1. RCSA Web Survey Round 35 – August 2010

2. Executive Summary Summary  Both business confidence and expectations of growth have eased since April. Growth has dropped from its historic high 1 point to 72.5 while members expect next quarter’s business volumes to drop to 7.9% compared with last round’s level of 8.9%.  The number of clients interacted with in the last 3 months has increased by 90% mainly due to a large increase in the major companies.  The number of applicants for positions continues to drop, it is becoming harder to find appropriate candidates, there is a small decline in the level of skills available and a drop in appropriate attitudes.  The staff levels have increased for second quarter in a row from 3.8% to 5.6%. At the same time, staff turnover has also increased to 31% pa from 26%.  For the third survey in a row, there has been a increase in full-time placements (of around 8%) and additionally an increase of on-hired employment & contractors (of 18%). Part-time employment has dropped markedly.  As a proportion of total placements, permanent placements has dropped by 6% to 11% while on-hired and contractor placements has increased 19% to 87%  At the same time, the proportion of revenue from on-hired employment has decreased by 11% to 45% while that for recruitment services has stayed the same at 37%.  On-hired employees and permanent recruitment provide around two thirds of revenue while contracting adds another 10%

3. Executive Summary Summary – on-hire and contract employment  While 35% of companies have no on-hired or contract employees, the median company has 40 on its books and fills 75 assignments per year  56% of on-hire and contract employees are paid above the award, 29% are male and 5% are visa workers  Have a median age of 30 years  Half are tertiary qualified while the most of the rest have completed secondary school  Prior to becoming engaged as an on-hire or contract employee, a third were employed casually, a quarter permanently and 14% were on fixed terms  In nearly half of assignments the conditions they work under are consistent with client employees. Only 13% convert to permanent employment and only 10% are offered formal training while in a member company  On average they work 36 hours per week  The median on-hired and contract employee has assignments lasting 2 to 3 months although the most frequent (24%) last less than a month  Respondents believe the main reasons people choose on-hired and contract employment is for work flexibly and to gain additional income (83%), to get access to a permanent role (74%), to find a permanent job (66%) and to gain work experience(64%). Having no other choice applies almost half the time.  Nearly all respondent believe clients choose on-hired services to absorb demand peaks, 89% to cover short term employee leave and 70% to select potential hires

4. Process  Web survey oE-mail business heads in both NZ and Australia o153 responses oData collection began mid-July 2010 and was completed 12 August 2010

5. Demographics of sample There were 7 companies with more than $100m turnover. The proportion remained the same at 5%.

6. Demographics of sample The median sized company has six staff. Only 6% of companies are single person while 5% have more than 100 employees.

7. The majority of employees are involved in operations (58%) followed by administration and management

8. Demographics of sample Just over three quarters of organisations are single company, while around two thirds are single branch with single offices

9. Demographics of sample 18% of organisations are not for profit. The median size of not-for- profit organisations is the same as for profit with the number internal employees being in the range of 6 to 10. For profit 82% Not for profit 18% Profit status

10. Demographics of sample 78% have a formal management system No 22% Yes 78% Formal management system (such as QA, OHS)

11. Demographics of sample The total annual revenue of respondent companies is stable at $6.7 billion. Total Annual revenue $m Total Australia=$6.3b Approx 95% of revenue

12. Both business confidence and expectations of growth have eased since April. Growth has dropped from its historic high 1 point to 72.5 while members expect next quarter’s business volumes to drop to 7.9% compared with last round’s level of 8.9%. Scale: 0=strongly disagree 50=neutral 100=strongly agree Differences None Location differences: There are no substantial location differences

13. The number of clients interacted with in the last 3 months has increased by 90% mainly due to a large increase in the major companies. August 2010 April 2010

14. The number of applicants for positions continues to drop, it is becoming harder to find appropriate candidates, there is a small decline in the level of skills available and a drop in appropriate attitudes. Scale: 0=strongly disagree 50=neutral 100=strongly agree Location differences There are no substantial location differences

15. +7% +6% -9% +9% -10% +9% -9%

16. The staff levels have increased for second quarter in a row from 3.8% to 5.6%. At the same time, staff turnover has also increased to 31% pa from 26%. Location differences There are no substantial location differences

17. Staff placed and on-hired workers For the third survey in a row, there has been a increase in full-time placements (of around 8%) and additionally an increase of on-hired employment & contractors (of 18%). Part-time employment has dropped markedly. August 2010 Note: variability may arise because of a few large numbers – this is a problem of small data sets April 2010

18. As a proportion of total placements, permanent placements has dropped by 6% to 11% while on-hired and contractor placements has increased 19% to 87%

19. At the same time, the proportion of revenue from on-hired employment has decreased by 11% to 45% while that for recruitment services has stayed the same at 37%. Location differences The revenue from on-hired employees and contractors placed is highest in SA and WA and lowest in NZ The revenue from recruitment services is lowest in SA and WA and highest in NZ

20. On-hired employees and permanent recruitment provide around two thirds of revenue while contracting adds another 10%

21. On-hire employees and contractors

22. While 35% of companies have no on-hired or contract employees, the median company has 40 on its books and fills 75 assignments per year.

23. 56% are paid above the award, 29% are male and 5% are visa workers

24. They have a median age of 30 years

25. Half are tertiary qualified while the most of the rest have completed secondary school

26. Prior to becoming engaged as an on-hire or contract employee, a third were employed casually, a quarter permanently and 14% were on fixed terms.

27. In nearly half of assignments the conditions they work under are consistent with client employees. Only 13% convert to permanent employment and only 10% are offered formal training while in a member company

28. On average they work 36 hours per week.

29. The median on-hired and contract employee has assignments lasting 2 to 3 months although the most frequent (24%) last less than a month.

30. Respondents believe the main reasons people choose on-hired and contract employment is for work flexibly and to gain additional income (83%), to get access to a permanent role (74%), to find a permanent job (66%) and to gain work experience(64%). Having no other choice applies almost half the time.

31. Nearly all respondent believe clients choose on-hired services to absorb demand peaks, 89% to cover short term employee leave and 70% to select potential hires