Fj australian - hr salary survey 2010-11

AUSTRALIAN HUMAN RESOURCESSALARY SURVEY

2010/2011

www.frazerjones.com.au

INTRODUCTION


Frazer Jones is a global, market leading

recruitment business working exclusively

within the Human Resources market.

Established as HR Matters in 1994 in

Australia, the business merged with UK

leader Frazer Jones in 2004 to become

the first truly global HR recruitment

specialist. We have over 40 consultants

with connections to great HR talent within

the Asia Pacific and EMEA regions through

offices in Australia, Hong Kong, Singapore,

Dubai and London. Our knowledge,

resources and access to the best

candidates are never limited by

geography. With this truly global reach,

we partner with our clients to improve the

talent management process and build

successful teams.

Our expert consultants have developed a

reputation for providing honest, insightful

advice as well as access to a unique and

diverse network of the world’s top HR

talent. Our relationships are based on

excellent service delivery and long term

success.

We supply HR talent to a complete

cross-section of clients, from the world’s

largest companies to small

owner-managed businesses. With

dedicated consultants specialising in

specific levels, from entry-level up to

Group Executive, our purpose is to identify

and assess outstanding HR professionals

and match them with key roles globally.

We are committed to the identification

and nurturing of great HR talent,

proactively connecting with them to

discuss their long-term aspirations,

understand what really motivates them

and facilitate career planning and

management. As the first established HR

recruitment firm in Australia, we have

built up a depth of knowledge about the

HR market that is second to none.

AUSTRALIAN HR SALARY SURVEY 2010/11

2

PERMANENT MARKET OVERVIEW/UPDATE


Over the past couple of years the severe

downturn in the global economy, and

subsequently all recruitment activity, has

been reported on and discussed at length.

The net result of the GFC in all major

financial centres across the world was

businesses stopped hiring and

redundancies becoming the norm.

Granted, Australia weathered the storm

far better than the United Kingdom and

the US (we of course never went in to

recession), but most companies took a

significant knock during the latter half of

2008 and throughout most of 2009.

Which is why the recovery through 2010

has been all the more remarkable. The

first signs of recovery in the form of

recruiting new talent happened as early as

August 2009, but not to the same extent

as it did at the start of 2010. Our 2009

HR Market Expectations Survey predicted

that hiring activity would not kick in until

the second half of 2010, but it genuinely

appears that many people significantly

underestimated the speed of the recovery

with job levels in HR recovering both

quickly and significantly at the start of the

year. Economic indicators all consistently

point to sustained recovery, with

Australia’s GDP figures remaining positive

and amongst the best in the developed

world.

The financial services sector was hit early

and hit hardest, but it has certainly

bounced back stronger and more quickly.

The resources, IT&T and energy sectors

have also continued to improve this year.

In the permanent area, we have seen a

marked improvement in the amount of

learning & development roles, as well as

recruitment and reward. It seems that the

acquisition, development and retention of

its talent is at the top of all company

objectives as business leaders strive to

retain their best people as we enter this

period of regrowth.

“Many people significantly underestimated the speed of the recovery.”

“We are already noticing some employers offering attractive increases to attain the best calibre candidates.”

With regards to salaries and bonuses,

unsurprisingly there was very little

movement for anyone in 2009, with

companies almost universally freezing all

increases. A huge proportion of candidates

starting their job search in 2010 have

been on the same salary package for up to

2 years, with no clear indication as to

when this might improve. Before the

downturn HR salaries in Australia,

particularly in Sydney, had reached levels

that were well above the global market

rate; the downturn did at least bring some

sensibility to pay grades. As the market

continues to improve employers will have

to ensure they look at incentivising their

staff correctly.

Whilst we are yet to return to the

extremes of 2006/2007 when candidates

were receiving multiple offers with vastly

inflated salaries, we are already noticing

some employers offering attractive

increases to attain the best calibre

candidates. This couples an increasing

number of candidates receiving more than

one offer.

The GFC has certainly left its mark,

reminding us that a buoyant market will

always be followed by a low. We have

witnessed the speed at which recruitment

can dry up, but also at how quickly things

can bounce back. Barring any exceptional

global economic shocks, we would expect

the market for HR professionals in

Australia to continue to improve over the

next two years.

3


INTERIM MARKET OVERVIEW


As Australia came out of the economic

downturn we started to see an immediate

need for short term contractors. With a

renewed focus on business sustainability,

talent had to be sourced at the speed in

which the market was recovering. Over

the course of 2010, this has led to an

increase in the volume of contract

positions in the market.

As expected when top performing

permanent candidates are not moving

roles, the amount of roles on a temporary

basis increases. The increase has mainly

been in the junior to mid level space ($20

to $35 per hour), with contracts generally

ranging from two - six months. In the first

part of 2010, most of these opportunities

were Recruitment Consultant / Officer and

HR Coordinator roles. This increase

resulted in an immediate need to bring

staff on board to assist with high

workloads, while companies assessed

how they were going to restructure their

teams and deal with these increased

volumes of work.

As a result of the market being reactive in

the first part of 2010, there was not a

huge demand for executive level interim

work. Companies requiring change

managers and organisational designers

were not initially prominent, but this has

steadily increased through the second half

of 2010.

There has also been a demand for

individuals with global and international

experience who can deliver results

quickly. We have certainly noticed an

increased appetite for overseas arrivals

with working holiday visas. A good

proportion of this pool of people have

stepped into roles quite quickly after

arriving in Australia.

The market sentiment in the early part of

2010 pointed to headcount and budget

restraints still being a factor, resulting in a

notable increase in the use of temporary

and interim staff. This presented good

opportunities for those candidates /

professionals looking to start an interim

career or continue as a professional

contractor.

Broadly speaking the outlook for the

Australian HR industry over the next

couple of years is positive and despite

wider (global) economic issues, we

believe it will be a good twelve months in

the interim market. We will continue to

support both our clients and candidates

and look forward to hearing from you if

you require advice on the current interim

market.

4


“The early part of 2010 pointed to a notable increase in the use of temporary and interim staff.”

GLOBAL MARKET


As Australian organisations emerged from

the global financial crisis many took a

more targeted approach to their

recruitment. With 2009 being a tough year

in recruitment globally, we have seen the

Australian HR community looking to the

broader market to find exceptional talent.

With international markets such as the UK

and US lagging in their rebuild phase,

Australian organisations have been far

more open to sponsorship in 2010.

The UK market has seen a healthy

increase in recruitment activity in 2010,

and they expect the net result to show a

continued upward swing in the number of

roles across the £30,000 to £70,000

salary range. However, the market for “top

talent” in this range will remain tight

which may lead to some salary inflation

for top quality candidates. The number of

senior HR jobs is also on the rise and

there remains a large supply of good

candidates. Organisations are seeing

strong shortlists for most roles and are

benefiting from this surplus. Conversely,

senior candidates may have found 2010

frustrating as those organisations remain

highly prescriptive about the skill sets and

backgrounds of the individuals they look

to take on. Candidates had to be very

flexible during 2009; many have been

happy to look at working and staying

away from home or even relocating to

secure the next role. We have seen this

trend continue to an extent, throughout

2010 as those living in certain parts of

the UK will have to look further afield for

the right role.

Historically, banking and financial

services, professional services and law

firms have been the main industries that

will look at sponsorship as a competitive

option, often due to the global nature of

their business. However, we have noticed

an increase in a range of large Australian

employers looking at hiring HR

professionals from off shore, at a variety

of levels. Reward organisational

development and recruitment

professionals have always been in

demand, however, more recently we have

also seen increased demand for

commercial HR business partners at the

more senior levels.

The Australian market is also seeing an

increase in the acceptance of expatriates

with Working Holiday Visas for short term

contracts. There are certainly increasing

opportunities of sponsorship for some

candidates once they have proved

themselves within a role on a temporary

basis. As you would expect, this is

predominantly happening in larger

organisations.

5


“We have noticed an increase in employers looking at hiring HR professionals from off shore, at a variety of levels”

THE 2010/11SALARY SURVEY


The data and commentary that follows

appear as a result of qualitative research

and input from HR professionals, as well

as information taken from interviews and

recruitment assignments handled by our

Consultants over the past eighteen

months.

We have broken down the survey into six

‘grades’, with bespoke data for the varied

areas of HR. The terminology we have

used for job titles in this document is

purely representative of what we have

come across regularly in the market. It is

not indicative of a role’s seniority as the

variance in usage by organisations and

across different industry sectors is

significant. For the purposes of this survey

we have divided each ‘grade’ into two

sections: one to represent small to

medium-sized organisations typically up

to around 4,000 staff. The second

represents larger businesses, usually over

4,000 staff. Also included in the larger

business section would be those global

businesses with a smaller population in

Australia (often investment banks and

professional services firms).

This year, rather than give different

bandings for different sectors, we have

produced the data for the different types

of role found in HR. As the salary bandings

are already relatively broad, the various

sector nuances are better articulated by

our Consultants who know their specific

market inside-out. Relevant information

on industry trends can be found in the

summaries on each page, as can a list of

general responsibilities attached to these

types of job.

The salary ranges shown are a direct

representation of the data collected during

the survey. As such, there are significant

variances in the minimum and maximum

figures. As always, please contact one of

our consultants to discuss salary ranges in

more detail.

6


ADMINISTRATOR/ CO-ORDINATOR/ ANALYST


These positions broadly focus on support

to HR teams and the basic administrative

duties of the HR function. The HR

Administrator or HR Coordinator will often

be the first point of contact for all HR

queries and will be responsible for a

variety of tasks ranging from basic

administrative support, HR database entry

and maintenance, document preparation,

recruitment coordination, training

coordination and reporting. They will also

be actively involved in the coordination of

annual people processes and ad hoc

projects. The HR Coordinator title can be

used for employees with up to three years

of experience.

HR Analysts are most commonly

specialists with one or two years of

experience in their area of expertise.

These positions tend to exist most

commonly within the area of reward or

HR information systems. The Reward

Analyst was in particular shortage during

the GFC due to the obvious scrutiny on

salaries. Equally affected was the junior

L&D market, which took quite a hit in

terms of hiring activity. With the return of

‘nice to have’ development programmes,

the need for coordinators to support the

L&D consultants was all but gone. This is

one area that has not seen a great

increase in the marketplace as yet, despite

increased activity for more mid-senior

level L&D roles.

The downturn in the market saw a need

for many HR Administrators and

Coordinators to increase their work loads

as well as their skill sets due to the cut

backs of more senior positions within HR

teams. For these employees, a move to a

new organisation into an HR Advisor or HR

Officer role should see a reasonable

increase in salary, keeping in mind a high

level of competition will exist for these

roles.

On the other hand, in many organisations

administrative functions were scaled back,

carving out more administrative work for

HR Managers and the like. Due to the

rapid rebuilding of HR teams that we have

been experiencing, this junior end of the

HR market should see the creation of

more jobs for entry level and junior HR

professionals over the next six-twelve

months.

7

Small to medium sized businesses Larger organisations Base salary Bonus Base salary Bonus

Generalist $45,000 - $60,000 NA $50,000 - $70,000 NA

Reward $50,000 - $65,000 NA $50,000 - $75,000 NA

L&D $45,000 - $60,000 NA $50,000 - $65,000 NA

Recruitment / Grad Rec $45,000- $60,000 NA $50,000 - $65,000 NA

OD / Talent / Change NA NA $50,000 - $65,000 NA


OFFICER / ADVISOR


The HR Officer/Advisor group have

responsibility as the HR contact for a

defined client group within an

organisation. Typically, employees at this

level will have up to five years’

experience.

HR Generalists at this level tend to have

broad ranging responsibilities, such as

providing operational HR support and

advice to employees and line managers

around employee issues such as

performance management, disciplinary

and grievance issues. Requiring strong

knowledge of HR policies and procedures

across the business is of vast importance.

Responsibility for annual processes and

providing guidance and advice across

reward, recruitment & learning and

development will often fall under this level

of role, particularly if the organisation

does not have a centralised specialist

function. However if an organisation does

have a centre of expertise for these areas,

there will often be specialist advisors at

this level in the group. The specialist roles

most affected by the market downturn

were the learning and recruitment

positions. These areas have been getting

increasingly busy throughout 2010, in line

with the economic recovery.

Interestingly, we have noticed that junior

HR professionals are generally

remunerated well, particularly in larger

businesses. Salaries have remained at a

premium in this space for the last two

years, more so than at other levels in HR.

8


Generalist $65,000 - $85,000 NA $65,000 - $95,000 5%-10%

Reward $70,000 - $85,000 NA $70,000 - $90,000 5%-10%

L&D $60,000 - $75,000 NA $60,000 - $85,000 5%-10%

Recruitment / Grad Rec $65,000 - $75,000 NA $65,000 - $80,000 5%-10%

OD / Talent / Change $70,000 - $85,000 NA $70,000 - $90,000 5%-10%

ER / IR $60,000 - $80,000 NA $65,000 - $90,000 5%-10%


CONSULTANT / SENIOR ADVISOR


The role of the HR Business Partner / HR

Consultant is to work closely with each

part of the organisation to achieve their

business goals. They provide strategic HR

planning, analysis and execution support

to enhance business performance through

people strategies. They would be

responsible for day to day management of

HR queries normally reporting to a more

senior HR Manager.

The role of the HR Consultant can vary

depending on industry and size of teams.

This job group includes all HR Generalist

roles where there is a defined

responsibility for advising client groups

within the business. The professionals at

this level usually have between four and

seven years’ HR experience and do not

ordinarily have direct staff management

duties.

Typical responsibilities would include

providing advice to line managers on all

HR policy and procedural queries and

providing operational support on employee

relations’ issues such as performance

management, disciplinary, grievance and

redundancy processes. In addition they

would be running the implementation of

all HR processes for client groups, ie

succession planning and salary review

processes. In certain roles they will also

be responsible for advice and guidance on

recruitment and where there is no

centralised recruitment function, providing

operational recruitment support.

In specialist areas of HR such as learning

and developement, OD, reward and

recruitment, we have noticed candidates

being paid at a premium (regularly above

their generalist counterparts). Often this

can be due to the shortage of quality

specialists, given many new-to-HR

professionals will not specialise in HR until

this point in their careers.

As with most roles, the industry that the

HR Consultant works in will influence how

well paid they are. Often the financial

services industry tends to pay more with

the incentive of a more attractive bonus

scheme. In the first half of 2010 there

was a demand for consultants at the

four-six year band, with good talent at

this level harder to find. Conversely, HR

Consultants at the more senior level have

been in greater supply in the market due

to less senior Business Partner roles.

9


Generalist $75,000 - $100,000 5%-15% $80,000 - $120,000 5%-20%

Reward $75,000 - $100,000 5%-15% $80,000 - $120,000 5%-20%

L&D $75,000 - $100,000 5%-15% $80,000 - $120,000 5%-20%

Recruitment / Grad Rec $70,000 - $100,000 5%-15% $75,000 - $120,000 5%-20%

OD / Talent / Change $80,000 - $110,000 5%-15% $80,000 - $130,000 5%-20%

ER / IR $70,000 - $100,000 5%-15% $75,000 - $110,000 5%-20%



Generalist $120,000 - $150,000 10%-20% $140,000 - $200,000 10%-30%

Reward $120,000 - $160,000 10%-20% $130,000 - $200,000 10%-30%

L&D $120,000 - $160,000 10%-20% $130,000 - $170,000 10%-30%


OD / Talent / Change $120,000 - $160,000 10%-20% $130,000 - $180,000 10%-30%

ER / IR $120,000 - $150,000 10%-20% $130,000 - $170,000 10%-30%

MANAGER / BUSINESS PARTNER


The Manager level practitioner in most

entities is responsible for the human

resources function for a medium to

large-sized division and in the case of

small-to-medium-sized entities, for the

entire organisation. Managers will

typically have responsibility for a small

team of practitioners and depending on

the size and sophistication of the

business, those team members may be

generalists or responsible for one or more

specialism (eg recruitment and learning

and development). In larger employers,

the HR Manager may be supported by a

centre of excellence for some or all of the

specialist streams. Indeed, some larger

organisations with a particularly

sophisticated HR function, will support a

structure where the business partner has

no direct reports, or at most only one or

two.

A stand-alone HR Manager may report

directly to the CEO or Managing Director

of a small-to-medium-sized business,

whilst in larger companies the role would

report to a GM of HR or HR Director.

The market for HR Managers was fairly

static through 2009 but has been gaining

momentum throughout 2010. Those HR

Managers who maintained their positions

during the downturn often did so with

smaller teams and tightened budgets.

There is now movement in most sectors

although the manufacturing industry is

somewhat lagging. From a remuneration

perspective, and following pay freezes at

many employers, there has been

movement across the band for HR

Managers this year, if modest. Pay in the

OD, talent and change areas, as well as

reward, will continue to attract a premium

at the top of the banding.

10


SENIOR MANAGER / SENIOR BUSINESS PARTNER

DIRECTOR / GM


The Senior Manager role is ascribed to

individuals who are managing a larger

team, usually a minimum of five. Typically

these individuals will be overseeing a

sizeable generalist HR function for a

business division, or a specialist HR

function such as learning and

development, resourcing or reward, in a

larger organisation. If in a generalist role

then typically client groups would be a

minimum of 500-1,000 staff, but in larger

organisations this may increase to c.2,000

staff. From a generalist perspective, the

responsibilities for professionals at this

level can often act as quasi-HR Directors

for their specific business unit (BU) client

groups. Invariably they will be part of a

BU senior management or leadership team

with at least a dotted line report into the

business leader of that area.

At the executive end of the HR market

salary packages vary more substantially

based on size of company, ownership

(public or private), industry sector,

location and regional complexity. As a

consequence, we are in the process of

developing a specific remuneration survey

for HR Directors and will be publishing this

in early 2011. This will cover generalist

and specialist HR roles and will specify

fixed and variable pay components in

detail. If you require information on this in

the meantime, please contact Paul Breslin.

E. [email protected]

With regards to the specialist roles of HR,

these will typically sit centrally, driving

strategy in their specialist area from a

group-wide perspective. The reporting

line is usually into the overall HR Director,

but can also be a level down in the largest

organisations. Salaries for the ‘Specialist

Heads’ are certainly at a premium at the

moment, mirroring the market trends we

mentioned initially of businesses investing

more heavily in reward, L&D and OD

type-roles, with senior level reward

professionals often leading the pack.

Frazer Jones has undertaken a number of

‘Head of Reward’ roles in the past

eighteen months, particularly within the

services’ industries.

Naturally roles at this level are at the

pointy end of any HR structure in terms of

seniority. However, whilst there will never

be the same volume as at more junior

levels, we would expect this portion of

the market to remain busy for some time,

particularly as Senior Leaders are

increasingly looking to surround

themselves with high calibre experts.

We find that pay ranges vary substantially

towards the senior end, so there are

exceptions to these bandings, and the

largest employers in Australia will often

pay substantially more for the divisional /

BU “head of” roles. Frazer Jones will

include this data in the Executive HR

Director Salary Survey to be released in

early 2011 (see below for more

information on this).

11


Generalist $150,000 - $200,000 20%-40% $170,000 - $250,000 30%-50%

Reward $140,000 - $200,000 20%-40% $170,000 - $270,000 30%-50%

L&D $150,000 - $180,000 20%-30% $170,000 - $250,000 30%-50%


OD / Talent / Change $160,000 - $200,000 20%-30% $170,000 - $250,000 30%-50%

ER / IR $140,000 - $180,000 20%-30% $160,000 - $230,000 30%-50%


CONTACT DETAILS


Sydney

Level 12, 25 Bligh Street,

Sydney, NSW 2000

T: +61 (0)2 9236 9090

Melbourne

Level 2, Rialto North Tower, 525 Collins Street,

Melbourne, Victoria 3000

T: +61 (0)3 8610 8450

London

95 Queen Victoria Street,

London, EC4V 4HN

T: +44 (0)20 7415 2815

Dubai

Suite 614, Liberty House, DIFC,

PO BOX 506739, Dubai, UAE

T: +9714 448 7775

Hong Kong

1918 Hutchison House,

10 Harcourt Road, Central, Hong Kong

T: +852 2973 6333

Singapore

Level 15, Prudential Tower,

30 Cecil Street, Singapore 049712

T: +65 6236 2932

FRAZER JONES IS A MEMBER OF THE SR GROUP.

Paul Breslin

[email protected]

T. +61 (02) 9236 9090

For Executive HR Recruitment, please contact:

Julie Spears

[email protected]

T. +61 (02) 9236 9090

Peter Barber

[email protected]

T. +61 (03) 8610 8450

For Permanent HR Recruitment, please contact:

Renee Clarke

[email protected]

T. +61 (02) 9236 9090

For Interim HR Recruitment, please contact: For all Melbourne HR Recruitment, please contact:


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Fj australian - hr salary survey 2010-11