Mid-Senior Level Market Update 2023

Do you envisage the market picking up before Christmas and if so which areas/level?

• Yes, we do, as organisations look to hire HR talent for a January start, searches would need to start from now.
• We tend to see Clients try to hire too late in the year, but most candidates have switched their search off by early December.
• My advice to clients is to start hiring as early as possible, and for candidates, this time of year can be great to get ahead of the competition before everybody comes out of the gate in January!
• I envisage more demand for ER, Reward and HR operations roles. The demand for HR generalists has been stable as always.

Who are the hardest-to-find candidates, in terms of niche skills?

• Mostly HR specialist roles, in order of demand: ER/IR, Reward, HR operations, Shared services, HRIS candidates.
• ER specialists are very busy due to legislation changes and keeping up with ER issues on the back of COVID-19.  This usually means they do not have much time to dedicate to their job search.
• Most candidates at the mid-level tend to stay broad and remain as generalists. We have seen less and less talent wanting to specialise in ER given the pressures that come with the role.
• Similarly, Reward and HR Operations candidates tend to work on projects so they have less time to dedicate to job searches which is where an HR recruiter can come in handy.
• Some roles in ‘hard to access’ locations or roles with no flexibility or hybrid working are tricky to hire for.
• Additionally, roles that are paying under the market in terms of salary are always hard to hire for.

Have salaries been increasing or have they started to level in comparison to last year?

• It has definitely started to level out; some of the salaries candidates were being offered went crazy for the last two years mostly due to the talent shortage.
• We have noticed a huge increase in Senior HR talent taking significant decreases in salary to get back into the market.
• Remuneration expectations have been challenging given the cost of living increasing and interest rates rising. For candidates to move roles, there needs to be a great incentive to minimise the risk of leaving a stable role.
• However, we have noticed that salary is not always the number one priority. Candidates are looking for true flexibility, an inspirational manager and career development as the main motivators at the mid-senior level.

With WHV (working holiday visa) candidates increasing, what can they do to find work?

• We have seen an influx in Working holiday Visa talent, the highest since the pandemic. However, some struggle to get into the market with limited or no AU experience on their resume.
• This is where you should connect with a specialist HR recruiter to vouch for your experience and how that will translate into certain businesses here on the ground.
• Candidates should make contact a few months before arriving in Australia so interviews can be lined up for when you land.
• Benefits of hiring these candidates include flexible hiring diversity of thought, HR project work, they can cover maternity leave contracts, and can work on new HR Tech implementations.
• For more information in this space please reach out to Rian and review her WHV article here https://www.peoplecorp.com.au/thinking-of-moving-to-australia-on-a-working-holiday-visa/

Some people are really productive working from home, some are not as productive – how do you manage that without removing the new expected flexibility and what are other organisations doing to attract employees back to the office?

• Many organisations are being more intentional about the time employees spend in the office. Rather than treating it as just another workspace, they’re using the time together to create opportunities for face-to-face collaboration, connection, shared learning and the celebration of accomplishments that may not be visible to others.
• Be clear with candidates what flexibility they will (or will not) have in their roles and the aspects of their job or schedule that they will have control over. Provide real examples of how your teams create connections while together and how people across your organisation achieve work-life integration, regardless of their seniority or location.
• I would say 80% of our clients are working at least 2-3 days in the office and the rest from home.

What are we seeing in the market at the moment i.e. amount of roles, levels, types of roles OR what are we seeing from a Rem perspective – have salary packages dropped off a bit as there is more competition?

• There is no doubt that the HR market is not as busy right now as it has been, but bear in mind the number of roles recruited in 2021 and 2022 was unprecedented.
• It is only right that the market takes a ‘huge adjustment’ and recalibrates, we are seeing job vacancy numbers similar to 2019.
• HR contracting has been busy given the shape of the economy and motivations for a flexible workforce.
• In the last six months, the top four roles in demand have been ER/IR, Reward, HR operations/shared services and L&OD.
• The least in demand have been Talent acquisition, People experience, Change management and D&I.
• Salaries on average have increased at a minimum of 10% from 2019. However, they have come down slightly this year from 2021/2022 when we saw ‘the great reshuffle’ when 1 in 5 Australians quit their job. The market has simply started to normalise.
• For more specific information on salary levels please reach out to me directly.

Are companies more likely to recruit contractors in the current market than adding a permanent head count?

• Yes and No. It really depends on the business needs. If they need a more flexible workforce then yes. If there is a constant on-going demand for that HR talent then no, a client would hire on a permanent basis.
• Most clients understand it is sometimes harder to find HR talent for contracts than permanent employees.
• As there have been many redundancies, contracting is an excellent way for candidates to stay relevant in the market whilst the market recalibrates.
• For more information on the benefits of hiring a contractor, please see below: https://www.peoplecorp.com.au/contracting/fixed-term-contract-vs-temp/

How much are companies investing in AI to support HR?

• The demand for HR Operations has indeed increased in recent years, driven by various factors, including the integration of AI and technology into HR processes. AI and automation can significantly enhance HR Operations by streamlining tasks, improving data analysis, and providing better employee experiences.
• AI can analyse large volumes of HR data to identify trends, patterns and insights to help HR to make HR data-driven decisions.
• It can also assist in resume screening and can monitor employee engagement by analysing sentiment data from surveys. AI can recommend learning programs tailored to employees and can predict future trends such as turnover risk and skill gaps.
• There has not been a huge amount of conversation around AI within HR teams with our clients here in Australia as of yet.

When will demand for Talent Acquisition start again?

• We anticipate in early 2024 when some organisations start their new budgets.
• The TA market has been somewhat of a ‘YoYo’ market with boom and bust periods.
• For example 2020 was very quiet for TA, with 2021 & 2022 being very busy and 2023 being more stable.
• Organisations should utilise top TA talent in other areas of the business. For example working on EVP, talent pooling, Talent branding, talent meet-ups and networking for the business for when the market comes back strong.
• There have been considerable redundancies in this space and there are simply too many candidates and not enough roles.
• Salaries for TA specialists in 2021 and 2022 increased significantly, arguably to unsustainable levels, as there was a short supply of talent to meet the increase in demand. As the market has now stabilised and the volume of vacancies have lessened, organisations are looking to cut back on that cost and rehire at lower salary levels.
• I encourage TA talent to consider maybe your options of moving into other avenues of HR whether it be generalist, talent or L&D. This may involve more qualifications for certain candidates.

How much are HRBP’s paid?

• I see 3 tiers to the HRBP role: the junior HRBP – $110K – $140K , the mid-level HRBP $140K – $170K and the senior HRBP $170K – $220K including super.
• There is a big difference between years of experience and calibre of candidates between the mid-level to senior HRBP candidates.
• What makes HRBPs stand out is the project work they have worked on, along with their generalist duties specialising in other areas such as D&I, talent and OD for example.

How do I stand out as a HRBP in the market?

• Try to utilise HR data and metrics where relevant in your generalist roles.
• If you can move industries and show that you have a diverse skillset, this is highly admirable from clients looking to hire HRBP’s.
• Additionally, if you can gain leadership experience as a HRBP this is great to set you up for your future role of leading a function.

General Tips

Candidates

• Leverage your networks to assist with your job search! Attend those networking events you always put off.
• Have your resume reviewed. I believe The 1-page resume is not sufficient to highlight all experience gained at the mid-senior level.
• Elevate your brand on LinkedIn and engage with organisations and people who can help with your job search.
• Have a ‘job search’ spreadsheet, follow up with the hiring manager/recruiters and ensure to check job boards every day.
• If you can attend interviews in person, this benefits both you and the client to see if the role is a genuine fit.

Clients

• Ensure you sell the opportunity in the interview stage and have a clear EVP along with the benefits provided in the role.
• Design an interview process that fosters a great candidate experience and that is not too lengthy.
• The JD is an important document for potential candidates reviewing your role. Make sure it is engaging, highlights key projects and what makes your role different.  Candidates also like to see an organisation promoting a culture of well-being.
• Salary is still important so seek advice first before going to market to ensure you are pitching the role at the right level.
• Flexibility is still a top priority for candidates. If you do not offer this, you will simply miss out on top talent.