Construction & Property 2014 Salary & Employment Insights The Rocky Road to Recovery

Transcription

1 1 The Rocky Road to Recovery

2 2 Contents UK Overview 3 Adapting to the changing economic conditions 4 The rocky road to recovery 5 Uncertainty versus the upturn 7 The ticking time bomb The employer/employee disconnect 9 About Hudson 10 Market Overview 11 Salary Tables 13 Construction Contracting 13 Consultancy Services 16 Estates, Facilities & Asset Management 19

3 3 UK Overview Welcome to the Hudson Salary and Employment Insights Review for The document begins with an overview of the UK recruitment market as a whole, before focusing in more detail on the construction and property market. As your recruitment partner and adviser, we take great pride in our in-depth knowledge of the marketplace, and also the factors currently affecting it, including general economic conditions and the expectations of organisations and their people. We hope you will find this review both interesting and useful in terms of planning and implementing recruitment activity in the year ahead, or enhancing your own career options. Iain Atkinson Associate Director

4 4 UK Overview Adapting to the changing economic conditions After a number of challenging years for the UK recruitment sector caused by difficult economic conditions, there were signs of an upturn in many areas during These improvements were not spectacular - indeed the general mood could best be described as one of cautious optimism - but there were encouraging indications that businesses were more willing to invest in new talent, and that candidates were adopting a rather less risk-averse approach to seeking out and considering new opportunities. The exact nature of the improvements varies by sector and by geographical area, and for some companies it will take a lot more than a glimpse of the much-vaunted green shoots of recovery to persuade them to abandon the rigorous focus on scaling back and cost cutting which has been the prevailing corporate culture for so many organisations in recent times. The evidence we are seeing is that many companies now realise that, in business development terms, standing still is only an option for a limited period, while other organisations already need to staff up to service project wins in the light of general improvements in market conditions in their particular sector. Against this background, there are two key questions for 2014 and beyond. The first is are employers ready - in recruitment terms - to adapt to the changing economic conditions and equip themselves with the people they need for the next stage of their development? The second is are employees ready - and willing - to take advantage of the new opportunities that a recovering economy will create? 72% of respondents said that colleagues are being always or mostly replaced when they leave a company 69% of respondent s workloads have been redistributed among the remaining team members

5 5 UK Overview The rocky road to recovery 18% of staff thought that a sound appraisal system is a good employee retention tool Hudson conducted an in-depth survey to try to ascertain what companies and candidates think of the changing economic environment, and its likely impact on them. We looked at its effect on work practices, compensation and benefits and, equally importantly, on employee engagement, morale, loyalty and job seeking behaviour. Our findings overall suggest that, recruitment wise, the road to recovery could be rather a rocky one for employers. The evidence is that while many businesses are focused on what the revival could mean to them in terms of increased revenue and profits, they have taken their eye off the ball where staff morale and retention issues are concerned. At the same time, employees are beginning to look for other jobs because they have more confidence in the market. And our survey has also revealed a fundamental difference between the retention strategies that organisations feel will work effectively, and what employees are actually looking for. A key place to begin an analysis of these findings is the fact that 64 per cent of employers in the survey said they believe the recruitment market in 2014 will be more candidate driven. In other words, the emphasis will move away from the buyer s market scenario that has existed in many sectors in recent years, and it will be more difficult for organisations to find, attract or retain high calibre people. At the same time, 40 per cent of candidates in the survey told us that the economic upturn is giving them more confidence to look for another job, with 45 percent anticipating a job change in the next 12 months and 25 per cent actively seeking a job at the moment. 25 per cent of employees say they feel insecure or very insecure in their current position, and more than half of respondents (55 per cent) said that they had experienced increased pressure in the workplace over the last year. Add to this the fact that a quarter of employees (25 per cent) said they were having to work more hours than 12 months ago, and 39 per cent were reporting that workplace morale had got worse over the same period, and it is clear that there is now some inherent volatility in the marketplace. 64% believe the market will be candidate driven 40% are more confident in looking for another job 45% are anticipating a job change in the next 12 months 25% of candidates are actively seeking a job at the moment 2014 Recruitment 64% 40% 45% 25% Market

6 6 UK Overview The rocky road to recovery These figures however don t tell the whole story, because in 2012, 48 per cent of employees were saying morale had got worse in their organisation, and 40 per cent were actively looking for a job. In addition, 49 per cent of people in this year s survey say they feel secure or very secure in their current role - 10 per cent more than last year - and job satisfaction levels have also gone up to 52 per cent from 46 per cent last year. Furthermore, 39 per cent of respondents also said they felt more engaged with their job and workplace, and 61 per cent would actually recommend their employer to a friend. Nevertheless, the survey reveals that there is certainly a significant core group of people for whom a change of employment status is very much on the cards within the next 12 months. This will put pressure on employers to try and fill vacancies at a time when the market dynamic could well be changing, with demand starting to exceed supply in some areas, and shortages emerging for some of the most in-demand skill sets. Over time, if people cannot be found for key positions, this could inevitably have a negative impact on the ability of organisations to take full advantage of the improved economic conditions. Evidently, one course of action that employers can take to prevent this problem - at least in part - is to keep hold of their key people by having effective staff retention strategies in place. However, our survey has shown that what businesses are offering in this area is not always what is most valued by employees. For example, 63 per cent of employees say that good career progression opportunities are the critical factor in them remaining with an organisation, yet only 26 per cent feel that their company offers them. There is a very similar difference of opinion over mentoring schemes, which are valued by employees but not as widely available as they would like to see. Conversely, only 18 per cent of staff in the survey thought that a sound appraisal system is a good employee retention tool, yet 55 per cent of employees offer one. Of course, most employee decisions on whether to seek a new opportunity remain salary driven, and the survey reveals that 35 per cent of candidates would move for a salary increase of 6-10 per cent, without promotion. In the workplace 49% 52% 39% 61% 63% 35% of people feel secure or very secure in their current role of people feel satisfied in their current role of people feel more engaged with their job of people feel they would recommend their employer to a friend of people say that good career progression opportunities are critical of people would move for a salary increase of 6-10 per cent, without promotion

7 7 UK Overview Uncertainty versus the upturn But even in the far from perfect recent economic conditions, 30 per cent of respondents had still actually received a pay rise of up to 5 per cent in their existing roles, although 8 per cent had seen their salary decrease. 16 per cent of employees had not been given a pay rise for two years but, rather more encouragingly, 56 per cent of people are expecting a salary increase of up to 10 per cent over the next 12 months, significantly up on the 45 per cent who said the same thing this time last year. Perhaps surprisingly in the light of market conditions around four in ten employees still received a bonus in 2013, although mainly of a relatively modest nature in the 1-5 per cent bracket. Benefits packages, bonus payments and pensions remain the most valued extra with employees, followed in order of importance by health benefits, flexible working arrangements and above-average annual leave. Our survey responses from employees reinforce the general impression of an upturn in the recruitment market in 2013, with 41 per cent of people saying they had seen an increase in headcount in their workplace over the past 12 months, compared with a figure of 33 per cent in % of people say they had seen an increase in headcount in their workplace over the past 12 months Equally encouragingly, almost three quarters of respondents (72 per cent) said that colleagues are being always or mostly replaced when they leave the company. However, when people are not replaced, the burden can fall on their previous colleagues. In 69 per cent of cases their workload was redistributed among the remaining team members, according to respondents.

8 8 UK Overview Uncertainty versus the upturn Looking at career development and planning, 64 per cent of employees had been in their permanent role for less than two years. However 10 per cent of people in a contracting or interim position had actually been in the same role for more than two years! In terms of the optimum time to stay in a role 2-3 years was the most popular period with respondents (34 per cent) followed by 3-4 years (21 per cent), 1-2 years (16 per cent) and 4-5 years (13 per cent). 15 per cent of employees thought more than 5 years was best. Meanwhile, company responses to the survey reveal that 49 per cent of employers believe that there has still been uncertainty in the market in their particular sector. As a result, 13 per cent said they had implemented a freeze on new hires for all roles, although this figure has gone down from 18 per cent last year. Rather more encouragingly, 47 per cent of companies had increased headcount in the last 12 months, 10 per cent more than last year. 30 per cent had seen employee numbers remain the same, and only 23 per cent had seen a decrease. Where headcount went up, 81 per cent of firms said it was due to genuine growth, with 58 per cent of employers believing there is further growth potential in their businesses over the next 12 months. Overall, 49 per cent of companies said their total headcount will increase in 2014, compared with 37 per cent who were of the same opinion this time last year. In terms of remuneration packages, 84 per cent of companies said they had awarded pay rises within the last two years, although 3 per cent admitted that it had been more than five years since they last gave a rise. 81 per cent expected to award rises when they next review pay. Optimum time to stay in a role 34% 21% 2-3 years 3-4 years 16% 1-2 years 13% 4-5 years 15% more than 5 years

9 9 UK Overview The ticking time bomb The employer/employee disconnect There is a clear difference of opinion between employers and employees on the reasons for salary increases. 52 per cent of employees believe they deserve a rise to maintain their standard of living, however only 9 per cent of employers cite this as the reason they do it. Instead, 69 per cent of companies say they award rises in order to keep hold of high performing staff. Perhaps reflecting something of the same impetus, 58 per cent of businesses plan to award bonuses in the next 12 months, up from 47 per cent last year. However, once again the survey provides evidence of a disconnect between employers and employees in terms of overall benefits packages. While 75 per cent of companies believe they are offering appropriate reward and recognition to staff, only 51 per cent of employees believe this to be the case. Clearly, this and other similar issues highlighted by the survey need to be addressed, because as market conditions continue to improve, it is vital that the expectations of organisations and candidates are closely aligned to ensure maximum business development and growth and the continued revival in the fortunes of the UK economy. 52% of employees believe they deserve a pay rise to maintain their standard of living 69% of companies say they award pay rises in order to keep hold of high performing staff 58% of businesses plan to award bonuses in the next 12 months Key priorities for employers in 2014 and beyond will include developing staff retention strategies that are more valued by employees, and also increasing investment in training and development programmes to enable them to become more self-sufficient in the key skills they require in the future. Methodology The Hudson salary survey of employers and employees was conducted online over a three-week period in December Current salary information has been obtained from Hudson s internal database and quality checked against survey data. In-house recruitment specialists and company directors were interviewed to obtain their experiences of current market trends in order to compile the regional and sector-specific market overviews.

10 10 About Hudson Hudson is a global talent solutions company with expertise in leadership and specialised recruitment, contracting solutions, recruitment process outsourcing, talent management, outplacement and ediscovery. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. With approximately 2,000 people in 20 countries, and relationships with millions of specialised professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. Our construction and property consultants recognise the requirement for top talent across the development, design, planning and build phases of construction projects and the ongoing asset management of portfolios. Our dedicated consultants operate as specialists within the construction and property market. Having worked in the construction and property sector for over 20 years, Hudson has a strong and enviable track record within the sector. With this knowledge we are well placed to truly partner with clients and candidates alike. We source the right talent for companies to develop and achieve their business strategies and providing genuine career development opportunities for professionals within the construction and property sector. Key sectors we recruit for include: Development Planning Architecture Consulting Engineering Project, Cost & Construction Consultancy Civil Engineering Residential Property Consultancy Main Contracting Public Sector Estates, Facilities & Asset Management Chartered Surveying

11 11 77% Market Overview of professionals expect a salary increase in the next 12 months Following a challenging number of years in the construction and property sector in Scotland there were clear signs of an upturn in the market in the second half of 2013 and this positive trend looks set to continue in According to the Royal Institution of Chartered Surveyor (RICS) Economic Research paper, The Outlook for the Construction Sector, revised official data suggests that construction output grew by 2.6% in both Q2 and Q and that output had grown by around 1% during the first three quarters relative to the same period a year earlier. What was apparent was a noticeable increase in activity across multiple areas in the second half of the year, as companies sought to staff up to service project wins. Previously companies had scaled back their resources and focused on cost cutting but now as a result of winning new projects the focus has shifted to project based recruitment, across both permanent and temporary staff in order to deliver. The result of this upturn was a significant year-on-year rise in job volumes, and the experiences of our construction and property specialists in recent months are also being reflected in the latest surveys and reports from leading industry bodies. According to the Federation of Master Builders (FMB), the increase in activity in the Scottish construction sector in the last quarter of 2013 was the largest across the UK. Respondents to a recent FMB survey revealed extremely positive results, some of the most encouraging results for nearly six years in terms of their current levels of employment, workloads and enquiries. Meanwhile, the RICS has also recently reported that house building is showing continued signs of revival in Scotland. This has been particularly evident with the large scale housebuilders, who have refinanced and are now both building out existing land banks as well as actively pursuing strategic land for the medium to long term. Data suggests that new orders for private housing were 34% higher in the first three quarters of 2013 relative to the same period of 2012 and housing starts have reflected this, up 23% over the same period. In contracting, it is worth noting though that in general these positive signs of recovery are currently more widespread among the major players in the industry. For example those organisations with links to major public sector let contracts. These include the Scottish Futures Trust s model of delivery of projects via the five regional hubco s, major NPD projects, Health Facilities Scotland s framework and significant civil engineering works being carried out on behalf of Transport Scotland and Network Rail.

12 12 84% Market Overview of companies said they had awarded pay rises within the last two years What is apparent is that a number of SME contractors are still finding the market extremely challenging, both in terms of workload and significant margin pressure. There remains a relatively low level of commercial investment in the Scottish market, particularly prevalent in Central Scotland, and this has also had an impact on the property consultancy sector and in turn filters through all aspects of the construction and property supply chain. However, there has been some activity within the hotel and leisure sector, speculative office development and privately funded student accommodation, providing some evidence of investment coming back into the Scottish market. Planning consultancy, architecture and consulting engineering, as a result of the upturn in the market, have seen good levels of growth, albeit in certain disciplines we are still some way off the levels experienced prior to the economic crash. In particular, the architectural market remains subdued, although those practices supporting public sector contracts are performing better, but there remains, major financial pressures on practices. A recent report, published by the Scottish Government, on the Annual State of NHS Scotland Assets and Facilities, estimates backlog maintenance in the region of 858 million, with the figures revealing ten hospitals alone in Scotland requiring 360 million of work to be carried out. This level of backlog maintenance and the subsequent capital and maintenance programmes required to realign the estate will be, in some sense, welcome news to both facilities management contractors and the construction industry as a whole. Against a general background of market optimism, we have seen an upturn in demand across a wide range of skill sets from companies active in the above sectors. While permanent job volumes are encouraging, we have seen substantial increases in interim opportunities, linked to short-term project wins and urgent delivery requirements. Within contracting we have seen significant demand for project managers, site engineers, estimators, quantity surveyors and design management staff. Across the consultancy markets, both chartered engineers and chartered surveyors, up to five years post qualified, remain the most sought after. This is perhaps reflective of the market dynamic over the last number of years and the limited number of individuals who managed to achieve chartered status within their respective disciplines and migration of employees to more buoyant international locations. In terms of the candidate pool, we have certainly seen some relaxation in the risk averse mood which had prevailed for several years. Where people had previously been playing safe, staying in a reasonable job rather than looking for a new position at a time of economic uncertainty, we saw more construction and property professionals willing to overcome their innate caution and consider new opportunities during the year. Recent research published by RICS in The Outlook for the Construction Sector paper predicts a growth of 4% over 2014, with private housing and infrastructure to be key drivers and skills shortages beginning to emerge. If this trend continues as projected, then further skills shortages will arise causing major challenges in the sector. This will also see salaries and contractor rates for some roles creep up after several years of stagnant and often reduced remuneration levels. Indeed this was very evident for certain core skillsets towards the end of Overall the signs are positive, which is why we believe that both employers and individuals who have managed to weather the storm of recent years, have every reason to be optimistic about the prospects for 2014 and beyond, albeit cautiously.

13 13 Construction Contracting Salary Tables

14 14 Construction Contracting Salary Tables Permanent ( Per Year) Contract/Temporary ( Per Hour) Role Minimum Maximum Minimum Maximum Site Engineer 25,000 35, Senior Engineer 35,000 43, General Foreman 28,000 34, Assistant Site Manager 25,000 28, Site Manager 30,000 38, Senior Site Manager 35,000 42, Project Manager 40,000 50, Senior Project Manager 50,000 63, Contracts Manager 55,000 65,000 N/A N/A Project Director 75,000 95,000 N/A N/A Construction Director 90,000 90,000 + N/A N/A Planner 30,000 45,000 N/A N/A Senior Planner 45,000 60,000 N/A N/A Planning Manager 50,000 70,000 N/A N/A Pre-Construction Manager 50,000 70,000 N/A N/A

15 15 Construction Contracting Salary Tables Continued Permanent ( Per Year) Contract/Temporary ( Per Hour) Role Minimum Maximum Minimum Maximum Commercial Manager 50,000 70,000 N/A N/A Commercial Director 65,000 85,000 N/A N/A Estimator 30,000 45,000 N/A N/A Senior Estimator 45,000 60,000 N/A N/A Design Manager 40,000 50, Design Director 60,000 75,000 N/A N/A Assistant Quantity Surveyor 18,000 25, Quantity Surveyor 25,000 30, Project Surveyor 30,000 42, Senior Surveyor 40,000 50, Business Development Manager 45,000 65,000 N/A N/A Business Development Director 65,000 80,000 N/A N/A Bid Manager 45,000 60,000 N/A N/A Bid Director 65,000 90,000 N/A N/A

16 16 Consultancy Services Salary Tables

17 17 Consultancy Services Salary Tables Permanent ( Per Year) Contract/Temporary ( Per Hour) Role Minimum Maximum Minimum Maximum Architecture Architectural Technician 16,000 25, Senior Architectural Technician 25,000 32, Part I Qualified Architect 15,000 20,000 N/A N/A Part II Qualified Architect 20,000 25, Architect 26,000 35, Project Architect 28,000 34, Associate 36,000 45,000 N/A N/A Director 45,000 45,000 + N/A N/A Graduate ( Per Year) Chartered ( Per Year) Senior ( Per Year) Associate ( Per Year) Director ( Per Year) Consultancy Services Minimum Maximum Minimum Maximum Minimum Maximum Minimum Maximum Minimum Maximum Property Consultancy 20,000 26,000 28,000 33,000 33,000 40,000 45,000 55,000 55,000 55,000 + Cost Management 18,000 23,000 28,000 32,000 32,000 40,000 42,000 52,000 50,000 50,000 + Building Consultancy 18,000 23,000 27,000 32,000 33,000 38,000 42,000 52,000 55,000 55,000 + Project Management 20,000 24,000 28,000 32,000 35,000 45,000 43,000 50,000 60,000 60,000 + Planning Consultancy 18,000 22,000 25,000 28,000 28,000 35,000 35,000 45,000 45,000 45,000 +

18 18 Consultancy Services Salary Tables Continued Permanent ( Per Year) Contract/Temporary ( Per Hour) Role Minimum Maximum Minimum Maximum Consulting Engineering Mechanical & Electrical Engineering/Building Services Building Services CAD Technician 20,000 30, Graduate Engineer 18,000 23,000 N/A N/A Engineer 25,000 33, Senior Engineer 34,000 41, Associate 42,000 47,000 N/A N/A Associate Director 48,000 55,000 N/A N/A Director 55,000 55,000 + N/A N/A Civil/Structural Engineering CAD Technician 22,000 27, Senior CAD Technician 28,000 33, Graduate Engineer 18,000 23,000 N/A N/A Engineer 25,000 30, Senior Engineer 31,000 38, Associate 39,000 45,000 N/A N/A Associate Director 48,000 55,000 N/A N/A Director 55,000 55,000 + N/A N/A

19 19 Estates, Facilities & Asset Management Salary Tables

20 20 Estates, Facilities & Asset Management Salary Tables Permanent ( Per Year) Contract/Temporary ( Per Hour) Role Minimum Maximum Minimum Maximum Mechanical Maintenance Engineer 22,000 27, Electrical Maintenance Engineer 22,000 27, A/C Engineer 25,000 30, Commercial Gas Engineer 25,000 30, Multi-skilled Engineer 25,000 30, Facilities Co-ordinator 20,000 24, Building Manager 23,000 28, Maintenance Supervisor 24,000 28, Maintenance Manager 27,000 34, Facilities Manager 25,000 33, Contracts Manager 30,000 35,000 N/A N/A Operations Manager 40,000 45,000 N/A N/A Account Manager 38,000 45,000 N/A N/A Regional Operations Manager 42,000 48,000 N/A N/A Operations Director 52,000 60,000 N/A N/A Account Director 52,000 60,000 N/A N/A Space Planner 28,000 36, Capital Projects Manager 38,000 46, Project Director 65,000 85,000 N/A N/A Assistant Director of Estates 55,000 65,000 N/A N/A Director of Estates 80, ,000 N/A N/A Director of Campus Services 90, ,000 N/A N/A

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