these skills in the market.

There has also been steady demand for internal recruiters, OH&S advisors, and learning and development consultants that specialise in management development and organisational development. OH&S advisors are in demand due to internal movements and organisational growth. L&D needs have arisen due to organisations going through change and culture development, while employers are seeing the true benefit in developing managers and staff to help retain strong performers in this candidate-short market.

The coming quarter

Australia remains skills-short, but following a very active first quarter of human resources recruitment activity, and a year where HR staff became a prime focus for an organisation to sustain a frantic search for talent, the market has become more stable. Certainly HR staff will still be in demand, in fact there has been an increase in HR roles for organisations that have created a HR function internally due to their own growth, but possibly the focus will move to temporary human resources professionals over the quarter. In addition, project work and recruitment campaigns will ensure staff are still needed.

The market is seeing an increase in the demand for part-time and contract workers. This indicates that organisations are embracing this previously neglected market of highly skilled workers, however this move is not entirely reciprocated by all candidates, with many uncomfortable with the prospect of uncertain contract lengths.

Executive

The executive market remains steady, with continued demand for specialist change managers, organisational development managers, and contract executives due to organisational growth and development. There has been a focus on strategic talent attraction, management, and retention. In Western Australia there is a significant increase in HRM roles within start-up mining, engineering, and oil and gas companies.

Salaries

Salaries have increased on average between 7-10 percent over the last 12 months and we now expect them to remain stable over the coming quarter. High increases have been evident due to the ongoing demand for HR skills, and in the resources sector. Some organisations have implemented bonus structures in order to assist with their retention efforts.

As the market becomes increasing specialised, salaries are increasing for particular specialists in the hotspot areas listed, such as L&D professionals with soft skills development and instructional design skills.

Apart from these roles, salaries have been very stable over the last quarter and it is anticipated that this will remain the case. Due to the significant increases in HR professionals' salaries over the last couple of fiscal years, organisations are looking at incentives, such as flexible working options and KPI-related bonuses, rather than straight salary increases to deal with their retention issues.

Candidate trends

There has been an increase in HR generalists available on the market at a senior level. There is a distinct lack of candidates at the mid level and there are a number of candidates looking to move from public sector organisations to the private sector.

Employment trends

Employers need to become more flexible in their set criteria. They often want a successful applicant with the skills and experience that exactly match a very defined checklist however this is not always possible, and with a little flexibility an ideal candidate can still be sourced. Employers need to consider the transferable nature of a HR candidate's skills.

The market is busier than ever and, as a result, candidates are offered multiple roles. They are also counter-offered more frequently than before and, as organisations focus on their retention strategies, this is set to continue.