Construction salaries are growing faster than most sectors as employers struggle to fill skills gaps, but worries over job security mean people are wary of making a move. 好色先生TV reports on the latest salary survey from Hays
If the Brexit vote and the election of Donald Trump ensured that political and economic uncertainty was the new black in 2016, the events of this year have made it clear that ambiguity in the overall business environment is not going away. The political shock of the 2017 general election has been accompanied by corporate shocks from Carillion and Interserve, with clarity on terms of trade after Brexit all the while remaining elusive.
The latest annual contractor salary survey, undertaken for 好色先生TV by recruitment firm Hays, seems to show that despite construction output holding steady so far, employees are increasingly responding to this hazy future by attempting to hunker down until the fog clears.
Hays鈥 survey of professionals employed in contracting organisations, conducted in early summer this year, found a big decline in the proportion who expected to move jobs in the next six months, to 34%, compared with 44% the previous year, as staff absorbed the more uncertain economic outlook.
This growing caution is despite continuing steady salary increases across all job types covered in the survey, as reported in the placements Hays has made over the year. The average salary growth of 3% that it found at contractors is exactly the same as last year. While not stellar, this is very healthy compared with the wider economy, and even within the construction and property sector as a whole. Hays reports just 1.8% salary growth across all industries in 2017, but 2.7% for construction and property professionals overall.
While demand and workloads remain for the moment healthy, the question for many employees is: do you have the nerve to make that job move you desire?
Site management
Construction (operational functions 鈥 site management) | ||||
---|---|---|---|---|
Senior site manager |
Site manager |
Assistant site manager |
General foreman |
|
Region |
|
|
|
|
East Midlands |
拢48,000 |
拢45,000 |
拢35,500 |
拢32,500 |
East of England |
拢50,000 |
拢43,000 |
拢31,000 |
拢30,500 |
Greater London |
拢63,500 |
拢51,500 |
拢42,000 |
拢36,000 |
North-east |
拢45,000 |
拢42,000 |
拢29,500 |
拢28,000 |
North-west |
拢49,000 |
拢43,000 |
拢33,000 |
拢29,000 |
Northern Ireland |
拢40,000 |
拢38,000 |
拢27,000 |
拢32,000 |
Scotland |
拢47,000 |
拢44,000 |
拢35,000 |
拢33,000 |
South-east |
拢62,000 |
拢51,500 |
拢39,000 |
拢35,000 |
South-west |
拢48,500 |
拢42,500 |
拢32,500 |
拢30,500 |
Wales |
拢45,000 |
拢40,000 |
拢30,000 |
拢30,000 |
West Midlands |
拢49,000 |
拢44,000 |
拢36,000 |
拢31,000 |
Yorkshire and Humber |
拢45,000 |
拢41,000 |
拢32,000 |
拢28,000 |
National average |
拢49,333&苍产蝉辫; |
拢43,792&苍产蝉辫; |
拢33,542&苍产蝉辫; |
拢31,292&苍产蝉辫; |
2016-17 change |
4% |
4% |
3% |
2% |
Calming down
The industry has seen workloads continue to grow modestly in 2017, despite the post-Brexit uncertainty, and demand for staff is still strong. But there is no doubt we are no longer in the frothy recruitment market of a couple of years ago, when Hays鈥 survey reported average salary growth peaking at 7.4%, more than twice its current level. Andy Steele, chief executive of London and South-east contractor Osborne, which increased staff salaries by on average 3% this year, says: 鈥淚t鈥檚 not as hot as it was 鈥 it鈥檚 fair to say it鈥檚 eased.鈥
At the same time, says Rick Lee, chief HR officer at contractor Willmott Dixon, the merry-go-round of senior staff at construction firms appears to have slowed. 鈥淐ompetition for staff has eased over the last year or two to some extent,鈥 he says, 鈥渂ut there are still competitive areas, particularly London.鈥
We have seen an increase in candidates accepting counter offers by their current employers rather than risk moving to a new company
Duncan Bullimore, Hays Construction
Into this gently cooling market have come the crises at two of the UK鈥檚 biggest contractors, Carillion and Interserve, potentially making many of their experienced hands consider their options. Those who do decide to jump ship can help meet demand from other employers. Osborne鈥檚 Steele says: 鈥淭he reality is that those firms become fishing grounds. We鈥檝e seen a greater influx of CVs from those firms, which have been historically difficult to get people out from.鈥
For employees outside Carillion and Interserve 鈥 which this week announced a round of redundancies 鈥 those contractors鈥 woes will feed concerns about how stable a new employer might be. This is a key consideration, when moving jobs entails losing the safety blanket of accrued redundancy entitlement at their current employer.
As well as Hays鈥 survey finding a steep fall in those looking to swap jobs, it also found that 鈥 after the remuneration package 鈥 job security is now the most important factor when considering a new role, cited by 21%. Steele says: 鈥淐andidates are definitely worried about job security and wider confidence in the market. They鈥檙e asking about workload 鈥 this is a pretty hot topic. It鈥檚 their longer-term security, not just what their salary is going to be.鈥
Quantity surveyor
Quantity surveyor | |||
---|---|---|---|
Senior QS |
Intermediate QS |
Assistant QS |
|
Region |
|
|
|
East Midlands |
拢55,000 |
拢44,000 |
拢30,000 |
East of England |
拢55,000 |
拢45,000 |
拢30,000 |
Greater London |
拢65,000 |
拢48,000 |
拢35,000 |
North-east |
拢47,000 |
拢40,000 |
拢26,500 |
North-west |
拢50,000 |
拢45,000 |
拢29,000 |
Northern Ireland |
拢50,000 |
拢40,000 |
拢32,000 |
Scotland |
拢52,000 |
拢41,000 |
拢24,000 |
South-east |
拢63,000 |
拢48,000 |
拢33,000 |
South-west |
拢54,500 |
拢43,500 |
拢31,000 |
Wales |
拢50,000 |
拢40,000 |
拢26,500 |
West Midlands |
拢51,000 |
拢40,000 |
拢29,500 |
Yorkshire and Humber |
拢54,000 |
拢40,000 |
拢25,000 |
National average |
拢53,875&苍产蝉辫; |
拢42,875&苍产蝉辫; |
拢29,292&苍产蝉辫; |
2016-17 change |
3% |
4% |
3% |
Estimator
Estimator on site | |||
---|---|---|---|
Senior estimator |
Estimator |
Assistant estimator |
|
Region |
|
|
|
East Midlands |
拢56,000 |
拢42,000 |
拢28,000 |
East of England |
拢56,000 |
拢47,000 |
拢31,000 |
Greater London |
拢69,000 |
拢51,000 |
拢36,000 |
North-east |
拢47,000 |
拢40,000 |
拢27,000 |
North-west |
拢60,000 |
拢50,000 |
拢30,000 |
Northern Ireland |
拢52,500 |
拢42,000 |
拢32,000 |
Scotland |
拢52,000 |
拢44,000 |
拢29,000 |
South-east |
拢65,500 |
拢50,500 |
拢31,500 |
South-west |
拢52,500 |
拢46,500 |
拢30,000 |
Wales |
拢51,500 |
拢42,500 |
拢29,500 |
West Midlands |
拢59,000 |
拢44,000 |
拢29,000 |
Yorkshire and Humber |
拢53,000 |
拢43,000 |
拢25,000 |
National average |
拢56,167 |
拢45,208 |
拢29,833 |
2016-17 change |
2% |
4% |
2% |
Warier of change
Anthony Brown, sales and marketing director at interiors contractor BW, which has grown from 85 to 200 staff in the last three years on the back of a new growth strategy and a healthy fit-out market, says even in this buoyant part of the industry job applicants are voicing concern. 鈥淲ith the economy in post-referendum mode it feels like there鈥檚 more of a chance of a harder end to this current cycle than people had anticipated,鈥 he says. 鈥淧eople are warier. They know the market won鈥檛 stay at this level for the next couple of years, so they want to make sure they鈥檙e making the right move.鈥
Duncan Bullimore, director of Hays鈥 construction arm, says this reticence to move is being felt even in the recruitment of the most senior staff. He says: 鈥淲e have seen an increase in candidates accepting counter offers by their current employers rather than risk moving to a new company, supporting fears around job security, as companies invest in retaining highly skilled staff 鈥 albeit reluctantly.鈥
However, any reduction in the willingness of professionals to move will serve to exacerbate continuing skills shortages for those employers that are looking to recruit. Bullimore says: 鈥淪kills shortages remain an issue. People think employee fears around job security will lead to less candidate availability in the market 鈥 thus making it harder for employers to access the talent they need.鈥
Candidates are [鈥 asking about workload 鈥 this is a pretty hot topic. It鈥檚 their longer-term security, not just what their salary is going to be
Andy Steele, Osborne
The paradox is that, while workers may be more cautious over moving at an uncertain economic time, there is still very strong demand for staff with the right skills. According to Hays鈥 survey, the roles with the biggest salary rises included site managers, senior site managers, estimators, contract managers and project managers 鈥 all of whom saw average salaries increase by 4%. Steele says that, in addition, bid managers (not covered by Hays鈥 survey) are in very high demand, with anyone at the 鈥渇ront end鈥 of the construction process involved in winning work highly sought after. In contrast, health and safety professionals and more junior estimators, QSs and site staff saw lower rises.
BW鈥檚 Brown also highlights estimators, bid managers and contract managers as particularly difficult to get hold of, while Willmott Dixon鈥檚 Lee agrees that estimators, along with QSs, are the 鈥渉ardest roles to recruit for鈥, with competition toughest in London and the South-east.
Steele says: 鈥淚鈥檇 say that 3-4% rises as an underlying figure might be about right, but that covers some significant spikes in some areas.
In normal trading to keep staff that鈥檚 the rise we鈥檝e seen, but people are moving for more substantial pay rises. For bid managers, for example, we鈥檝e seen 10% plus.鈥
The survey highlights the continuing impact of these skills shortages, with 22% of employers saying they do not have the right staff to achieve their current business objectives 鈥 barely any improvement on the 23% saying the same thing last year. More than two-thirds of employers said a shortage of suitable applicants is their biggest recruitment challenge, while 61% said skills shortages are impacting productivity and a third that they are holding back growth plans.
Project manager
Contract/project manager | ||
---|---|---|
Contract manager |
Project manager |
|
Region |
|
|
East Midlands |
拢59,000 |
拢53,000 |
East of England |
拢55,000 |
拢50,000 |
Greater London |
拢69,000 |
拢65,000 |
North-east |
拢51,000 |
拢44,000 |
North-west |
拢60,000 |
拢55,000 |
Northern Ireland |
拢48,000 |
拢44,000 |
Scotland |
拢57,000 |
拢55,000 |
South-east |
拢67,500 |
拢65,000 |
South-west |
拢57,500 |
拢55,000 |
Wales |
拢55,000 |
拢50,500 |
West Midlands |
拢58,000 |
拢52,000 |
Yorkshire and Humber |
拢53,000 |
拢48,000 |
National average |
拢57,500&苍产蝉辫; |
拢53,042&苍产蝉辫; |
2016-17 change |
4% |
4% |
Engineer
On-site engineers | ||
---|---|---|
Senior engineer |
Engineer |
|
Region |
||
East Midlands |
拢44,500 |
拢37,000 |
East of England |
拢42,000 |
拢34,000 |
Greater London |
拢53,000 |
拢42,000 |
North-east |
拢45,000 |
拢40,000 |
North-west |
拢50,000 |
拢39,000 |
Northern Ireland |
拢35,000 |
拢30,000 |
Scotland |
拢46,000 |
拢38,000 |
South-east |
拢45,000 |
拢40,000 |
South-west |
拢42,500 |
拢37,500 |
Wales |
拢45,000 |
拢36,500 |
West Midlands |
拢41,000 |
拢35,500 |
Yorkshire and Humber |
拢44,000 |
拢40,000 |
National average |
&苍产蝉辫;拢44,417&苍产蝉辫; |
&苍产蝉辫;拢37,458&苍产蝉辫; |
2016-17 change |
3% |
3% |
Seeking staff from outside the sector
Osborne鈥檚 Steele says: 鈥淚t鈥檚 now got to be about how we bring people with relevant skills sets in from other sectors, like teaching, even where they don鈥檛 yet have the technical qualifications. This is an urgent need now.鈥
However, while contractors may understand that meeting these ongoing shortages will require making the industry more attractive to those working in other sectors, actually doing so is still a work in progress.
On issues of most importance to so-called millennials, such as work-life balance, the industry performs worse than others, with fewer than half of employees saying their work-life balance was good, compared with a UK average of 55%. But Hays鈥 Bullimore says the evidence from the survey is that this is changing, with 59% of employers saying they now offer flexitime working, up from 46% last year, and 54% letting employees work from home if they need to, up from 48%.
Bullimore says: 鈥淓mployers in the industry are now more aware of the importance of offering flexible working options not only to help staff with their work-life balance, but also to help encourage more people into the industry, and help those who may be restarting their career after having a family. 鈥淎lthough the construction sector will remain different to many nine-to-five industries, employers are now helping by offering flexible working options.
For those already in the industry, however, whether or not to take the risk of that new job may be the biggest question.
Health and safety
Health and safety professionals | |||
---|---|---|---|
H&S director |
Senior H&S manager |
H&S manager |
|
Region |
|
|
|
East Midlands |
拢71,000 |
拢53,000 |
拢45,000 |
East of England |
拢65,000 |
拢50,000 |
拢38,000 |
Greater London |
拢95,000 |
拢70,000 |
拢55,000 |
North-east |
拢56,000 |
拢46,000 |
拢36,000 |
North-west |
拢65,000 |
拢52,000 |
拢43,000 |
Northern Ireland |
拢50,000 |
拢42,000 |
拢37,000 |
Scotland |
拢53,000 |
拢43,000 |
拢36,000 |
South-east |
拢83,000 |
拢58,000 |
拢50,000 |
South-west |
拢72,500 |
拢52,500 |
拢42,500 |
Wales |
拢60,000 |
拢49,500 |
拢37,500 |
West Midlands |
拢67,000 |
拢55,000 |
拢44,000 |
Yorkshire and Humber |
拢72,000 |
拢53,000 |
拢42,000 |
National average |
拢67,458 |
拢52,000 |
拢42,167 |
2016-17 change |
2% |
2% |
3% |
Postscript
Methodology
In early summer 2017 Hays surveyed more than 933 employees and 421 employers from contractors and multidisciplinary firms.
Salary data has been compiled using information gathered during 2017 from Hays offices across the UK; it is based on job listings, job offers and candidate registrations
Formerly deputy editor at 好色先生TV magazine, Joey has worked as a journalist in the sector for nearly two decades.
He currently has a special focus on the Housing Today publication, helping it deliver razor sharp news, analysis and insight.View full Profile
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