Robert Walters Releases Quarter 3 2010 Update

Robert Walters Releases Quarter 3 2010 Employment Market Updates for New Zealand and Global Snapshots

Stability and Optimism Return To The Employment Market

To complement the annual Global Salary Survey published in January, the New Zealand offices of global recruitment firm Robert Walters today released their Employment Market Updates for Quarter Three of 2010.

These Market Updates provide an in-depth analysis of market changes, hiring trends and salary fluctuations in Quarter Three of 2010 for both permanent and contract workers across the Accounting & Finance; Banking & Financial Services; Information Technology; Legal; Procurement & Supply Chain, Sales & Marketing; and Secretarial & Business Support Sectors within the Auckland and Wellington markets

Richard Manthel, Managing Director of Robert Walters New Zealand commented:

“Quarter three of 2010 finally saw a period of stability return to the economy. After a tentative start to 2010 which saw many New Zealand organisations still subject to headcount freezes and restructuring, New Zealand business confidence finally began to return in the second quarter of the year and we saw companies begin to look forward, as they started to rebuild their teams, give the green light to large projects and once again concentrate on developing business. In turn, candidates who had elected to ‘stay put’ in jobs rather than risk a career move in an uncertain economy also began to actively explore new opportunities.

This cautiously optimistic approach on the part of both clients and candidates was a pretty consistent theme during quarter three as confidence in market conditions remained steady.

As candidates moved from ‘passive’ to ‘active’ job-seekers, significant movement began to take place across the market and created a domino effect as employers had to hire employees to fill the roles they had vacated. However, after the very trying economic conditions of the past two years, candidates were understandably risk-averse and still placed emphasis on finding the ‘right’ job which would offer them stability and career development opportunities.

We have noticed a couple of very encouraging signs which indicate a more bullish employment market. Firstly, many organisations are now focussing on hiring permanent headcount rather than relying on contract resource. Secondly, there has been a huge increase in hiring activity within the secretarial and business support market. This area was one of the main casualties of the recession as businesses drastically streamlined their administrative function so it is a very positive economic indicator that this area is growing. Such is the demand from both clients and candidates alike that Robert Walters has recently set up a dedicated Secretarial & Business Support division in Wellington.

He continued

“The Asia Pacific region is continuing to lead the way in terms of the global recovery. This is evidenced by the release of Robert Walters Plc’s quarter three interim financial statement which showed an increase in gross profit of 92% for the Asia Pacific region.”

QUARTER THREE NEW ZEALAND TRENDS

Robert Walters’ Quarter Three Employment Market Updates can be viewed in their entirety via the following links:

AUCKLAND MARKET UPDATES
Accounting & Finance
http://www.robertwalters.co.nz/resources/divisions/NZ/Auckland/AccountancyAndFinanceMarketUpdateQ3_2010.pdf
Banking & Financial Services
http://www.robertwalters.co.nz/resources/divisions/NZ/Auckland/BankingAndFinancialServicesMarketUpdateQ3_2010.pdf
Information Technology
http://www.robertwalters.co.nz/resources/divisions/NZ/Auckland/ITMarketUpdateQ3_2010.pdf
Secretarial & Business Support
http://www.robertwalters.co.nz/resources/divisions/NZ/Auckland/SecretarialandBusinessMarketUpdateQ3_2010.pdf
Sales & Marketing
http://www.robertwalters.co.nz/resources/divisions/NZ/Auckland/SalesandMarketingMarketUpdateQ2_2010.pdf
Supply Chain
http://www.robertwalters.co.nz/resources/divisions/NZ/Auckland/SupplyChainMarketUpdateQ3_2010.pdf

WELLINGTON MARKET UPDATES
Accounting & Finance
http://www.robertwalters.co.nz/resources/divisions/NZ/Wellington/AccountancyAndFinanceMarketUpdateQ3_2010.pdf
Information Technology
http://www.robertwalters.co.nz/resources/divisions/NZ/Wellington/ITMarketUpdateQ3_2010.pdf
Legal
http://www.robertwalters.co.nz/resources/divisions/NZ/Wellington/LegalMarketUpdateQ3_2010.pdf
Professional Services
http://www.robertwalters.co.nz/resources/divisions/NZ/Wellington/ProfessionalServicesMarketUpdateQ3_2010.pdf


KEY TRENDS
Key trends emerging from these Employment Market Updates within specific disciplines include:

Secretarial & Business Support

• The high levels of candidate movement within the Support area which started in quarter two continued in quarter three as unprecedented numbers of candidates approached Robert Walters for advice as they gained the confidence to seek new opportunities in an improving market

• Given the trying conditions experienced throughout 2009 and redundancies still experienced in the support market, candidates remained wary in quarter three of 2010 and their main motivations when seeking a new job focused on an organisation’s stability and reputation in the market and ensuring that the role offered job security and satisfaction. This marked a definite shift from the traditional candidate focus on remuneration and company benefits

• Quarter three saw a high number of New Zealanders with overseas experience return to the market and these candidates were able to secure roles quickly

• Key areas of demand include front line reception and customer services staff. The number of one-on-one personal assistant positions are declining as managers become more self-sufficient, however, there is still a strong requirement for experienced assistants who are capable of supporting management groups and teams

Information Technology

• There was a strong increase in hiring permanent staff over contract work. This arose as companies continued to rebuild teams where headcount had been severely reduced in 2009. Contract work was still available but certainly not at the levels witnessed in the first half of the year

• As a result of regrowing teams, there was an increase in requirements for candidates at operational levels including system administrators and engineers. Hard to find technologies include Citrix, VMware and Unix.

• Business intelligence was regarded as becoming more ‘useful’ in helping businesses analyse areas that could be improved so we saw a strong demand for report analysts/writers with data warehouse experience

• As business confidence continued in quarter three, we saw greater candidate movement which created increased market momentum as the roles they replaced had to be filled. Many ‘passive’ candidates started to actively seek a new role

• We expect to see the demand for permanent resources continue into quarter four as business restructures and new business ventures into expanding markets also increase the need for permanent headcount.

Sales & Marketing

• There was a significant increase in recruitment activity in the sales and marketing areas in quarter three, with the focus on hiring permanent headcount as recruitment freezes and hiring restrictions became a thing of the past
• Due to a competitive economy, we saw a strong focus on candidates who could engage with and retain customers through traditional and new channels. A progressive area was a new focus on social media with many companies looking to identify candidates who could help them understand the relevance and value of this channel

• However, there was still a strong focus on ROI from companies and hence a demand for candidates who were comfortable demonstrating this through analytics and insights

• Within the contract market, the greatest demand was within the banking and financial services sector for candidates who could quickly establish themselves, drive internal products or legislative updates

• The length of contracts was often extended and contractors were retained within the business in quarter three as teams unloaded tasks that they had absorbed during headcount freezes

Accounting & Finance

• Improved market confidence was illustrated by the increased volume of work throughout quarter three. Sectors that continued to perform well included telecommunications, manufacturing, FMCG, logistics and engineering

• Clients increased the speed and efficiency of their recruitment process as they recognised the need to move quickly in order to secure the best candidates

• The contract market continued to grow and the flow of work progressively increased in comparison to the second half of the year. Activity was focused on recruiting contractors for specific projects which had finally been given the go-ahead, including systems upgrades and implementations. Demand was largely at the lower end of the market, with key requirements being accounts payable, accounts receivable and accounts assistants and towards the end of quarter three, this resulted in candidate shortages in these areas

• There was a steady increase in the flow of permanent work coming in, although not at the same levels experienced by the contract division. On the whole, demand was at the relatively senior level and compliance-focussed and included finance managers, financial accountants, systems accountants and group reporting accountants

• Candidate shortages are expected to worsen towards the end of quarter four and we predict that this will cause upward movement for salaries and hourly rates

Banking & Financial Services

• Activity in the third quarter slowed after an encouraging first half of the year

• The retail and financial institutions remained strong, however a decrease in recruitment indicated a conservative approach for the remainder of 2010

• The financial services sector also struggled to regain strength and confidence

• The market remained largely optimistic and we saw a steady flow of candidates seeking opportunities. This steady supply of candidates created a competitive market in which clients could still dictate that candidates met key job requirements when filling a role

• There was more demand for traditional finance and accounting roles at the senior end of the market and with tighter regulations and legislative change in the industry there was a greater focus on risk and compliance, with clients restructuring and implementing strong frameworks around this area

Legal

• As more confidence returns to the economy, private practice firms are getting busier and there has been a marked increase in hiring compared to 18 months’ ago

• Billing expectations have now returned in private practice firms and in turn, so has the demand for transactional lawyers
• The in-house commercial sector remains with hiring at a minimum, especially in the financial services area

• The public sector has remained steady, however, there has been an increase in the number of contract roles as it still seems difficult for some government departments to obtain sign-off for permanent positions

• There has been no general increase in salaries in the past 12 months

• The recession was not as deeply felt in New Zealand as it was in finance-based economies such as the UK and the US so the legal market has bounced back with the demand for high calibre lawyers again increasing.

Procurement & Supply Chain

• With increased market confidence and steady market conditions, candidates began to tentatively explore the recruitment market as the perceived ‘risk’ of changing employers lessened

• There was an increase in demand for interim staff across both the supply chain and procurement markets at the mid to senior end of the market

• Demand for procurement professionals in the ICT category continued as companies explored either cost reductions or investment risk reduction in this area

• Demand and supply planning continued to be a key areas of focus for the FMCG markets with clients placing more focus on the improvement of internal operations processes, materials management and compliance

• The outlook for the fourth quarter of 2010 continues to look stable and we expect to see an ongoing demand for procurement and supply chain professionals with excellent communication and relationship management skills, balanced with strong commercial and analytical skills

INTERNATIONAL TRENDS

Trends noted by Robert Walters’ offices around the globe in the last quarter include the following:

United Kingdom

• Recruitment levels in the UK increased quarter on quarter, although not quite at the pace of earlier in the year
• Banking and financial services institutions saw high levels of counter offers and ‘buy backs’ as talent shortages emerged – firms started to guarantee bonuses to secure the best professionals
• Risk candidates experienced salary rises of up to 30%
• Change in accountancy recruitment continued with continuing move to recruit value add roles/drive the business forward as opposed to those controlling costs
• Legal recruitment once again increased despite the summer slow down – financial services firms began to hire lawyers once again
• As banks hired new front office and senior executives, the demand for secretarial and administrative staff to support them increased
• The outlook for the future is positive across most sectors and increased hiring is anticipated in quarter four and into the New Year


Australia

• There was a high demand for IT professionals across all areas, with rates increasing in 2010 as the market became increasingly candidate-short.
• In the Telco and digital space there was high demand for iPhone and mobile application specialists and UI/UX professionals

Commerce

• There has been a sharp increase in demand for permanent hires since November 2009
• Demand for candidates with resources/energy experience is at an all time high
• In Sydney, demand has steadily increased throughout the year for accountants with one to five years’ post-qualified experience
• FMCG, infrastructure, Telco’s and resources have been the most active sectors
• The contracting market has been constant with a tendency to recruit on a ‘fixed-term’ basis

Banking & Finance

• Temporary and contract demand in operations and finance was up 100% in Q3 from Q2.
• Risk and compliance remain in highest demand as compliance and risk frameworks come under greater scrutiny
• A product accounting gap appeared in early 2010
• There is a strong demand for accountants with three to five years’ post-qualified experience



Singapore

• There was an increase in requirements for contract assignments of 6-12 months’ duration across all functions as companies still faced permanent hiring restrictions. This trend is expected to continue into the fourth quarter of the year

• There is a burgeoning HR industry in Singapore with a high number of HR generalist/partner functions being recruited, together with a focus on learning & development positions

• FMCG, Oil and Gas, Healthcare, Retail, IT&T and Financial Services have remained strong throughout 2010 and we expected this to continue into 2011

• The war for talent is once again rife in Singapore as the market returns to conditions experienced prior to the Global Financial Crisis, with particular shortages in the following key areas: cost accountants, product controllers within financial services, strong sales professionals across industries, telecommunications pre-sales specialists and many disciplines within HR

Thailand

• The banking sector led the way with the most activity in quarter three, primarily within the front office functions
• Manufacturing and export remained very buoyant in Thailand
• The automotive sector was up by 175% year on year, with literally hundreds of positions available
• The stable political environment helped Thailand up its GDP forecast from 7% to 10%

ENDS

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