Hudson Australia employment report paints optimistic 2015 outlook

A Hudson Australia recruitment report points to a strong outlook for 2015, with employer intentions at their highest since 2012.

Hudson Australia executive general manager Dean Davidson

HUDSON Australia’s latest recruitment report points to a strong outlook for 2015, with employer intentions at their highest level since 2012.

Hudson executive general manager Dean Davidson says the surge in confidence reflects a structural transformation in the workforce, and changes to skills in the post global financial crisis environment.

Davidson says net hiring intentions for first quarter of 2015 has been the highest quarterly increase since 2010, with 18.7 per cent of employers looking to lift permanent staffing levels in the first three months.

“Despite lukewarm economic conditions and recently released weak GDP figures, Australian employers are optimistic about the year ahead,” Davidson says.

“While the outlook is buoyant, the thirst for talent is centred on specific sectors and role families that support business transformation. These often newly created roles are critical to future success and profitability and as such may be less impacted by broader economic trends.”

The information technology sector leads contracting hiring intentions, with 23.7 per cent of businesses looking to hire.

Pays on the rise

GLOBAL management consultancy the Hay Group says companies will offer pay rises of about 3 per cent this year, compared to average pay rises of 2.9 per cent in 2014.

The company says Australia has not experienced the degree of economic volatility seen in other markets, such as Europe and the US.

Hay Group says pay remains critical in attracting, retaining and providing incentives to the Australian workforce, but the underlying trend is that work has changed, and the way organisations reward workers is also changing.

In Asia, salaries are forecast to increase by 6.8 per cent — down 0.2 percentage points from last year — but with relatively low predicted inflation the group says employees are set to experience the highest growth in real income across the globe.

The largest increases are forecast in Vietnam, up 11.4 per cent, Indonesia with 10 per cent and China on 8 per cent.

Hay says the regional high pay rises reflect an ongoing war for talent, including experienced managers and graduates from the best universities.

They also reflect pressure from the Chinese government to create a burgeoning middle class, with minimum wages rising across China’s second and third-tier cities.

Workers may stray

RANDSTAD is warning managers to be aware of unsettled employees as they return from summer holidays, with 24 per cent of staff admitting they shopped for jobs over Christmas and the New Year period.

Employment analyst Steve Shepherd says workers often reflect on their jobs over holidays, which leads to many making changes from January.

“With so many people looking out the window, we may see a bumper [first quarter] in regards to staff turnover,” Shepherd says.

The latest Randstad Workmonitor figures show a desire for change, personal circumstances changing, ambition in a management field and better employment conditions are the main reasons people have left their positions in the past six months.

“It’s a fact of life that no matter what you do, people are always going to move on to new pastures, as they either desire or are forced into change” he says.

“In many instances, a small tweak to their working life can help you retain top talent.”

Shepherd warns employers to conduct early reviews to ensure staff know where they stand, and ensure they have plans to engage employees.

Promotions please

A LINKEDIN study of mid-career professionals has found 77 per cent of Australians with one to five years’ experience, and 69 per cent of professionals with six to 10 years’ experience expect to be offered a promotion within two years.

The study found mid-career professionals would be convinced to stay with their current company if given better financial rewards and opportunities, with 77 per cent of professionals with one to 10 years’ experience choosing to stay longer if offered a pay rise.

The survey also looked at women and how they perceived leave to have children, with 26 per cent saying they found it difficult to leave to have a baby.

LinkedIn partnered with CensusWide to survey more than 6000 students and professionals to better understand trends across different stages of their careers.