Recruitment Trends. Employer Trends

Transcription

1 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners I am pleased to present the ITCRA ICT Employment Report for Q4 (Oct to Dec) This comprehensive new report style is a response to feedback from Insight subscribers and ITCRA Members as well as to commentary in the ITCRA Members Survey where business intelligence to assist in achieving business objectives was ranked as an important priority for more than 68% of Members and an essential resource that ITCRA provides (ITCRA Member Survey 2014) The purpose of this report is to provide an overview of the key movements and Julie Mills, ITCRA CEO data that affects the ICT industry in terms of business conditions, human capital needs, recruitment activities, and expectations. This data comes from a range of sources which is used to develop the picture; the original sources must be consulted should an indepth understanding be required. The contributions of ITCRA General, Business and Special Members who are committed to providing information to assist in understanding the employment trends in ICT is testimony to the need for such information. The trends and conclusions included in this report I believe are valuable not only to contracting and recruitment organisations but are an important discussion to initiate with hiring organisations seeking to understand the ICT employment and talent landscape. For contractors and candidates seeking roles there is valuable information to assist in mapping careers and understanding what is required of them in the current marketplace. ITCRA

2 In summary: Employers are expected to focus more during 2015 on how ICT can be a competitive advantage Australian employers are opening up applications to holders of vocational ICT qualifications for some roles New Zealand is outperforming Australia both economically and in terms of employment, and the current pattern is expected to continue Queensland is the only major ICT workplace State to be experiencing a long-term trending contraction in its average days to fill an ICT role Western Australia s economic fortunes have suffered a general downturn as a result of the mining boom winding down; however this has translated into ICT roles shifting to be highly focused as contractor positions rather than a wholesale loss of ICT roles Offering flexibility for ICT workers is popular for both permanent and contract ICT roles; however contractors are far less likely to gain other benefits It appears that the economy and labour market of Australia is softening; while in New Zealand the post-recession boost is stabilizing. The respective impact on ICT may be exacerbated by Australia s focus on manufacturing and mining, compared to New Zealand s focus on services particularly education. It could be said that organisational attitudes have shifted, in that the Global Financial Crisis is no longer on the radar and instead organisations are focusing on building newfound value rather than rebuilding. For employers, this translates into ICT being transformed from an operational or administrative function into a value-adding activity. For workers, this opens opportunities for those with demonstrated expertise in turning new technologies and approaches into profits. Recruiters should focus on probing clients on unspoken business needs so that important but unusual ICT requirements are clearly communicated in the recruitment process. I hope you find the report of interest and please contact ITCRA if you have any additional information requirements or would like to discuss the report in more detail. Julie Mills ITCRA CEO ITCRA

3 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners Strength of the Australian and New Zealand Economies Table A: Key National Statistics & Annual Australia New Zealand Population 23,694, ,555,408 2 Employed 11,679, ,375,000 4 Participation Rate 64.8 % % 4 Unemployed 759, ,000 4 Unemployment Rate 6.1 % % 4 Underutilisation (Aus)/ Underemployment (NZ) Rate 15.0 % % 4 Skilled Vacancies Trend (annualized) 10.0 % % 6 ICT Professionals Vacancies Trend (annualized) 8.7 % % 6 NB: Population estimated as at 30 December 2014 on 6 February 2015 Figures Seasonally Adjusted where available, otherwise Original or Trend Sources: Australian Bureau of Statistics Population Clock ; Statistics New Zealand Population Clock ; Australian Bureau of Statistics Labour Force ; Statistics New Zealand Household Labour Force Survey ; Australian Department of Employment Vacancy Report ; Department of Labour Jobs Online See reference list for full details. Quarterly GDP Growth & Future Trend 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Q Q Q Q Q Q Q Q (est) Australia New Zealand Linear (Australia) Linear (New Zealand) Source: Australian Bureau of Statistics (2014a: 17); Statistics New Zealand (2014: 28). Seasonally Ajusted Australia s Department of Employment s Skilled Vacancies Index for December 2014 found that internet vacancies declined by 1.0 percent in trend in December, driven primarily by a 2.9 percent decrease in Western Australia. New Zealand s Department of Labour s Jobs Online Report for December 2014 found that vacancies grew by 0.8 percent in the month. The Index Australian economic conditions are stabilising Western Australia is flailing New Zealand economic conditions are healthy ITCRA

4 grew overall by 7.4 percent over the year, led by construction and engineering; hospitality and tourism; and education and training fields. Information technology grew by 1.1 percent over the year which was the lowest of all industries. The Australian Chamber of Commerce and Industry s Business Expectations Survey for December 2014 reports that its expected Economic Performance Index is down 2.5 points to General Business Conditions rose for the eighth quarter and is now just under neutral. Sales Revenue has turned positive after three and a half years at below neutral. In terms of the employment market, ACCI finds that employment has risen slightly but is still in negative territory. Overtime Utilisation rose for the fifth consecutive quarter but remains negative. Wage Growth General Business Conditions Selected ACCI Indices Sales Revenue Wage Growth Dec-13 Sep-14 Dec-14 Profits Source: Selected ACCI Indices from Australian Chamber of Commerce and Industry (2014) rose for the second consecutive quarter after falling for almost two years. The Non-Wage Labour Costs fell for the third consecutive quarter. Employment Indexes were negative for small and medium business, but net positive for large businesses. They assess that Businesses are at least starting to soak up spare capacity. ITCRA

5 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners Status of the General Labour Market Quarterly Under-Employment & Future Trend 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q Q Q Q Q Q Q Q (est) Australia New Zealand Linear (Australia) Linear (New Zealand) Source: Australian Bureau of Statistics (2014b: 26); Statistics New Zealand (2015) Table 11. The Australian Bureau of Statistics Labour Force Report for December 2014 shows that in trend terms, employment increased by 1.4 percent during the year, unemployment increased by 7.7 percent, and the participation rate remained unchanged from 64.7 percent. Statistics New Zealand s Labour Market Statistics for the December 2014 quarter reports that in trend terms, filled jobs increased by 2.6 percent during the year. Seasonally adjusted, the unemployment rate dropped 0.3 percent over the year and the labour force participation rate jumped 0.9 percent in the year to 69.7 percent, the highest participation rate on record. Research by IT recruiter Greythorn (2014) found that key skills and experience for IT talent over the coming year will focus on cloud computing, big data, and mobility; business intelligence has come into the list as the fourth highest priority, dislodging security skills which has dropped from fourth to ninth place. This is supported by research by Hays (2014) which reported that it is finding a range of talent trends that will impact directly on Information and Communications Technologies as well as the way businesses recruit talent. ITCRA

6 Top Talent that will influence the ICT labour market include: Mobile Optimisation Big Data in the workplace Super-skills Shortage focused on highly-skilled specialists Convergence of IT and marketing Recruitment Process Outsourcing Market Strength & Vacancies Manpower Hiring Intentions by Current Headcount Australian Organisations New Zealand Organisations Under to to or more Manpower s Employment Outlook Survey Australia reports that 19 percent of Australian employers expect to increase staffing, and only 12 percent expect to decrease their staffing levels. Small size organisations with between ten and 49 staff appear to be the most likely to increase staff, with 22 percent intending to increase headcount and only ten percent intending to decrease headcount. Key industries on Seasonally Adjusted Outlooks are Finance, Insurance and Real Estate with a net 15 percent increase; Public Administration and Education with a net 11 percent increase; and Services with a net 9 percent increase. Source: Manpower Hiring Intentions from Manpower (2015) The Employment Outlook Survey New Zealand report found that 31 percent of New Zealand employers intend to increase headcount, and only 6 percent intend to decrease. Seasonally adjusted, this translates to a 28 percent net employers intending to increase headcount which is the strongest recorded since the second quarter of In New Zealand, medium size businesses with between 50 and 249 employees have the strongest intention to increase headcount. The three key industries are Mining and Construction on net 41 percent; Transportation and Utilities with net 31 percent; and Wholesale and retail Trade on net 30 percent. Australian businesses intend to increase headcount, but the main contingent will be the smaller operators New Zealand businesses have a stronger intention and the main contingent are well-established operators ITCRA

7 Market Activity & Advertisements SEEK Employment Index & Trend Q Q Q Q Q Q Q Q Australia New Zealand Linear (Australia) Linear (New Zealand) Source: SEEK Australia (2014); SEEK New Zealand (2014) ANZ Research s Job Advertising Index reports that job ads recorded their seventh consecutive rise in seasonally adjusted terms, trending higher for 14 months, and up 11.4 percent over the year. Internet job ads increased 12.3 percent over the year, while newspapers have been recording declines over the year but still rose 3.0 percent in December compared to November % SEEK Annual Job Posting Movement 12.00% 8.00% 4.00% 0.00% ACT NSW NT QLD SA TAS VIC WA NZ -4.00% -8.00% Source: SEEK Annual Job Posting Movement from SEEK (2014) SEEK Employment Index December 2014 Data. SEEK s new job ads data for Australia shows that 2014 was a seven percent improvement on the previous year, yet with state-by-state differences in fortune. Western Australia fared the worst, dropping 3.9 percentage points over the year, while Tasmania was the strongest performer, increasing by 13.6 percentage points. For ICT s main markets, ACT increased 1.6 percent, Queensland 3.2 percent, Victoria 10.6 percent, and New South Wales 11.9 percent. ITCRA

8 In New Zealand, SEEK s New Zealand Employment Indicators Report finds that there has been continuing growth through the year, albeit slower than the surge in Job ad placement was 8.8 percent greater in December 2014 than a year earlier. SEEK reports that there is a growth in the average number of applications per job ad, showing stronger interest in workforce participation. However, there has been a lull in Wellington s jobs market, while Auckland s has surged ahead. Job ad activity in Australia has been improving for several months Victoria, NSW, and Tasmania are the best recovering The focus is on staff that can improve business value and profitability Recruitment firm Hudson reports that Hiring managers are feeling optimistic with 18.7% having an intention to increase headcount, the highest sentiment since Q2 2012, with the focus on Driving growth and adding tangible value. Hudson state that ICT is fast becoming the dominant force behind the contracting market in Australia in that the ICT profession has a net 23.7 percent of employers intending to increase headcount. ITCRA

9 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners Recruitment & Placements SkillsMatch Average Days to Fill by State & Trend (est) Australian Capital Territory New South Wales Queensland South Australia Victoria Western Australia Source: ITCRA ITCRA s SkillsMatch program found that during the quarter, ACT, New South Wales and Victoria comprised the bulk of the permanent ICT recruitment market. In terms of contracting, New South Wales and Victoria comprised the bulk of the recruitment market, with Queensland and ACT forming a secondary bloc. Western Australia had an extremely concentrated ICT contractor market with only five percent of ICT jobs secured in the period being permanent. ITCRA

10 Source: SkillsMatch Statistical Tables for the Q4 (Oct Dec 2014) Average days to fill for contract placements ranged from 20 days for Western Australia and South Australia, to 45 days for the ACT. Permanent placements took an average from 34 days for Western Australia to 83 days for the ACT. The premium for placement days to fill ranged from 1.3 times longer to place a permanent, up to 3.4 times as long to place a permanent than a contractor in South Australia. Average hourly rates i by State ranged from a low of $51.58 per hour for permanents in South Australia, to $ per hour for contractors in Victoria. The premium for hiring contractors over permanents ranged from thirty percent extra in South Australia, to 120 percent extra in Victoria. ITCRA

11 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners BurningGlass ICT Job Ads Index & Trend Q Q Q Q Q Q Q Q (est) Australia New Zealand Linear (Australia) Linear (New Zealand) Source: BurningGlass i Australian acceptance of Certificates (I-IV) are stronger New Zealand s focus on Degrees and Postgraduates is very high Australian desire for experience is slightly stronger Points to ICT markets being different in the two countries Data from BurningGlass shows that recruiters continue to look for highly qualified applicants in preference to highly-experienced applicants, with Degrees continuing to be a key requirement while only a small proportion of roles require more than seven years experience. Key hiring sectors are professional, scientific and technical services; public administration and safety; and financial and insurance services. Australia and New Zealand continue to diverge with Australia focussed on mining and manufacturing, while New Zealand focuses on healthcare and education. Governments in both countries continue to be large employers of ICT skills. PeopleBank s ICT Salary & Employment Index reports that the priority for the quarter has been on ICT roles that improve capacity to deliver products, services, and customer contact primarily through digital channels. This sentiment is echoed by other reports reviewed for this overview which suggest that there is a renewed focus on ICT, particularly in terms of where it can be utilised to improve business strength, rather than on its use for primarily administrative purposes. ITCRA

12 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners SkillsMatch ICT Placement Value Changes 80% 60% 40% 20% 0% -20% -40% Australian Capital Territory New South Wales Queensland South Australia Victoria Western Australia Permanent Contract Source: ITCRA ii Flexible work and telecommuting are popular for ICT workers Bonus schemes are included in many but is there payout? We do not yet know LiveSalary data suggests that flexibility is a key benefit being provided to new hires in ICT, with flexible working hours and offer both permanent and contract-based hires. It should be noted that bonuses are Source: LiveSalary Key Permanent Benefits data from popular components of ICT roles but that there appears to be a lack of bonus payouts; the reason for this is unknown at this time. Overall, the inclusion of benefits is far higher for permanent than contracted roles. Table A: LiveSalary IT & Telecommunications Roles Reported Averages and Benefits Fulltime Permanent Contract Mean Base Salary $ 90,000 ($ 54 per hour equiv.) $ 85 per hour Upper Quartile $ 110,500 ($ 66 per hour equiv.) $ 110 per hour Lower Quartile $ 65,000 ($ 39 per hour equiv.) $ 55 per hour Top Benefits Benefit Percent Benefit Percent Mobile Phone/Allowance 24 Telecommuting 12 Flexible Working Hours 21 Flexible Working Hours 11 Telecommuting 20 Car Park 5 Car Park 14 Overtime Payments 4 Company Paid Training 14 Mobile Phone/Allowance 2 Source: LiveSalary (2015) Reported Salary Data. Online: ITCRA

13 Key Findings Economic Labour Market Recruitment Employer Remuneration Employee References & Partners Employee Intentions & Turnover Turnover intentions seem to have stabilised in Australia New Zealand intentions slumped but returned to previous levels Intentions on a par with global workforce Actual turnover has risen but appears to be settling Randstad s Work Monitor report finds that globally, mobility intentions have remained stable at an index level of 109, having reached 108 in mid-2012 and having been fluctuating between 108 and 110 since then Randstad Mobility Index Jan-12 Jan-13 Jan-14 Global Australia New Zealand Source: Randstad Mobility Index from Randstad (2014) Randstad Workmonitor Employee Outlook for 2015 Report. (index = 100 at 2010). Australian and New Zealand mobility intentions are at 107 and 108 respectively; having made slight jumps up during Particularly New Zealand, which went from a low of 99 in mid-2013 and 101 in mid Actual job change iii has been climbing slowly from 22 percent at the start of 2014 to 24 percent, before settling back to 23 percent. Change of employer in the most recent Monitor was 19 percent in Australia and 13 percent in New Zealand. Six percent of Australians and New Zealanders reported actively applying for new jobs, whilst 26 percent reported being very satisfied in general about working with their current employer. ITCRA

14 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners Appendix One: SkillsMatch Statistical Tables for the Q4 (Oct Dec 2014) Table A: State By State Ratios of Permanent to Contract ICT Roles Percentage Permanent Percentage Contract Australian Capital Territory New South Wales Queensland 6 94 South Australia Victoria Western Australia 5 95 Australia-wide Table B: Proportional Percentage of ICT Roles by Permanent or Contract and by State All Permanent All Contract All Jobs Australian Capital Territory New South Wales Queensland South Australia Victoria Western Australia Australia-wide Table C: Average Days-To-Fill ICT Roles by Permanent or Contract and by State Permanent Contract Australian Capital Territory New South Wales Queensland South Australia Victoria Western Australia Table D: Hourly Rates in Australian Dollars for ICT Roles by Permanent or Contract and by State Permanent Contract Australian Capital Territory New South Wales Queensland South Australia Victoria Western Australia ITCRA

15 Table E: Top Recruiter-Sourced ICT Roles by Permanent and Contract Placement Permanent Contract Analyst Programmer Project Manager Business Analyst Business Analyst Project Manager Consultant Help Desk Analyst Programmer Network Designer Help Desk Consultant Desktop/PC Support Desktop Support Tester IT Manager Network Engineer Systems Engineer Project Coordinator Appendix Two: BurningGlass Statistical Tables for the Q4 (Oct Dec 2014) Table A: BurningGlass Top ICT Occupations Australia New Zealand Role Percentage Role Percentage Net Developer 1.65 Net Developer 2.43 Solutions Architect 1.64 Systems Engineer 2.26 Java Software Developer 1.58 Java Software Developer 2.26 Systems Engineer 1.53 Solutions Architect 2.19 Network Engineer 1.17 Network Engineer 1.58 Software Development Engineer 1.17 Software Developer 1.31 Web Developer 1.13 Software Development Engineer 1.21 Systems Administrator 1.10 C++ Developer 0.98 Front End Developer 1.05 Web Developer 0.88 Business Analyst 0.87 Systems Administrator 0.74 Table B: BurningGlass Distribution of Education for ICT Roles by Percentage Australia New Zealand Postgraduate Degrees Specialist, Bachelors or Honours Degrees Diplomas and Associate Degrees Certificates (levels I-IV) High School Table C: BurningGlass Distribution of Experience for ICT Roles by Percentage Australia New Zealand More than 7 years up to 7 years up to 4 years ITCRA

16 Table D: BurningGlass Top Five ICT Skills Australia New Zealand SQL SQL JavaScript JavaScript Java.NET Programming.NET Programming Java Microsoft C# C# Table E: BurningGlass Fifteen Key Soft Skills for ICT Roles in Australia & New Zealand Skill Percentage of ads that mention the skill Communication skills 43 Problem solving 15 Writing 15 Training 14 Planning 13 Project management 12 Microsoft Windows 11 Troubleshooting 9 Detail-oriented 8 Customer service 7 Building effective relationships 7 Microsoft Excel 7 Quality assurance and control 7 Research 6 Leadership 6 Table F: BurningGlass Top Five Hiring Sectors for ICT Roles Australia New Zealand Professional, Scientific and Technical Services Professional, Scientific and Technical Services Public Administration and Safety Public Administration and Safety Financial and Insurance Services Financial and Insurance Services Mining Health Care and Social Assistance Manufacturing Education and Training Table G: BurningGlass Top Five Hiring Organisations for ICT Roles Australia New Zealand CGI Technologies and Solutions Datacom group Limited Government of Queensland New Zealand Parliament New South Wales Government Ministry of Social Development Accenture Fujitsu Limited Commonwealth Bank of Australia Fonterra Cooperative Group Limited ITCRA

17 Executive Summary Economic Labour Market Recruitment Employer Remuneration Employee References & Partners ANZ Banking Group (2015) Seventh Consecutive Rise in Job Advertising Media Release. Online: Australian Bureau of Statistics (2014a) Australian National Accounts: National Income, Expenditure and Product Cat. No Online: D2B0D/$File/52060_sep% pdf Australian Bureau of Statistics (2014b) Labour Force: Australia Cat. No Online: D5523/$File/62020_dec% pdf Australian Bureau of Statistics Population Clock. Webpage. Online: Australian Chamber of Commerce and Industry (2014) ACCI Business Expectations Survey Issue 79, December Quarter Online: 4bcf-9277-e77fb871400e/ACCI-Business-Expectations-Survey---Dec-Quarter-20.as Australian Department of Employment (2014) Vacancy Report December 2014 Online: BurningGlass (2015) Job Advertisement Data. Greythorn (2014) Top 10 IT Skills for 2015 Media Release. Online: Hays (2014) Top 10 Talent for 2015: What is driving job creation Media Release. Online: Hudson (2015) Australian Hiring Expectations Quarter 1, 2015 Report. Online: Information Technology Contractors and Recruiters Association (2015) SkillsMatch Data. LiveSalary (2015) Reported Salary Data. Online: Manpower (2015) Manpower Employment Outlook Survey Q1 2015: Australia Report. Online: Manpower (2015) Manpower Employment Outlook Survey Q1 2015: New Zealand Report. Online: New Zealand Department of Labour (2015) Jobs Online Monthly Report December 2014 Online: ITCRA

18 PeopleBank (2014) ICT Salary & Employment Index: Summer 2014 Online: Employment-Index-Summer-2014.pdf Randstad (2014) Randstad Workmonitor Employee Outlook for 2015 Report. Online: SEEK Australia (2014) SEEK Employment Index December 2014 Data. Online: SEEK New Zealand (2014) SEEK NZ Employment Indicators, December 2014 Commentary Report. Online: Statistics New Zealand (2014) Gross Domestic Product: September 2014 Quarter Published 18 December Online: /HOTPSep14qtr/GrossDomesticProductSep14qtrHOTP.pdf Statistics New Zealand (2015) Labour Market Statistics: December 2014 Quarter Online: /HOTPDec14qtr/LabourMarketStatisticsDec14qtrHOTP.pdf Statistics New Zealand Population Clock Webpage. Online: ITCRA

19 Partners ITCRA is the professional body for the ICT contracting and recruitment sector in Australia and New Zealand. ITCRA Members supply and/or manage white collar professionals on behalf of their clients for permanent and flexible roles, including contracting, across Australia and New Zealand as well as multiple international markets. Contact ITCRA P: E: carmel@itcra.com W: SkillsMatch is a monthly reporting program of data from ITCRA Members systems that includes: position title and requirements, available positions, salaries offered, placements made and time-tofill for ICT contract and permanent roles. The data is released to ITCRA by participating Members on a set day each month so ongoing analysis of market trends is available. With more than ten years of information available, SkillsMatch is a unique, comprehensive dataset of ICT recruitment and employment trends. Contributing Members: Ambition Technology Aurec Clarius Group Limited Clicks IT Recruitment Data#3 Limited Davidson Technology inc ITCOM Enterprise IT Resources Finite IT Recruitment Solutions Greythorn Pty Ltd Manpower Group Paxus Australia Ltd Peoplebank Australia Ltd RMArecruit Pty Ltd Talent International Whizdom Pty Ltd Burning Glass tools and data are playing a growing role in informing conversations on workforce and education. By using an advanced analytic application recruiters, researchers, policy makers, educators and employers can have a real time awareness into labour market demand that highlights skills, knowledge, experience, and education in demand as well as industries and occupations. LiveSalary leverages the collective power of employees online to produce a live, user generated and freely assessable online salary database. LiveSalary is a free community-based website where people exchange salary data. The site contains REAL salaries entered by employees FOR employees. ITCRA

20 This report is proudly sponsored by The IT Institute who brings together TAFE, SWSI and Course You Can, to provide a pathway to an in-demand IT career. i Comparative hourly rates calculated as dividing permanent annual salaries by 1,672 hours, representing 44 weeks Notes per year at 38 hours per week. This takes into account 52 weeks per year less an approximated hourly earnings of permanent entitlements represented by four weeks annual leave, two week statutory holidays, one week sick leave, and one week long service leave. ii The change in value of recruitment activity shows the percentage shift (up or down) in the average remuneration of placements in the period as compared to the preceding period. This may indicate a range of factors including (but not limited to) the number of placements, value of placements, types of roles, and value of the appointees into those roles. It thus represents the overall shift in value and market strength of ICT work activity. iii Randstad reported that actual job change was measured as whether the respondent had changed their job in the last six months. ITCRA