Hays Engineering
January - March 2012
Hotspots
An increase in mining and resources activity has created demand for Mechanical Design Engineers with heavy industry and bulk materials handling experience in New South Wales. An increase in the number of employers using Revit/BIM on large scale building services projects has created a need for Design Drafters with Revit experience. The state also needs 12D Designers with practical civil/structural experience and Asset Engineers.
In the Northern Territory, the commencement of several major projects in 2012/2013 has created demand for mid-level and senior Consulting Engineers with experience in civil and structural infrastructure. Engineers and Draftsmen/women with strong design skills and a long-term commitment with the Northern Territory will be able to fast-track their careers.
Queensland needs Electrical Design Engineers. There is a shortage of experienced and suitably qualified candidates despite the current market's pace.
In Western Australia, the engineering market is still dominated by the mining industry, particularly in the heavy industrial design, environmental, rail and non process infrastructure space. Much of the mining related recruitment is project based, and so the need for long-term contractors continues to increase. Permanent recruitment is reserved for engineers beginning their career who require development or managers in strategic corporate positions.
In particular demand in the mining industry are Mechanical Design Engineers at all levels, Senior to Principal Engineers (Environmental), Specialist Process Engineers and 12D Designers.
In other areas of demand, Seniors in contaminated sites and Team Leaders with environmental impact assessment, FIFO experience and local knowledge are needed. As mining projects increase, consultancies are losing candidates to mining work, and senior candidates typically want salary increases to take consultancy roles.
The state also needs Senior Civil Engineers and Civil Drafters in response to the major growth surrounding mining and resources work for consultancies. 12D Designers at all levels are also in very short supply across the industry.
In the Victorian market there is a continual requirement in the telecommunications sector due to the wireless network upgrades, which are creating demand for Structural Design Engineers and Drafters with telecommunications experience. In addition, the release of major government funded infrastructure projects has fuelled demand for structural candidates, in particular those with bridge experience. Surveyors with local experience in the cadastral, feature and construction set out disciplines are also in demand.
There is a skills shortage for Senior Civil Engineers with local experience in designing related civil elements on buildings, land development and sub-division projects, particularly with developed skills in 12D. As with New South Wales, Victoria has seen an increase in demand for Mechanical & Electrical Revit Design Drafters in the building services sector.
In the water sector, water boards are required to complete their asset and expansion plans and this has created a need for skilled Asset Engineers. There are also extensive upgrades and new project rollouts commencing in 2012 which are creating a requirement for experienced Project Engineers.
Overcoming skills shortages
For skills in demand, employers are offering competitive salaries and consultancies are offering attractive benefits packages. Many employers are now expanding their search with the use of both national and international recruitment campaigns. They are sponsoring overseas candidates, particularly those from the UK, and will also relocate people from interstate. New Zealand citizens are being considered in greater number.
For example, environmental and civil professionals are being sourced and relocated to Western Australia, particularly from the UK. Design Engineers for the large mine and port developments are coming from South Africa and the Americas. Another avenue being explored is transferable skills from similar industries such as oil and gas.
Employers are offering salary increases, training and support for internal employees to try and retain them. Employers in Victoria are also leveraging off internal referral programs.
The coming quarter
We expect temporary and permanent vacancy activity to rise by February as the festive season passes. We will likely see a gradual increase in commercial building projects, while many consultancies will also be recruiting.
In the mining industry in Western Australia, strong signs of further capitalisation from China for iron ore and our prediction that the price of metals will continue to rise, particularly gold, will lead to requirements for design engineers for mining companies and engineering consultancies. These candidates will be needed to drive the large mine, port and rail developments being run out of Western Australia - these projects are for the local industry as well as for Africa, South America and Asia. We expect candidates will continue to dictate terms of engagement this quarter, whether their preference is contract or permanent and employers will show further flexibility in rates and location.
Executive recruitment
We will see some executive vacancy activity this quarter, most notably in the Northern Territory where Division or Department Managers capable of managing teams and generating new business are in high demand. There will also be high demand in Western Australia as project teams set up for new developments and existing studies gain funding approval and enter detailed design phase. Project Directors, Project Managers, Engineering and Discipline Managers are all sought after. Most businesses are requesting Perth-based candidates with quality networks to help build a team of engineering experts and local experience.
Employer trends
Towards the end of last year employers adopted a cautious approach to hiring due to both the time of year and global economic uncertainty. While an element of this caution will remain, we are also now seeing demand rise for skilled and experienced candidates.
One example of this caution is the inflexibility we are starting to see when recruiting. Employers often want a candidate that matches a very specific skills list with local knowledge and local experience. They will wait for the right person to become available.
But highly skilled candidates remain in short supply. As the skills shortage tightens, employers are becoming more flexible regarding salary offers. This is most obvious for candidates with local knowledge, experience and contacts. We have also seen instances of employers introducing performance related incentive schemes and offering subsidised education or study to aid staff retention.
Western Australian employers are far more flexible. To attract the candidates that are required, employers are increasing remuneration and hourly rates, paying retention bonuses and looking outside the local market. That said, they are more steadfast in their salary bandings and will not support vast rate increases. In terms of recruitment process, the speed of response on CVs and interviews is increasing, but some employers remain slow and as a consequence are missing out on top talent.
Candidate trends
New South Wales is experiencing a decrease in candidate levels due to competition with Queensland and Western Australian employers. In states where employers have made redundancies, candidates prefer to remain with their current employer for job security. Yet in others, demand for Engineers and Drafters of all disciplines is rising.
Overseas candidates are increasing in number, particularly those from Europe given the current economic turmoil in the region. For example, we've received a lot of interest in Western Australia from candidates from Greece. We've also seen an increase in Australian citizens returning from the UAE where funding has slowed down.
Senior candidates are keen to know about opportunities but will not move unless a significant pay rise is on offer.
In Western Australia, the top candidates have several options and often receive multiple offers. As a result there is an expectation from candidates that they will gain a salary increase above 20 per cent, and we've even seen some technical experts in the design side expecting an increase of up to 50 per cent. We are also seeing a prolific number of counter offers being accepted as current employers are attempting to retain their workforce.
Employee preference is to work on the client side and working for the owner's team.
