Employer intentions to hire reach 18-month high

Hudson Report reveals largest quarterly rise in almost four years

Dean Davidson

New research from Hudson, a leading provider of specialised recruitment, talent management and RPO solutions in Asia Pacific, reveals an optimistic outlook for the end of year with intentions to hire across Australia reaching the highest level in 18 months.

On the back of the recent drop in the official unemployment rate, the latest Hudson Report: Employment Trends[1] found that the number of employers looking to increase headcount in the final quarter of 2014 rose to 23.9% – the highest level since Q2 2013. The 2.7 percentage points (pp) increase over the previous three months also represents the highest quarterly rise recorded in almost four years.

The positive sentiment is consistent across every state in Australia, excluding only the ACT. Positive hiring intentions for the final quarter of the year also increased in seven out of the ten professions surveyed.

“Hiring intentions are all about sentiment, and employer sentiment has improved markedly,” said Dean Davidson, Executive General Manager, Hudson Australia. “Over recent weeks, we have seen improvements in a number of indicators of employment conditions [2] and our research shows significantly more employers are looking to hire than to fire in the final three months of this year.”

Positive intentions across states and professions

• In Queensland, the picture is particularly promising, with the number of employers who are looking to boost headcount rising by 2.7pp to 27.8%. Demand for legal professionals continues to be strong while accounting and finance staff with blue-chip backgrounds are in short supply
• In Western Australia, the number of employers looking to increase headcount has surged by 7.6pp to 24.7%. This increase is also largely driven by intention to hire legal professionals,  increasing 35pp
• The percentage of employers in Victoria who are looking to hire has risen by 4.5pp to 25.3% with particularly strong demand for talented sales & marketing professionals
• While the number of employers in NSW looking to boost permanent headcount fell by 0.6pp to 21.9%, those looking to increase their office support teams jumped 13pp
• The ACT continues to lag the other states in positive hiring expectations, with one in five employers looking to reduce permanent headcount, a drop from one in three last quarter.

Across 10 skilled professions in the survey, the legal profession was a clear winner, with the number of employers looking to boost permanent headcount of legal professionals soaring over the last three months by 20.7pp to 44.8%.

“We are seeing a continued increase in the need for front-end transactional lawyers within private practice, especially those with 3-5 years experience. Firms are now playing catch-up after many years of downsizing,” said Davidson.

Hiring expectations for Sales, Marketing & Communication professionals is also strong. Boosting the digital bench-strength of marketing teams is a key focus for many employers over the coming months.

A war for talent

The latest Hudson Report also found that 60% of hiring managers believe there is a talent shortage, with nearly 90% saying that sourcing the right talent is the most challenging aspect of the recruitment process.

“During the slower growth of the past 18 months, organisations may have felt comfortable waiting to fill current – and potential – open positions. But the reality is that organisations are already struggling to identify the right talent and given positive hiring expectations for the fourth quarter this challenge is only going to increase over the coming months and into 2015,” said Davidson.

“Make no mistake, there is a war for talent, and a challenge in finding the right people for key positions. To stay ahead of the competition, organisations need to establish a clear understanding of the skills and other attributes needed for their important positions, continually manage a talent pipeline and ensure that they are delivering a compelling employee value proposition.”

Recognising the positive sentiment and opportunities this will present, Hudson itself has invested in its local talent, increasing its team in Australia by over 30% in 2014 to ensure that it can meet the needs of its partners.

“The latest Hudson report reflects the optimism we are seeing in the market, with the economic environment –record low interest rates, low inflation and no major economic shocks on the horizon – all conducive to business growth. In anticipation of this growth we’ve ramped up our team to help both employers and candidates alike win the war on talent,” concluded Davidson.

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