Hays Energy

January - March 2012

Hotspots

In the next three months we will see a rise in the number of transmission and distribution projects commencing, which will create demand for both office and site based expertise in most states and territories.

Distribution Design Engineers, Distribution Drafters, Mechanical Engineers, Asset Maintenance Engineers and Electrical Linesmen/women are currently in demand and there are significant shortages of good candidates with relevant Australian experience. NSW also needs Electrical Estimators and HV Electricians.

In Victoria's busy transmission and distribution market there are a number of new projects and upgrade projects underway and a shortage of candidates across design, construction, operations and maintenance for utility companies, consultancies and contractors.

Project Managers are in particular demand in South Australia. With employers unwilling to look at candidates from other industries, there is a shortage of candidates with local power system expertise.

In power generation we expect to see a rise in feasibility studies leading into design after the carbon tax announcement, with companies looking at alternative methods of producing electricity to become more carbon efficient. In Western Australia there have been a number of power stations built that now require operational staff. In New South Wales we will see a rise in renewable energy requirements with major renewable projects coming online in 2012, including the solar flagship project in Moree.

Overcoming skills shortages

Employers are beginning to become more open to considering overseas candidates. For those candidates with highly specialised skills, employers are offering relocation assistance and sponsorship if required.

High intensity training is now a common occurrence with employers trying to bring junior resources up to speed more quickly.

The coming quarter

This quarter started with a sharp rise in vacancy activity immediately following the New Year as companies came out of the festive season and immediately attempted to staff their projects as early as possible. We expect to see both temporary and permanent vacancy activity for the remainder of this quarter.

The transmission and distribution side of the industry will continue to grow across the country, and consequently there will be a high recruitment demand. With significant transmission and distribution projects awarded, we expect to see engineering companies increase their headcount to complete the design and construction phases. We also expect to see an increase in retro fit projects on both transmission and distribution and power generation, which will further increase the demand for Design Engineers.

In Victoria, the fossil fuel power stations in the La Trobe Valley are currently maintaining status quo until they fully assess the impacts of the carbon tax. There are a number of wind farm projects in the pipeline in Victoria and employers are hoping that some will move into the construction stage by the end of this quarter, but this is dependent on favourable economic and political circumstances.

Employer trends

While the use of LinkedIn is rising to aid candidate attraction, employers are becoming more aware of the need to keep face-to-face methods central to the recruitment process.

Employers are willing to review salaries and conditions in order to secure good candidates.

Transmission and distribution employers are conscious of the scarcity of qualified engineers and tradespersons and are thus providing good working environments to retain their staff. This focus on retention has also led to an increase in the number of employers adopting flexible working conditions, conducting regular salary reviews and making counter offers.

Candidate trends

There has been a continuing decrease in the number of available quality candidates. The focus is on project related candidates who have finished one project and who then become available for the next.

Project scale and advancement opportunities remain a significant factor in attracting candidates. Candidates will often wish to discuss the internal management structure of potential employers and the likelihood of advancement.

Candidates are aware of their value in the transmission and distribution side of the industry and are looking for opportunities paying more money and those organisations offering the most challenging projects.

Those with a renewable energy background are keeping a close eye on the market with the intention of applying to those organisations that begin constructing wind farms first. Once construction starts we expect to see a lot of candidates moving within the renewable industry.

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