RCSA QUARTERLY HIRING INTENTIONS SURVEY OCTOBER TO DECEMBER 2013 REPORT AUSTRALIA
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1 RCSA QUARTERLY HIRING INTENTIONS SURVEY OCTOBER TO DECEMBER 2013 REPORT AUSTRALIA 1 Principal Partner RECRUITMENT AND CONSULTING SERVICES ASSOCIATION AUSTRALIA & NEW ZEALAND
2 1. Executive Summary The purpose of the study is to examine RCSA member assessments of the recent hiring experiences and future hiring intentions among their clients, and to gauge how this changes over time. The study employs a survey methodology, involving a quarterly online survey of RCSA Corporate members at each of their branches. The survey consists of eight questions, which examine member assessment of the current and future for on-hire worker and permanent placement services, and how this differs by occupational categories and geographic areas. For this third wave of the survey, a total of 1392 representatives of RCSA Corporate members were invited to participate in the survey via . A total of 213 questionnaires were received, a response rate of 15.3%. The two key measures not to be missed in each edition of PULSE are found in sections 5.1 and 5.2 change in perceived client for on-hire worker services and change in perceived client for permanent placement services. Prepared by Professor Timothy Bartram, Professor Russell Hoye, Dr Nicola McNeil La Trobe Business School In summary, respondents reported a more positive outlook on the for permanent placement services in this quarter, compared to the previous six months. Demand for on-hire worker services has remained steady during this period. Respondents are more optimistic about hiring conditions over the next three months, particularly with respect to permanent placement worker services. Unlike previous quarters, the for on-hire and permanent placement services has not differed significantly in relation to types of occupations sought, and their location. Thus, RCSA members report that for workers of different occupations, and in different States, has been relatively uniform during this time. Overall, the results of this study suggest the within the market in Australia is improving, particularly for permanent placement worker services. 1 1
3 2. Demand for on-hire and permanent placement services On-hire worker services 2.1 CURRENT DEMAND FOR ON-HIRE AND PERMANENT PLACEMENT SERVICES Members were asked to assess the level of for on-hire worker services and permanent placement services in the October to December 2013 quarter. As shown in Table 1, respondents reported varying levels of client for these services during this time. On average, respondents reported a slightly higher level of for on-hire worker services compared to permanent placement services. Approximately 48% of respondents reported an increase in for on-hire worker services during this period. In terms of permanent placement services, 41% of responding members indicated they experienced a decline in for these services from October-December Approximately one third of respondents report no change to for permanent placement services, and 31% indicate they perceived an increase in for these services. 20.4% 19.3% 12.7% 36.5% 11.0% Sustained reduction in Minor reduction in Permanent placement services Demand unchanged Minor upturn in Sustained upturn in 23.5% 17.9% 27.9% 23.5% 7.3% Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Sustained upturn in 48 % 31 % Table 1: Respondents perceptions of the for on-hire worker and permanent placement services, October to December
4 2.2 FORECASTED DEMAND FOR ON-HIRE AND PERMANENT PLACEMENT SERVICES IN NEXT QUARTER On-hire worker services Members were also asked to forecast the level of client for on-hire worker services and permanent placement services in the following 3 month period (January to March 2014). The results are presented in Table 2 opposite. On average, respondents anticipate there will be a minor upturn in in both on-hire worker services and permanent placement services in January-March Approximately 62% of respondents (55% in the previous quarter) expect that for on-hire worker services will increase in the next quarter. In terms of permanent placement services, 51% of responding members (34% in the previous quarter) anticipate that will increase, with a further 30% suggesting that will remain constant. 6.4% 11.0% 20.8% 45.7% 16.2% Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Sustained upturn in Permanent placement services 8.2% 10.5% 30.4% 40.9% 9.9% 62 % 51 % Table 2: Respondents perceptions of the for on-hire worker and permanent placement services, Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Sustained upturn in January to March
5 3. On-hire worker services 3.1 FACTORS INFLUENCING DEMAND FOR ON-HIRE WORKER SERVICES When asked to identify the main factors that influenced their perception of levels of for on-hire worker services, respondents identified these themes An increase in business confidence was cited by 27% of respondents. Members noted client sentiments are improving, increasing tender activities are a sign of increasing confidence, our clients are experiencing growth and anticipate more to come, with the Liberals in Government, there is increasing business confidence in the community. Seasonal shifts in for on-hire worker services were discussed by 16% of respondents. Members stated this is typically our peak period and a lot of our clients require services for their seasonal businesses and our follows a typical seasonal pattern. A flat market and a lack of spending on major projects was identified by other members (12% of respondents) as a reason for a fall in client. Members commented there is just a lack of confidence out there. The change of Government, negative press stories and uncertainty over employment relations from the Fair Work Commission, there are no new Government projects so is very soft and no one is hiring, just waiting to see what happens. 4
6 Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Sustained upturn in Managers & Administrators 13.0% 13.0% 38.9% 34.3% 1.0% Professionals 13.3% 15.6% 31.3% 35.9% 3.9% Technicians & Trade 13.3% 20.0% 32.0% 32.0% 2.7% Community & Personal Service 5.6% 13.0% 48.1% 24.1% 9.3% Clerical & Administrative 11.4% 19.3% 29.8% 36.0% 3.5% Sales 4.7% 9.3% 40.7% 38.4% 7.0% Machinery Operators & Drivers 10.6% 13.6% 36.4% 28.8% 10.6% Labourers 6.1% 21.2% 24.2% 33.3% 15.2% Table 3: Respondent perceptions of the for on-hire worker services by occupational category, October to December DIFFERENCES IN CURRENT DEMAND FOR ON-HIRE WORKER SERVICES, BY OCCUPATIONAL CATEGORY Members were asked to consider how client for on-hire worker services has varied by occupational groups in the last three months. The results are displayed in Table 3 above. Some general trends in the perceived of on-hire worker services by occupational group are evident. First, the majority of respondents reported that was either consistent, or had increased across all occupational categories. Second, there was considerable variation in perceived levels within the sample. For example, over 49% of respondents experienced an increase in client for Labourers, while 27% of respondents reported some decline in for these workers. Similarly, approximately one third of respondents reported an increase in for Professionals, and a further one third reported a decline in. Approximately 31% of respondents reported a decline in for Clerical and Administrative Services. However, there are no significant differences in perceived client levels between the occupational groups in the October to December 2013 quarter. 49 % Increased for Labourers 5
7 Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Sustained upturn in Managers & Administrators 3.6% 10.8% 36.9% 41.4% 7.2% Professionals 6.8% 9.1% 28.8% 46.2% 9.1% Technicians & Trade 7.1% 10.0% 31.4% 45.7% 5.7% Community & Personal Service 6.3% 8.3% 43.8% 29.2% 12.5% Clerical & Administrative 3.7% 9.2% 33.0% 46.8% 7.3% Sales 2.5% 8.9% 38.0% 39.2% 11.4% Machinery Operators & Drivers 6.2% 6.2% 43.1% 32.3% 12.3% Labourers 3.1% 10.8% 36.9% 35.4% 13.8% Table 4: Respondents perceptions of the future for on-hire worker services by occupational category, January to March FORECAST OF DEMAND FOR ON-HIRE WORKER SERVICES BY OCCUPATION IN THE NEXT QUARTER Members were asked to predict the level of client for on-hire worker services across the various occupational groups during the next three months (January to March 2014). The results are presented in Table 4. Generally, respondents are reporting a more positive outlook for January to March 2014 quarter. Respondents suggest the for higher order occupations, such as Managers, Professionals and Technicians is likely to increase slightly in the next quarter. Demand for Clerical, Administrative and Sales workers is also thought to experience a minor increase. However, there are no statistically significant differences in perceived levels of by occupation or by State during this time. 6
8 4. Permanent Placement Services 4.1 FACTORS INFLUENCING DEMAND FOR PERMANENT PLACEMENT SERVICES When asked to identify the main factors that influenced their perception of levels of for permanent placement services, respondents identified these themes A heightened level of business confidence was cited by 39% of respondents as a reason for the change in for permanent placement services. Some respondents noted an increase in business confidence having a positive impact on for these services. Respondents said there is improved market sentiment on the back of the change in the Federal Government and everywhere you go, there seems to be growing confidence in the economy and a willingness to hire permanents. One member said this is the best January we have ever had [for permanent placement services] and another noted there are more jobs out there to fill. However, this sentiment was not shared by all respondents. 37% of respondents suggested that for permanent placement services was soft, primarily due to low levels of business confidence and a lack of Government spending. Respondents commented the market is flat, no one is committing to permanent placements, there is no urgency with clients, the economy is still soft, clients are apprehensive about permanent hires and are taking a long time to make decisions, and there is a continuing trend to avoid a commitment to permanent salaries. 7
9 Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Table 5: Respondent perceptions of the for permanent placement services by occupational category, October to December 2013 Sustained upturn in Managers & Administrators 7.1% 15.9% 37.2% 32.7% 7.1% Professionals 12.1% 15.9% 28.8% 33.3% 9.8% Technicians & Trade 10.3% 22.1% 47.1% 19.1% 1.5% Community & Personal Service 2.3% 9.1% 63.6% 18.2% 6.8% Clerical & Administrative 7.5% 21.7% 38.7% 29.2% 2.8% Sales 8.2% 8.2% 45.9% 29.4% 8.2% Machinery Operators & Drivers 6.9% 22.4% 46.6% 24.1% 0% Labourers 1.8% 21.4% 55.4% 19.6% 1.8% 4.2 DIFFERENCES IN CURRENT DEMAND FOR PERMANENT PLACEMENT SERVICES, BY OCCUPATIONAL CATEGORY Members were asked to reflect on how client for permanent placement services has varied by occupational groups over the last three months. The majority of respondents report that client for permanent placement services was unchanged or had increased during the October to December 2013 period, as shown in Table 5. For example, 88% of respondents indicated that for Community and Personal Service worker services had remained constant or increased during this quarter. Similar trends are evidenced for Sales and Machinery Operators and Drivers, Technicians and Trade and Labourers. However, there were significant differences in the pattern of client for different occupations. The perceived for the occupations of Technicians and Trade, and Machinery Operators and Drivers is significantly lower compared to the for other occupational groups. 4.3 FORECAST OF DEMAND FOR PERMANENT PLACEMENT SERVICES BY OCCUPATION IN THE NEXT QUARTER Respondents suggest that client for different types of permanent placement workers will remain unchanged or improve in the next three months. Across each occupational category, approximately 85% of respondents anticipate similar or higher for permanent placement services. There are statistically significant differences in anticipated patterns of between occupational groups. Perceived for Machinery Operators and Drivers, and Labourers is significantly lower compared to other occupations. However, for all occupations is uniform across all States. Table 6: Respondent perceptions of the future for permanent placement services by occupational category, January to March 2014 Sustained reduction in Minor reduction in Demand unchanged Minor upturn in Sustained upturn in Managers & Administrators 5.2% 7.8% 37.9% 40.5% 8.6% Professionals 6.3% 7.8% 28.9% 46.1% 10.9% Technicians & Trade 10.6% 6.1% 37.9% 42.4% 3.0% Community & Personal Service 2.3% 6.8% 52.3% 29.5% 9.1% Clerical & Administrative 1.8% 11.0% 37.6% 43.1% 6.4% Sales 1.1% 8.0% 32.2% 42.5% 16.1% Machinery Operators & Drivers 8.5% 8.5% 55.9% 25.4% 1.7% Labourers 3.5% 12.3% 61.4% 21.1% 1.8% 8
10 5. Changes in perceived client over time An index was created to represent the level of for on-hire worker and permanent placement services in April to June, July to September and October-December The index is a score out of CHANGE IN PERCEIVED CLIENT DEMAND FOR ON-HIRE WORKER SERVICES 3.09 % Respondents indicate that for on-hire workers had increased slightly over the April to June and July to September quarters, and remained steady to December The index value increased from 2.70 (April to June 2013) to 3.09 (July to September) and 3.03 (October to December 2013) as shown in Figure 7 opposite. When respondents were asked in October 2013 to forecast levels for on-hire worker services for the October to December quarter, they forecast an index of However, respondents reported a weaker for that period (index of 3.03). Furthermore, respondents indicate that they expect will continue to improve in the January to March 2014 quarter, forecasting an index of % Figure 7: Demand index for on-hire worker services October to December
11 5.2 CHANGE IN PERCEIVED CLIENT DEMAND FOR PERMANENT PLACEMENT SERVICES In terms of a permanent placement service index, respondents indicate that for permanent placement services had increased over the April to June, July to September and October to December quarters. The index value increased from 2.56 in April to June 2013 to 3.01 in July to September, and 3.11 in October to December 2013 as shown in Figure 8. In October 2013, respondents estimated a index of 3.21 for permanent placement services for the October to December quarter. Actual for that quarter was slightly weaker, with an index of Respondents anticipate that for permanent placement workers will increase marginally in the January-March 2014 quarter, forecasting an index of % 3.01 % Figure 8: Demand index for permanent placement services October to December
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