Australia’s ICT Recruitment Sector Employment Market Update

Q1, 2015Beacham Group Summary

• This presentation should be read in conjunction with the ITCRA ICT Employment Trends Report which forms the briefing and reference material.

• The purpose of the report is to provide an overview of the key movements and data that affects the ICT industry in terms of business conditions, human capital needs, recruitment activities, and expectations.

• This document provides general information only and specific advice should be sought before decisions are made.

BeachamGroup Notes

EconomicTrends

RecruitmentTrends

Employer Trends

RemunerationTrends

State Trends

Partners

Beacham Group Notes

Statistic RecentStatistics (Q1, 2015)

Previous Statistics (Q4, 2014)

Change

Population 23,773,311 23,694,714

Employed 11,679,400 11,679,400

Participation Rate 64.8 % 64.8%

Unemployed 764,500 759,200

Unemployment Rate 6.1 % 6.1%

Underutilisation Rate 14.9 % 15.0%

Skilled Vacancies Trend (annualized)

6.9 % 10.0%

ICT Professionals Vacancies Trend (annualized)

14.6% 8.7%

• The Australian labour market may be starting to settle after a period of volatility

• Some States or Territories are doing well while others are doing poorly

• IT vacancies appear to be doing well over the year but recently volatility suggests a shift in industry focus

CEO’sNotes

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Key National Statistics

CEO’sNotes

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Australia’s Top Roles by Placement Count

Popular Permanent Recruits

Business Analyst

Analyst Programmer

Service Desk

Project Manager

Helpdesk

Popular Contractor Recruits

Business Analyst

Project Manager

Analyst Programmer

Helpdesk / Desktop Support

Consultant

Permanent & Contracting Markets

13%

87%

Permanent

Contracting

Market Size by State

11%

41%

12%

5%

24%

7%

Australian CapitalTerritory

New South Wales

Queensland

South Australia

Victoria

Western Australia

CEO’sNotes

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ICT Recruitment Market: Australia

Average Days to Fill

48

30

61

40

DAYS TO FILL

Permanent Q4 2014 Contract Q4 2014

Permanent Q1 2015 Contract Q1 2015

• Contracting is the main way that ICT professionals work

• NSW is the main market, with ACT and Victoria and Queensland as major secondary markets

• Permanent ICT applicants command lower rates but take longer to secure

CEO’sNotes

EconomicTrends

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ICT Recruitment Market: Australia

Qualifications Sought

2.0

0%

9.3

0%

3.5

0%

79

.90

%

5.3

0%

1.3

0%

12

.20

%

5.2

0%

76

.50

%

4.8

0%

HIG

H S

CH

OO

L

CER

TIFI

CA

TES

(LEV

EL I-

IV)

DIP

LOM

A O

R A

SSO

CIA

TE

DEG

REE

SPEC

IALI

ST, B

AC

HEL

OR

S O

R

HO

NO

UR

S D

EGR

EE

PO

STG

RA

DU

ATE

DEG

REE

High School Q1 2015

Certificates (Level I-IV) Q12015

Diploma or AssociateDegree Q1 2015

Specialist, Bachelors orHonours Degree Q1 2015

Postgraduate Degree Q12015

High School Q4 2014

Certificates (Level I-IV) Q42014

Diploma or AssociateDegree Q4 2014

Experience Sought

46%

40%

14%

Experience

Up to 4 years

From 4 up to 7 years

More than 7 years

CEO’sNotes

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What ICT Employers are looking for

• Mobile Phone/Allowance

• Flexible Working Hours

• Telecommuting

• Car Park

• Company Paid Training

• Telecommuting

• Flexible Working Hours

• Overtime Payments

• Car Park

• Additional Superannuation

CEO’sNotes

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What ICT Talent is looking for

Popular Permanent Benefits Popular Contract Benefits

CEO’s NotesEconomic

TrendsRecruitment

TrendsEmployer

TrendsRemuneration

TrendsState Trends

Statistics Q1 2015 Statistics Q4 2014

Permanent Roles

% of roles are permanent

8% 16%

Average number ofdays to fill a role

86 45

Average rate per hour

$63.62 $67.85

Contract Roles

% of roles are contract

92% 84%

Average number of days to fill a contract

49 83

Average rate perhour

$99.71 $103.71

• Led by the Australian Government

• Popular market for ICT workers due to Government work

• Proportion of roles that are permanent have halved from 16% to 8% this quarter

• Average hourly rates have softened slightly this quarter

CEO’sNotes

EconomicTrends

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ICT Recruitment Market: Australian Capital Territory (ACT)

CEO’sNotes

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ICT Recruitment Market: New South WalesStatistics Q1 2015 Statistics Q4 2014

Permanent Roles

% of roles are permanent

7% 13%

Average number ofdays to fill a role

62 28

Average rate per hour

$62.31 $64.32

Contract Roles

% of roles are contract

93% 87%

Average number of days to fill a contract

45 39

Average rate perhour

$120.99 $124.15

• Largest market in Australia at 39% of all positions filled this quarter

• Permanent roles went from 13% to 7% of the total in this quarter making it the most contractor focused state

• Time to fill roles increased substantially this quarter

• Average hour rates softened slightly but not as much as elsewhere

CEO’sNotes

EconomicTrends

RecruitmentTrends

Employer Trends

RemunerationTrends

State Trends

Partners

ICT Recruitment Market: QueenslandStatistics Q1 2015 Statistics Q4 2014

Permanent Roles

% of roles are permanent

9% 6%

Average number ofdays to fill a role

50 25

Average rate per hour

$50.16 $57.17

Contract Roles

% of roles are contract

91% 94%

Average number of days to fill a contract

29 37

Average rate perhour

$89.00 $82.11

• Queensland Government has been hiring recently

• Permanent roles increased from 6% to 9% of the total

• Average days to fill contracted slightly

• Average hourly rates softened slightly

CEO’sNotes

EconomicTrends

RecruitmentTrends

Employer Trends

RemunerationTrends

State Trends

Partners

ICT Recruitment Market: South AustraliaStatistics Q1 2015 Statistics Q4 2014

Permanent Roles

% of roles are permanent

9% 15%

Average number ofdays to fill a role

82 20

Average rate per hour

$44.35 $51.58

Contract Roles

% of roles are contract

91% 85%

Average number of days to fill a contract

24 68

Average rate perhour

$53.86 $66.10

• Permanent roles went from 15% to 9% share in this quarter

• Average time to place increased for both permanent roles and contract roles

• Average hourly rates softened for both contract and permanent roles

CEO’sNotes

EconomicTrends

RecruitmentTrends

Employer Trends

RemunerationTrends

State Trends

Partners

ICT Recruitment Market: VictoriaStatistics Q1 2015 Statistics Q4 2014

Permanent Roles

% of roles are permanent

11% 17%

Average number ofdays to fill a role

59 33

Average rate per hour

$67.84 $73.29

Contract Roles

% of roles are contract

89% 83%

Average number of days to fill a contract

42 44

Average rate perhour

$112.10 $162.89

• Permanent roles went from 17% to 11% share in this quarter

• Average time to place increased for both permanent and contract roles

• Average hourly rates softened for permanent roles and considerably (30%) for contract roles

ICT Recruitment Market: Western Australia

CEO’sNotes

EconomicTrends

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Partners

Statistics Q1 2015 Statistics Q4 2014

Permanent Roles

% of roles are permanent

11% 5%

Average number ofdays to fill a role

64 20

Average rate per hour

$63.22 $64.95

Contract Roles

% of roles are contract

89% 95%

Average number of days to fill a contract

29 34

Average rate perhour

$78.50 $121.24

• The smallest market this quarter representing only 4% of all new ICT roles

• Average time to place increased by 30 days for permanent roles and 9 days for contract roles

• Average hourly rates softened marginally for permanent but by approximately 35% for contract roles

CEO’sNotes

EconomicTrends

RecruitmentTrends

Employer Trends

RemunerationTrends

State Trends

Partners

ITCRA is the professional body for the ICT contracting and recruitment sector in Australia and New Zealand. Beacham Group is an ITCRA member.ITCRA Members supply and/or manage white collar professionals on behalf of their clients for permanent and flexible roles, including contracting, across Australia and New Zealand as well as multiple international markets.

SkillsMatch is a monthly reporting program of data from ITCRA Members systems that includes: position title and requirements, available positions, salaries offered, placements made and time-to-fill for ICT contract and permanent roles. The data is released to ITCRA by participating Members on a set day each month so ongoing analysis of market trends is available. With more than ten years of information available, SkillsMatch is a unique, comprehensive dataset of ICT recruitment and employment trends.

Beacham Group is a boutique human resources and specialist recruitment consulting firm. Our team of highly trained and industry experienced consultants have a simple focus – to consistently recruit exceptional talent for growing businesses.

Burning Glass’ tools and data are playing a growing role in informing conversations on workforce and education.

LiveSalary leverages the collective power of employees online to produce a live, user generated and freely assessable online salary database

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