Blue Arrow Salary Survey
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1 Blue Arrow Salary Survey 2012/2013 In Partnership with:
2 Introduction In a time of great economic change, Blue Arrow understand the importance of continued market analysis to ensure clients and candidates alike are receiving financial and service based rewards in alignment with market expectations. Our comprehensive study of the market has highlighted some encouraging trends, positioning the recruitment market as a whole as relatively optimistic. Companies are hiring and are planning to continue hiring over the next year, with a positive move towards more permanent hires. In the following document you will find detailed statistical analysis of UK recruitment trends in relation to geographical spread, permanent and temporary hiring, benefits and legislative changes, with detailed analysis into sectors and individual job roles. It is clear that employers are working harder to increase staff benefits as a focus on attracting, retaining and developing quality candidates becomes paramount. Key skills amongst candidates are becoming increasingly scarce as top talent is snapped up by those organisations willing to invest. Blue Arrow would like to thank everyone who took the time to complete the survey.you have provided valuable opinions on the year ahead and enabled us to deliver this insightful information which we trust will be used as a valuable management tool for many recipients. In Partnership with:
3 Salary Survey The Headlines The results from the Blue Arrow Salary Survey 2012/13 have highlighted a number of key findings, including: Companies in the South & East, Wales and Midlands & West are planning to recruit the highest number of new permanent staff over the next year, with a predicted 31% of respondents from each region planning to recruit Companies within the South & East region plan to take on larger numbers of both temporary and permanent staff compared to other regions London is the only area where a single company plans to take on more than 500 permanent staff over the next year On balance, more companies plan to reduce temporary worker numbers than increase them Just under half of companies now offer 25 days holiday or more, with 11% offering 29 days or more Agency Workers Regulations have influenced the recruitment plans of over 25% of companies surveyed
4 Overview In total, over 500 people completed the survey, with a broad geographic spread across the UK (see Chart 1 below) and a wide range of industries (see Chart 2). 3% 12% Chart 1: Geographic spread 38% 23% London Midlands & West North Scotland South & East Wales 15% 9% Chart 2: Industry representation 3% 6% 4% 6% 7% 7% 1% 3% 3% 10% 4% 16% 9% 8% 3% 10% Agriculture, Fishing & Forestry Catering & Hospitality Construction & Housing Creative Services Customer Service & Clerical Driving, Logistics & Supply Chain Education Engineering & Manufacturing Facilities Management & Building Services Healthcare & Nursing Professional Services Public Sector & Not For Profit Recruitment & HR Retail, Lifestyle, Travel, Leisure & Tourism Sales Science & Alternative Energy Chart 3: Number of employees The vast majority of respondents represented either smaller companies (with under 50 employees) or larger companies (with over 1000 employees), providing an interesting insight into small vs large companies (see Chart 3). 26% 4% 5% 9% 13% 31% 12% Under In Partnership with:
5 Salary Survey Most of the organisations who responded to our survey (93%) employ the majority of their staff on a permanent basis, with just 7% employing the majority of their staff on a contract, temporary or freelance basis (see Chart 4). Chart 4: On what basis are the majority of your staff employed? 7% 93% Permanently On Contract / Temporary / Freelance basis Recruitment Plans Looking towards the future, the good news is that many companies across the country plan to recruit new permanent staff over the next year, with the South & East region coming out top overall, showing that the economic growth in this area looks stronger than in other parts of the country (Chart 5). Whilst 43% of respondents from the South & East plan to recruit over the coming year, only 3% of respondents from Wales and 5% of respondents from the North plan to expand their permanent workforce over the coming year - showing a clear North/ South divide. Chart 5: Geographic spread of companies planning to employ more permanent staff over the next year London Midlands & West Looking at the numbers in greater detail, Chart 6 shows us that 10% of companies in the South & East plan to recruit 100 or more permanent members of staff, whilst 59% plan to recruit smaller numbers of five or fewer permanent members of staff over the coming year. Chart 6: Number of planned permanent recruits in the South & East region 43% 3% 28% 3% 10% 15% 8% 26% 5% 59% North Scotland South & East Wales < 5 6 > > >
6 Overall, the South & East region also plans to recruit a greater number of permanent staff per organisation (Chart 7 below) than other areas of the country. Chart 7: Predicted number of permanent staff increases Wales South & East Scotland North > > 99 6 > 49 < 5 Midlands & West London Number of companies 15% of respondents said that their companies plan to increase the number of temporary staff over the next year, 61% plan to maintain current levels, whilst 24% planned to decrease temporary staff levels (Chart 8). Chart 8: Does your company plan to increase, decrease or maintain temporary staff levels over the next year? 24% Decrease Increase Stay the same 61% 15% In Partnership with:
7 Salary Survey The same geographic bias towards recruitment growth is once again reflected in the planned recruitment of temporary staff over the next year, with the South & East region planning the highest levels of recruitment overall (Chart 9 below). However, companies seeking to recruit the highest numbers of new staff are located in the North and Midlands & West regions, showing some tentative signs of positive economic growth in these areas. Chart 9: Predicted number of temporary staff increases Wales South & East Scotland North > > 99 6 > 49 < 5 Midlands & West London Agency Workers Regulations Looking more broadly at the recruitment industry, Blue Arrow asked respondents if the Agency Workers Regulations (AWR) had impacted upon their recruitment plans (Chart 10). Just over a quarter of respondents said the new regulations had moderately or significantly influenced their recruitment plans, whilst the remaining three quarters said it hadn t affected their plans at all. Chart 10: Has AWR influenced your recruitment plans? 23% 5% Moderately Significantly Not at all 72%
8 Industry Pay Levels The Salary Survey not only looked at recruitment plans, it also reviewed pay scales and benefits across a range of key industries. Catering & Hospitality Within the Catering & Hospitality industry the most prevalent temporary jobs reflected the flexible nature of the industry and its requirement to respond to peak demands. Common roles include Waiters and Waitresses, Cleaners and Housekeepers. Chart 11 below shows the typical hourly rates paid to people working within the Catering & Hospitality industry. 54% of these salaries fall within the 5 to 7.49 per hour rate for jobs such as Waiters, Waitresses, Cleaners and Kitchen Porters. Chart 11: Hourly rates of pay for Catering & Hospitality staff 27% 54% per hour per hour 10+ per hour 19% Breaking this data down further in Chart 12 below, we can see that the vast majority of lower paid jobs fall within the Front of House Junior roles with the higher paid jobs (paying 15 per hour or more) focused on Front of House Managers and Senior Chefs, who bring with them more experience and knowledge. Chart 12: Hourly rates of pay for Catering & Hospitality staff by role Front of House Jnr Front of House Manager Cleaner Chef Jnr Chef Snr Kitchen Jnr In Partnership with:
9 Salary Survey Looking at the permanent side of Catering & Hospitality recruitment in Chart 13, you can see that the pattern of temporary pay levels is reflected within permanent salaries for Junior Front of House staff. Senior Chef and Front of House Manager roles command a much higher salary of 25,000 or above, with a bias towards these higher pay levels in the South & East and Scotland as shown within our survey data (see Chart 14). Chart 13: Salary levels of permanent roles within the Catering & Hospitality sector k - 14,999 15k - 19,999 20k - 24,999 25k+ Front of House Jnr Front of House Manager Cleaner Chef Jnr Chef Snr Kitchen Jnr Chart 14: 25,000+ salary distribution 17% 9% London Midlands & West 36% Scotland South & East Wales 34% 4%
10 Driving & Distribution Salary levels for permanent staff working within the Driving & Distribution sector show that lower paid jobs are those being filled by general Drivers or Drivers Mates (Chart 15). The vast majority (55%) of Drivers paid over 25,000 according to this survey were LGV C+E Drivers, proving that there are clear career (and therefore salary) progression opportunities within the field of Driving & Distribution. Chart 15: Salary levels of permanent roles within the Driving & Distribution sector k - 14,999 15k - 19,999 20k - 24,999 25k Tonne Driver Category C1 Drivers Mate LGV C Driver LGV C+E Driver LGV Hiab Transport Yardsman/ Category C Office Shunter Looking at a regional level in Chart 16, once again the majority (52%) of workers paid 25,000 or more per annum were employed within the South & East region, with the Midlands & West coming in second at 36%. With the Midlands & West being a key logistics hub for the UK, and a number of significant airports and seaports located within the South & East region coupled with a higher cost of living, these higher pay levels will help to guarantee the retention of good staff locally. 8% Chart 16: 25,000+ salary distribution 4% 36% London Midlands & West Scotland South & East 52% In Partnership with:
11 Salary Survey Industrial, Manufacturing & Warehousing The Industrial, Manufacturing & Warehousing sector covers a broad range of careers from Labourers and Assembly Line Workers through to Quality Inspectors and Plasterers, which is reflected in the broad range of permanent salaries reported in our survey. Most of the careers that fell within the 25,000 and over category were skilled jobs such as Electricians, Fork Lift Truck Operators, Welders and Logistics Controllers, with the bulk of the lower paid jobs comprising Pickers, Packers, Assembly Line Workers and Production Operatives (Chart 17). Chart 17: Spread of pay within Industrial, Manufacturing & Warehousing Sector 18% 10% 26% 10k - 14,999 15k - 19,999 20k - 24,999 25k+ 46% When analysing a smaller sample of responses (Chart 18), we compared pay levels for Production Line Operatives and Pickers/Packers to see how pay levels at the lower end of the pay scale differed. Whilst respondents from the South & East employed a greater number of Production Line Operatives at the lower end of the pay scale, it was London, the Midlands & West and the North that paid higher permanent salaries, whilst Wales, South & East and Scotland paid the lowest levels. The best paid jobs fell within the Engineering sector, suggesting a greater level of skill was required by the Production Line Operatives an observation which was reflected in their levels of pay. Chart 18: Geographic spread of pay within Industrial, Manufacturing & Warehousing Sector k - 14,999 15k - 19,999 20k - 24,999 25k South & East Midlands & West London Wales Scotland North
12 Secretarial & Admin Data from our survey shows that of all of the sectors surveyed, the Secretarial and Admin Sector has the greatest number of higher paid permanent jobs overall, with 49% of jobs paying 20,000 per annum or more (see Chart 19 below). Chart 19: Spread of pay within Secretarial & Admin Sector 19% 13% 10k - 14,999 15k - 19,999 20k - 24,999 25k+ 30% 38% This data is broken down further in Chart 20, showing that it is not only senior Admin jobs, such as Team Leaders and Office Manager roles that command in excess of 25,000 per annum, a wide range of mid-level Admin roles and Sales jobs also reach this higher salary level. Chart 20: Salary spread of differing Secretarial & Admin roles Benefits ,000-14,999 15,000-19,999 20,000-24,999 25,000+ Sales Junior Admin Admin Senior Admin When considering a new job, potential employees not only consider the salary on offer, they also consider the additional benefits that come with a job, such as holiday days, health care and bonus schemes. We asked a number of businesses what benefits they currently offered their permanent staff, starting with the most common benefit paid holiday days. Chart 21 shows the breakdown of holiday days offered by companies. Just over half of all respondents (52%) offered 20 to 24 days holiday, with 11% offering 29 days or more to their staff. Of the 11% of companies offering 29 holiday days it was small enterprises (comprising 50 staff or less) or larger enterprises (with 1,000 staff or more) that were more likely to offer enhanced holiday benefits. In Partnership with:
13 Salary Survey Chart 21: Number of holiday days Days Days Days 31+ Days 37% 6% 5% 52% Looking beyond holiday days, a smaller number of companies offered specific benefits to staff, with the four most popular being bonuses, flexible working, pensions and training & development. Only 3% of our respondents claimed to offer a company car, and 2.4% a car allowance. A small number of businesses offer a wider range of benefits including health care (4.2%), dental care (0.6%) and gym membership (1.4%). Chart 22: % of companies offering benefits Bonuses Car Childcare Allowances Vouchers Company Car Dental Care Flexible Working Gym Life Membership Assurance Pensions Private Medical Insurance Restaurant / Lunch Vouchers Save As You Earn Scheme Share Options Training & Travel Development Insurance Overall, the most commonly offered benefits are those that help to develop the workforce further, or are relatively low cost (but still popular) options. Conclusion We are living in changing times but there are signs of growth in the future. The recent Agency Workers Regulations have had an impact on a significant proportion of companies, and undoubtedly changed their approach to recruitment, potentially reducing the number of temporary jobs on offer in the workplace. Blue Arrow remains committed to working closely with companies to deliver the right staff to meet their individual requirements, meanwhile providing our candidates with the best possible jobs and working environments. We will continue to monitor the marketplace and share our insight with others to help develop understanding around sector growth and requirements. We would like to thank our partners for supporting this exercise, and we hope to carry out surveys together in the future to continue our market analysis.
14 Partners We are proud to have the Craft Guild of Chefs as the Catering & Hospitality partner for the Blue Arrow Salary Survey Established in 1965 as a Guild of the Cookery and Food Association, the Craft Guild of Chefs has developed into the leading Chefs Association in the UK and has many members worldwide. Members come from all aspects of the food service and hospitality sectors working in a wide variety of positions from students and trainees to top management. No other association boasts such a broad and experienced membership. Aims and objectives As an association representing the interest of chefs, their aims are clear: To increase standards of professional cooking through greater awareness, education and training To develop careers and prospects of members To help members develop and maintain their knowledge, skills and ability To promote and participate in all levels of craft skills competitions in the UK and internationally To work with industry, education and the media to win greater recognition for chefs and their profession To endorse and promote the use of British and European produce, working with suppliers and manufacturers to create innovative menus and recipe ideas In Partnership with: We are proud to have AA DriveTech as the Distribution & Driving partner for the Blue Arrow Salary Survey AA DriveTech is the UK s leading provider of driver training, assessment and driver awareness schemes. Focusing on experienced car, van and professional PCV and LGV drivers, their business divisions offer specialist education that meets the needs of private, business and commercial drivers... and makes a difference. Established in 1990, AA DriveTech is one of the largest fleet risk management & driver education companies in the UK. Based in Basingstoke, Hampshire they also have significant training facilities close to the Transport Research Laboratories (TRL). The company became part of the AA Group in July 2009.
15 Salary Survey We are proud to have Toyota as the Industrial, Manufacturing and Warehousing partner for the Blue Arrow Salary Survey Toyota s decision to establish a manufacturing operation in Europe was announced in 1989 and Toyota Manufacturing UK was established in December that year. There are two manufacturing plants in the UK representing a total investment in excess of 2 billion and currently approximately 3,100 members are employed. The vehicle manufacturing plant is located at Burnaston in Derbyshire, the engine manufacturing plant is located at Deeside in North Wales. The first car, a Carina E, drove off the Burnaston production line on 16 December The Avensis replaced the Carina E in 1997 and in 2008 the third generation Avensis was launched. In 1998 a second model, the Corolla, was introduced and in 2001 the new generation Corolla was launched. In 2007, production of Auris, the new Toyota hatchback, started replacing Corolla. Production of the Auris Hybrid, the first full mass-produced hybrid in Europe, began in The processes at Burnaston include stamping, welding, painting, plastic mouldings and assembly and at Deeside machining, assembly and aluminium casting. We are proud to have Jobs & Careers magazine as the Secretarial & Admin partner for the Blue Arrow Salary Survey Jobs & Careers is a recruitment and training guide aimed at galvanising the most self-motivated, career-minded and proactive job-seekers across the country with expert advice on how to succeed in getting that job and taking the next step on the career ladder via national and regional print and digital editions, website and newsletter covering the majority of the UK through an extensive and growing list of distribution partners and columnists, which includes the likes of: Blue Arrow, National Careers Service, National Apprenticeship Service, Remploy, Career Transitions Partnership (CTP/RFEA), Training and Development Agency for Schools (TDA), Twin UK, Rathbone, National Union of Students (NUS), Engineering UK, City & Guilds, British Chambers of Commerce, Army Careers, universities, libraries and more. Never miss an issue - sign up here:
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