DEFENCE INDUSTRY INSIGHTS. Second Edition Salaries, Jobs & Sector Overviews.

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1 DEFENCE INDUSTRY INSIGHTS Second Edition Salaries, Jobs & Sector Overviews Published: May 2017

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3 2 WHY A DEFENCE INDUSTRY INSIGHT? 4 INTRODUCTION 5 COMPILING A DEFENCE INDUSTRY REPORT 6 SECTOR OVERVIEWS 10 CURRENT PROJECTS 11 THE WORKFORCE CHALLENGE 12 DEFENCE SECTOR JOB VACANCY INDEX 15 STATE OVERVIEWS AND SALARY ANALYSIS 39 SKILLS IN DEMAND 40 SKILLS TRENDS 41 DEFENCE INDUSTRY WORKFORCE SURVEY 50 CONTRIBUTING AUTHORS 51 APPENDIX 1

4 WHY A DEFENCE INDUSTRY INSIGHT? Defence Industry will need to grow significantly over the next decade to meet the demand of a once-in-a-generation recapitalisation of the equipment and systems of the Australian Defence Force (ADF). With the current supply of suitable workers only just meeting demand and a lack of junior workers available, careful planning, innovation, and creativity will be needed to meet industry requirements. Thank you to the individuals and organisations consulted as part of the preparation of this report. Your willingness to share the challenges your business is facing, the opportunities you see ahead and general commentary cements the belief that we are all in the same boat, heading into uncharted territory. At Kinexus, we see this time as an opportunity not just for the defence enterprise, but the nation as a whole to build the skills and experiences that will serve us well in the information age. As with everything we do at Kinexus, we hope this paper enhances your capacity to plan and make better decisions. The current environment simultaneously creates great risks, rewards and opportunities that will impact the prosperity and security of generations of Australians to come. Robert Kremer Director & Defence Sector Lead 2

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6 INTRODUCTION The Defence Sector is undergoing significant change. The concurrence of significant growth in the procurement budget, structural reform in the public sector, and new market entrants all lead to opportunities as well as challenges. There is a growing realisation that there will not be enough workers with the required skills and experience to support this change, and organisations are searching for ways to rise to the challenge. Kinexus second edition Defence Industry Insights provides an update on the state of workforce supply and demand by sector and location, as well as providing hard data on the status of remuneration, expectations and composition of the Defence Sector workforce. In addition to this, the first ever Defence Sector jobs index sheds light on the demand for workers as seen through advertised job vacancies. Trends over the last six months include the continuance of industry roadshows and engagement initiatives by the big end of industry and a government led focus on innovation and collaboration. This work will need to be sustained over the long term for the sector to grow efficiently and make the most of the opportunities on offer.

7 COMPILING A DEFENCE INDUSTRY REPORT The Kinexus team has over 30,000 conversations with individuals working in the Defence Sector every year. This contact creates the ability to collate industry insights and intel in order to form an overall picture of what is occurring in the sector. The salary and demographics data displayed here represents the culmination of an in-depth analysis and review of market data. Our internet based survey was sent to 25,931 candidates and Kinexus contacts within defence organisations. Our thanks go to the many organisations and individuals across all major Australian business centres that have contributed market information and data for this project. Salary figures included are provided as a median guideline. Individual salaries will vary and should take into account the exact requirements of the specific role. The salaries shown in the tables of the report are based on permanent full time employment (or equivalent) only and include statutory superannuation. All salaries are shown in Australian Dollars. The Kinexus Defence Sector Job Vacancy Index has been compiled in partnership with HRO2 Research Pty Ltd. The data used for the Kinexus Defence Jobs Vacancies Index is drawn from a thorough scan of Australia s largest Defence Industry employer s career portals and job boards. The data for the Index is subjected to a rigorous deduplication process both within sites and across different sources. The data is expressed as an index by reference to a baseline of 100% that was set for the period of S Any movement in subsequent periods from the data collected during the baseline period is presented as a percentage change from this baseline value. Data supplied under Copyright. Image credit: Australian Government Department of Defence. DEFINITIONS Median: The salary level which 50% of salaries fall below and 50% are above. Salary Package: Full time equivalent annual base salary plus superannuation and monetary bonus components (before tax). 5

8 SECTOR OVERVIEWS NAVAL Acquisition skills are highly sort after in Canberra for the major acquisition projects SEA 5000, SEA 1000 and SEA 1180, particularly now that their respective project management offices are all ramping up. Hiring has commenced for SEA 1000, with the platform designer, combat systems integrator and the Commonwealth s technical office all predicted to grow throughout 2017 in SA, ACT and France. The Collins submarine program is also expected to see some growth with major upgrades underway and ongoing analysis to extend the life of type. As a result of new projects being established, there is a high demand for individuals with front end project experience, especially commercial skill sets in contracting and procurement. Demand is also on the rise for systems engineers and Integrated Logistics Support (ILS) professionals. Ship production skills are coming onto the market in SA as Air Warfare Destroyer (AWD) production winds back. Talent is also going to be needed across a number of other projects within the next 12 months. This includes the delivery and contract to operate, crew and maintain the Multi-role Aviation Training Vessel (MATV). Projects that will also require additional workers over the period include the Bay Class In-Service Support (ISS), Pacific Patrol Boats (PPBR) build, SEA 1654, Choules upgrades, construction of two additional Cape Class Patrol Boats (CCPB), ANZAC upgrades and evolution of the Maritime Intelligence Surveillance Reconnaissance, Electronic Warfare (MISREW). Demand continues to be high for sustainment skill sets in NSW. The commencement of DDG TSP, and high workloads across other major platforms, including upgrades to the Mine Hunter Coastal (MHC) class in the second quarter of 2017, will ensure that the existing workforce will be fully utilised. NT will also experience some churn in the sustainment space due to the Armidale Class Control Boats In-Service Support (ACPB ISS) contract changing hands mid-year. 6

9 AIR The current and imminent introduction into service of the P-8, C-27J, Romeos, Growlers and new Unmanned Aerial System (UAS) in the Royal Australian Air Force (RAAF) and Navy will provide opportunities and challenges for defence and industry. New workforces are being established to support these new platforms in Adelaide and Sydney over the next six months. Meanwhile, preparations for the introduction of the F-35 in 2019 continue, with increasing investment and activity to develop the required workforce capability and infrastructure upgrades. Tertiary institutions nationwide are looking to boost their capabilities in the autonomous systems domain, and are hoping to benefit from state and Federal Government financial assistance packages. The training landscape is undergoing change, with the Helicopter Aircraft Training System (HATS) project, the introduction of the PC-21 and relocation of associated training facilities. The way that defence manages maintenance and engineering will change with the recent adoption of the Defence Aviation Safety Regulations (DASR). This change will mean that the maintenance and training playing field will be opened up to new organisations as the new regulations are based on a civil standard that a wider range of companies comply with. This also means that existing defence players will have to adjust to a new way of doing business. Tertiary institutions nationwide are looking to boost their capabilities in the autonomous systems domain

10 LAND LAND 400 is the project most widely talked about, with a down select decision expected before the end of It is likely that the majority of the engineering work for this program will be done in Melbourne or Adelaide, depending on who the successful tenderer is, although it is now understood that both contenders will base their production workforces in Melbourne. The roll out of LAND 121 Overlander continues and various munitions and weapons systems production and support contracts are driving demand for explosives ordinance skills. Command, Control, Communications, Computers, and Intelligence (C4I) skills are still in strong demand, especially in Brisbane and Canberra. Plan Beersheba and the restructure of Army and its integration with Navy s new amphibious capability will not slow down anytime soon. Respective brigades have commenced trials with the new Landing Helicopter Docks (LHDs) and there is a focus on the development of new doctrine to realise the full capability of these new platforms. 8

11 ICT A number of large infrastructure projects, notably Centralised Processing, Next Gen Desktop and JP 2047 are moving into sustainment phase. Even so, the Chief Information Officer Group (CIOG) has had its budget more than doubled this year, with a planned increase of a further 8% next financial year. They are also estimating a gap of some 800 workers over the next few years, with the combined Australian Public Service (APS) and industry workforces expected to fall short of demand. Steps are being taken to distribute the defence ICT workforce out of the ACT, with the strategic industry partners continuing to develop their below the line workforces in Melbourne, Adelaide and Brisbane. Driven by new procurement programs, demands for design and integration skills are also starting to increase across Australia. Defence will also change the way it engages with ICT suppliers this year with the Applications Managed Service Provider Arrangement (AMSPA) panel being replaced by the ICT Panel Arrangement (ICTPA) and a re-tendering of the CIOG Panel.

12 CURRENT PROJECTS NT WA AIR 5428 ANZAC PSR ASMD CCSM CCPB PPBR SEA 1180 WAMA ACPB ISS USMC/USCG Support QLD AIR 87ph2 AIR 5402 AIR 5431/OneSky AIR 5349ph3 AIR 9000 Bay Class ISS CCPB Hydrographic ISS LAND 17 LAND 200 LAND 400 JP 2072 SA AIR 7000ph2B CCSM JORN SEA 1000 SEA 1180 SEA 4000 SEA 5000 VIC AIR 5431/OneSky AIR 5428 SEA 1442 JP 2008ph4 MMC LAND 17 LAND 19 LAND 75ph3 LAND 121 LAND 125 LAND 155 LAND 400 ACT NSW AIR 5376ph2 AIR 5431/OneSky FFG Enterprise HATS HMAS Choules ISSC JSF LHD TISSC/CSC MHC ISS SEA 1654 SEA 4000 Centralised Processing D1 JP 2047 LAND 2110 LAND 134 One Defence 10

13 THE WORKFORCE CHALLENGE At the Defence + Industry conference in 2016, one of the two main discernible themes was an awareness amongst senior leadership in the Defence Sector of the impending skills shortage. As this awareness becomes more widespread and industry starts the transition from pursue, bid and win activities to project delivery activities, people are now looking for solutions to this problem. As such, there are two main components that the sector should focus on in order to tackle this challenge. 1. MAKING THE MOST OF EXISTING PEOPLE This Includes: Avoidance of competitive, uncoordinated and inefficient use of workforce Effective leadership in organisations Skill development Talent retention Development of tier 2 capability (SME development) 2. GROWING THE TALENT POOL This Includes: STEM in schools Community engagement to promote Defence Sector careers Creating on-ramps into the Defence Sector from adjacent industries, academia and ADF De-risking the transition of workers from adjacent industries Reconnecting with ex Defence Sector workers Accessing international talent Reducing the impact of security clearance lead times for new entrants 11

14 DEFENCE SECTOR JOB VACANCY INDEX Kinexus has compiled the first ever Defence Sector Jobs Vacancy Index. This data gives us an understanding of employment demand and can be paired with other data to provide planners with insights that were previously unobtainable. The below results show all of the hallmarks of an industry in expansion, with rising amounts of vacancies being advertised and higher rates of employment. All organisations in the Defence Sector should take these trends into account as they plan for the future. DEFENCE INDUSTRY JOB INDEX FOR EACH JOB TYPE This graph represents the current proportion of Defence Industry jobs being advertised for each job type: temporary and contract, and permanent. Temporary and Contract 21% Results: Permanent 79% Temporary and contract related vacancies account for 21% of total vacancies. This has increased from 15% over the last 12 months. 12

15 DEFENCE INDUSTRY JOB INDEX CHANGES FOR EACH STATE Defence Industry Job Vacancy Index changes for each state. This graph represents the changes in the number of Defence Industry jobs being advertised over the last 12 months for each state. Note: S1 refers to January - June and S2 refers to July - December. Job Index 450% 400% 350% 300% 250% 200% ACT Western Australia Northern Territory New South Wales 150% 100% 50% 0% Victoria South Australia Queensland S S S Results: Vacancy advertising has increased over the last 12 months in all states and territories with the exception of SA and QLD The ACT experienced the strongest growth, followed by WA and the NT NSW and VIC experienced modest growth QLD and SA experienced modest contractions Comments New acquisition projects and the effects of the First Principals Review have led to a busy employment market in the ACT. NSW, NT and WA have all experienced strong demand for sustainment skill sets, contributing to an increase in vacancies in the area. Vacancy contractions in QLD and SA are likely due to recruitment tapering off for a few large projects. 13

16 DEFENCE INDUSTRY JOB INDEX CHANGES OVER TIME This graph represents the average change in Defence Industry advertising across the job types permanent and temporary and contract over the 12 months from July 2015 to December Note: S1 refers to January - June and S2 refers to July - December. 300% 250% Job Index 200% 150% 100% 50% Temporary and Contract Total Permanent 0% S S S Results: Over the last 12 months, advertising for Defence Sector positions has increased by 74.5% Advertising for temporary and contract vacancies has increased at double the rate of permanent vacancies Comments There has been a large jump in advertising levels over the last 12 months, which is indicative of a reinvigorated industry. Surges in temporary and contract vacancies are a lead indicator of industry expansion or contraction, as employers seek flexibility in their workforces. The concurrent increase in permanent vacancy advertising indicates that on this occasion the increase in temporary and contract vacancies is due to growing confidence in Defence Sector employers. Given this, we expect to see a strong growth in permanent, temporary and contract hiring throughout

17 STATE OVERVIEWS For more information on how the following was compiled, including definitions and methods for the salary analysis, see the section on Compiling an Industry Report on page 5. Each state and territory has unique defence capabilities and requirements. Below are concise overviews of the workforce trends in each state, along with some salary comparisons between those reported in the 2015 Defence Salary Survey and current reported figures. OVERVIEW There has been an average increase of 4% in salaries across all states (excluding QLD and NT) since the 2015 survey. This is higher than the across industry salary increase, which was approximately 2% over the same period across Australia. Sales and business support roles increased the most, with an average of 8.42%. Despite interstate differences in salary trends, there are skill sets that have seen nation wide increases regardless of state lines. Procurement and purchasing manager salaries have increased by approximately 20% in each state, with commercial manager and logistics and supply chain roles also seeing a consistent nation wide salary increase. This is largely being driven by the increase in demand for new procurement projects. Note: In the following salary tables, the presence of N/A indicates that the collected sample size was not large enough to formulate an accurate salary median for the relevant role and experience level. 15

18 NSW & ACT NSW SUMMARY NSW remains the sustainment state, but there is increasing focus on local industry and education institutions participating in the development of new cyber and Intelligence, Surveilance and Reconnaissance (ISR) technologies. The arrival of the first AWD in Sydney mid 2017 will likely see some movement in the naval sustainment workforce as people look to be involved with Navy s most sophisticated warship. ACT SUMMARY Strong demand continues for people with project support, capability development, engineering, ILS, business development and cyber skills. The effects of the First Principal Review will be felt in Canberra as defence moves to effectively outsource many of the aforementioned capabilities. Based on previous experience when the Defence Materiel Organisation Support Services (DMOSS) panel was introduced, we can expect a delay in the release of professional services work during the tender and introduction phases of the new Defence Organisation Support Services (DOSS) Panel from around March to December SALARY TRENDS: There was an overall increase of 5.64% in salary across all categories Engineering and technical roles increased by an average of 4.36% Sales and business support roles increased by an average of 8.8% ICT roles increased by an average of 3.78% THE TOP 3 ROLES WITH THE HIGHEST AVERAGE INCREASE IN SALARY WERE: Procurement and purchasing manager, which increased by an average of 21.95% Commercial manager, which increased by an average of 19.64% Network administrator, which increased by an average of 16.9% 16

19 NSW & ACT 2016 SALARY ANALYSIS OF DEFENCE INDUSTRY WORKERS Total Pay = base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. *Salaries for these skill sets can vary significantly based on the scope and level of responsibility. NSW & ACT ENGINEERING, TECHNICAL OR PROJECT MANAGEMENT Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Aeronautical Engineer $85,000 $95,000 $115,000 $130,000 Asset Manager/Sustainment Manager $85,000 $100,000 $135,000 $175,000 Avionics Engineer $75,000 $85,000 $115,000 $140,000 Combat Systems and Comms Engineer $90,000 $120,000 $150,000 $175,000 Configuration Engineer $85,000 $105,000 $125,000 $150,000 Drafter $70,000 $85,000 $95,000 $110,000 Electrical Engineer $80,000 $110,000 $140,000 $160,000 Electronics Technician $70,000 $85,000 $95,000 $110,000 Engineering Manager $140,000 $150,000 $160,000 $185,000 Facilities Manager $85,000 $100,000 $130,000 $155,000 ILS Analyst $80,000 $95,000 $115,000 $130,000 ILS Engineer $85,000 $110,000 $135,000 $165,000 AME $60,000 $60,000 $80,000 $80,000 Maintenance Manager - Naval* $90,000 $110,000 $130,000 $155,000 Maintenance Manager - Aero* $80,000 $90,000 $105,000 $130,000 Maintenance Planner/Analyst $75,000 $90,000 $110,000 $130,000 Marine Technician $70,000 $85,000 $95,000 $110,000 Mechanical Engineer $85,000 $105,000 $130,000 $150,000 Naval Architect $85,000 $110,000 $140,000 $165,000 Program Manager* $145,000 $165,000 $190,000 $225,000 Project Manager* $110,000 $125,000 $150,000 $175,000 Project Planner/Scheduler $85,000 $115,000 $150,000 $165,000 QA Engineer $85,000 $110,000 $125,000 $145,000 Reliability Engineer $90,000 $110,000 $140,000 $160,000 Structural Engineer $70,000 $90,000 $110,000 $125,000 Systems Engineer $90,000 $120,000 $145,000 $170,000 Systems Safety Engineer $100,000 $125,000 $150,000 $175,000 Technical Writer $75,000 $90,000 $105,000 $120,000 Test and Activation Engineer $85,000 $95,000 $110,000 $125,

20 NSW SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager $110,000 $130,000 $150,000 $160,000 Bid Manager $125,000 $140,000 $165,000 $185,000 Business Development Manager* $150,000 $170,000 $190,000 $215,000 Commercial Manager $140,000 $160,000 $170,000 $200,000 Cost Schedule Analyst $90,000 $105,000 $125,000 $140,000 Document Controller $65,000 $80,000 $95,000 $120,000 Logistics/Supply Chain Manager $95,000 $120,000 $150,000 $175,000 Logistics/Supply Chain Specialist $75,000 $85,000 $110,000 $135,000 Operations Manager $105,000 $130,000 $155,000 $180,000 Procurement/Purchasing Manager $90,000 $110,000 $135,000 $165,000 Procurement/Purchasing Specialist $80,000 $90,000 $105,000 $135,000 Project Administrator $75,000 $85,000 $100,000 $125,000 ACT SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager $130,000 $155,000 $160,000 $170,000 Bid Manager $145,000 $155,000 $180,000 $200,000 Business Development Manager* $170,000 $190,000 $205,000 $220,000 Commercial Manager $140,000 $155,000 $180,000 $200,000 NSW & ACT INFORMATION & COMMUNICATIONS TECHNOLOGY Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Architect (Enterprise/Solution/Technical) $155,000 $175,000 $200,000 $230,000 Business Analyst $100,000 $125,000 $145,000 $180,000 Data Warehousing/Business Intelligence $100,000 $120,000 $150,000 $180,000 Help Desk/Desktop Support $60,000 $70,000 $80,000 $90,000 IT Security Consultant $130,000 $150,000 $175,000 $200,000 Network Administrator $85,000 $100,000 $110,000 $120,000 Network/Security Engineer $120,000 $130,000 $145,000 $160,000 Project Manager $110,000 $130,000 $155,000 $175,000 Service Delivery Manager $130,000 $150,000 $165,000 $190,000 Software Engineer $80,000 $95,000 $120,000 $150,000 Software Tester $70,000 $90,000 $110,000 $130,000 Systems Administrator $80,000 $95,000 $110,000 $125,000 Systems Engineer $90,000 $110,000 $125,000 $140,

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22 VIC & TAS VIC SUMMARY The land domain is likely to drive growth in Victorian Defence Industry over the coming few years. Both LAND 400 contenders are likely to grow a significant workforce in Melbourne from the end of 2017, and the Hawkei production will also ramp up. Systems engineering skills will remain in demand in Air Traffic Management (ATM) and other communications systems projects. Note: Defence Industry activity is not significant in Tasmania and therefore will not be discussed here. However, residents from Tasmania are involved in defence related projects so have been included in the following salary analysis. SALARY TRENDS: There was an overall increase of 4.70% in salary across all categories Engineering and technical roles increased by an average of 2.66% Sales and business support roles increased by an average of 7.89% ICT roles increased by an average of 3.55% THE TOP 3 ROLES WITH THE HIGHEST AVERAGE INCREASE IN SALARY WERE: Procurement and purchasing manager, which increased by an average of 21.95% Commercial manager, which increased by an average of 19.64% Network administrator, which increased by an average of 16.9% 20

23 VIC & TAS 2016 SALARY ANALYSIS OF DEFENCE INDUSTRY WORKERS Total Pay = base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. *Salaries for these skill sets can vary significantly based on the scope and level of responsibility. VIC & TAS ENGINEERING, TECHNICAL OR PROJECT MANAGEMENT Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Aeronautical Engineer $85,000 $95,000 $115,000 $130,000 Asset Manager/Sustainment Manager $85,000 $100,000 $135,000 $175,000 Avionics Engineer $75,000 $85,000 $115,000 $140,000 Combat Systems and Comms Engineer $90,000 $120,000 $150,000 $175,000 Configuration Engineer $85,000 $105,000 $125,000 $150,000 Drafter $70,000 $85,000 $95,000 $110,000 Electrical Engineer $80,000 $110,000 $140,000 $160,000 Electronics Technician $70,000 $85,000 $95,000 $110,000 Engineering Manager $140,000 $150,000 $160,000 $185,000 Facilities Manager $85,000 $100,000 $130,000 $155,000 ILS Analyst $80,000 $95,000 $115,000 $130,000 ILS Engineer $85,000 $110,000 $135,000 $165,000 AME $60,000 $60,000 $80,000 $80,000 Maintenance Manager - Naval* $90,000 $110,000 $130,000 $155,000 Maintenance Manager - Aero* $80,000 $90,000 $105,000 $130,000 Maintenance Planner/Analyst $75,000 $90,000 $110,000 $130,000 Marine Technician $70,000 $85,000 $95,000 $110,000 Mechanical Engineer $85,000 $105,000 $130,000 $150,000 Naval Architect $85,000 $110,000 $140,000 $165,000 Program Manager* $145,000 $165,000 $190,000 $225,000 Project Manager* $110,000 $125,000 $150,000 $175,000 Project Planner/Scheduler $85,000 $115,000 $150,000 $165,000 QA Engineer $85,000 $110,000 $125,000 $145,000 Reliability Engineer $90,000 $110,000 $140,000 $160,000 Structural Engineer $70,000 $90,000 $110,000 $125,000 Systems Engineer $90,000 $120,000 $145,000 $170,000 Systems Safety Engineer $100,000 $125,000 $150,000 $175,000 Technical Writer $75,000 $90,000 $105,000 $120,000 Test and Activation Engineer $85,000 $95,000 $110,000 $125,

24 VIC & TAS SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager $110,000 $130,000 $145,000 $155,000 Bid Manager $125,000 $140,000 $160,000 $180,000 Business Development Manager* $150,000 $170,000 $185,000 $210,000 Commercial Manager $125,000 $135,000 $150,000 $180,000 Cost Schedule Analyst $90,000 $105,000 $115,000 $130,000 Document Controller $65,000 $80,000 $90,000 $110,000 Logistics/Supply Chain Manager $95,000 $115,000 $140,000 $170,000 Logistics/Supply Chain Specialist $75,000 $90,000 $110,000 $130,000 Operations Manager $105,000 $130,000 $155,000 $180,000 Procurement/Purchasing Manager $90,000 $110,000 $130,000 $160,000 Procurement/Purchasing Specialist $80,000 $90,000 $105,000 $130,000 Project Administrator $75,000 $85,000 $100,000 $120,000 VIC & TAS INFORMATION & COMMUNICATIONS TECHNOLOGY Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Architect (Enterprise/Solution/Technical) $110,000 $130,000 $150,000 $183,500 Business Analyst $85,000 $100,000 $120,000 $140,000 Data Warehousing/Business Intelligence $90,000 $110,000 $135,000 $160,000 Help Desk/Desktop Support $60,000 $70,000 $80,000 $90,000 IT Security Consultant $110,000 $130,000 $150,000 $180,000 Network Administrator $75,000 $85,000 $100,000 $110,000 Network/Security Engineer $75,000 $90,000 $110,000 $124,000 Project Manager $90,000 $110,000 $150,000 $175,000 Service Delivery Manager $110,000 $125,000 $140,000 $160,000 Software Engineer $75,000 $95,000 $115,000 $130,000 Software Tester $65,000 $85,000 $100,000 $120,000 Systems Administrator $70,000 $80,000 $95,000 $110,000 Systems Engineer $75,000 $90,000 $110,000 $125,

25 SA SUMMARY Reduction in demand for ship production workers will continue as the AWD construction winds down. However, recent and imminent announcements regarding future submarines and frigates, JORN and LAND 400 will start to ramp up demand for engineering, procurement and supply chain workers. The introduction into service of new airborne ISR assets will also contribute to increased demand for workers with aerospace sustainment skill sets. SALARY TRENDS: There was an overall increase of 2.22% in salary across all categories Engineering and technical roles increased by an average of 5.65% Sales and business support roles increased by an average of 10.75% ICT roles decreased by an average of 9.74% THE TOP 3 ROLES WITH THE HIGHEST AVERAGE INCREASE IN SALARY WERE: Procurement and purchasing manager, which increased by an average of 21.95% Commercial manager, which increased by an average of 19.64% Network administrator, which increased by an average of 16.9% 23

26 SA 2016 SALARY ANALYSIS OF DEFENCE INDUSTRY WORKERS Total Pay = base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. *Salaries for these skill sets can vary significantly based on the scope and level of responsibility. SA ENGINEERING, TECHNICAL OR PROJECT MANAGEMENT Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Aeronautical Engineer $65,000 $75,000 $100,000 $140,000 Asset Manager/Sustainment Manager $85,000 $100,000 $135,000 $170,000 Avionics Engineer $70,000 $85,000 $105,000 $150,000 Combats Systems and Comms Engineer $85,000 $115,000 $145,000 $165,000 Configuration Engineer $85,000 $105,000 $125,000 $145,000 Drafter $70,000 $80,000 $90,000 $105,000 Electrical Engineer $85,000 $115,000 $145,000 $160,000 Electronics Technician $65,000 $80,000 $90,000 $105,000 Engineering Manager $130,000 $145,000 $160,000 $180,000 Facilities Manager $85,000 $100,000 $125,000 $155,000 ILS Analyst $80,000 $95,000 $110,000 $125,000 ILS Engineer $85,000 $110,000 $130,000 $155,000 AME $60,000 $60,000 $75,000 $75,000 Maintenance Manager* $85,000 $110,000 $125,000 $140,000 Maintenance Planner/Analyst $75,000 $90,000 $105,000 $120,000 Marine Technician $65,000 $80,000 $90,000 $105,000 Mechanical Engineer $65,000 $105,000 $125,000 $150,000 Naval Architect $80,000 $105,000 $130,000 $160,000 Program Manager* $140,000 $160,000 $185,000 $210,000 Project Manager* $110,000 $125,000 $150,000 $170,000 Project Planner/Scheduler $85,000 $115,000 $145,000 $160,000 QA Engineer $85,000 $105,000 $120,000 $130,000 Reliability Engineer $85,000 $105,000 $125,000 $145,000 Structural Engineer $65,000 $80,000 $110,000 $145,000 Systems Engineer $85,000 $115,000 $145,000 $160,000 Systems Safety Engineer $90,000 $120,000 $150,000 $165,000 Technical Writer $75,000 $90,000 $100,000 $110,000 Test and Activation Engineer $85,000 $95,000 $105,000 $120,

27 SA SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager $100,000 $120,000 $140,000 $150,000 Bid Manager $120,000 $130,000 $155,000 $180,000 Business Development Manager* $145,000 $170,000 $190,000 $210,000 Commercial Manager $120,000 $135,000 $160,000 $180,000 Cost Schedule Analyst $90,000 $105,000 $115,000 $130,000 Document Controller $65,000 $80,000 $90,000 $105,000 Logistics/Supply Chain Manager $95,000 $115,000 $140,000 $170,000 Logistics/Supply Chain Specialist $75,000 $90,000 $110,000 $130,000 Operations Manager $105,000 $130,000 $155,000 $180,000 Procurement/Purchasing Manager $90,000 $110,000 $130,000 $160,000 Procurement/Purchasing Specialist $80,000 $90,000 $105,000 $130,000 Project Administrator $75,000 $85,000 $100,000 $115,000 SA INFORMATION & COMMUNICATION TECHNOLOGY Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Architect (Enterprise/Solution/Technical) $125,000 $150,000 $180,000 $200,000 Business Analyst $90,000 $105,000 $120,000 $145,000 Data Warehousing/Business Intelligence $90,000 $110,000 $125,000 $150,000 Help Desk/Desktop Support $45,000 $60,000 $75,000 $80,000 IT Security Consultant $110,000 $120,000 $140,000 $160,000 Network Administrator $50,000 $65,000 $75,000 $90,000 Network/Security Engineer $80,000 $95,000 $110,000 $120,000 Project Manager $115,000 $130,000 $150,000 $180,000 Service Delivery Manager $110,000 $120,000 $140,000 $165,000 Software Engineer $60,000 $80,000 $100,000 $120,000 Software Tester $60,000 $75,000 $90,000 $110,000 Systems Administrator $60,000 $70,000 $85,000 $100,000 Systems Engineer $75,000 $90,000 $110,000 $125,

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29 WA SUMMARY The return of some Resource Industry workers to Defence Industry during 2016 will assist industry in accommodating a forecasted moderate level of growth in The recent changes to the naval sustainment landscape brought about by the establishment of the Warship Asset Management Agreement (WAMA) in 2016 are bedding in, and the Anti- Ship Missile Defence (ASMD) upgrade work on the ANZACs is nearing completion will also see construction commence on a proposed shipbuilding facility. SALARY TRENDS: There was an overall increase of 3.38% in salary across all categories Engineering and technical roles increased by an average of 0.31% Sales and business support roles increased by an average of 6.24% ICT roles increased by an average of 3.59% THE TOP 3 ROLES WITH THE HIGHEST AVERAGE INCREASE IN SALARY WERE: Procurement and purchasing manager, which increased by an average of 19.51% Commercial manager, which increased by an average of 12.73% Logistics and supply chain specialist, which increased by an average of 12.16% 27

30 WA 2016 SALARY ANALYSIS OF DEFENCE INDUSTRY WORKERS Total Pay = base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. *Salaries for these skill sets can vary significantly based on the scope and level of responsibility. WA ENGINEERING, TECHNICAL OR PROJECT MANAGEMENT Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Aeronautical Engineer $70,000 $75,000 $90,000 $120,000 Asset Manager/Sustainment Manager $85,000 $100,000 $135,000 $175,000 Combat Systems and Comms Engineer $85,000 $110,000 $135,000 $160,000 Configuration Engineer $85,000 $100,000 $115,000 $135,000 Drafter $70,000 $90,000 $100,000 $110,000 Electrical Engineer $85,000 $110,000 $135,000 $160,000 Electronics Technician $70,000 $85,000 $95,000 $105,000 Engineering Manager $120,000 $145,000 $160,000 $185,000 Facilities Manager $85,000 $100,000 $130,000 $155,000 ILS Analyst $75,000 $90,000 $105,000 $120,000 ILS Engineer $80,000 $110,000 $130,000 $155,000 AME $60,000 $60,000 $70,000 $70,000 Maintenance Manager* $95,000 $115,000 $140,000 $165,000 Maintenance Planner Analyst $75,000 $90,000 $110,000 $130,000 Marine Technician $70,000 $85,000 $95,000 $105,000 Mechanical Engineer $80,000 $105,000 $130,000 $150,000 Naval Architect $85,000 $110,000 $135,000 $170,000 Program Manager* $150,000 $165,000 $185,000 $225,000 Project Manager* $110,000 $130,000 $170,000 $190,000 Project Planner Scheduler $90,000 $110,000 $130,000 $160,000 QA Engineer $80,000 $105,000 $120,000 $145,000 Reliability Engineer $85,000 $105,000 $125,000 $160,000 Systems Engineer $85,000 $105,000 $135,000 $160,000 Systems Safety Engineer $90,000 $110,000 $140,000 $165,000 Technical Writer $75,000 $90,000 $100,000 $115,000 Test and Activation Engineer $80,000 $95,000 $110,000 $120,

31 WA SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager $110,000 $130,000 $145,000 $155,000 Bid Manager $125,000 $140,000 $160,000 $180,000 Business Development Manager* $150,000 $170,000 $185,000 $215,000 Commercial Manager $130,000 $140,000 $160,000 $190,000 Cost Schedule Analyst $90,000 $105,000 $120,000 $135,000 Document Controller $70,000 $80,000 $90,000 $105,000 Logistics/Supply Chain Manager $100,000 $115,000 $140,000 $170,000 Logistics/Supply Chain Specialist $80,000 $95,000 $110,000 $130,000 Operations Manager $105,000 $120,000 $150,000 $175,000 Procurement/Purchasing Manager $90,000 $110,000 $130,000 $160,000 Procurement/Purchasing Specialist $80,000 $90,000 $105,000 $130,000 Project Administrator $75,000 $85,000 $100,000 $115,000 WA INFORMATION & COMMUNICATIONS TECHNOLOGY Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Architect (Enterprise/Solution/Technical) $130,000 $140,000 $160,000 $190,000 Business Analyst $90,000 $110,000 $120,000 $130,000 Data Warehousing/Business Intelligence $95,000 $120,000 $135,000 $160,000 Help Desk/Desktop Support $50,000 $60,000 $80,000 $95,000 IT Security Consultant $90,000 $110,000 $130,000 $145,000 Network Administrator $70,000 $85,000 $100,000 $120,000 Network/Security Engineer $105,000 $115,000 $125,000 $150,000 Project Manager $100,000 $120,000 $140,000 $160,000 Service Delivery Manager $120,000 $135,000 $150,000 $170,000 Software Engineer $70,000 $90,000 $115,000 $135,000 Software Tester $70,000 $85,000 $95,000 $110,000 Systems Administrator $75,000 $85,000 $100,000 $110,000 Systems Engineer $80,000 $90,000 $105,000 $120,

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33 QLD SUMMARY Communications and aerospace engineering skills remain in high demand, with this expected to continue over the medium term with LAND 2072Ph3 and aerospace sustainment activities driving demand for workers. Avionics engineering and defence platform technical skills are in short supply in south east Queensland, although the softening resources sector has alleviated competition to a reasonable extent. SALARY TRENDS: For the 2016 salary survey, NT and QLD have been separated for the first time. Due to this, we are unable to provide comparative data with that collected in

34 QLD 2016 SALARY ANALYSIS OF DEFENCE INDUSTRY WORKERS Total Pay = base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. *Salaries for these skill sets can vary significantly based on the scope and level of responsibility. QLD ENGINEERING, TECHNICAL OR PROJECT MANAGEMENT Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Aeronautical Engineer $65,000 $75,000 $110,000 $135,000 Asset Manager/Sustainment Manager $85,000 $95,000 $135,000 $160,000 Avionics Engineer $75,000 $90,000 $115,000 $135,000 Combat Systems and Comms Engineer $75,000 $95,000 $125,000 $150,000 Configuration Engineer $80,000 $110,000 $130,000 $160,000 Drafter $65,000 $75,000 $85,000 $90,000 Electrical Engineer $90,000 $110,000 $150,000 $170,000 Electronics Technician $65,000 $80,000 $90,000 $105,000 Engineering Manager $120,000 $135,000 $160,000 $195,000 Facilities Manager $80,000 $90,000 $110,000 $140,000 ILS Analyst $70,000 $85,000 $110,000 $130,000 ILS Engineer $95,000 $110,000 $125,000 $135,000 AME $70,000 $70,000 $80,000 $80,000 Maintenance Manager* $110,000 $120,000 $140,000 $160,000 Maintenance Planner/Analyst $80,000 $110,000 $125,000 $140,000 Marine Technician $65,000 $80,000 $90,000 $105,000 Mechanical Engineer $75,000 $90,000 $115,000 $130,000 Naval Architect $80,000 $105,000 $130,000 $165,000 Program Manager* $125,000 $145,000 $160,000 $190,000 Project Manager* $110,000 $120,000 $135,000 $150,000 Project Planner/Scheduler $85,000 $105,000 $120,000 $135,000 QA Engineer $75,000 $85,000 $110,000 $120,000 Reliability Engineer N/A N/A $125,000 N/A Structural Engineer $70,000 $90,000 $120,000 $140,000 Systems Engineer $75,000 $90,000 $125,000 $145,000 Systems Safety Engineer $85,000 $100,000 $130,000 $150,000 Technical Writer $65,000 $70,000 $85,000 $95,000 Test and Activation Engineer $65,000 $75,000 $90,000 $110,

35 QLD SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager $110,000 $130,000 $145,000 $150,000 Bid Manager $125,000 $135,000 $160,000 $180,000 Business Development Manager* $150,000 $170,000 $185,000 $210,000 Commercial Manager $120,000 $135,000 $160,000 $180,000 Cost Schedule Analyst $80,000 $95,000 $110,000 $120,000 Document Controller $55,000 $60,000 $65,000 $80,000 Logistics/Supply Chain Manager $85,000 $95,000 $105,000 $140,000 Logistics/Supply Chain Specialist $60,000 $70,000 $85,000 $120,000 Operations Manager $95,000 $105,000 $120,000 $141,000 Procurement/Purchasing Manager $85,000 $100,000 $110,000 $135,000 Procurement/Purchasing Specialist $60,000 $70,000 $85,000 $120,000 Project Administrator $65,000 $70,000 $85,000 $115,000 Systems Engineer $80,000 $95,000 $115,000 $130,000 QLD INFORMATION & COMMUNICATION TECHNOLOGY Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Architect (Enterprise/Solution/Technical) $140,000 $170,000 $200,000 $230,000 Business Analyst $110,000 $120,000 $140,000 $160,000 Data Warehousing/Business Intelligence $115,000 $125,000 $150,000 $170,000 Help Desk/Desktop Support $50,000 $60,000 $70,000 $80,000 IT Security Consultant $130,000 $150,000 $180,000 $200,000 Network Administrator $70,000 $85,000 $100,000 $115,000 Network/Security Engineer $100,000 $125,000 $145,000 $160,000 Project Manager $120,000 $160,000 $190,000 $210,000 Service Delivery Manager $130,000 $150,000 $170,000 $185,000 Software Engineer $70,000 $85,000 $110,000 $125,000 Software Tester $70,000 $80,000 $100,000 $120,000 Systems Administrator $70,000 $85,000 $100,000 $120,000 Systems Engineer $80,000 $95,000 $115,000 $130,

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37 NT SUMMARY Naval sustainment skills continue to be in demand with the ACPB ISS changing hands in mid Infrastructure upgrades continue to support the United States Marine Corp (USMC) presence in Darwin and prepare for the arrival of the F-35 in Tindal. SALARY TRENDS: For the 2016 Salary Survey, NT and QLD were separated for the first time. Due to this, we are unable to provide comparative data with that collected in

38 NT 2016 SALARY ANALYSIS OF DEFENCE INDUSTRY WORKERS Total Pay = base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. *Salaries for these skill sets can vary significantly based on the scope and level of responsibility. NT ENGINEERING, TECHNICAL OR PROJECT MANAGEMENT Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Asset Manager/Sustainment Manager $85,000 $100,000 $135,000 $175,000 Combat Systems and Comms Engineer $85,000 $100,000 $125,000 $160,000 Configuration Engineer $75,000 $90,000 $105,000 $125,000 Drafter $65,000 $75,000 $90,000 $105,000 Electrical Engineer $75,000 $105,000 $135,000 $155,000 Electronics Technician $70,000 $85,000 $95,000 $105,000 Engineering Manager $120,000 $130,000 $150,000 $180,000 Facilities Manager $75,000 $90,000 $120,000 $150,000 ILS Analyst $75,000 $85,000 $105,000 $130,000 ILS Engineer $90,000 $110,000 $125,000 $150,000 AME $87,000 $87,000 $99,000 $99,000 Maintenance Manager* $100,000 $115,000 $135,000 $155,000 Tech Assessors/CAMM2 $70,000 $75,000 $90,000 $105,000 Marine Technician $70,000 $85,000 $95,000 $105,000 Mechanical Engineer $80,000 $105,000 $130,000 $145,000 Naval Architect $85,000 $110,000 $150,000 $170,000 Program Manager* $125,000 $150,000 $185,000 $210,000 Project Manager* $110,000 $125,000 $140,000 $165,000 Project Planner/Scheduler $95,000 $115,000 $135,000 $160,000 QA Engineer $75,000 $90,000 $110,000 $130,000 Reliability Engineer $85,000 $110,000 $140,000 $165,000 Structural Engineer $75,000 $90,000 $110,000 $125,000 Systems Engineer $75,000 $105,000 $135,000 $155,000 Systems Safety Engineer $85,000 $110,000 $140,000 $160,000 Technical Writer $70,000 $80,000 $95,000 $105,000 Test and Activation Engineer $65,000 $75,000 $85,000 $110,

39 NT SALES, PROJECT SUPPORT OR LOGISTICS Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Account Manager N/A N/A $109,000 N/A Bid Manager N/A N/A $100,000 N/A Business Analyst N/A N/A N/A $98,000 Business Development Manager* N/A N/A N/A $140,000 Commercial Manager N/A N/A N/A N/A Cost Schedule Analyst $80,000 $95,000 $110,000 $120,000 Document Controller $60,000 $70,000 $85,000 $100,000 Logistics/Supply Chain Manager $95,000 $120,000 $150,000 $175,000 Logistics/Supply Chain Specialist $75,000 $90,000 $110,000 $135,000 Operations Manager $105,000 $130,000 $155,000 $180,000 Procurement/Purchasing Manager $90,000 $110,000 $135,000 $165,000 Procurement/Purchasing Specialist $80,000 $90,000 $105,000 $135,000 Project Administrator $75,000 $85,000 $100,000 $125,000 NT INFORMATION COMMUNICATION & TECHNOLOGY Years Experience Position 1-3 Years 3-5 Years 5-10 Years 10+ Years Architect (Enterprise/Solution/Technical) $140,000 $170,000 $200,000 $230,000 Business Analyst $110,000 $120,000 $140,000 $160,000 Data Warehousing/Business Intelligence $115,000 $125,000 $150,000 $170,000 Help Desk/Desktop Support $50,000 $60,000 $70,000 $80,000 IT Security Consultant $130,000 $150,000 $180,000 $200,000 Network Administrator $70,000 $85,000 $100,000 $115,000 Network/Security Engineer $100,000 $125,000 $145,000 $160,000 Project Manager $120,000 $160,000 $190,000 $210,000 Service Delivery Manager $130,000 $150,000 $170,000 $185,000 Software Engineer $70,000 $85,000 $110,000 $125,000 Software Tester $70,000 $80,000 $100,000 $120,000 Systems Administrator $70,000 $85,000 $100,000 $120,000 Systems Engineer $80,000 $95,000 $115,000 $130,

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41 SKILLS IN DEMAND There are three factors that will influence demand for skills in Defence Industry over the short and medium term: Project Environment: Numerous acquisition and upgrade projects scheduled to commence First Principals Review: Changing role of defence, and increased scope for Defence Industry Technology: New technologies and capabilities require new skills Sales Business development, account management, sales support Commercial Procurement, contract management PMO Project managers, administrators, schedulers analytics IT Security Administration, engineering, architecture, governance, analytics Given the above, the top skill sets in demand in the Defence Sector over the next 12 months will be Software Java, Python, Hadoop, ios, Android, Linux, C/C++ Asset Management Naval platforms, infrastructure Systems Engineering Design, requirements, integration Systems Administration Microsoft, Linux/Unix (Red Hat, Solaris) ILS Engineering, logistics support analysis, technical writing 39

42 SKILL TRENDS PROCUREMENT SALES As the approval of new programs gathers pace, so too will the demand for the skills needed by organisations to establish project teams and supply chains. Business development skills will be in high demand as industry competes for the many opportunities available. DOSS GRADUATES The above the line sector will be changed with the introduction of the new DOSS panel in The utilisation of major service providers may rationalise the sector, and workers will transfer from the public to private sectors. An underinvestment in graduates in the period is being reversed, with most large companies, and many smaller companies, reinvigorating their graduate recruitment programs. FRONT END PROJECT SKILLS ADJACENT INDUSTRIES Including capability development, acquisition, engineering, ILS and Project Management Office (PMO), these front end skills are needed to support projects both above and below the line. Smart employers are looking for the best talent, wherever it may come from. This includes integrating workers from other industries. However, care needs to be taken to de-risk these efforts. 40

43 DEFENCE INDUSTRY WORKFORCE SURVEY Since 2005, Kinexus has been surveying the Defence Sector workforce to gain insights on the composition and expectations of the workforce. The last survey was conducted in This survey represents data collected in December ADDITIONAL BENEFITS FROM ORGANISATIONS This graph represents a breakdown of additional benefits (beyond annual salary and statutory superannuation) being offered across the Defence Industry. Respondents were asked to select all that apply. The percentages represent the proportion of organisations that offer each additional benefit. Bonus 12% Salary sacrifice packages Further education support/funding 10% 11% Nothing, I get paid in love 9% Shares in company Car allowance/mileage 7% 7% Holiday loading More than statutory holidays/days off 6% 6% Profit share 5% Non-cash incentives 5% Lump sum / cash incentives Other Rental assistance/housing 4% 4% 4% Parking 3% 0% 2% 4% 6% 8% 10% 12% 14% 41

44 CURRENT EMPLOYMENT STATUS This graph represents the current employment status of respondents across the country. Not working 8% Contract 26% Permanent 66% Since 2015, the proportion of respondents in permanent work has remained relatively stable, at between 65-69%. However, there have been changes since 2015 in the number of respondents reported to be not working, or in contract positions. Respondents that are not currently working has decreased from 13% to 8%, and the proportion of respondents on contract assignments has increased from 18% to 26%. This result ties in with the Kinexus Defence Sector Job Vacancy Index results that show a sharp increase in contract vacancy advertising over the last 12 months. 42

45 COMMERCIAL EXPERIENCE This graph represents the years of experience of the respondents working within Defence Industry. 3-5 Years 7% 1-3 Years 12% 5-10 Years 17% 10 + Years 64% The number of respondents with 10+ years of experience in the Defence Sector has declined over the last three years. In the 2013 survey, 70% of respondents had 10+ years experience, in the 2015 survey it was 67%, and in the 2016 survey it was just 64% of respondents. This is likely a function of an influx of less experienced workers into the industry, and an exit of more experienced workers, or a combination of both of these occurrences. 43

46 AGE DEMOGRAPHICS This graph represents the age demographics (in years) of the respondents currently working within the Defence Industry % 67 or over 3% % % % As in 2015, the two most prevalent age brackets are and In this 2016 cross section, the 56+ age group has shrunk, and the age group has increased compared with previous years. This indicates that older workers may be exiting the workforce as younger workers enter. The increase in the younger age group is encouraging for the longer term growth and stability of the sector. 44

47 INDUSTRY CAREER CONFIDENCE This graph represents the opinion of the respondents when asked What is your current confidence in the Defence Industry being able to provide you with a long term career?. Somewhat unconfident 14% Not at all confident 5% Somewhat confident 47% Very confident 34% Since the last survey, the level of confidence in the industry in its ability to provide a long term career has increased significantly. In 2015, 64% of respondents were somewhat or very confident, but this has increased to 81% in The number of respondents with no confidence fell from 17% to 5% in the same period. 45

48 ORGANISATIONAL LEADERSHIP CONFIDENCE This graph represents the opinion of the respondents when asked What is your current confidence in the leadership within your organisation. Not at all confident 15% Somewhat confident 43% Very confident 16% Somewhat unconfident 26% The Defence Sector s ability to successfully deliver the programs of the next decade will be greatly influenced by the effectiveness of its leaders. For the first time, Kinexus has surveyed the level of confidence in the leadership of Defence Sector organisations. It bodes well for the industry that over half of respondents are either somewhat or very confident in their organisations leadership. 46

49 EMPLOYMENT CHANGES IN THE NEAR FUTURE This graph represents the opinion of the respondents when asked Are you considering a change in employment in the near future?. Not really, I m hoping for an internal promotion or department change 3% No, I intend to stay where I am for the foreseeable future 10% No way, I love my job 1% Yes, actively looking for a new role 34% Yes, i ll likely be looking for a new opportunity within the next 12 months 24% Not really, but i m open to opportunities 28% CAREER MOVEMENT Since our 2015 survey, the number of respondents that reported they were not planning on looking for alternate employment in the near future has remained steady. However, those that intend on actively seeking new employment (those actively looking for work now and within the next 12 months) has increased from 41% to 58% in the same period. This indicates that there may be a higher proportion of people actively looking for work versus those passively looking for work. 47

50 FACTORS OF ATTRACTION TO NEW EMPLOYMENT This graph represents the opinion of the respondents when asked What would attract you to take another role?. Respondents were asked to select all that apply. The percentages represent the proportion of respondents that would be attracted to a new role by each factor. Nothing Other Size of the company 4% 7% 9% Better incentives and benefits (on top of salary) Location 37% 41% Career growth opportunities 59% Interesting work Salary increase 69% 71% 0% 10% 20% 30% 40% 50% 60% 70% A characteristic of Defence Sector workers has always been that remuneration does not trump all other aspects of employment. Interesting work, and career progression opportunities are also highly valued and will strongly influence job-seeker decision making. Other factors included job security, longer term contract or permanent opportunity, flexible working arrangements, varied industry exposure and more. 48

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52 CONTRIBUTING AUTHORS Robert Kremer Director & Defence Sector Lead Chris Money Naval Sector Lead Mark Henneberry Aero & Land Sector Lead Ross Webb Senior Consultant Phil Loyden Consultant James Donovan Principal Consultant 50

53 APPENDIX Project Summary ACPB ISS AIR 5349ph3 The renewal of the In-Service Support (ISS) contract for Armidale Class Control Boats. The acquisition of Growler airborne electronic attack aircrafts. DMOSS DDG TSP Defence Materiel Organisation Support. Air Warfare Destroyer (AWD) transition support period supports the introduction into service of the new AWDs. AIR 5376ph2 AIR 5402 AIR 5428 AIR 5431/ OneSky AIR 7000ph2B The upgrade of the F/A-18 aircraft. The replacement of the Boeing 707 with five new A330 Multi Role Tanker Transport air-to-air refueling aircrafts. The delivery of facilities, infrastructure and airfield works for the introduction of the PC-21 aircraft to support the Pilot Training System (PTS). The provision of facilities to support the provision of air traffic control services across the defence fixed base air traffic management and control network. The delivery of facilities, infrastructure and airfield works for the introduction of the Boeing P-8A Poseidon aircraft. EA-18G (Growlers) F-35 (JSF) FFG Enterprise FMSC HATS Hawkei HMAS Choules ISSC EA-18G Growler is an electronic warfare aircraft. Joint Strike Fighter. The In-Service Support (ISS) contracts for the RAN s FFG Class Ships. Fleet Marine Services Contract. The Helicopter Aircraft Training System for training helicopter pilots over the next 25 years. Hawkei is a light 4 x 4 protected mobility vehicle. The In-Service Support (ISS) for the RAN s leased Bay-Class Landing Ship. AIR 87ph2 AIR 9000 ANZAC PSR ASMD Bay Class ISS Armed Reconnaissance Helicopter (ISS). The multi-phase program aims to provide the ADF with the most appropriate force mix of helicopters. ANZAC Class Platform Systems Remediation. Anti-Ship Missile Defence Upgrades for ANZAC frigates. The In-Service Support (ISS) contract for the Bay Class Patrol Boats. Hydrographic ISS JORN JP 2008ph4 JP 2072 In-Service Support for the RAN s Hydrographic Fleet. The Jindalee Operational Radar Network is an over-the-horizon radar (OTHR) network that can monitor air and sea movements. The delivery of high-priority components to the next generation of satellite communication systems. The delivery of combat radios and ancillary equipment to replace the Wagtail, Pintail and Raven fleets. Beersheba C-27J CCPB This project involves the significant organisational restructure within Army. It aims to generate optimal capability to meet the challenge of contemporary warfare. Medium lift transport aircraft. The In-Service Support (ISS) for Cape Class Patrol Boats, comprising eight existing patrol boats and two additional boats currently being constructed. JP 2047 JSF LAND 121 Delivering Defence s largest ICT transformation project. The introduction of 72 F-35A Joint Strike Fighters from 2030 and beyond. The provision of field vehicles and trailers to the ADF to meet its mobility requirements. Centralised Processing The reduction in the amount of data centres used by Defence. CCSM Collins Class In-Service Support. D1 Delivery of a new enterprise resource planning system. DOSS Defence Organisation Support Services. 51

54 APPENDIX Project Summary LAND 125 LAND 134 LAND 155 LAND 17 LAND 19 LAND 200 LAND 2110 Soldier combat system to enhance the performance of dismounted combatants. Range instrumentation and information system. The delivery of enhanced gap crossing equipment, including the delivery of bridge bays and logistics packages. The replacement of 155mm munitions, delivery of 35 M777A2 lightweight towed 155mm Howitzers and the Advanced Field Artillery Tactical Data System (AFATDS). The development of a ground-based air and missile defence force protection capability. The collation of the two distinct battle management system requirements of LAND 75 and LAND 125. Improvement of the ADFs Chemical, Biological, Radiological, Nuclear Defence (CBRND) capability. NGD One Defence P-8 PC-21 PPBR SEA 1000 Next Generation Desktop (NGD) project to modernise the defence desktop environment. The model by which the First Principals Review recommendations are implemented. P-8A Poseidon is an aircraft designed for long-range anti-submarine warfare, antisurface warfare, intelligence, surveillance and reconnaissance missions. PC-21 is a single-turboprop, low-wing swept monoplane advanced trainer with a stepped tandem cockpit manufactured by Pilatus. The replacement of the fleet of Pacific Patrol Boats and In Service Support (ISS) of the newly built fleet. The design and procurement of a new fleet of submarines to replace the existing Collins Class submarines. Also referred to as the Future Submarine Program. LAND 400 LAND 75ph3 LAND 2072Ph3 LHD TISSC/ CSC MH-60R (Romeo) MHC ISS The provision of armoured fighting vehicles with improved firepower, protection, mobility and communication characteristics. Replacement of ASLAV fleet. The provision of a Battle Management System (BMS) and Battlefield Command Support System (BCSS) to the Australian Army. This project aims to deliver a secure communications network solution for the provision of voice and data services to enhance tactical command and control. The In-Service Support (ISS) contracts for the RAN s Landing Helicopter Dock Ships. MH-60R Seahawk is the Royal Australian Navy s next generation submarine hunter and anti-surface warfare helicopter. The In-Service Support contracts for the RAN s Mine-hunter Coastal Class Ships. SEA 1180 SEA 1442 SEA 1654 SEA 4000 SEA 5000 UAS USMC/USCG Support The construction of 12 Offshore Patrol Vessels in Adelaide and Perth. The upgrade of ANZAC Class Frigate communication systems. The replacement of 2x Auxiliary Oiler Replenishment Ships. The delivery and In-Service Support (ISS) of three Air Warfare Destroyers. The introduction into service of the next generation of naval surface combatants, replacing the ANZAC Class vessels. Unmanned Aerial System is an entire package, which includes the UAV itself, the ground control system and mission systems. The development of facilities to support 1,100 US marines on rotation in northern Australia. MISREW Maritime Intelligence, Surveillance, Reconnaissance, Electronic Warfare. WAMA Warship Asset Management Agreement MMC The production of munitions, including propellant, high explosives and small arms ammunition through the Munitions Manufacturer Contracts. 52

55 This publication contains general information only, and Kinexus, is not, by means of this publication, rendering professional advice or services. The data is given in summary form and whilst care has been taken in its preparation, Kinexus People makes no assurances whatsoever about its completeness or accuracy. Kinexus People expressly bears no responsibility or liability for any reliance placed by you on the data, or from the use of the data by you. ABOUT KINEXUS Kinexus is an expert at connecting people in complex and high-risk industries. In today s highly competitive employment market, companies vie for premium staff while specialists are scoping for their ideal position. Kinexus provides the intel for their mutual benefit, not only on finding the connection, but also the sense of belonging that fosters retention and cultural alignment. We are information analysts and knowledge brokers, deeply entrenched across private and government sectors that recruit specialist personnel. We partner with our clients to plan, inform and execute everything to do with people in their businesses. It s our unique access to intel and use of proprietary systems that informs us, creating opportunities and unleashing potential for our partners, connecting them within the communities they need to succeed and be secure. Our robust business model, the rigour of our processes and our unique, relationship based culture also set us apart from the herd. Our leadership position for many, many years in the Defence Sector as Kinetic Recruitment, taught us about the power of intel in the context of human capital. For more information, please visit Kinexus website Kinetic Defence Services Pty Ltd T/A Kinexus People ABN: GPO Box 1367 Sydney NSW enquiries@kinexus.com.au (02)

56 Defence Industry Insights Second Edition Published: May