THE HUDSON REPORT: FORWARD FOCUS 2016 NAVIGATE AUSTRALIA S TALENT LANDSCAPE

Transcription

1 THE HUDSON REPORT: FORWARD FOCUS 2016 NAVIGATE AUSTRALIA S TALENT LANDSCAPE

2 FORWARD FOCUS 2016 NET HIRING INTENTIONS AT FOUR-YEAR HIGH H H H PERMANENT HIRING EXPECTATIONS: NET EFFECT (%) 25.8 Australia s net effect intention to hire stands at 23.5% for the first half of Measured by Hudson for over a decade, the net effect is calculated by taking the percentage of employers surveyed who in the next six months expect to increase permanent staff levels and subtracting the percentage of employers who expect to decrease staff levels. H H H H H H H H H H1 2016

3 AUSTRALIA: LIQUID EMPLOYMENT MARKET For the last decade, the Hudson Report has tracked intentions to hire as a status check on the Australian economy and the hiring landscape. But demand for talent is one thing, supply is another. The picture isn t quite complete without a line of sight into the people who are being hired. As a result, the Hudson Report has now been expanded to include data on employees and their career plans. Our objective: to provide employers with insights that help them attract and retain the best people in an increasingly fluid talent market. Because fluidity or liquidity as we re calling it is the name of the game in The new Hudson Report reveals a significant proportion of the Australian workforce is prepared to move this year: move jobs, move sectors and even move countries. This reflects the story playing out in the economy. Economic growth beat forecasts in the September 2015 quarter, accelerating to 2.5%, off the back of the highest exports in 15 years. 1 Business 2 and consumer 3 confidence both rose in the latter part of the year, signalling further spending and investment in hiring. While we are still working through a transition from the mining boom to Prime Minister Turnbull s ideas boom, signals indicate 2016 will see strong hiring demand and high levels of talent mobility. The war for talent never went away. It s just been in a temporary ceasefire and 2016 will be the year it ratchets up again. So how should employers prepare? Who wants to move, to where and on what terms? Who s paying what and by when? The answers all lie ahead. The data reveals hiring intentions are at a four-year high the net effect of intention to hire today stands at 23.5%. This is the largest intention to hire registered by the Hudson Report since July to December Dean Davidson Executive General Manager Hudson Australia & New Zealand 1 Reserve Bank of Australia, Economic Snapshot, 3 Dec NAB Monthly Business Survey, Dec Westpac Consumer Sentiment Bulletin 3

4 FORWARD FOCUS 2016 DAYS OF DISRUPTION 1 Volatility, uncertainty, complexity and ambiguity. This is how we work and live now. Driven by technological change and disruption unheard of since the Industrial Revolution, the implications of these characteristics on the talent landscape are significant. 4

5 TEAMS TODAY: LACKING THE COMPETENCIES TO SURVIVE & THRIVE? The No 1 competency lacking in teams across Australia today: Driving & Managing Change SOFT SKILLS MOST LACKING IN THE WORKPLACE 44% 32% 27% 21% 20% 1. DRIVING & MANAGING CHANGE 2. STAKEHOLDER ENGAGEMENT 3. COACHING & DEVELOPING OTHERS 4. RESILIENCE 5. DATA LITERACY > A period of historic change. So great is the pace of change today that organisations are describing this new world order as VUCA, or Volatility, Uncertainty, Complexity and Ambiguity. > Fluidity is the name of the game. Organisational demands are flexing up and down, job seekers behaviour and expectations are changing rapidly, and the nature of work itself is being transformed. The stakes are high and employers need people with the requisite skills to thrive in this environment. The question is, are organisations ready? While they must find and secure the best talent, they must also arm that talent with the skills to help them succeed in the ever-changing business environment. 5

6 FORWARD FOCUS A LIQUID EMPLOYMENT MARKET The market is liquid: 62% of the Australian workforce are open to new opportunities in

7 PROFESSIONALS: WHO S LOOKING FOR A NEW JOB? STATE OF JOB SEEKING IN AUSTRALIA 2016 ACTIVELY SEEKING A NEW JOB 26% 62% of Australian professionals are actively or passively seeking a job right now PASSIVELY SEEKING A NEW JOB 36% PLAN TO STAY IN CURRENT JOB 37% Additionally, almost 1 in 2 Australian professionals plan to move jobs within a year and 1 in 4 within 6 months > Don t be resigned to resignations. Be proactive in identifying pain points for your employees, empower managers to have frank career conversations, and work hard on getting your rewards and incentives right. > Plan for disruption. Build a pipeline of talent and nurture them, work on your employer branding strategy and stay in touch with your recruitment consultants because at some point, you will need to hire. 7

8 FORWARD FOCUS 2016 EMPLOYERS: WHO S ADDING HEADCOUNT? 91% 1 in 3 employers intend to add permanent headcount in H of Australian employers intend to either increase or maintain their permanent headcount in the first half of 2016 INCREASE 32% NO CHANGE 59% DECREASE 9% > The war for talent is back: are you ready? With almost 1 in 3 employers intending to grow their workforce, the market will be hot. If you haven t developed a robust talent attraction and management plan, now is the time. > Your brand is your currency. Companies will be knocking on your door for your talent. You need to be very clear on what differentiates your organisation as an employer. It s never too early to review and refresh your Employee Value Proposition to ensure it aligns with what talent wants in today s market. 8

9 EMPLOYERS: WHY THE HEADCOUNT GROWTH? Organisational growth the No 1 reason for increasing headcount TOP REASONS FOR INCREASING HEADCOUNT OUR ORGANISATION IS GROWING 50% NEW TEAM PROJECT/S 36% INCREASED WORKLOAD 30% TO DELIVER NEW STRATEGIES/PLANS 22% SPECIALIST SKILLSET/S REQUIRED 21% TOP REASONS FOR DECREASING HEADCOUNT 58% HEADCOUNT REDUCTION/BUDGET CUTS 49% ORGANISATIONAL RESTRUCTURE 11% OFFSHORING/OUTSOURCING 11% INCREASED EFFICIENCIES IN PROCESS 8% SKILLSETS NO LONGER REQUIRED > Growth is a good problem to have. The hiring intentions of Australian employers are a positive sign for the economy. While it makes talent attraction harder, growth means more potential customers and revenue for your business. The key is to plan for this uptick in hiring activity so you aren t caught short. 9

10 FORWARD FOCUS 2016 A STATE OF FLUX: EMPLOYERS HIRING ACROSS AUSTRALIA WHERE EMPLOYERS ARE ADDING PERMANENT HEADCOUNT TOP INDUSTRIES WHERE EMPLOYERS ARE ADDING PERMANENT HEADCOUNT INFORMATION TECHNOLOGY 46% PROFESSIONAL SERVICES 45% RETAIL 36% 30% WA 22% SA 36% QLD NON PROFIT 35% CONSTRUCTION/PROPERTY/ 33% ENGINEERING HEALTHCARE (EXCL GOVT) 32% FINANCIAL SERVICES/INSURANCE 32% 36% VIC 38% ACT 33% NSW EDUCATION 29% MANUFACTURING 26% GOVERNMENT 25% RESOURCES AND MINING 16% > Say goodbye to the two-speed economy. As the mining boom dials down, the demand for talent has equalised across the country. The ACT, Queensland and Victoria jostle for top spot in terms of adding headcount, while Information Technology across Australia, followed by Professional Services, is the sector leading headcount additions. 10

11 A STATE OF FLUX: PROFESSIONALS SEEKING NEW JOBS ACROSS AUSTRALIA BY LOCATION: PERCENTAGE OF RESPONDENTS ACTIVELY SEEKING JOBS BY INDUSTRY: PERCENTAGE OF RESPONDENTS ACTIVELY SEEKING JOBS MANUFACTURING 34% RESOURCES AND MINING 33% EDUCATION 33% 28% WA 26% SA 26% VIC 25% QLD 32% ACT 25% NSW NON PROFIT 31% GOVERNMENT 30% RETAIL 26% PROFESSIONAL SERVICES 26% CONSTRUCTION/PROPERTY/ 23% ENGINEERING HEALTHCARE (EXCL GOVT) 21% FINANCIAL SERVICES/INSURANCE 21% > Your best new hire may be in another industry. The hardest-hit sectors are driving employees into the job market. To take advantage, be flexible and creative about how you access this talent. Consider how to re-skill or up-skill those who have the right competencies but lack industry experience, or how you might implement peer-to-peer training programs. 11

12 FORWARD FOCUS 2016 PROFESSIONS SPOTLIGHT: LEGAL PROFESSIONALS IN DEMAND THE PROFESSIONS ADDING HEADCOUNT LEGAL 51% HUMAN RESOURCES FINANCIAL SERVICES TECHNICAL & ENGINEERING TECHNOLOGY 37% 36% 35% 35% OFFICE SUPPORT SALES, MARKETING & COMMUNICATIONS 32% 32% PUBLIC SECTOR 28% ACCOUNTING & FINANCE 22% SUPPLY CHAIN & PROCUREMENT 18% > The talent shortage in law firms continues in The drivers for this shortage are renewed business confidence and growth in transactional work combined with a lack of training in junior to mid-level positions over the last few years. Added to this is the continued growth in the international legal market which has lured talent offshore. > Use specialists to find specialists. In a tight employment market, your recruitment consultant needs to have strong networks and a nuanced understanding of the professions you are recruiting. 12

13 PROFESSIONS SPOTLIGHT: OFFICE SUPPORT ON THE MOVE THE PROFESSIONALS ACTIVELY SEEKING NEW JOBS OFFICE SUPPORT 37% PUBLIC SECTOR 36% SUPPLY CHAIN & PROCUREMENT 30% ACCOUNTING & FINANCE 27% TECHNICAL & ENGINEERING LEGAL HUMAN RESOURCES SALES, MARKETING & COMMUNICATIONS TECHNOLOGY 25% 24% 24% 23% 22% FINANCIAL SERVICES 19% > Heed the warning signs. If your organisation is reliant on those professions where up to 1 in 3 employees are looking to move, then it s time to batten down the hatches. Seek feedback through surveys and conversations about what might drive defections, while at the same time nurturing talent pools for critical roles. 13

14 FORWARD FOCUS MOBILITY: WHERE JOB SEEKERS WANT TO GO IN 2016 Australian professionals are open to moving industry and even country for the right role, with 86% saying they would move industry and 44% saying they would move country. 14

15 THE JOB SEARCH: HOW JOB SEEKERS ARE LOOKING FOR NEW ROLES WHERE AUSTRALIANS FOUND THEIR LAST/CURRENT JOB ONLINE JOB BOARD WHERE THEY LL LOOK FOR THEIR NEXT JOB 40% ONLINE JOB BOARD 86% RECRUITMENT AGENCY 24% RECRUITMENT AGENCY 62% MY PERSONAL NETWORK 15% MY PERSONAL NETWORK 48% WORD OF MOUTH 9% SPECIALIST PUBLICATION/SITE 26% DIRECT CONTACT WITH FIRM 3% DIRECT CONTACT WITH FIRM 24% GENERAL PUBLICATION/SITE 2% SOCIAL MEDIA 22% SPECIALIST PUBLICATION/SITE 2% GENERAL PUBLICATION/SITE 14% SOCIAL MEDIA 1% OTHER 2% > Job boards and recruitment agencies dominate. The desire among Australia s professionals to work with a recruiter suggests candidates appreciate the networks and the advice they provide in a competitive job market. > Fish where the fish are swimming. People are keen to use their networks, so have an incentive scheme for referrals. Leverage social media, where 1 in 5 professionals will be looking. Create a compelling online careers proposition to appeal to direct approaches. And of course, work with recruitment professionals: we re the first ones job seekers speak to when considering a move. 15

16 FORWARD FOCUS 2016 ON THE MOVE: INDUSTRIES THE TOP 10 INDUSTRIES AUSTRALIAN PROFESSIONALS WOULD JOIN FOR THE RIGHT JOB 86% of professionals would change industries for the right job. The No 1 choice? Government. GOVERNMENT 15% INFORMATION TECHNOLOGY 13% PROFESSIONAL SERVICES 11% FINANCIAL SERVICES/INSURANCE 10% ADVERTISING/MARKETING/MEDIA 7% CONSTRUCTION/PROPERTY/ENGINEERING 7% NON PROFIT 6% RESOURCES/MINING 5% EDUCATION 4% TOURISM & HOSPITALITY 4% > Why government? It s not difficult to see why Government attracts more professionals than any other industry. With a reputation for providing job security and strong benefits packages, it also offers work life balance and plenty of scope for career development. 16

17 ON THE MOVE: COUNTRIES 44% TOP 10 COUNTRIES AUSTRALIA-BASED PROFESSIONALS WOULD RELOCATE TO FOR THE RIGHT JOB of professionals would move countries for the right job 5 CANADA 2 UNITED KINGDOM IRELAND 10 9 GERMANY 1 UNITED STATES 8 FRANCE 6 UAE 7 CHINA 4 SINGAPORE 3 NEW ZEALAND > The local workforce is truly global. A global outlook, a sense of wanderlust and the ease of keeping touch through technology have made snagging an overseas job easier. If you have an international footprint, look for ways to leverage it rather than waiting for staff to approach your competitor in another market. UNITED STATES 22% UNITED KINGDOM 20% NEW ZEALAND 9% SINGAPORE 8% CANADA 6% UNITED ARAB EMIRATES 4% CHINA 2% FRANCE 2% GERMANY 2% IRELAND 1% 17

18 FORWARD FOCUS 2016 ON THE MOVE: COUNTRY BY GENDER AND GENERATION Generation X least likely to relocate 52% 40% 41% GEN Y GEN X BOOMERS Men more likely than women to relocate 51% 37% > Don t rely on the Boomers to stick around. As Baby Boomers rewrite the book on ageing, they crave change and novelty almost as much as their children. The desire for career progression, work satisfaction and a possible overseas adventure cuts across both age and gender and so should your retention strategy. 18

19 4 ATTRACT, RETAIN & ENGAGE: HOT BUTTONS FOR TALENT IN THE YEAR AHEAD The market is moving, but are employers prepared? 65% of employers do not expect to pay more for people they hire today than they did a year ago. 19

20 FORWARD FOCUS 2016 FORCES AT WORK: THE PUSH FACTOR WHY PROFESSIONALS WOULD LEAVE THEIR CURRENT ROLE BORED AND NEED A NEW CHALLENGE 22% LACK OF CAREER PROGRESSION 18% DISAPPOINTMENT WITH SALARY 16% BETTER WORK LIFE BALANCE 8% POOR RELATIONSHIP WITH MANAGER/DIRECT BOSS 6% CAREER CHANGE 5% RELOCATION 5% WORK CLOSER TO HOME 4% WORKING TOO MANY HOURS 2% LACK OF TRAINING 1% > Boredom is the enemy of retention. Our attention spans are shorter than ever even at work. Providing employees with stretch assignments, showing them a clear path for career progression, looking for internal transfer opportunities and having honest career conversations are among the most powerful ways to hang on to your talent. Salaries matter, but plenty of other factors drive decisions to stay or go. 20

21 FORCES AT WORK: THE PULL FACTOR WHAT PROFESSIONALS MOST WANT IN A NEW ROLE THE RIGHT SALARY 57% WORK LIFE BALANCE 52% CULTURAL FIT 36% CAREER PROGRESSION 34% A MANAGER I RESPECT 23% A COMPANY WHOSE VALUES ARE CLOSE TO MINE 21% GOOD BENEFITS PACKAGE 13% TRAINING OPPORTUNITIES 10% AN EMPLOYER WITH A STRONG BRAND 6% GOOD JOB TITLE 2% > Money only gets you a seat at the table. Salary is crucial when hiring, so you ll need reliable pay data to ensure you re competitive, as well as a willingness to negotiate. But there are other powerful tools in your toolbox: don t underestimate the value of bringing potential employees in to get a feel for your culture, providing flexible working conditions and mapping out a clear career path. 21

22 FORWARD FOCUS 2016 PUSH : BY DEMOGRAPHIC Very few differences on the Push factor 22% 22% BORED AND NEED A NEW CHALLENGE 1 Lack of career progression Bored and need a new challenge Bored and need a new challenge 16% 20% 2 Bored and need a new challenge Lack of career progression Disappointment with salary LACK OF CAREER PROGRESSION 3 Disappointment with salary Disappointment with salary Lack of career progression 15% 18% 22 DISAPPOINTMENT WITH SALARY

23 PULL : BY DEMOGRAPHIC Notable differences on the Pull factor 55% 60% WORK LIFE BALANCE THE RIGHT SALARY 1 The right salary The right salary Work life balance 54% 50% 2 Career progression Work life balance The right salary THE RIGHT SALARY WORK LIFE BALANCE 3 Work life balance Cultural fit Cultural fit 38% 36% CULTURAL FIT CAREER PROGRESSION 23

24 FORWARD FOCUS 2016 THE MONEY QUESTION: ARE ORGANISATIONS PREPARED? Salary is now the third highest reason an employee leaves a job and the No 1 reason they would move to a new job. Are employers listening? 51% PAY RISES AWARDED TO PROFESSIONALS LAST YEAR 43% 65% 43% 0-5% 56% 6-10% 21% of professionals have not had a pay increase in the last year YES NO 6% NA 11-15% 16% OR OVER CAN T RECALL 3% 8% 12% the proportion of employers who do not expect to pay more for talent today than they did a year ago > Employers are going broke saving money. Withholding pay rises can be a false economy, given the direct and indirect costs of replacing staff. With Australia s Consumer Price Index increasing by 1.5% over , employees who miss out on a payrise actually experience a drop in real income. As all signs point to a tighter labour market this year, it s timely to include salary increases in budget planning to ensure you remain competitive. 1 Australian Bureau of Statistics, Consumer Price Index, Sept 2015

25 PAY RISE ALTERNATIVE: THE BENEFIT IN BENEFITS IF YOU WERE GIVEN A CHOICE, WHAT WOULD YOU CONSIDER SWAPPING A PAY RISE FOR? INCREASED ANNUAL LEAVE 41% BONUSES 36% WORK LIFE BALANCE 32% INCREASED SUPERANNUATION 23% SHARES IN THE BUSINESS 19% > Money isn t everything. If your organisation really can t afford to increase salaries, there are other options that may not affect the bottom line. The key is to seek feedback: ask employees what they want. We all value different things, so consider offering a range of non-financial or longer-term rewards that will increase engagement and retention. 25

26 FORWARD FOCUS 2016 PAY RISE ALTERNATIVE: THE POWER IN PROMOTIONS PROFESSIONALS VIEWS ON PROMOTIONS 68% THE VIEW 68% of all professionals say a promotion is important or very important 71% THE IDEAL 71% expect to be promoted within 2 years 22% THE REALITY 22% have been promoted in their current role Promotions a priority for Gen Y say getting a promotion is important or very important would generally expect to be promoted within 2 years in a role 84% 82% 26% only 26% have been promoted in their current role > Gen Y are hungry for promotion. This will be a sleeper issue for employers if the job market picks up in Young people who feel overlooked will go elsewhere for the recognition they crave. Employers need to treat this risk seriously: not everyone is ready for promotion, but individuals need to know when, why and how they can create a path to promotion. 26

27 KEY TAKEOUTS Don t be complacent. If, as predicted, 1 in 3 employers increase hiring, employees will soon get the message that the market is heating up and that opportunities abound. Passive job seekers will become active, your best people will be courted by your rivals and it will be War for Talent 2.0. In 2016, smart employers will be proactive and step up their attraction, retention and engagement strategies. Don t ask, don t get. The Hudson Report shines a light on the minds of employees and what it reveals is a diversity of wants, needs and expectations. Your hiring and talent strategy needs to reflect the diversity of the workforce across genders, ages and industries. But you don t need to guess it all ask your people what they want. Use surveys, manager feedback and social media to take the pulse of the organisation. Ask for help. Mastering a talent strategy is difficult. There are so many moving parts: keeping the employees you have, building a pipeline of potential talent, then finding and selecting new people. In an unpredictable and highly liquid market, partnering with talent and recruitment experts will help you succeed in both strategy and execution. 27

28 METHODOLOGY Hudson undertook quantitative research with hiring managers and employees across Australia to analyse the talent landscape and provide insights on what employers might expect in We canvassed the views of 3,793 employers and 4,198 employees in November From these findings we developed this report a combination of the survey findings and Hudson s insights on the hiring landscape. Percentages don t always total 100% as respondents could select more than one option for certain questions. ABOUT HUDSON Hudson is a global talent solutions company with expertise in leadership and specialised recruitment, recruitment process outsourcing, talent management and contracting solutions. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. Through relationships with millions of specialised professionals globally, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. au.hudson.com AMERICAS ASIA PACIFIC EUROPE HUDSON.COM