Robert Walters Releases Quarter Two 2011 Employment Market Updates
New Zealand
TEAM FIT IS PARAMOUNT POST-RECESSION
To complement the Robert Walters Global Salary Survey published every January, the New Zealand offices of global recruitment firm Robert Walters today released their Employment Market Updates for the second quarter of 2011.
These Market Updates provide an in-depth analysis of market changes, hiring trends and salary fluctuations noted in quarter two of 2011, for both permanent and contract workers across the Accounting & Finance; Banking & Financial Services; Human Resources; Information Technology; Legal; Procurement & Supply Chain, Sales & Marketing; and Secretarial & Business Support Sectors within the Auckland and Wellington markets.
Richard Manthel, Managing Director of Robert Walters New Zealand commented:
“From an employment perspective, the dust has finally settled in the aftermath of the recession and businesses are beginning to actively recruit rather than simply replace roles vacated through natural attrition. The conservative approach businesses have adopted in the last few years is understandably still quite ingrained and above all, companies need to looking after their existing staff by ensuring that new hires fit well with the existing team. As conditions improve, we are speaking to an awful lot of candidates out in the market who are seeking some form of reparation for the increased workloads and the salary cuts they endured during the downturn and they will not hesitate to move for a better opportunity now. Therefore, employers who do not place significant emphasis on their internal culture and retention strategies risk losing key employees.”
He continued:
“The tragic events in Christchurch resulted in many businesses struggling to find experienced claims officers to accommodate the increase in workload after the earthquakes and we do expect this to have a knock-on effect on the rest of the insurance industry throughout the year.
A good indicator of improving economic confidence is the increased flow of candidates leaving New Zealand to undertake their OE in recent months and this has created a real requirement for accountants and lawyers with 3-5 years’ experience. We have also seen a strong flow of high calibre candidates returning to New Zealand from overseas, particularly at the senior end of the market and this is expected to continue throughout the remainder of the year, prompted in part by the Rugby World Cup in September.
With cost-cutting measures in the Public Sector announced in the budget, pre-election jitters and the rebuilding of Christchurch, we anticipate that the market will continue to experience peaks and troughs for the remainder of the year. Ultimately, shortages will continue to increase across all of our disciplines and that this will drive up market rates if not by the end of the year then certainly heading into 2012.”
A comprehensive selection of local and international highlights is contained below.
DOWNLOAD THE MARKET UPDATES AND VIEW ACCOMPANYING MARKET UPDATE VIDEOS
Click on the following link to view in-depth video interviews as Robert Walters Managers discuss current market conditions; and to download the divisional market updates in their entirety: :
http://www.robertwalters.co.nz/employment-trends.html
For further information on employment trends, or to arrange an interview, please contact:
Lucy Nichols, Marketing & International Development Manager
Tel: +64 (0)9 302 2280
Mob: +21 583 238
Email: lucy.nichols@robertwalters.co.nz
About Robert Walters
Robert Walters plc is one of the world’s leading specialist professional recruitment consultancies and focuses on placing high calibre professionals into permanent, contract and temporary positions at all levels of seniority. The New Zealand business recruits across the Accountancy and Finance, Banking, HR, IT, Legal: Procurement & Supply Chain, Sales & Marketing and Secretarial & Business Support fields. Established in 1985 the Group has built a global presence of 45 offices spanning 21 countries.
Robert Walters’ Quarter Two Market Updates
Key New Zealand Findings
Key trends emerging from these Employment Market Updates within specific disciplines include:
Accounting & Finance
• After a buoyant first quarter, the second quarter heralded a slow down in workflow
• Quarter two saw a significant reduction in the number of available quality candidates.
• Intermediate to senior level candidates were in high demand within manufacturing, FMCG, telco’s and infrastructure
• Permanent salaries remained static with an increase in contractor hourly rates seen across all levels
• We anticipate that the market will improve and candidates will become less hesitant about pursuing new opportunities, resulting in increased recruitment activity throughout the second half of the year
Rebecca Sanderson, Manager of Robert Walters’ Contract Finance division in Auckland commented:
“The finance divisions in both the Auckland & Wellington markets experienced a significant slowdown in workflow in the second quarter of 2011 after a buoyant quarter one. In the Private Sector, companies were very mindful of the still precarious global economic conditions and so trod carefully when making new hires.”
Liam Brodie, Manager of Robert Walters’ Finance division in Wellington commented:
“Within the permanent market we have seen two very different markets. The Private Sector and SOEs have been particularly active given their relatively small representation in Wellington, largely due to growth and the resurgence in popularity of the OE for accountants. The Public Sector has seen less activity, primarily due to external factors including pressure on expenditure and pre-election jitters.”
Banking & Financial Services
• After a buoyant first quarter, the Banking & Financial Services recruitment sector flattened and the conservative approach seen in 2010 began to creep back into the market
• Clients within the Banking & Financial Services industry largely recruited business critical roles which were mostly at the more senior end of the market in specialist areas
• The contract market was more buoyant as businesses opted for a short-term solution without committing to permanent headcount
• Clients deemed team fit more important than technical skills in many cases
• There was a shortage of strong qualified financial and management accountants in quarter two
Michelle Miller, Senior Consultant with Robert Walters’ Banking & Financial Services in Auckland division commented:
“Salaries have remained steady within the Banking & Financial Services sector, however we saw that clients were happy to negotiate and show a level of commitment to potential candidates in order to get the right person on board.”
Human Resources
• We are seeing a continued increase in demand for specialist roles as well as generalist HR roles
• HR is now seen as instrumental in helping a business’s strategic growth by assisting with employee engagement and succession planning
• Candidates are open to new opportunities, however are still cautious about their next move
• Permanent salaries in the HR space have remained largely static
• Increases have been seen in specialist contract roles
• We expect to see demand for HR professionals grow as businesses focus on strategy around future business growth and development.
Kim Nicholas, a consultant with Robert Walters’ HR division in Auckland commented:
“In the light of the improved economic conditions, businesses are increasingly looking to HR for assistance with strategic growth, including employee engagement and succession planning, as well as providing more training to retain their talented staff.
Over the last 12 months, the HR recruitment market has experienced a significant upturn and became noticeably more buoyant at the start of this year. In particular, Quarter Two saw a continued increase in demand, with roles recruited at all levels from HR coordination through to HR managers and business partners in large organisations. We also saw a continued increase in demand for specialist roles including in-house recruitment, organisational development, learning & development and training, as well as health & safety.”
Kate Murdoch, senior HR recruitment consultant with Robert Walters’ HR division in Wellington commented:
“The HR function will continue to play a critical part in change management as organisations across the Public Sector are merged together and private organisations continue to attract HR professionals with strong business partnering and advisory skills.”
Information Technology
• Contract resource requirements dropped in Auckland and we saw a greater demand for permanent staff. In Wellington, the contract market continued to grow whereas the permanent market lacked consistency
• The IT market remained buoyant across a range of organisations however we saw particularly high demand within the financial services and insurance sectors
• Roles within the technical support, engineering and administration area remained in high demand
• We continued to see little movement at senior management level
• In Auckland, we believe growth will continue in quarter three, particularly in the permanent space with organisations looking at long-term growth rather than short-term project work. In Wellington, the cuts within the Public Sector look set to affect the market for the next twelve months
Tom Derbyshire, the Manager of Robert Walters’ IT division in Auckland commented:
“The IT market in Auckland during quarter two was characterised by an increase in the demand for permanent resources over contract requirements. The busiest industry sector for recruitment has been the insurance and financial services market which is partly due to the Christchurch earthquake and the fact that these markets have been the first to recover from the recession. Salaries in Auckland have remained consistent throughout this period.”
Jonanthan Hay, the Manager of Robert Walters’ IT division in Wellington commented:
“In the Wellington market we noticed a 40% increase in the number of IT roles available compared to the same period last year. This increase was driven primarily from the contract space with the permanent and fixed-term market being less consistent. Wellington witnessed IT projects put on hold due to the Christchurch earthquakes and the government sector waiting to hear the results on the budget.”
Legal
• Large law firms are becoming busier and are starting to recruit talent as the financial markets are showing signs of improvement
• With the push towards public and private partnerships, lawyers returning from the UK with experience in this area will be in demand
• Local lawyers are once again looking to resume their OE plans as the global economy strengthens, heralding a push in Wellington towards hiring 3-5 years’ PQE banking & finance lawyers
• Salaries have not changed appreciably in the last 24 months
Shay Peters, Manager of Robert Walters’ Legal division commented:
“We are beginning to see New Zealand’s Top 10 law firms becoming busier and subsequently there has been a return to recruiting talent as financial markets show signs of improvement both here and overseas.
For the first time in 18 months we have seen vacancies for Banking & Finance lawyers, predominantly at the junior and intermediate level.
We expect that the market will gradually improve throughout 2011 as employer and candidate confidence continues to return. Whilst budgetary pressures in the Public Sector continue (exacerbated by the usual nervousness around election year), we still anticipate a general increase in movement and demand across all sectors.”
Sales & Marketing
Marketing divisions (within larger businesses) are looking to expand after operating with a lean business model for the past 2 ½ years
Business development professionals with established networks have been sought after, particularly within ICT and financial services/insurance
The majority of permanent roles we saw come to market were within the $70-110k range with very little movement at the executive/senior level
As businesses focus on driving profitability through sales, we predict the current demand for business development managers/account managers will continue in quarter three and quarter four
Anna Coventry, Manager of Robert Walters’ Sales & Marketing division in Auckland commented:
“The sales and marketing space has been active throughout quarter two with continued candidate confidence prompting movement in the market. While most headcount freezes have been lifted, many marketing divisions are still operating a fairly lean business model and the majority of vacancies have been either the result of a restructure or backfill vacancies.
We predict a continuation of current market conditions for the remainder of 2011 as candidates look to broaden their experience and join an organisation in synergy with their career goals. With the key motivating factors for candidates still being career development and company brand and culture, we once again remind clients to be mindful of both their hiring and retention strategies, placing emphasis on training and development as well as avoiding lengthy recruitment processes in order to secure the best people for their business.”
Procurement & Supply Chain
• The majority of activity within the procurement & supply chain space in the first half of 2011 was largely the result of turnover and restructures as opposed to additional headcount
• Within procurement, the focus was on streamlining and maximising supplier relationships
• Category managers and strategic sourcing professionals have been highly sought after, as have demand and production planners within the FMCG/manufacturing industries
Shay Peters, Manager of Robert Walters’ Professional Services division in Wellington commented:
“Whilst we are beginning to see signs of increased activity across the procurement market, extensive justification is still required for external recruitment. Our clients will continue to recruit carefully.”
Secretarial & Business Support
There has been an increase in candidate movement indicating a general upturn in market confidence
Industries with high recruitment activity include FMCG and insurance
Salaries have remained static over the past twelve months but we expect them to increase
Clients are encouraged to be confident in their recruitment processes to ensure they move quickly to avoid missing out on quality candidates
Amy Vincent, Manager of Robert Walters’ Secretarial & Business Support division in Auckland commented:
“The secretarial & business support market in both Auckland and Wellington has been consistently busy year to date. Candidates who elected to stay put in their roles for the last couple of years are now beginning to look around, indicating a general increase in market confidence. We have seen an increase in both temporary, contract and permanent roles with many companies looking to both create and replace positions.
There are widespread skills shortages across the board for both permanent and contract staff. In particular there has been a strong demand for customer services staff. Those candidates with claims experience are also highly sought after as a result of the earthquakes in Christchurch.”
Nikkie McEwan, Team Leader of Robert Walters’ Secretarial & Business Support division in Wellington commented:
“In the Wellington market, we have noticed a significant flow of actively searching candidates who are concerned about the security of their positions within the Public Sector, as well as an increase in high level administrators moving roles for strategic career development.”