2015/16 AUSTRALIAN SALARY & EMPLOYMENT OUTLOOK ENGINEERING. Engineering /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

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1 2015/16 AUSTRALIAN SALARY & EMPLOYMENT OUTLOOK Engineering /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

2 OVERVIEW WE EXPECT KEY RETENTION STRATEGIES TO FOCUS AROUND DIVERSITY OF EXPERIENCE AND CAREER PROGRESSION. Over the last five years the demand for engineers has been volatile, as domestic supply has increased and there have been reduced levels of spending in infrastructure. Demand has further been impacted by the movement of the mining and resources boom from project delivery to operation. This has resulted in significant variation of hiring sentiment by industry, state and discipline. This year hiring levels within the engineering sector have remained consistent in manufacturing, specifically in consumer goods and dairy, with capital investment remaining steady. Hiring in civil and infrastructure is experiencing geographical variations, with activity being strongest in New South Wales. Professionals with project management experience are in highest demand as some industries experience increased capital expenditure, particularly in the consumer goods, FMCG and dairy sectors. On the whole there remains volatility in demand for engineers on a regional basis. While salaries have generally remained stable, some states are experiencing marked reductions in remuneration, specifically in relation to demand. An example of this is the reduction in demand for engineers in Queensland and Western Australia, causing a material impact on remuneration. Meanwhile, demand has remained consistent in New South Wales and Victoria. Candidates are now moving for increases in salary and are attracted to businesses which are focusing on innovation and growth. In the next 12 months we expect key retention strategies to focus around diversity of experience and career progression; employers with the ability to provide a strong pipeline of diverse project work will be best placed to retain employees in /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

3 KEY INSIGHTS The level of experience in highest demand for most businesses is mid-level to management. Project management roles are currently the most in demand, however there remains both sector and geographical volatility. Do survey respondents expect to grow their teams this year? Current national economy rating 12 % Good Very good 2 % 8 % 1 % No opinion Very poor 33 % YES 57 % NO 10 % UNSURE 48 % Fair 29 % Poor Overall confidence in engineering Levels of experience in highest demand 10 % Good 7 % Very good 10 % Very poor 41 % 1 % 23 % 6 % 56 % Poor Senior Specialists Entry level Mid level management 32 % Fair 14 % Management /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

4 KEY INSIGHTS Salaries have generally remained consistent year-on-year, with the exception of engineers with niche experience. Some industries are experiencing uplifts in salary and rewards year-on-year. Do survey respondents expect their direct employees to receive a salary increase? Average salary increase percentage 57 % YES 43 % NO 1% - 2% 3% - 5% 6% - 9% 1-15% 16% % - 3 More than 3 34% 62% 2% 2% Average bonus percentage Do survey respondents expect their direct employees to receive a bonus? 1% - 2% 3% - 5% 6% - 9% 1-15% 16% % - 3 More than 3 24% 37% 34% 5% 45 % YES 55 % NO /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

5 EQUIPMENT State NSW VIC QLD Company size Sml/Med Large Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Graduate Engineer Quality Engineer Design Engineer Shift Supervisor Structural Engineer Project Engineer Health and Safety Manager Electrical Engineer Process Improvement Quality Manager Reliability Engineer Maintenance Manager Plant Manager Reliability Manager Operations Manager Senior Design Engineer Lead/Principal Engineer Chief Engineer Engineering Manager Operations Director /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

6 EQUIPMENT State WA SA Company size Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 Graduate Engineer Quality Engineer Design Engineer Shift Supervisor Structural Engineer Project Engineer Health and Safety Manager Electrical Engineer Process Improvement Quality Manager Reliability Engineer Maintenance Manager Plant Manager Reliability Manager Operations Manager Senior Design Engineer Lead/Principal Engineer Chief Engineer Engineering Manager Operations Director /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

7 PACKAGING State NSW VIC QLD Company size Sml/Med Large Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Graduate Engineer Design Engineer Risk Engineer Process Improvement Risk Manager Senior Design Engineer Lead/Principal Engineer Chief Engineer Engineering Manager State WA SA Company size Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 Graduate Engineer Design Engineer Risk Engineer Process Improvement Risk Manager Senior Design Engineer Lead/Principal Engineer Chief Engineer Engineering Manager /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

8 UTILITIES State NSW VIC QLD Company size Sml/Med Large Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Graduate Engineer Quality Engineer Structural Engineer Quality Manager Health and Safety Manager Reliability Engineer Maintenance Manager Engineering Manager Operations Manager Operations Director State WA SA Company size Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 Graduate Engineer Quality Engineer Structural Engineer Quality Manager Health and Safety Manager Reliability Engineer Maintenance Manager Engineering Manager Operations Manager Operations Director /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

9 OIL & GAS State NSW VIC QLD Company size Sml/Med Large Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Graduate Engineer Quality Engineer Quality Manager Structural Engineer Electrical Engineer Health and Safety Manager Reliability Engineer Maintenance Manager Engineering Manager Operations Manager Operations Director State WA SA Company size Sml/Med Large Sml/Med Large Salary $ 000 $ 000 $ 000 $ 000 Graduate Engineer Quality Engineer Quality Manager Structural Engineer Electrical Engineer Health and Safety Manager Reliability Engineer Maintenance Manager Engineering Manager Operations Manager Operations Director /16 AUSTRALIA SALARY & EMPLOYMENT OUTLOOK

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