MARKET TRENDS & SALARIES REPORT 2H 2013 AUSTRALIA
WELCOME
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Ambition – Australia Market Trends 2H 2013
Contents Introduction 4 Key Survey Findings
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Finance 8 Technology
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Human Resources
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About Ambition
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Contacts & Support
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Ambition – Australia Market Trends 2H 2013
Introduction
Welcome to our winter 2013 2H Market Trends Report Despite starting the New Year with some post-holiday optimism the first half of 2013 has been an uncertain one for the white collar recruitment market. For the most part employers have been unwilling to invest in new talent whilst job seekers have been reluctant to take unnecessary risks, meaning the market has been patchy and inconsistent. On the buy side we have seen many employers, particularly large scale companies, continue with rationalisation and cost cutting programmes which has diverted their focus away from hiring, whilst for others the lack of positive indicators and the expected change in federal government next quarter has dampened appetite for investment in growth and jobs. Virtually all of our recruitment this year in the finance and HR disciplines has been related to replacement positions although in technology there continues to be a reasonable level of investment in new positions and projects that can deliver a competitive edge. Organisations are also being risk averse in their hiring strategies in that there is a focus on “exact fit”, i.e. hiring people with a proven track record in the job and sector to reduce the risk of a poor hire. In a better market organisations tend to be more open to broader skills sets and profiles. There also seems to be more high calibre candidates available prepared to listen to interesting opportunities. Those organisations willing and able to present a compelling proposition in terms of brand, job responsibility and career growth are finding they can improve the quality of their teams through the recruitment of better people from the market. On the sell or supply side, whilst there are many more active job seekers available there is also uncertainty and risk aversion on their behalf as they would rather stay put with the “devil they know” rather than risk moving to an organisation where they may be a “last in first out” victim of any redundancies. As identified above however there is a healthy appetite for the “right move” so companies that are able to present a positive EVP and future prospects can benefit. At Ambition we are specialists with in-depth knowledge expertise and networks in the disciplines in which we work and are well placed to advise on careers and recruitment in these markets. In this Market Trends Report we’ll examine the current supply and demand factors as well as the future trends for the finance, technology and HR recruitment markets. We hope that this analysis helps you make decisions on hiring or moving and of course we would be pleased to assist you with any specific queries you may have. Paul Lyons Managing Director – Australia 4
Key Survey Findings Methodology During May 2013, Ambition invited participants, including employees and employers across a variety of organisations to complete the 2H Ambition Salary and Employment survey. The in-depth survey covered six core areas including: • Remuneration • Benefits • Workplace conditions
• Career • Business performance and outlook • Social media
Respondents The 2H Ambition Salary and Employment Survey was completed by 1,530 respondents nationally across Australia including 865 employees and 665 employers across Finance, Technology and Human Resources in May 2013. Level of Employment
Job Function
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Ambition – Australia Market Trends 2H 2013
Key Findings The 2H Ambition Salary and Employment survey produced some interesting findings in respect to working hours, how long employees are staying with their company, as well as their perception for career progression, bonus expectations and market confidence. The survey responses indicated that employees are more likely to remain with their employer for longer periods of time with 40% of respondents having worked at their current company for five years or more. This compares to just 12% of respondents in 2011 and 17% last year. More than 1 in 5 (22%) respondents have been in their current role for more than five years.
12% less than 1H 2013 results.
Over the last year there has been a decrease amongst employees expecting career progression with 49% of respondents believing they will not be able to progress to the next level with their current company, compared with 39% last year. Over half (59%) of respondents have not received a bonus in the last six months, while just 18% received a bonus of over 11% in the same period. However bonus expectations are being better managed, with 58% of respondents saying their bonus did not meet expectations compared to 65% last year.
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The lower end of base salary increases has been consistent with previous years with 34 % of respondents not receiving an increase over the last six months. Large base salary increases were down with just 4% of respondents receiving an increase over 10% or more compared to 7% in 2012. Salary remains most important factor in both the retention and attraction of employees.
Employees are working longer hours with an increase in the number of respondents working 50 to 60 hours a week (21%) and those working more than 60 hours (5%). In 2011, just 13% of respondents worked 50 to 60 hours a week, while 2% worked longer than 60 hours. In a positive sign looking forward, the majority (59%) of respondents said their business anticipates growth in 2013, while less than 1 in 5 (16%) anticipate contraction. Last year 48% expected growth with 18% anticipating contraction.
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FINANCE
Ambition – Australia Market Trends 2H 2013 – Finance
FINANCE Market Overview Supply & Demand Trends & Predictions Salary Guide
Banking & Financial Services
Accounting & Finance
Industry & Commerce
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Ambition – Australia Market Trends 2H 2013 – Finance
Market overview The employment market for finance professionals is one which is low in demand and slow in pace. The combination of uncertainty surrounding the global economy and the pending federal election has resulted in a cautious approach being taken by both employers and employees. There are few new finance roles being created and a significant majority are being amalgamated or off-shored. The majority of roles that become available are replacement related and not new roles, so there is low demand and high supply, with an immense level of uncertainty and very little movement. According to Australian Bureau of Statistics figures, 16,400 financial and insurance services jobs had been cut across the nation in the 12 months to the end of February. In just nine months NSW lost 11% of those employed in the financial and insurance services sector. Australia’s ability to survive a barrage of negative global economic events in recent years has failed to spark the confidence required to buoy the recruitment market. The lack of upward pressure on already static salaries and low bonuses is adding to the frustration. In many cases salaries have been frozen with only the top performers receiving the limited number of pay rises available. More than half (55%) of the finance employees surveyed have not received a bonus in the last six months, while a further 11% have received a bonus of less than 5%. Almost one in three (31%) did not receive a base salary increase for 2013, with another 57% receiving a base salary increase of less than 5%.
Sydney It has been a difficult period for many people involved in the financial services sector in Sydney with increasing headcount becoming a low priority for most organisations as they continue to focus on the cost line due to the challenges of driving revenue in the current climate. A combination of stagnant salaries and falling bonuses has seen finance become a less attractive career option for many. Professionals are now often seeking jobs in other sectors. Many organisations are undergoing business transformations to enable greater efficiencies through cost cutting and technology improvements. Companies see this as a way of improving the bottom line especially in the current climate of limited revenue growth. 10
FINANCE In Western Sydney, the market has been flat and we predict a similar trend for the second half of 2013. It’s a “cautionary tale” with the highly conservative approach to hiring resulting in long drawn out recruitment process. Hiring is occurring only when “all the boxes and more are ticked”, while top tier candidates have retreated into a highly passive state with the view that a currently held job is perhaps better than the unknown due to concerns about unstable businesses.
Melbourne Melbourne has seen a downturn in sentiment across the market over the last quarter after some promising signs in the first couple of months of the year. A number of large corporates are currently initiating or finalising restructures to cut further overheads out of the business, which will likely ensure that market sentiment remains negative or perhaps even dips lower as we start to publicly hear of these cost stripping initiatives. We have seen a continual flow of candidates onto the market through redundancy or returning from abroad (where things are worse) and this has led to a significant oversupply of candidates. While this does mean that employers have the upper hand when recruiting, it hasn’t necessarily made it an easy market to recruit into.
Brisbane The Brisbane market remains relatively subdued despite some small bursts of activity in February and again in May. The delaying of investment decisions across a range of industries in Queensland has provided for a lot of the uncertainty that currently hangs over the market. The underlying sentiment is one of caution as the mining industry continues to make significant cut backs as projects are placed on hold. This is having more of an impact in the finance market than other markets including technology.
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Ambition – Australia Market Trends 2H 2013 – Finance
Supply & Demand Finance teams across Australia are about as lean as they possibly can be at the moment, meaning we are seeing a lot more critical replacement hiring rather than growth hiring, as well as the extension of employees’ roles especially at the senior level. The extension of roles has put greater pressure on employees which is best illustrated in our survey results where almost three in five (58%) finance employees sometimes feel pressure to work more hours, with a further 20% constantly feeling the pressure to work more hours. Two in three (66%) work from home outside of their contracted hours. The senior end of the market ($200k+) is a very slow place to be at present as supply is incredibly strong, often resulting in top candidates being available in the market for extensive periods of time. This is forcing many to take pay cuts, which can be concerning for employers as they fear the likelihood such employees will leave when the market improves. This is not the case at the junior to mid-level ($70k-$130k) where the market still remains tight for quality talent and there are far less candidates affected by redundancies. There is a higher level of activity among mid-market businesses due to their lack of bench strength and succession planning when compared to large organisations. These businesses are also able to punch above their weight in the current climate by securing people who may not have considered working for them in the past and on the same salaries as those they had previously employed. Through the demand for risk audit and compliance professionals there is evidence of an increased focus on good governance and prudence and process, which is common during difficult economic periods. There is also an increasing demand for finance professionals with analytical skill sets that can communicate with the business operations. From an employers perspective analysis must go hand-in-hand with a strong ability to present to senior stakeholders thus creating an even greater emphasis on written and verbal communication skills. There has been an ongoing demand for commercial business partnering skill sets as all companies seek to have their finance staff add more tangible value to their operations. We have also seen some recruitment across strategy and change management roles, predominantly a result of businesses strategising, building and executing projects to improve business performance or cut costs. We have noticed an increase in contract and temporary hiring in Brisbane as companies struggle to deal with the workloads being experienced by under resourced teams. Permanent headcount remains at a premium as companies are reluctant to grow their full time headcount. 12
FINANCE
Trends & Predictions While some organisations are already identifying lower performing individuals and replacing them with stronger talent, many are being conservative at a time when some adventurism might be of greater benefit to the business. The risk-averse approach of like-for-like recruiting can limit the potential upside of a candidate from a different background who, generally speaking, is more likely to originate or endorse new ideas. There is an emerging trend in business insights and big data in Sydney as companies seek any competitive edge they can find to secure growth. Organisations are looking to simplify the back office and to achieve this they are making it systematic and employee free. Headcount numbers are likely to remain the same in the immediate future; however a review of skills and capability of incumbents is likely to take place with employers expecting more from their employees for the same salary. Further redundancies are expected within the building construction and manufacturing industries, while there are positive signs in the property sector with a number of changes at executive management level. Both FMCG retailers and manufacturers are increasing analytical capability, with customer data considered “liquid gold�, as well as areas such as data analytics that are looking to drive business performance. Businesses are being forced to consider how they counter the burn-out on staff that is occurring without decreasing margins. This has given rise to opportunities for talented consultants with organisation design, process improvement and change management skills. We have also seen a reasonable increase in the use of contractors in the market at all levels, which is perhaps an indication companies realise they can’t run lean forever. With the appetite to add headcount still very low, contracting options are clearly the next best solution. Most companies in Brisbane are utilising temporary resources in the absence of full time headcount; however there has been a positive trend in the number of not-forprofit, aged-care and healthcare jobs becoming available. 13
Ambition – Australia Market Trends 2H 2013 – Finance
With the market unlikely to pick up in the near term as the economy and election continue to weigh, candidates will be forced to continue taking pay cuts. We are forecasting an increase in the number of projects being signed-off in Queensland, which will eventually make the market more competitive. With regards to offshoring, while it might be incremental now its cost benefit has become less tangible and this will be more the case if salaries remain relatively static in Australia while other countries experience double digit salary growth over the same period. The strong Australian dollar and relative high cost of wages compared with other nations for processing work does make it cost and service effective to have some services performed offshore, however this will not always be the case.
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Banking & Financial Services Salaries 2013 Job Title
Experience
Annual Salary Range (AU$)
Operations Management
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Head of Operations
10+ years
$160K-200K
Manager
7 - 10 years
$110K-150K
Team Leader
4 - 6 years
$80K-110K
Analyst
2 - 4 years
$50K-80K
Job Title
Experience
Annual Salary Range (AU$)
Manager of Performance
10+ years
$110K-150K
Team Leader
7 - 10 years
$90K-110K
Senior Analyst
4 - 6 years
$80K-95K
Analyst
2 - 4 years
$60K-80K
Head of Sales
10+ years
$200K+
Relationship Manager / BDM
7 - 10 years
$140K-180K
Assistant Relationship Manager
4 - 6 years
$90K-130K
Head of Research
10+ years
$250K+
Manager
7 - 10 years
$140K-200K
Senior Analyst
4 - 6 years
$100K-140K
Analyst
2 - 4 years
$80K-100K
Director/Head of Corporate Finance
10+ years
$300K+
Associate Director
7 - 10 years
$160K-200K
Senior Analyst
4 - 6 years
$110K-150K
Analyst
2 - 4 years
$80K-100K
Associate Analyst
1 - 2 years
$60K-80K
Head of Corporate Actions
10+ years
130K-160K
Manager
7 - 10 years
90K-120K
Team Leader
4 - 6 years
80K-100K
Analyst
2 - 4 years
60K-85K
Head of Administration
10+ years
$110K-130K
Manager
7 - 10 years
$90K-110K
Team Leader
4 - 6 years
$70K-90K
Officer
2 - 4 years
$50K-70K
Head of Operations
10+ years
$150K-200K
Manager - Derivatives
7 - 10 years
$100K-130K
Manager - Fixed Interest
7 - 10 years
$100K-130K
Manager - FX/MM 7 -
10 years
$100K-130K
Team Leader - Derivatives
4 - 6 years
$75K-95K
Team Leader - Fixed Interest
4 - 6 years
$75K-95K
Team Leader - FX/MM
4 - 6 years
$75K-95K
Officer / Treasury
2 - 4 years
$50K-75K
Manager
10+ years
$100K-135K
Team Leader
7 - 10 years
$70K-110K
Settlements
2 - 5 years
$55K-80K
Sponsorship / Bookings
2 - 5 years
$55K-80K
Head of Compliance
10+ years
$250K-300K+
Compliance Manager
7 - 10 years
$130K-200K
Senior Compliance Analyst
4 - 6 years
$80K-120K
Compliance Officer
2 - 4 years
$60K-80K
13+ years
$350K-500K
Performance Analytics
Relationship Management
Research
Corporate Finance
Corporate Actions
Portfolio Administration
Treasury Operations
Equity Operations
Compliance
Risk, Audit & Compliance Chief Risk Officer
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FINANCE
Banking & Financial Services Salaries 2013
Ambition – Australia Market Trends 2H 2013
Banking & Financial Services Salaries 2013 Job Title
Experience
Annual Salary Range (AU$)
Credit Risk Head of Credit Risk
10+ years
$250K-300K+
Manager
7 - 10 years
$120K-180K
Senior Analyst
4 - 6 years
$80K-120K
Analyst
2 - 4 years
$50K-80K
Operational Risk Head of Risk
10+ years
$250K-300K+
Manager
7 - 10 years
$130K-220K
Senior Analyst
4 - 6 years
$100K-140K
Analyst
2 - 4 years
$50K-80K
Market Risk Head of Risk
10+ years
$250K+
Manager
7 - 10 years
$150K-200K
Senior Analyst
4 - 6 years
$100K-150K
Analyst
2 - 4 years
$70K-100K
Audit Head of Internal Audit
10+ years
$220K-280K
Audit Manager
7 - 10 years
$130K-200K
Senior Internal Auditor
4 - 6 years
$90K-130K
Internal Auditor
2 - 4 years
$60K-90K
Accounting & Finance Salaries 2013 Job Title
Experience
Annual Salary Range (AU$)
CFO/Divisional Finance Director
15+ years
$300K+
Tax Head of Tax
10+ years
$250K+
Tax Manager
7 - 10 years
$150K-190K
Senior Tax Accountant
4 - 6 years
$90K-140K
Tax Accountant
2 - 4 years
$70K-90K
Financial Reporting Senior Finance Manager
10+ years
$170K-220K
Finance Manager
7 - 10 years
$120K-160K
Senior Accountant
4 - 6 years
$100K-120K
Accountant
2 - 4 years
$70K-100K
Management Reporting Divisional Controller
10+ years
$200K+
Planning & Analysis Manager
7 - 10 years
$150K-200K
Senior Financial Analyst
4 - 6 years
$110K-140K
Financial Analyst
2 - 4 years
$80K-110K
Product Control Head of Product Control
10+ years
$180K-240K
Manager Product Control
7 - 10 years
$140K-170K
Senior Product Control
4 - 6 years
$110K-130K
Product Control
2 - 4 years
$80K-100K
Fund Accounting
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Head of Fund Accounting
10+ years
$170K+
Senior Fund Accounting Manager
8 - 10 years
$130K-170K
Fund Accounting Manager
6 - 8 years
$110K-130K
Senior Fund Accountant
4 - 6 years
$85K-110K
Fund Accountant
2 - 4 years
$65K-85K
Industry & Commerce Salaries 2013 Job Title
Experience
Annual Salary Range (AU$)
CFO / Divisional Finance Director
15+ years
$270K+
Tax Head of Tax
10+ years
$180K-250K
Tax Manager
7 - 10 years
$140K-180K
Tax Accountant
4 - 7 years
$90K-130K
Treasury Head of Treasury
10+ years
$180K-250K
Treasury Manager
7 - 10 years
$140K-180K
Treasury Accountant
4 - 7 years
$90K-130K
Audit Head of Internal Audit
10+ years
$180K-250K
Internal Audit Manager
7 - 10 years
$150K-180K
Senior Internal Auditor
4 - 7 years
$110K-150K
Internal Auditor
2 - 4 years
$80K-110K
Financial Reporting Group Financial Controller
10+ years
$180K-250K
Finance Manager
8 - 10 years
$150K-180K
Senior Financial Accountant
5 - 8 years
$120K-140K
Financial Accountant
3 - 5 years
$80K-110K
Commercial / Management Accounting Commercial Manager / Director
10+ years
$180K-250K
Senior Management Accountant / Manager
8 - 10 years
$150K-180K
Management Accountant
5 - 8 years
$90K-140K
Cost Accountant
4 - 7 years
$70K-120K
Strategy & Planning Head of M&A
10+ years
$220K-260K
Financial Planning & Analysis Manager
8 - 10 years
$160K-210K
Senior Financial Analyst
5 - 8 years
$120K-150K
Financial Analyst
2 - 5 years
$80K-120K
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Ambition – Australia Market Trends 2H 2013 – Technology
TECHNOLOGY
TECHNOLOGY Market Overview Supply & Demand Trends & Predictions
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Ambition – Australia Market Trends 2H 2013 – Technology
Market overview It has been a mixed six months for the technology market with the initial sense of optimism which followed the Christmas period soon replaced by a drop in confidence. The pending federal election has provided market participants with excuses, while positive economic indicators are being challenged by what is actually happening on the ground. In the first quarter there were varied fortunes for the industry with positive signs including a decrease in the slide in online vacancies, which indicated that the demand trough may have been reached according to Longhaus research commentary. At the same time as there was evidence to suggest confidence of business leaders and the intention to hire ICT workers remained positive, there was a belief that in reality it was less clear-cut. The ICT labour market as measured by the ABS labour force data shows a downturn in overall ICT professional’s employment and this is supported by the number of good resources unable to identify job opportunities. There is also no evidence to suggest an increased investment in technology platforms despite some positive signs at the back end of 2012. Perhaps driven by financial results or the pending federal election, confidence in signing off new project expenditure is waning. More specifically, however, the digital market remains buoyant as organisations continue to drive a move to a more mobile workforce. Pushing the concepts of customer engagement in the online space and driving internal cost efficiencies are two of the commonly cited drivers for these digital adoption strategies.
Sydney Across the financial services space in technology, hiring activity has been largely contract driven in a bid to control fixed costs as much as possible. Whilst outsourcing continues to divide opinion on the cost/benefit analysis, a lot of back-office positions have not been refilled after headcount trimming throughout 2012. From a regulatory perspective FOFA and FATCA have been delivered and now the focus is switching to MySuper & StrongerSuper. 20
Melbourne Often mirroring the trends of the Sydney market, albeit with a smaller financial services footprint, Melbourne has retained a steady as-she-goes ICT demand for resources. Some feel overall jobs growth is now moving steadily forward as a result of positive population growth in Victorian. According to a report produced by EMDA, ICT occupation growth in the state was 8.2% in the year to February 2013. Once again optimism and confidence are the fuel for hiring activity and whilst there is certainly a lag between the former and the latter, there are at least signs of movement in the right direction.
Following the Queensland Government’s extensive job cuts in 2012, the Brisbane ICT market is now finally, though slowly, regaining its equilibrium. Many job seekers out of work for some time have now since found employment and re-entered the workforce, though not all in their ideal roles or at pre 2012 salary rates. The state government recently revealed a number of new critical projects which will have a positive effect on the need for ICT resources in the years ahead. ICT job seekers and hiring managers alike share the optimism of a slowly returning market.
Supply & Demand Applications: The demand for resources in the Applications space has held steady as many organisations use their limited resources to focus on this area rather than infrastructure projects. Whilst traditional corporate Australia has been slower to take up the digital movement, many major retailers are now pushing ahead with e-commerce strategies so they don’t lose further business to overseas markets. We have seen demand for developers with HTML5 remain strong as well as in the mobile apps development space using Android & iOS.
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TECHNOLOGY
Brisbane
Ambition – Australia Market Trends 2H 2013 – Technology
There are candidates available in the Microsoft .Net market but it’s no surprise that the very best talent is either already actively employed or getting snapped up as soon as they enter the market. MVC4, exposure to Javascript libraries such as Knockout JS and Bootstrap as well as knowledge of Agile and TDD remain high on the wanted list for employers. The supply of resources in Java based technologies is currently strong with a significant number of above average candidates unable to source work for between one and six months. Software houses, financial services and online retail and media companies have been recruiting Java more than other industry sectors.
Business Engagement: A demand led push for individuals collectively pitching themselves as “big data” specialists has been created as a result of a serious focus being taken on data analytics and business intelligence requirements. Both Business Analysts and Project Managers have experienced steady demand in the first half of 2013 though it should be noted that project completions now exceed approvals as we progress towards the second half of the year. Demand is high for process excellence and change management candidates, and good quality, certified individuals are highly regarded. Early 2013 saw high interest in creating new data roles but it appears it has only been in the second quarter that many have been able to convert interest to action. This action has seen hiring activity increase for Data Analysts, Modellers and Migration Mangers. In addition, Business Intelligence teams have seen a significant increase in attention with customer insights teams growing as they work with Sales and Marketing to enhance maximum return on investment.
Infrastructure: The demand for entry level service and help desk resources continues to bubble along despite the ongoing pressure created by outsourcing these more junior positions. As a career starter for many entering the ICT industry, the competition is perhaps more competitive than should be expected. Technical skills, customer service abilities and a desire to support users in whatever way they require are essentials for those wishing to secure a position today. Citrix and VMware professionals are in demand as virtualisation projects rank highly on the priority list of many CIOs. A growing number of managed service firms continue to move into this space, fuelling ongoing demand for resources in this space too. 22
Trends & Predictions
The majority of technology employees indicated they sometimes worry about losing their job and almost 90% indicated they believed it would be competitive to quite difficult to secure another position in the current market. There is also a sense of lack of career progression opportunities amongst the technology employees with 42% indicating they feel they cannot progress to the next level with their current company. Flexible working has definitely been a focus within ICT companies with 81% of technology respondents indicating their company offers flexible work conditions. The same number of respondents also indicated they respond to work emails from their mobile outside of work hours.
Applications: Digital and online development work continues to dominate with perhaps slightly less focus on the large scale enterprise development space. Experienced candidates at the peak of their careers are struggling against a tide of cost consciousness and a preference instead for hiring junior/mid-level developers. It is better to go with a candidate with all the skills despite the fact they might demand a higher salary than someone that might only have threequarters of them. For job seekers, the technology stack, development processes, as well as the workplace policy towards ‘flexibility’ appear to be key factors in candidates making their decisions who to join next. Those companies that are keeping development in-house and on-shore are looking only to recruit top tier resources who meet lengthy shopping list style expectations. Take as a given in today’s market that communication skills and strong business acumen are essential.
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TECHNOLOGY
Three in five (61%) of technology survey respondents indicated they expect growth within their business in the second half of the year. Whilst one in five (20%) believe that global economic conditions are impacting on their business.
Ambition – Australia Market Trends 2H 2013 – Technology
Business Engagement: Across the area we distinguish as Business Engagement, project approvals which were thought in the first quarter to be consistent with levels from 2012 are now proving to be slipping. With project completion levels increasing in the second quarter, many businesses concerned with economic confidence and the federal election, are now holding off additional commitment or sign off. For some time now the ownership of Change Management was one resting in the hands of a project manager and occasionally shared with human resources where there was deemed a significant impact upon employees. Today with a growing recognition of the importance of ‘getting change right’ the function exists as a stand-alone role and rightly so. The Data Analytics space is continuing to flourish as small to large organisations alike look for ways to elicit meaningful information from their data. Whilst Business Intelligence is perhaps not new as a concept, it’s only been in very recent times that the significance of ‘Big Data’ has come to the forefront of corporate attention.
Infrastructure: In the Infrastructure arena, many businesses are diverting dollars to those areas where they feel they can deride greater business intelligence, deliver top line revenue increases or reduce costs and expenses. Whilst those latter pursuits can be driven through outsourcing activities and streamlining infrastructure services, many have already been completed and it feels for the most part that the cycle of infrastructure reviews and refreshes are at the bottom of the trough. As we move projects to online-dynamic environments there is a requirement to develop and strengthen security protocols that protect those using the systems. In addition the need to provide effective platforms for collaboration continues to grow. Rates and salaries remain at the low end of the scale with limited market pressure to raise them in the short – mid-term. Just 10% of ICT employees surveyed received a base salary increase of 6% or more for 2013, while about one in three (32%) did not receive an increase at all. Among the changes occurring across the Infrastructure landscape, support staff are now less likely to be helping a user log on to their PC as they are to be assisting in syncing their mobile devices with an office network, managing a blog site or using an enterprise collaboration tool. Interestingly the investment cycle in infrastructure is perhaps off-peak right now and therefore the mantra of 2012 which was “more with less” has been in many cases replaced in 2013 with the alternative, “less with less”. 24
With the massive global growth of data collection, infrastructure in many organisations is under a constant and growing strain to contain things safely and securely. On top of this there are issues around how to integrate seamlessly internal and external data in ways that don’t compromise the businesses systems and that allow users easy access.
TECHNOLOGY
Whilst the high level of skills required in these areas continues to creep ever upwards, the connection between business demand and supply currently operates in a state of mismatched flux. The challenge with this approach is that by the time a problem arises involving either storage of security, arguably it’s already too late. The consequences then for a business (top and bottom line) will range from costly to very, very costly. Transformation and change work will continue to increase coupled with process improvement projects aimed at improving revenue/profitability through efficiency management. Mobile development will continue to grow from optimised websites and applications through to more complex mobile payments and the use of NFC (Near Field Communication). Changes in the way we apply for work obviously mirror our use of social media channels or technology in general. Video resumes have certainly generated some positive interest this year though they are yet to take off in a big way as participants worry about the risks associated with discrimination and filtering that may take place based on physical characteristics rather than skill level. More generically of course we are bombarded with creative content from different media sources and in this vein both employers and job seekers are looking for different ways to engage with each other.
Salary At Ambition, we believe in providing tailored, research driven information on salaries and remuneration advice. With this in mind, in the technology space where specialisation is our focus, we do not provide generic salary guides. Please contact us for a discussion on your specific needs. 25
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Ambition – Australia Market Trends 2H 2013 – Human Resources
HUMAN RESOURCES Market Overview Supply & Demand Trends & Predictions
HUMAN RESOURCES
Salary Guide
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Ambition – Australia Market Trends 2H 2013 – Human Resources
Market overview The lack of drama” associated with the global economy in comparison to recent years has resulted in a boost in confidence and movement within the Human Resources recruitment market. Organisational spend varies widely though contractor acquisition has occurred to meet project demands this year, particularly in the slightly more voluminous financial services sector. At the same time cost still remains a key factor for businesses and recruitment continues to be one of the first areas to suffer when the bottom line is under scrutiny. With strategic HR clearly a Board initiative now, companies are starting to look at different areas of their business in which they need to invest, namely restructuring, change management, employee value proposition and attracting talent. Sentiment between junior and senior level candidates is mixed with the senior end suffering long-drawn out recruitment processes whilst the junior end experiences quick turn-around with competitive forces at play. Employers feel as though they are in control when it comes to attracting quality candidates with many quite comfortable with a direct go-to-market proposition. When roles become more complex however, or the sourcing strategy requires alternative options, recruitment agencies maintain their value for money. HR remuneration in the first half of the year was quite flat with 27% of HR employees indicating they didn’t receive a salary increase and 70% indicating they didn’t receive a bonus. Interestingly, the most important factor to HR professionals is culture with 31% of respondents indicating this as their number one priority over salary at 24%. This varies across technology and finance respondents with majority (34.8%) of employees indicating salary as their priority. See table below.
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Supply & Demand The HR market remains very competitive for job seekers and this causes frustration that is hard to avoid except for those with niche, specialist skill-sets. Only 20% of HR employees and 8% of employers believe it would be easy to find a new HR job in the current market. Not surprisingly the higher demand for specialists rather than generalists is based on the expectation that specialists bring strong technical skills in addition to the expected wider behavioural competencies. Talented mid-level HR candidates are being snapped up due to gaps being created by upward mobility (organisations promoting internally). This is a positive sign though is off-set by the general over availability of senior level resource at present. As HR becomes more commercially articulate in what it can deliver to the business, candidates with clearly demonstrated business acumen are proving to be great assets. Exposure to M&A changes is a great example and will rank a candidate higher than a peer without such experience or exposure.
HUMAN RESOURCES
Highly technical HR professionals and those with strong employee relations (ER) experience are in demand, especially for businesses with a blue collar workforce (property and construction). These individuals are generally considered to add an element of strategic thinking that businesses can benefit from, particularly in matters concerning employee law and health and safety legislation.
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Ambition – Australia Market Trends 2H 2013 – Human Resources
Trends & Predictions Overall a lack of significant job churn means that the opportunities available are not necessarily open to everyone. Looking ahead we are expecting more movement in the second half of 2013 as businesses invest more in HR projects involving talent programs, leadership development and organisational change. This should create a pick-up in the senior permanent market and therefore create the churn we are missing. Interestingly, almost half (48%) of the HR employees surveyed think training and development in both leadership and management is lacking within their company. This is despite 59% believing their company invests enough in training and development as a whole. Meanwhile, approximately two in five (38%) HR employers surveyed believe their staff require leadership training more than any other form of training and development. Boards are continuing to divert attention to matters such as CSR, diversity, remuneration, succession planning, organisational strategy and cultural issues. These are key issues for leadership teams to grapple with, given the now undisputed link between their success and that of a business’s bottom line. Employers need to start diversifying their talent mix, by thinking outside of the box and not sticking to the generally accepted hiring ‘status quo’. Simply put, the fact that a candidate does not fit a certain stereotype of existing staff profiles, should not limit their potential to add valuable skills or experience to your team. HR leaders are continuing to look at opportunities in Hong Kong and Singapore as Asian HR hubs continue to grow successfully. These regions are particularly attractive to the senior level candidates who are more likely to pick up global or heads of region based positions. Approximately two in three HR employees (68%) and employers (69%) surveyed said they would move location to further their career. These figures are slightly above the national average across all three disciplines (including finance and technology).
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Once stability in the economy is reestablished, there will eventually be a focus on top-line growth rather than cost cutting, which will of course be a positive step for the HR Industry. That said it is unlikely there will be a huge shift from the current focus on costs in the next two to five years. Finally, the majority of HR respondents believe the global economic conditions are impacting on business though more than half (54%) of HR anticipate growth on the back end of the year.
Human Resources Salaries 2013 Job Title
Experience
Annual Salary Range (AU$)
Head of HR
10+ years
$200K-400K
HR Manager
6 - 10 years
$120K-150K
HR Advisor
3 - 6 years
$65K - 95K
HR Officer
2 - 4 years
$55K - 75K
HR Coordinator
2 - 4 years
$45K - 65K
Head of Learning & Development
10+ years
$150K - 250K
Learning & Development Manager
6 - 10 years
$120K - 180K
Learning & Development Coordinator
2 - 4 years
$55K - 70K
Remuneration & Benefits Manager
6 - 10 years
$110K - 170K
Remuneration & Benefits Specialist
4 - 6 years
$85K - 130K
Recruitment Manager
6 - 10 years
$110K - 160K
Recruitment Specialist
3 - 6 years
$65K - 95K
Recruitment Coordinator
2 - 4 years
$50K - 65K
Head of OH&S
10+ years
$150K - 250K
OH&S Manager
6- 10 years
$95K - 160K
OH&S Consultant
4 - 6 years
$75K - 120K
OH&S Coordinator
2- 4 years
$50K - 75K
HUMAN RESOURCES
Title
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Ambition – Australia Market Trends 2H 2013
ABOUT AMBITION Ambition is a leading global boutique recruitment business operating in a select number of specialist areas across Sydney, Parramatta, Melbourne, Brisbane, Singapore, Hong Kong and London. We access hard to find, high calibre professionals within Banking & Financial Services, Finance & Accounting, Technology and Human Resources. We believe our size is a significant differentiator in the recruitment industry. We are big enough to undertake large scale projects for our clients yet retain the soul and personality of a smaller company. We are best known for our specialisation with in-depth knowledge and expertise, well established networks and deep relationships. We are committed to building better futures for our community of clients, candidates and employees.
News and Research Ambition provide expert advice and knowledge across accounting, banking, technology and human resources in relation to recruitment, market trends, salary and general business news. As specialists we undertake research projects to better understand our community of candidates and clients. This involves various qualitative and quantitative research activities throughout the year. This data plus our knowledge enables us to better understand and comment on trends within the market giving our community expert advice and opinions to make better decisions. Please visit our website and Ambition blog for the latest news and information. www.ambition.com.au/news-and-research
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Specialist Teams Banking & Financial Services
Finance & Accounting
• Finance & Accounting
• Controllership & CFO
• Funds Management
• Treasury
• Treasury
• Tax
• Operations & Settlements
• Audit & Risk
• Risk, Audit & Compliance
• Group Accounting
• Insurance
• Financial & Management
• Broking
Reporting
• Superannuation
• Strategy & Planning
• Credit & Lending
• Commercial Finance
• Client Services
• Corporate Finance
Technology
Human Resources
• Infrastructure
• HR Generalists
• Software Development
• HR Business Partners
• IT Support
• Remuneration & Benefits
• Project Services
• Training & Development
• Business Process & Data Analysis
• Recruitment
• ERP
• OH&S
• Architecture & Strategy
• Employee Relations
• Testing & Quality Assurance • Mobile Application Development • Change & Transformation • Digital & Web Design • Business Analysis
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Ambition – Australia Market Trends 2H 2013
Community Ambition host a series of client and candidate events globally each year. These range from Women with Ambition, Sporting Ambition and Market Knowledge breakfasts to intimate dinners with CFO’s and CIO’s from multi-national businesses. All of our events aim to educate, be thought provoking and entertaining as well as provide a great platform for networking. We would love to have you at our next event, please visit our website for a list of upcoming events. www.ambition.com.au/events We are passionate about building better futures for our community and have subsequently partnered with the Beacon Foundation, a non-profit organisation working in around 130 secondary schools across Australia. Beacon Foundation help inspire and motivate students to enable the successful transition to employment, further education or training. Visit their website to find our more: www.beaconfoundation.com.au
Global Reach
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Contacts & Support Andy Cross Managing Director, Technology & Human Resources D: 02 9248 6201 E: andrew.cross@ambition.com.au Angela Goodall Director, Perth D: 08 6210 8200 E: angela.goodall@ambition.com.au David Bamford Director, Melbourne D: 03 8629 1043 E: david.bamford@ambition.com.au Ian Palmer Head of Client Engagement D: 02 9249 5058 E: ian.palmer@ambition.com.au Leisel Cunningham Director, Parramatta P: 02 9633 7301 E: l eisel.cunningham@ambition.com.au Matt Long Divisional Manager, Human Resources P: 02 9249 5007 E: matthew.long@ambition.com.au Paul Darby Managing Director, Finance, Sydney D: 02 8296 5311 E: paul.darby@ambition.com.au Paul Lyons Managing Director , Australia P: 02 9249 5022 E: paul.lyons@ambition.com.au Rory Herity Director, Brisbane D: 07 3020 0315 E: rory.herity@ambition.com.au 35
Ambition – Australia Market Trends 2H 2013
Can we assist? We would be happy to discuss any further recruitment needs. Please contact us via the details above.
Market Insights We invite you to visit our Ambition blog page for further information on market trends, business news and career advice.
Services Ambition is pleased to be able to offer the use of IKM’s testing services to job seekers and employers. These online technical tests will ascertain a user’s skill level and then provide objective comparison against the results of a global testing pool. IKM provides knowledge measurement solutions and services including assessments, certifications, software applications and consulting services. The benefits technical testing include; §§ Reduce hiring time and costs §§ Improve training ROI §§ Maximise productivity of your project teams §§ Improve skill-gap analysis workforce planning §§ Optimise career development §§ Reduce staff attrition §§ Improve corporate standards
Get Social Ambition are committed to driving innovation and have a strong social media presence allowing us to interact and engage through videos, whitepapers, surveys, webinars, trends and blogs via LinkedIn, twitter, YouTube and Facebook.
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About AccountAbility AccountAbility are Ambition’s sister company who specialise in recruiting within the accounting support and business support sectors. They have established a network of thoroughly screened, skilled and experienced candidates that are immediately available to satisfy their clients requirements. Quality aligned with speed of service is at the core of what AccountAbility can offer.
What they do AccountAbility recruits in permanent, temporary and contract staff in Sydney, Parramatta, Melbourne, Brisbane and Perth in the following functions:
Accounting Support
Business Support
• Accounts Payable*
• Executive Assistant
• Accounts Receivable*
• Personal Assistant
• Credit*
• Receptionist
• Cash Collection*
• Office Manager
• Payroll*
• Customer Service
• Assistant Accountant
• Data Entry
• Bookkeeping
• Administration Assistant
• Accounts Clerk * Up to and including management level
For more information on AccountAbility please visit their website www.accountability.com.au To download the AccountAbility Market Trends report please visit http://accountability.com.au/category/market-trends/
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“IF YOU WANT TO STAND OUT, DON’T BE DIFFERENT, BE OUTSTANDING” Meredith West
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BUILDING BETTER FUTURES. www.buildingbetterfutures.com
Sydney Lvl, 5, 55 Clarence St, Sydney NSW 2000 T: +61 2 9248 6200
Melbourne Lvl 36, 140 William St, Melbourne VIC 3000 T: +61 3 8629 1000
Brisbane Lvl 7, 410 Queen St, Brisbane QLD 4000 T: +61 7 3020 0300
Parramatta Lvl 4, 3 Horwood Pl, Parramatta NSW 2150 T: +61 2 9633 7300
Perth Lvl 24, 77 St Georges Ter, Perth WA 6000 T: +61 8 6210 8200
www.ambition.com.au