Employers plan to hire, but staff set to walk: Hudson Report
Hiring outlook positive but 44% of professionals looking for a new role
19 July 2016 – While hiring intentions among Australian employers remain positive, their employees feel let down on the training front and many are actively looking to switch jobs, the latest Hudson Reporthas revealed.
The report tracked the hiring intentions of more than 2,000 employers, as well as the attitudes of 1,330 employees in April this year. It suggests that the job market is set to remain buoyant going into the second half of 2016, with almost 1 in 3 employers (31.7%) planning to increase hiring, creating a net effect of 22.6% – a slight dip on the first-half outlook, but still higher than the preceding four years. The net effect is calculated by taking the percentage of employers surveyed who intend to increase permanent staff levels over the next six months, and subtracting the percentage of employers who expect to decrease staff levels.
Permanent Hiring Expectations: Net effect (%)
“It appears that despite confusing economic and political signals, employers are getting on with the job at hand and investing in the people they need to grow their business,” said Dean Davidson, Executive General Manager, Hudson Recruitment Australia & New Zealand.
However, these plans could be complicated by a wave of staff departures, with the survey revealing that 44% of employees are actively looking for new opportunities – up from 26% late last year. A further 32% are open to hearing about opportunities, with only 24% content to stay put.
“The number of employees with their eyes on the exit has jumped significantly since last year. More professionals are convinced that the buoyant job market is here to stay, and are considering how they can build their career in this environment. This should sound alarm bells for employers, who will need to redouble their retention efforts and be ready to manage an uptick in staff departures,” Mr Davidson said.
Employees name their top reasons for learning new skills
Divergence on skills issue rears its head
One reason behind this restlessness may be disappointment with training options, in the face of relentless change. The survey found that 98% of employees say developing their skills is important or extremely important, while 60% feel more pressured to learn new skills than two years ago. Unfortunately, however, 1 in 2 don’t feel supported by their manager to improve their existing skills.
“Professionals keenly understand that their skills are crucial to their success and employability. We are living in a time of unprecedented disruption: technology evolves fast, change is a constant and employees know they need to keep up. In fact, 98% of them take personal responsibility for their professional development and 66% are spending three or more hours a month on it.
“But employers need to meet them in the middle. Skills development is crucial to ensuring individuals can perform, progress and deliver for the business, yet this continues to be a blind spot for employers, evidenced by the fact that less than half have a defined strategy to train their people,” Mr Davidson said.
The survey also reveals a mismatch between individuals and their employers regarding the skills in demand. Digital literacy, for example, is third on the list of soft skills employees want to develop, but at no. 10 for employers. Where they do see eye to eye, however, is on the ability to drive and manage change: it’s at the top of employers’ wishlist and second on employees’.
“These results show that organisations need an in-depth understanding of the skills and competencies required for their people to perform effectively, as well as a plan to develop their leadership capability. The starting point has to be a conversation around what benefits both the individual and the organisation, so they can see the areas of alignment,” Mr Davidson said.
ACT leading the way on hiring optimism
The ACT is leading the country in terms of growth, where almost 1 in 2 employers are looking to add staff. Technology and professional services, in particular, are flourishing in the nation’s capital.
The report suggests that the West Australia, Queensland and South Australia job markets have started stabilising after a tough year in 2015, while NSW and Victoria continue to perform strongly, with hiring intentions tracking in line with the national outlook.
“Not only have commodity prices recovered somewhat, the worst is hopefully over, in terms of job losses caused by projects moving from construction to operational phase in Western Australia and Queensland.
“While the global and national economies are facing challenges, these results demonstrate a sense of optimism among organisations. This aligns with the trends we are seeing in our business. Employers who have been taking a ‘wait and see’ approach to hiring are finally feeling confident enough to make a move,” Mr Davidson said.
Tech sector booming
Roles for Technology & Digital and Technical & Engineering professionals are in high demand, and there is a boom in Technology sector hiring. Similarly, the healthy hiring outlook for the Professional Services sector reflects the way services are driving the economy, and stands in contrast to Resources & Mining, which is the only sector to have negative net effect (-22.6%).
Permanent hiring expectations: % of employers looking to increase headcount in H2 2016
– ENDS –
Please contact us for more information, print-ready graphs or to arrange an interview.
Hudson undertook quantitative research with hiring managers and employees across Australia to analyse the talent landscape and provide insights on what employers might expect in 2016 and beyond. We canvassed the views of 3,362 employers and employees in April 2016. From these findings we developed this report – a combination of the survey findings and Hudson’s insights on the hiring landscape. Percentages don’t always total 100% as respondents could select more than one option for certain questions
Hudson is a global talent solutions company with expertise in specialist recruitment, recruitment process outsourcing, talent management and contracting solutions. We help our clients and candidates succeed by leveraging our expertise, market knowledge and proprietary assessment tools and techniques. Through relationships with millions of local and global specialised professionals, and via our world-class talent solutions and tailored, consultative approach, we help businesses and professionals achieve higher performance and superior business results. More information is available at Hudson.com.
This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions' that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; risks related to fluctuations in the company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the company at any time; competition in the company's markets; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's ability to implement cost reduction initiatives effectively, including the recently announced restructuring program; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; risks in collecting the company's accounts receivable; the negative cash flows and operating losses that the company has experienced from time to time in the past may reoccur in the future; restrictions on the company's operating flexibility due to the terms of its credit facilities; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to our dependence on uninterrupted service to clients; the company's exposure to employment-related claims from both clients and employers and limits on related insurance coverage; volatility of the company's stock price; the impact of government regulations; and restrictions imposed by blocking arrangements. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.