people2people news | September 7, 2010
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From Feather Duster to Rooster
Posted by the Editor: May 27, 2009Well hasn’t Alex Wah Day felt the highs and lows that the p2p footy tipping contest has to offer? In Round 4, Alex only tipped one out of a possible eight games correctly. To compound his error, Alex used his wildcard that round.
Ouch!
But now the tipping Gods are on his side, not only did he pick the round, but he also got the margin 100% correct! Enjoy the moment (and the wine) Alex, who knows what next weekend’s footy results will bring!
Simon Gressier
Director
How’s the market? May 2009 update
Posted by zichuan: May 20, 2009In December 2008 people2people released our Recruitment Outlook 2009 based on survey results from our clients. Two conclusions made from that survey were:
The current ‘slow down’ in the recruitment market is not solely due to a slowing economy, but is also heavily influenced by seasonal factors. In fact, 66.14% of companies expect to either maintain their current staffing levels or increase their numbers in the next 12 months.”
Expectations for 2009
From the results of our survey, 78.9% of companies in NSW were expecting to see the quality of job applicants to improve in 2009 (see Figure 3.0). When asked to elaborate on their expectations, we were told this was due to “companies are releasing staff” and “[there are] current redundancies in the market, people are looking for security.” In addition, some believed that the contract market was ‘drying up’ which will force people back into the permanent job market.
The big questions with respect to the current recruitment market revolve around quality. What is the market doing at the moment with respect to salaries and opportunities and how good are the available candidates in the market? The market is generally slow however there are still opportunities attracting candidates with specialist skills. Below is a summary across a range of levels and there is a dichotomy between the top end of the market and the clerical end.
Finance Managers/FC/Senior Accountants (circa $120-140k)
This level was hit hard and early as confidence left the market following the credit crunch. Many contracts ended or were cut short and newly created positions were cancelled, effectively eliminating the “churn” as people switched roles, resulting in a supply bubble on the candidate side. We’ve seen many solid candidates sitting on the sidelines whilst others who aren’t working have stepped down to lower levels (to varying levels of success) biding their time until the market recovers. It is indicative of a slowing market when well known Executive Recruitment firms are advertising roles at the $65k level.
Finance Manager/Accountants/Business Analyst ($100-120k)
In between the people stepping down and those out of work, there is not a lot of activity for the candidates looking to step up or wanting to remain at this level. In the last couple of weeks however, there have been some very faint signs of life at this level.
Qualified Accountants ($80-100k)
One definite trend we’ve noticed is salaries being offered are lower. Just 8 months ago recently qualified candidates just stepping out of the Big 4 were being offered salaries of $90-100k+s, these salaries have been trending lower and maybe even below the historical average of circa $80-90k package for a number of years post qual experience and $70-75k+super for recently qualified staff. Clients are increasingly resistant to consider candidates taking their first step out of chartered/public practice firms, instead telling us “we want someone qualified with commercial experience”. Opportunities for candidates with commercial experience to take a “step up” have become rare. There have been a few medium sized organisations recruiting and taking advantage of the quality of candidates available, however there is an expectation gap between the skill set available on the market and what is perceived to be available
resulting in a longer than average search. It is also worth noting that candidates from the Big 4 and Second Tier firms are in the market for longer due to the lack of opportunities in the market. Many of these “First Steppers” as we call them have taken extended leave as even a number of the Firms are quiet at the moment. Two recent roles at the $70-80k level attracted 215 candidates (Financial Accountant) and 405 candidates (Financial Analyst) with a number of solid applicants (circa 25-30 people) but less than 5 candidates per role who met the clients’ very strict criteria.
Part Qualified / Assistant Accountants ($45-65k)
Historically always a very active level possibly due to the demographic. There are a number of good candidates available but again, very little supply of available positions. The perceived increase in quality is again more a numbers game, the proportion of good candidates has remained constant but the total number of available candidates has increased. Recently a role we recruited at this level attracted 323 applicants in two days, previously the number would have been 150 within the same time period.
Clerical through to Team Leader (AP/AR/Payroll)
It is a slightly different story at the clerical end of town. At the Team Leader level it is still quiet overall with some indication that salaries have found a floor at the $60k+s level. However, the team member level is showing that there is still a tight candidate market. Dedicated AP/AR/Payroll staff are still hard to find at the team member level with salaries staying constant around $45-55k+s. In payroll, specific systems experience has always been in demand, however this systems experience has now become non negotiable, perhaps showing a lack of willingness and/or time to train.
Outlook
At yesterday’s address to the Canadian Chamber of Commerce, RBA Governor Glenn Stevens noted that “it is too soon to say this is beginning yet, though developments over recent months are certainly consistent with the view that a recovery will get under way towards the end of the year. That said, most observers think that the early part of any new global expansion will be characterised by pretty slow growth.”
Should this view be accurate, then given previous trends and time lags, we should see the trend turn to an increase in temporary needs within the next 2 months (this will coincide with the traditionally busier year end period so may be a false positive) and a trend towards the permanent market picking up towards September/October 2009, however, this is close to the Christmas period, which always has had a wait and see approach, with particular emphasis in 2008 after the Lehman Brothers collapse.
The recruitment market, like most markets is largely based on confidence. Confidence that business can afford to employ and confidence that candidates can find a better opportunity. Throughout this calendar year we have seen a number of “spikes” in activity where we will be briefed on a number of new roles on one week then everything will go quiet with little or no activity for the next four weeks. Assuming no other significant shocks such as bank and/or country collapses the likely outlook at this stage is that the temporary market has the potential to pick up during the 08/09 financial year end, but perhaps more likely towards September/October. The permanent market should improve around March/April 2010. As I tell all my candidates, “if I had a crystal ball, I’d be taking advantage of the market fluctuations and making money on the stock market!”
ZiChuan Lim
Consultant Accounting and Finance
Round 9 Footy Tipping Winner
Posted by Elizabeth: May 19, 2009Once again Cieanne Benham from Zurich Financial Services blitzed the people2people footy tipping competition winning Round 9 and another bottle of wine. This round Cieanne’s tactic was picking the underdogs (and ignoring her husband) which surprisingly paid off. Cieanne was kind enough to offer her prize to another tipper but we insisted she take the prize and enjoy watching the upcoming games with a glass in hand. Well done Cieanne!
Elizabeth Punshon
Consultant Temporary Services
My Company made a counter offer which I accepted and now I am still not happy. What now?
Posted by the Editor: May 18, 2009For your company to have made you a counter offer, I presume you had handed in your resignation, having accepted a new role. Even in these tough market conditions, companies will still make counter offers to keep valuable employees. However, in my experience, and there is research to support this, the reason people resign is not just about money. A number of factors contribute to a person taking the step to either look for a new role and/or hand in their resignation. The type of factors for example can be; an inability to work with their Manager, a feeling of being unappreciated or the company may have moved to a new location. Statistically, once a counter offer has been accepted, the average time before a re resignation is eight months.
A lot of people would like to be in your situation, however, many factors make up our working lives such as learning opportunities, colleagues and career development and I would imagine your original reasons would not have been resolved by the extra remuneration. I would discuss your situation with your Manager, maybe ask how you can be of more value to them. Of course, if you are in an untenable or an unsafe situation, you must leave.
Manda Milling
Director
Week 9 NRL Tipping Winner
Posted by Kirsten: May 14, 2009As the NRL competition continues to baffle the average pundit, Irene James from Brookfield Multiplex continues to be a reliable tipper. In 2008, Irene was the most successful weekly tipper on two occasions and now only 9 weeks in Irene has come up trumps again. She claims there is “no rhyme or reason” to her tipping however on further investigation Irene picks the Tigers because she is an avid fan, the Dragons because that is the team her partner cheers for and the Sea Eagles because her partner’s daughter likes them. “Stay loyal to your family and your team” says Irene. Congratulations to Irene enjoy your wine.
Kirsten Garrett
Senior Consultant
Old Girls Mentoring Programme
Posted by manda: May 14, 2009On Wednesday 6 May, I joined 46 other ‘Old Girls’ or former students from school, being Ravenswood School for Girls, in Gordon. Ravenswood conducts an annual mentor programme and asks former students to return to answer questions about their chosen career, the industry in which they work and how they juggle their responsibilities of social and personal commitments with their business life. This was the first time I had attended the careers evening and about the second time I had returned to the school in (I am loath to admit) 30 years!! The mentoring programme is open to all the students from Year Seven to Twelve, to enable them to plan what subjects they should or would be interested in studying and opening them up to careers in industries they may never have considered. I certainly had not considered recruitment as a career when I did my HSC! What I stressed to them is that you can have a number of careers in your working life and the world does not begin and end with the HSC. A tertiary education (whether a degree, a diploma or a certificate or trade) is essential to give you choices. When I joined the recruitment industry in 1994, the company I joined would not consider your application unless you had a degree and commercial business experience. Their concept was that they could train and teach you recruitment, but they wanted a solid commercial base behind you. I might add it was also my third career!
I can still remember the pressure and the expectation of the final year at high school and I still believe the HSC is the hardest year you will ever do. It was great to see the girls so full of enthusiasm and be able to talk to their parents as well and offer some ‘real world’ anecdotes.
I certainly learned a lot and gained a real insight into the year of 2009, in addition to meeting some ‘not so’ Old Girls, such as Danielle Young (2005).
Manda Milling
Director and Ravenswood ‘Old Girl’
Footy Tipping Round 8 Winner!
Posted by the Editor: May 8, 2009Week 8 and most of us are struggling to make any impact in this year’s tipping. Not Ivan Gorridge of Investa! Picking 7 out of 8 correct games this week, Ivan claims to know absolutely nothing about NRL. Originally from Perth, a West Coast Eagles supporter, Ivan claims to be up the top of his internal AFL tipping competition but has no idea how he picked so many correct winners. I know most of us claim to be in the same boat as Ivan (ie know very little about the code), however to prove his point we asked him a few quick questions on NRL. Here are his answers:
Q: How many players take the field in an NRL Game?
A: I think it is either 15 or 11.
Q: What number does the full back wear on his jersey?
A: Do they have assigned numbers to specific positions?
Q: Who is currently leading the NRL competition?
A: Could be the Bulldogs
Q: What is your tip for the grand finalists?
A: Rabbitohs (sentimental tip) vs Tigers (I live in the inner west)
Kirsten Garrett
Senior Consultant
Unemployment at 5.4% is this fact or fiction?
Posted by the Editor: May 8, 2009Yesterday the Australian unemployment rate was released and to everyone’s surprise fell to 5.4% nationally. Having been in the recruitment industry some 15 years I was astonished at this result considering our experience of the market at people2people for the corresponding period.
In response, I thought I would canvas my contacts within the industry throughout Australia and New Zealand to establish anecdotally what market impressions they have. I have listed a selection of their comments below and it makes interesting reading. The bottom line is that the recruitment industry has not seen any increase in activity which would lead me to question the integrity of the latest ABS numbers.
“..busy with contract roles, but perm continues to show very little signs of life”, Sydney
“I think the big competitors are still talking themselves down and that’s a good thing..”, Melbourne
“We have a sense that things are just beginning to lift. Organisations who have been talking ‘head count freeze’ are now ready for a coffee, giving us the impression that at the end of this quarter it will tell a different story”, Sydney
“My guess is things will rise and fall over the next 2 years – a few months might trend up to then slump back – and essentially things will remain flat for the next 18 months”, New Zealand
“I have been speaking with a lot of agencies this week and they have all commented that the market has been a bit more buoyant over the last couple of weeks. Most companies I have been in contact with have had a good April. However, I have really been talking to IT and Finance agencies.”, Rec to Rec , Sydney
“…feedback that we have been getting at the moment is that companies will reevaluate after this financial year. “, Sydney
“We are seeing a continuing increase in the average number of people that apply to an ad. Ad levels have also fallen a lot in the last couple of months. For us, contracting is ok but perm is very slow and we haven’t seen anything that indicates any change to that.”, Melbourne
“we are NOT seeing an increase in hiring intentions across Australia. There has been no change in new jobs registered from Feb, March, to April. We are not seeing any change in the market, although the deterioration , or freefall downwards seems to have stopped, but we are not yet seeing any signs of growth.”, Melbourne
“I have seen a definite pick up in certain areas over the last three to four weeks.”, Sydney
“We certainly didn’t see an uplift in April - quite the opposite although May is looking a bit more positive”, Sydney
“There is no indication here in QLD that the unemployment rate is falling, quite the opposite”, Brisbane
“…people have commented in just the last week that they have seen an increase in perm roles coming on and clients commenting that they think they’ll start to hire in the new financial year.” Rec to Rec, Sydney
“..no one is really seeing the shift except for the retail sector.”, Sydney
“Requirements are down on both contract and perm and the length of time between taking a perm role and filling it has increased.”, London
“It has definitely picked up in the past 2 weeks, but still nowhere near being busy.”,Sydney
Interesting times!
Mark Smith
Director
It’s not `rocket science’
Posted by Simon: May 5, 2009The following article was recently printed in the Small Business Section of the Sydney Morning Herald and whilst not necessarily being what we want to hear, it is good food for thought for those still looking for a quick turnaround in market conditions.
Simon Gressier
Director
Simple. Powerful.
Peter Sheahan | May 4, 2009 - SMH
When it comes to learning how to survive in lean times there is no one better to listen to than an uber-rich first generation European immigrant from New York.
Now I say first generation, because I don’t mean the Harvard educated, hard working lawyer type.
That was the third generation. I mean the ‘came with nothing but the clothes on his back and built a textiles empire with his bare hands in a one bedroom flat’ kind of guy.
This is the man I met on a recent trip to the Big Apple. His advice on how to survive an economic crisis, and he has seen a half-a-dozen, is not from the latest self-help book, and cannot be boiled down to some interesting psychologists view of how we behave.
Nor does his advice resemble some MBA garble along the lines of finding synergistic, cost-effective, outsourced strategic alliances. No it was simple, and yet powerful.
Be prepared to work twice as hard for half the money. That is it. After nearly 90 years of life, 75 fending and working for himself, this is his advice. Stop bitching, and start working and if you have to… do it for less than anyone else.
Things in Australia really did get out of hand in the last few years. Companies acting like concierge services to their graduates.
Administrative assistants making $50k. Some truck drivers were reportedly making $150,000. We have had it good and if you didn’t make money in the last decade you were taking drugs or living under a rock.
That world is now gone, and the medicine is, get to work. The irony is, we were working pretty hard anyway. Australians now work longer hours than almost any other western country on earth. The question is what were we doing?
The biggest shift that comes with a downturn is not necessarily how many hours we work but what we work on during those hours. The people who survive - even thrive - in these lean economic times will be the ones who obsess over dollar productive activity.
The dollar rules in these times and if you can save your company some of it or you can make them more of it you are an asset. If you cannot, you are an expense. Expenses are ripe for downsizing, meanwhile no one fires an asset.
Make a list of the five things you do on a weekly basis that either boost revenue, or cut costs and double the amount of time you invest in them. If you make five cold calls per week, make ten. If you make six client visits a week, do 12.
If you renegotiate one supplier agreement per month, do two. Double your efforts, and if push comes to shove you would be better to do it for half the money than lose your job and have a massive black hole on your resume that you will need to explain when the market turns around and you’re still hunting for a job
Does this make my employment record look ‘choppy’?
Posted by manda: May 4, 2009I have 6 years of work experience across 8 different jobs and I often get questioned about this. The truth is I quickly moved away from jobs I didn’t like to ones I did like. This has helped me to develop faster, but does it make my employment record look ‘choppy’?
Whilst employers do not expect people to stay with them for their entire working life anymore, there is still a value placed on a ’stable working history’. From the employer’s perspective, they want a return on the training and time they have invested in you. I can understand from your perspective, you want to gain as much diverse experience as you can quickly
However, 8 roles in 6 years would look excessive on a resume. We have all made some career mistakes along the way; however, the market will only be forgiving for so long. To stabilise your work history, you need to reevaluate your selection criteria. You also have the opportunity to consider a temporary role that has a view to permanency
Whilst the employment market is flat, you won’t be considered as competitive if your background is considered ‘choppy’.
Manda Milling
Director