RCSA Web Survey Round 24 – September 2007. Executive Summary Summary Both business confidence and expected changes in volume of business have dipped

RCSA Web Survey

Round 24 – September 2007

Executive Summary

Summary Both business confidence and expected changes in volume of business have dipped slightly

to 70.5% (-3.3%) and 5.2% (-1.4%) respectivelyo SA is more confident that their business will increase in the next three months and NZ estimates that

their business will change at about half the rate of Australia The already tight labour market has tightened slightly more especially skills and number of

applicantso All locations are finding very similar labour market conditions excepto SA is least concerned by candidates having work ready attitudes and skillso WA has the most problems finding candidates for positions

Staff turnover has risen 2% to 29% pa and staff growth has dropped by 9% to 11.6% pa. This is consistent with high confidence but expected low growth in business

o There are no substantial locational differences There has been a substantial increase in permanent full-time employment, and on-hire

placements and a fall in contractor placements The majority of placements are on-hire and the proportion of those placements as part of the

total has risen from 89% of all placements to 92% The proportion of total revenue for all services has remained virtually static

o SA & WA get a larger proportion of revenue from on-hired employeeso NZ gets a larger proportion of from recruitment services while SA and WA get less

Note: If locational differences are not mentioned, the differences are insufficient for comment

Executive Summary

Summary – issues of most concern Lack of suitable candidates remains the top concern. Difficulty in finding

suitable recruitment staff remains in second place and both have worsened slightly

o NSW is close to average on every thingo VIC is more worried about the state of the economy and otherwise average on

everythingo QLD is less worried about restructuring industrieso SA is more worried about retaining and finding recruitment staff and workers

compensation and unfair dismissal and less worried about the state of the economy, client hiring intentions, financing growth and advertising costs

o WA is more concerned finding and retaining suitable recruitment staff, legal issues with on-hired staff, immigration issues, OH&S and unfair dismissal and less concerned with hiring intentions of clients, financing growth, maintaining profits and price undercutting

o NZ is least worried about retaining staff, maintaining profits and industrial relations and more worried about lack of hiring intentions of clients

Note: If locational differences are not mentioned, the differences are insufficient for comment

Executive Summary - Skills

The top 5 shortages remain as for June with the biggest skills shortages being for engineering professionals and associates with other business professionals in short supply. Trades remain in short supply with electrical trades jumping into 6th place from 11th. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists

The top 12 skills shortages being:o Non-building professional engineers o Business professionals o Non-building engineering associates and technicians o Building associates and technicians o Building professionals o Electrical trades (building) o IT and telecommunications professionals o Non-building electrical/electronic trades o Receptionists and telephonists o Health professionals o Carpenters and joiners o Metal trades

Excutive summary cont’d Special section - Skilled migration

Slightly less than half of the respondents are involved in using visas to bring in skilled migrants

Of the respondents that use visas (48%) the majority use sub-class 457o 856 visas vary markedly by location, they are usedo 41% in Qld , 20% in Vic, 17% in NSW and none in other locations

The respondent is involved initiating the idea of sourcing skilled migrants most of the time either alone or with the client

Nearly three quarters believe that temporary skilled migrants are necessary to meet the labour needs of clients and nearly half wish to know more about the visas

o WA is most happy with their knowledge and fewer want to know more Four out of ten respondents understand sufficiently the new laws on employment

or referral of illegal workers which commenced on 19 August

Process

Web surveyo E-mail business heads in both NZ and Australia

o Data collection began late September 2007 and completed 5 October 2007

o The total annual revenue of respondent companies is $3.02 billion up from $2.09 billion last round

o The number of sole traders in the sample has dropped 1% to 14%

Demographics of sampleThe number of sole traders in the sample has remained stable

Sole trader14%

Other86%

Trader status

49%

36%

35%

10%

15%

14%

3%

6%

22%

0% 10% 20% 30% 40% 50% 60%

NSW

Victoria

Queensland

ACT

South Australia

Western Australia

Tasmania

Northern Territory

New Zealand

(note multiple locations allowed sums to more than 100%)

Location company operates in

28%

25%

16%

3%

10%

8%

1%

2%

7%

0% 10% 20% 30% 40% 50%

NSW

Victoria

Queensland

ACT

South Australia

Western Australia

Tasmania

Northern Territory

New Zealand

Proportion of revenue generated by location

Demographics of sampleThe total annual revenue of respondent companies is $3.02 billion up from $2.09 billion last round

Total

Ann

ual r

even

ue $

m

Total Australia=$2.82bApprox 93% of revenue

$831

$768

$494

$100

$290

$252

$25

$62

$199

$3,021

Demographics of sampleThe proportion of $100m+ companies remains the same as last round at 5%.

20

44

13

7

11

5

0 10 20 30 40 50

Under $1m

$1M to $5M

$5M to $10M

$10M to $20M

$20M to $100M

$100M and above

% of sample

Annual turnover of companies

RCSA members confidence about business improvements in the next three months has declined slightly

DifferencesSA is more confident than average

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

September (2007)

June (2007)

March (2007)

December (2006)

September (2006)

June (2006)

February (2006)

November (2005)

August (2005)

April (2005)

December (2004)

September (2004)

June (2004)

April (2004)

December (2003)

September (2003)

June (2003)

March (2003)

December (2002)

September (2002)

July (2002)

February (2002)

December (2001)

September (2001)

71%75%

78%70%

74%68%

71%66%

72%76%

72%74%75%

70%76%76%

74%69%

84%67%

81%85%

63%78%

18%21%16%

20%19%

26%23%

29%27%18%

18%16%

19%22%

19%20%

19%20%

12%18%

13%8%

17%13%

10%5%

6%10%

7%6%6%6%

1%6%

10%10%

6%8%

5%4%

7%11%

4%15%

6%7%

20%9%

Confidence that business will improve in the next 3 months

%Agree %Neutral %Disagree

Both business confidence and expected changes in volume of business have dipped slightly to 70.5% (-3.3%) and 5.2% (-1.4%)

respectively.

Scale:0=strongly disagree50=neutral100=strongly agree

DifferencesSA is more confident that their business will increase in the next three months and NZ estimates that their business will change at about half the rate of Australia

60.0

70.0

80.0

Av

era

ge

I am confident that our business will improve over the next three months

2%3%4%5%6%7%8%

Av

era

ge

Volume (%) your business will change next quarter

Staff turnover has risen 2% to 29% pa and staff growth has dropped by 9% to 11.6% pa. This is consistent with high

confidence but expected low growth in business.

Differences•There are no substantial locational differences

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Sep

t (2001)

Dec (2001)

Feb

(2002)

July (2002)

Sep

t (2002)

Dec (2002)

Mar (2003)

Jun

(2003)

Sep

t (2003)

Dec (2003)

Ap

ril (2004)

Jun

e (2004)

Sep

t (2004)

Dec (2004)

Ap

ril (2005)

Au

g (2005)

No

v (2005)

Feb

(2006)

Jun

(2006)

Sep

t (2006)

Dec(2006)

March

(2007)

Jun

e(2007)

Sep

t(2007)

Av

era

ge

Staff turnover (% annualised)

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Sep

t (2001)

Dec (2001)

Feb

(2002)

July (2002)

Sep

t (2002)

Dec (2002)

Mar (2003)

Jun

(2003)

Sep

t (2003)

Dec (2003)

Ap

ril (2004)

Jun

e (2004)

Sep

t (2004)

Dec (2004)

Ap

ril (2005)

Au

g (2005)

No

v (2005)

Feb

(2006)

Jun

(2006)

Sep

t (2006)

Dec(2006)

March

(2007)

Jun

e(2007)

Sep

t(2007)

Av

era

ge

Staff growth (% annualised)

The already tight labour market has tightened slightly more especially skills and number of applicants

Scale:0=strongly disagree50=neutral100=strongly agree

Differences•All locations are finding very similar labour market conditions except•SA is least concerned by candidates having work ready attitudes and skills• WA has the most problems finding candidates for positions

20

30

40

50

60

70

80

Sep

t (2001)

Dec (2001)

Feb

(2002)

July (2002)

Sep

t (2002)

Dec (2002)

Mar (2003)

Jun

(2003)

Sep

t (2003)

Dec (2003)

Ap

ril (2004)

Jun

e (2004)

Sep

t (2004)

Dec (2004)

Ap

ril (2005)

Au

g (2005)

No

v (2005)

Feb

(2006)

Jun

(2006)

Sep

t (2006)

Dec(2006)

March

(2007)

Jun

e(2007)

Sep

t(2007)

Av

era

ge

s

Labour market scores

It is easy to f ind appropriate applicants for positions

Applicants generally have the appropriate work ready attitudes

Applicants generally have the right mix and level of skills

Applicants generally have the right capabilities

Irrespective of appropriateness there are at least as many applicants for positions as needed

0% 20% 40% 60% 80% 100%

It is easy to find appropriate applicants for positions

Applicants generally have the appropriate work ready attitudes

Applicants generally have the right mix and level of skills

Applicants generally have the right capabilities

Irrespective of appropriateness there are at least as many applicants for positions as there are positions

5%

34%

23%

57%

26%

11%

27%

27%

26%

8%

84%

39%

51%

18%

66%

Labour market

%Agree %Neutral %Disagree

Labour market scores have remained stable except that it has become harder to find applicants

+10%

-5%

-9%

Staff placed and on-hired workersThere has been a substantial increase in permanent full-time employment, and on-

hire placements and a fall in contractor placements.

June 2007

September 2007

Note: variability may arise because of a few large numbers – this is a problem of small data sets

Mean Minimum MaximumPermanent full-time placements 35.61 0 600Permanent part-time placements 1.63 0 25On-hire employment 479.68 0 35,000Contractors 20.66 0 1,900

Mean Minimum MaximumPermanent full-time placements 60.58 0 1,450Permanent part-time placements 3.35 0 150On-hire employment 915.54 0 33,787Contractors 16.70 0 1,000

The majority of placements are on-hire and the proportion of those placements as part of the total has risen from 89% of all placements to 92%

4% 7% 4% 5% 9%

14%

11%5% 5%

13%5% 5%

10% 7% 6%1% 0% 0% 0% 1% 2%

2% 0% 1% 1% 0% 1% 1% 0% 0%

88%89%

84%

78%85%

72%

84%93% 93%

82%

92% 93%86% 89% 92%

7% 4%

11%16%

5%

12%

3% 1% 2% 3% 2% 2% 4% 4% 2%0%

20%

40%

60%

80%

100%

Ave

rag

ePlacement by type (%)

Permanent full-time placements Permanent part-time placements

On-hire employment Contractors

The proportion of total revenue for all services has remained virtually static

Difference from average•SA & WA get a larger proportion of revenue from on-hired employees•NZ gets a larger proportion of from recruitment services while SA and WA get less

33%

39% 40% 42%

36%38%40%

37%40% 41% 42% 41%

35% 34%37% 38%

12%8%

12%15%

11% 13% 12%10%

7%10% 10% 9% 10% 10% 10% 10%

38%

37% 37%35%

43%37% 44% 43% 43%45% 45%

42% 43%47%

43% 43%

0%

10%

20%

30%

40%

50%

Ave

rag

e

Service revenue (%)

On-hired employee services Contractor services Recruitment services

A substantial proportion of companies have neither contractors nor on-hire employees.

28

12

13

7

9

11

8

11

49

24

7

3

5

6

3

3

0 20 40 60

None

1 thru 19

20 thru 49

50 thru 99

100 thru 199

200 thru 499

500 thru 1999

>2000

% of sample

On-hire and contactor numbers on books

Contractors On-hire

50

21

22

13

16

20

14

20

87

42

13

6

8

10

5

5

0 20 40 60 80 100

None

1 thru 19

20 thru 49

50 thru 99

100 thru 199

200 thru 499

500 thru 1999

>2000

Number

On-hire and contactor numbers on books

Contractors On-hire

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Restructuring industries

Financing growth

Lack of hiring intentions by clients

Industrial relations

Difficultly in retaining suitable recruitment staff

Cost of advertising

State of the economy

Maintaining profitability/fee levels

Price undercutting in our industry

Difficultly in finding suitable recruitment staff

Lack of suitable candidates

27%

31%

34%

34%

41%

47%

52%

52%

60%

71%

95%

73%

69%

66%

66%

59%

53%

48%

48%

40%

29%

5%

%Agree %Disagree

Concerns for the present and near future (all respondents)

Lack of suitable candidates remains the top concern. Difficulty in finding suitable recruitment staff remains in second place and both have worsened slightly.

0% 20% 40% 60% 80% 100%

Accident Compensation Act (NZ)

Occupational Health and Safety Act (NZ)

Employment Relations Act (NZ)

ACC levies (New Zealand)

Immigration issues (NZ)

New Zealand

Unfair dismissal and casuals (Australia)

Workers' compensation legislation (Australia)

Immigration issues (Australia)

OH&S Issues (Australia)

Employment legislation (Australia)

Legal issues about on-hired staf f (Australia)

Australia

22%

26%

38%

39%

64%

33%

43%

46%

46%

48%

59%

78%

74%

62%

61%

36%

67%

57%

54%

54%

52%

41%

%Agree %Disagree

Concerns for the present and near future (National issues)

In Australia concerns about employment issues have dropped 9% and has returned to second concern behind legal issues about on-hired staff while in NZ immigration issues have risen 9% and remain the top

issue

Location differences

Note: <50=less than neutral50=neutral>50 = greater than neutral

Compared to average•NSW is close to average on every thing•VIC is more worried about the state of the economy and otherwise average on everything•QLD is less worried about restructuring industries•SA is more worried about retaining and finding recruitment staff and workers compensation and unfair dismissal and less worried about the state of the economy, client hiring intentions, financing growth and advertising costs•WA is more concerned finding and retaining suitable recruitment staff, legal issues with on-hired staff, immigration issues, OH&S and unfair dismissal and less concerned with hiring intentions of clients, financing growth, maintaining profits and price undercutting•NZ is least worried about retaining staff, maintaining profits and industrial relations and more worried about lack of hiring intentions of clients

Variable NSW VIC Qld SA WA NZWeighted

aveSubstantially less than averageSubstantially more than average

State of the economy 43.00 56.00 44.00 38.00 43.00 46.00 45.90Lack of suitable candidates 93.00 92.00 92.00 88.00 96.00 97.00 92.92Lack of hiring intentions by clients 31.00 31.00 21.00 13.00 19.00 32.00 26.52Difficultly in finding suitable recruitment staff 75.00 77.00 79.00 88.00 82.00 53.00 75.08Difficultly in retaining suitable recruitment staff 45.00 48.00 52.00 71.00 62.00 39.00 49.96Financing growth 24.00 26.00 25.00 13.00 14.00 24.00 22.83Maintaining profitability/fee levels 48.00 53.00 44.00 50.00 48.00 56.00 49.45Price undercutting in our industry 65.00 63.00 53.00 63.00 45.00 59.00 59.50Restructuring industries 22.00 25.00 9.00 13.00 19.00 24.00 19.21Cost of advertising 43.00 38.00 45.00 29.00 38.00 42.00 40.59Industrial relations 36.00 40.00 33.00 42.00 38.00 18.00 34.57

Workers' compensation legislation (Australia) 43.00 50.00 45.00 79.00 62.00 50.59Employment legislation (Australia) 53.00 48.00 46.00 46.00 52.00 49.35Legal issues about on-hired staff (Australia) 59.00 63.00 64.00 67.00 81.00 64.06Immigration issues (Australia) 51.00 42.00 55.00 54.00 64.00 51.31OH&S Issues (Australia) 43.00 48.00 47.00 58.00 71.00 49.34Unfair dismissal and casuals (Australia) 32.00 40.00 38.00 46.00 48.00 38.28

Skills issues

38%

20%

25%

23%

26%

24%

18%

23%

16%

24%

18%

19%

14%

20%

14%

22%

14%

16%

14%

14%

12%

28%

19%

18%

13%

13%

18%

12%

19%

8%

14%

12%

17%

10%

16%

6%

14%

12%

13%

12%

13%

22%

17%

18%

20%

18%

23%

19%

27%

22%

20%

22%

24%

22%

28%

24%

25%

22%

22%

26%

1%

5%

2%

1%

1%

0%

4%

1%

4%

0%

0%

0%

5%

0%

4%

0%

3%

0%

0%

3%

1%

1%

1%

1%

2%

1%

1%

1%

1%

1%

1%

1%

1%

1%

0%

1%

1%

1%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-building professional engineers

Business professionals

Non-building engineering associates and technicians

Building associates and technicians

Building professionals

Electrical trades (building)

IT and telecommunications professionals

Non-building electrical/electronic trades

Receptionists and telephonists

Health professionals

Carpenters and joiners

Metal trades

IT and telecommunications technicians

Plumbers

Other clerks

Nurses

IT and telecommunications trades

Bricklayers

Roofers

Drivers

Supply of skills by occupation in order of total shortage

Shortage long term

Shortage short term

Neutral

Over supply short term

Over supply long term

Skills shortages by occupation – top 20The top 5 shortages remain as for June with the biggest skills shortages being for engineering professionals and

associates with other business professionals in short supply. Trades remain in short supply with electrical trades jumping into 6th place from 11th. The shortage of health professionals and nurses remains substantial as does the shortage of

receptionists and telephonists

50%49%44%41%39%37%36%35%35%32%32%31%31%30%30%28%28%28%27%26%

To

tal

sho

rtag

e

12%

14%

6%

11%

14%

13%

8%

6%

10%

7%

6%

8%

8%

7%

7%

5%

9%

7%

4%

3%

2%

13%

10%

16%

11%

9%

9%

13%

14%

9%

10%

11%

9%

8%

9%

7%

10%

6%

7%

6%

6%

7%

30%

25%

37%

27%

26%

24%

27%

30%

30%

32%

27%

28%

32%

31%

32%

34%

36%

32%

35%

34%

38%

5%

0%

9%

1%

1%

1%

1%

2%

3%

1%

3%

2%

1%

3%

2%

1%

1%

5%

2%

2%

3%

1%

1%

4%

0%

1%

1%

1%

1%

0%

1%

1%

1%

1%

0%

0%

0%

0%

1%

1%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sales staf f (not professionals)

Wall tilers

General managers

Mobile plant operators

Medical technicians

Vehicle trades

Machine and stationary plant operators

Trades assistants and factory hands

Other personal service workers

Scientists

Building & construction labourers

Mining labourers

Scientif ic technicians

Food trades

School teachers

Rail drivers

Social professionals

Waiters and restaurant staf f

Cleaners

Agricultural labourers

Farm managers

Supply of skills by occupation in order of total shortage

Shortage long term

Shortage short term

Neutral

Over supply short term

Over supply long term

Skills shortages by occupation – bottom 20

To

tal

sho

rtag

e

25%24%23%23%22%22%20%20%19%17%16%16%16%16%15%15%14%14%10%10%9%

Top 10 skill shortages by location

NSW1. Non-building professional engineers

2. Business professionals

3. IT and telecommunications professionals

4. Non-building engineering associates and technicians

5. Building associates and technicians

6. Building professionals

7. IT and telecommunications technicians

8. IT and telecommunications trades

9. Electrical trades (building)

10. Receptionists and telephonists

VIC1. Business professionals

2. Non-building professional engineers






8. Receptionists and telephonists


10. Non-building electrical/electronic trades


Queensland1. Business professionals







8. IT and telecommunications trades

9. Health professionals


South Australia1. Business professionals











Western Australia









9. Carpenters and joiners

10. Drivers

New Zealand









9. Carpenters and joiners

10. Plumbers

Special section

Skilled migration

Slightly less than half of the respondents are involved in using visas to bring in skilled migrants

Difference from average•None

0 10 20 30 40 50 60

Yes I am a direct employer and sponsor of skilled migrants

Yes I recommend and or source skilled migrants for clients but do not act as the sponsor

No

20

27

52

% of respondents

0% 20% 40% 60% 80% 100%

sub-class 457

sub-class 856

sub-class 121

88

3

8

12

97

92

%Yes %Disagree

Visa sub-classes usedOf the respondents that use visas (48%) the majority use sub-class 457

Difference from average•856 visas vary markedly by location, they are used

•41% in Qld , 20% in Vic, 17% in NSW and none in other locations

The respondent is involved initiating the idea of sourcing skilled migrants most of the time either

alone or with the client

0 10 20 30 40 50

Suggested by our company and by the client in roughly equal measures

Usually suggested by our company

Usually suggested by the client

49

44

7

% of respondentsDifference from average•None

Nearly three quarters believe that temporary skilled migrants are necessary to meet the labour needs of clients and nearly half wish to know more about the

visas

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do you believe temporary skilled migrants are necessary to meet the labour needs of your clients?

Are you comfortable in your knowledge and understanding of the visas available to you and your

clients?

Do you wish to know more about these visas?

75

58

46

25

42

54

%Yes %NoDifference from average•WA is most happy with their knowledge and fewer want to know more

Estimates of numbers of skilled migrant visas recommended and sponsored

0 10 20 30 40 50 60 70 80

None

1-10

11-30

31-50

51-70

71-100

101+

51

24

12

5

3

1

4

73

16

6

2

1

2

% of respondents

%Sponsor skilled migrant visas %Recommend skilled migrant visasDifference from average•None

Four out of ten respondents understand sufficiently the new laws on employment or referral of illegal workers which commenced on

19 August

0 5 10 15 20 25 30 35 40 45

Yes I understand them sufficiently

I have heard about them but don't know much detail

No I am not aware of them

41

38

21

% of respondents

Difference from average•None

Documents

RCSA Web Survey Round 24 – September 2007. Executive Summary Summary Both business confidence and expected changes in volume of business have dipped