Introduction

What lies beneath??

One could well be forgiven for thinking that recent events in the credit market have put things on a downward slide towards the murky depths of the early nineties or post dot com naughties. What’s different this time around is the solid base upon which Australasia's business strength is built. Absolutely there has been a slow down in the banking and related sectors and absolutely there has been a reduced demand for staffing in that sector – but it’s very contained; as yet we have seen no evidence of any negative impact across the broader job market. In fact, our job flow (the number of new jobs registered) remains at record levels.

Logically, salary changes have stayed in line with the market – where demand has been high, salaries have been under pressure. In reverse, where the demand has softened there have been more candidates to choose from and therefore less pressure to attract and retain staff through salary hikes.

In the qualified accounting arena for example, first time movers and candidates with mining, manufacturing, construction and engineering experience have enjoyed the most obvious salary growth over the year in addition to improved benefits and bonuses. We have also seen an increase in counter offers, for example one candidate received a salary increase of $25,000 when they resigned to entice them to remain with their current employer. This trend has increased significantly over the year, but our Salary Survey data shows it is rarely a successful strategy; 37 percent of candidates who are counter offered leave immediately anyway and a further 32 percent remain under 12 months.

In financial services, the primary area of note regarding upward salary movement was financial planning. With, for example, typical salaries for qualified senior para planners increasing 6.7 percent on average across Australia and New Zealand.

In engineering, the level of infrastructure investment shows no sign of abating across Australia and New Zealand, causing continued pressure on candidate sourcing and salaries. This is particularly the case in Queensland and in civil and structural engineering, where the average increase for the maximum of the salary ranges in Brisbane/Gold Coast was a bold 13.3 percent.

In the legal sector, more companies are electing to hire in house legal counsel rather than relying solely on external panels of legal firms for advice. Consequently there have been some notable salary increases in this sector.

Some key trends highlighted in the survey include the increase in the percentage of employers bearing the cost of FBT – up to 55% this year from 48% in 2007. In terms of hiring expectations, the results remain optimistic across the board with 88% of respondents in engineering, 51% in human resources and 64% in information technology predicting increases.

In our opinion, one of the most telling statistics is the recruitment intentions section; almost 50% of respondents expect permanent staffing levels to increase while only 4% see any decrease. As an important barometer of “employer confidence”, this result further illustrates the underlying strength of the business landscape overall.

However, what does remain the same as last year is the survival of the smartest. In areas of high demand, such as sales roles, cash collection and those jobs attached to the commodities sectors, the organisations that are securing the best candidates are those who are smartest about their recruitment practises. They are thinking hard about what they say about themselves in the market, asking the right questions of their existing and potential employees, making sure their recruitment process is interactive, responsive and quick, then focusing clearly on the retention and development of their key personnel. Candidates who are in demand are also quite demanding, looking for a range of reasons to join an organisation. Benefits such as flexible hours, parking, achievable bonus payments, training and development are high on many candidates' wish lists.

Of course the best reason that a candidate can have to join (and stay with) any organisation is because it is the right place for them – either the right job is on offer or the right environment exists to enable them to make the most of their careers.

Nigel Heap
Managing Director
Hays Asia Pacific
May 2008