the 2014 salary guide sharing our expertise A guide to salaries and recruiting trends for the New Zealand building industry.

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1 the 2014 salary guide sharing our expertise A guide to salaries and recruiting trends for the New Zealand building industry.

2 CONTENTS 4 Foreword 6 Salary vs location of company base - North Island 7 Salary vs location of company base - South Island 8 Salary vs project size 9 Salary vs construction type 10 Salary vs annual turnover 11 Industry trends Length of average working week Gender of workforce Methods of recruitment Use of contract staff Average length of service Business activity Benefits Ease of recruitment Thank you We would like to express our gratitude to all the people who participated in the collection of data for this year s survey. Your contribution has ensured that we can produce an informative document to help support your business decisions. Our gratitude is extended to the following for overseeing the preparation of this guide: Rick Mason, Chief Executive, NZIOB Warren Chapman, National President, NZIOB David Cleet, Senior Business Manager, Hays Construction Copyright The NZIOB and Hays Construction, New Zealand, June No part of this publication may be produced or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without permission. Published by Hays Construction Level 12, PWC Tower 188 Quay Street Auckland, NZ, 1010 Disclaimer The NZIOB in conjunction with Hays Construction has produced the Salary Guide as a value added service to the building and construction industry. Whilst every care is taken in the collection and compilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced in total or by section without written permission from Hays. Neither the NZIOB nor Hays Construction accept any responsibility for actions or outcomes that are deemed to be based on information contained in this publication. 2 NZIOB Salary Guide 2014 NZIOB Salary Guide

3 David Cleet Senior Business Manager, Hays Construction New Zealand has been labelled the rock star economy of 2014 and the construction sector has contributed strongly to this forecast. Off the back of the Canterbury rebuild, construction is going through a period of sustained growth, envisaged to last several years. Unsurprisingly then, 80 per cent of employers report increased business activity over the last year, and an encouraging 90 per cent forecast further increases over the coming 6 to 12 months. In other positive news, hiring intentions and jobs filled have increased dramatically over the year with more people entering the construction industry jobs market. But for many employers, the skills shortage remains the key inhibitor to growth. As the rebuild moves into the construction phase, salaries in Christchurch have seen some of the sharpest increases nationally. This is most obvious when it comes to Quantity Surveyors, Estimators and Senior Project Managers. As highly prized candidates in short supply, these professionals have been able to command rises of between 5 and 15 per cent. In comparison, salary increases in Auckland have been more modest and are generally in line with inflation. There have been a few notable increases above 5 per cent, although this will change as high demand continues for intermediate Quantity Surveyors, Estimators and Project Managers. These professionals are sought as companies look to increase headcount and recruit future managers. Auckland is already experiencing a residential construction upsurge in response to the housing shortage, while commercial construction is more positive with tower cranes again dotting the skyline. Numerous high value developments are underway or in planning. While salary pressure has been evident in Wellington, employers have only offered minimal salary increases, similar to Auckland. Looking ahead, infrastructure projects will drive growth and add extensive demand pressure to an already tight labour market. Mega infrastructure projects will see a flood of resources but even this will not be able to satisfy the demand that already exists as a result of seismic upgrades and improvements to the commercial and residential market. The year ahead will see a trifecta of salary pressure; high demand, increased workload and a deepening skills shortage. Employers will need to balance this salary pressure with project budgets in an attempt to attract and retain key staff, otherwise they risk losing out on the top talent. Rick Mason Chief Executive, New Zealand Institute of Building The NZIOB is pleased to have collaborated with recruiting experts Hays for the past ten years on this annual Salary Guide, which provides an important source of salary information to the construction sector in New Zealand. The 2014 Guide will be an invaluable tool for construction industry professionals, for both career and business planning. FOREWORD The number of projects currently underway, or in the planning stages, in New Zealand together with the calibre of senior personnel that will be required to complete those projects, makes this Salary Guide a must have for companies looking to hire or retain responsible and competent construction staff. In addition the sector commentary provides a current view of the changes affecting the New Zealand construction industry job market. 4 NZIOB Salary Guide 2014 NZIOB Salary Guide

4 SALARY VS LOCATION: NORTH ISLAND SALARY VS LOCATION: SOUTH ISLAND Position Northland Auckland Waikato Bay of Plenty Taranaki Wellington East Coast Cadet 45,000 45,000 40,000 40,000 40,000 45,000 45,000 Leading Hand 55,000 60,000 55,000 55,000 50,000 60,000 55,000 Foreperson 65,000 70,000 70,000 70,000 70,000 70,000 70,000 Site Manager 85,000 90,000 85,000 85,000 80,000 85,000 75,000 Project Manager 100, , , , ,000 Snr Project Manager/Project Director 120, , , , , , ,000 Construction Manager 140, , , , , , ,000 QS - Junior (3 yrs exp) 45,000 55,000 50,000 50,000 50,000 55,000 50,000 QS - Intermediate (2-5 yrs exp) 65,000 80,000 75,000 75,000 70,000 80,000 70,000 QS - Senior (5 yrs + exp) 100, , , ,000 95, ,000 95,000 Junior Estimator 45,000 55,000 50,000 50,000 50,000 55,000 50,000 Intermediate Estimator 70,000 75,000 75,000 70,000 75,000 80,000 70,000 Senior Estimator 115, , , , ,000 Commercial Manager 135, , , , , , ,000 General Manager 170, , , , , , ,000 Project Engineer 95, ,000 95,000 95,000 90, ,000 90,000 Planner 90,000 95,000 90,000 90,000 90, ,000 90,000 Business Development Manager 100, , , , , , ,000 Health & Safety Manager 90,000 95, , ,000 95, ,000 85,000 Sustainability Manager 80,000 85,000 75,000 75,000 80,000 85,000 80,000 Position Tasman Christchurch Southland West Coast Otago Cadet 40,000 45,000 45,000 40,000 40,000 Leading Hand 55,000 60,000 55,000 50,000 50,000 Foreperson 65,000 75,000 65,000 65,000 65,000 Site Manager 80,000 85,000 80,000 80,000 80,000 Project Manager 95, ,000 95, ,000 Snr Project Manager/Project Director 130, , , , ,000 Construction Manager 140, , , , ,000 QS - Junior (3 yrs exp) 55,000 60,000 50,000 50,000 55,000 QS - Intermediate (2-5 yrs exp) 75,000 80,000 75,000 70,000 80,000 QS - Senior (5 yrs + exp) 100, , , ,000 Junior Estimator 50,000 60,000 45,000 45,000 50,000 Intermediate Estimator 75,000 80,000 75,000 75,000 80,000 Senior Estimator 120,000 Commercial Manager 135, , , , ,000 General Manager 160, , , , ,000 Project Engineer 80,000 90,000 85,000 80,000 80,000 Planner 85,000 95,000 90,000 90,000 90,000 Business Development Manager 105, , , , ,000 Health & Safety Manager 90,000 95,000 85,000 95, ,000 Sustainability Manager 75,000 85,000 80,000 75,000 75,000 SALARY INFORMATION 6 NZIOB Salary Guide 2014 NZIOB Salary Guide

5 SALARY VS PROJECT SIZE SALARY VS CONSTRUCTION TYPE Position Under $5M $5M to $15M $15M to $50M $50M + Cadet 40,000 40,000 45,000 50,000 Leading Hand 60,000 60,000 70,000 70,000 Foreperson 70,000 70,000 80,000 75,000 Site Manager 85,000 90, , ,000 Project Manager 90, , ,000 Snr Project Manager/Project Director 105, , , ,000 Construction Manager 120, , , ,000 QS - Junior (3 yrs exp) 50,000 55,000 55,000 55,000 QS - Intermediate (2-5 yrs exp) 75,000 80,000 80,000 85,000 QS - Senior (5 yrs + exp) 90, , ,000 Junior Estimator 50,000 50,000 55,000 55,000 Intermediate Estimator 70,000 80,000 80,000 80,000 Senior Estimator 90, , ,000 Commercial Manager 125, , , ,000 General Manager 145, , , ,000 Project Engineer 90, , ,000 Planner 80, , ,000 Business Development Manager 100, , , ,000 Health & Safety Manager 80,000 95, ,000 Sustainability Manager 85,000 90, , ,000 Position Civil Engineering Commercial Fitout & Refurbishment Residential Government/ Local Authority Industrial Cadet 40,000 45,000 40,000 40,000 45,000 40,000 Leading Hand 60,000 60,000 60,000 55,000 60,000 60,000 Foreperson 70,000 70,000 70,000 70,000 70,000 70,000 Site Manager 80,000 85,000 80,000 80,000 85,000 85,000 Project Manager 115, ,000 95, ,000 Snr Project Manager/ Project Director 150, , , , , ,000 Construction Manager 140, , , , , ,000 QS - Junior (3 yrs exp) 50,000 55,000 55,000 50,000 55,000 55,000 QS - Intermediate (2-5 yrs exp) 75,000 80,000 80,000 70,000 75,000 75,000 QS - Senior (5 yrs + exp) 100, , ,000 90,000 95, ,000 Junior Estimator 50,000 55,000 55,000 50,000 55,000 55,000 Intermediate Estimator 75,000 75,000 75,000 70,000 75,000 80,000 Senior Estimator 105, , ,000 90, ,000 Commercial Manager 150, , , , ,000 General Manager 170, , , , , ,000 Project Engineer 95, ,000 80,000 80, , ,000 Planner 100, ,000 90,000 80,000 95,000 90,000 Business Development Manager 120, ,000 90,000 85, ,000 Health & Safety Manager 95,000 95,000 90,000 85,000 90,000 95,000 Sustainability Manager 90,000 80,000 70,000 65,000 85,000 80,000 8 NZIOB Salary Guide 2014 NZIOB Salary Guide

6 SALARY VS ANNUAL TURNOVER Position $1M to $10M $10M to $50M $50M + Cadet 40,000 45,000 45,000 Leading Hand 60,000 70,000 70,000 Foreperson 70,000 75,000 75,000 Site Manager 85,000 95,000 95,000 Project Manager 105, , ,000 Snr Project Manager/Project Director 115, , ,000 Construction Manager 140, , ,000 QS - Junior (3 yrs exp) 50,000 55,000 55,000 QS - Intermediate (2-5 yrs exp) 75,000 80,000 80,000 QS - Senior (5 yrs + exp) 95,000 95,000 Junior Estimator 45,000 55,000 55,000 Intermediate Estimator 70,000 80,000 85,000 Senior Estimator 125, ,000 Commercial Manager 120, , ,000 General Manager 140, , ,000 Project Engineer 100, ,000 Planner 90, , , , ,000 85,000 Sustainability Manager 80,000 75, ,000 SALARY INFORMATION SECTION TWO: INDUSTRY TRENDS Business Development Manager Health & Safety Manager Construction surges ahead While salaries lag behind 10 NZIOB Salary Guide 2014 NZIOB Salary Guide

7 INDUSTRY TRENDS INDUSTRY TRENDS 1. What is a typical working week within your organisation? 5. Did you use contract staff for labour positions? 1% 26% 72% 1% 85% YES 15% NO 60+ hours hours hours Less than 40 hours 2. Gender of the management workforce: 6. How will this use of contract staff (both labour and management) continue for the next 12 months? 57% 81% Male 19% Female 31% 8% 4% Increase Stay the same Decrease Don t know 3. What mediums do you use to recruit staff? 7. Average length of service: 71% 69% WORD OF MOUTH 68% 44% 16% AGENCY WEBSITE NEWSPAPER OTHER 2% 15% 39% 31% 13% Multiple choices allowed. Less than 1 year 1-2 years 3-5 years 5-10 years 10 years plus INDUSTRY TRENDS 4. Did you use contract staff for management positions? 58% YES 42% NO 8. Over the past 12 months business activity has: 80% Increased 13% Remained the same 7% Decreased 12 NZIOB Salary Guide 2014 NZIOB Salary Guide

8 INDUSTRY TRENDS INDUSTRY TRENDS 9. In the next 6-12 * months the general economic outlook is expected to: 11. Ease of recruitment: 89% 9% 2% STRENGTHEN REMAIN STATIC WEAKEN Leading Hand 13% Very difficult 34% Hard Foreperson 25% Very difficult 39% Hard Site Manager 23% Very difficult 35% Hard 46% Manageable 34% Manageable 39% Manageable 7% 2% 3% 10. Benefits: Percentage of respondents that received particular benefits listed Quantity Surveyor 30% Very difficult Estimator 38% Very difficult Cadet/Entry-Level 23% Very difficult 47% Hard 38% Hard 12% Hard Vehicle Mobile phone Health Super Bonus Other benefits Cadet 0% 57% 28% 21% 39% 3% Leading Hand 20% 63% 21% 20% 20% 10% 23% Manageable 0% 23% Manageable 1% 43% Manageable 42% Foreperson 71% 88% 15% 11% 35% 10% Site Manager 81% 94% 18% 12% 39% 14% Project Manager 81% 97% 17% 15% 44% 15% Snr Project Manager/Project Director 78% 95% 18% 20% 49% 15% Construction Manager 82% 98% 20% 18% 58% 18% QS - Junior (3 yrs exp) 11% 70% 33% 33% 48% 7% QS - Intermediate (2-5 yrs exp) 25% 80% 22% 25% 52% 10% QS - Senior (5 yrs + exp) 69% 94% 27% 21% 56% 12% Project Manager 21% Very difficult 54% Hard 23% Manageable Architect 11% Very difficult 19% Hard 51% Manageable Junior Estimator 0% 62% 31% 25% 37% 6% Intermediate Estimator 17% 75% 21% 12% 46% 8% 2% 19% Senior Estimator 63% 86% 25% 19% 46% 14% Commercial Manager 80% 92% 29% 29% 66% 16% General Manager 88% 98% 32% 19% 65% 30% Project Engineer 28% 83% 28% 28% 67% 17% Engineer Senior Manager Planner 40% 90% 50% 20% 80% 10% Business Development Manager 65% 90% 20% 20% 60% 35% Health & Safety Manager 55% 85% 30% 18% 44% 11% Sustainability Manager 44% 78% 22% 22% 67% 22% Other 50% 50% 50% 50% 50% 50% 20% Very difficult 30% Hard 45% Manageable 5% 27% Very difficult 45% Hard 25% Manageable 3% INDUSTRY TRENDS * Data collected during April NZIOB Salary Guide 2014 NZIOB Salary Guide

9 Auckland Level 12, PWC Tower 188 Quay Street Auckland, 1010 T: E: South Auckland Level 6, Bldg 5, Central Park, Great South Road Penrose, Auckland, 1061 T: E: Wellington Level 3, Featherston House, Featherston Street Wellington, 6011 T: E: Christchurch Ground Floor, 131 Victoria Street Christchurch Central Christchurch, 8013 T: E: Copyright Hays Specialist Recruitment Pty Ltd (New Zealand Branch registered number ) HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc. The Corporate and Sector H devices are original designs protected by registration in many countries. All rights are reserved. The reproduction or transmission of all or part of this work, whether by photocopying or storing in any medium by electronic means or otherwise, without the written permission of the owner, is restricted. The commission of any unauthorised act in relation to the work may result in civil and/or criminal action. hays.net.nz

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