Technology Market Landscape - Trends and Issues Q3 2013


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An overview of topical issues affecting the technology recruitment market in Q3 2013.

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  • Greythorn’s experienced Technology consultants, technology specialisation and absolute dedication to premium delivery creates loyal and valued partnerships with our key clients.
    Depth of Knowledge
    Greythorn Account Managers are experts in Technology recruitment with an average of 4 years tenure and 6 years Technology recruitment experience.
    Greythorn have been developing its brand and reputation over a 37 year period and is recognised today as one of the Australia’s leading specialist recruiters, by our candidates and clients. Our consultants are vertically aligned and are pure specialists, that are passionate about being recognised as leaders in their field.
    Premium Delivery
    Greythorn’s reputation in service delivery is unrivalled, our recent survey results showed:
    99% of our candidates would use us again and recommend us
    100% of our clients would use us again and recommend us
    Value Adds
    Premiums resume with detailed profile, premium reference checks, daily recruitment updates, automated SLA tracking, candidate and client care programs, comprehensive candidate evaluation process, regular IT market landscape presentations, free technical testing with TeckChek, salary surveys and market intelligence reports.
  • Nearly 1800 professionals voiced their opinion about the job market in Australia. All survey responses, comments and insights have been consolidated for this Australian Technology Recruitment Market Insights and Compensation Overview 2013-2014. These survey results are recognised throughout the Australian technology industry as an accurate representation of the industry and a market leading source of quality insights and opinions. The survey was carried out during the first quarter of 2013, and it was distributed in the form of an online questionnaire.
  • We received responses from a broad range of industries and job types. ICT Services & Software is clearly the most common with a third of responses falling into this industry.
    The top two job types are project based positions - Project Managers and Business Analysts. There is also a larger proportion of contractors within this survey than previous years with a smaller proportion of fixed term contracts within the category. This may indicate a strengthening of the technology project landscape and recognition that in the foreseeable future, project-based recruitment will be one of the pillars of growth and activity for our industry.
  • With nine out of ten people looking for a new role there is no bunkering down when it comes to IT.
    Technology professionals in Australia, are in their majority, optimistic about the future of the economy. Positivity from the candidate side grew this year, moving from 36% to 43%, however there were traces of negative sentiment with a third still having 1/3 a pessimistic outlook.
  • Job insecurity has ranked this year at historically high levels (highest since 2011) with one third of respondents feeling insecure or very insecure in their current role. This is probably linked to the rise of redundancy, which as we will see later is the second most common reason for leaving a permanent job.
    This insecurity was particularly evident within the contractor workforce, the biggest threat being the fear of having their contract terminated at short notice. Candidates within the Government sector were particularly insecure, perhaps due to the upcoming election and budget cuts within the public sector.
    The implications are simple – if your staff do not feel they are secure in their job they will look elsewhere before they are left high and dry
  • IT Professionals take permanent jobs for security and career, contract roles for interesting work and money and Fixed Term Contracts because they can’t find a permanent or contract role.
    Unusually we are not seeing a large difference in the level of job security felt by contract workers versus fixed term contract workers. This could lead to issues with securing high caliber talent for fixed term contracts. Permanent workers on the other hand are just not that worried with 84% feeling very secure or secure in their roles. This feeling of security ties into the high levels of optimism experienced by candidates in the technology market at the moment.
  • 43% of respondents are actively looking for work, an increase from 32% in 2012. This increase in numbers may stem from job insecurity and should raise alarms for anyone concerned with attrition. The 50% of respondents who are keeping an eye on the market will not apply for jobs via ads, but when offered a suitable opportunity they will consider it. Combined this is a huge proportion and presents both positive attraction opportunities and retention issues. Only 7% of respondents are in no way interested in changing roles.
  • Managers continue to underestimate the percentage of their workforce that is job hunting, while that same percentage of candidates job hunting continues to grow year on year. The fact that over 90% of candidates are looking for work should be quite shocking for employers: Greythorn’s Hiring Intentions survey revealed employers believe only 11-25% of their staff would consider changing roles.
  • With nine out of ten candidates looking for a new role and 38% of managers predicting increased headcount there is no bunkering down when it comes to IT.  This dynamism of the technology market continues despite the current economic and political climate.  Our survey shows that 67% of candidates believe there will be the same amount, if not more jobs available in the coming 12 months.
  • 69% of candidates have lost interest in a role because it took too long. The cost of losing a good candidate to a competitor, having to start a recruitment process from scratch and the damage caused to a company’s brand by taking too long means that speed to fill should taken very seriously by hiring managers. Speed to fill is a competitive advantage for only a few successful organisations.
  • Candidates are being LOST due to long recruitment process
  • Flexible working conditions remain a key consideration for technology candidates. Over half of respondents will consider working a 4 day week for pro rata salary. This proportion has been consistent for the past three years. Employers offering this flexibility are more likely to attract quality candidates, can increase gender diversity, improve retention and reduce costs. Corporate social responsibility expectations continue to grow and can be an important factor for a candidate to consider during the recruitment process. It is important for companies to promote their CSR contributions.
  • Repeat of slide 47 – Lets consolidate these into one on Slide 47?
  • Flexible working conditions remain a consideration for technology candidates. Over half of respondents will consider working a 4 day week for pro rata salary. This proportion has been consistent for the past three years. Employers offering this flexibility are more likely to attract quality candidates, can increase gender diversity, improve retention and reduce costs.
  • This year we have seen a significant rise in the number of people who have been in a role for 2 or less years willing to work 4 days per week. In 2012 only 27% of people who had been in a role less than one year were willing to work 4 days per week. In the space of a year this figure has jumped to 43%. Increasingly it seems that the less time a candidate has been in a role the more willing they are to work 4 days per week.
    As expected the 30-49 year old bracket are most interested in working 4 days per week possibly due to the interest in balancing work with family life.
    Role Tenure Breakdown for 2012
    Less than 1 year – 27%
    1-2 years – 26%
    3-5 Years – 30%
    6-10 Years – 9%
    Over 10 Years – 8%
  • The obvious pressure across many IT departments is on headcount, with team reductions stemming from ongoing corporate restructuring and rationalisation programs.
    In response to this we are witnessing a solid march towards SOW (Statement of Works) projects. This is not a superficial change; project-driven recruitment drives dramatically different financial implications at department and whole-of-company level, and is monitored and evaluated not only by the known HR (but also?) tracking and performance metrics.
    Candidates also believe project based recruitment is on the rise and remain positive with 28% believing there will be more jobs available in 2014.
    The decrease in remuneration rates of contractors in some states combined with the large number of candidates interested in new roles point towards improved opportunities for hiring talented contractors.
  • Technology Market Landscape - Trends and Issues Q3 2013

    1. 1. Technology Market Landscape Presentation – Q3 2013 1
    2. 2. Greythorn Overview Market Leader Greythorn is one of the most reputable specialist technology recruitment firms in Australia: • Largest Permanent IT recruiter in Australia: >500 IT placements per annum • Significant Contracting IT specialist supplier: >1000 new engagements placed per annum • Established in 1976 with offices in Melbourne, Sydney, Canberra, Brisbane, Chicago, Dublin, London, Sao Paulo, Seattle and Singapore. Key Differentiators • Vertical specialisation. We are experts in the professional markets we service. • Premium, value-based delivery. • Unrivalled consultant depth of experience, industry knowledge & tenure. Awards, Certifications & Memberships 2
    3. 3. Technology Industry Sentiment: The Survey 3
    4. 4. Greythorn Candidate Survey 4
    5. 5. Survey Demographics 5 Source: Greythorn Candidate Survey
    6. 6. Greythorn Hiring Manager Survey 6
    7. 7. Economic Outlook: Candidate & Manager In a significant change from last year Candidates are more optimistic than Hiring Managers. Optimism is also rising on the candidate side year on year with 43% having a positive view of the economy (36% in 2012). How are you feeling about the future of the economy? 7 Source: Greythorn Candidate and Client Survey
    8. 8. Perceived Job Security: Candidate Job insecurity sits at a record high with 33% of respondents feeling insecure or very insecure. How would you rate your job security? 8 Source: Greythorn Candidate Survey
    9. 9. Perceived Job Security: Candidate How would you rate your current job security? 9
    10. 10. Job Seeker Behaviour: Candidate 10 Source: Greythorn Candidate Survey
    11. 11. Job Seeker Behaviour: Manager Perception Only 4% of managers believe that more than half of their ICT workforce is looking for work. In reality, over 90% of candidates are passive job seekers indicating managers are not aware of potential retention issues. What % of IT staff do you believe are actively looking for a new role or keeping an eye on the market? 11 Source: Greythorn Client Survey
    12. 12. Hiring Intentions Employers are more bullish compared to candidates when predicting job growth. What are your hiring intentions over the next 12 months? 12 Source: Greythorn Client Survey
    13. 13. Topical Issue 1: The Recruitment Process 13
    14. 14. Recruitment Process Time Lines: Candidate The cost of being too slow; speed to fill is a strong competitive advantage. 14 Source: Greythorn Candidate Survey
    15. 15. Recruitment Process Time Lines: Manager Speed to hire when part of a quality selection process can be the cheapest comparative advantage in sourcing quality resources. Is it “not good enough talent” or “not ticking ALL the boxes”? Candidates report that the recruitment process has taken longer, would you agree with this? 15 Source: Greythorn Client & Candidate Survey
    16. 16. Topical Issue 2: Flexibility 16
    17. 17. Flexibility Flexible working conditions remain a key consideration for IT candidates and 4 day work week a popular option. 17 Source: Greythorn Candidate Survey
    18. 18. Corporate Social Responsibility 18 Source: Greythorn Candidate Survey
    19. 19. Flexibility – preferences for part time work “If offered the option, I would work 4 days per week for less salary (pro rata)” Part time roles can significantly increase the size of candidate pool, differentiate your job and reduce costs. Plus over 50% of candidates want it. 19 Source: Greythorn Candidate Survey
    20. 20. IT staff willing to work 4 days per week 20 Source: Greythorn Candidate Survey
    21. 21. Topical Issue 3: Contractors 21
    22. 22. Improved opportunity for hiring Contractors • • • • Project based recruitment pillar of growth for Technology industry Higher proportion of candidates contracting Contract remuneration down in NSW and QLD Contracts placements on the rise 22 Source: Greythorn Client Survey
    23. 23. Disclaimer This research was carried out by means of an electronic questionnaire. The remuneration tables are supplemented with data and market information that Greythorn has access to. The results are provided as generic market information only. Greythorn does not make any warranties regarding the use, validity, accuracy or reliability of the results and information obtained. Greythorn will not be liable for any damages of any kind arising out of or relating to use of this information. 23