The AAGE Employer Survey 2009
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1 The AAGE Employer Survey 2009 Survey Report Produced by High Fliers Research
2 Survey produced for the AAGE by: High Fliers Research Ltd King s Gate, 1 Bravingtons Walk, London, N1 9AE, UK T: F: E: enquiries@highfliers.co.uk W: Australian Association of Graduate Employers Ltd. PO Box 1148, Mitcham North, Victoria, 3132, Australia T: F: E: info@aage.com.au W: Photographs by Rex Features, istockphoto, Ben Reeves. All information contained in this report is believed to be correct and unbiased, but the publisher does not accept responsibility for any loss arising from decisions made upon this information. High Fliers Research Limited and the Australian Association of Graduate Employers All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. 2
3 Contents Executive Summary 5 1. Introduction 7 Survey methodology Participating employers 2. Graduate Vacancies 11 Profiling graduate vacancies in 2009 Changes in graduate vacancies in 2009 Shortfalls in graduate recruitment and pre-graduate recruitment Vacancies by size of organisation and outlook for Graduate Starting Salaries 25 Profiling graduate salaries in 2009 Changes in graduate salaries in 2009 Bonuses and benefits Salaries by size of organisation and outlook for Graduate Recruitment Marketing 37 Targeting universities and faculties Careers fairs and on-campus activities Marketing spend on activities in Recruitment and Selection 47 Applications and assessment Spending on staff, selection and overheads Cost per joiner comparison 6. Graduate Programs and Retention 67 Graduate programs and retention rates Salary progression 7. Challenges and Opinions 81 Satisfaction levels with candidates abilities 8. Summary 87 Summary tables
4 About the AAGE The Australian Association of Graduate Employers (AAGE) is the peak industry body representing organisations that recruit and develop Australian graduates. Our current membership list comprises over 340 organisations, including a variety of large and small employers across a wide range of industries in both the private and public sectors. The AAGE is a not-for-profit body that has been in existence since Its activities are entirely supported by members, by way of subscriptions, events and services provided to the graduate recruitment industry. The Association is led by a dedicated committee of volunteers who donate their spare time to help manage and sustain our member offering. All our committee volunteers have day jobs as graduate recruitment leaders at one of the AAGE s member organisations. The AAGE is therefore the only representative body in the Australian graduate recruitment market that is run by employers for employers. We believe that this structure gives the AAGE a unique ability to provide our members with valuable and relevant services. The AAGE provides a range of benefits to its members: Relationship building The AAGE provides members with regular opportunities to meet with a range of people from the graduate recruitment industry, including employers, university careers advisers and service providers. Information The AAGE provides its members with both formal and informal opportunities to learn about the industry, share information and develop their skills. Advocacy and support As a representative body, the AAGE communicates the views of its members to other stakeholders in the graduate recruitment market. The AAGE also provides its members with support and advice on industry best practice.
5 Executive Summary About the Survey The AAGE Employer Survey 2009 is based on research conducted for the AAGE by High Fliers Research with 202 graduate employers during August and September The survey is produced to provide AAGE employers with the very latest information on: Vacancy levels for graduates commencing work in 2009 Salary levels for new graduates starting work in 2009 Application levels and selection processes used by recruiters in 2008 Marketing spend for events and activities in 2008 Graduate Vacancies The growth in graduate vacancies has slowed in the last year: Graduate vacancies increased by 2.1 per cent for 2009, compared to the number of vacancies on offer in Vacancy levels have increased in 12 out of 14 industry groups and in four of the nine geographical regions. Nearly half of organisations had not filled all their 2009 vacancies by the time the survey took place. Graduate Salaries The survey shows that starting salaries are increasing at healthy levels: Graduate starting salaries have increased by 3.5 per cent in 2009, when compared to the rates paid by employers in The median starting salary for 2009 is $51,750. The highest starting salaries in 2009 are for roles in investment banking, legal work and mechanical engineering. Over half of all survey participants plan to raise their 2010 starting salaries by a cost of living increase with 21 per cent planning a better than cost of living increase. Graduate Recruitment Marketing Employers spend on graduate marketing activities has been profiled for 2008: Employers spent a median of $6,400 on their own recruitment literature and a further $5,000 on their graduate website. Organisations spend a median of $4,300 on online promotions in Recruitment advertising in directories, newspaper and journals had a median spend of $11,500. The median spend on careers fairs was $9,200 with an extra $6,000 being spent by employers on their own campus events.
6 Recruitment and Selection Recruiters selection techniques were reviewed alongside budgets required for staffing, application processes and recruitment overheads: The median applications per vacancy for 2008 was 21. The median number of full-time equivalent staff working in graduate recruitment is 1.6. Behavioural based interviews are used by 93 per cent of survey participants. The median cost per joiner in 2008 was $6,300. Graduate Programs and Retention Graduate programs were examined, along with retention rates and salaries for recent hires: Nearly half of employers operate graduate programs that last either two or three years. Over half of survey participants only have one start date per year. Nearly a fifth of employers spend more than $10,000 on training each new joiner during the graduate program. Nearly a fifth of employers provide more than 25 days technical training in the first year. Two-fifths have retained more than 90 per cent of graduates who started in Challenges and Opinions The main challenges in graduate recruitment were recorded and the opinions of recruiters were solicited on the level of satisfaction with the quality of graduates leaving university: 89 per cent of employers said competition for graduates was one of the major challenges they are facing. Over four-fifths said oral communication, teamwork, and interpersonal skills were very important competencies in their selection process. 18 per cent of recruiters are not very satisfied with applicants emotional intelligence.
7 Chapter 1 Introduction Researching the graduate market Welcome to The AAGE Employer Survey 2009, the definitive study of graduate employers and their graduate recruitment activities. The The AAGE Employer Survey 2009 Survey Report survey is the leading source of information about graduate salaries and vacancy levels in Australia and New Zealand. It provides up-tothe-minute insights into the latest graduate market conditions, along with benchmarking of recruitment practices. Produced by High Fliers Research This report examines the vacancies and salaries on offer, as well as the selection and assessment processes used by recruiters. It also explores the number of graduates retained by employers, and the graduate recruitment marketing used by each organisation. The Survey is carried out on behalf of the AAGE by the specialist student and graduate research company, High Fliers Research. History of the survey In 2002, the AAGE s then Vice President Katrina Harrington (nee Moriarty) was conducting a research project for her Masters of Business, whilst working in a graduate recruitment role. Focusing her research on graduate recruitment and selection, Katrina conducted a survey of Australian graduate recruitment practice using the AAGE s member network. The results provided valuable information to survey participants about trends and perceptions in graduate recruitment and selection. Katrina subsequently became the AAGE President for 2003 and 2004 and the AAGE partnered with Talentzone (then Catch 22) to coordinate a broader survey based on Katrina s initial questionnaire. Will Spensley of Catch 22 was both delighted to be involved in the project and instrumental in bringing it to reality. The result was the inaugural AAGE Graduate Recruitment Survey The report proved to be so popular that the AAGE have continued to conduct an annual survey ever since, and for the past four years in partnership with High Fliers Research. Survey methodology Research for The AAGE Employer Survey 2009 took place in August and September 2008, using an online questionnaire accessed via the AAGE website. The questionnaire contained 44 questions about employers graduate recruitment activities during the 2008 season, focusing on vacancies, salaries, marketing, selection, graduate development and retention, and challenges in the marketplace. Questions were specifically designed so that results can be analysed by employers industries, location of vacancies and by business function into which their graduates are recruited.
8 Participating employers High Fliers Research contacted employers to participate in The AAGE Employer Survey The online questionnaire was live during August and September A total of 202 employers completed the questionnaire. Participating employers are listed in Table 1.1. Table 1.1 Participating employers ABB Australia Pty Ltd ABB Grain Ltd Accenture Australia Ltd ACT Public Service ActewAGL Airservices Australia Alcoa of Australia Limited Allens Arthur Robinson AMP Services Limited Anglo Coal Australia Pty Ltd ANZ Banking Group Ltd (Aust) Aristocrat Technologies Arup Pty Ltd Attorney-General s Department Auditor-General s Department - SA Ausenco Limited Australia Post Australian Bureau of Statistics Australian Customs Service Australian Fisheries Management Authority Australian Government Solicitor Australian Government Treasury Australian Institute of Health & Welfare Australian National Audit Office Australian Prudential Regulation Authority Australian Public Service (APS) Commission Australian Taxation Office Baker & McKenzie BDO Kendalls BHP Billiton Blake Dawson BlueScope Steel Limited Boral Limited BP Australia Brisbane City Council British American Tobacco Australia Ltd Carter Newell Centrelink Chevron Australia Pty Ltd Citect Pty Ltd City of Port Adelaide Enfield Clough Engineering Limited Comcare Commonwealth Bank of Australia ComSuper Connell Wagner Pty Ltd Crane Group Ltd Credit Suisse CSC Deacons Defence Materiel Organisation Defence Science & Technology Organisation Defence Signals Directorate Deloitte Department of Agriculture and Food WA Department of Agriculture, Fisheries and Forestry Dept. of Broadband, Communications and Digital Economy Department of Defence Dept. of Education, Employment and Workplace Relations Department of Environment, Water, Heritage and the Arts Dept. of Families, Housing, Community Services and Indigenous Affairs Department of Finance and Deregulation Department of Foreign Affairs & Trade Department of Health (SA) Department of Housing and Works Department of Immigration and Citizenship (DIAC) Department of Industry and Resources (WA) Department of Natural Resources and Water Department of Primary Industries Department of Resources, Energy and Tourism (RET) Department of State and Regional Development (NSW) Department of Sustainability and Environment (Vic) Department of the Attorney General (WA) Department of the Premier and Cabinet (WA) Department of The Prime Minister and Cabinet Department of Treasury and Finance (WA) Deutsche Bank Dialog Information Technology Dibbs Abbott Stillman Lawyers (Melbourne) Disability Services Commission (WA) ElectraNet Energex Environmental Protection Agency (Queensland) Ergon Energy Ernst & Young Services Pty Ltd Esso Australia Pty Ltd ETSA Utilities Fonterra Co-operative Group Limited Ford Motor Company of Australia Ltd Fordham Wealth Advisors Pty Ltd Fuji Xerox Australia GE George Weston Foods Geoscience Australia
9 Table 1.1 (continued) Participating employers GHD Pty Ltd GM Holden Ltd Goldman Sachs JBWere Google Hanson Hatch Associates Pty Ltd HBOS Australia Hewlett-Packard Honeywell Ltd IBM Iluka Resources IMC Pacific Integral Energy Jemena JPMorgan Kemp Strang KordaMentha Laing O Rourke LEK Consulting Pty Ltd Linfox Australia Pty Ltd Lion Breweries L Oréal Macquarie Group Services Australia Pty Ltd Main Roads Queensland Main Roads Western Australia Mallesons Stephen Jaques Manidis Roberts Margaret Franklin & Associates Mars Australia Maunsell Australia Pty Ltd McCain Foods (Aust) Pty Ltd McConnell Dowell Corporation Limited McCullough Robertson McGrathNicol Melbourne Water Mincom Ministry of Economic Development (NZ) Minter Ellison Monadelphous Engineering Associates Pty Ltd Moore Stephens Perth MPA Surveying National Australia Bank Ltd National Foods Newcrest Mining Limited Newmont Asia Pacific Nexia AlSR Nexia Court & Co Chartered Accountants O Connells OBM Pty Ltd OneSteel Orica Australia Ltd PaperlinX Limited Perks Pitcher Partners PricewaterhouseCoopers Services Pty Ltd Procter & Gamble Production Services Network Pty Ltd Protiviti Public Service Commissioner Qantas Airways Ltd QBE Management Services QIC Queensland Government Chief Information Office Queensland Government Chief Procurement Office Queensland Transport Queensland Treasury RAC WA - Royal Automobile Club WA RailCorp Reserve Bank of Australia Rio Tinto Limited Roads & Traffic Authority NSW RSL Care SA Water Corporation Salta Properties Santos Ltd Sensis Shell Company of Australia Ltd Sinclair Knight Merz Stanwell Corporation Limited State Services Authority State Street Bank & Trust Company Statistics New Zealand Suncorp Metway Ltd SunWater Sydney Water Technip Oceania Pty Ltd The Royal Bank of Scotland Thiess Tonkin Consulting Toyota Technical Center Transfield Services (Australia) Pty Ltd TransGrid Transport Infrastructure Development Corporation Unilever Australasia United Group Limited URS Australia Pty Ltd Vale VicRoads Victoria Legal Aid WalterTurnbull Water Corporation WestNet Infrastructure Group Westpac Banking Corporation WHK Horwath William Buck Woodside Energy Ltd WorkSafe Victoria WorleyParsons Xstrata PLC 9
High Fliers Research Limited and the Australian Association of Graduate Employers 2007.
Survey produced for the AAGE by: High Fliers Research Ltd King s Gate, 1 Bravingtons Walk, London, N1 9AE, UK T: +44 20 7428 9000 F: +44 20 7428 9111 E: enquiries@highfliers.co.uk Australian Association
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