Hays Facilities Management - October 2008

Hotspots

With summer approaching and more and more facilities being delivered, the demand for experienced technicians to service plant and equipment, including air-conditioning equipment, has increased. In New South Wales a new focus on replacement programs and outsourced maintenance has seen maintenance planners become a hotspot of demand. This outsourcing focus has also led to demand for facilities management consultants to handle the diversification and risk management of income streams through business development and capital expenditure consultation.

The demand for hard services tradespeople and engineers remains. With corporate restructuring and the acquisition and divestment of space resulting in space management issues, senior corporate facility managers have also become a hotspot of demand.

A focus on commercial upgrades and strict compliance to BCA standards and Green Star/ABGR ratings is leading to increased demand for qualified engineers with environmental management experience, although there is a shortage of available candidates.

In two state-based trends, Victoria requires maintenance trades associated with HVAC and Western Australia's high level of refurbishment, refit and upgrade work on commercial, industrial and mixed use sites has led to project managers with electrical or mechanical backgrounds becoming a hotspot of demand, particularly in the commercial facility sector. Contracts managers with experience in large facilities management contracts are also in demand.

Within the New South Wales health sector, both service providers and asset managers within a consortia as well as consultants working on behalf of the financiers require technical expertise, lifestyle and replacement costing experience, and financial modelling experience to win tenders.

The coming quarter

Vacancy activity will grow in both the facilities management and associated trades sectors this quarter. Specialist trade jobs will predominantly be permanent roles while temporary work will continue to be a viable option for project work in facilities management, particularly as facilities management contracts come to a close or change hands.

The only exception is New South Wales where recruitment for corporate roles will slow, although activity will increase for outsourcing and service providers as a result of new job creation.

Executive recruitment

Executive facilities management recruitment is sporadic and is largely dictated by changes in contracts with the major providers. Cost cutting measures have resulted in some executives and asset managers not having their contracts renewed. Traditional facility management, mechanical and electrical engineering candidates remain scarce. In Western Australia, contract managers and general managers are in demand as major infrastructure projects are completed.

Salaries

Salaries will increase slightly across the board as a shortage of high quality candidates gives the opportunity to negotiate higher remuneration. In the current economic climate however, this has resulted in salary increases being set 3, 6 or even 12 months into the future to allow candidates to prove their worth prior to receiving the additional salary.

The exception is Victoria where salaries are not expected to increase over the next quarter, meaning organisations offering flexible packaging options will be in the best position to attract candidates. On the other hand, maintenance trades in HVAC will benefit from the warmer months, driving salaries up as companies struggle to meet the workload demand.

Candidate trends

Outsourced contracts are increasingly being awarded on price, requiring service providers to take a creative approach to delivery and cost minimisation, thereby increasing pressure on staff and prompting staff movement between contracts. The continuing candidate preference to work for owners and tenants rather than outsourcers and service suppliers leaves multiple opportunities for candidates on the supplier side.

The growth of the facilities management profile has boosted candidate interest from sub-sector disciplines, giving candidates with operational skills and strong technical knowledge the opportunity to break into the industry.

HVAC technicians will be in short supply in Victoria as the lure of inflated salaries created by the resources boom draws local talent interstate. Trade candidates from the HVAC sector have traditionally fed the facilities management market as technicians look to down tools. This movement is declining due to inflated salaries in the trade sector making the transfer to white collar less attractive.

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