Hays Construction & Property - April 2008

New Zealand

Hotspots

Development managers and entry and intermediate level property managers are hotspots of property demand, since the movement of candidates (particularly in the first quarter of the year) overseas continues. While there has been a reduction in the number of candidates that have returned, those that do re-enter the local market often bring with them high expectations for job responsibilities and salary.

The architecture market is experiencing demand for senior technicians who can assemble buildings - there is a shortage of candidates with the appropriate skills and experience.

The facilities management market requires ground-level HVAC candidates, such as technicians and senior technicians, which is peaking this quarter due to the warmer weather.

In Christchurch's busy construction and property market demand will be high in the first half of the quarter for intermediate to senior candidates who can then mentor new recruits at the graduate and entry-level. Once sufficient levels of management are in place, the recruitment focus will shift in the second half of the quarter to graduates and entry-level staff.

In businesses with an already established and capable senior structure, there has been an increase in the number of cadets and graduate roles available, which is positive news for the future of the skilled candidate pool. It is also a result of many growing companies acknowledging the current pool of experienced candidates is not adequate, so they are taking measures to bring the next generation into the workforce.

Meanwhile Auckland's construction and property market is experiencing demand for estimators, professional quantity surveyors at all levels, commercial project managers and site managers due to the ongoing positive market in the region.

The coming quarter

The first quarter of 2008 is expected to be fairly stable, with employers recruiting for projects that will commence in the second quarter. Supplementing this creation of new roles will be healthy turnover that keeps the number of vacancies created by the departure of staff high.

With several major infrastructure projects commencing in 2008, and with heightened interest in the South Island's property market, it is anticipated that there will be growth in the property industry both in terms of available candidates and in the number of businesses choosing to operate in this market.

Executive recruitment

Overall no exceptional movements at the executive level are expected, however there are a number of national businesses looking at Christchurch and Queenstown to grow their market share, which could create director and senior management opportunities in a start-up capacity. Property is also an exception, where some positive executive movements for $150,000 and above positions are expected.

Salaries

Given the large amount of forward workloads and the positive forecast for the industry, competition for top candidates will continue, placing pressure on salaries. While entry-level salaries will remain steady, they are expected to increase steadily at other levels, which will create wider salary bands and more distance in salary between the relative experience levels. Salaries for intermediate-level positions will also increase as candidates detect an upward shift in salaries for senior staff. Given the demand for their skills, companies will also offer above market rates for solid estimators and quantity surveyors to secure their skills.

Candidate trends

Within FM there has been an increase in the number of candidates from a trades background entering the market. More employers are open to hiring these candidates than ever before.

There has been an increase of entry-level candidates entering the market following the completion of tertiary studies while candidate flow at senior levels is also increasing due to salary increases generated by competition in the market.