1. RCSA Web Survey Round 26 – April 2008

2. Executive Summary Summary  Despite strong concerns about the state of the economy, business confidence has remained exactly the same as last two rounds at 70.5% while expected changes in volume of business have increased 0.7% to 6.0%  There have only been slight changes in the overall scores of labour market readiness and supply of applicants hence the labour market remains tight  Staff turnover has dropped 5% to 28% pa and staff growth has risen by 7.7% to 9.2% pa  There has been a substantial increase in permanent full-time placements, on-hire employment and contractor placements  The majority of placements are on-hire and the proportion of those placements as part of the total has fallen from 80% of all placements to 77% while permanent placements have enjoyed a 2% rise to 15%  The proportion of total revenue for all services has remained stable except that recruitment services has dropped 3% to 45% and on-hired employment had risen 5% to 41% of the total oSA get a larger proportion of revenue from on-hired employees while NSW and NZ get substantially less oSA gets a smaller proportion of from recruitment services Note: If locational differences are not mentioned, the differences are insufficient for comment

3. Executive Summary Summary – issues of most concern  While lack of suitable candidates remains the top concern and difficulty in finding suitable recruitment staff gets the same score it has been replaced second place by concerns about the state of the economy which has risen in concern to 71%, a jump of 13%. Concerns about the lack of hiring intentions of clients has jumped from 11 th place to 5 th oNSW is most concerned about finding suitable recruitment staff and less concerned about maintaining profitability and industrial relations oVIC is more worried about price undercutting, legal issues about on-hired staff, OH&S issues, unfair dismissal and casuals and workers compensation legislation oQLD is more concerned about lack of hiring intentions of clients, employment legislation, cost of advertising and industrial relations oSA is more worried about the state of the economy, price undercutting, retaining recruitment staff, OH&S issues and workers’ compensation legislation oWA is less concerned about most issues oNZ is less worried about most issues except they are more concerned about maintaining profitability Note: If locational differences are not mentioned, the differences are insufficient for comment

4. Executive Summary - Skills  In general, building skills have dropped in demand. The top 3 skills with the biggest shortages are non-building professional engineers, associates and technician and business professionals These are followed by building professionals and building associates. Other trades remain in short supply. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists  The top 12 skills shortages being: oNon-building professional engineers oBusiness professionals oNon-building engineering associates and technicians oBuilding professionals oBuilding associates and technicians oNon-building electrical/electronic trades oHealth professionals oElectrical trades (building) oReceptionists and telephonists oIT and telecommunications professionals oIT and telecommunications technicians oMetal trades

5. Excutive summary cont’d  Special section 1 – Impacts of changing conditions  Nearly a half believe 24 months parental leave will make them less likely to employ people who may have children while they are neutral about high paid employees being entitled to redundancy pay undecided about the ease of negotiating workplace agreements and slightly negative about the transition process to Fairness IR scheme oThe only significant difference is NZ is more likely to agree to redundancy payments for employees with salaries over $100,000 and oSA is less likely to agree that parental leave will affect whether they employ someone  95% of respondents believe employers have the right to amend award terms and conditions using an individual contract under the law provided employees agree and/or are not disadvantaged  Nearly three quarters have less than 5 awards (including NAPSAs) applied to their on-hired workforce in the last 2 years

6. Excutive summary cont’d  Special section 2 – Putting forward candidates with workers’ compensation claims  Half would put forward candidates with workers compensation claims if they had the necessary skills and competencies and they were both work ready with wage/insurance indemnity incentives were available at no cost oNZ is substantially more likely to agree with employing candidates if they have the necessary skills and competencies especially if they are vetted by the recruiter

7. Process  Web survey oE-mail business heads in both NZ and Australia oData collection began late March 2008 and completed 24 April 2008 oThe total annual revenue of respondent companies is $2.29 billion up from $1.87 billion last round. Despite being a smaller sample than last round the average size of company is larger) oThe proportion of $100m+ companies increased by 6 from last round to 10

8. Demographics of sample The number of sole traders in the sample has increased 2% to 12%

9. Demographics of sample The total annual revenue of respondent companies is $2.29 billion up from $1.87 billion last round. Despite being a smaller sample than last round (90 cf 126, the average size of company is larger) Total Annual revenue $m Total Australia=$2.01b Approx 88% of revenue

10. Demographics of sample The proportion of $100m+ companies increased by 6 from last round to 10.

11. RCSA members confidence about business improvements in the next three months has decreased slightly Differences None

12. Business confidence has remained exactly the same as last two rounds at 70.5% while expected changes in volume of business have increased 0.7% to 6.0%. Scale: 0=strongly disagree 50=neutral 100=strongly agree Differences None

13. Staff turnover has dropped 5% to 28% pa and staff growth has risen by 7.7% to 9.2% pa Differences There are no substantial locational differences

14. There have only been slight changes in the overall scores of labour market readiness and supply of applicants hence the labour market remains tight Scale: 0=strongly disagree 50=neutral 100=strongly agree Differences All locations are finding very similar labour market conditions

15. Labour market scores have only shifted slight thus the labour market but it remains tight -9% +8%

16. Staff placed and on-hired workers There has been a substantial increase in permanent full-time placements, on-hire employment and contractor placements. December 2007 April 2008 Note: variability may arise because of a few large numbers – this is a problem of small data sets

17. The majority of placements are on-hire and the proportion of those placements as part of the total has fallen from 80% of all placements to 77% while permanent placements have enjoyed a 2% rise to 15%

18. The proportion of total revenue for all services has remained stable except that recruitment services has dropped 3% to 45% and on-hired employment had risen 5% to 41% of the total Difference from average SA get a larger proportion of revenue from on-hired employees while NSW and NZ get substantially less SA gets a smaller proportion of from recruitment services

19. A substantial proportion of companies have neither contractors nor on-hire employees.

20. Concerns for the present and near future (all respondents) While lack of suitable candidates remains the top concern and difficulty in finding suitable recruitment staff gets the same score it has been replaced second place by concerns about the state of the economy which has risen in concern to 71%, a jump of 13%. Concerns about the lack of hiring intentions of clients has jumped from 11 th place to 5 th.

21. Concerns for the present and near future (National issues) In Australia concerns about legal issues (55%) and employment legislation (58%) remain the top issues while in NZ immigration issues have risen 3% and remains the top issue

22. Location differences Note: <50=less than neutral 50=neutral >50 = greater than neutral Compared to average NSW is most concerned about finding suitable recruitment staff and less concerned about maintaining profitability and industrial relations VIC is more worried about price undercutting, legal issues about on-hired staff, OH&S issues, unfair dismissal and casuals and workers compensation legislation QLD is more concerned about lack of hiring intentions of clients, employment legislation, cost of advertising and industrial relations SA is more worried about the state of the economy, price undercutting, retaining recruitment staff, OH&S issues and workers’ compensation legislation WA is less concerned about most issues NZ is less worried about most issues except they are more concerned about maintaining profitability

23. Skills issues

24. Skills shortages by occupation – top 20 In general, building skills have dropped in demand. The top 3 skills with the biggest shortages are non-building professional engineers, associates and technician and business professionals These are followed by building professionals and building associates. Other trades remain in short supply. The shortage of health professionals and nurses remains substantial as does the shortage of receptionists and telephonists Total shortage

25. Skills shortages by occupation – bottom 20 Total shortage

26. Top 10 skill shortages by location  NSW 1.Non-building professional engineers 2.Non-building engineering associates and technicians 3.Building associates and technicians 4.IT and telecommunications professionals 5.Business professionals 6.Building professionals 7.IT and telecommunications technicians 8.Health professionals 9.IT and telecommunications trades 10.Electrical trades (building)  VIC 1.Non-building professional engineers 2.Non-building engineering associates and technicians 3.Building associates and technicians 4.IT and telecommunications professionals 5.Health professionals 6.Business professionals 7.Electrical trades (building) 8.Non-building electrical/electronic trades 9.Building professionals 10.IT and telecommunications technicians

27. Top 10 skill shortages by location  Queensland 1.Non-building professional engineers 2.Business professionals 3.Non-building engineering associates and technicians 4.Building associates and technicians 5.Building professionals 6.IT and telecommunications professionals 7.Health professionals 8.Electrical trades (building) 9.Non-building electrical/electronic trades 10.Receptionists and telephonists  South Australia 1.Non-building professional engineers 2.Non-building engineering associates and technicians 3.IT and telecommunications professionals 4.Building professionals 5.Building associates and technicians 6.Electrical trades (building) 7.IT and telecommunications technicians 8.Health professionals 9.Non-building electrical/electronic trades 10.Metal trades

28. Top 10 skill shortages by location  Western Australia 1.Non-building professional engineers 2.Building associates and technicians 3.Non-building engineering associates and technicians 4.Health professionals 5.Business professionals 6.Building professionals 7.IT and telecommunications professionals 8.Electrical trades (building) 9.Non-building electrical/electronic trades 10.Mobile plant operators  New Zealand 1.Non-building professional engineers 2.Non-building engineering associates and technicians 3.IT and telecommunications professionals 4.Building professionals 5.Building associates and technicians 6.Business professionals 7.Electrical trades (building) 8.Non-building electrical/electronic trades 9.Metal trades 10.IT and telecommunications technicians

29. Special section

30. Nearly a half believe 24 months parental leave will make them less likely to employ people who may have children while they are neutral about high paid employees being entitled to redundancy pay undecided about the ease of negotiating workplace agreements and slightly negative about the transition process to Fairness IR scheme Difference from average The only significant difference is NZ is more likely to agree to redundancy payments for employees with salaries over $100,000 and SA is less likely to agree that parental leave will affect whether they employ someone

31. 95% of respondents believe employers have the right to amend award terms and conditions using an individual contract under the law provided employees agree and/or are not disadvantaged

32. Nearly three quarters have less than 5 awards (including NAPSAs) applied to their on-hired workforce in the last 2 years

33. Half would put forward candidates with workers compensation claims if they had the necessary skills and competencies and they were both work ready with wage/insurance indemnity incentives were available at no cost Difference from average NZ is substantially more likely to agree with employing candidates if they have the necessary skills and competencies especially if they are vetted by the recruiter