Hudson 20:20

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

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

The Hudson 20:20 Series Sweeney Research
Released annually, the Hudson 20:20 Series is Hudson Australia/ Hudson commissioned Sweeney Research to conduct a robust
New Zealand’s flagship research publication. The series investigates qualitative and quantitative research study into the lingering impact
talent management issues that have a critical impact on business of the recent economic downturn on Australia and New Zealand’s
performance. Recent topics include: Talent Tightrope – Managing the workforces and the ramifications for the hiring process going forward.
Workplace through the Downturn; Candidate Buying Behaviour; and
Seven Key Drivers of Mature-aged Workers.

About Hudson
Hudson 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.

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

CONTENTS
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

FOREWORD

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

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

INTRODUCTION

Positioning for Growth – Building The whitepaper looks closely at This year’s research included of
a Dynamic Workforce in a New the job-seeking behaviour of qualitative in-depth interviews
Economic Era is the latest employees, at what is now driving and discussions with key
whitepaper in the Hudson 20:20 them to seek new roles and what Hudson clients to produce case
Series. It assesses the fallout of they are looking for in their roles studies detailing how different
the downturn in Australia and and ongoing careers. It also employers in different
New Zealand’s businesses and explores what employers need to professions felt the impact of the
workforces, with specific focus do to make sure that their teams economic downturn and what
on today’s increasing labour and workplaces are cohesive and this means for their workforce
market liquidity. It also provides high performing and therefore requirements going forward.
recommendations on how to find drive greater profitability
This initial phase was followed
and retain high performing and growth.
by extensive online survey-based
employees in an increasingly
Released annually, the Hudson interviews of 1,690 employees
competitive, skills-short market.
20:20 Series is Hudson and 605 employers in regard to
Australia/New Zealand’s the impact of the downturn on
flagship research publication. their organisations/workplaces
The series investigates talent and their views, behaviour and
management issues that have approach to job seeking and the
critical impact on business hiring process in the post-
performance. Recent topics downturn market. Full details of
include: Talent Tightrope – the research design can be
Managing the Workplace through found in the Research
the Downturn; Candidate Buying Methodology section (See pages
Behaviour; and Seven Key 54 and 55).
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.

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

SUMMARY
OF KEY
FINDINGS

NEW ECONOMIC ERA employees’ true feelings. employers say they are focussed
growth returns Accurate perception of on growth but to grow they need
Australia and New Zealand’s employees’ mood, particularly the the processes in place to identify
employers are showing a strong fact that loyalty is low, is crucial. innovative, competitive and
degree of confidence in the motivated people who can, and
Restless workforce
post-downturn market – 29% want, to succeed.
The proportion of employees
say their organisations’ outlook who say they value their job less Rebuilding revenue
is ‘upbeat and opportunistic’ and over the previous year has Over half of employers (51%)
56% is ‘cautiously optimistic’. doubled, from 5% in 2009 to report that their profit/revenue
For those employers who 10% in 2010. Employers report decreased, 38% downgraded
reported some negative impact noticing this shift in their their profit outlook, and 13%
as a result of the downturn, 92% workforces already – over half was forced to cut prices. One in
agree we have now emerged (51%) agree that ‘a lot of five employers reduced or
from the worst. A quarter say employees are now looking for cancelled bonuses for all staff
they are ‘back to business as jobs because they feel they have and 11% of employers
usual’. However, 67% say whilst more choice than during the implemented pay cuts for some
‘the worst is over’ they are ‘still downturn’. A quarter of or all staff. The pockets of many
feeling the effects’ of the employers (24%) also think their employees were hit and there
downturn to some degree. current employees feel less will be an expectation amongst
Prudent optimists satisfied with their jobs. many in the workforce that they
Of those still feeling the effects, must be recompensed to keep
workforce losses
52% say they expect to stop them in their roles.
About four in 10 employers
feeling negative effects within a (43%) made roles redundant
year, and a further third (36%)
TIME FOR CHANGE
during the downturn. Overall, Skills shortages return
within 18 months. Employees employers lost 11% of their Nearly three-quarters of
are in agreement – 52% and workforce through voluntary employers (73%) faced skills
32% expect to be back to redundancy, enforced shortages prior to the downturn.
normal within a year and redundancy or staff leaving of During the downturn, this
18 months respectively. their own accord. Organisations proportion decreased to 44%.
Employees are much less ‘cut the fat’ but results suggest This year, the proportion of
concerned about the wider many also ‘cut into the muscle’. employers reporting a skills
economy than this time last year Almost two-thirds of both shortage has risen swiftly to its
– 22% are not worried at all, and employers and employees (59%) current 57%. Employees are
a further 54% are prudently believe their organisations to be seeing greater liquidity and
optimistic. under-resourced following loss therefore more choice in the
wake-up call heard of headcount. workplace. For them the
Last year’s great divide in the Fostering innovation movement has begun.
workplace has diminished and A third of employers (32%) Job seeking swells
employers have a much more report the business market has Almost two-thirds (62%) of
realistic view of the mood of their become more competitive as a employees are actively or
workforces. This year, 17% of result of the downturn. Over half passively job seeking – a marked
employees say they feel ‘more of the employers surveyed (53%) increase on last year’s 49%. Of
loyal’ to their organisation in the report that ‘some scheduled the two-thirds of employees
aftermath of the downturn and business development/plans seeking new roles, almost all
18% of employers agree – were put on hold’. Four in 10 (93%) are planning to be in a
almost exactly in tune with


new role within 18 months. getting the right team performers. Further, 82% say three hiring tools/measures
Nearly two-thirds (61%) of those The majority (80%) of employers high performers inspire others used (most frequently) by
planning to switch jobs aim to do are focussed on growth but and 81% say they boost team Australia and New Zealand’s
so within six months – 39% of 43% say currently they do not productivity. employers are: ‘reference
these within the next three have the right team in place to checking’ used by 88%; ‘resume
months. In short, roughly 40% of grow their business. A large RECOMMENDATIONS screening’ used by 76%; and
all employees have a personal majority of employers (84%) Foundations of good hiring ‘background interview’ used by
goal to be in a new role within the says their organisations made Employers must develop a 66%. All of these measures fall
next six months. too many redundancies during sophisticated Employee value into the ‘know how’ category. In
the downturn and 23% of total Proposition in order to fact, 63% of employers’ total
Reason for change differentiate themselves – only
losses were high performers. hiring procedures and tools are
‘Career development 23% say they are now working
just over a third (34%) believe focussed only on the ‘know how’
considerations’ continues to be harder to demonstrate to
teams have been weakened and category. Almost a third (30%)
the most important trigger for candidates why they should
83% are now focussed on of their efforts address the ‘can
seeking a new role for 64% of work for them. Over a third of
building the right team for do’ category and only 7%
employees, showing an increase employees (37%) will ‘use
growth. Over half (57%) agree measure the ‘want to’ category.
on last year’s 58%. At the same networks or word of mouth more’
that there is now more
time, ‘financial considerations’ when seeking a new role. Thus, ‘want to’ not ‘know how’
competition for candidates than
has leapt forward with 57% of the nature of what existing All 605 employers were asked
before the downturn and 54%
employees now nominating this employees say about a company their thoughts on the difference
say most organisations in their
factor as a trigger. ‘Company is critical. between an average and a high
industry are now hiring more.
considerations’ has also moved performer. Not a single employer
forward for 34% of employees. Raising the bar Hiring misfires cites ‘good references’, ‘years of
Out of the downturn, 38% say Over half of employers (53%) Well over three-quarters of experience/experience’,
they will be ‘much choosier acknowledge that when re-hiring employers (79%) say their hiring ‘education/qualifications’ or
about who they work for’. they have to ‘raise the bar process is ‘formalised’, 60% says ‘where they have worked before’
higher’ than before the downturn they have streamlined or yet these are the measures that
new workload regime improved their hiring processes
and 54% say they are ‘taking employers are most commonly
Two-thirds of employees (62%) since the downturn and 43%
more time to find the right using to bring new people into
feel they are working harder as a says they now have a greater
candidates rather than simply their businesses. The tools they
consequence of headcount focus on better matching
filling the role’ since the currently use, which they
reductions in the workforce and candidates to roles. However,
downturn. However, 35% say perceive to be the most effective
even more employers confirm employers report that 44% of
most of the hiring being done are ‘behavioural interviewing’ at
this is the case (71%). Despite their hires are not good. They are
now is about replacing the 32% and ‘reference checking’
this, ‘work/life balance’ has held concerned about the
people that were lost during the and ‘background interview’ both
steady on last year’s result at consequences of bad hires: 51%
economic downturn. at 9%. Employers clearly need to
42%. Over half of employers about the negative impact on drive a layer of sophistication
(54%) say they will ‘monitor or distinction of teamwork and engagement; 34% through their hiring methods and
scrutinise people’s performance high performers loss of productivity; 34% impact understand better the direct
a lot more closely going forward’ Employers classify 35% of their on morale; 21% opportunity cost; relationship between the
but employees understand this staff as high performers. 18% impact on customer service; effectiveness of the procedures
– almost two-thirds (60%) say Employees provide a very similar and 9% decreased business. they use and the success of
they expect employers to be assessment of their work
Performance drivers their hires.
more demanding of new recruits colleagues. Employers say high
in the aftermath of the performers are 34% more Performance drivers fall into
economic downturn. productive than average three categories: ‘know how’,
‘can do’ and ‘want to’. The top


01


NEW ECONOMIC ERA


GROWTH
RETURNS

“THe economIc Last year saw the worst This positivity wanes somewhat
downTuRn ReSulTed recession to hit the globe in in both employers’ and
In my oRgAnISATIon 70 years. Despite the fact that employees’ account of the
TIgHTenIng ITS
the local Australian and impact of the downturn on their
PuRSe STRIngS –
we’ll conTInue To New Zealand markets coped organisations. Two-thirds of
be ASked To cuT well in comparison to the rest of employers (66%) report there
ReSouRceS buT the world, our business was some ‘negative impact’ on
we’Re bAck on A environments and workforces their organisations during the
SuSTAInAble TRAck”
were adversely affected. downturn, but only a small
Manager, Accounting & Finance However, our economies have proportion (15%) reports this
rallied and, for both countries, was ‘significant’. A quarter (25%)
the economic outlook is broadly say that the downturn had ‘no
positive. impact whatsoever’ on their
organisations and a further 9%
Employers and employees agree
report a ‘positive’ impact.
their organisations have a strong
Employees are in agreement –
degree of confidence in the
67% report some negative
post-downturn markets in both
impact, with the proportion
Australia and New Zealand. A
describing the impact as
third of employers and a quarter
‘significant’ only marginally
of employees, (29% and 25%
higher at 18%.
respectively) say their
organisations’ outlooks are Of those employers and
‘upbeat and opportunistic’, with a employees who report there was
further 56% and 57% some negative impact as a result
respectively citing an outlook of of the downturn, almost all agree
‘cautious optimism’. A high that we have now emerged from
proportion (85% of employers the worst (92% and 93%
and 82% of employees) is respectively). A quarter of this
feeling positive about the future. group of employers (25%) goes
(See Fig. 1) 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)


– Australia outpacing
new Zealand.
FIg 1 OvERALL OUTLOOK Whilst 29% of Australian
employers who were
Employers 29% 56% 12% Q2.5 Employers and Q2.6 negatively impacted by the
Employees: How would
you describe the overall downturn report they are
outlook of your
Employees 25% 57% 14% organisation in today’s now back to business as
post-downturn market?
usual, the proportion is
Outlook upbeat and opportunistic much lower in
Outlook one of cautious optimism
Outlook one of uncertainty
New Zealand at 14%.
Outlook is bleak
Don’t know
– Technology jobs
Base: Employers, n=574
Base: Employees, n=1,633
weather well.
Most sectors report similar
effects with the exception
of ICT and Technical &
FIg 2 CURRENT FEELING Engineering where a
higher proportion of
Employers 8% 67% 25% Q2.3 Employers and Q2.4
employees reports
Employees: Which best
describes how your
organisation currently feels ‘no impact’ (36% and
about the recent economic
Employees 7% 69% 24% downturn? 31% respectively).

Currently experiencing the worst of the effects of the – Victorian victory.
economic downturn
The worst of the economic downturn is over, but it is still
80% of victoria’s
having an effect employers who are still
The worst of the economic downturn is over, and we’re back to
business as usual feeling the negative
Base: Employees, n=1,138 effects, expect a recovery
in the next 12 months
EMPLOYEES BY PROFESSION – well above the 52% for
Public Sector 4% 82% 15% employers overall.
Office Support 5% 70% 25%
ICT 6% 67% 27%
Sales, Marketing & Communications 8% 71% 21%
Accounting & Finance 10% 66% 24%
Technical & Engineering 6% 70% 25%
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


PRUDENT
OPTIMISTS

“we’Re now PlAnnIng For employers in Australia and Amongst Australia and New
FoR A PeRIod oF New Zealand still feeling the Zealand’s employees in general,
gRowTH, THeRe’S An effects of the downturn, there is some signs of the personal
oPTImISTIc AIR In THe
optimism that the end is in sight. stresses under which they were
comPAny THAT we’Ve
mISSed” Over half of these employers placed during the last 12 months
CMO, Sales, Marketing & (52%) say they expect to stop linger. However, employees’ level
Communications feeling these negative effects of concern regarding the
within a year, and a further third stability of the wider economy
(36%) within 18 months. today is significantly less than
Employees who felt negatively that expressed at the same time
impacted are in agreement – last year. Hudson’s 2009 20:20
52% and 32% expect to be Series whitepaper Talent
back to normal within a year and Tightrope reported climbing
18 months respectively. concern amongst employees of
(See Fig. 3) 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)


– light on the horizon.
For employers in Australia
WHEN DO YOU ExPECT TO STOP
FIg 3 FEELING NEGATIvE EFFECTS? and New Zealand still
feeling the effects of the
Employers 13% 39% 36% 8% 4% Q2.4 Employers and Q2.5
downturn, there is
Employees: When does
your organisation expect to
stop feeling the negative optimism that the end is
effects from the downturn?
Employees 18% 34% 32% 13% 3% in sight.

Within 6 months – employees’ pain
In 6 to less than 12 months lingers.
In 12 to less than 18 months
Amongst Australia and
In 18 months to 2 years
More than 2 years New Zealand’s employees
Base: Employees, n=574
in general, some signs of
the personal stresses
under which they were
EMPLOYEES’ CURRENT LEvEL OF placed during the last
FIg 4 CONCERN ABOUT THE ECONOMY 12 months remain.
5% Q2.2 Employees: Which of
– but worries alleviated.
the following best
describes how you feel
about the economy now? Only 24% of employees
19%
22% report being extremely/
quite worried about the
current economy, fewer
than last year’s 35%.
54%

I am extremely worried
I am quite worried
I am a little bit worried
I am not worried at all


WAKE-UP CALL
HEARD

“THe downTuRn Signs are good that Australian Similarly with motivation – last
HAS mAde A bAd and New Zealand’s workplaces year 42% of employers thought
ImPReSSIon on my are more cohesive environments their workforce was ‘more
emPloyeeS And we
than last year. The results of last motivated’, compared to the 22%
know we’Re now
beIng Held To THAT year’s Hudson 20:20 Series of employees that actually felt
‘ImPReSSIon’” whitepaper Talent Tightrope that way. This year results for
HR Manager, Office Support clearly highlighted a great divide employees remain roughly the
between the sentiment of same – 24% report feeling ‘more
employees and their employers’ motivated’ in the aftermath of the
perception of this sentiment. In downturn. However, 18% of
every aspect measured – loyalty, employers this year report
job satisfaction, motivation, thinking their employees are
morale, stress levels, job security ‘more motivated’, demonstrating a
– employers consistently much more accurate perception
thought that employees’ of the mood of their workforce.
sentiment was twice as good as
Australian and New Zealand
it was in reality. Now, a year on,
employers have clearly woken up
it’s evident that this divide has
to the mood of their people and
greatly diminished.
it’s important that they maintain
Overall, employers have a much this clarity. Accurate perception
more realistic view of the mood of employees’ mood, particularly
of their workforces. In 2009, the fact that loyalty is low, is
20% of employees reported going to become crucial to every
feeling ‘more loyal’ to their employer as we move further
organisation as a result of the along the economic recovery
downturn. This year, the path. Employees are becoming
proportion of employees who more optimistic about the
say they feel ‘more loyal’ to their economy in general and with this
organisation in the aftermath of feeling a renewed sense
the downturn has decreased of choice and power is
marginally to 17%. However, the becoming apparent.
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)


– Realism reigns.
Employers have a much
CHANGES TO ATTITUDES FOLLOWING
FIg 5 THE DOWNTURN more realistic view of the
ARE EMPLOYEES MORE OR LESS LOYAL mood of their workforces.
IN THE AFTERMATH OF THE DOWNTURN?
– loyalty low.
Employers Aust/NZ 18% 57% 25% Q2.10 and Q2.11 Employers Accurate perception of
and Employees: How are
you/the employees in your employees’ mood,
organisation feeling now, in
Employees Aust/NZ 17% 62% 21%
the aftermath of the particularly the fact that
economic downturn, in
terms of loyalty/motivation? loyalty is low, is crucial to
every employer.
ARE EMPLOYEES MORE OR LESS MOTIvATED
IN THE AFTERMATH OF THE DOWNTURN? – Flight risk.
Employees’ optimism
Employers Aust/NZ 18% 61% 21% about the economy in
general is breeding a
Employees Aust/NZ 24% 60% 16% renewed sense of choice
More
and power.
Same
Less


RESTLESS
WORKFORCE

“we’Re STRugglIng In 2009 58% of employees said Indeed, employees are
To keeP THe they valued their jobs more as a displaying a fair amount of
good PeoPle result of the downturn – a figure ambivalence towards the
wHo HAVe noT
that, rather than denoting a organisations they work for.
leFT yeT AS moRe
oPPoRTunITIeS oPen dedication to their employer, may Exactly half has felt no change
uP And beTTeR JobS have demonstrated a pragmatic in how positively they feel about
become AVAIlAble” response to a difficult economic their organisation since the
Finance Manager, Accounting climate. In 2010, the proportion downturn, with the other half
& Finance of those who say they value their roughly split down the middle of
jobs more in the aftermath of the feeling more and less positive
downturn has dropped back to (27% and 23% respectively).
44%. (See Fig. 6) Ultimately, well over a third of
employees (38%) report they
The majority (46%) feels about
are more likely to switch jobs in
the same as last year, but the
the aftermath of the downturn,
proportion of those employees
underscoring a sense of
who say they value their job less
restlessness and foretelling
has doubled, from 5% in 2009
greater liquidity in the workforce.
to 10% in 2010. This is a notable
During the downturn the
shift, influenced not only by their
pendulum of power swung
increasingly optimistic outlook
towards the employer but it’s
but also an increasing sense of
rapidly swinging back.
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.


– mood of malcontent.
The proportion of those
CHANGES TO jOB vALUE FOLLOWING
FIg 6 THE DOWNTURN employees who say they
DO EMPLOYEES vALUE THEIR jOBS MORE OR LESS value their job less in the
IN THE AFTERMATH OF THE DOWNTURN? last year has doubled,
Employers Aust/NZ Q2.13 Employers and from 5% in 2009 to 10%
50% 44% 6% Employees: Do you/do you
think your employees value in 2010.
your/their job(s) more or
less in the aftermath of the
Employees Aust/NZ 44% 46% 10% economic downturn? – expanding horizons.
Over half of employers
More
(51%) agree that ‘ a lot of
Same
Less employees are now
looking for jobs because
they feel they have more
choice than during the
downturn’.
FIg 7 DO EMPLOYEES HAvE A GREATER SENSE OF CHOICE? – Tossing the coin.
Accounting & Finance
Q3.13b Employers:
Agreement - A lot of employees are the most
employees are now looking
22% for jobs because they feel likely to be switching jobs
they have more choice than
during the economic (46%).
downturn.
51% – changing fortunes.
27%
During the downturn the
pendulum of power swung
towards the employer but
it’s rapidly swinging back.

Disagree + disagree strongly
Neither agree nor disagree
Agree strongly + agree


WORKFORCE
LOSSES

“IT’S HARd To FInd Despite the clear positivity and Many of the cost-cutting
THe bAlAnce optimism Australia and New initiatives implemented by
beTween SAVIng Zealand’s organisations are now employers during the downturn
coSTS And HAVIng
demonstrating the fact remains had a direct impact on
enougH PeoPle To
geT THe Job done that many experienced minimal employment levels within
wITHouT SIgnIFIcAnT growth, in some cases decline, their organisations.
ReSouRcIng throughout the last year. The
PReSSuRe” About four in 10 employers
defensive measures that they
Manager, Office Support (43%) made roles redundant
were forced to take have directly
during the downturn. This alone,
impacted competitiveness,
has had a significant impact on
innovation and profitability – all
the output of the workforce but
crucial factors in successful
employment levels were also
business performance.
impacted in a number of other
Organisations are clearly facing ways. Almost half of employers
problems with the size of their (46%) implemented headcount
workforces. When asked about freezes; 42% implemented
ways in which the downturn hiring freezes and 12% offered
affected their organisations, half voluntary redundancies.
of employers report that some
Overall, employers report that
roles were merged or made
they lost 11% of their workforce
redundant (50%); almost half
through voluntary redundancy,
(43%) report that ‘workloads
enforced redundancy or staff
increased for most in the
leaving of their own accord
organisation’; a third (31%)
during the economic downturn.
report that their company
(See Fig. 9)
‘underwent a restructure’ and a
quarter (22%) that ‘some Organisations have slimmed
divisions, services or offices down. They ‘cut the fat’ but
were merged or closed’. these results suggest many ‘cut
(See Fig. 8) 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.


– new Zealand
roles suffer.
TOP 10 WAYS IN WHICH THE DOWNTURN
FIg 8 AFFECTED ORGANISATIONS Almost half (49%) of
employers from New
Some scheduled business developments/plans put on hold 53% Q2.2 Employers: In which of
these ways has your Zealand says they made
organisation been affected
Profit/Revenue decreased 51% by the recent economic redundancies, compared
downturn?
to 41% in Australia.
Some roles in the company were merged or made redundant 50%
New Zealand employers
Workloads increased for most in the organisation 43% are also more likely to
Downgraded profit outlook 38% have cancelled bonuses
for management
Market has become more competitive 32%
(31% vs. 20% in Australia).
Company underwent a restructure 31%
– wA and Victoria down,
Some divisions, services or offices were merged or closed 22% SA up.
Company forced to cut prices 13%
Results show that WA and
victoria’s workforce
losses, at 15% were
significantly higher than
the average of 11%, whilst
FIg 9 TOTAL PERCENTAGE OF WORKFORCE LOST SA fared relatively well
with a workforce loss of
TOTAL AUS 11% Q3.4 Employers: What
percentage of your only 4%.
workforce left, either
victoria 15% through voluntary
redundancy, enforced – levels of losses.
redundancy or of their own
Western Australia 15% accord, during and since the 9% of redundancies
economic downturn?
New South Wales 10%
during the downturn were
at executive or senior
Queensland 9% management level, while
South Australia 4% middle management
comprised 21% of losses.
TOTAL NZ 10%
The majority were in non
Auckland 14% managerial professionals/
Base: Employers, n=348 who lost staff specialists (38%) and
admin/support staff (32%).


FOSTERING
INNOvATION

“ouR mARkeT IS An increasingly competitive Employers are clearly focussed
PReTTy cuTTHRoAT market is defining a tight on replacing losses within the
SInce THe downTuRn timeframe within which workforce, but if they are to hit
– we’Re STRugglIng
organisations need to respond to all of these targets –
To comPeTe wITH A
SmAlleR TeAm” these effects. A third of competitiveness, innovation
Strategy Director, Sales, employers (32%) report the and profitability – the people they
Marketing & Communications business market has become bring in must be good hires. Four
more competitive as a result of in 10 employers say they are
the downturn. Organisations need focussed on growth and to grow
to find the right people if they are they need the processes in place
to stay ahead of the game. to identify innovative, competitive
and motivated people that can,
To outpace their competition
and want, to succeed. They need
organisations also need to
high performers.
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.


REBUILDING
REvENUE

“we FAce PRoblemS Organisations’ difficulties are Almost a quarter (22%) reduced As – Sales/marketing/ to
companies attempt both
bRIngIng SAlARIeS compounded by the fact that or cancelled bonuses for repair communications.
these losses and begin to
bAck uP To many are now less profitable. management. One in five hire back in,likely than other
More it’s imperative that
comPeTITIVe leVelS
Now that they have such an employers reduced or cancelled they do so profitably have they
professions to – that
gIVen Two yeARS
oF below HISToRIc urgent requirement to hire, they bonuses for all staff and 11% of get the workforce they need
downgraded profit outlook
bonuS And PAy have tighter budgets with which employers implemented pay cuts with limited budgets and that
(42%) and to report that
RISe leVelS. we to do so. They are being asked to for some or all staff. The pockets any people costs has back into
the market put become
RISk loSIng good do more with less. Over half of of many employees were hit and the business are contributing to
more competitive (47%).
PeoPle”
employers (51%) report that their there will be an expectation the bottom line.
Director, Accounting & Finance – Financial Services.
profit/revenue decreased; well amongst many in the workforce
Significantly more likely
over a third (38%) report that they that these cost cuts, that directly
than other professions
downgraded their profit outlook; affected their personal financial
to have undergone a
and 13% were forced to cut situations, must be recompensed
merger (23%).
prices. These are stark figures. to keep them in their roles. This
will be of particular importance if – Public Sector.
Again, cost-cutting initiatives put
employers are forced to pay Significantly more likely
in place during the downturn
higher rates to secure new staff than other professions to
compound employers’ financial
as skills become increasingly say their workload has
challenges. Over a third of
scarce. (See Fig. 10) increased (63%).
employers (37%) implemented
pay freezes for some or all staff. – 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.
FIg 10 INITIATIvES TAKEN DURING THE DOWNTURN
% ORGANISATIONS Q3.1 Employers: Which, if
WHO TOOK INITIATIvE any, of the following
initiatives did your current/
Headcount freeze 46% most recent employer take
(i.e. could still replace current headcount) during the economic
downturn?
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 11%
for some/all staff
Pay cuts for some/all staff 5%


CASE
STUDY
HEALTHCARE


CASE
STUDY
HEALTHCARE

This large healthcare company There is a general feeling that There is a drive to refine the
weathered the downturn without the pool of potential employees recruitment process and
any real impact on the is greater than before the streamline it across the
organisation. “It’s been business downturn. Employees who organisation as a whole.
as usual.” However, with previously stayed with a Currently, different areas of the
Government PBS reforms, and company for job security during business have varied procedures
the Government stimulus the downturn are now feeling and there is seen to be a need to
package no longer having an more comfortable about looking put in place a more rigorous and
impact, the retail side of the around for new opportunities. consistent process. In place of
company has seen consumer This trend is reflected in the interviews and resume checks,
spending drop off during 2010. Employee Engagement survey the organisation wants to put in
Whilst the company is aware that conducted in 2010 which place additional tools such as
this is a common trend across revealed low levels of rational psychometric personality testing
retail in general, it is a concern and emotional commitment to which are seen as less
for the management team the company, with a substantial subjective. Setting up
looking forward. decrease in employees claiming relationships with just a few
they intended to stay with the recruitment agencies is seen as
The level of confidence is far
organisation in the future. This is the most effective means of
lower than it was six months ago,
seen as an area of particular maintaining a consistent quality
although as yet this is unlikely to
concern, especially if the of candidates. These agencies
have filtered down to employees.
organisation hits hard times. would be required to work more
There has been a recruitment
as partners than suppliers, with
freeze recently imposed across The data from the 2010
a good understanding of the
the whole organisation, with any Employee survey is still being
business and therefore
new recruitment requiring disseminated and strategies
cognisant of the behavioural and
specific justification. If the have yet to be developed.
leadership characteristics that fit
downward trend continues However, the survey is seen as a
the company’s culture and needs.
through 2010, as predicted, it is vital tool to gauge employee
likely that there will be a sentiment and inform the “There is a lot to be said for
renewed focus on reducing executive team. The focus is on getting the right person in the
costs, through reduced work being action-oriented, and in right role rather than getting
hours or even head count. particular learning from teams bums on seats.” One of the likely
where engagement is higher and implications of the recruitment
In terms of resourcing, one
applying this information to other freeze may be that as soon as it
section of the business has just
areas of the business. is lifted there will be a rush to
undergone a move from manual
employ new staff in case it is
to automated systems and this There has been a move towards
re-imposed. The organisation
has affected staff morale. There focussing on greater
wants to ensure that any
has been some staff turnover as development and rigour around
recruitment is strategic in nature.
a result of the changes, and employee potential and
The repercussions of a bad hire
change in the skills sets required, performance, and putting
are wide-reaching and setting
particularly in more senior roles. measurements around these. As
up more thorough and
Other areas of the business have part of this move, management
structured practices is seen to
remained fairly stable. is considering the skill sets
minimise the risk of recruiting
needed for each role to ensure
the wrong person.
that each position is filled by the
most appropriate person.


02


TIME
FOR CHANGE


SKILLS SHORTAGES
RETURN

“THeRe weRe Some Three-quarters of Australia and On the other hand, employees
RedundAncIeS New Zealand’s employers (73%), perceive greater turnover within
wITHIn THe InduSTRy across all industry sectors agree the workplace than their
buT THe SkIlled
that prior to the downturn they employers have actually
cAndIdATeS ARe
VeRy quIckly were battling with skills recorded. While one in five
SnAPPed uP by shortages across all professions. employers (21%) report greater
oTHeR comPAnIeS During the downturn, this staff turnover within their
And THe RemAInIng proportion decreased organisations since the
oneS ARe noT
significantly and suddenly to downturn, this proportion is far
AlwAyS THe beST
oR HIgHeST 44%. This year, following the higher for employees. Over a
PeRFoRmeRS” downturn, employers are once third (35%) report greater
HR Manager, Technical & again feeling the skills pinch – turnover amongst their teams
Engineering the proportion of employers and colleagues. The accuracy of
reporting a skills shortage has employees’ perception of
risen swiftly to its current 57%. turnover, in this context, is of
(See Fig. 11) Indications are lesser importance compared to
strong that skills shortages will the fact that they are seeing
continue to increase steadily greater liquidity and therefore
throughout the year –17% of more choice in the workplace.
employers already are saying it Their confidence in the labour
will be much harder to find talent market is increasing. For
because many good people left employees the movement has
their industries altogether during clearly begun.
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.


– Feeling the skills pinch.
The proportion of
SKILLS SHORTAGES: BEFORE,
FIg 11 DURING AND AFTER employers reporting a skills
shortage has risen swiftly
Prior to the downturn 73% 21% 6% Q2.9 Employers: How
much of a skills shortage to its current 57% from
During the downturn 44% 32% 24% do you think there is/was
44% during the downturn.
prior to, during and
Following the downturn 57% 26% 17% following the economic
downturn? – Turning tide.
Skills shortage
No skills shortage
Over a third of employees
Skills surplus (35%) report greater
turnover amongst their
teams and colleagues.
They are seeing greater
liquidity and therefore
more choice in the
workplace.


jOB SEEKING
SWELLS

“IT’S HARd To In 2010, as employees become Throughout the workforce a
ReTAIn STAFF generally less concerned about renewed vigour in employees’
AS conFIdence the wider economy and perceive underlying desire for change is
ImPRoVeS And moRe
increasing power to move jobs clearly evident. Of the two-thirds
RoleS become
AVAIlAble In oTHeR those seeking a new role have of employees seeking new roles,
oRgAnISATIonS” increased in number accordingly. almost all (93%) are planning to
Manager, Technical & Almost two-thirds (62%) are be in a new role within
Engineering actively or passively job seeking 18 months. (See Fig. 13)
– a marked increase on last year. Nearly two-thirds (61%) of those
In 2009, 22% of employees planning to switch jobs aim to do
were actively seeking a new role. so within six months – 39% of
In 2010 this proportion has these within the next three
increased to 29%. Similarly, in months. These figures forewarn
2009 27% were passively of a staggering degree of
seeking – this year the movement within Australia and
proportion has increased to New Zealand’s workforces.
33%. (See Fig. 12) 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.


– more on the market.
Almost two-thirds of
FIg 12 CURRENT jOB SEEKING STATUS employees (62%) are
actively or passively job
2009 2010 Q4.4 Employees: Which of
the following best describes seeking. This is a
Actively seeking a new job 20% 29% your current job-seeking
marked increase on
status?
Passively seeking a new job 27% 33% last year’s 49%.
Plan to stay in current job 53% 38%
– Set on seeking.
*Note that sample has been sourced differently from Public Sector employees
2009 to 2010: comparison is indicative only
are the most fervent job
seekers with 38% actively
looking for a new role.
– exodus begins.
FIg 13 WHEN EMPLOYEES PLAN TO MOvE jOBS Roughly 40% of all
employees have a
Q4.6 Employees: When
do you think you’ll be personal goal to be in a
moving jobs?
22% new role within the next
six months.
25%
39%

11%

1% 2%
In the next 3 months
>3-6 months time
>6-12 months time
>12-18 months time
>18-24 months time
Longer than 24 months


REASON FOR
CHANGE

“THe mAJoRITy oF Last year Talent Tightrope Employees, in many cases, will
emPloyeeS ARe identified a fundamental shift in be looking for financial
lookIng FoR cAReeR the psyche of Australia and recompense for last year’s pay
gRowTH And wIll
New Zealand’s employees in freezes and reductions. Money is
wAnT A comPAny
THAT SuPPoRTS terms of the triggers that would clearly back on the table – but
THeIR goAlS – now cause them to look for a new so too is a progressive and clear
And AlSo In THe role. Previously ‘financial career path within an
FuTuRe” considerations’ had been the organisation with a good culture
General Manager, Sales, main push factor for almost and a well defined, inspiring
Marketing & Communications two-thirds of employees (63%). business strategy. Out of the
In the midst of the downturn, this downturn, 38% say they will be
proportion dropped significantly ‘much choosier about who they
to 45%, to be overtaken by work for’.
‘career development
Employees are highlighting a
considerations’ highlighted by
lack of career progression and
58% of employees. ‘Work/life
boredom as their biggest issues.
balance’ remained the third most
They are looking for different
important trigger, though in
experiences and acknowledging
2009 had decreased on the
this is crucial not only for
previous year by five percentage
attracting new staff but for
points (2008 47%; 2009 42%).
retaining existing talent.
(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%).


– Push factors.
‘Career development
FIg 14 TRIGGERS FOR SEEKING NEW EMPLOYMENT considerations’ continues
64%
to be the most important
Career development e.g. lack of progression/ Q4.7 Employees:
58% Which of these trigger for seeking a new
boredom/looking for different experiences
58% reasons are/would
trigger you to seek a role for 64% of employees
57% new role?
Financial considerations but ‘financial
e.g. pay/bonuses/budgets 45%
63% considerations’ has leapt
42% forward from last year’s
Work life balance e.g. too many or 42% 45%, with 57% of
not enough hours/travel/flexible working
47%
employees now
34%
Workplace relationships e.g. relationship nominating this factor
with managers/colleagues 37%
35% as a trigger.
34%
Company aspects e.g. culture/strategy/ – Show me the money.
32%
mergers and acquisitions Employees, in many cases,
24%

31% will be looking for financial
Changes in personal circumstances
e.g. moving locations/starting family 35% recompense for last year’s
39%
pay freezes and
2010
2009
reductions.
2008
– 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’.


NEW WORKLOAD
REGIME

“InVeSTmenTS In Two-thirds of employees (62%) Rather than looking for relief,
TRAInIng And feel they are working harder as a employees are cognisant of the
deVeloPmenT wIll consequence of headcount new workload regime and the
become A mucH
reductions in the workforce and majority are fine with it provided
HIgHeR PRIoRITy
FoR buSIneSSeS even more employers confirm they are paid fairly, they are
IF THey wISH To this is the case (71%). Despite motivated by their work and they
keeP THeIR HIgHeST this, ‘work/life balance’ has can see a progressive career
PeRFoRmeRS FRom remained in third place and held path ahead of them.
beIng PoAcHed
steady on last year’s result at
oR SeekIng
emPloymenT 42%. This is an extremely telling
elSewHeRe” response. One might assume
CEO, ICT 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)


– Putting in the hours.
Two-thirds of employees
FIg 15 EMPLOYEES WORKING HARDER (62%) feel they are
working harder as a
4% Q3.7 Employees: How
consequence of
has the loss of headcount
in your organisation
affected how hard you now headcount reductions in
have to work?
the workforce and even
34% more employers confirm
this is the case (71%).
62%
– The hard yards.
Almost two-thirds (60%)
of employees say they
expect employers to be
more demanding of new
I’m working much/somewhat harder
I’m working about the same amount
recruits in the aftermath of
I’m working much/somewhat less hard the economic downturn.
Base: Employees n=885

– High pressure jobs.
Employees in the
Sales, Marketing &
EMPLOYEES’ PERCEPTION OF Communications profession
FIg 16 DEMANDS ON NEW RECRUITS are expecting to feel the
most pressure from new
Q4.1 Employees: How much
more or less demanding do employers with 68%
you think your organisation
as an employer will be of expecting greater demands.
44% new recruits in the
aftermath of the economic
downturn? – making the effort.
Employees are cognisant
37%
of the new workload
regime and the majority
16%
are fine with it provided
they are paid fairly, they
1% 2% are motivated by their
work and they can see a
Much more demanding
Somewhat more demanding progressive career path
Neither more or less demanding ahead of them.
Somewhat less demanding
Much less demanding


GETTING THE
RIGHT TEAM

“mAny oF ouR To increase profitability, However, almost half of
SenIoR STAFF ARe competitiveness and innovation, employers (43%) across the
neARIng ReTIRemenT. to grow and compete in their board say they face difficulties
enSuRIng
respective markets, it is attracting staff to increase
knowledge IS noT
loST PluS enSuRIng imperative that employers have a headcount. For those employers
THe new STAFF HAVe strong, high-performing who say they don’t currently
THe bReAdTH oF workforce. The majority (80%) have the right team in place the
knowledge wIll be of Australia and New Zealand’s difficulty is exacerbated – they
cRucIAl To SucceSS”
employers is focussed on growth have an even more urgent
Project Director, Public Sector but 43% say currently they do requirement to build their teams
not have the right team in place and a greater proportion (51%)
to grow their business. is experiencing problems
attracting staff.
A large majority of employers
(84%) says their organisations Over half of employers (57%)
made too many redundancies agree that there is now more
during the downturn. In addition, competition for candidates than
disregarding the nature of their before the downturn and 54%
exit, of all those employees that say most organisations in their
left the workforce during the industry are now hiring more.
downturn, employers say 23% (See Fig. 17) Additionally, over
were high performers. half (54%) say that candidates
are much more cautious about
This has had a significant impact
taking new roles. (See Fig. 18)
on the strength of remaining
Over a third of employees
teams. just over a third of
(38%) confirm that they will be
employers (34%) believe their
‘much choosier about who they
team has been weakened.
work for’.
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.


– How will my
business grow?
ORGANISATIONS STARTING TO
FIg 17 HIRE MORE 43% of employers say
currently they do not have
Q3.13a Employers:
Agreement - Most the right team in place to
companies in my
organisations industry are grow their business.
29% hiring more now (than they
did during the economic
downturn – Tech troubles.
32% A larger than average
proportion of employers in
23% the ICT (62%) and
13% Technical & Engineering
(52%) professions say they
3% don’t have the right team in
place for growth.
Disagree strongly
Disagree – Top performers gone.
Agree
Of all those employees that
Agree strongly left the workforce during
the downturn, employers
say 23% were high
performers and just over a
third of employers (34%)
CANDIDATES CAUTIOUS ABOUT
FIg 18 believe their team has been
TAKING NEW ROLES
weakened.
Q4.13c Employers:
Agreement - Candidates are
a lot more cautious about – Fighting for the
taking new roles than before
the downturn. high flyers.
26% Over half of employers
45% (57%) agree that there is
now more competition for
candidates than before the
19%
9% downturn and 54% say most
organisations in their
1% industry are now hiring more.

Disagree strongly
Disagree
Agree
Agree strongly


RAISING
THE BAR

“ulTImATely, THe Employers face a twofold issue. To truly innovate, Australia and
delAy In SouRcIng Simply getting the headcount New Zealand’s employers need
THe RIgHT TAlenT numbers they require is clearly to find the best people. The best
wIll Reduce THe
challenging in the aftermath of people are essential to uphold
SPeed wITH wHIcH
ouR buSIneSS the downturn and in the face of the crucial factors of successful
needS To ImPRoVe increasing skills shortages – business growth. The best
ITS PeRFoRmAnce” doubling the pressure is the people are high performers.
HR Manager, Sales, Marketing need to deliver results. Over half
& Communications 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.


– quality counts.
Over half of employers
EMPLOYERS RAISING
FIg 19 THE HIRING ‘BAR’ (53%) acknowledge that
when re-hiring they have
Q4.13a Employers:
Agreement - When next to ‘raise the bar higher’
re-hiring we now have to
15% 19% raise the bar higher than than before the downturn.
before the downturn.
– Taking the time.
54% of employers say they
are ‘taking more time to
38% 28%
find the right candidates
rather than simply filling the
role’ since the downturn.

Disagree
Agree
Agree strongly


DISTINCTION
OF HIGH
PERFORMERS

“ouR HIgH Understanding the The majority of employers (81%)
PeRFoRmeRS ARe characterising traits of a high says that high performers also
Fully engAged wITH performer is key to identifying boost team productivity and their
THe PuRPoSe oF
the best people to bring into a individual productivity is around
THe buSIneSS, HAVe
AlIgnmenT wITH business. Employers say that 34% higher than that of an
THe oRgAnISATIon’S high performers differ from average performer. It is clear that
VAlueS And average performers in their high performers make a
beHAVIouRS And willingness to go the extra mile considerable difference to the
Feel VAlued
to exceed targets, their higher performance of the business
THemSelVeS”
level of motivation and their overall and drive growth.
HR Manager, Accounting &
Finance enthusiasm. These manifest in a
With competition for good
desire to continually improve
candidates increasing every day,
themselves and maintain a
employers must be able to
positive attitude underpinned by
attract the right people, have a
loyalty and commitment.
robust process in place to
(See Fig. 20)
ensure that new hires are high
Using these definitions, performers and take steps to
employers on average classify retain the high performers
just over one in three (35%) of currently in their organisations.
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.


– on a high.
High performers differ
WHAT DIFFERENTIATES
FIg 20 HIGH PERFORMERS? from average performers
in their willingness to go
Exceeding targets/gets the job done/goes the extra mile 29% Q4.6 Employers: What
would you say is the
the extra mile to exceed
Motivation 17% difference between an targets, their higher level
high performer and an
Attitude/willingness to work/positive attitude 13%
average performer? of motivation and their
enthusiasm.
Showing initiative 11%
Always looking for new ways to better themselves/
11% – Proportions of
improve/succeed/learn new things/challenge themselves
performance.
Loyalty to the business/commited/committed to the job 11%
Employers on average
classify just over one in
three (35%) of their staff
as high performers.
– benefits abound.
HIGH PERFORMERS’ EFFECT
FIg 21 ON WIDER TEAM 81% say that high
performers also boost
Inspire other employees 82% Q4.11 Employers: Which of
the following effects would
team productivity and their
Better team productivity 81% you say high performers individual productivity is
have on your wider team/
Base: Employers, n=418 organisation? 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.


CASE
STUDY
FINANCE


CASE
STUDY
FINANCE

This large financial organisation With both the industry and In reality, this means that the The reputation of the hiring team
was impacted by the downturn, competitors picking up after the hiring team is able to be more has improved as a result of the
although potentially to a lesser downturn, there is more proactive about finding new staff. new strategy. Closer
degree than some competitors. competition for good employees. Prior to the downturn and this relationships are being forged
Hiring numbers decreased There is a concern that key change in strategy, the hiring within the business and
significantly, and the business talent may be tempted away team were often not informed feedback so far suggests that
was forced to focus on from the organisation with the about departing staff until they the quality of recruits has
consolidation and cost lure of increased pay, whereas had already left, putting them improved. Even though volumes
containment. The organisation last year people were holding under pressure to fill positions have increased significantly
has an optimistic but onto the jobs they had. Staff with little time available. Now, since the downturn, the team is
conservative outlook for the turnover has increased since the they are kept up to date with able to manage as they have
future, feeling that the full downturn, perhaps as a result. people’s development and warning of upcoming vacant
effects of the downturn have not “It is easy to forget what normal performance management plans, positions and have time to
yet been realised. levels of attrition are. Now we giving them more time to recruit consider the best way of filling
have to start trying to retain staff the right people. the role. “We need to use our
During the downturn, the
and build teams back up after knowledge to use the right
organisation implemented a The advantages of this new
the downturn.” recruitment method for each
number of strategies to try to direction are myriad. Firstly, the
position.” They are also aiming to
contain costs. Employees were After a number of redundancies organisation can fill jobs more
leverage internal relationships
encouraged to take as much were made before and during efficiently. Secondly, it can
and referrals from employees as
leave as possible, and take up the downturn to cope with target people with the right
a recruitment method.
the organisation’s policy of decreased business volumes, skills. Thirdly, it avoids time-
offering the option of buying an the focus now is on building pressured decision, giving more Looking ahead, there is a
additional four weeks leave in those teams up again in the time to think about the best perceived need to place more
any one year. In one part of the most efficient way. Some of the strategy they should use to find emphasis on the talent
business, employees were issues involved with re-building applicants for any given role. management scheme in order to
offered a 5% reduction in their teams involve a lack of system “We need to make quality retain employees once they have
hours and pay which was seen process documentation and the recruitment decisions rather than been recruited. As the market
to work well. There have also need to train a lot of new rushing through and just doing starts to pick up again after the
been pay and bonus freezes for employees at the same time. the same as we did the last time downturn, there is a risk that
senior management. It can also take some time for round.” Aligning resourcing turnover will continue to increase
new employees to get up and managers to key businesses has and managing this is likely to
running and comfortable with a also helped with forecasts and become a priority.
new culture and processes. networking opportunities in
terms of finding new talent. The
The downturn gave the internal
hiring team is also able to play a
hiring team the opportunity to
greater role in providing their
reassess their relationship with
knowledge and expertise to the
the business, and to redefine
hiring process, for example
their strategy and service
around leadership testing and
offering. “We [the hiring team]
cultural fit.
want to be a strategic resourcing
partner, rather than just a
transactional recruitment
consultant who ticks boxes.”


CASE
STUDY
INDUSTRIAL


CASE
STUDY
INDUSTRIAL

A large manufacturer, this With the retrenchments came a shortage, the organisation has The organisation takes a
organisation saw a significant drop in staff morale. This has doubled its training budget, and competency-based approach for
drop in sales during the been improving since the now has two technical trainers recruitment and so an interview
downturn. Decisions had to be downturn, but slowly. Remaining as opposed to one. Combined pack is developed with the hiring
made regarding profitability and staff have had to take on with the use of international manager taking into account the
in 2009 a retrenchment program additional work as a result of the training programs, the amount of core competencies required.
affecting 15% of the workforce reduced workforce. training has significantly Interviews, reference checks and
was implemented. The increased as a result. In addition medicals are all conducted as
The organisation has
retrenchment was cost driven to this focus on training, the standard. The recruitment team
acknowledged the stress that
and based purely on business organisation is developing an is focused on trying to ensure
employees have been under
needs, rather than performance. attraction and retention strategy that hiring managers are trained
during and since the downturn
This meant the organisation lost for technicians, and is reviewing in knowing how to conduct
and has undertaken a number of
some very good employees. In its remuneration strategy. There interviews and talk to
initiatives to address this. The
the future, management wants to is also a talent management candidates. “The emphasis is on
key initiative was an employee
grow the business in a way that program in development. getting the selection correct
survey which covered a number
ensures that this situation does Although some of these because there are huge costs
of areas including motivation,
not happen again. Looking initiatives may have happened associated with poor selection.”
participation, competence and
ahead, they are cautiously despite the downturn, the To this end the recruitment team
health. As a result of this survey,
optimistic with ambitions for downturn highlighted the fact is reviewing the competencies
the organisation is considering
sustainable growth. that there was an urgent need to that candidates are required to
implementing some wellness
address the talent exodus meet as currently there are too
Despite the retrenchments, the programs and a high level of
taking place. many for them to be applied
downturn was also seen as a loyalty towards the organisation
effectively. In order to get the
time of opportunity. The overall has been recorded, largely due to The recruitment process is a
right people through, the
business strategy was reviewed its proactivity in trying to improve very structured and formal one.
organisation feels its process
in terms of how the company staff wellbeing. “The focus is now There is an in-house
needs to be more streamlined
could better service their on building stronger teams recruitment team who are given
and focused on the primary
customers, including expanding moving forward from the a request for any new employee.
competencies required.
its offer to create total solutions downturn.” Structured The team then has discussions
for the customer via a one-stop- participation forums and focus with the hiring manager to
shop approach. The company groups are being conducted assess what type of recruitment
also reviewed who and where it internally to encourage method is likely to be the most
should be selling products to employees to discuss what is effective. If a recruitment agency
— in effect, who their core and is not working within is chosen then the agency is
customer should be — with a the organisation. briefed and provided with a
focus on sustained profitability position description and the
The organisation is now going
which they see as key for hiring manager is encouraged to
through a period of growth
long-term growth. liaise with the agency where
following the downturn.
possible. Online job advertising
However, there is a skills
is also well utilised, as well as
shortage with regard to
local newspapers. In addition,
technicians who make up a large
every job is advertised internally
proportion of the workforce. The
on the intranet.
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


03


RECOMMENDATIONS


FOUNDATIONS
OF GOOD HIRING

“we’Re ATTRAcTIng Australia and New Zealand’s Employers must have a clear What’s being said externally
unSolIcITed employers face a unique set of picture of their Employee value about a company is also of
cAndIdATeS oF A challenges in the new economic Proposition – yet only 23% say concern. The proportions of
HIgH cAlIbRe due To
era. They need to replace they are now working harder to both active and passive job
THe SAFe, RelIAble
And TRuSTed workforce losses, retain their demonstrate to candidates why seekers have swelled this year
elemenTS oF ouR current teams, attract new they should work for them. In a to 29% and 33% of the
bRAnd” employees to grow those teams market where there is greater workforce respectively. However,
Manager, Human Resources and ensure new recruits are high competition for candidates; and as skills shortages increase and
performers. All this is set against candidates are looking for more competition for the best people
a backdrop of a unique post- in order to move (triggers for intensifies the balance between
“A lAck oF FoRwARd
PlAnnIng on A downturn business environment seeking: career development sourcing from these two
wIde ScAle HAS – increasingly competitive and 64%; financial considerations groups is likely to swing
exAceRbATed ouR with an imperative of escalating 57%) and becoming choosier increasingly towards the passive
SkIllS SHoRTAge” profitability and growth. about who they work for, candidate segment.
Manager, Technical & employers have to have a
Engineering Well over half of Australia and This shift means employers need
sophisticated Employee value
New Zealand’s employers have to ensure their selection and
Proposition in place in order to
indicated that they are under- hiring processes are clearly
differentiate themselves.
resourced as a result of loss of defined to protect the company
headcount during the downturn. This clarity not only helps to brand. In a talent-short market
The key to positioning for growth explain to new recruits why they more investment is typically made
is to have the strongest possible should work for the organisation in ‘head-hunting’ activities. Hiring
team in place. This means both but, importantly, why existing activities that target passive
retaining existing high performers employees should stay. Over a candidates need clear evaluation
and, for many employers, hiring third of employees (37%) will ‘gates’ early in the process so
more good people. ‘use networks or word of mouth that unsuitable candidates can be
more’ when seeking a new role identified and redirected without
Given the new market dynamics
so the nature of what existing damaging the employer’s
of increased workforce liquidity,
employees say about a company reputation. Taking passive
pressure on remuneration and
is critical. Measuring candidates through a lengthy
competition for top talent,
engagement through formal process only to decline to offer
employers need to forecast
employee engagement surveys them a role at the end of it results
their resourcing requirements
and getting regular feedback in employment brand damage.
through workforce planning
from the workforce will help
and approach their hiring
employers keep their finger on
activities as a proactive,
the pulse of employee opinion,
well-considered program.
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.


– 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.


HIRING
MISFIRES

“ouR oRgAnISATIon Once employers have laid the Employers acknowledge that the Australia and New Zealand’s
needS To bReAk foundations of workforce consequences of getting hires employers cannot afford to
InTo new mARkeTS planning and have clearly wrong are far reaching and go make bad hiring decisions. They
– FIndIng THe RIgHT
defined their Employee value beyond simply the cost of back appreciate the importance of
PeoPle To do THIS
eFFecTIVely IS VeRy Proposition they must then filling a role, highlighted by 17% robust processes and good hires
ImPoRTAnT” ensure that their recruitment as a concern and directly to the overall health and
HR Manager, Sales, Marketing procedures are rigorous and fit impacting profitability. Over a performance of their businesses,
& Communications for the purpose of identifying the third (34%) are concerned about they say they have these
best performers to bring into loss of productivity, one in five processes in place, and yet they
their teams. (21%) cites opportunity cost, admit that nearly half of their
“AT THe momenT we
ARe noT cAPITAlISIng 18% impact on customer service hires are not good.
It is not surprising that almost all
on oPPoRTunITIeS and 9% decreased business –
of Australia and New Zealand’s There is clearly a disconnect
becAuSe we do noT all circumstances that will affect
HAVe THe RIgHT mIx employers (95%) agree that between employers’ perception
business performance in an
oF PeoPle To do robust hiring practices have a of how robust their hiring
increasingly competitive
So…ouR gRowTH positive impact on successful procedures are and how
IS STunTed by ouR environment. (See Fig. 23)
hires. To this end, well over effective they are in reality.
InAbIlITy To IdenTIFy three-quarters of employers The greatest concern, shared by Employers must address this
THe RIgHT PeoPle”
(79%) say their hiring process is 51% of employers, is the discrepancy if they are to build
Director, Technical &
‘formalised’, 60% say they have ramifications of poor hiring on the high performing teams that
Engineering
streamlined or improved their teamwork and engagement. they clearly need.
hiring processes since the Another third (33%) is
downturn and 43% say they now concerned about harmful effect
have a greater focus on better on staff morale. Employees also
matching candidates highlight detrimental affects on
to roles. team performance, morale and
motivation. These are harder to
Yet Australian and New Zealand’s
enumerate and potentially
employers report that 44% of
crippling. Ultimately, all of these
their hires are not good. (See Fig.
factors will negatively impact the
22) This is an astounding
pillars of business performance
proportion. Their hiring practices
that are key to growth.
are clearly not meeting the goal
of bringing good people into
their businesses. The bar is not
being raised.


– Employers must ensure
that their recruitment
PROPORTIONS OF GOOD,
FIg 22 AvERAGE AND BAD HIRES procedures are rigorous
and fit for the purpose of
Q6.5 Employers: Based on
your past experiences,
identifying the best
13% approximately what performers to bring into
proportion of hires in your
organisation would be
considered good, average or
their teams.
bad?
56% – The consequences of
31% getting hires wrong are far
reaching will adversely
affect business
performance in an
increasingly competitive
A good hire
environment.
An average hire
A bad hire
– Having a ‘formalised’
process is not enough –
employers’ current hiring
practices are not meeting
FIg 23 CONSEQUENCES OF A BAD HIRE the goal of bringing good
people into their
Impact on teamwork/engagement 51% Q6.7 Employers:
Comparatively, what is your
businesses.
Loss of productivity 34% level of concern with the
following possible – Hudson research shows
Impact on staff morale 33% consequences of a bad
hire? (Respondents chose that there is a clear
Opportunity cost to your organisation 21% two.)
disconnection between
Impact on customer service 18% employers’ perception of
The cost to your organisation of
back-filling the role 17% how robust their hiring
Decreased business earnings/revenue 9% procedures are and how
Base: Employers, n=418 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.


PERFORMANCE
DRIvERS

“TIme And AgAIn With the end goal of supporting The ‘want to’ category assesses All of these measures fall into
we HIRe PeoPle the key drivers of business a candidate’s ‘motivational fit’ the ‘technical’ or ‘experience’
wHo look good on growth, a robust hiring process and ‘career fit’. These measures measurement categories. In fact,
PAPeR, buT don’T
includes sophisticated measures provide a much richer picture of 63% of employers’ total hiring
PeRFoRm wHen In
THe buSIneSS” to identify those who have the the true depth of commitment a procedures and tools are
Strategy Director. Technical & potential to be high performers candidate will bring to a role focussed on the first ‘know how’
Engineering and help employers get the right – whether they will engage in category. A third (30%) of their
person into a role. The the role, work harder, apply efforts address the ‘can do’
Performance Driver Model discretionary effort and be category and only 7% measure
“we wAnT To FInd provides a framework for retained for longer. All of these the ‘want to’ category.
cAndIdATeS wITH
THe RIgHT culTuRAl understanding the drivers of measures are necessary to (See Fig. 25)
FIT FoR uS – THeRe individual performance and sets ensure hires are good.
ARe PlenTy oF out the most appropriate method
cAndIdATeS wITH The top three hiring tools/
of assessing these. (See Fig. 24)
THe RIgHT TecHnIcAl measures most frequently used
SkIllS” The drivers fall into three by Australia and New Zealand’s
CFO, Accounting & Finance categories: ‘know how’, ‘can do’ employers are: ‘reference
and ‘want to’. The ‘know how’ checking’, used by 88%; ‘resume
category provides the basic screening’ used by 76%; and
measures of a candidate’s ‘background interview’ used by
technical skills and experience 66%. (See Fig. 26)
– that they have the specific
A similar pattern emerges in the
skills and experience necessary
tools and procedures employees
for the role. The ‘can do’
say they have experienced
category assesses a candidate’s
during the interview and
‘capability’ and ‘attributes’ and
assessment process for a new
provides a deeper insight into
role. The top three are again
whether they are able and willing
reference checking (82%),
to apply their skills and
background interview (76%) and
experience to the role. These
resume screening (69%).
measures provide a clearer
(See Fig. 27)
understanding of an individual’s
behavioural capability that can
be applied adaptively in our
ever-changing organisations.


– The Performance Driver
Model provides a framework
FIg 24 for understanding the drivers
of individual performance
LOw CURRENT
INDICATOR OF
PERFORMANCE DRIVER MODEL
FOCUS
and sets out the most
PERFORMANCE appropriate method of
cATegoRIeS meASuReS
assessing these.
PERFORMANCE Technical Skills
(KNOW HOW) – The drivers fall into three
Experience categories: ‘know how’, ‘can
POTENTIAL Capability do’ and ‘want to’.
(CAN DO)
Attributes – The ‘know how’ category
provides the basic measures
RETENTION Career Fit
(WANT TO) of a candidate’s technical
hIGh
INDICATOR OF Motivation
EFFECTIVENESS
skills and experience – that
PERFORMANCE they have the specific skills
and experience necessary
for the role.
– The ‘can do’ category
assesses a candidate’s
FIg 25 ‘capability’ and ‘attributes’
TOOLS/PROCEDURES CURRENTLy bEING
USED by EMPLOyERS by %
Q5.5 Employers: Which
procedures/tools does your
and provides a clearer
organisation currently use
during the hiring process?
understanding of an
PERFORMANCE Technical Testing individual’s behavioural
(KNOW HOW) Skill Testing
Resume Screening 63% capability that can be applied
Background Interviewing adaptively in our ever-
Reference Checking changing organisations.
POTENTIAL Behavioural Interviewing
(CAN DO)
– The ‘want to’ category
Assessment Centres
job Trial 30% assesses a candidate’s
Personality Testing ‘motivational fit’ and ‘career
Intelligence Testing
fit’ and provides a much richer
RETENTION 7%
picture of the true depth of
Cultural Fit Measures
(WANT TO) 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’.


‘WANT TO’ NOT
‘KNOW HOW’

“we need To FInd All 605 employers surveyed Employers predominantly are They know they need high
THe RIgHT PeoPle were asked their thoughts on hiring on ‘know how’ – they are performers, they are going to be
wITH THe RIgHT the difference between an thinking far less about what the more demanding of their
communIcATIon And
average and a high performer. employee might want from their employees, they need to replace
dRIVe – THIS IS AS
ImPoRTAnT AS THe Not a single employer cites career and how much value they the gaps left in their
TecHnIcAl SkIllS” ‘good references’, ‘years of will deliver to the performance of organisations and build muscle
General Manager, ICT experience/experience’, the business. The key trigger for to drive business performance.
‘education/qualifications’ or an employee to seek a new role They know what sets high
‘where they have worked before’, is ‘career development performers apart – it is
“ouR PeoPle ARe yet these are the measures that considerations’ – they leave on a imperative that they review their
ouR PRoducT. we
need To be Able employers are most commonly lack of career fit. This is a key hiring procedures and tools to
To IdenTIFy HIgH using to bring new people into component of the richer ensure that they are correctly
PeRFoRmeRS their businesses. ‘want to’ category. indentifying them within the pool
RelIAbly oR we of potential candidates. Once
don’T HAVe A Employers repeatedly cite In short, employers are putting
these high performers have
buSIneSS” ‘exceeding targets’, ‘high the majority of their hiring
been brought into the business it
Creative Director, SM&C motivation’, ‘getting the job done’, efforts into the most basic
is also crucial to understand
‘going the extra mile’, category of assessment with
what drives and motivates them,
‘enthusiasm’ and ‘a desire for barely any emphasis on the
to show them a clear and
personal achievement and measures associated with high
progressive career path and
continuous improvement’ as the performers. It is little wonder
therefore retain them.
characteristic traits of high they are finding that 44% of
performers. These are all their hires are not good.
measured by the ‘want to’
Employers clearly need to drive
category.
a layer of sophistication through
And yet, almost half of their hiring methods and
employers (43%) say the biggest understand better the direct
staffing challenge they face in relationship between the
the short to medium term is effectiveness of the procedures
finding people with the right they use and the success of
qualifications. This is not a rich their hires.
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%.


– Whilst employers say that
motivation, desire for
TOP THREE HIRING TOOLS
FIg 26 USED BY EMPLOYERS continuous improvement
and a good cultural fit are
Reference checking 88% Q5.5 Employers: Which
tools/procedures does
the key attributes of high
Resume screening 76% your organisation currently performers, they not
use in the hiring process?
Background interview (past work experience) 66% (Respondents chose two.) measuring these aspects
Base: Employers, n=418 in candidates in their
current hiring process.
– Employers are putting the
TOP THREE HIRING TOOLS
FIg 27 ExPERIENCED BY EMPLOYEES majority of their hiring
efforts into the most basic
Reference checking 82% Q5.3 Employees: Which
tools/procedures have you category of assessment
Resume screening 69% been put through during
your most recent hiring with barely any emphasis
Background interview (past work experience) 76% process?
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 EMPLOYER RESPONDENT PROFILE
to conduct a robust qualitative and The charts below show the profile of the sample sourced from the Hudson client database:
quantitative research study into the lingering
impact of the recent economic downturn on GENDER, ROLE IN INDUSTRY SECTOR
Australia and New Zealand’s workforces and HIRING DECISIONS AND
NUMBER OF FULL TIME Government 23%
the ramifications for the hiring process EMPLOYEES Construction/
Property/Engineering 15%
going forward. GENDER: Financial Services/
Insurance 13%
Male 58%
QUALITATIvE RESEARCH Retail 9%
Female 42%
METHODOLOGY Healthcare
(Government) 6%
ROLE IN HIRING DECISIONS
Initially two discussion sessions were carried
Hiring 53% Professional Services 6%
out with senior Hudson employees to help Manager
Information
HR 28% Technology 4%
guide the research process. function/dept.
Neither 19% Resources/Mining 4%
Following this, four qualitative in-depth
ROLE IN HIRING DECISIONS Utilities 4%
interviews with key Hudson clients were
conducted in order to produce case studies Less than 25 6% Education 3%
detailing how different employers in different 26 to 99 11% Manufacturing 3%
industries felt the impact of the economic 100 to 199 7% Telecommunications 3%
downturn and what this means for their 200 or more 75% Advertising/ 1%
Marketing/Media
workforce requirements going forward. Don’t know/
Can’t say 1% FMCG 1%
Healthcare
QUANTITATIvE RESEARCH (Private) 1%
METHODOLOGY LOCATION AND Non profit 1%
WORK REGION
1,690 employees and 605 employers were Wholesale/ 1%
COUNTRY: Distribution
sourced from the Hudson database 79%
Australia Tourism/Hospitality 0%
interviewed online in regards to their views,
New Zealand 21% Transport 0%
behaviour and approach to the hiring
process in the post-downturn market. CITY: Other 2%
Melbourne 21%
The questionnaire responses were collected Sydney 21% PRACTICE AREA
from 6-11 May 2010. Respondents were
Brisbane 11% 26%
incentivised by a prize draw carried out Human Resources
internally by Hudson. No quotas, or Adelaide 8% Accounting & Finance 17%
screening criteria were set, however the data Canberra 7% ICT 14%
has been weighted to represent the total Perth 7% Sales, Marketing &
Communications 9%
Hudson database by both industry and Newcastle 5% Technical &
Engineering 8%
location, and employees currently not in
Darwin 0% Financial Services 5%
employment were removed.
Hobart 0% Office Support 5%
Public Sector 5%
Wellington 9%
Legal 1%
Auckland 8%
Other 10%
Christchurch 4%

WORK REGION:
Metropolitan 92%
Regional 8%
Rural 0%

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

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

GENDER WORK STATUS AND INDUSTRY SECTOR
GENDER: ROLE TYPE
Government 17%
Male 57% WORK STATUS:
Financial Services/ 11%
Full time 73% Insurance
Female 43% Construction/
Part time 8% Property/Engineering 7%
ROLE IN HIRING DECISIONS
On contract 20% Healthcare (Private) 7%
Under 25 years 5%
ROLE TYPE: Manufacturing 6%
25 to 29 years 12%
Executive or 16%
senior management Professional Services 6%
30 to 34 years 16%
Middle management 25% Telecommunications 6%
35 to 39 years 15%
Non managerial 36% Information
professional/specialist technology 5%
40 to 44 years 15%
Admin/support staff 18% Retail 4%
45 to 49 years 14%
None of these 4% Resources/Mining 4%
50 to 54 years 11%
Utilities 4%
55 to 59 years 7%
NUMBER OF FULL TIME Education 2%
60 years or over 5% EMPLOYEES AND WORK
REGION FMCG 2%
NO. OF FULL TIME EMPLOYEES: Advertising/
LOCATION Marketing/Media 2%
Less than 25 17%
COUNTRY: Tourism/Hospitality 2%
Australia 77% 26 to 99 13%
Transport 2%
New Zealand 23% 100 to 199 7%
Healthcare 1%
(Government)
CITY: 200 or more 57%
Don’t know/
Non profit 1%
Melbourne 25% Can’t say 5%
Wholesale/distribution 1%
Sydney 19% WORK REGION:
Metropolitan 92%
Other 9%
Brisbane 11%
Perth 8% Regional 7%
PRACTICE AREA
Adelaide 7% Rural 1%
Sales, Marketing & 19%
Canberra 4% Communications
Accounting & Finance 15%
Newcastle 3%
ICT 15%
Darwin 0%
Technical & Engineering 12%
Hobart 0%
Office Support 11%

Wellington 11% Human Resources 6%

Auckland 9% Public Sector 5%

Christchurch 3% Financial Services 3%
Legal 2%
Other 11%

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

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