The Market Outlook

A National Perspective

In terms of the big picture, even though the economy is patchy with some sectors doing well and others less so, the overall employment market remains the single biggest challenge for CEO's. Over the past 6 months, two well regarded independent surveys of Directors and CEO's came up with the same result. The most recent survey by the Australian Institute of Company Directors, noted skilled labour shortages as the primary economic challenge. It highlighted real concern about wage demands and subsequent inflationary pressures. This concern has had flow effects and has created a call for action in many large organisations, particularly in the more resource driven states where we have seen with the creation of many new Workforce Planning and Strategic Talent roles to help meet future demands and fuel continued growth. Clearly, organisations that are taking a sophisticated HR/OD approach with a focus on engagement and talent development will be ahead of the curve.

Our clients across the three states are diverse and represent all industry sectors from large IT&T's, Financial Services, Sales & Marketing driven Pharmaceutical businesses, local & multinational FMCG's, Mining, Oil & Gas, Engineering, Construction, Retail, Travel & Tourism, State & Federal Government organisations to SME's looking to start their HR functions. Each state has a different industry mix and this drives the demand for slightly different skills sets. Naturally, we see stronger demand for IR expertise and capability both in Queensland and Victoria and have seen a real willingness of clients to relocate candidates with this skill set to fill critical roles.

Largest demand this financial year for HR talent in NSW and Victoria has been in Financial Services, Energy and FMCG. While the Queensland HR market has rested firmly on the shoulders of Mining, Oil & Gas and Engineering.

I look forward to working across our three offices to help ensure we bring a national approach to our clients and candidates ensuring we facilitate the movement of top HR talent between the three states and internationally through our Global network.

Kathy Fries-Wilson
Director of Client Engagement

Melbourne HR Market Summary

As we review the final months of the financial year and look forward to what is ahead of us in 2011, the two speed economy that was predicted in 2010 has definitely taken hold. With renewed concerns about the economic conditions in Europe and the US, slowing GDP in China and the full impact of the carbon tax repercussions, the Victorian market is still cautious.

However all these issues aside, talent is key to driving organizational success and with our focus so clear in this area we have seen steady growth in the HR recruitment market.

How has the HR market fared?

We anticipated last report that the flow on effect from multiple recruitment team restructures during the GFC period has left the recruitment space candidate short. This prediction is definitely taking hold and causing some major issues for organizations, especially those trying to secure contract resource for specific projects. We have witnessed many Recruitment Manager role's sitting unfilled for a number of months as a search is undertaken both state and national wide.

Like our colleagues in Queensland the resource and heavy industry sector experience continues to be highly sought after as does strong blue chip corporate experience, particularly in highly complex matrix organizational structures. We have seen a number of candidates relocating from interstate or internationally to fill this demand.

There is finally some movement at the executive and director level within the finance, professional services, logistics and engineering sectors.

Where we have seen the greatest amount of growth however is in the interim/contract market. We commented last update that for all the 'talk of talent' we hadn't seen as many learning roles. This situation made an abrupt U-turn a few months ago! Demand for Instructional Designers is out stripping supply and organizations are going to have to think completely outside the box in how they engage with these contractors. Flowing on from that, the number of contract roles for learning and development managers, organizational change consultants and talent and engagement managers hasn't been this high since 2006/2007.

And finally, remuneration and benefits, role numbers have been steady. It remains challenging to secure mid level talent and we expect this to continue until us, the broader HR community addresses how we can develop a sustainable future talent pipeline.

So overall we continue to be optimistic about the HR market in Victoria. A clear indicator of our confidence in the market is growth of The Next Step team in Victoria to meet the demand for our services. As well as continuing to provide forums for the HR community to network and hear industry experts speak.

Should you wish to discuss any of these topics in more depth, or how The Next Step can support your business in 2011 please do not hesitate to contact us.

Jo Skipper
Director Melbourne

Queensland HR Market Summary

When we were writing our HR Market Predictions 2011 in December last year, we certainly weren't thinking of floods and cyclones: so the start of 2011 was a real rollercoaster for many people both domestically and professionally. Following those events and the fantastic efforts of Queenslanders to get back on their feet and help their neighbours and communities, there was a little uncertainty as to how these natural disasters would affect both businesses and the recruitment market. This quarterly summary will give you views on how we see 2011 developing.

Some Economic Issues

As we've watched the Australian Dollar go from strength to strength we have seen the economic impact having both positive and negative effects. With resources prices climbing to feed the hyper-growth markets of China, India and SE Asia, the resource companies are investing heavily in exploration and the development of new assets. Combined with the massive investment in the Coal Seam Gas sector, there is certainly strong and long term investment occurring in Queensland.

The flip side of a strong dollar is the continued lack of attractiveness of Australia as a holiday destination for international travellers, particularly those from Europe and the US, whilst strengthening the hand of Australian tourists to travel abroad. It is impossible to fail to see the advertising campaigns encouraging Australians to holiday in their own back yard.

The two-speed economy of 2010 is still prevalent in Queensland this year. The financial distress of such well known names as Colorado and Borders is testament that all is not well in our shopping centres. Prudence is obviously still a watch word for many households, particularly with the threat of interest rate hikes to combat inflationary pressure.

How has the HR market fared?

Mainly as a result of the continued growth and investment in the resources sector, the market has been reasonably buoyant and is gathering momentum. Returning to work post-floods we could have expected a slow pick up but quite the reverse was true. February and March has seen a steady growth in briefs to the business with our clients looking for talent in many areas of HR. Whilst demand for generalists has remained strong, we are now seeing more demand for ER/IR specialists particularly those with direct experience of negotiating under the Fair Work Act. A number of larger clients are restructuring their HR teams to meet the growth demands of the business moving forward, and this is again creating a demand for talent. The Queensland market, being of a modest size, is not always able to meet this demand and we continue to meet and move people interstate to satisfy the demand for talent. Candidates from Victoria and WA represent the majority of the relocations.

Similarly to 2010, we are still not seeing great demand for Learning professionals, but there is some life returning to this specialisation and we expect it to grow modestly throughout the year.

So overall we are optimistic about the HR market in Queensland and expect there to be significant and growing opportunities as the year progresses. Whilst the resources sector is providing the catalyst for a lot of this growth, the related industries that serve the sector are also seeing opportunities for growth as well.

John Baker
Brisbane Director

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