RCSA Web Survey Round 25 – December 2007. Executive Summary Summary Both business confidence and expected changes in volume of business have remained

RCSA Web Survey

Round 25 – December 2007

Executive Summary

Summary Both business confidence and expected changes in volume of business have remained

exactly the same as last round at 70.5% and 5.3% respectively - there are no substantial differences between locations

There has been a slight improvement in the mix of skills and capabilities of applicants but the number of appropriate applicants hence the labour market remains tight

o All locations are finding very similar labour market conditions excepto WA has the most problems finding candidates for positions

Staff turnover has risen 4% to 33% pa and staff growth has dropped by 10% to 1.5% pa making this the lowest since July 2002. Obviously a tight labour market is taking its toll on staff growth

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

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

total has fallen from 92% of all placements to 80% - however caution needs to used in interpreting this level of change as a few large operators can skew the results

The proportion of total revenue for all services has remained stable except that recruitment services has risen 5% to 48% of the total

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 although it has eased by 5%. The state of the economy has risen to 3rd place followed by cost of advertising. Maintaining profitability and price undercutting in the industry has dropped in concern

o NSW is most concerned about the state of the economy, financing growth and more concerned about employment legislation and OH&S issues

o VIC is more worried financing growth and less worried about the state of the economy and legal issues about on-hired staff, otherwise is average

o QLD is less worried about financing growth, maintaining profits, price undercutting, industrial relations and OH&S issues

o SA is more worried about retaining and finding recruitment staff, maintaining profitability, industrial relations, workers compensation, employment legislation, legal issues about on-hired staff and immigration issues and less worried about financing growth

o WA is more concerned retaining suitable recruitment staff and less concerned with financing growth, restructuring industries, the cost of advertising, workers compensation, employment legislation and legal issues

o NZ is least worried about finding and retaining staff, price undercutting, the state of the economy and industrial relations and most worried about lack of hiring intentions of clients and restructuring industries

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

Executive Summary - Skills

The top 5 skills with the biggest shortages are business professionals and non-building professional engineers, associates and technician. These are followed by building professionals and electrical trades (building). Other trades remain in short supply. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists

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

Excutive summary cont’d Special section – New media

Use of new media to source candidates is common with 88% approaching passive candidates, 77% using niche or specialist internet job boards followed by refer a friend incentives 62% and social networking sites such as Facebook, LinkedIn and MySpace (38%)

o NSW is more likely to specify other

o VIC is less likely to use social networking sites, niche internet job boards and other

o SA is more likely to use social networking sites, refer a friend incentives, niche internet job boards and approaching passive candidates

o WA is more likely to use refer friend incentives, approaching passive candidates and other

o NZ is more likely to use social networking sites, niche internet job boards and less likely to use refer a friend incentives, approaching passive candidates and other

Executive summary cont’d Special section – Effects of the labour shortage on respondents

Candidate shortages result in 91% using more time and resources and almost as many expect this to increase. The shortages are creating challenges for the organisations (81%). 85% are changing their methods including using new media (65%)

o The only significant difference is SA says the candidate shortage is causing more problems for their business than other locations

Process

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

o Data collection began late November 2007 and completed 18 December 2007

o The total annual revenue of respondent companies is $1.87 billion up from $3.02 billion last round. The change is largely due to a smaller sample (126 cf 175 last round)

o The number of sole traders in the sample has dropped 4% to 10%

Demographics of sampleThe number of sole traders in the sample has dropped

Sole trader10%

Other90%

Trader status

$551

$455

$320

$82

$175

$142

$1

$1

$146

$1,874

42%

38%

27%

9%

15%

18%

2%

3%

25%

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

29%

24%

17%

4%

9%

8%

0%

0%

8%

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 $1.87 billion up from $3.02 billion last round.

The change is largely due to a smaller sample (126 cf 175 last round)

Total

Ann

ual r

even

ue $

m

Total Australia=$1.22bApprox 92% of revenue

Demographics of sampleThe proportion of $100m+ companies dropped by 1% from last round to 4%.

24

41

14

6

12

4

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

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

December (2007)

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)

73%71%

75%78%

70%74%

68%71%

66%72%

76%72%74%75%

70%76%76%

74%69%

84%67%

81%85%

63%78%

22%18%

21%16%

20%19%

26%23%

29%27%18%

18%16%

19%22%

19%20%

19%20%

12%18%

13%8%

17%13%

6%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

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

DifferencesNone

Both business confidence and expected changes in volume of business have remained exactly the same as last round at 70.5% and 5.3% respectively.

Scale:0=strongly disagree50=neutral100=strongly agree

DifferencesNone

60.0

70.0

80.0A

ve

rag

e

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 4% to 33% pa and staff growth has dropped by 10% to 1.5% pa making this the lowest since July 2002. Obviously a tight labour

market is taking its toll on staff growth

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)

Dec(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)

Dec(2007)

Av

era

ge

Staff growth (% annualised)

There has been a slight improvement in the mix of skills and capabilities of applicants but the number of appropriate

applicants hence the labour market remains tight

Scale:0=strongly disagree50=neutral100=strongly agree

Differences•All locations are finding very similar labour market conditions except•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)

Dec(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

8%

39%

28%

58%

30%

8%

33%

31%

32%

10%

84%

29%

41%

11%

60%

Labour market


Labour market scores indicate a slight easing of the labour market but it remains tight

+5% -10%

+5%

-8%

-6%

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

contractor placements with a fall in on-hire placements.

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

Mean Minimum MaximumPermanent full-time placements 79.59 0 5,200Permanent part-time placements 5.10 0 180On-hire employment 492.35 0 32,000Contractors 38.34 0 3,000

The majority of placements are on-hire and the proportion of those placements as part of the total has fallen from 92% of all placements to 80%

4% 7% 4% 5% 9%

14%

11%5% 5%

13%5% 5%

10% 7% 6%13%

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

88%89%

84%

78%85%

72%

84%93% 93%

82%

92% 93%86% 89% 92%

80%

7% 4%

11%16%

5%

12%

3% 1% 2% 3% 2% 2% 4% 4% 2%6%

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 stable except that recruitment services has risen 5% to 48% of the total

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%

36%

12%8%

12%15%

11% 13% 12%10%

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

38%

37% 37%35%

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

42% 43%

47%

43% 43%

48%

0%

10%

20%

30%

40%

50%A

vera

ge

Service revenue (%)

On-hired employee services Contractor services Recruitment services

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

28

13

9

10

8

13

7

12

47

25

6

8

4

5

2

2

0 10 20 30 40 50

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

35

17

11

13

10

16

9

15

59

32

8

10

5

6

3

3

0 20 40 60 80

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

Lack of hiring intentions by clients

Industrial relations

Difficultly in retaining suitable recruitment staff

Financing growth

Price undercutting in our industry

Maintaining profitability/fee levels

Cost of advertising

State of the economy

Difficultly in finding suitable recruitment staff

Lack of suitable candidates

26%

31%

36%

38%

39%

50%

52%

54%

58%

66%

93%

74%

69%

64%

62%

61%

50%

48%

46%

43%

34%

7%

%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 although it has eased by 5%. The state of the economy has risen to 3 rd place followed by cost of advertising.

Maintaining profitability and price undercutting in the industry has dropped in concern.

Concerns for the present and near future (National issues)

In Australia concerns legal issues (56%) and employment legislation (53%) remain the top issues while in NZ immigration issues have risen 3% and remain the top issue

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

Occupational Health and Safety Act (NZ)

Accident Compensation Act (NZ)

Employment Relations Act (NZ)

ACC levies (New Zealand)

Immigration issues (NZ)

New Zealand

Workers' compensation legislation (Australia)

Unfair dismissal and casuals (Australia)

OH&S Issues (Australia)

Immigration issues (Australia)

Employment legislation (Australia)

Legal issues about on-hired staf f (Australia)

Australia

16%

17%

19%

30%

67%

35%

37%

41%

49%

53%

56%

84%

83%

81%

70%

33%

65%

63%

59%

51%

47%

44%

%Agree %Disagree

Location differences

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

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

Variable NSW VIC Qld SA WA NZWeighted

aveSubstantially less than averageSubstantially more than average

State of the economy 69.00 53.00 67.00 63.00 59.00 50.00 60.54Lack of suitable candidates 92.00 85.00 94.00 89.00 91.00 90.00 90.05Lack of hiring intentions by clients 25.00 28.00 22.00 22.00 23.00 46.00 27.86Difficultly in finding suitable recruitment staff 80.00 68.00 76.00 79.00 73.00 45.00 70.50Difficultly in retaining suitable recruitment staff 46.00 40.00 50.00 61.00 59.00 36.00 46.56Financing growth 39.00 38.00 19.00 22.00 23.00 29.00 30.69Maintaining profitability/fee levels 52.00 59.00 48.00 65.00 62.00 59.00 56.26Price undercutting in our industry 54.00 57.00 39.00 53.00 52.00 41.00 49.95Restructuring industries 18.00 22.00 17.00 18.00 14.00 39.00 21.48Cost of advertising 53.00 50.00 50.00 50.00 38.00 57.00 50.54Industrial relations 41.00 41.00 25.00 47.00 33.00 22.00 35.20

Workers' compensation legislation (Australia) 38.00 39.00 30.00 50.00 25.00 36.38Employment legislation (Australia) 63.00 49.00 50.00 68.00 48.00 55.37Legal issues about on-hired staff (Australia) 65.00 50.00 58.00 67.00 50.00 57.94Immigration issues (Australia) 53.00 43.00 48.00 58.00 52.00 49.76OH&S Issues (Australia) 44.00 37.00 25.00 35.00 35.00 36.32Unfair dismissal and casuals (Australia) 36.00 35.00 38.00 41.00 30.00 35.91

Skills issues

18%

32%

21%

21%

22%

17%

20%

10%

12%

21%

13%

10%

21%

16%

13%

11%

8%

10%

14%

16%

26%

11%

17%

15%

13%

16%

12%

22%

17%

8%

15%

19%

7%

12%

14%

15%

17%

14%

10%

8%

17%

11%

14%

13%

8%

14%

12%

21%

18%

12%

11%

21%

12%

10%

9%

18%

29%

17%

20%

13%

2%

0%

0%

0%

0%

0%

0%

2%

4%

2%

0%

3%

1%

0%

0%

2%

11%

0%

1%

1%

0%

0%

0%

0%

0%

0%

0%

1%

0%

1%

0%

0%

0%

0%

0%

0%

2%

0%

0%

0%

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

Business professionals

Non-building professional engineers

Non-building engineering associates and technicians

Building professionals

Electrical trades (building)

Building associates and technicians

Non-building electrical/electronic trades

Receptionists and telephonists

IT and telecommunications professionals

Health professionals

Metal trades

Other clerks

Nurses

Carpenters and joiners

Plumbers

IT and telecommunications technicians

General managers

Machine and stationary plant operators

Scientif ic technicians

Medical technicians

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 skills with the biggest shortages are business professionals and non-building professional engineers, associates and technician. These are followed by building professionals and electrical trades (building). Other trades remain in short

supply. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists

To

tal

sho

rtag

e

44%43%38%36%35%33%32%32%29%29%29%29%28%28%28%26%25%25%24%24%

11%

9%

10%

13%

4%

11%

7%

9%

4%

7%

6%

11%

10%

5%

7%

7%

4%

8%

7%

4%

4%

13%

14%

13%

10%

17%

10%

14%

12%

17%

13%

14%

9%

9%

9%

6%

6%

9%

5%

5%

7%

5%

11%

17%

14%

18%

27%

16%

16%

13%

19%

14%

22%

13%

23%

20%

17%

21%

22%

21%

26%

21%

24%

0%

1%

1%

0%

2%

2%

0%

0%

0%

0%

0%

0%

0%

2%

2%

0%

2%

0%

1%

1%

2%

0%

0%

1%

0%

0%

0%

0%

0%

0%

0%

0%

1%

0%

1%

0%

0%

0%

0%

1%

1%

1%

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

Bricklayers

IT and telecommunications trades

Vehicle trades

Mobile plant operators

Sales staf f (not professionals)

Drivers

Building & construction labourers

Roofers

Trades assistants and factory hands

Wall tilers

Other personal service workers

Mining labourers

Scientists

Food trades

Agricultural labourers

School teachers

Social professionals

Rail drivers

Farm managers

Waiters and restaurant staf f

Cleaners

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

24%23%23%22%21%21%21%21%21%20%20%20%19%13%13%13%13%13%12%11%9%

Top 10 skill shortages by location

NSW1. Business professionals

2. Non-building professional engineers

3. Non-building engineering associates and technicians

4. Building professionals

5. Building associates and technicians

6. IT and telecommunications professionals

7. IT and telecommunications technicians

8. Electrical trades (building)

9. Non-building electrical/electronic trades

10. Scientific technicians

VIC1. Business professionals






7. Receptionists and telephonists


9. Nurses

10. Carpenters and joiners


Queensland1. Business professionals








9. Nurses


South Australia1. Non-building professional engineers



4. Business professionals






10. Plumbers


Western Australia







7. Mining labourers

8. Building & construction labourers

9. IT and telecommunications technicians

10. IT and telecommunications trades

New Zealand






6. Health professionals

7. Medical technicians

8. Metal trades



Special section

Use of new media to source candidates is common with 88% approaching passive candidates, 77% using niche or specialist internet job boards

followed by refer a friend incentives 62% and social networking sites such as Facebook, LinkedIn and MySpace (38%).

Difference from average•NSW is more likely to specify other•VIC is less likely to use social networking sites, niche internet job boards and other•SA is more likely to use social networking sites, refer a friend incentives, niche internet job boards and approaching passive candidates•WA is more likely to use refer friend incentives, approaching passive candidates and other•NZ is more likely to use social networking sites, niche internet job boards and less likely to use refer a friend incentives, approaching passive candidates and other

5

32

38

62

77

88

0 20 40 60 80 100

Second Life or other virtual worlds

Other

Social networking sites (e.g Facebook LinkedIn MySpace)

Refer a f riend incentives

Increasing the use of niche/specialist internet job boards

Approaching passive candidates

% of sample

Use of new media to source candidates

Other includes•Network groups•Referrals from other business•SMS subscriptions•Conferences

Candidate shortages result in 91% using more time and resources and almost as many expect this to increase. The shortages are creating challenges for the

organisations (81%). 85% are changing their methods including using new media (65%)

Difference from average•The only significant difference is SA says the candidate shortage is causing more problems for their business than other locations

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

We are using more time and resources finding candidates than we were a year ago

The quality and/or scope of candidate servicing and candidate care will increase further as a result of the tight labour market

We are changing the methods by which we source candidates

A candidate shortage is creating significant challenges for our business

The quality and/or scope of candidate servicing and candidate care has increased as a result of the tight labour market

We have started using some of the new media listed in the above section as a result of candidate shortages

91

90

85

81

80

65

7

8

12

12

16

22

2

2

2

6

5

13

Impacts of candidate shortages


Documents

RCSA Web Survey Round 25 – December 2007. Executive Summary Summary Both business confidence and expected changes in volume of business have remained