HR jobs: what’s in store for 2006

All three consultants say that the recent strength in the HR job market is a direct result of high business confidence, as well as some legislative changes. “With the ASX about to hit 5,000, it doesn’t look as if business confidence is going to drop in 2006. Happy shareholders create happy CEOs and happy CEOs don’t tend to slash HR budgets,” says Mason.

“State government initiatives in occupational health and safety (OH&S) in New South Wales, Victoria and Queensland have played an active role in driving OH&S practice in those states. OH&S is now part of board agendas and organisations can’t afford to take any risks with the health and safety of their employees,” says Owens.

“Industrial relations reforms are looming as an issue for many smaller businesses that now feel they must have dedicated HR practitioners. The market is divided into those companies that just want to stay out of trouble and those that want a strategic focus,” says McNamara.

Much has been written about a talent shortage in HR, but according to Mason, “there is no talent shortage, but a shortage of organisations developing talent from a graduate level”. He says the reality is that medium-sized companies have employed a flat ‘partnership’ structure and larger companies have tended to build central shared services functions. Both of these strategies limit the number and attractiveness of roles in HR. On top of this, blue chip organisations aren’t hiring the number of professional HR graduates they used to.

McNamara says it is a candidate-short market, which will stay that way for the next four to five years, especially as Gen Y workers exacerbate the vacancy rate in the lower range.

Where are the jobs?

Although all companies operate in the same Australian and world economy, organisations follow their own business cycles. Some organisations are rationalising, while others are hiring.

Ask any of these recruiters which are the difficult roles to fill and they are quick to answer. According to HR Matters’ McNamara, “Learning and development is a living nightmare. It has been so undervalued and lacking in many organisations in the past. Companies often want L&D professionals who can manage learning from design right through to implementation. But there are fewer and fewer candidates who have this ‘end to end’ experience, because one or other part of the process has traditionally been outsourced.”

Mason from The Next Step says demand remains very strong in several areas, especially for HR generalists in the $80,000 to $120,000 bracket and for “commercially savvy, articulate, technically capable specialists, as well as internal resourcing roles that require candidates to operate at the strategy level.” He also says there are a large number of jobs coming up in South East Queensland and a shortage of talent there.

Owens from HR Partners says organisations have learned that talent acquisition is expensive and time consuming, so individuals who can attract and retain staff, such as remuneration and benefits specialists, are in high demand. “The war for talent is without frontiers, so companies have to make sure they are able to hold people in a regional context. For example, you have to make sure you don’t lose your IT people to Singapore or Shanghai.”

Is it a good time to look around?

“Yes!” is the unanimous response from recruiters. “If you have three to five years experience in a senior role and you have built some additional skills, it is as good a market now as you will have found in the last eight years,” says Owens.

Some tips for finding your next job

While the market is buoyant for HR roles, there is still strong competition for the best roles, especially at the top end. According to the recruiters, a surprising number of HR candidates who would be a good fit for the employer let themselves down during the interview stage. This is despite the fact that they may sit on the other side of the desk interviewing candidates as part of their current role.

The recruiters all emphasise that it is vital to have a great CV and to back it up with a professional interview. Each agreed that any HR professional going into an interview without a strong knowledge of their own business metrics will not get the senior roles they believe they deserve. Too many candidates are unable to give examples of their achievements during behavioural style interviews, often because they have spent no time preparing for their interview.

It is also vital to know about the company you are interviewing with. This can be easily accomplished by going on to its website and reading the “About Us”section. Mason says that anyone who goes to an interview without looking at the company’s website should be embarrassed. “On top of this basic requirement, there is a stack of public info on websites which provides impartial industry information. This research can help take your discussion to the next level at interview,” he advises.

Show me the money

Given the buoyancy of the HR recruitment market, one would expect that HR salaries would be on the rise. Although this is true across the board, there are specific sectors that merit some discussion.

The key trends found in the latest Hart Consulting Group/HR Partners salary survey show that the average salary increases were between 4 per cent and 5 per cent for the majority of HR personnel. However, those with salaries below $100,000 showed higher increases of 5 per cent to 10 per cent in the last 12 months.

Specialists covering such areas as remuneration, recruitment and learning and development have received greater salary increases than their generic counterparts. The largest salary increases were in the areas of recruitment and remuneration.

The consulting industry has shown limited salary increases in 2005, but where consultants have demonstrated success, improved incentives were reported.

“Given the talent shortage, there has been quite a lot of restraint shown in Australia in the last 12 months, with only moderate increases in fixed remuneration. However, the performance-based portion of the package has increased dramatically,” adds Owens.

Further education

There has been quite a bit of debate about the value of an MBA, given their recent proliferation. There are currently more than 40 universities in Australia offering more than 80 MBA degrees. HR Matters’McNamara addresses the issue: “Do I ever take a job specification that asks for postgraduate qualifications? Yes, definitely. But academic qualifications never compensate for a lack of experience. I never have a client prepared to take someone with a post graduate IR degree, for example, who has never actually dealt with the unions,” she says.

Mason says that postgraduate qualifications do encourage candidates to take on broader roles: “The qualification you get is not as important as having a broad experience blended with technical specialist expertise in HR.

Owens adds that if someone has done any further study, it is a clear demonstration that they have invested in self-development, which is always well respected. “Additionally, the chance of being interviewed during the assessment phase by someone who already has an MBA, is a lot higher than before. Therefore, you probably have more in common with them,” he says.

Going offshore

“For those who want to be an HR director one day, you have to get offshore experience,” says McNamara, who says that Australian HR professionals are highly regarded in the UK and Asia, because as a rule, they are quite flexible and very good at getting on well with a broad range of people. “I have never had an Australian candidate rejected for not being a good interpersonal fit in either the UK or Asia,” she says.

In a candidate-short market, many clients would rather sacrifice geographic experience than industry experience, according to McNamara. So, as long as a candidate fits the job spec in its entirety, they are happy to put the person in a new geographic location.

“If you want international experience, it is much easier to get a gig in your current company offshore than it is to change companies,” says Mason. He advocates first moving to a company that has overseas operations and a history of moving its HR staff offshore if your current employer cannot offer you the international experience you’d like.

Owens says that many of Australia’s existing senior HR managers are getting regional roles and then back filling their Australian responsibilities. He says that given the re-globalisation the world has experienced since 9/11, Australian talent is now moderately priced and is a potential source of talent for the region. However, there is a tension created within Asian companies to hire locally rather than from an expatriate pool. Owens says that there is a greater acceptability of the Australian expat over a British or American expat because, as a rule, they are patient people who understand the sensitivity of regional needs.

What are you worth?

HR Partners/Hart Consulting Group’s 2005 salary survey results (see below) illustrates pay levels for generic HR roles within the corporate marketplace.

Position Fixed reward (base plus benefits)

HR director $250-320K

Senior HR manager $150-215K

HR manager $95-130K

HR consultant $77-110K

HR coordinator/officer $60-75K

HR administrator $50-60K

Administrator/graduate $44-48K

How to get your next job

• Consider using a specialist HR recruiter

• Use your network to approach the unadvertised job market

• Know your priorities, but be flexible

• Get some practice undergoing a behavioural type interview

• Know your current company’s business numbers

• Know the metrics around your current role (such as budget, retention rate, size of team etc)

• Keep a file of examples of executed work, testimonials and ideas

• Demonstrate times you have been flexible

• Give examples of your relationship management capability

• Visit the company’s website

• Find out about the CEO – Google him/her

• Follow up the interview with a thank you note

• Inform your referees about the role you have applied for

• Get an HR friend/recruiter to review your CV