employment market survey report 2010-2011

SYDNEY MELBOURNE SINGAPORE HONG KONG SHANGHAI MUMBAI DUBAI

Logistics & Supply Chain Recruitment

supply chain & logistics

2010/2011 employment market survey report

Welcome to the 2010/11 Supply Chain and Logistics Employment Market Survey Report, produced from research undertaken in late 2010. This is our fourth consecutive annual report developed for the international industry we serve. Respondents represent a broader geographical sample than in 2009 with 30.75% of the total respondents employed in Australasia, 19.86% in South East Asia, 14.95% in the Middle East, 9.22% in the Indian Subcontinent and 5.76% in North East Asia and China. In the previous survey 55% of respondents predicted 2010 would bring an increase in growth and activity. This year’s results show that 67% thought there had been growth in 2010. 80% predict growth for next year – this mirrors the level of optimism shown by respondents of the 2008 survey. Although the respondents in all regions surveyed expect growth, expectations are the highest in China at 86%. The lowest levels of optimism of all regions surveyed came from Australia at 77%. ASIAN ECONOMIC GROWTH DRIVES APAC REGIONAL WAGE AND SALARY AND STAFF LEVEL EXPECTATIONSOverall, 88% of those surveyed say they expect staff numbers to increase or at least remain the same throughout 2011. Wages and salaries are predicted to increase in line with the demand for staff and growth predictions, reinforced by other recent surveys across the APAC region, in particular identifying wage and salary increases as the main concern for employers. South East Asian executives predict wage and salary increases between 3-8% during 2011, Middle East was 6-10% with North East Asia and China executives predicting increases up to 16%.

Australian’s surveyed predict increases of between 3-5% however, Australia is currently experiencing a dual/‘two speed’ economy whereby the resources boom is propelling North Queensland and Western Australia economic activity to a level whereby the demand for resources (coupled with a significant shortage of skilled labour) is driving wage and salary increase expectations from 10-15% across the mining, oil and gas sectors. Only 8% of those surveyed believe staff levels in 2011 will decrease, while 60% predict they will increase: the balance, believe levels will remain the same. This is more positive compared to the last survey; where 25% of respondents indicated staffing levels decreased, while 43% indicated an overall increase in staff numbers. The 2010/2011 results were in-line with predictions made in the 2009 survey for 2010.

TALENT MOBILITY TREND CONTINUESThe majority of those surveyed identified career development as a higher driver of employment choice than remuneration. This trend has remained at similar levels since our initial survey in 2007 although as in 2009, remuneration was a close second in this latest survey.

In this survey we added two extra possible responses: Job Security and Employer Values. It is of interest that these new options were ranked as close third and fourth influencing factors to why people join organisations, far outranking the remaining seven questionnaire options. The prospect of relocating to take advantage of new employment opportunities proves undaunting for the majority of respondents in the current market conditions. Amongst those surveyed mobility showed a slight increase compared to 2009, with 47% of respondents indicating they had relocated in the previous three years, and a staggering 95% indicating they would do so, if the opportunity was right.

This is a substantial increase in the mobility shown by those surveyed in previous years, highlighting not only the flexibility of those seeking enhanced career opportunity but possibly also reflecting the incentives being offered by many employers to attract premium executive talent to areas experiencing severe skill shortages. TERTIARY EDUCATION LEVELS INCREASE ACROSS INDUSTRY39% o f responden ts i nd i ca ted they possessed Undergraduate Degrees, which was a slight increase on those holding a similar qualification in the last survey period. A similar increasing trend was also shown for respondents holding Postgraduate Degrees; namely, 35% in the 2010/2011 survey compared to 33% in 2009. Of significance is that of those surveyed in Australia, only 51% held Graduate or Postgraduate Degrees compared with North East Asia and China 93%, Middle East 87% and South East Asia 83%. ON-BOARDING EXTENSIVELY UTILISED‘On-boarding’, the formal induction of new employees, is considered by an increasing number of Supply Chain and Logistics organisations as a vital element of a corporate approach to training and development. 86% of those surveyed in North East Asia and China confirmed their organisation utilised a formal on-boarding process, compared to 74% in the Middle East and 73% in South East Asia. The level of on-boarding reported by Australia respondents was significantly lower at only 58%.

key findings

supply chain & logistics 2010/2011 Employment Market Survey Report1

2supply chain & logistics 2010/2011 Employment Market Survey Report

SOCIAL RESPONSIBILITY A STRATEGIC ISSUEFrom our surveys in recent years, Corporate Social Responsibility (CSR) is highlighted as an important factor in talent attraction and retention. As in 2009, respondents in this survey indicated that CSR is a current focus in 73% of organisations. In the most recent survey period a high 75% of respondents from North East Asia and China identified CSR as current area of focus for their organisation, compared to the Middle East with a low of 68%. Key reasons for a CSR strategy amongst those surveyed were Environment, Public Relations, Health and Safety and the desire to be perceived as making a responsible contribution to society and Corporate Governance in that order. Despite the recognition for CSR in the most recent survey, several barriers to adopting CSR strategy were identified including: Lack of Shareholder or Senior Management Support, Unclear Benefits, Lack of Employee Support and Cost. Of those surveyed, 87% believed that CSR either is, or should be a focus in their organisation. CHALLENGES AHEADSenior executives surveyed were asked to identify the key challenges to their businesses for the 12 months ahead. Results for those in Australia and South East Asia ranked Profitability, Customer Satisfaction and Productivity in that order as the most significant factors. Respondents in the Middle East ranked Profitability, Customer Satisfaction and Sustainability in that order as the most significant factors. Respondents from North East Asia and China identified Leadership Management, Skill Shortages and Profitability as the top-three ranked challenges in order of priority. When asked to rank the most important issues facing companies from an HR perspective, HR Executives reveal that overall the most common areas of concern are leadership development and talent attraction followed by staff retention and training. Regional emphasis did differ, for example China had the most emphasis on Training, whereas the Middle East placed the emphasis on strategic input into business outcomes and South East Asia ranked talent attraction as the most important.

DISCONNECT BETWEEN CEO’S AND HUMAN RESOURCE EXECUTIVES?The survey shows 62% of senior executives believe it is important for Human Resources to be aligned with business outcomes, but only 49% think the HR function can be used to make their organisations more profitable. HR executives on the other hand believe these percentages to be 61% and 64% respectively. Senior executives are not seeing as greater role for HR to drive organisational profits as HR executives do. Just 47% of senior executives surveyed think the relationship between the CEO and HR function is critical to the success of their businesses. Given that most senior executives would agree their talent pool is one of, if not the most valuable asset to an organisation, these findings suggest a possible disconnect which may be worthy of greater investigation by organisations within our industry. THANKS FOR YOUR PARTICIPATIONThe 2010/2011 report is designed to provide a broad summary of a variety of selected results that came from the survey which may give you the opportunity and perspective to reflect on how your organisation fits into the overall and regional results outlined. Thank you to the industry executives across many countries that completed the survey. For further details from the survey please feel free to contact me.

key findings

Kim Winter Chief Executive OfficerLogistics Executivep: +61 2 8262 9800e: [email protected]

survey methodology

An on-line survey of approximately 10-15 minute duration was emailed to more than 60,000 people within the Supply Chain & Logistics Industry in Australia, Oceania, Africa, America, Asia, Europe, the Middle East and New Zealand in late 2010, 4,600 respondents completed the survey. NB: The results are purely indicative in terms of overall trends within the industry. Disclaimer: Logistics Executive has compiled this report using data from which, to the best knowledge of Logistics Executive, was accurate as at the date of the publication. Results published in this report are for the general interest of readers and the industry. All material is published with due care and in good faith, but no responsibility will be accepted for omissions, typographical, or other printing errors or situations that may have taken place after publication. Logistics Executive disclaims all responsibility for any harm or loss arising from use or otherwise of the information provided within the report. All rights reserved. No part of this publication may be reproduced without the prior permission of Logistics Executive.

3 supply chain & logistics 2010/2011 Employment Market Survey Report

• 30.75% of the total respondents indicated that they are employed in Australasia.• 19.86% of the total respondents indicated that they are employed in South East Asia.• 14.95% of the total respondents indicated that they are employed in the Middle East.• 9.22% of the total respondents indicated that they are employed in the Indian Subcontinent.

in which region of the world are you employed in?

3

survey demographic

0% 10%

20%

30%

40%

2.94%

3.80%

19.86%

5.76%

14.95%

9.22%

9.37%

30.75%

3.35%Africa

Australasia

Europe

Indian Subcontinent

Middle East

North East Asia and China

South East Asia

The America’s (North, Central or South)

Other

which industry are you employed in?

industry type

overall findings

overall findings

This year’s survey demonstrated the increased involvement and responses from logistics executives in South East Asia, the Indian Subcontinent, North East Asia and China.

• Of the top 40 industry types listed in the survey, the following three rated as the three most common areas of employment. • 16.85% of the total respondents are employed in the 3PL, 4PL, Logistics or Warehousing industry. • 9.07% of the total respondents are employed in the Manufacturing & Industrial industry. • 5.58% of the total respondents are employed within the Freight Forwarding & Customs industry.


Customer Services

Support & Admin

Distribution & Warehousing

Transport & Logistics

Engineering & Technical

Executive Management (CEO, MD,GM, Director)

Facilities Management

Finance & Accounting

Human Resources

IT & Telecommunications

Legal & Corporate Affairs

Maintenance & Workshop

Manufacturing & Production

Marketing & Communication

Procurement & Inventory

Project/Program Management

Quality Assurance, Safety, Risk & Environment

Research & Development

Sales & Business Development

Supply Chain

Training & Education

2.01%

1.45%

11.53%

23.91%

1.41%

9.30%

0.67%

2.49%

3.31%

1.60%

0.30%

0.56%

2.08%

1.19%

7.29%

3.46%

1.38%

0.41%

8.29%

16.58%

0.78%

please select the function that primarily best describes what you do?

roles & positions

0% 5% 15%

10%

20%

25%

• The top three functions that describe the respondents are Transport and Logistics at 23.91%,16.58% employed in a Supply Chain role and 11.53% in Distribution and Warehousing.

• Transport and Logistics continues to be the number one function in which people in this industry are employed in each report.

Comparison to previous years

In the 2008 report 18.85% of the total respondents indicated that they were employed in a Supply Chain role. The results for the last four years have been comparable for all of the key roles.

overall findings


salary and wages

in your next review by approximately what percentage do you expect your salary to increase?

2.45%

3.94%

0.86%

1.00%

3.27%

6.28%

2.23%

1.64%

2.75%

3.61%

6.62%

9.45%

12.20%

14.73%

9.56%

10.97%

28.30%

30.94%

31.76%

17.44%

0-2%

3-5%

6-8%

9-10%

11-12%

13-14%

15-16%

17-18%

18-20%

20+%

0-2%

3-5%

6-8%

9-10%

11-12%

13-145%

15-16%

17-18%

18-20%

20+%

in your last review, by approximately what percentage did your salary increase?

• 60.00% of the total respondents only received modest pay rises in 2010 which probably reflects the general state of the global economy late in 2010.

• The survey showed that about 20.00% of the total respondents reported increase in the order of about 20.00%, these were mainly from areas of extreme growth or skill shortage.

0% 10%

20%

30%

40%

0% 10%

20%

30%

40%

overall findings

overall findings

• 52.00% of the total respondents expect of those surveyed expect an increase of 6 or more percent, indicating many organisations will face wage pressure in 2011.

6supply chain & logistics 2010/2011 Employment Market Survey Report6

• 39.23% of the total respondents have an Undergraduate Degree. • 35.22% of the total respondents have a Postgraduate Degree, including a Masters or a Doctorate. • This year there is a slight increase in respondents who have both Undergraduate and Postgraduate Degrees.

what is the level of the highest qualification that you have completed?

education & qualifications

No tertiary qualification

7.77%

Other tertiary qualification

17.78%

Undergraduate

39.23%

Postgraduate

35.22%

overall findings

comparison to previous yearsIn the 2008 report only 13.64% of the total respondents had a Postgraduate Degree showing a signif icant improvement in the Tertiary education levels of people in the Supply Chain and Logistics industry over the last few years.


• 13.35% of the total respondents indicated that Transport and Logistics is the most difficult area to recruit in.

• This was followed closely by 9.66% in the Supply Chain area.

skills shortage

new: leadership development

comparison to previous years

In the 2006 report 11.16% of the total respondents indicated that Supply Chain was the most difficult area to recruit in. In the 2008 results 13.92% of the total respondents indicated that it was in the area of Logistics. In four years very little has changed in the areas that suffer with a skills shortage.

overall findings

overall findings

• Respondents were asked to identify the most important areas that the organisation needs to focus on in the next twelve months.

• 79.70% of the total respondents indicated that Leadership Development is the main area to focus on. • This was followed closely by 78.80% focussing on Talent Attraction and 77.85% identifying staff retention.

areas within the industry that have been difficult to recruit in?

Customer Services

Support & Admin

Distribution & Warehousing

Transport & Logistics

Engineering & Technical

Facilities Management

Finance & Accounting

Human Resources

IT & Telecommunications

Legal & Corporate Affairs

Maintenance & Workshop

Manufacturing & Production

Marketing & Communication

Procurement & Inventory

Project/Program Management

Quality Assurance, Safety, Risk & Environment

Research & Development

Sales & Business Development

Supply Chain

Training & Education

6.29%

3.93%

8.60%

13.35%

5.16%

2.21%

3.57%

2.93%

3.99%

2.27%

2.91%

2.98%

2.80%

5.65%

5.12%

4.28%

3.42%

7.99%

9.66%

2.89%

0% 5% 15%

10%

most important focus in the next 12 months?


as an employer, what are the major factors contributing to people leaving your organisation?

4.82%

2.37%

3.25%

2.45%

3.94%

7.48%

15.09%

6.03%

15.05%

6.99%

6.27%

11.06%

8.30%

7.77%

27.25%

22.02%

19.79%

25.76%

More money

Career advancement

Cultural fit

Change of industry

Redundancy/retrenchment

Job Security

Employer Values

More money

Career advancement

Cultural fit

Change of industry

Redundancy/retrenchment

Maternity leave

Moved interstate

Went travelling

Moved overseas

Job Security

Employer Values

factors contributing to recruitment decisions

what are the factors contributing to people joining your current organisation?

• 27.25% of the total respondents indicated that career advancement is the major factor contributing to people joining their organisation.

• This was followed by 19.79% of the total respondents believing that more money is also an important factor.

0%

0%

10%

10%

20%

20%

30%

30%

40%

40%

overall findings

overall findings

• 25.76% of the total respondents indicated that more money was the key reason people left their organisation.

• 22.02% of the total respondents indicated that people left for career advancement reasons.

In the 2009 report 25.03% indicated that higher remuneration was the main reason people left their organisation. comparison to the 2009 results

In 2009, 35.21% of the total respondents indicated that career advancement was the major factor. The results for this survey have shown a slight decrease. Interestingly in the 2008 results 17.46% of the total respondents indicated that salary was the major factor, followed closely by 16.11% for career development.

comparison to the 2009 results


what change in your company’s activities or growth this financial year did you see compared to last year?

what expectations of your company’s activities or growth next financial year compared to this year?

Increased

67.87%

Increased

80.29%

Decreased

14.99%

Decreased

5.58%

Remained the same

17.14%

Remained the same

14.13%

business activities & company growth

The 2010/2011 survey shows a significant increase in the growth of company’s activities. In the 2009 report 45.00% of the total respondents indicated that business activities and growth had increased. In 2008 it was 82.23%.

Only 55.22% of the total respondents in the 2009 survey results believed that their company activities or growth would increase.



overall findings

• 67.87% of the total respondents indicated that they believe that their company’s growth increased in the last financial year.

overall findings

• 80.29% of the total respondents indicated that they believe that their company’s activities or growth will increase in the next financial year.

• This shows a dramatic increase in expectation of growth from this years survey VS the 2009 results.


what do you understand to be your company’s staff turnover by percentage?

business activities & company growth

new: as a CEO/Director, what are the challenges facing your business in the next year

4.36%

6.28%

2.32%

3.68%

7.64%

12.22%

27.48%

36.02%0-5%

6-10%

11-15%

16-20%

21-25%

26-30%

30+%

Unknown%

• 36.02% of the total respondents believe that staff turnover is less than 5%.

• 27.48% of the total respondents believe that staff turnover is as much as 10%.

0% 10%

20%

30%

40%

overall findings

in the next financial year what do you forecast that the staff levels of your company will be?

Increased

58.87%

Decreased

11.45%

Remained the same

29.68%overall findings

• 58.87% of the total respondents forecast that their staff levels will increase in the next financial year.

overall findings

• Chief Executive Officers/Directors were asked to identify the key issues and areas that would challenge their business in the next twelve months.

• 85.85% of the total respondents indicated that profitability was the main challenge. • This was followed closely by 79.80% believing that leadership management would be a challenge and 77.70%

highlighted customer satisfaction.

The 2010/2011 survey resul ts were consistent wi th those of 2009, wi th the signi f icant major i ty of respondents indicating that staff turnover was less than 5.00%.



influence of corporate social responsibility

is Corporate Social Responsibility (CSR) a focus for your organisation?

do you believe your organisation should have a CSR program/focus?

Yes

72.55%

Yes

52.71%

No

27.45%

No

47.29%

The 2010/2011 survey reflected similar results to that of 2009 and 2008, though showing a slight increase

this year.

The results for 2010/2011 indicate that there has been a consistent increase in respondents believing that their organisation should have a CSR program each year since this survey commenced.



overall findings

• 52.71% of the total respondents believe that their organisation should have a CSR program.

overall findings

• 72.55% of the total respondents indicated that CSR is a focus of their organisation.

influence of corporate social responsibility

overall findings

• Respondents were asked to indicate more than one top obstacle to developing CSR programs. • 68.99% of the total respondents indicated that cost is the main obstacle to implementing a CSR program. This

result shows a massive 50% increase in respondents believing that cost is the main obstacle since 2009.• This was followed closely by 56.30% indicating that developing a CSR program has unclear benefits. • 55.10% believed that lack of Director or management support was an issue.

do you measure a Return On Investment (ROI) on CSR program(s)?

Yes

31.20%

No

34.91%

Unknown

33.89%

In the 2009 report 31.64% of the total respondents indicated that their company does not measure ROI on their CSR program.

In 2009 only 30.03% of the total respondents believed that cost was the main obstacle, with 30.48% believing that it was lack of support from senior management.



overall findings

• 34.91% of the total respondents indicated that they do not measure a Return on Investment (ROI) on their CSR program.


what are the main obstacles to your CSR program(s)?

www.logisticsexecutive.com

SYDNEYPhone: +61 2 8262 9800Level 29 Chifley Tower 2 Chifley Square Sydney New South Wales 2000 Australia

MELBOURNEPhone: +61 3 9863 9488St Kilda Towers1 Queens Road Melbourne Victoria 3004 Australia

SINGAPOREPhone: +65 6818 9745Suite 1716 Collyer Quay #10-00 Hitachi TowerSingapore 049318

HONG KONGPhone +852 3125 7654Suite 901, Level 9Hong Kong Club Building 3A Chater Road Central Hong Kong China

SHANGHAIPhone: +86 21 6427 6697Suite 13GShanghai Ind’l Investment Bldg. 18 Cao Xi Bei Road Shanghai China 200030

DUBAIPhone: +971 4361 6275Block 17 Knowledge VillagePO Box 500755DubaiUnited Arab Emirates

COPYRIGHT © 2010 By LRS Group

executive recruitment & business performance

SYDNEY MELBOURNE SINGAPORE HONG KONG SHANGHAI MUMBAI DUBAI

Logistics & Supply Chain Recruitment

employment market survey report 2010-2011

Documents