In February 2014, the Michael Page Human Resources and Legal teams delivered a presentation to clients which included insights on the economy, current industry trends, salaries and the evolving labour market.

1. FEBRUARY 2014
PRESENTED BY JOHN MACLEAN

2. AGENDA
 PageGroup Overview
 Areas of Specialisation
 The Decade in Review
 What Did We See in 2013?
 Current Industry Trends
 Salary & Employment Forecast 2014
 Has the Recruitment Landscape Changed?
 Summary

3. PAGEGROUP OVERVIEW
GLOBAL COVERAGE

4. AREAS OF SPECIALISATION
HUMAN RESOURCES
 HR Director / Head of HR
 HR Business Partners / Manager
 HR Advisors
 Learning & Development Specialists
 Remuneration & Benefits Specialists
 Talent Acquisition / Recruitment Specialists
 HRIS Specialists
 Change Management Specialists
LEGAL
 Partners
 Senior Associates / Associates
 General Counsels
 Legal Counsel / Senior Legal Counsel
 Compliance Specialists

5. THE DECADE IN REVIEW
THE AUSTRALIAN ECONOMY
Annual GDP Growth

6. THE AUSTRALIAN ECONOMY
WHAT CAN WE EXPECT IN 2014
 ABS recorded unemployment as being 5.8% in December 2013 (20
year average is 6.3%).
 The Australian economy is expected to grow by 2.5% in 2014.
 We will see transition from resource investment led growth towards
broader based growth.
 The outlook for the global economy is stronger than it has been in
2013.
 This indicates a stronger job market in 2014.

7. THE DECADE IN REVIEW
ANNUAL EMPLOYMENT GROWTH
NSW & Australia (2004-2013)

8. THE DECADE IN REVIEW
ANNUAL EMPLOYMENT GROWTH
VIC & Australia (2004-2013)

9. WHAT DID WE SEE IN 2013?
 Overall, similar trends to 2012.
 Subdued domestic market influenced by mixed global economic
conditions:
 China continued to slow slightly
 The US continued to grow at a moderate pace
 The Euro area largely remains in recession.
 Slowdown in mining had a negative impact on the economy and signalled
caution to other sectors – this appears to have stabilised.
 Early announcement of the federal election halted business decisions.
Consumers and businesses weren’t prepared to ramp up their spending.
 The promise of post-election movement is still yet to be fully realised.
 The collective effect was a relatively flat employment market.

10. IS THE CURRENT MARKET THE “NEW NORMAL”?
 There are no forecasts for a large spike in the market.
 Businesses are generally positive about the outlook for 2014.
 This is yet to translate into large movements in business or
employment activity.
 Companies are continuing to be “bottom-line” focused.
 Increase in restructures within management teams.
 With more political stability and a stronger global economy it is
expected that people will spend more and businesses will lift hiring and
investment.
 There is a level of comfort that the economy won’t decline and most
people are cautiously optimistic.

11. INDUSTRY TRENDS
 Companies expect hiring to remain fairly stable over the next 12
months.
 Businesses are closely monitoring the costs associated with their
support services functions.
 Continued steady requirement for HR professionals on a temporary
basis offering a flexible workforce.
 IT / Telecommunication and Public Sector all showed a significant
requirement for additional headcount.
 SMEs are more willing to actively invest in HR compared to large
businesses that have the option to offshore back office functions.
COMPANIES

12. INDUSTRY TRENDS
 Candidates are seeking a strong company culture.
 The opportunity to learn and broaden experience is a key reason to
move roles.
 Work life balance initiatives are a strong motivator with the average
working week being 37.5 – 40 hours and less that 1% working more
than 51 hours.
 More flexible working arrangements are being sought at the senior end
of the market with the option to work one day a week from home.
 Candidates are often passively looking for the right opportunity rather
than being motivated purely by financial rewards.
 The senior end of the candidate market has been very stagnant.
CANDIDATES

13. INDUSTRY TRENDS
 Occupational Health & Safety (OH&S) specialists are currently in high
demand particularly across SMEs.
 A high number of HR job opportunities have been available in the
digital area, which is rapidly expanding in line with changing consumer
preferences and the growing popularity of online shopping.
 HR Generalists, particularly HR Business Partners, continue to be a
focus for hiring activity. Strong trend towards technical competence
and business “know how”.
 Business conditions have driven a demand for specialist skill sets
including employee relations, HRIS and change management.
 Companies are continually looking for professionals willing to consider
interim options with a view to permanency.
POSITIONS IN DEMAND – HUMAN RESOURCES

14. INDUSTRY TRENDS
CANDIDATE DEMAND – LEGAL
 PRIVATE PRACTICE
 There has been an unprecedented demand / appetite for Partners
to move firms.
 Most other external hiring has been at a junior level (2 – 4 years).
 There continues to be a candidate shortage across all practice
areas.
 IN-HOUSE
 The General Counsel / senior market has been extremely
stagnant.
 The majority of roles have been at junior counsel level.
 Private Practice lawyers will leave for fixed term roles.

16. SALARY & EMPLOYMENT FORECAST 2014
SALARY & REMUNERATION

17. SALARY & EMPLOYMENT FORECAST 2014
RECRUITMENT ACTIVITY

18. SALARY & EMPLOYMENT FORECAST 2014
ATTRACTION & RETENTION

19. SALARY & EMPLOYMENT FORECAST 2014
ATTRACTION & RETENTION

20. HAS THE RECRUITMENT LANDSCAPE CHANGED?
In larger corporate structures, companies are continuing to ‘de-layer’
THE EFFECT OF STRUCTURAL EFFICIENCIES
Traditional Structure

21. HAS THE RECRUITMENT LANDSCAPE CHANGED?
In larger corporate structures, companies are continuing to ‘de-layer’
THE EFFECT OF STRUCTURAL EFFICIENCIES
Efficient Structure

22. HAS THE RECRUITMENT LANDSCAPE CHANGED?
 Employees can see lack of career progression, causing staff turnover.
 Companies are short-term focused in their replacement strategy.
 This is in line with a shorter term goal focus / cost focus in a
challenging economy.
 Candidates become more specialised – less breadth of skills/industry
knowledge.
 Creation of perpetual ‘job recruitment’ rather than career development.
 Often outside the control of staff retention strategies if the next step
isn’t realistically available.
THE EFFECT OF STRUCTURAL EFFICIENCIES

23. HAS THE RECRUITMENT LANDSCAPE CHANGED?
THE EFFECT OF STRUCTURAL EFFICIENCIES

24. HAS THE RECRUITMENT LANDSCAPE CHANGED?
MANAGING THE CANDIDATE MARKET
Networking
Search
Print Advertising
Online Advertising
Job Boards
Social Media
(Facebook, Twitter, LinkedIn)
Database
PreviousSourcing Strategies Current

25. HAS THE RECRUITMENT LANDSCAPE CHANGED?
 Access to candidates is now far
easier
 Job boards provide an
untargeted approach
 Aggressive LinkedIn campaigns
can have a detrimental effect
 Greater sophistication is
essential in effective candidate
management
MANAGING THE CANDIDATE MARKET
The difference between
passive and active candidates
is evaporating
Active Passive

26. SUMMARY
 The employment market proved to be steady throughout 2013.
 Should we accept the current market as the ‘new normal’?
 The outlook for 2014 continues to be cautious with some level of
optimism.
 Companies continue to be bottom line focused.
 There are longer term effects of efficiency restructures.
 With greater access to a broad candidate pool, correct candidate
management is crucial for an efficient recruitment process and
company EVP.