The property market is more competitive than ever and it takes an astute development team to unlock commercially feasible projects. Retention should be high on your agenda, but what if you find yourself with a gap to fill? How easy is it to discover exceptional talent?
Candidates with a development management background continue to be in high demand, especially in Sydney. Most have had some experience in residential, which has shown resilience against other sectors over the medium term.
The market is extremely candidate-short and has been somewhat saturated with generic opportunities that focus on medium to high-density residential. Opportunities that offer a step away from this continue to be in greater demand and generate more interest. Candidates have expressed that their main focus is to move to businesses with longer-term job security, as we are propelled into a new phase of the property cycle. Therefore, a move into a more stable sector is definitely appealing.
The vast majority of roles are in the middle market. This continues to be the hardest level to recruit for, as it is easier to attract more senior talent but financial constraints mean that many businesses are settling for inexperienced recruits. Engineering or architectural backgrounds are revered by hiring managers for their insight and added value.
Sydney is the epicentre for DM opportunities in Australia with lower job growth in other states. As a result, there are candidates open to relocation. The industry favours those with a strong network and experience in dealing with local councils.
In an employee’s market, some candidates are taking advantage of the shortage of quality talent and requesting excessive raises. Equally, this becomes problematic when recruiting as candidates are expecting a risk premium and when the transaction becomes about compensation this increases susceptibility to a counter offer.
Retention
Overall, the difficulty in attracting talent means that the supply generally outweighs demand, consequently, remuneration has been rising steadily year-on-year. Unfortunately, this means that all too often people can be lured by the promise of a high financial return to leave. This can be especially problematic for large businesses with salary bands and has led to more creative bonus structures coming to the market. While longer-term incentives are usually reserved for more senior management, these could make a compelling proposition to stay in the medium term. At least one company is offering a quarterly bonus.
Development candidates want to be involved in prestigious and interesting projects. In this environment, many become frustrated and agitated when their labour doesn’t bear fruit - unfortunately, this will be cyclical in a DM career. As a manager keeping your team engaged is very important, encouraging comradery and team spirit not just within your development team but the wider business is intrinsic to success.
Salary Guide
Adam Clarke is an established recruitment professional with a wealth of experience across the property and development sectors. Graduating with a RICS accredited MA in Management and Property, he has utilised his educational background and experience overseas in the Australian property market, resulting in an extensive network of contacts across the Asia Pacific. Adam oversees the mid to senior level Executive Search in property development and investment at Quinton Anthony.
Quinton Anthony Business Consulting also offer more in-depth HR project consulting that responds to specific workplace challenges in areas including performance management, industrial relations, workplace planning, policies and procedures and employee engagement. To find out more, please email Managing Partner, Sophie Schaedel at sophie.schaedel@quintonanthony.com.