A new survey reveals the locations and job titles within the industry that command the most impressive wages and bonuses. Matilda Battersby reports.
Many of us would like to know what our bosses and colleagues are earning, but are too polite to ask. Now, thanks to exclusive research by executive search consulting firm Beaumont Bailey for 好色先生TV鈥檚 sister title Housing Today, you can get a reasonable guage.
Beaumont Bailey asked leaders at the largest 50 UK housebuilders questions about pay and job satisfaction, receiving 272 anonymous responses, offering insights into the salaries of 10 high level job titles within the sector.
Salary survey 2023 results
Salaries are presented as a regional average | Scotland | Yorkshire and North East | North West | Midlands (including East Anglia) | London | South East (Home Counties) | South West & Wales | Salary Average | Salary Ranges | Average Annual Bonus (shown as a % of salary) | Bonus Ranges |
---|---|---|---|---|---|---|---|---|---|---|---|
Regional chair / divisional MD | 拢232,000 | 拢242,000 | 拢244,000 | 拢262,000 | 拢289,000 | 拢271,000 | 拢219,000 | 拢251,000 | 拢219,000 to 拢325,000 | 98% | 85% to 125% |
Managing director | 拢169,000 | 拢174,000 | 拢183,000 | 拢191,000 | 拢220,000 | 拢188,000 | 拢156,000 | 拢183,000 | 拢140,000 to 拢250,000 | 69% | 40% to 150% |
Finance director | 拢110,000 | 拢108,000 | 拢102,000 | 拢119,000 | 拢133,000 | 拢125,000 | 拢114,000 | 拢121,000 | 拢82,000 t0 拢158,000 | 40% | 20% to 75% |
Development director | 拢109,000 | 拢125,000 | 拢123,000 | 拢119,000 | 拢182,000 | 拢143,000 | 拢117,000 | 拢131,000 | 拢85,000 to 拢263,000 | 49% | 15% to 105% |
Land & planning director | 拢107,000 | 拢110,000 | 拢124,000 | 拢115,000 | 拢160,000 | 拢130,000 | 拢140,000 | 拢126,000 | 拢90,000 to 拢175,000 | 56% | 30% to 105% |
Technical director | 拢108,000 | 拢105,000 | 拢105,000 | 拢110,000 | 拢149,000 | 拢124,000 | 拢103,000 | 拢115,000 | 拢86,000 to 拢168,000 | 52% | 20% to 100% |
Commercial director | 拢140,000 | 拢124,000 | 拢128,000 | 拢125,000 | 拢184,000 | 拢112,000 | 拢85,000 | 拢126,000 | 拢85,000 to 拢184,000 | 67% | 35% to 100% |
Construction/build director | 拢119,000 | 拢127,000 | 拢130,000 | 拢122,000 | 拢162,000 | 拢150,000 | 拢154,000 | 拢135,000 | 拢97,000 to 拢165,000 | 55% | 25% to 105% |
Project director | 拢97,000 | 拢114,000 | 拢119,000 | 拢105,000 | 拢133,000 | 拢121,000 | 拢107,000 | 拢114,000 | 拢80,000 to 拢153,000 | 44% | 20% to 75% |
Sales & marketing director | 拢135,000 | 拢125,000 | 拢108,000 | 拢107,000 | 拢117,000 | 拢130,000 | 拢138,000 | 拢123,000 | 拢88,000 to 拢161,000 | 66% | 20% to 120% |
The survey results reveal that a regional chair or managing director at one of the largest 50 UK housebuilders is paid 拢251,000 a year on average.
Almost half (98%) of that 拢251,000 income comes from bonuses, with regional chair and divisional MDs likely to receive a bonus of between 85% and 125% of their yearly salaries.
A regional chair or divisional MD based in London will receive the highest pay at 拢289,000 per year on average. But salaries for both job titles are well above 拢200,000 across the UK regions surveyed. The lowest salary in this bracket is in the South West and Wales region, at 拢219,000.
The research also reveals that the second-highest salaries among leaders in housebuilding are commanded by managing directors, who earn 拢183,000 on average including bonuses.
鈥淭he biggest takeaway from the survey is that there is still a lot of money to earn in this sector. The salaries are very healthy, as well as the bonuses,鈥 says Elliot Course, director of executive search at Beaumont Bailey.
Annual salary changes
Job title | 2023 | 2022 | % change |
---|---|---|---|
Managing directors | 183,000 | 180,000 | 1.6 |
Finance directors | 121,000 | 119,000 | 1.6 |
Development directors | 131,000 | 134,000 | -2.2 |
Land & planning directors | 126,000 | 121,000 | 4.1 |
Commercial directors | 126,000 | 122,000 | 3.2 |
Construction/ build directors | 135,000 | 130,000 | 3.8 |
Sales and marketing directors | 123,000 | 120,000 | 2.5 |
Note: Table based on 146 survey responses. Regional chair/Divisional MD, technical director and project director categories are excluded as there was a lack of data.
Salaries can feel quite an exposing thing to share. So, perhaps understandably, not all the survey respondents chose to share their salary information for 2022 compared with 2023.
The results from the 146 (54%) respondents who did spill the beans about their 2022 income, however, suggest that construction industry salaries remain steady.
鈥淎cross almost all job titles, there was a marginal increase in annual salaries,鈥 says Elliot. 鈥淭here was a slight annual bump in bonuses as well.鈥
Taking into consideration that inflation rose by more than 7% in the 12 months to June 2023, however, the results suggest that even the highest construction industry salaries have failed to keep pace with increases in the Consumer Price Index.
Development directors were the only roles whose average annual income had declined, the survey results suggest, with average salaries down 2.2% from 拢134,000 in 2022 to 拢131,000 this year.
Salaries for land/planning directors saw the biggest rise year-on-year, with a 4.1% increase.
John Anderson, group chief executive at Allison Homes, says he isn鈥檛 surprised salaries for land/ planning directors are healthy. 鈥淚f you don鈥檛 have enough land you don鈥檛 have a business,鈥 he says. 鈥淚t鈥檚 all about relationships and buying land at the right price. When the market place is particularly tough, these skills are incredibly important.鈥
Salary surprises
The survey revealed that development directors in London earned more on average (拢182,000) than managing directors in the South West and Wales (拢156,000) or in Yorkshire and the North East of England (拢174,000).
鈥淥ne London-based development director who responded to our survey was paid an annual basic salary of over 拢260,000, which is more than the highest paid managing director in the same region at 拢250,000,鈥 says Elliot.
Commercial directors in the South West and Wales had an average salary of 拢85,000, the lowest average for any of the roles surveyed.
Aside from managing directors or chairs, sales and marketing directors and commercial directors had the highest average bonuses, with some earning 120% of their salary.
However, Beaumont Bailey says potential bonus ranges for all director-level roles are 鈥渓ow compared to previous years鈥.
Elliot says: 鈥淭he past 12 months have certainly been challenging, with inflation, the cost-of-living crisis and rising interest rates all taking their toll on the wider UK economy. These macro-factors are all likely to have had an impact on the level of bonus offered by employers. Despite the challenges being faced, there are still examples where directors can earn 100%+ of their annual base salary in bonus.鈥
He adds: 鈥淚 envisage that bonuses will be hit harder next year, because of the way the market is now.鈥
The value of job satisfaction
The survey asked respondents about the three most important factors to their job satisfaction with a majority (58%) saying it was salary, followed by flexible working (49%) and strong leadership (43%).
Colin Cole, chief executive of Lion Court Homes, says: 鈥淐learly salary is an important aspect of the total remuneration package. However, job satisfaction is the key staff retention tool and that is based on creating the right culture.鈥
鈥淎part from salary and bonus, culture, flexible working and making employees shareholders have been fundamental to attracting the best people [to Lion Court].鈥
He adds: 鈥漌e need to do much more to attract new people into our industry, at all levels. Salary alone is not enough. Our industry has a lot to offer but I fear that we are not an attractive industry to attract the best new talent.鈥
Anderson believes one of the reasons salaries are high is that it鈥檚 difficult to recruit from outside the construction industry, which makes the skills of those who are already working in it more valuable.
鈥淚t鈥檚 quite rare for somebody to come into the industry and fully understand the industry to the extent that they can be a success quickly. Which is why growing our own talent from within our businesses is really the route to success for most housebuiders,鈥 he says.
鈥淗aving said that, staying with the same business for twenty or thirty years is now a rarity. But staying in the same industry is more common than it would be for other sectors. If you鈥檙e in telecoms, for example, it鈥檚 interchangeable, you can move into most other sectors. Same with finance.
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鈥淥nce you鈥檙e in housebuilding you tend to stay in housebuilding. [Housebuilders] need to value those people, to incentivise them not to want to leave, by paying them what they鈥檙e worth and creating a culture that suits them, is very important.鈥
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