2021 IT Recruitment and Retention Report - 1300 CLICKS clicks.com.au
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2021
IT Recruitment and
Retention Report
1300 CLICKS
clicks.com.au
Introduction
Clicks IT Recruitment is pleased to provide you with the latest analysis of the state of the
Australian IT staffing market – the 2021 IT Recruitment & Retention Report. The report provides
insights into hiring intentions, IT spending in both corporate and government sectors, and current
IT hiring trends. We have also included commentary to help you better understand how these
factors have changed over the past 12 months.
It hardly needs stating that 2020 has been a year like no other. So much so that Clicks conducted
an additional IT Recruitment & Retention survey of our clients in July to gain contemporary
business intelligence on the changes to market conditions. Having this additional data allows
us to provide you with valuable context on the year’s oscillating circumstances. Predictably,
many business indicators fell in July, at a time when expenditure control, business continuity and
managing remote workforces were key priorities. We were therefore delighted to see an equally
impressive recovery across all fronts in our December data.
There are other items of note in this report, specifically in our respondent base. Our Baby
Boomers dropped from 21% prior year to just 1% this year, whilst our Gen Zers (born 1998 – 2010)
increased from 1% prior year to 20% this year. We are getting younger! We welcome the views of
this cohort and look forward to the diversity they bring to this dialogue. On other diversity fronts,
Clicks continues to strengthen its position as a thought leader in gender and neurodiversity
recruitment. This year we were invited to be the inaugural members of the Recruitment Industry
Reference Group, a Government funded program to teach employers and labour hire companies
how to confidently hire people with autism.
With hopes for improved politics in the United States, COVID-19 vaccines being delivered and
an increase in anticipated hiring demands, we are optimistic about a busy year ahead. Many
organisations in both the private and public sectors are committed to a full project pipeline
in 2021, which Clicks looks forward to assisting with through the provision of excellent IT
professionals. We are ideally placed to support your organisational objectives and hiring strategy.
Please contact me on the details below to find out why Clicks is Australia’s favourite IT recruiter.
Ben Wood
Managing Director
Level 35, 360 Collins Street, Melbourne VIC 3000
03 9963 4884 | ben.wood@clicks.com.au
Contents Key Findings....................................................................... 1 Business Environment: Sales and Budgets............................ 2 Staffing Levels: Hiring or Firing........................................... 3 Resourcing Strategies: Onsite IT Consulting.......................... 5 Hot Spots: Who’s in Demand.................................................7 Salaries: Show us the Money............................................... 9 Resourcing Strategies: Buy or Build.................................... 10 Resourcing Strategies: Graduates........................................11 Staff Turnover and Retention..............................................11 IT Health Check................................................................ 13 About You and Your Organisation........................................ 14
Key Findings
During December 2020 we conducted our 24th survey and analysis of organisations
in Sydney, Melbourne, Brisbane and Canberra. Data from hundreds of respondents is
compared to 12 months prior and is analysed by organisation size and sector.
What did the data reveal?
1 Following the impact of COVID-19, there has been a strong recovery across all key
indicators: sales revenue, IT budgets, and headcount.
2 Pre-COVID, 45% of employers were expecting an increase in sales turnover. This
dipped to 10% during COVID, and has rebounded to 38%.
3 IT budgets have also experienced a rapid recovery, going from 13% expecting an
increase during COVID, to 31%.
4 46% of employers expect their IT staff numbers to remain steady across 2021,
slightly below the ten year average of 48.2%.
5 Permanent hiring intention has strengthened slightly, and is at a three year high,
with 35% of respondents expecting to increase headcount.
6 Dipping to 11% in July 2020, those expecting to increase IT contractor usage has
also rallied, with 23% of employers now anticipating growth in 2021.
7 Security and Applications Development continue to be the most difficult skill sets
to recruit. They are also expected to be in high demand in the year ahead.
8 IT salaries experienced their lowest increase on record during 2020, with an
average increase of less than 1%.
9 56% of employers reported no change to their IT salaries, however 47% reported
having to pay more than they anticipated.
10 Flexible working hours and the ability to work remotely continue to be the most
highly valued employer offerings to improve retention.
IT RECRUITMENT & RETENTION REPORT 2021 1
IT RECRUITMENT & RETENTION REPORT 2021 1Business Environment: Sales and Budgets
? Is your organisation budgeting for an ? If increasing, by what percentage?
increase or decrease in sales turnover over
the next 12 months?
17%
24% 21% +
34%
Decrease 11–20%
28%
The Same
Pre-COVID, 45% of respondents
were expecting an increase, and
24% were expecting a decrease.
During the peak of COVID in July,
these figures altered dramatically:
just 10% anticipating an increase,
and 73% a decrease.
The December results talk to the rapid recovery
of our economy, with the figures returning to 59%
38% pre-COVID levels. 38% are now expecting an 0–10%
Increase increase in sales turnover in 2021, and those
expecting a decrease has halved to 34%.
? Is your overall IT budget set to increase, decrease, or remain the same over the next 12 months
compared with the last 12 months?
Commercial Public Sector
23% 24%
47% Decrease 39%
42% The Same Decrease
Increase
The Same 27%
Decrease
30% 37%
Increase The Same
31%
Increase
Equally as encouraging as the turnover
forecasts, those expecting an increase
in their IT budget has bounced back to
31%, the 10 year average, from a low of
13% during COVID.
31% is an even stronger result than
our most recent pre-COVID survey in
Dec 2019, when 27% were expecting
an increase in overall IT budget.
33% 37% 33% 27% 31% 21% 17% 16% 25% 27% 46% 46% 51% 48% 42%
Increase Decrease The Same
2016 2017 2018 2019 2020
2 IT RECRUITMENT & RETENTION REPORT 2021Staffing Levels: Hiring or Firing
? What is your total number of IT Staff (including ? Will your total IT staff numbers increase or
contractors) in Australia? decrease over the next 12 months?
16%
0–20 46%
The Same 28%
Decrease
16%
21–50
55%
100+ 26%
13% Increase
51–100
Underpinning the strong recovery
theme, those expecting to increase
This metric has remained largely
IT staff numbers at 26% has nearly
unchanged pre and during COVID.
rebounded to the 28% pre-COVID figure.
With 55% of respondents having 100+
IT staff in December 2020, this is in During COVID-19, those expecting to increase
line with the 5 year average of 53.4% IT staff numbers fell to an all-time low of 11%.
Those expecting to remain steady at 46% is
close to the ten year average of 48.1%.
32% 37% 37% 28% 28% 18% 17% 12% 20% 26% 50% 46% 51% 52% 46%
Increase Decrease The Same
2016 2017 2018 2019 2020
IT RECRUITMENT & RETENTION REPORT 2021 3? Do you expect to increase the number of your permanent IT staff over the next 12 months?
2020
During COVID, this figure dipped from
35% Yes 65% No 33% pre-COVID to 28%. This is not a
material difference, and is the same
2019 result as 2016, when there were no
major market-disrupting events.
33% Yes 67% No
2018
34% Yes 66% No
2017
36% Yes 64% No
2016
28% Yes 72% No
? Over the next 12 months do you expect your usage of IT Contractors will be greater or less than
over the last 12 months?
9% Greater/The Same Less/Don’t Use
Don’t Use
23%
Greater 2020
59% 41%
2019
68% 32%
2018
78% 22%
2017
69% 31%
2016
76% 24%
36% 32%
The Same Less
Whilst this aggregate view of 2020 may appear less optimistic
Anticipated IT contractor usage has made a full recovery to pre- in comparison to prior years, the ‘Greater’ result of 23% is within
COVID levels at the end of 2020. With 24% expecting greater striking distance of the 15 year average of 26.2%.
usage at the end of 2019, demand softened to 11% in July 2020.
Those not using contractors is also a factor, with a
Rebounding to 23% in December 2020, result of 9% compared to a 15 year average of 5.4%.
this sends a very encouraging message to
the market, with organisations committing
to the completion of their project pipeline.
4 IT RECRUITMENT & RETENTION REPORT 2021Resourcing Strategies: Onsite IT Consulting
? Do you currently use onsite IT consulting services as part of your overall IT staffing mix?
63% 37%
Yes No
There has been a softening in usage
of onsite IT consulting services, at
63% compared to 65% prior year,
and a 5 year average of 67%.
With these types of services typically
attracting a higher cost than traditional
labour hire IT contracting, tighter than
usual financial constraints during
COVID-19 may have contributed to
the reduction in demand.
? If yes, over the next 12 months are you ? If no, do you expect you will use onsite IT
planning to increase or decrease your use consulting services as part of your IT staff
of the onsite IT consulting services? mix in the next 12 months?
12%
Yes
56% 23%
The Same Decrease
21%
Increase
88%
No
There isn’t significant movement in this metric, with 56% of respondents
intending no change to their onsite IT consulting services.
This is only a slight softening against the five year average of 58.7%.
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Executive Assistants Accountants: Financial, Lead Generation /
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Public, Management Industrial Relations Professionals
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Business Analysts Workforce Planning Business Leaders
Team Leaders
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Credit Analysts & Organisational Executives
Operations Managers
Project Administrators Managers Development
Directors
Contact Centre
Marketing & Chief Financial Officers Trainers
Managers Assistant Directors
Communications Officers
Accounts Payable / Compensation and
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Payroll Officers and Receivable Benefits Manager
Managers Workforce Planners
Procurement
Sales Government Light Industrial Warehouse & Logistics
Business Development APS 1 - EL 2 and State Production & Process Workers Pick / Pack
Managers Government Equivalents
Lab Technicians RF Scanners
Account Managers / Directors Graduates
Quality Control Voice Pickers
Sales Representatives / Policy Officers
Outdoor Workers Scissor Lift (EWP) Operators
Managers / Directors
Procurement Officers
Labourers (with White Card) Forklift Operators (LF Licence)
Sales Coordinators
Project Officers
Machine Operators Order Pickers (LO Licence)
Channel / Partner Sales
Program Managers
Professionals Trades Inventory Personnel
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Inbound / Outbound Sales Supervisors Receiving & Despatch
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Hot Spots: Who’s in Demand?
? Which IT roles are most difficult to recruit?
When bundled, Digital, Data, and Information
Management were ranked top by one in five
Perhaps unsurprisingly, Application Development and Security
respondents. The appetite for smarter and faster
were high on the list of IT roles most difficult to recruit for 2020.
business insights shows no signs of slowing.
Given the rapid enforced digital transformations many
organisations had to undertake due to COVID, and the adherent Project Management and Business Analysis have also remained
security issues with most office-based Australians transitioning to difficult to recruit, with the combination of technical and
working full-time from home for most of the year, demand for both
20% stakeholder management skills being perennially in demand.
Cyber Security and Development staff was high.
2017 2018 2019 2020
15%
10%
5%
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*Data for Digital and Data was combined in pre-2019 versions of the report? Forecasting demand for your organisation over the next 12 months, which IT role type do
you expect to be in greatest demand?
Overall Demand
The combined result of 25% for Digital, Data
and Information Management tells a strong Artificial Intelligence gained a further 5% of
25% story of the market’s appetite for real-time the vote. AI and Machine Learning will play Business Analysis and Project Management each
an increasingly large role in the collection, achieved 10%, a drop from their 15 year averages
insights to gain a competitive advantage.
curation and interpretation of big data. of 15% and 12% respectively. The increased
demand for Digital and Data-driven skills is likely
Security and Applications Development
20% responsible for this reduction in numbers.
had equal results of 13%.
15%
10%
5%
0
pp re
aly ss
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Demand by Sector
20%
15%
10%
5%
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Commercial Public Sector
8 IT RECRUITMENT & RETENTION REPORT 2021Salaries: Show us the Money
? On average, at what percentage rate have your salaries for IT staff increased over the last 12 months?
2.06% 2.43% 1.94% 2.56% 1.54% 1.27% 1.76% 1.79% 1.90% 1.73% 1.85% 1.93% 1.89% 1.59% 1.75% 1.08% 0.74%
Coming in at less than 1%, the reported salary increase
of 0.74% during 2020 is the leanest on record.
The previous record low was 1.54% in 2015.
With cost management being a key priority across public and private
sector organisations due to COVID-19, this result is unsurprising.
Interestingly, the highest ever expected increase was 4.62% in
2008, immediately prior to the GFC. The actuals for 2008 were Expected
lower, although not drastically so, at 3.78%.
Actual
2013 2014 2015 2016 2017 2018 2019 2020 2021
? Compared to 12 months ago, how ? When recruiting IT staff in the last year, have
have the rates that you pay for IT you had to pay more than you initially wanted
contractor staff changed? or expected to, in order to attract the right
candidate?
The ten year average for those expecting to decrease IT contractor
pay rates is 9.3%. The prior year results, pre-COVID, were just 3%. With 47% having had to pay more than expected for IT staff
This jumped to 22% during COVID, and has now eased to 16% in this is slightly above the 15 year average of 45.4%.
December 2020. This metric should be tempered by those intending
no change, which, at 56%, is closely aligned to the ten year average In the history of this report, there are two anomalous years
of 57.6%. in this metric: 2019, where 73% had to pay more, and 2017,
where just 13% had to pay more.
We predict that the in-demand roles shown in this report will
experience no softening in pay rates due to market competitiveness. This indicates that good people will always be in demand,
and will expect to be paid competitively.
16% 2020
Decreased
47% Yes 53% No
56%
The same 2019
73% Yes 27% No
2018
15%
Increased 44% Yes 56% No
2017
13% Yes 87% No
2016
38% Yes 62% No
13%
Don’t use IT
contractors
IT RECRUITMENT & RETENTION REPORT 2021 9Resourcing Strategies: Buy or Build
? Which statement most closely reflects your approach to recruitment?
When recruiting IT people, I am happy if they don’t have all the skills
required, so long as they have the right attitude
71% 19%
Permanent Contract
29%
81%
When recruiting IT people, the most important consideration is that the person
has all the skills to do the job
? What is most important to you in the service you receive from your recruitment partner?
Finding the best people remains
unchanged from its five year average,
They find me taking out the top spot yet again.
29%
the best people Saving time and looking after
contractors have also maintained
their five year average positions.
It is interesting to consider the cost metric.
This is consistently edged out by contractor
care, for which Clicks is proud of its market-
They save me
19%
leading reputation.
a lot of time Reporting also nips at the heels of cost,
suggesting that organisations are seeking
They look after their quality, timely recruitment services that
support their business objectives in equal
contractors proportion to managing costs.
19%
They provide a
18% 15%
They provide me with
low-cost service
accurate reporting
10 IT RECRUITMENT & RETENTION REPORT 2021Resourcing Strategies: Graduates
? Do you have a graduate program for IT staff? ? Have you hired IT graduates in the last 12 months?
It is extremely pleasing to see an upward trajectory of IT We are especially heartened by programs targeting gender diversity
graduate programs. These are a critical means to ensuring and neurodiversity.
a continuous supply of IT talent over the longer term.
Clicks has particular expertise in both of these areas. Contact us to learn
Graduate programs are a lower-cost recruitment option, and more about the commercial advantages of engaging more neurodiverse
provide you with the mechanism to onboard and train talented workers and achieving gender balance in your IT workforce.
young people specifically to meet your organisation’s needs.
2020 2020
40% Yes 60% No 34% Yes 66% No
2019 2019
37% Yes 63% No 32% Yes 68% No
2018 2018
38% Yes 62% No 32% Yes 68% No
2017 2017
32% Yes 68% No 27% Yes 73% No
2016 2016
36% Yes 64% No 27% Yes 73% No
Staff Turnover and Retention
? What has been the approximate % rate of your IT ? Have you made any IT staff redundant
staff turnover over the last 12 months? in the last 12 months?
14%
4% 0% - there has
4% 2020
21%+ been no IT staff
16–20% 66% No 34% Yes
turnover in my
7% organisation.
11–15% 2019
72% No 28% Yes
2018
17%
6–10% 79% No 21% Yes
2017
68% No 32% Yes
2016
54% 73% No 27% Yes
0.1–5%
The majority of turnover is less than 5%. With 54%
of respondents falling into this bracket for 2020, this
compares to a 15 year average of 48.2% for this metric.
IT RECRUITMENT & RETENTION REPORT 2021 11? Do you expect you will make any IT staff ? In the last 12 months have you had
redundant during the next 12 months? employment offers you have made to
candidates rejected?
2020
29%
71% No 29% Yes Yes
2019
78% No 22% Yes
2018
81% No 19% Yes
2017
72% No 28% Yes
2016
71%
79% No 21% Yes No
In a year like no other, it could reasonably be anticipated
that fewer organisations experienced candidates
rejecting job offers. This was borne out in the results,
with a record low of 29% of employers receiving
rejections. This compares to a five year average of 40%.
Employment security was a top priority for many workers
during the uncertainty of COVID-19.
? Which of these special initiatives does your organisation provide to improve staff retention?
These results are largely unchanged from prior year, with flexible working
hours and the ability to work remotely being the clear winners.
This year we are pleased to introduce two new metrics: having a corporate
100% wellness program, and diversity and inclusion initiatives. Both of these rank
highly, with around half of all respondents already having them in place.
2020
2019
80% 2018
2017
2016
60%
40%
20%
N/A N/A N/A N/A N/A N/A N/A N/A
0%
Performance Salary Training/ Flexible Reward & Opportunity Ability to Ability to work Complimentary Corporate Diversity &
related bonuses packaging professional working hours recognition to contribute purchase remotely fruit/soft drinks Wellness Inclusion
development program to community additional etc. Program Initiatives
plans activities annual leave
12 IT RECRUITMENT & RETENTION REPORT 2021? Which of these special initiatives, in your opinion, is most effective in improving staff retention?
As per the previous graph, flexible working hours and the
ability to work remotely are regarded as being the most
effective initiatives to improve staff retention.
18% Flexible working hours
Indeed, these policies are now viewed as critical to any
organisation’s ability to attract high-calibre staff in the future.
Training/professional development, bonuses and salary
packaging are also ranked as high-value offerings.
16% 13% Training / Professional development This aligns with the data that Clicks contractors provide
Ability to work remotely in our annual IT Workforce Insights report.
Contact your Clicks Account Manager to receive a copy.
Salary packaging
Performance related bonuses
11% 10%
6% Ability to purchase additional annual leave
9% Diversity & Inclusion Initiatives
5% 5%
Reward and Recognition programs
Opportunity to contribute to community activities
4%
Corporate Wellness Programs Complimentary fruit, soft drinks etc.
3%
IT Health Check
? In order to assess the health of the IT industry, we asked respondents to indicate how
strongly they agree or disagree with the following five statements: *
We can see that for the next three years demand for The supply of IT talent is aligned to the demand for it
IT services and products will remain strong
The industry has a reputation for delivering value and
IT is meeting business demands and driving business results, on time and on budget
improvement
IT budgets are increasing as a % of company revenue
65% 61% 63% 61% 61% 62% 64% 67% 67% 65%
59%
60%
50%
40%
30%
20%
10%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
* Converting the responses to a percentage, where 100% would mean a totally healthy industry and 0% would be totally
unhealthy, our health rating for the IT industry has continued to increase in comparison to previous years.
IT RECRUITMENT & RETENTION REPORT 2021 13About You and Your Organisation
? What industry sector is your organisation in? ? How many staff do you have responsibility for?
5%
Transport and Resources
7% 5% 2%
7% Banking and 101-500 500+
Utilities Financial Services 9%
6% 0
51-100
2% 12%
Telco Education
3%
Retail /
Manufacturing
8%
Other
12% 35%
IT (vendor/ 11-50
software)
35% 43%
9% Public Sector 1-10
Health
? How long have you been working at your ? Do you consider yourself:
current employer?
1%
Baby Boomer
7% (born 1946–1964) 36%
Less than 1
Gen X
year 20%
25% (born 1965–1976)
More than 10 Gen Z
years (born 1998–2010)
12% 35%
7–10 years 1–3 years
43%
21% Gen Y
4–6 years
(born 1977–1997)
14 IT RECRUITMENT & RETENTION REPORT 2021Did you find this report useful? The quality of our reports improve with every hiring manager who contributes. If you hire contract or permanent IT staff, your contribution is very important to us and all readers of this report. If you would like to become a contributor, please contact Sam Micich, General Manager, Operations on 03 9963 4802 or sam.micich@clicks.com.au to ensure you receive your invitation to our next survey. Clicks’ Services Contract Recruitment Permanent Recruitment Clicks places an IT professional into a new job every Our team has an average of 12 years’ IT recruitment hour of every day. We have 25 years’ experience in the experience. For employers this means a deep IT contracting market, and over 80 Preferred Supplier understanding of your requirements and an established Agreements with some of Australia’s most respected network of high calibre talent. For job seekers, our market employers. Whether you’re looking for work or looking for knowledge, relationships and support will open the right staff, we’re here to help you. doors for you. Campaign Recruitment Master Vendor We work with high growth organisations who need to grow For clients with larger-scale recruitment requirements, their team quickly in response to product development Clicks has a proven Master Vendor model that offers a demands or customer growth. Our campaign service single point of release for all roles, and the management mobilises a dedicated team to undertake deep market of all downstream suppliers. Clicks is also responsible penetrative search activity to deliver a volume of resources for managing compliance, job allocation, performance in rapid time. management, payroll, quality, and customer satisfaction. Market Reports Candidate Capability Testing and For over 15 years Clicks has been conducting critical Benchmarking research to assist employers in attracting the best talent. Regularly surveying over 500 of Australia’s leading Clicks has partnered with leading assessment organisations employers of IT professionals, we produce a range of to improve the quality of information you use to make easy-to-read reports to enable better hiring decisions. Our hiring decisions, establish clear capability benchmarks for reports cover market conditions, business confidence, hiring your team, reduce time spent interviewing inappropriate intentions, emerging technologies, gender diversity, salary candidates, and improve the quality of candidates you hire. surveys and more. IT Professional Services Contingent Workforce Engagement Clicks can provide the full spectrum of IT professional Our systems guarantee that our contractors receive services via our sister company, INDEX Consultants. INDEX accurate pays on time every time. Clicks utilises robust specialises in delivering transformational projects and and scalable systems for online timesheeting, payroll outcomes. They leverage a network of trusted consultants management and reporting/analytics services. 95% of our and technology partners to ensure that you work with contractors give us the highest ‘trust’ rating possible for subject matter experts on every engagement. INDEX our payroll management capability. We can also seamlessly Consultants’ credibility, knowledge, experience and service interface with your systems to ensure hassle free data focus make them the preferred partner for Australia’s largest delivery and reporting. government and commercial organisations.
Melbourne Sydney Brisbane Canberra
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Melbourne VIC 3000 Sydney NSW 2000 Brisbane QLD 4000 Canberra ACT 2601
03 9963 4888 | vic@clicks.com.au 02 9200 4444 | nsw@clicks.com.au 07 3027 2555 | qld@clicks.com.au 02 6202 7700 | act@clicks.com.auYou can also read
