THE AUSTRALIAN HR market has strengthened over 2004 with improved business confidence and increased recruitment activity across all key industry groups, and an increasingly candidate short market will result in increased cash salaries for good candidates
THE AUSTRALIAN HR market has strengthened during 2004 with improved business confidence and increased recruitment activity across all key industry groups, and an increasingly candidate short market will result in increased cash salaries for good candidates.
That’s the finding of Michael Page’s latest HR salary survey, which has indicated that a candidate shortage in HR will improve the scope and quality of career opportunities available in the profession.
Companies competing for talent will be forced to introduce additional incentives into salary packages on offer in order to secure top performers, with initiatives such as holiday in lieu of overtime, flexible work arrangements and childcare, according to the survey.
Correspondingly, 43 per cent of HR professionals expected a moderate salary increase of 2–5 per cent over 2004, while 32 per cent expected 6–10 per cent and 12 per cent of HR professionals were seeking increases of 11–25 per cent.
The candidate shortage has also forced companies to implement retention and succession strategies to protect talented members of their HR teams in the face of increased competition for candidates.
“As a consequence there is a renewed business focus on HR functions to actively recruit new candidates while ensuring top performers are retained,”the survey found.
“In many instances this increased workload is overstretching HR teams that have been trimmed over recent years as a result of difficult economic conditions.”
This has prompted an upturn in HR recruitment as teams expand in response to these changing market conditions, with a strong demand for HR generalists and specialists in the areas of organisational change, OHS, remuneration and benefits as well asindustrial relations.
While the permanent recruitment market is strongest, the survey also found contracting opportunities have increased to support companies that have begun to undertake business initiatives such as mergers and acquisitions.
The survey found companies were also seeking professionals with change management skills to manage the organisational change occurring as a result of improved business confidence and lifting of headcount restrictions.
In Sydney, a number of organisations especially in banking, legal firms, chartered accountancy firms and global corporates have had their headcount numbers increased and this has resulted in a rebuilding process within their HR teams.
The survey found that HR generalists, change specialists, internal recruiters, remuneration and industrial relations experts are most sought after in Sydney.
In Melbourne, HR functions were replacing an escalating number of talented individuals who have taken advantage of positive market conditions and moved into new roles.
“The focus is on ensuring the effective management of their employees’careers and alignment of skill-sets with the strategic direction of the business,”the survey found.
“As the key facilitators of these initiatives, HR functions are facing an increased workload that in many instances cannot be handled by teams already understaffed due to the downsizing that has occurred in recent years.”
As a result, HR functions are enjoying a renewed business focus as recruitment activity increases and staff retention becomes an increasingly critical issue.
The survey anticipated opportunities for HR professionals will increase during the remainder of 2004, with a strong demand for candidates who have the specialist skills to assist with the changing market conditions businesses are facing.
