Close-up Of A Business Woman Giving Cheque To Her Colleague At Workplace In Office

‘Tug of war’ erupts over logistics salaries

More logistics professionals will receive a pay rise this year than last, but it will be a less significant increase than they hoped for.
According to the FY 2019/20 Hays Salary Guide, 92% of employers will increase their transport and distribution staff salaries in their next review, up from 83% who did so in their last review.
However, the value of these increases will fall. 71% intend to raise salaries at the lower level of 3% or less, up from 63% who did so in their last review. At the other end of the scale, just 3% of employers intend to grant pay increases of more than 6%.
Professionals prioritise a salary increase
For their part, 26% of the transport and distribution professionals Hays also spoke to expect no increase whatsoever and a further 48% expect 3% or less. Yet while these professionals anticipate little or no increase, they’re not going to sit idly by and accept it.
In fact, more than half (57%) say a salary increase is their number one career priority this year. 46% intend to achieve this by asking for a pay rise, while others are looking elsewhere – 41% of jobseekers say their uncompetitive salary provoked their job search.
“Tug of war over salaries”
“Evidently, the aggregate effect of several years of sedate salary increases is taking its toll and we’re now seeing a tug of war over salaries,” said managing director of Hays Logistics Tim James.
“On the one hand, we have professionals telling us they’ve prioritised a pay rise and are prepared to enter the job market to improve their earnings. On the other, employers tell us they want to add to their headcount and are being impacted by skill shortages, yet they want to curtail salary increases.
“There are only a few exceptions. The recovery of the senior supply chain market led to demand for supply chain managers and, in turn, mid-tier demand and supply planners. In some states, salaries have increased in response to this demand.
“Tasmania’s positive economic climate led to a surge in interstate and international exports. Looking ahead, salaries are expected to increase in the state for multi-combination drivers and warehouse supervisors, who remain in short supply.
“While salaries for warehousing roles remain steady in smaller organisations nationally, larger companies are offering salaries over $90,000 for highly skilled and experienced candidates, especially those with safety qualifications and experience.
“In addition, in New South Wales and Victoria, higher vacancy activity has significantly drained the available pool of candidates and created a war for talent. As a result, employers in these states have begun to offer higher salaries for senior warehouse supervisors, operations managers, transport managers and fleet managers and controllers.”
In other key findings, the 2019/20 Hays Salary Guide found:

  • 67% of organisations offer flexible salary packaging. Of these, the most common benefit is salary sacrifice, offered by 55% of employers to all employees. This is followed by above mandatory superannuation (offered by 37% of employers to all their employees), parking (33%), bonuses (27%) and private health insurance (26%).
  • Of the benefits offered to a select few employees, private expenses tops the list, with 70% of employers offering it to a hand-picked number of employees.
  • 68% of employers said business activity had increased over the past year, with 70% expecting it to increase in the next 12 months.
  • 57% intend to increase permanent distribution staff levels over the coming year.
  • 70% say skill shortages will impact the effective operation of their business or department in either a significant (28%) or minor (42%) way, up from 67% last year.
  • 54% of employers are restructuring to keep up with changing business needs – the key driver of these restructures is a change in the required skill sets.
  • In skill-short areas, 57% of employers would consider employing or sponsoring a qualified overseas candidate.

Will a robot take your job?

Half of Australian workers have already seen their job responsibilities change as a result of automation, according to recruiting company Hays.
In an online poll of almost 2,000 (1,987) people in Australia conducted by the recruiter, 18 per cent said automation has already impacted their job ‘significantly’, with their duties changing or their role becoming redundant.
Another 32 per cent said their job has been impacted ‘partially’, with some tasks automated and non-routine duties increasing.
The final 50 per cent said automation has so far had no impact on their day-to-day job responsibilities.
“There’s no denying that robots will continue to join workplaces across the country, with professionals able to benefit if they take the appropriate action now,” said managing director of Hays in Australia & New Zealand Nick Deligiannis.
“Even if you are one of the 50 per cent of skilled professionals whose job has not yet been impacted by automation, it’s essential you don’t rest on your laurels. The automation of routine and repetitive job tasks is inevitable.
“To prepare, consider what your job would look like if all the routine and repetitive duties you perform were automated. Then determine how you could fill the time freed up by the automation of these tasks in a way that adds greater strategic value to your employer.
“Next, start to upskill in the higher-value areas you’ve identified so that you’ll be ready for the automation of your lower-value, repetitive tasks.
“But don’t just sit back and wait for automation to knock on your door. Be proactive and embrace change by exploring relevant automation tools and their practical application for your role. Set up a meeting with your boss to discuss these new tools and how they could be of use in your role. Then present your plan for how you can focus your time on higher-value tasks if your routine and repetitive job responsibilities were automated.
“Remember, constant upskilling is the key to remaining relevant and employable when lower-value tasks are automated,” Mr Deligiannis said.

10 talent trends for 2019 – from MHD magazine

Nick Deligiannis

Balancing automation with human workers, the impact of chatbots on an employment brand and a widening talent mismatch are among the trends that will shape the recruitment market in 2019.
Organisations in Australia want to position for growth in 2019. With demand and supply issues intensifying, they’ll need to up the talent ante to achieve growth while striking the right balance between technological integration and human skills.
Our ten top talent trends for 2019 are:

  1. The integration of the ‘human’ factor within successful automation deployment

‘Could a robot do my job?’ This was a common question asked in 2018, but with employers now focused on the optimal balance between human workers and robotic automation the question for 2019 becomes: ‘How will automation be integrated into my role?’ As Elon Musk admitted in 2018 on Twitter in response to delays in manufacturing Tesla’s Model 3 sedan, “Excessive automation at Tesla was a mistake… Humans are underrated.” Organisations are learning from such mistakes and, in 2019, will look for the most effective, ethical and value-adding amalgamation of automation and staff beyond simply the most productive.

  1. Taking employees on the AI change management journey

Once the decision is made to introduce robotic automation or artificial intelligence to drive operational efficiency, organisations will need to engage their employees within a robust and considered change management plan to mitigate risk of implication on morale. It’s important that this is done in a way that alleviates the perceived threat that many workers see such technology posing to their livelihood. Part of this involves talking about the rationale behind it, and explaining how it can help individuals perform their job and potentially develop their career through learning new skills.

  1. The retention benefit of digital upskilling to be realised

With major brands such as Walmart already investing in the digital upskilling of their staff, expect constant learning to become mainstream in 2019. Whilst upskilling existing staff provides an organisation with a pipeline of employees who can fill current skill gaps, an arguably greater benefit comes in the form of an employee benefit that staff actually want to receive and will stay for. According to our 2018-19 Hays Salary Guide, 59% of Australian workers want a job offering ongoing learning and development opportunities. This is behind only flexible work practices and career progression.

  1. Big data gets bigger

Big data is no longer the exclusive domain of big business, with technological barriers falling away as more and more off-the-shelf data management tools close the gap with enterprise level organisations. Organisations of all sizes will be able to rely on big data for business insights. In 2019 the focus will be on recruiting talent who can capture more information from an increasing number of data points, such as the Internet of Things (a market that will double by 2021) and previously unused dark data, but, crucially, also derive actionable insights from that data. We also expect to see greater regulation surrounding data protection and privacy, which will impact the skills employers require.

“Once the decision is made to introduce robotic automation or artificial intelligence to drive operational efficiency, organisations will need to engage their employees within a robust and considered change management plan.”

  1. The lure of chatbots, the potential impact on an employer brand

The use of conversational artificial intelligence within the recruitment process will rise in 2019, but organisations will need to assess and address the potential impact on an employer brand. The technology now exists for an organisation to use advanced chatbots to offer personalised responses to initial candidate telephone enquiries and common queries based on set rules and algorithms. While the automation of such conversations can free hiring managers to focus on non-routine job tasks, organisations will need to consider its impact on their employer brand – and if the caller should be informed that they’re not talking to a person.

  1. Diversifying diversity

The business benefits of a diverse and inclusive workforce and workplace are becoming more widely understood, but various surveys show that in 2019 organisations will want to accelerate the pace of change to achieve genuine results in this area. The focus will also shift to diversifying diversity, or in other words, to widening terms of reference to cover more demographics, such as Aboriginal and Torres Strait Islander, people living with disclosed disabilities, people who identify as LGBTIQ+, and mature-age.

  1. Failure to offer flexibility creates an attraction and retention drawback

Few professionals work 9-5 anymore, but the concept of set hours every day was heavily under the spotlight in 2018. An Irish study of 1,000 workers found 32 per cent would accept a longer workday for a shorter working week. Meanwhile, a New Zealand financial firm, Perpetual Guardian, allowed workers to work a four-day week following a trial that found it improved productivity and reduced stress. With more employees considering flexibility – of hours or place – the norm, any organisation that doesn’t review its flexible working policies will face an attraction and retention shortcoming in 2019.

  1. Beware the talent mismatch

Australia’s talent mismatch, between the skills jobseekers possess and those employers want, will expand even further after growing for the past five years. Despite an existing pool of labour, in 2019 employers will find it harder to hire people with the expertise they need, particularly in high-skill industries and for roles that require highly skilled professionals, such as IT, engineering, financial services and professional services. This will lead to employers exploring a wider range of talent attraction and retention strategies in 2019.

“Given increased technological change and the fast-paced nature of today’s world of work, employers look for candidates who can think strategically to leverage new technologies, trends and opportunities.”

  1. Focus on specialisation and strategic thinking

Employers will focus on expanding their teams with deep expertise and wide perspectives. Given increased technological change and the fast-paced nature of today’s world of work, employers look for candidates who can think strategically to leverage new technologies, trends and opportunities to add greater value and benefit the organisation.

  1. A need for stakeholder engagement skills

Technological disruption will increase the requirement for all departments to possess staff with strong stakeholder engagement and management skills. Organisations will look for staff who, in addition to possessing the necessary technical skills a role requires, can also understand and improve engagement with internal and external stakeholders.
Nick Deligiannis is the managing director of Hays in Australia & New Zealand. For more information visit www.hays.com.au.
 

Hays-jobs-employment-skills-in-demand

Where the jobs are in T&L

Demand for multi-skilled candidates remains high across transport, warehousing and supply chain, according to the latest Hays Jobs Report. This is the result of a focus on efficiency improvements and positive productivity, with employers looking for candidates with a strong knowledge of systems and processes and a history of reducing costs, achieving demanding KPI and diverse experience. Employers also want candidates with a wide technical skill set whom they can utilise to their full potential.
Within the transport industry, strained transport networks in Sydney and Melbourne will continue to fuel demand for Transport Allocators. With a busier transport sector in Brisbane, there is a need for Transport Allocators and experienced Transport Supervisors and Managers to lead operations. Employers require candidates with experience in a similar role.
Lateral-thinking Transport Coordinators and Managers who cope well under pressure and find the best route at the cheapest rate are also in demand.
Casual HR Drivers as well as MC Drivers with a MSIC card are needed. So are HR and HC Drivers who are open to a multi-skilled role such as driving and labouring.
Freight Forwarders remain in demand but require relevant experience. Import/Export professionals are sought, with a particular focus from employers on sea freight and Mandarin speaking candidates. CargoWise experience is a new trend that employers more commonly request.
Within warehouse and distribution, Warehouse Managers and Supervisors are required. Candidates must be analytically sound with a proactive approach to KPI. As companies continue to appreciate the benefit of improving logistical efficiencies, candidates who can track, monitor and manage KPI performance are highly sought after.
In a localised trend, New South Wales’ growing 3PL footprint is leading to demand for Warehouse Managers, Logistics Coordinators and Analysts. Employers want to ensure maximum efficiency is achieved and KPI and contracts are being met. Expectations from 3PL employers are growing and they therefore look for candidates who can ensure service delivery levels are being met, if not exceeded.
Import and Export Coordinators are another area of demand. With many companies moving their manufacturing overseas, candidates with international shipping experience and cargo software knowledge are in high demand.
Dispatch Coordinators are needed, too.
Wharf Fleet Controllers are also sought in response to turnover due to the high pressure work environment. Employers look for candidates with wharf experience and a secure, stable and successful career within this space.
In the SME sector, inventory control professionals who can develop procedures to improve inventory accuracy and transparency are required.
Inventory Controllers are another area of demand. The duties of this role were once the responsibility of Warehouse Supervisors, however, employers now have stricter tolerances on stock levels and are recruiting these professionals in response.
Storepersons with inventory management software experience are needed, too. Companies seek candidates who can multi-skill, manage inventory needs and possess strong computer skills, a forklift licence and the ability to load and unload deliveries, pick and pack orders and tidy a store.
Forklift Operators skilled in operating different attachments and High Reach Forklift Operators are also sought. While Forklift Operators are available, those with attachment and high reach expertise are rare, as are those who have worked in busy warehouses and have strong navigation skills.
Casual Skilled Labourers are needed for one- to two-day assignments. With most people looking for longer-term roles, reliable candidates for short-term roles are rare.
Another interesting trend is the recovery of the senior level supply chain market. Today, multiple Supply Chain Manager vacancies are available in global organisations. This has also led to an increase in the number of mid-tier supply and demand planner vacancies. As a result, demand exists for quality Supply and Demand Planners and S&OP Managers who have worked with complex manual-based systems, have exposure to and assisted with the development of S&OP processes and implementations, possess an analytical and commercial focus and can influence and educate internal stakeholders across an organisation.

Hays releases 2018 Jobs In Demand report

Recruiting firm Hays has released its latest Jobs In Demand report, covering January to June 2018.
The company expects strong demand to continue in the logistics industry for persons with expertise in the areas of inventory management, import/export, wharves and fast-moving consumer goods (FMCG) planning.
“Across Australia, positive productivity is linked to efficiency improvements, be that in warehousing, transport or supply chain,” the company said. “Companies are targeting candidates who have a strong knowledge of systems and processes, combined with a proven track record in reducing costs and achieving demanding KPIs [key performance indicators].”
The report identified several roles that the industry is currently keen to fill, including storepersons with inventory management software experience, import/export coordinators with cargo software knowledge, fleet controllers with wharf experience, demand and supply planners with FMCG experience.
Experience in purchasing will also be in demand, as will candidates with knowledge of inventory management software such as enterprise resource planning (ERP) and SAP software.
Hays is also seeing an increased need for logistics candidates with heavy rigid or heavy combination licences.

Modest pay hikes for Australia’s logistics workers

Seventy-one per cent of Australia’s transport and distribution employers will give their staff a pay rise of up to three per cent in their next review – compared to 65 per cent of employers across all industries nationally.
The annual Hays Salary Guide, released in early June also shows that 16 per cent of transport and distribution employers will not increase salaries at all, above the 11 per cent non-industry-specific average.
Hays Logistics reported that 10 per cent of transport and distribution employers intend to award a salary increase of between three and six per cent in their employees’ next review, and just three per cent will increase salaries at the higher level of more than six per cent, compared to19 per cent across all industries.
The Salary Guide shows that many employers have a positive outlook yet remain cautious when it comes to salaries.
“2016–17 proved to be a mixed year for the logistics industry and, while costs remain tightly managed, recruitment activity has increased across all job levels,” said Tim James, Director, Hays Logistics.
“3PL providers continue to grow and the trend towards outsourcing logistics functions means salaries are being squeezed to accommodate aggressive pricing strategies geared to win new business on lower margins.
“Across Australia, positive productivity is linked to efficiency improvements, be that in warehousing, transport or supply chain. Companies are targeting candidates who have a strong knowledge of systems and processes, combined with a proven track record in reducing costs and achieving demanding KPIs.
“From a supply chain perspective, companies continue to seek jobseekers who have strong systems knowledge, especially SAP/APO. However these skills are scarce and subsequently salaries for these roles have increased, especially in NSW and Victoria,” he said.

Aussie logistics sector demanding SAP knowledge, leveraging brand

According to Hays’ latest Quarterly Report, covering April to June 2017, a continued availability of operational logistics roles continues to show that the manufacturing sector has improved – though these jobs include warehouse and transport roles rather than supply chain roles.
With organisations continuing to outsource logistics, the Report found that vacancy activity in 3PL companies remains strong.
Large logistics businesses are keeping salaries steady; instead leveraging their brand and the opportunity to join their team attract candidates.
While employers in the industry were found to be looking for candidates with relevant systems knowledge, SAP was found to be one of the most in demand systems.
Tertiary education, found to be in high demand in the previous Quarterly Report, is still highly valued by employers.
“The trend to employ tertiary educated candidates continues,” Hays said in a statement. “These candidates are viewed favourably by employers for white-collar roles managing teams – they’re perceived to be more adaptable to changing market conditions and more aware of new and ever-changing technology. They are preferred to those with a blue-collar background who have worked their way up.”
The demand for supply chain/inventory managers remains high for candidates with tertiary qualifications and FMCG experience, the company noted, adding that import roles remain a focus, but export roles have increased in response to Australia’s weak dollar.
Inventory controllers with operational experience and relevant licences, such as a forklift licence, are required too, as organisations are attempting to streamline processes and some are therefore combining warehouse supervisor and inventory roles.
The FMCG industry is in need of supply chain coordinators, the Report also found. “The planning area in FMCG organisations is always buoyant, however demand planner salaries have increased to an extent that employers prefer to recruit a coordinator to support the planning function,” the statement said.
Production managers are another ongoing area of demand. “We’ve seen a slight increase in the number of businesses of various sizes looking to employ tertiary qualified professionals at management level,” the company said. “Applicants with exposure to FMCG are in shorter supply than they once were.”

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