014

GLOBAL TREND REPORT PROJECT AND CHANGE

H1 | JAN-JUN

CANDIDATES WITH FORMAL QUALIFICATIONS MUCH IN DEMAND

In line with our commitment to keep Project & Change professionals up to date with
employment and recruitment trends, at the start of 2014 Morgan McKinley conducted
an international survey of its consultants in five markets. The market has picked up quite
strongly in the United Kingdom and Ireland, where we may see increased competition
for talent in 2014. This picture is not quite so positive in APAC and the Middle East but
we do expect some improvement as the year progresses.

Demand is high for candidates with formal

training and qualifications in a project
methodology such as Prince 2 or Lean Sigma

Salaries will increase for Project & Change

professionals whose skills and experience
address key pressure points such as new
regulatory and compliance standards

Many projects are being initiated in

customer experience, data management
and operational efficiency

The contract market is strong, especially where

hiring organisations need specific skill sets. In
Project & Change movement between contract
and permanent roles can be quite common

Companies in Singapore and the UAE may

have difficulty sourcing local Project &
Change professionals who fully meet
job requirements

QUICK LINKS
AUSTRALIA............................................... 2
IRELAND...................................................4
SINGAPORE............................................. 6
UNITED ARAB EMIRATES ..................... 8
UNITED KINGDOM................................ 9

Competition for the most

interesting opportunities in wellregarded organisations can be fierce.

AUSTRALIA

ORGANISATIONS RESHAPING THEIR OPERATING MODELS

Despite a relatively pessimistic outlook for
Australia in 2014, the Projects & Change agenda
remains a strong focus, as businesses look to
adapt and become more agile. With economists
predicting growth below the long term average
it is essential for companies to remain competitive,
in particular by reshaping operating models and
by improving customer experience. Transformation
and remodelling projects are the main growth
area, supported by the continued focus on
regulatory and compliance requirements
and customer experience.
We had expected resource demand for regulatory
programmes to ease early in 2014 (as delivery
deadlines approached) but this demand has
shown no sign of abating. FATCA, for example,
is becoming GATCA (a global approach to tax
compliance) while Austrac is cracking down
harder on money laundering. In addition,

in most large organisations, there is significant

work required to upgrade core IT systems so that
they deliver an integrated view of the customer
and support new revenue capture opportunities
such as via mobile devices.
That said, recruitment freezes imposed from
higher up organisations are depressing the job
market. Projects have to compete hard for funding
and this creates a knock-on effect with some
organisations struggling to get full-time equivalent
(FTE) approval for permanent and sometimes
even contract hires. We often see that this results
in more costly, and potentially more risky, workarounds with the engagement of consultancies
in order to meet key deliverables.

benchmark their current capabilities. There is

also scope for cross-fertilisation of ideas taken
from Commerce & Industry. Unlike other
disciplines, candidates are more likely to move
between permanent and contract roles and
between organisations or even sectors to follow
the size and type of projects that interest them.
In most areas of Project & Change there is an
adequate supply of local talent but there are a
few pressure points where organisations have
been required to look abroad. In particular, we
have looked to Europe and the United States to
source talent and project management experience
in Lean and Six Sigma or within the investment
banking environment.

In the Project & Change space most organisations,

even those with large internal talent pools, are
keen to look at external candidates in order to

OUTLOOK
There is a requirement for business models to
adapt and as the year moves on we expect more
organisations to look for the right talent to secure
their future success. Candidates looking to step
up to their next role must be able to demonstrate
their capability in a particular field, coupled with
a track record of delivery. Evidence of leadership
skills and effective stakeholder engagement are
essential when demonstrated alongside technical
ability. Competition for the most interesting
opportunities in well-regarded organisations
can be fierce. Line managers are often looking
to meet very specific requirements and are
reluctant to be flexible on industry experience,
specific project expertise or methodologies.

Project success typically depends on building

strong relationships with the business to drive
commercial returns. As the focus on efficiency
continues there may be a more rigorous approach
to measuring project success.

SALARIES & BENEFITS

Hiring organisations may encounter difficulties in

securing the right talent to meet specific demands.
Industry-wide initiatives mean competitors are
undertaking very similar programmes of work and
within the same timeframes. They are advised to
confirm budgets and headcount requirements
against competing organisational priorities as early
as possible or they will miss out on the highest
quality candidates.

Salaries will continue to be flat for permanent

positions in this space, although a premium may
still be paid for key skills in high demand such
as Six Sigma and Lean Sigma. We note that this
is becoming more challenging for larger players
with carded rates in place. They will need to make
a very strong business case to exceed set budgets.
On the contracting side we have seen a trend
towards fixed-term contracts which we expect
to continue in 2014.

IRELAND

Irish companies are keen not to

miss out on hires that will bring
new ideas into the organisation.

MORE PROJECTS BEING INITIATED

In Ireland we were pleasantly surprised by the
number of new roles being posted, particularly
in Financial Services. The situation showed an
improvement in the second half of 2013 with
organisations recruiting new headcount, in
particular for transformation and remodelling
projects, customer experience projects, and
projects related to compliance and regulatory
issues. We expect this trend to continue into 2014
with the return of greater economic confidence.
Currently there is adequate supply of local talent
to meet the demand, but we may soon reach a
point where companies have to seek talent abroad,
especially in Financial Services and IT. The UK,
and in particular London, is the usual source for
overseas talent in this space.

With the positive turn in the global economy,

Irish companies are keen not to miss out on hires
that will bring new ideas into the organisation.
Candidates with a formal qualification in a project
methodology such as Prince 2, Six Sigma and
Lean Sigma combined with ERP experience are
particularly sought after, as are professionals with
an accounting qualification.
The contract market is especially buoyant. Many
of our clients cannot predict the longevity of
transformation and implementation projects so
they are hiring on a contract basis. These contracts
tend to be quite lengthy however and some will go
permanent as companies see the long-term value
that these contractors can offer to the business,
comments a Dublin-based Project & Change
specialist with Morgan McKinley.

OUTLOOK
Our outlook for 2014 is positive. Candidates
will come forward as more and more tempting
opportunities arise. Our advice to professionals
who are early in their career is to look for projects
internally that will allow them to improve their
skills, and train in a project methodology. This will
demonstrate that they are serious about making
progress in this area. Specialists in accounting
projects need to stay on top of the changes coming
into force, for example the new IFRS 9 relating to
derivatives and IFRS 11 relating to joint operations,
and the application of IFRS standards to SMEs.

SALARIES & BENEFITS

Hiring organisations should take into account

the growing demand. If they see a strong
candidate they will need to avoid protracted
interview and hiring processes and be competitive
in their salary offers.

Base salaries and daily rates for contractors will

certainly rise in the course of 2014 as demand
increases. We have noticed that completion
bonuses are becoming more common.

Many P&C professionals who would

prefer a full-time position are
currently working as contractors.

SINGAPORE

LACK OF LOCAL TALENT BUT RELUCTANCE TO RECRUIT OVERSEAS

In Singapore the market for permanent hires in
the Project & Change space remained stable in the
closing months of 2013 while we saw increased
buoyancy in contracting. Transformation and
remodelling, IT system enhancements, customer
experience, new products to market and regulatory
and compliance projects have been the main
growth areas in Project & Change over the past
six months and will remain so in 2014. However,
we also witnessed the offshoring of some business
functions to lower cost countries such as India, the
Philippines, Malaysia and Vietnam.
While there is not enough local talent to support
ongoing hires, paradoxically companies in
Singapore are often reluctant to hire from offshore,
except possibly in the case of very senior hires, who

are mostly sought from other APAC regions and

the United Kingdom.
The buoyancy of contracting is largely explained
by the immaturity of the Project & Change market
space in Singapore. The general consensus is that
many Project & Change contract roles are being
filled by people who would prefer a full-time
position or who are returning to the country.
In certain areas contracting is more frequent,
because there are specific skill requirements.
But it is surprising that even in such cases,
companies are still not paying a premium to
hire a daily or monthly rate contractor; rather,
it is a pro-rated monthly or annual salary, says
one of our Singapore-based Project & Change
recruitment consultants.

OUTLOOK
The overall economic situation is positive.
According to estimates from the Ministry of Trade
and Industry the Singapore economy grew by
4.4% in the fourth quarter of 2013 and although
this represents a fall on the same quarter in 2012,
economists are confident that the economy will
benefit from the current recovery in the United
States, Europe and China. Singapore remains an
attractive destination for overseas talent because
of the lifestyle and growth benefits.
Directions in Project & Change are being shaped
not in Singapore but by global changes while the
need for cost efficiency will inevitably bring more
offshoring of projects to lower cost countries.
We expect to see demand for industry-specific
professionals in specialist roles such as business
analysts, programme and portfolio managers,
change managers, and project managers.

From a candidate perspective, the majority of

projects based around cost efficiencies require
a very specific skill set for each role. Employers
will not engage candidates who are only an 80%
fit. However, employers may find that there is a
shortage of locally based 10/10 candidates.
Nevertheless there are grounds for optimism as we
expect to see positions offered that incorporate IT
transformations and global system roll-outs from
Singapore. Many P&C initiatives are now funded
and approved by IT because most of them have a
strong IT element, such as system enhancements
and upgrades, or outsourcing. Only projects that
are specifically finance-related come under the
CFO now, says our consultant.

SALARIES & BENEFITS

It is very difficult to predict overall trends in
salary levels. In the contracting area, if the
economic climate improves there will necessarily
be an upward pressure on rates with contractors
commanding premiums in niche areas where there
is a skills shortage.

Organisations are eager to recruit P&C

professionals with Lean Sigma experience.

UNITED ARAB
EMIRATES

SHORTAGE OF LOCAL TALENT

WITH NO SOLUTION IN SIGHT
In the United Arab Emirates many organisations
are currently implementing change management
programmes and in the latter half of 2013 we
saw a continuation of high levels of demand for
new headcount. However there is a shortage of
locally based talent to drive reorganisation and
globalisation projects; moreover, there has been
insufficient movement in recruitment budgets
to attract people in this space from overseas
(typically Europe or the USA).
The main growth areas are currently regulatory
and compliance, customer experience and service,
and data management. We expect to see an
increased focus on transformation and business
remodelling projects in 2014.

OUTLOOK
The outlook for 2014 is overall neutral but it should
prove positive for candidates with formal project
management qualifications such as Prince 2, Six
Sigma, Lean Sigma etc., and with an MBA or similar
post-graduate qualification. Fluency in more than
one language is obviously also a big plus in this
cosmopolitan environment. Hiring organisations
are eager to recruit Project & Change professionals
with experience in Lean Sigma, but such people
are thin on the ground, says one of our consultants
in the UAE.

SALARIES & BENEFITS

We do not anticipate significant movement in
salary levels in 2014. Employers tend to focus on
basic salary rather than annual gross package.
Some overseas candidates may therefore be
discouraged by the rising cost of living, in
particular housing costs.

Candidates in the contract market should

keep a sharp eye out because the best
opportunities will be snapped up quickly.

UNITED
KINGDOM

A LOT OF MOVEMENT BETWEEN CONTRACT AND PERMANENT ROLES

The demand for Project & Change professionals
continues to increase and one of the main drivers
of this demand remains compliance and regulatory
issues in the aftermath of the financial crisis.
For example, provisions need to be made to cover
Dodd-Frank, Basel III, the Markets in Financial
Instruments Directive (MiFID), the European
Banking Authority governance guidelines, Financial
Stability Board principles, the European Market
Infrastructure Regulation, the Foreign Account
Tax Compliance (FATCA) and the Financial
Transaction Tax Act. Organisational changes and
IT implementations, in particular to improve

operational efficiency, account for further demand

for Project & Change professionals. Those with
project-relevant qualifications such as Prince
2, Six Sigma and Lean Sigma, particularly when
combined with an accounting qualification, are
well placed to find satisfying roles. Candidates who
can demonstrate significant experience on relevant
successful projects are also in demand.

Tight deadlines combined with cost constraints

require an elastic workforce, comments one
of our London-based P&C specialists. We see
companies letting permanent staff go, replacing
them with contractors, and at the same time we
see permanent staff, perhaps frustrated because
they have seen no salary improvement, leaving for
contract positions, he adds.

Banks and financial services institutions are

working to tight timeframes to meet new
regulatory demands, so employment opportunities
tend to take the form of contract or interim
hires. The contract market is therefore buoyant.

However, while the market is positive at a macro

level, many companies are still cost-conscious
so salary levels and daily contracting fees have in
general not increased.

OUTLOOK
External regulatory and compliance changes
will continue to drive strong demand well into
2015. The global initiatives that are impacting
organisations take time and resources. We will
also see transformation and remodelling projects
as well as a focus on data management.
Employers will be looking for candidates who
can demonstrate clear application of their skill
set. For example, if you have led a programme
or project involving change you need to able to
demonstrate your leadership capacity detailing
the situation, task , actions and results or

outcomes. Above all, hiring organisations will

want you to demonstrate that you can hit the
ground running, so P&C professionals who are
focused on regulatory and compliance must keep
abreast of new requirements and the timelines
of change. Candidates in the contract market
should keep a sharp eye out because the best
opportunities will be snapped up quickly. At
Morgan McKinley we have responded to this
situation by providing blogs, webinars, panel
discussions and other innovative communication
channels to keep candidates up-to-date, says a
London-based consultant.

SALARIES & BENEFITS

Increased demand will put a squeeze on availability
of candidates and this will drive salaries higher for
key skill sets. Given that we still are emerging from
a cost-conscious market and many organisations
have pay freezes in place, this will pose a challenge
for employers. We dont expect significant changes
to performance-related pay.

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GLOBAL TREND REPORT PROJECT AND CHANGE

A MORGAN McKINLEY GROUP COMPANY