Hudson 20:20

BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA

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POSITIONING FOR GROWTH

BUILDING A DYNAMIC WORKFORCE

IN A NEW ECONOMIC ERA

The Hudson 20:20 SeriesReleased annually, the Hudson 20:20 Series is Hudson Australia/New Zealand’s flagship research publication. The series investigates talent management issues that have a critical impact on business performance. Recent topics include: Talent Tightrope – Managing the Workplace through the Downturn; Candidate Buying Behaviour; and Seven Key Drivers of Mature-aged Workers.

About HudsonHudson is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total project solutions, Hudson helps clients achieve greater organisational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 2,000 professionals serving clients and candidates in approximately 20 countries.

Sweeney ResearchHudson commissioned Sweeney Research to conduct a robust qualitative and quantitative research study into the lingering impact of the recent economic downturn on Australia and New Zealand’s workforces and the ramifications for the hiring process going forward.

© Hudson 2010 (ISBN 978-0-9757621-2-7)

FoRewoRd 4

InTRoducTIon 5

SummARy oF key FIndIngS 6

new economIc eRA

GROWTH RETURNS 10

PRUDENT OPTIMISTS 12

WAKE-UP CALL HEARD 14

RESTLESS WORKFORCE 16

WORKFORCE LOSSES 18

FOSTERING INNOvATION 20

REBUILDING REvENUE 21

cASe STudy: HeAlTHcARe 22

TIme FoR cHAnge

SKILLS SHORTAGES RETURN 26

jOB SEEKING SWELLS 28

REASON FOR CHANGE 30

NEW WORKLOAD REGIME 32

GETTING THE RIGHT TEAM 34

RAISING THE BAR 36

DISTINCTION OF HIGH PERFORMERS 38

cASe STudy: FInAnce 40

cASe STudy: InduSTRIAl 42

RecommendATIonS

FOUNDATIONS OF GOOD HIRING 46

HIRING MISFIRES 48

PERFORMANCE DRIvERS 50

‘WANT TO’ NOT ‘KNOW HOW’ 52

ReSeARcH meTHodology 54

CONTENTS

The last year has been an uncertain and volatile period for the global economy, putting a great deal of pressure on our local business environments and workforces. Midway through 2010, it is clear that both Australia and New Zealand are in recovery. Our economies are now growing – Australia’s growth is well ahead of the international curve and New Zealand’s recovery is strengthening. For both countries

the economic outlook is broadly positive.

This optimism is mirrored, to a large degree, within our businesses, in the frames of mind of employers and employees alike. However, to steer through the crisis our organisations were forced to take a range of swift actions that, in many cases, reduced the size of the workforce and affected the security, finances and future of many employees.

Actions such as this do not come without taking their toll. The purpose of this 2010 Hudson 20:20 Series whitepaper is to assess the current state of play inside Australia and New Zealand’s businesses and look at what organisations need to do to build the collective muscle of their teams, with the aim of driving better business performance.

Our employers face myriad challenges. They need to replace workforce losses, retain their current teams, attract new employees to grow those teams and ensure that new recruits are high performers. All this is set against a backdrop of a unique post-downturn business environment – increasingly competitive and with an imperative of escalating profitability and growth.

In today’s context of juxtaposed workforce liquidity and returning skills shortages it is crucial that employers get the right people into the right roles to enhance the performance and tenure of individual employees and teams. Ultimately this report provides recommendations on what employers can do to ensure that they are correctly identifying, attracting and retaining high performers. Rigorous hiring procedures, including sophisticated measures that assess motivational and cultural fit, not only identify talent in people, but also their propensity to be retained by their employer – key to sustaining long-term growth.

Mark Steyn CEO, Hudson Australia/New Zealand

FOREWORD

4 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA

Positioning for Growth – Building a Dynamic Workforce in a New Economic Era is the latest whitepaper in the Hudson 20:20 Series. It assesses the fallout of the downturn in Australia and New Zealand’s businesses and workforces, with specific focus on today’s increasing labour market liquidity. It also provides recommendations on how to find and retain high performing employees in an increasingly competitive, skills-short market.

The whitepaper looks closely at the job-seeking behaviour of employees, at what is now driving them to seek new roles and what they are looking for in their roles and ongoing careers. It also explores what employers need to do to make sure that their teams and workplaces are cohesive and high performing and therefore drive greater profitability and growth.

Released annually, the Hudson 20:20 Series is Hudson Australia/New Zealand’s flagship research publication. The series investigates talent management issues that have critical impact on business performance. Recent topics include: Talent Tightrope – Managing the Workplace through the Downturn; Candidate Buying Behaviour; and Seven Key Drivers of Mature-aged Workers.

Hudson commissioned Sweeney Research to conduct a robust qualitative and quantitative research study into the lingering impact of the recent economic downturn on Australia and New Zealand’s workforces and the ramifications for the hiring process going forward.

This year’s research included of qualitative in-depth interviews and discussions with key Hudson clients to produce case studies detailing how different employers in different professions felt the impact of the economic downturn and what this means for their workforce requirements going forward.

This initial phase was followed by extensive online survey-based interviews of 1,690 employees and 605 employers in regard to the impact of the downturn on their organisations/workplaces and their views, behaviour and approach to job seeking and the hiring process in the post-downturn market. Full details of the research design can be found in the Research Methodology section (See pages 54 and 55).

INTRODUCTION

POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 5

SUMMARYOF KEY FINDINGS

NEW ECONOMIC ERAgrowth returnsAustralia and New Zealand’s employers are showing a strong degree of confidence in the post-downturn market – 29% say their organisations’ outlook is ‘upbeat and opportunistic’ and 56% is ‘cautiously optimistic’. For those employers who reported some negative impact as a result of the downturn, 92% agree we have now emerged from the worst. A quarter say they are ‘back to business as usual’. However, 67% say whilst ‘the worst is over’ they are ‘still feeling the effects’ of the downturn to some degree.

Prudent optimistsOf those still feeling the effects, 52% say they expect to stop feeling negative effects within a year, and a further third (36%) within 18 months. Employees are in agreement – 52% and 32% expect to be back to normal within a year and 18 months respectively. Employees are much less concerned about the wider economy than this time last year – 22% are not worried at all, and a further 54% are prudently optimistic.

wake-up call heardLast year’s great divide in the workplace has diminished and employers have a much more realistic view of the mood of their workforces. This year, 17% of employees say they feel ‘more loyal’ to their organisation in the aftermath of the downturn and 18% of employers agree – almost exactly in tune with

employees’ true feelings. Accurate perception of employees’ mood, particularly the fact that loyalty is low, is crucial.

Restless workforceThe proportion of employees who say they value their job less over the previous year has doubled, from 5% in 2009 to 10% in 2010. Employers report noticing this shift in their workforces already – over half (51%) agree that ‘a lot of employees are now looking for jobs because they feel they have more choice than during the downturn’. A quarter of employers (24%) also think their current employees feel less satisfied with their jobs.

workforce lossesAbout four in 10 employers (43%) made roles redundant during the downturn. Overall, employers lost 11% of their workforce through voluntary redundancy, enforced redundancy or staff leaving of their own accord. Organisations ‘cut the fat’ but results suggest many also ‘cut into the muscle’. Almost two-thirds of both employers and employees (59%) believe their organisations to be under-resourced following loss of headcount.

Fostering innovationA third of employers (32%) report the business market has become more competitive as a result of the downturn. Over half of the employers surveyed (53%) report that ‘some scheduled business development/plans were put on hold’. Four in 10

employers say they are focussed on growth but to grow they need the processes in place to identify innovative, competitive and motivated people who can, and want, to succeed.

Rebuilding revenueOver half of employers (51%) report that their profit/revenue decreased, 38% downgraded their profit outlook, and 13% was forced to cut prices. One in five employers reduced or cancelled bonuses for all staff and 11% of employers implemented pay cuts for some or all staff. The pockets of many employees were hit and there will be an expectation amongst many in the workforce that they must be recompensed to keep them in their roles.

TIME FOR CHANGESkills shortages returnNearly three-quarters of employers (73%) faced skills shortages prior to the downturn. During the downturn, this proportion decreased to 44%. This year, the proportion of employers reporting a skills shortage has risen swiftly to its current 57%. Employees are seeing greater liquidity and therefore more choice in the workplace. For them the movement has begun.

Job seeking swellsAlmost two-thirds (62%) of employees are actively or passively job seeking – a marked increase on last year’s 49%. Of the two-thirds of employees seeking new roles, almost all (93%) are planning to be in a


new role within 18 months. Nearly two-thirds (61%) of those planning to switch jobs aim to do so within six months – 39% of these within the next three months. In short, roughly 40% of all employees have a personal goal to be in a new role within the next six months.

Reason for change‘Career development considerations’ continues to be the most important trigger for seeking a new role for 64% of employees, showing an increase on last year’s 58%. At the same time, ‘financial considerations’ has leapt forward with 57% of employees now nominating this factor as a trigger. ‘Company considerations’ has also moved forward for 34% of employees. Out of the downturn, 38% say they will be ‘much choosier about who they work for’.

new workload regimeTwo-thirds of employees (62%) feel they are working harder as a consequence of headcount reductions in the workforce and even more employers confirm this is the case (71%). Despite this, ‘work/life balance’ has held steady on last year’s result at 42%. Over half of employers (54%) say they will ‘monitor or scrutinise people’s performance a lot more closely going forward’ but employees understand this – almost two-thirds (60%) say they expect employers to be more demanding of new recruits in the aftermath of the economic downturn.

getting the right teamThe majority (80%) of employers are focussed on growth but 43% say currently they do not have the right team in place to grow their business. A large majority of employers (84%) says their organisations made too many redundancies during the downturn and 23% of total losses were high performers. just over a third (34%) believe teams have been weakened and 83% are now focussed on building the right team for growth. Over half (57%) agree that there is now more competition for candidates than before the downturn and 54% say most organisations in their industry are now hiring more.

Raising the barOver half of employers (53%) acknowledge that when re-hiring they have to ‘raise the bar higher’ than before the downturn and 54% say they are ‘taking more time to find the right candidates rather than simply filling the role’ since the downturn. However, 35% say most of the hiring being done now is about replacing the people that were lost during the economic downturn.

distinction of high performersEmployers classify 35% of their staff as high performers. Employees provide a very similar assessment of their work colleagues. Employers say high performers are 34% more productive than average

performers. Further, 82% say high performers inspire others and 81% say they boost team productivity.

RECOMMENDATIONSFoundations of good hiringEmployers must develop a sophisticated Employee value Proposition in order to differentiate themselves – only 23% say they are now working harder to demonstrate to candidates why they should work for them. Over a third of employees (37%) will ‘use networks or word of mouth more’ when seeking a new role. Thus, the nature of what existing employees say about a company is critical.

Hiring misfiresWell over three-quarters of employers (79%) say their hiring process is ‘formalised’, 60% says they have streamlined or improved their hiring processes since the downturn and 43% says they now have a greater focus on better matching candidates to roles. However, employers report that 44% of their hires are not good. They are concerned about the consequences of bad hires: 51% about the negative impact on teamwork and engagement; 34% loss of productivity; 34% impact on morale; 21% opportunity cost; 18% impact on customer service; and 9% decreased business.

Performance driversPerformance drivers fall into three categories: ‘know how’, ‘can do’ and ‘want to’. The top

three hiring tools/measures used (most frequently) by Australia and New Zealand’s employers are: ‘reference checking’ used by 88%; ‘resume screening’ used by 76%; and ‘background interview’ used by 66%. All of these measures fall into the ‘know how’ category. In fact, 63% of employers’ total hiring procedures and tools are focussed only on the ‘know how’ category. Almost a third (30%) of their efforts address the ‘can do’ category and only 7% measure the ‘want to’ category.

‘want to’ not ‘know how’All 605 employers were asked their thoughts on the difference between an average and a high performer. Not a single employer cites ‘good references’, ‘years of experience/experience’, ‘education/qualifications’ or ‘where they have worked before’ yet these are the measures that employers are most commonly using to bring new people into their businesses. The tools they currently use, which they perceive to be the most effective are ‘behavioural interviewing’ at 32% and ‘reference checking’ and ‘background interview’ both at 9%. Employers clearly need to drive a layer of sophistication through their hiring methods and understand better the direct relationship between the effectiveness of the procedures they use and the success of their hires.


01


NEW ECONOMIC ERA

9POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA

“ THe economIc downTuRn ReSulTed In my oRgAnISATIon TIgHTenIng ITS PuRSe STRIngS – we’ll conTInue To be ASked To cuT ReSouRceS buT we’Re bAck on A SuSTAInAble TRAck”

Manager, Accounting & Finance

Last year saw the worst recession to hit the globe in 70 years. Despite the fact that the local Australian and New Zealand markets coped well in comparison to the rest of the world, our business environments and workforces were adversely affected. However, our economies have rallied and, for both countries, the economic outlook is broadly positive.

Employers and employees agree their organisations have a strong degree of confidence in the post-downturn markets in both Australia and New Zealand. A third of employers and a quarter of employees, (29% and 25% respectively) say their organisations’ outlooks are ‘upbeat and opportunistic’, with a further 56% and 57% respectively citing an outlook of ‘cautious optimism’. A high proportion (85% of employers and 82% of employees) is feeling positive about the future. (See Fig. 1)

This positivity wanes somewhat in both employers’ and employees’ account of the impact of the downturn on their organisations. Two-thirds of employers (66%) report there was some ‘negative impact’ on their organisations during the downturn, but only a small proportion (15%) reports this was ‘significant’. A quarter (25%) say that the downturn had ‘no impact whatsoever’ on their organisations and a further 9% report a ‘positive’ impact. Employees are in agreement – 67% report some negative impact, with the proportion describing the impact as ‘significant’ only marginally higher at 18%.

Of those employers and employees who report there was some negative impact as a result of the downturn, almost all agree that we have now emerged from the worst (92% and 93% respectively). A quarter of this group of employers (25%) goes further saying they are now ‘back to business as usual’. However, whilst the majority of employers (67%) says ‘the worst is over’ they are ‘still feeling the effects’ of the downturn to some degree. A marginal 8% is yet to feel the full force of the recovery – these employers say they are currently ‘experiencing the worst effects of the downturn’. (See Fig. 2)

GROWTH RETURNS


– Australia outpacing new Zealand.Whilst 29% of Australian employers who were negatively impacted by the downturn report they are now back to business as usual, the proportion is much lower in New Zealand at 14%.

– Technology jobs weather well.Most sectors report similar effects with the exception of ICT and Technical & Engineering where a higher proportion of employees reports ‘no impact’ (36% and 31% respectively).

– Victorian victory.80% of victoria’s employers who are still feeling the negative effects, expect a recovery in the next 12 months – well above the 52% for employers overall.

FIg 1

FIg 2

OvERALL OUTLOOK

CURRENT FEELING

EMPLOYEES BY PROFESSION

Employers

Employers

Employees

Employees

Public Sector

Office Support

ICT

Sales, Marketing & Communications

Accounting & Finance

Technical & Engineering

Outlook upbeat and opportunistic

Outlook one of cautious optimism

Outlook one of uncertainty

Outlook is bleak

Don’t knowBase: Employers, n=574 Base: Employees, n=1,633

Currently experiencing the worst of the effects of the economic downturn

The worst of the economic downturn is over, but it is still having an effect

The worst of the economic downturn is over, and we’re back to business as usual

Base: Employers, n=421 Base: Employees, n=1,138

Currently experiencing the worst of the effects of the economic downturn

The worst of the economic downturn is over, but it is still having an effect

The worst of the economic downturn is over, and we’re back to business as usual

Base: Employees, n=1,138

8% 67% 25%

29% 56% 12%

7% 69% 24%

4% 82% 15%

6% 67% 27%

6% 70% 25%

Q2.5 Employers and Q2.6 Employees: How would you describe the overall outlook of your organisation in today’s post-downturn market?

Q2.3 Employers and Q2.4 Employees: Which best describes how your organisation currently feels about the recent economic downturn?

25% 57% 14%

66% 24%10%

70% 25%5%

21% 71%8%


PRUDENT OPTIMISTS

“ we’Re now PlAnnIng FoR A PeRIod oF gRowTH, THeRe’S An oPTImISTIc AIR In THe comPAny THAT we’Ve mISSed”

CMO, Sales, Marketing & Communications

For employers in Australia and New Zealand still feeling the effects of the downturn, there is optimism that the end is in sight. Over half of these employers (52%) say they expect to stop feeling these negative effects within a year, and a further third (36%) within 18 months. Employees who felt negatively impacted are in agreement – 52% and 32% expect to be back to normal within a year and 18 months respectively. (See Fig. 3)

Amongst Australia and New Zealand’s employees in general, some signs of the personal stresses under which they were placed during the last 12 months linger. However, employees’ level of concern regarding the stability of the wider economy today is significantly less than that expressed at the same time last year. Hudson’s 2009 20:20 Series whitepaper Talent Tightrope reported climbing concern amongst employees of the potential effects of the downturn on their personal circumstances – 35% said they were extremely/quite worried. This year, only 24% report being extremely/quite worried about the current economy. Almost a quarter (22%) are not worried at all, and a further half (54%) prudently express a little caution. (See Fig. 4)


WHEN DO YOU ExPECT TO STOP FEELING NEGATIvE EFFECTS?

EMPLOYEES’ CURRENT LEvEL OF CONCERN ABOUT THE ECONOMY

Employers

Employees

Within 6 months

In 6 to less than 12 months

In 12 to less than 18 months

In 18 months to 2 years

More than 2 yearsBase: Employers, n=272 Base: Employees, n=574

I am extremely worried

I am quite worried

I am a little bit worried

I am not worried at allBase: Employees, n=1,668

13% 36% 8% 4% Q2.4 Employers and Q2.5 Employees: When does your organisation expect to stop feeling the negative effects from the downturn?

Q2.2 Employees: Which of the following best describes how you feel about the economy now?

18% 34% 32% 3%

FIg 3

FIg 4

13%

39%

54%

19%

5%

22%


– light on the horizon. For employers in Australia and New Zealand still feeling the effects of the downturn, there is optimism that the end is in sight.

– employees’ pain lingers.Amongst Australia and New Zealand’s employees in general, some signs of the personal stresses under which they were placed during the last 12 months remain.

– but worries alleviated. Only 24% of employees report being extremely/quite worried about the current economy, fewer than last year’s 35%.

“THe downTuRn HAS mAde A bAd ImPReSSIon on my emPloyeeS And we know we’Re now beIng Held To THAT ‘ImPReSSIon’”HR Manager, Office Support

Signs are good that Australian and New Zealand’s workplaces are more cohesive environments than last year. The results of last year’s Hudson 20:20 Series whitepaper Talent Tightrope clearly highlighted a great divide between the sentiment of employees and their employers’ perception of this sentiment. In every aspect measured – loyalty, job satisfaction, motivation, morale, stress levels, job security – employers consistently thought that employees’ sentiment was twice as good as it was in reality. Now, a year on, it’s evident that this divide has greatly diminished.

Overall, employers have a much more realistic view of the mood of their workforces. In 2009, 20% of employees reported feeling ‘more loyal’ to their organisation as a result of the downturn. This year, the proportion of employees who say they feel ‘more loyal’ to their organisation in the aftermath of the downturn has decreased marginally to 17%. However, the change is marked for employers. In 2009, 43% thought their workforce was ‘more loyal’ – a view that was vastly out of sync with reality. This year, the proportion has decreased significantly to 18% – almost exactly in tune with employees’ true feelings. (See Fig. 5)

Similarly with motivation – last year 42% of employers thought their workforce was ‘more motivated’, compared to the 22% of employees that actually felt that way. This year results for employees remain roughly the same – 24% report feeling ‘more motivated’ in the aftermath of the downturn. However, 18% of employers this year report thinking their employees are ‘more motivated’, demonstrating a much more accurate perception of the mood of their workforce.

Australian and New Zealand employers have clearly woken up to the mood of their people and it’s important that they maintain this clarity. Accurate perception of employees’ mood, particularly the fact that loyalty is low, is going to become crucial to every employer as we move further along the economic recovery path. Employees are becoming more optimistic about the economy in general and with this feeling a renewed sense of choice and power is becoming apparent.

WAKE-UP CALL HEARD


CHANGES TO ATTITUDES FOLLOWING THE DOWNTURNARE EMPLOYEES MORE OR LESS LOYAL IN THE AFTERMATH OF THE DOWNTURN?

ARE EMPLOYEES MORE OR LESS MOTIvATED IN THE AFTERMATH OF THE DOWNTURN?

Employers Aust/NZ

Employers Aust/NZ

Employees Aust/NZ

Employees Aust/NZ

More

Same

LessBase: Employers, n=605 Base: Employees, n=1,690

18% 25%

21%

Q2.10 and Q2.11 Employers and Employees: How are you/the employees in your organisation feeling now, in the aftermath of the economic downturn, in terms of loyalty/motivation?

17% 62%

60%

21%

16%

FIg 5

57%

61%18%

24%


– Realism reigns. Employers have a much more realistic view of the mood of their workforces.

– loyalty low.Accurate perception of employees’ mood, particularly the fact that loyalty is low, is crucial to every employer.

– Flight risk.Employees’ optimism about the economy in general is breeding a renewed sense of choice and power.

“we’Re STRugglIng To keeP THe good PeoPle wHo HAVe noT leFT yeT AS moRe oPPoRTunITIeS oPen uP And beTTeR JobS become AVAIlAble”Finance Manager, Accounting & Finance

In 2009 58% of employees said they valued their jobs more as a result of the downturn – a figure that, rather than denoting a dedication to their employer, may have demonstrated a pragmatic response to a difficult economic climate. In 2010, the proportion of those who say they value their jobs more in the aftermath of the downturn has dropped back to 44%. (See Fig. 6)

The majority (46%) feels about the same as last year, but the proportion of those employees who say they value their job less has doubled, from 5% in 2009 to 10% in 2010. This is a notable shift, influenced not only by their increasingly optimistic outlook but also an increasing sense of an alternative. Employers report noticing this shift in their workforces already – over half (51%) agree that ‘ a lot of employees are now looking for jobs because they feel they have more choice than during the downturn’. (See Fig. 7) A quarter of employers (24%) also think their current employees feel less satisfied with their jobs.

Indeed, employees are displaying a fair amount of ambivalence towards the organisations they work for. Exactly half has felt no change in how positively they feel about their organisation since the downturn, with the other half roughly split down the middle of feeling more and less positive (27% and 23% respectively). Ultimately, well over a third of employees (38%) report they are more likely to switch jobs in the aftermath of the downturn, underscoring a sense of restlessness and foretelling greater liquidity in the workforce. During the downturn the pendulum of power swung towards the employer but it’s rapidly swinging back.

RESTLESS WORKFORCE


CHANGES TO jOB vALUE FOLLOWING THE DOWNTURNDO EMPLOYEES vALUE THEIR jOBS MORE OR LESS IN THE AFTERMATH OF THE DOWNTURN?

Employers Aust/NZ

Employees Aust/NZ

6% Q2.13 Employers and Employees: Do you/do you think your employees value your/their job(s) more or less in the aftermath of the economic downturn?44% 46% 10%

FIg 6

44%

More

Same

LessBase: Employers, n=605 Base: Employees, n=1,690

50%

DO EMPLOYEES HAvE A GREATER SENSE OF CHOICE?

Disagree + disagree strongly

Neither agree nor disagree

Agree strongly + agreeBase: Employers, n=573

Q3.13b Employers: Agreement - A lot of employees are now looking for jobs because they feel they have more choice than during the economic downturn.

FIg 7

27%

51%

22%


– mood of malcontent.The proportion of those employees who say they value their job less in the last year has doubled, from 5% in 2009 to 10% in 2010.

– expanding horizons. Over half of employers (51%) agree that ‘ a lot of employees are now looking for jobs because they feel they have more choice than during the downturn’.

– Tossing the coin. Accounting & Finance employees are the most likely to be switching jobs (46%).

– changing fortunes. During the downturn the pendulum of power swung towards the employer but it’s rapidly swinging back.

“ IT’S HARd To FInd THe bAlAnce beTween SAVIng coSTS And HAVIng enougH PeoPle To geT THe Job done wITHouT SIgnIFIcAnT ReSouRcIng PReSSuRe”Manager, Office Support

Despite the clear positivity and optimism Australia and New Zealand’s organisations are now demonstrating the fact remains that many experienced minimal growth, in some cases decline, throughout the last year. The defensive measures that they were forced to take have directly impacted competitiveness, innovation and profitability – all crucial factors in successful business performance.

Organisations are clearly facing problems with the size of their workforces. When asked about ways in which the downturn affected their organisations, half of employers report that some roles were merged or made redundant (50%); almost half (43%) report that ‘workloads increased for most in the organisation’; a third (31%) report that their company ‘underwent a restructure’ and a quarter (22%) that ‘some divisions, services or offices were merged or closed’. (See Fig. 8)

Many of the cost-cutting initiatives implemented by employers during the downturn had a direct impact on employment levels within their organisations.

About four in 10 employers (43%) made roles redundant during the downturn. This alone, has had a significant impact on the output of the workforce but employment levels were also impacted in a number of other ways. Almost half of employers (46%) implemented headcount freezes; 42% implemented hiring freezes and 12% offered voluntary redundancies.

Overall, employers report that they lost 11% of their workforce through voluntary redundancy, enforced redundancy or staff leaving of their own accord during the economic downturn. (See Fig. 9)

Organisations have slimmed down. They ‘cut the fat’ but these results suggest many ‘cut into the muscle’. Almost two-thirds of both employers and employees (59%) believe their organisations to be under-resourced following loss of headcount.

This combination of factors has left organisations stretched, stressed and with a desperate need to bolster the workforce or risk growth being stunted.

WORKFORCE LOSSES


TOP 10 WAYS IN WHICH THE DOWNTURN AFFECTED ORGANISATIONS

TOTAL PERCENTAGE OF WORKFORCE LOST

Q2.2 Employers: In which of these ways has your organisation been affected by the recent economic downturn?

Q3.4 Employers: What percentage of your workforce left, either through voluntary redundancy, enforced redundancy or of their own accord, during and since the economic downturn?

FIg 8

FIg 9

Base: Employers, n=605

Some scheduled business developments/plans put on hold 53%

Profit/Revenue decreased 51%

Some roles in the company were merged or made redundant 50%

Workloads increased for most in the organisation 43%

Downgraded profit outlook 38%

Market has become more competitive 32%

Company underwent a restructure 31%

Some divisions, services or offices were merged or closed 22%

Company forced to cut prices 13%

TOTAL AUS 11%

victoria 15%

Western Australia 15%

New South Wales 10%

Queensland 9%

South Australia 4%

TOTAL NZ 10%

Auckland 14%

Base: Employers, n=348 who lost staff


– new Zealand roles suffer.Almost half (49%) of employers from New Zealand says they made redundancies, compared to 41% in Australia. New Zealand employers are also more likely to have cancelled bonuses for management (31% vs. 20% in Australia).

– wA and Victoria down, SA up.Results show that WA and victoria’s workforce losses, at 15% were significantly higher than the average of 11%, whilst SA fared relatively well with a workforce loss of only 4%.

– levels of losses.9% of redundancies during the downturn were at executive or senior management level, while middle management comprised 21% of losses. The majority were in non managerial professionals/specialists (38%) and admin/support staff (32%).

“ ouR mARkeT IS PReTTy cuTTHRoAT SInce THe downTuRn – we’Re STRugglIng To comPeTe wITH A SmAlleR TeAm”Strategy Director, Sales, Marketing & Communications

An increasingly competitive market is defining a tight timeframe within which organisations need to respond to these effects. A third of employers (32%) report the business market has become more competitive as a result of the downturn. Organisations need to find the right people if they are to stay ahead of the game.

To outpace their competition organisations also need to develop. Again, innovation in organisations has been badly impacted by the downturn. Over half of the employers surveyed (53%) report that ‘some scheduled business development/plans were put on hold’. Organisations must get these plans back on track if they are to compete in their respective markets. To do this requires that they find the best people – those that have the capability and motivation to truly drive change are not everyday people.

Employers are clearly focussed on replacing losses within the workforce, but if they are to hit all of these targets – competitiveness, innovation and profitability – the people they bring in must be good hires. Four in 10 employers say they are focussed on growth and to grow they need the processes in place to identify innovative, competitive and motivated people that can, and want, to succeed. They need high performers.

FOSTERING INNOvATION


“we FAce PRoblemS bRIngIng SAlARIeS bAck uP To comPeTITIVe leVelS gIVen Two yeARS oF below HISToRIc bonuS And PAy RISe leVelS. we RISk loSIng good PeoPle”Director, Accounting & Finance

Organisations’ difficulties are compounded by the fact that many are now less profitable. Now that they have such an urgent requirement to hire, they have tighter budgets with which to do so. They are being asked to do more with less. Over half of employers (51%) report that their profit/revenue decreased; well over a third (38%) report that they downgraded their profit outlook; and 13% were forced to cut prices. These are stark figures.

Again, cost-cutting initiatives put in place during the downturn compound employers’ financial challenges. Over a third of employers (37%) implemented pay freezes for some or all staff.

Almost a quarter (22%) reduced or cancelled bonuses for management. One in five employers reduced or cancelled bonuses for all staff and 11% of employers implemented pay cuts for some or all staff. The pockets of many employees were hit and there will be an expectation amongst many in the workforce that these cost cuts, that directly affected their personal financial situations, must be recompensed to keep them in their roles. This will be of particular importance if employers are forced to pay higher rates to secure new staff as skills become increasingly scarce. (See Fig. 10)

As companies attempt both to repair these losses and begin to hire back in, it’s imperative that they do so profitably – that they get the workforce they need with limited budgets and that any people costs put back into the business are contributing to the bottom line.

REBUILDING REvENUE


– Sales/marketing/communications. More likely than other professions to have downgraded profit outlook (42%) and to report that the market has become more competitive (47%).

– Financial Services. Significantly more likely than other professions to have undergone a merger (23%).

– Public Sector. Significantly more likely than other professions to say their workload has increased (63%).

– eye on the bottom line. As companies attempt both to repair these losses and begin to hire back in, it’s imperative that they do so profitably.

INITIATIvES TAKEN DURING THE DOWNTURN

Q3.1 Employers: Which, if any, of the following initiatives did your current/most recent employer take during the economic downturn?

FIg 10

% ORGANISATIONS WHO TOOK INITIATIvE

Headcount freeze (i.e. could still replace current headcount)

46%

Made roles redundant 43%

Hiring freeze (i.e. freeze on new hires) 42%

Pay freezes for some/all staff 37%

Reduced/cancelled bonuses for management 22%

Reduced/cancelled bonuses for all staff 20%

Offered voluntary redundancies 12%

Reduced work hours and corresponding pay for some/all staff

11%

Pay cuts for some/all staff 5%



CASESTUDYHEALTHCARE

This large healthcare company weathered the downturn without any real impact on the organisation. “It’s been business as usual.” However, with Government PBS reforms, and the Government stimulus package no longer having an impact, the retail side of the company has seen consumer spending drop off during 2010. Whilst the company is aware that this is a common trend across retail in general, it is a concern for the management team looking forward.

The level of confidence is far lower than it was six months ago, although as yet this is unlikely to have filtered down to employees. There has been a recruitment freeze recently imposed across the whole organisation, with any new recruitment requiring specific justification. If the downward trend continues through 2010, as predicted, it is likely that there will be a renewed focus on reducing costs, through reduced work hours or even head count.

In terms of resourcing, one section of the business has just undergone a move from manual to automated systems and this has affected staff morale. There has been some staff turnover as a result of the changes, and change in the skills sets required, particularly in more senior roles. Other areas of the business have remained fairly stable.

There is a general feeling that the pool of potential employees is greater than before the downturn. Employees who previously stayed with a company for job security during the downturn are now feeling more comfortable about looking around for new opportunities. This trend is reflected in the Employee Engagement survey conducted in 2010 which revealed low levels of rational and emotional commitment to the company, with a substantial decrease in employees claiming they intended to stay with the organisation in the future. This is seen as an area of particular concern, especially if the organisation hits hard times.

The data from the 2010 Employee survey is still being disseminated and strategies have yet to be developed. However, the survey is seen as a vital tool to gauge employee sentiment and inform the executive team. The focus is on being action-oriented, and in particular learning from teams where engagement is higher and applying this information to other areas of the business.

There has been a move towards focussing on greater development and rigour around employee potential and performance, and putting measurements around these. As part of this move, management is considering the skill sets needed for each role to ensure that each position is filled by the most appropriate person.

There is a drive to refine the recruitment process and streamline it across the organisation as a whole. Currently, different areas of the business have varied procedures and there is seen to be a need to put in place a more rigorous and consistent process. In place of interviews and resume checks, the organisation wants to put in place additional tools such as psychometric personality testing which are seen as less subjective. Setting up relationships with just a few recruitment agencies is seen as the most effective means of maintaining a consistent quality of candidates. These agencies would be required to work more as partners than suppliers, with a good understanding of the business and therefore cognisant of the behavioural and leadership characteristics that fit the company’s culture and needs.

“There is a lot to be said for getting the right person in the right role rather than getting bums on seats.” One of the likely implications of the recruitment freeze may be that as soon as it is lifted there will be a rush to employ new staff in case it is re-imposed. The organisation wants to ensure that any recruitment is strategic in nature. The repercussions of a bad hire are wide-reaching and setting up more thorough and structured practices is seen to minimise the risk of recruiting the wrong person.

CASE STUDYHEALTHCARE


02


TIME FOR CHANGE


“ THeRe weRe Some RedundAncIeS wITHIn THe InduSTRy buT THe SkIlled cAndIdATeS ARe VeRy quIckly SnAPPed uP by oTHeR comPAnIeS And THe RemAInIng oneS ARe noT AlwAyS THe beST oR HIgHeST PeRFoRmeRS”HR Manager, Technical & Engineering

Three-quarters of Australia and New Zealand’s employers (73%), across all industry sectors agree that prior to the downturn they were battling with skills shortages across all professions. During the downturn, this proportion decreased significantly and suddenly to 44%. This year, following the downturn, employers are once again feeling the skills pinch – the proportion of employers reporting a skills shortage has risen swiftly to its current 57%. (See Fig. 11) Indications are strong that skills shortages will continue to increase steadily throughout the year –17% of employers already are saying it will be much harder to find talent because many good people left their industries altogether during the downturn.

Over the same period slightly fewer employees perceived skills shortages, though their changing perceptions have followed a curve similar to their employers. Prior to the downturn almost two-thirds of employees identified a skills shortage. This dropped significantly to 36% during the downturn, but has increased rapidly with almost half (47%) now saying they see a shortage of skills in their professions.

On the other hand, employees perceive greater turnover within the workplace than their employers have actually recorded. While one in five employers (21%) report greater staff turnover within their organisations since the downturn, this proportion is far higher for employees. Over a third (35%) report greater turnover amongst their teams and colleagues. The accuracy of employees’ perception of turnover, in this context, is of lesser importance compared to the fact that they are seeing greater liquidity and therefore more choice in the workplace. Their confidence in the labour market is increasing. For employees the movement has clearly begun.

SKILLS SHORTAGES RETURN


FIg 11SKILLS SHORTAGES: BEFORE, DURING AND AFTER

Prior to the downturn

During the downturn

Following the downturn

Skills shortage

No skills shortage

Skills surplus Base: Employers, n=605

17%

Q2.9 Employers: How much of a skills shortage do you think there is/was prior to, during and following the economic downturn? 57%

21% 6%

32%

26%

44%

73%

24%


– Feeling the skills pinch. The proportion of employers reporting a skills shortage has risen swiftly to its current 57% from 44% during the downturn.

– Turning tide.Over a third of employees (35%) report greater turnover amongst their teams and colleagues. They are seeing greater liquidity and therefore more choice in the workplace.

“ IT’S HARd To ReTAIn STAFF AS conFIdence ImPRoVeS And moRe RoleS become AVAIlAble In oTHeR oRgAnISATIonS”Manager, Technical & Engineering

In 2010, as employees become generally less concerned about the wider economy and perceive increasing power to move jobs those seeking a new role have increased in number accordingly. Almost two-thirds (62%) are actively or passively job seeking – a marked increase on last year. In 2009, 22% of employees were actively seeking a new role. In 2010 this proportion has increased to 29%. Similarly, in 2009 27% were passively seeking – this year the proportion has increased to 33%. (See Fig. 12)

Throughout the workforce a renewed vigour in employees’ underlying desire for change is clearly evident. Of the two-thirds of employees seeking new roles, almost all (93%) are planning to be in a new role within 18 months. (See Fig. 13) Nearly two-thirds (61%) of those planning to switch jobs aim to do so within six months – 39% of these within the next three months. These figures forewarn of a staggering degree of movement within Australia and New Zealand’s workforces. Roughly 40% of all employees have a personal goal to be in a new role within the next six months. The ‘talent exodus’ predicted in last year’s Talent Tightrope is clearly gaining momentum.

jOB SEEKING SWELLS


FIg 12 CURRENT jOB SEEKING STATUS

WHEN EMPLOYEES PLAN TO MOvE jOBS

Q4.4 Employees: Which of the following best describes your current job-seeking status?

Q4.6 Employees: When do you think you’ll be moving jobs?

2009 2010

Actively seeking a new job 20% 29%

Passively seeking a new job 27% 33%

Plan to stay in current job 53% 38%

Base: Employees, n=1,690 *Note that sample has been sourced differently from 2009 to 2010: comparison is indicative only

FIg 13

In the next 3 months

>3-6 months time

>6-12 months time

>12-18 months time

>18-24 months time

Longer than 24 monthsBase: Employees, n=857

39%25%

1% 2%

22%

11%


– more on the market. Almost two-thirds of employees (62%) are actively or passively job seeking. This is a marked increase on last year’s 49%.

– Set on seeking.Public Sector employees are the most fervent job seekers with 38% actively looking for a new role.

– exodus begins.Roughly 40% of all employees have a personal goal to be in a new role within the next six months.

“ THe mAJoRITy oF emPloyeeS ARe lookIng FoR cAReeR gRowTH And wIll wAnT A comPAny THAT SuPPoRTS THeIR goAlS – now And AlSo In THe FuTuRe”General Manager, Sales, Marketing & Communications

Last year Talent Tightrope identified a fundamental shift in the psyche of Australia and New Zealand’s employees in terms of the triggers that would cause them to look for a new role. Previously ‘financial considerations’ had been the main push factor for almost two-thirds of employees (63%). In the midst of the downturn, this proportion dropped significantly to 45%, to be overtaken by ‘career development considerations’ highlighted by 58% of employees. ‘Work/life balance’ remained the third most important trigger, though in 2009 had decreased on the previous year by five percentage points (2008 47%; 2009 42%). (See Fig. 14)

The results clearly reflected a desire to safeguard themselves and their careers in an uncertain economic climate – a desire for long-term security over instant financial gratification. This year’s results show a further evolution in the mindset of employees. ‘Career development considerations’ continues to be the most important trigger for seeking a new role for 64% of employees, showing a marginal increase on last year’s figure. At the same time, ‘financial considerations’ has leapt forward with 57% of employees now nominating this factor as a trigger. ‘Company considerations’ has also moved forward for just over a third of employees (34%).

Employees, in many cases, will be looking for financial recompense for last year’s pay freezes and reductions. Money is clearly back on the table – but so too is a progressive and clear career path within an organisation with a good culture and a well defined, inspiring business strategy. Out of the downturn, 38% say they will be ‘much choosier about who they work for’.

Employees are highlighting a lack of career progression and boredom as their biggest issues. They are looking for different experiences and acknowledging this is crucial not only for attracting new staff but for retaining existing talent.

REASON FOR CHANGE


FIg 14 TRIGGERS FOR SEEKING NEW EMPLOYMENT

Career development e.g. lack of progression/ boredom/looking for different experiences

Financial considerations e.g. pay/bonuses/budgets

Work life balance e.g. too many or not enough hours/travel/flexible working

Workplace relationships e.g. relationship with managers/colleagues

Company aspects e.g. culture/strategy/ mergers and acquisitions

Changes in personal circumstances e.g. moving locations/starting family

2010

2009

2008Base: Employees, n=1,396

Q4.7 Employees: Which of these reasons are/would trigger you to seek a new role?

58%58%64%

63%

45%

57%

47%42%42%

35%37%34%

24%

32%

34%

39%35%31%


– Push factors.‘Career development considerations’ continues to be the most important trigger for seeking a new role for 64% of employees but ‘financial considerations’ has leapt forward from last year’s 45%, with 57% of employees now nominating this factor as a trigger.

– Show me the money. Employees, in many cases, will be looking for financial recompense for last year’s pay freezes and reductions.

– but show me the future. Employees want a progressive and clear career path within an organisation with a good culture and a well defined, inspiring business strategy.

– who are you?Out of the downturn, 38% of employees say they will be ‘much choosier about who they work for’.

“ InVeSTmenTS In TRAInIng And deVeloPmenT wIll become A mucH HIgHeR PRIoRITy FoR buSIneSSeS IF THey wISH To keeP THeIR HIgHeST PeRFoRmeRS FRom beIng PoAcHed oR SeekIng emPloymenT elSewHeRe”CEO, ICT

Two-thirds of employees (62%) feel they are working harder as a consequence of headcount reductions in the workforce and even more employers confirm this is the case (71%). Despite this, ‘work/life balance’ has remained in third place and held steady on last year’s result at 42%. This is an extremely telling response. One might assume that the added workload demands of covering for headcount losses would have pushed employees to cry for some relief. Not so. Employees appear to be demonstrating a lack of tolerance for underperformance. They are under no illusions about the emerging higher benchmarks for workloads and productivity. Over half of employers (54%) say they will ‘monitor or scrutinise people’s performance a lot more closely going forward’ (see Fig. 15) and employees understand this – almost two-thirds (60%) say they expect employers to be more demanding of new recruits in the aftermath of the economic downturn. (See Fig. 16)

Rather than looking for relief, employees are cognisant of the new workload regime and the majority are fine with it provided they are paid fairly, they are motivated by their work and they can see a progressive career path ahead of them.

NEW WORKLOAD REGIME


EMPLOYEES WORKING HARDER

EMPLOYEES’ PERCEPTION OF DEMANDS ON NEW RECRUITS

Q3.7 Employees: How has the loss of headcount in your organisation affected how hard you now have to work?

Q4.1 Employees: How much more or less demanding do you think your organisation as an employer will be of new recruits in the aftermath of the economic downturn?

FIg 15

FIg 16

I’m working much/somewhat harder

I’m working about the same amount

I’m working much/somewhat less hardBase: Employees n=885

Much more demanding

Somewhat more demanding

Neither more or less demanding

Somewhat less demanding

Much less demandingBase: Employees, n=1,322

62%

37%

34%

44%

1% 2%

4%

16%


– Putting in the hours. Two-thirds of employees (62%) feel they are working harder as a consequence of headcount reductions in the workforce and even more employers confirm this is the case (71%).

– The hard yards.Almost two-thirds (60%) of employees say they expect employers to be more demanding of new recruits in the aftermath of the economic downturn.

– High pressure jobs. Employees in the Sales, Marketing & Communications profession are expecting to feel the most pressure from new employers with 68% expecting greater demands.

– making the effort. Employees are cognisant of the new workload regime and the majority are fine with it provided they are paid fairly, they are motivated by their work and they can see a progressive career path ahead of them.

“ mAny oF ouR SenIoR STAFF ARe neARIng ReTIRemenT. enSuRIng knowledge IS noT loST PluS enSuRIng THe new STAFF HAVe THe bReAdTH oF knowledge wIll be cRucIAl To SucceSS”Project Director, Public Sector

To increase profitability, competitiveness and innovation, to grow and compete in their respective markets, it is imperative that employers have a strong, high-performing workforce. The majority (80%) of Australia and New Zealand’s employers is focussed on growth but 43% say currently they do not have the right team in place to grow their business.

A large majority of employers (84%) says their organisations made too many redundancies during the downturn. In addition, disregarding the nature of their exit, of all those employees that left the workforce during the downturn, employers say 23% were high performers.

This has had a significant impact on the strength of remaining teams. just over a third of employers (34%) believe their team has been weakened. Employees go further – over half (54%) say the team they work in is weaker. Consequently, the vast majority of employers (83%) say they are now focussed on building the right team for growth.

However, almost half of employers (43%) across the board say they face difficulties attracting staff to increase headcount. For those employers who say they don’t currently have the right team in place the difficulty is exacerbated – they have an even more urgent requirement to build their teams and a greater proportion (51%) is experiencing problems attracting staff.

Over half of employers (57%) agree that there is now more competition for candidates than before the downturn and 54% say most organisations in their industry are now hiring more. (See Fig. 17) Additionally, over half (54%) say that candidates are much more cautious about taking new roles. (See Fig. 18) Over a third of employees (38%) confirm that they will be ‘much choosier about who they work for’.

GETTING THE RIGHT TEAM


ORGANISATIONS STARTING TO HIRE MORE

CANDIDATES CAUTIOUS ABOUT TAKING NEW ROLES

Q3.13a Employers: Agreement - Most companies in my organisations industry are hiring more now (than they did during the economic downturn

Q4.13c Employers: Agreement - Candidates are a lot more cautious about taking new roles than before the downturn.

Disagree strongly

Disagree


Agree

Agree stronglyBase: Employers, n=406

Disagree strongly

Disagree


Agree


32%

45%

29%

26%

23%

19%

13%

9%

3%

1%

FIg 17

FIg 18


– How will my business grow?43% of employers say currently they do not have the right team in place to grow their business.

– Tech troubles.A larger than average proportion of employers in the ICT (62%) and Technical & Engineering (52%) professions say they don’t have the right team in place for growth.

– Top performers gone. Of all those employees that left the workforce during the downturn, employers say 23% were high performers and just over a third of employers (34%) believe their team has been weakened.

– Fighting for the high flyers.Over half of employers (57%) agree that there is now more competition for candidates than before the downturn and 54% say most organisations in their industry are now hiring more.

“ ulTImATely, THe delAy In SouRcIng THe RIgHT TAlenT wIll Reduce THe SPeed wITH wHIcH ouR buSIneSS needS To ImPRoVe ITS PeRFoRmAnce”HR Manager, Sales, Marketing & Communications

Employers face a twofold issue. Simply getting the headcount numbers they require is clearly challenging in the aftermath of the downturn and in the face of increasing skills shortages – doubling the pressure is the need to deliver results. Over half of employers (53%) acknowledge that when re-hiring they need to ‘raise the bar higher’ than before the downturn, but are they ‘raising the bar’ enough? (See Fig. 19)

just over half of employers (54%) say they are ‘taking more time to find the right candidates rather than simply filling the role’ since the downturn. This reported shift in focus towards quality is a move in the right direction. However, employers must maintain this focus as they backfill workforce gaps as well as hire for new roles – particularly since a third of employers (35%) say most of the hiring being done now is about replacing the people that were lost during the economic downturn.

To truly innovate, Australia and New Zealand’s employers need to find the best people. The best people are essential to uphold the crucial factors of successful business growth. The best people are high performers.

RAISING THE BAR


EMPLOYERS RAISING THE HIRING ‘BAR’

Q4.13a Employers: Agreement - When next re-hiring we now have to raise the bar higher than before the downturn.

Disagree


Agree


19%15%

38% 28%

FIg 19


– quality counts.Over half of employers (53%) acknowledge that when re-hiring they have to ‘raise the bar higher’ than before the downturn.

– Taking the time.54% of employers say they are ‘taking more time to find the right candidates rather than simply filling the role’ since the downturn.

“ ouR HIgH PeRFoRmeRS ARe Fully engAged wITH THe PuRPoSe oF THe buSIneSS, HAVe AlIgnmenT wITH THe oRgAnISATIon’S VAlueS And beHAVIouRS And Feel VAlued THemSelVeS”HR Manager, Accounting & Finance

Understanding the characterising traits of a high performer is key to identifying the best people to bring into a business. Employers say that high performers differ from average performers in their willingness to go the extra mile to exceed targets, their higher level of motivation and their enthusiasm. These manifest in a desire to continually improve themselves and maintain a positive attitude underpinned by loyalty and commitment. (See Fig. 20)

Using these definitions, employers on average classify just over one in three (35%) of their staff as high performers. Employees provide a very similar assessment of their work colleagues.

Employers are aware that high performers can have a wide impact within the business. Four in five employers (82%) say high performers inspire others (see Fig. 21) and employees agree, saying the key benefits of working in a high performing team are the level of motivation and job satisfaction they enjoy as well as financial rewards, pride, morale and skills exchange.

The majority of employers (81%) says that high performers also boost team productivity and their individual productivity is around 34% higher than that of an average performer. It is clear that high performers make a considerable difference to the performance of the business overall and drive growth.

With competition for good candidates increasing every day, employers must be able to attract the right people, have a robust process in place to ensure that new hires are high performers and take steps to retain the high performers currently in their organisations.

DISTINCTION OF HIGH PERFORMERS


FIg 20

FIg 21

WHAT DIFFERENTIATES HIGH PERFORMERS?

HIGH PERFORMERS’ EFFECT ON WIDER TEAM

Exceeding targets/gets the job done/goes the extra mile

Motivation

Attitude/willingness to work/positive attitude

Showing initiative

Always looking for new ways to better themselves/ improve/succeed/learn new things/challenge themselves

Loyalty to the business/commited/committed to the job

Inspire other employees

Better team productivity



Q4.6 Employers: What would you say is the difference between an high performer and an average performer?

Q4.11 Employers: Which of the following effects would you say high performers have on your wider team/organisation?

13%

11%

17%

81%

11%

29%

82%

11%


– on a high.High performers differ from average performers in their willingness to go the extra mile to exceed targets, their higher level of motivation and their enthusiasm.

– Proportions of performance. Employers on average classify just over one in three (35%) of their staff as high performers.

– benefits abound.81% say that high performers also boost team productivity and their individual productivity is around 34% higher than that of an average performer.

– Find and keep them. Employers must ensure that new hires are high performers and take steps to retain the high performers currently in their organisations.

CASESTUDYFINANCE


This large financial organisation was impacted by the downturn, although potentially to a lesser degree than some competitors. Hiring numbers decreased significantly, and the business was forced to focus on consolidation and cost containment. The organisation has an optimistic but conservative outlook for the future, feeling that the full effects of the downturn have not yet been realised.

During the downturn, the organisation implemented a number of strategies to try to contain costs. Employees were encouraged to take as much leave as possible, and take up the organisation’s policy of offering the option of buying an additional four weeks leave in any one year. In one part of the business, employees were offered a 5% reduction in their hours and pay which was seen to work well. There have also been pay and bonus freezes for senior management.

With both the industry and competitors picking up after the downturn, there is more competition for good employees. There is a concern that key talent may be tempted away from the organisation with the lure of increased pay, whereas last year people were holding onto the jobs they had. Staff turnover has increased since the downturn, perhaps as a result. “It is easy to forget what normal levels of attrition are. Now we have to start trying to retain staff and build teams back up after the downturn.”

After a number of redundancies were made before and during the downturn to cope with decreased business volumes, the focus now is on building those teams up again in the most efficient way. Some of the issues involved with re-building teams involve a lack of system process documentation and the need to train a lot of new employees at the same time. It can also take some time for new employees to get up and running and comfortable with a new culture and processes.

The downturn gave the internal hiring team the opportunity to reassess their relationship with the business, and to redefine their strategy and service offering. “We [the hiring team] want to be a strategic resourcing partner, rather than just a transactional recruitment consultant who ticks boxes.”

In reality, this means that the hiring team is able to be more proactive about finding new staff. Prior to the downturn and this change in strategy, the hiring team were often not informed about departing staff until they had already left, putting them under pressure to fill positions with little time available. Now, they are kept up to date with people’s development and performance management plans, giving them more time to recruit the right people.

The advantages of this new direction are myriad. Firstly, the organisation can fill jobs more efficiently. Secondly, it can target people with the right skills. Thirdly, it avoids time-pressured decision, giving more time to think about the best strategy they should use to find applicants for any given role. “We need to make quality recruitment decisions rather than rushing through and just doing the same as we did the last time round.” Aligning resourcing managers to key businesses has also helped with forecasts and networking opportunities in terms of finding new talent. The hiring team is also able to play a greater role in providing their knowledge and expertise to the hiring process, for example around leadership testing and cultural fit.

The reputation of the hiring team has improved as a result of the new strategy. Closer relationships are being forged within the business and feedback so far suggests that the quality of recruits has improved. Even though volumes have increased significantly since the downturn, the team is able to manage as they have warning of upcoming vacant positions and have time to consider the best way of filling the role. “We need to use our knowledge to use the right recruitment method for each position.” They are also aiming to leverage internal relationships and referrals from employees as a recruitment method.

Looking ahead, there is a perceived need to place more emphasis on the talent management scheme in order to retain employees once they have been recruited. As the market starts to pick up again after the downturn, there is a risk that turnover will continue to increase and managing this is likely to become a priority.

CASE STUDYFINANCE


CASESTUDYINDUSTRIAL


A large manufacturer, this organisation saw a significant drop in sales during the downturn. Decisions had to be made regarding profitability and in 2009 a retrenchment program affecting 15% of the workforce was implemented. The retrenchment was cost driven and based purely on business needs, rather than performance. This meant the organisation lost some very good employees. In the future, management wants to grow the business in a way that ensures that this situation does not happen again. Looking ahead, they are cautiously optimistic with ambitions for sustainable growth.

Despite the retrenchments, the downturn was also seen as a time of opportunity. The overall business strategy was reviewed in terms of how the company could better service their customers, including expanding its offer to create total solutions for the customer via a one-stop-shop approach. The company also reviewed who and where it should be selling products to — in effect, who their core customer should be — with a focus on sustained profitability which they see as key for long-term growth.

With the retrenchments came a drop in staff morale. This has been improving since the downturn, but slowly. Remaining staff have had to take on additional work as a result of the reduced workforce.

The organisation has acknowledged the stress that employees have been under during and since the downturn and has undertaken a number of initiatives to address this. The key initiative was an employee survey which covered a number of areas including motivation, participation, competence and health. As a result of this survey, the organisation is considering implementing some wellness programs and a high level of loyalty towards the organisation has been recorded, largely due to its proactivity in trying to improve staff wellbeing. “The focus is now on building stronger teams moving forward from the downturn.” Structured participation forums and focus groups are being conducted internally to encourage employees to discuss what is and is not working within the organisation.

The organisation is now going through a period of growth following the downturn. However, there is a skills shortage with regard to technicians who make up a large proportion of the workforce. The mining industry is attracting a lot of technicians as they are able to offer higher salaries than some other industries. As one way to counteract this skills

shortage, the organisation has doubled its training budget, and now has two technical trainers as opposed to one. Combined with the use of international training programs, the amount of training has significantly increased as a result. In addition to this focus on training, the organisation is developing an attraction and retention strategy for technicians, and is reviewing its remuneration strategy. There is also a talent management program in development. Although some of these initiatives may have happened despite the downturn, the downturn highlighted the fact that there was an urgent need to address the talent exodus taking place.

The recruitment process is a very structured and formal one. There is an in-house recruitment team who are given a request for any new employee. The team then has discussions with the hiring manager to assess what type of recruitment method is likely to be the most effective. If a recruitment agency is chosen then the agency is briefed and provided with a position description and the hiring manager is encouraged to liaise with the agency where possible. Online job advertising is also well utilised, as well as local newspapers. In addition, every job is advertised internally on the intranet.

The organisation takes a competency-based approach for recruitment and so an interview pack is developed with the hiring manager taking into account the core competencies required. Interviews, reference checks and medicals are all conducted as standard. The recruitment team is focused on trying to ensure that hiring managers are trained in knowing how to conduct interviews and talk to candidates. “The emphasis is on getting the selection correct because there are huge costs associated with poor selection.” To this end the recruitment team is reviewing the competencies that candidates are required to meet as currently there are too many for them to be applied effectively. In order to get the right people through, the organisation feels its process needs to be more streamlined and focused on the primary competencies required.

CASE STUDYINDUSTRIAL


03



RECOMMENDATIONS

“ we’Re ATTRAcTIng unSolIcITed cAndIdATeS oF A HIgH cAlIbRe due To THe SAFe, RelIAble And TRuSTed elemenTS oF ouR bRAnd”Manager, Human Resources

“ A lAck oF FoRwARd PlAnnIng on A wIde ScAle HAS exAceRbATed ouR SkIllS SHoRTAge”Manager, Technical & Engineering

Australia and New Zealand’s employers face a unique set of challenges in the new economic era. They need to replace workforce losses, retain their current teams, attract new employees to grow those teams and ensure new recruits are high performers. All this is set against a backdrop of a unique post-downturn business environment – increasingly competitive and with an imperative of escalating profitability and growth.

Well over half of Australia and New Zealand’s employers have indicated that they are under-resourced as a result of loss of headcount during the downturn. The key to positioning for growth is to have the strongest possible team in place. This means both retaining existing high performers and, for many employers, hiring more good people.

Given the new market dynamics of increased workforce liquidity, pressure on remuneration and competition for top talent, employers need to forecast their resourcing requirements through workforce planning and approach their hiring activities as a proactive, well-considered program.

Employers must have a clear picture of their Employee value Proposition – yet only 23% say they are now working harder to demonstrate to candidates why they should work for them. In a market where there is greater competition for candidates; and candidates are looking for more in order to move (triggers for seeking: career development 64%; financial considerations 57%) and becoming choosier about who they work for, employers have to have a sophisticated Employee value Proposition in place in order to differentiate themselves.

This clarity not only helps to explain to new recruits why they should work for the organisation but, importantly, why existing employees should stay. Over a third of employees (37%) will ‘use networks or word of mouth more’ when seeking a new role so the nature of what existing employees say about a company is critical. Measuring engagement through formal employee engagement surveys and getting regular feedback from the workforce will help employers keep their finger on the pulse of employee opinion, improve the current low level of loyalty (which has dropped further to 17% from last year’s low of 20%) and retain their current high performers.

What’s being said externally about a company is also of concern. The proportions of both active and passive job seekers have swelled this year to 29% and 33% of the workforce respectively. However, as skills shortages increase and competition for the best people intensifies the balance between sourcing from these two groups is likely to swing increasingly towards the passive candidate segment.

This shift means employers need to ensure their selection and hiring processes are clearly defined to protect the company brand. In a talent-short market more investment is typically made in ‘head-hunting’ activities. Hiring activities that target passive candidates need clear evaluation ‘gates’ early in the process so that unsuitable candidates can be identified and redirected without damaging the employer’s reputation. Taking passive candidates through a lengthy process only to decline to offer them a role at the end of it results in employment brand damage.

FOUNDATIONS OF GOOD HIRING



– Employers need to forecast their resourcing requirements through workforce planning and approach their hiring activities as a proactive, well-considered program.

– Employers must have a clear picture of what their Employee value Proposition is in order to differentiate themselves.

– This clarity not only helps to explain to new recruits why they should work for the organisation but, importantly, why existing employees should stay.

– Measuring engagement through formal employee engagement surveys and getting regular feedback from the workforce will help employers keep their finger on the pulse of employee opinion and retain current high performers.

– As skills shortages increase and competition for the best people intensifies the balance between sourcing from active and passive candidate groups is likely to swing increasingly towards the passive candidate segment.

– This shift means employers need to ensure their selection and hiring processes are clearly defined to protect the company brand.

– Hiring activities that target passive candidates need clear evaluation ‘gates’ early in the process so that unsuitable candidates can be identified and redirected without damaging the employer’s reputation.

“ ouR oRgAnISATIon needS To bReAk InTo new mARkeTS – FIndIng THe RIgHT PeoPle To do THIS eFFecTIVely IS VeRy ImPoRTAnT”HR Manager, Sales, Marketing & Communications

“ AT THe momenT we ARe noT cAPITAlISIng on oPPoRTunITIeS becAuSe we do noT HAVe THe RIgHT mIx oF PeoPle To do So…ouR gRowTH IS STunTed by ouR InAbIlITy To IdenTIFy THe RIgHT PeoPle”Director, Technical & Engineering

Once employers have laid the foundations of workforce planning and have clearly defined their Employee value Proposition they must then ensure that their recruitment procedures are rigorous and fit for the purpose of identifying the best performers to bring into their teams.

It is not surprising that almost all of Australia and New Zealand’s employers (95%) agree that robust hiring practices have a positive impact on successful hires. To this end, well over three-quarters of employers (79%) say their hiring process is ‘formalised’, 60% say they have streamlined or improved their hiring processes since the downturn and 43% say they now have a greater focus on better matching candidates to roles.

Yet Australian and New Zealand’s employers report that 44% of their hires are not good. (See Fig. 22) This is an astounding proportion. Their hiring practices are clearly not meeting the goal of bringing good people into their businesses. The bar is not being raised.

Employers acknowledge that the consequences of getting hires wrong are far reaching and go beyond simply the cost of back filling a role, highlighted by 17% as a concern and directly impacting profitability. Over a third (34%) are concerned about loss of productivity, one in five (21%) cites opportunity cost, 18% impact on customer service and 9% decreased business – all circumstances that will affect business performance in an increasingly competitive environment. (See Fig. 23)

The greatest concern, shared by 51% of employers, is the ramifications of poor hiring on teamwork and engagement. Another third (33%) is concerned about harmful effect on staff morale. Employees also highlight detrimental affects on team performance, morale and motivation. These are harder to enumerate and potentially crippling. Ultimately, all of these factors will negatively impact the pillars of business performance that are key to growth.

Australia and New Zealand’s employers cannot afford to make bad hiring decisions. They appreciate the importance of robust processes and good hires to the overall health and performance of their businesses, they say they have these processes in place, and yet they admit that nearly half of their hires are not good.

There is clearly a disconnect between employers’ perception of how robust their hiring procedures are and how effective they are in reality. Employers must address this discrepancy if they are to build the high performing teams that they clearly need.

HIRING MISFIRES


PROPORTIONS OF GOOD, AvERAGE AND BAD HIRES

Q6.5 Employers: Based on your past experiences, approximately what proportion of hires in your organisation would be considered good, average or bad?

A good hire

An average hire

A bad hireBase: Employers, n=315

56%

13%

31%

FIg 22

Q6.7 Employers: Comparatively, what is your level of concern with the following possible consequences of a bad hire? (Respondents chose two.)

FIg 23 CONSEQUENCES OF A BAD HIRE

Impact on teamwork/engagement

Loss of productivity

Impact on staff morale

Opportunity cost to your organisation

Impact on customer serviceThe cost to your organisation of

back-filling the roleDecreased business earnings/revenue


33%

21%

18%

17%

9%

34%

51%


– Employers must ensure that their recruitment procedures are rigorous and fit for the purpose of identifying the best performers to bring into their teams.

– The consequences of getting hires wrong are far reaching will adversely affect business performance in an increasingly competitive environment.

– Having a ‘formalised’ process is not enough – employers’ current hiring practices are not meeting the goal of bringing good people into their businesses.

– Hudson research shows that there is a clear disconnection between employers’ perception of how robust their hiring procedures are and how effective they are in reality.

– Employers must address this discrepancy if they are to build the high performing teams that they need to support the pillars of business performance – competitiveness, innovation and profitability – that are key to growth.

– A robust hiring process includes sophisticated measures to identify those who have the potential to be high performers and help employers get the right person into a role.

“ TIme And AgAIn we HIRe PeoPle wHo look good on PAPeR, buT don’T PeRFoRm wHen In THe buSIneSS”Strategy Director. Technical & Engineering

“ we wAnT To FInd cAndIdATeS wITH THe RIgHT culTuRAl FIT FoR uS – THeRe ARe PlenTy oF cAndIdATeS wITH THe RIgHT TecHnIcAl SkIllS”CFO, Accounting & Finance

With the end goal of supporting the key drivers of business growth, a robust hiring process includes sophisticated measures to identify those who have the potential to be high performers and help employers get the right person into a role. The Performance Driver Model provides a framework for understanding the drivers of individual performance and sets out the most appropriate method of assessing these. (See Fig. 24)

The drivers fall into three categories: ‘know how’, ‘can do’ and ‘want to’. The ‘know how’ category provides the basic measures of a candidate’s technical skills and experience – that they have the specific skills and experience necessary for the role. The ‘can do’ category assesses a candidate’s ‘capability’ and ‘attributes’ and provides a deeper insight into whether they are able and willing to apply their skills and experience to the role. These measures provide a clearer understanding of an individual’s behavioural capability that can be applied adaptively in our ever-changing organisations.

The ‘want to’ category assesses a candidate’s ‘motivational fit’ and ‘career fit’. These measures provide a much richer picture of the true depth of commitment a candidate will bring to a role – whether they will engage in the role, work harder, apply discretionary effort and be retained for longer. All of these measures are necessary to ensure hires are good.

The top three hiring tools/measures most frequently used by Australia and New Zealand’s employers are: ‘reference checking’, used by 88%; ‘resume screening’ used by 76%; and ‘background interview’ used by 66%. (See Fig. 26)

A similar pattern emerges in the tools and procedures employees say they have experienced during the interview and assessment process for a new role. The top three are again reference checking (82%), background interview (76%) and resume screening (69%). (See Fig. 27)

All of these measures fall into the ‘technical’ or ‘experience’ measurement categories. In fact, 63% of employers’ total hiring procedures and tools are focussed on the first ‘know how’ category. A third (30%) of their efforts address the ‘can do’ category and only 7% measure the ‘want to’ category. (See Fig. 25)

PERFORMANCE DRIvERS


FIg 24

PERFORMANCE DRIVER MODEL

cATegoRIeS meASuReS

PERFORMANCE (KNOW HOW)

Technical Skills

Experience

POTENTIAL (CAN DO)

Capability

Attributes

RETENTION (WANT TO)

Career Fit

Motivation

Q5.5 Employers: Which procedures/tools does your organisation currently use during the hiring process?

FIg 25TOOLS/PROCEDURES CURRENTLy bEING USED by EMPLOyERS by %

PERFORMANCE (KNOW HOW)

Technical TestingSkill TestingResume ScreeningBackground InterviewingReference Checking

POTENTIAL (CAN DO)

Behavioural InterviewingAssessment Centresjob TrialPersonality TestingIntelligence Testing

RETENTION (WANT TO) Cultural Fit Measures


LOw INDICATOR OF

PERFORMANCE

hIGh INDICATOR OF

PERFORMANCE

CURRENTFOCUS

EFFECTIVENESS

30%

63%

7%


– The Performance Driver Model provides a framework for understanding the drivers of individual performance and sets out the most appropriate method of assessing these.

– The drivers fall into three categories: ‘know how’, ‘can do’ and ‘want to’.

– The ‘know how’ category provides the basic measures of a candidate’s technical skills and experience – that they have the specific skills and experience necessary for the role.

– The ‘can do’ category assesses a candidate’s ‘capability’ and ‘attributes’ and provides a clearer understanding of an individual’s behavioural capability that can be applied adaptively in our ever-changing organisations.

– The ‘want to’ category assesses a candidate’s ‘motivational fit’ and ‘career fit’ and provides a much richer picture of the true depth of commitment the candidate will bring to the role.

– All of these measures are necessary to ensure hires are good.

– The tools employers currently use, which they perceive to be the most effective are the more basic tools ‘behavioural interviewing’, ‘reference checking’ and ‘background interview’.

“ we need To FInd THe RIgHT PeoPle wITH THe RIgHT communIcATIon And dRIVe – THIS IS AS ImPoRTAnT AS THe TecHnIcAl SkIllS”General Manager, ICT

“ ouR PeoPle ARe ouR PRoducT. we need To be Able To IdenTIFy HIgH PeRFoRmeRS RelIAbly oR we don’T HAVe A buSIneSS”Creative Director, SM&C

All 605 employers surveyed were asked their thoughts on the difference between an average and a high performer. Not a single employer cites ‘good references’, ‘years of experience/experience’, ‘education/qualifications’ or ‘where they have worked before’, yet these are the measures that employers are most commonly using to bring new people into their businesses.

Employers repeatedly cite ‘exceeding targets’, ‘high motivation’, ‘getting the job done’, ‘going the extra mile’, ‘enthusiasm’ and ‘a desire for personal achievement and continuous improvement’ as the characteristic traits of high performers. These are all measured by the ‘want to’ category.

And yet, almost half of employers (43%) say the biggest staffing challenge they face in the short to medium term is finding people with the right qualifications. This is not a rich performance indicator. This is basic ‘know how’.

The tools they currently use, which they perceive to be the most effective are ‘behavioural interviewing’ at 32% and ‘reference checking’ and ‘background interview’ both at 9%.

Employers predominantly are hiring on ‘know how’ – they are thinking far less about what the employee might want from their career and how much value they will deliver to the performance of the business. The key trigger for an employee to seek a new role is ‘career development considerations’ – they leave on a lack of career fit. This is a key component of the richer ‘want to’ category.

In short, employers are putting the majority of their hiring efforts into the most basic category of assessment with barely any emphasis on the measures associated with high performers. It is little wonder they are finding that 44% of their hires are not good.

Employers clearly need to drive a layer of sophistication through their hiring methods and understand better the direct relationship between the effectiveness of the procedures they use and the success of their hires.

They know they need high performers, they are going to be more demanding of their employees, they need to replace the gaps left in their organisations and build muscle to drive business performance. They know what sets high performers apart – it is imperative that they review their hiring procedures and tools to ensure that they are correctly indentifying them within the pool of potential candidates. Once these high performers have been brought into the business it is also crucial to understand what drives and motivates them, to show them a clear and progressive career path and therefore retain them.

‘WANT TO’ NOT ‘KNOW HOW’


FIg 26

FIg 27

TOP THREE HIRING TOOLS USED BY EMPLOYERS

TOP THREE HIRING TOOLS ExPERIENCED BY EMPLOYEES

Reference checking

Resume screening

Background interview (past work experience)

Reference checking

Resume screening

Background interview (past work experience)


Base: Employees, n=418

Q5.5 Employers: Which tools/procedures does your organisation currently use in the hiring process? (Respondents chose two.)

Q5.3 Employees: Which tools/procedures have you been put through during your most recent hiring process?

76%

69%

66%

76%

88%

82%


– Whilst employers say that motivation, desire for continuous improvement and a good cultural fit are the key attributes of high performers, they not measuring these aspects in candidates in their current hiring process.

– Employers are putting the majority of their hiring efforts into the most basic category of assessment with barely any emphasis on the measures associated with high performers.

– Unless all performance drivers are measured, employers cannot know that a candidate will ‘turn out’ to be a high performer – they are effectively guessing.

– It is possible to take this element of guesswork out of the hiring process by using the Performance Driver Model and employers should immediately do so – they cannot afford the ramifications of bad hires or to lose good people to competitors with more sophisticated methods.

– Identifying performance drivers in individuals also allows employers to understand what motivates each individual employee. Employers can then outline a clear and progressive career path and therefore retain them.

RESEARCH METHODOLOGY

Hudson commissioned Sweeney Research to conduct a robust qualitative and quantitative research study into the lingering impact of the recent economic downturn on Australia and New Zealand’s workforces and the ramifications for the hiring process going forward.

QUALITATIvE RESEARCH METHODOLOGY Initially two discussion sessions were carried out with senior Hudson employees to help guide the research process.

Following this, four qualitative in-depth interviews with key Hudson clients were conducted in order to produce case studies detailing how different employers in different industries felt the impact of the economic downturn and what this means for their workforce requirements going forward.

QUANTITATIvE RESEARCH METHODOLOGY1,690 employees and 605 employers were sourced from the Hudson database interviewed online in regards to their views, behaviour and approach to the hiring process in the post-downturn market.

The questionnaire responses were collected from 6-11 May 2010. Respondents were incentivised by a prize draw carried out internally by Hudson. No quotas, or screening criteria were set, however the data has been weighted to represent the total Hudson database by both industry and location, and employees currently not in employment were removed.

EMPLOYER RESPONDENT PROFILEThe charts below show the profile of the sample sourced from the Hudson client database:

58%

75%

INDUSTRY SECTOR

Government

Construction/Property/Engineering

Financial Services/Insurance

Retail

Healthcare (Government)

Professional Services

Information Technology

Resources/Mining

Utilities

Education

Manufacturing

Telecommunications

Advertising/Marketing/Media

FMCG

Healthcare (Private)

Non profit

Wholesale/Distribution

Tourism/Hospitality

Transport

Other

23%

15%

13%

9%

6%

6%

4%

4%

4%

3%

3%

3%

1%

1%

1%

1%

1%

0%

0%

2%

GENDER, ROLE IN HIRING DECISIONS AND NUMBER OF FULL TIME EMPLOYEES

Male

Hiring Manager

Less than 25

Female

HR function/dept.

26 to 99

Neither

100 to 199

200 or more

Don’t know/ Can’t say

42%

53%

28%

19%

6%

11%

7%

1%

GENDER:

ROLE IN HIRING DECISIONS


LOCATION AND WORK REGION

Australia

Melbourne

Wellington

New Zealand

Sydney

Auckland

Brisbane

Adelaide

Canberra

Perth

Newcastle

Darwin

Hobart

Christchurch

Metropolitan

Regional

Rural

COUNTRY:

CITY:

WORK REGION:

79%

21%

21%

21%

11%

8%

7%

7%

5%

0%

0%

9%

8%

4%

92%

8%

0%

PRACTICE AREA

Human Resources


ICT



Financial Services

Office Support

Public Sector

Legal

Other

26%

17%

14%

9%

8%

5%

5%

5%

1%

10%

54 POSITIONING FOR GROWTH: BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA

EMPLOYEE RESPONDENT PROFILEThe charts below show the profile of the sample sourced from the Hudson candidate database:

GENDER WORK STATUS AND ROLE TYPE

MaleFull time

Under 25 years

Executive or senior management

FemalePart time

On contract

25 to 29 years

Middle management 30 to 34 years

Non managerial professional/specialist

35 to 39 years

Admin/support staff40 to 44 years

None of these45 to 49 years

50 to 54 years

55 to 59 years

60 years or over

GENDER:WORK STATUS:


ROLE TYPE:

57%73%

43%8%

20%5%

16%12%

25%16%

36%15%

18%15%

4%14%

11%

7%

5%

LOCATION

Australia

Melbourne

Wellington

New Zealand

Sydney

Auckland

Brisbane

Perth

Adelaide

Canberra

Newcastle

Darwin

Hobart

Christchurch

COUNTRY:

CITY:

77%

23%

25%

19%

11%

8%

7%

4%

3%

0%

0%

11%

9%

3%

NUMBER OF FULL TIME EMPLOYEES AND WORK REGION

Less than 25

Metropolitan

26 to 99

100 to 199

200 or more

Don’t know/ Can’t say

Regional

Rural

NO. OF FULL TIME EMPLOYEES:

WORK REGION:

17%

13%

7%

57%

5%

92%

7%

1%

INDUSTRY SECTOR

Government

Financial Services/Insurance

Construction/Property/Engineering

Healthcare (Private)

Manufacturing

Professional Services

Telecommunications

Information technology

Retail

Resources/Mining

Utilities

Education

FMCG

Advertising/Marketing/Media

Tourism/Hospitality

Transport

Healthcare (Government)

Non profit

Wholesale/distribution

Other

17%

11%

7%

7%

6%

6%

6%

5%

4%

4%

4%

2%

2%

2%

2%

2%

1%

1%

1%

PRACTICE AREA



ICT


Office Support

Human Resources

Public Sector

Financial Services

Legal

Other

19%

15%

15%

12%

11%

6%

5%

3%

2%

11%

9%

POSITIONING FOR GROWTH: BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 55

Hudson.com

Adelaide + 61 8 8223 8800

Auckland +64 9 977 9800

Brisbane +61 7 3258 8333

Canberra +61 2 6229 1555

Christchurch +64 3 977 8500

Greater Western Sydney +61 2 8836 0222

Hunter/Central Coast +61 2 4927 2220

Melbourne +61 3 9623 6666

Mount Waverley +61 3 9535 8222

Perth +61 8 9323 0222

Sydney +61 2 8233 2222

Wellington +64 4 917 9200

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