2015 SALARY GUIDE. RICS Chartered Surveyors

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1 2015 SALARY GUIDE RICS Chartered Surveyors

2 Contents 2015 Salary Guide 1 Contents 2 Directors Commentary 3 Key Trends Affecting Recruitment 4 Financial Performance 4 Skills Shortage 4 Remuneration Trends 5 Strategy 5 Bonuses 5 Counteroffers 5 Current Remuneration Packages 6 Corporate Real Estate, Property Management and Asset Management 6 Agency, Development, Lease Advisory, Valuation and Rating 6 Building Surveying 6 Forecast 7 Page 2 of 7

3 Directors Commentary Behind every great business is great people. Savvy businesses know they must both attract the best and retain the best in order to thrive. As both the job market and property markets continue to improve across the UK regions, the demand from property companies for good staff throughout the Midlands has started to considerably outweigh the supply of good available people. With unemployment returning to pre-recession figures and low levels of post-recession graduate recruitment, the available talent market appears to be shrinking relative to demand. The best candidates are now receiving multiple offers and counteroffers. Identifying, attracting and retaining the best people is now a very real challenge for many hiring managers. The Middleton Jones 2015 Salary Guide can help you secure and retain the property sectors top talent throughout the Midlands region. It includes up to date information on remuneration, benefits, work place issues, the current hiring outlook and a forecast for the year ahead. You can use this salary guide to develop accurate budgets, establish salary benchmarks and remuneration packages, formulate recruitment criteria and stay up to date with the latest market trends within a competitive recruitment market. The information is sourced through our observations of job listings, job offers and candidate registrations, giving a unique and honest insight in to recruitment trends throughout the Birmingham property market. Regards, Robert Pratt Page 3 of 7

4 Key Trends Affecting Recruitment Financial Performance Every year we analyse over 40 company financial accounts for the major property consultancies, most of whom have an office in the Midlands (where full financial accounts have been submitted). In 2015, the year on year results showed an overall headcount increase of 8.36%, an increase in turnover of 20.24% and an increase in pre-tax profits of 17.41%. As financial results across the sector improve, confidence in the market has improved. Companies are now investing in growth initiatives and increasing headcount. During the recession, many companies adopted a conservative approach to business and where necessary scaled back and cut costs. Companies had been running with no spare human capacity. As market confidence continues to increase, companies are required to increase headcount to enable more resources on business development and also to help deliver the work for new clients brought in to the business. Skills Shortage Demand for skilled chartered surveyors has intensified, especially across specialist areas rather than generalist jobs. At present, the most consistent demand comes from building surveying, property and asset management, corporate real estate and valuation. The demand for those with experience in development has increased as more projects get underway, especially for valuation surveyors with development appraisal experience. Despite the increase in demand, there remain barriers to entry for individuals as demand for non-chartered surveyors remains low. Amplifying this factor has been reduced graduate levels with those passing their APC to achieve chartered status is often in single figures for the Birmingham market. Those who pass their APC are very quickly receiving promotions and pay rises taking them immediately in to Senior Surveyor category. Page 4 of 7

5 Remuneration Trends Strategy Businesses have been divided on remuneration strategies with some employers recognising that increased levels have are now required to attract and retain the top talent, while others have been much slower to react to the changing recruitment landscape. Some of the slower reacting firms have been trying to rely solely on their brand to attract new staff. In general this strategy has had little success and vacancies have remained vacant for several months with little interest from relevant individuals. On the reverse, companies who have been quick to react to market changes have had a lot more success in recruiting top quality staff. Overall salaries are starting to rise across the Birmingham property market as more firms are willing to increase their salary offerings to new recruits. Many firms are now willing to pay market rate rather than stay within a rigid salary structure. Bonuses Bonuses currently vary considerably between firms; some firms are paying as little as 3% bonuses or even still paying 0% bonuses, whilst others are now paying out 25% bonuses across all seniority levels and others up to 50% bonuses at Director levels. We have also started to see organisations willing to offer sign on bonuses in an attempt to overcome any financial obstacles that might be in place. Counteroffers There was a trend throughout the recession for companies to not offer promotions and pay rises until people tried to resign as a means of keeping salary costs down and profit margins up. At the time this had some success as candidate chose to remain with existing employers due to a lack of confidence in the property job market. However, whilst counteroffers are now to be expected on virtually all occasions from employers, this strategy appears to be having little impact in the retention of staff; confidence has dramatically increased and many candidates are now wise to his approach and consider the offer to be too little too late. Page 5 of 7

6 Current Remuneration Packages Corporate Real Estate, Property Management and Asset Management Role Min Max Additional Average Day Rate Graduate 20,000 26,000 Basic Benefits 120 Surveyor 28,000 32,000 3,500 Car Allowance + Bonus + Senior Surveyor 32,000 39,000 4,500 Car Allowance + Bonus + Associate Director 40,000 55,000 5,500 Car Allowance + Bonus + Director / Salaried Partner Senior Director / Equity Partner Executive Board Director 55,000 75,000 6,500 Car Allowance + Bonus + 75,000 90,000 6,500 Car Allowance + Bonus + + Shares 90, ,000 7,500 Car Allowance + Bonus + + Shares Agency, Development, Lease Advisory, Valuation and Rating Role Min Max Additional Average Day Rate Graduate 20,000 26,000 Basic Benefits 120 Surveyor 28,000 32,000 3,500 Car Allowance + Bonus Senior Surveyor 32,000 39,000 4,500 Car Allowance + Bonus Associate 40,000 55,000 5,500 Car Allowance + Bonus Director Director / 55,000 75,000 6,500 Car Allowance + Bonus Salaried Partner Senior Director / Equity Partner 75,000 90,000 6,500 Car Allowance + Bonus + + Shares 425 Building Surveying Role Min Max Additional Average Day Rate Graduate 20,000 26,000 Basic Benefits 120 Surveyor 28,000 32,000 3,500 Car Allowance + Bonus + Senior Surveyor 32,000 55,000 4,500 Car Allowance + Bonus + Associate Director 40,000 65,000 5,500 Car Allowance + Bonus + Director / Salaried Partner Senior Director / Equity Partner 55,000 75,000 6,500 Car Allowance + Bonus + 75,000 90,000 6,500 Car Allowance + Bonus + + Shares Page 6 of 7

7 Forecast With year on year growth experienced by most companies and across the market, and with an increased skills shortage, we expect salaries will continue to rise as companies become more competitive in the war to attract talent. Demand for staff in all areas of surveying is likely to continue to improve, but this will mostly be seen in specialist and focused roles rather than in full broad general practice role. Companies are demanding their staff to become even more specialist. Hiring managers will continue to fail in their attempt to fill vacancies if they do not acknowledge these issues. Recruitment methodologies will likely require more headhunting rather than database or advertised searching in order to obtain the right people, although this approach is a lot more time consuming. Page 7 of 7