CONTRACTORS SAlARy Guide 2010

Transcription

1 CONTRACTORS Salary Guide 2010

2 CONTENTS Introduction 01 Overview 01 Looking forward 03 Overview - Professions 03 Overview - Job satisfaction 05 Survey results 06 Methodology 08 Salary tables 09

3 COnfidence slowly returning to the industry Overview Andrew Bredin, managing director at Hays Construction, comments: Despite being one of the sectors hardest hit by the recent economic downturn and an overall drop in salaries across all disciplines, demand for experienced professionals within the construction sector has continued over the last few years. Employers have been in the fortunate position whereby they have been able to effectively cherry-pick the candidates they want, but only for certain roles. For other posts that are high in demand, such as estimators, employers have to compete with one another to secure the best available talent, and that means offering competitive salaries. Senior health & safety managers, for example, with recognised industry qualifications and evidence of continual professional development remain in demand and have seen a six per cent salary increase year-on-year. Both senior estimators and senior buyers are two key roles where there is an acute skills shortage and these professionals have experienced salary increases of 2.4 per cent and 1.5 per cent respectively year-on-year. Estimators, in particular, have long been in demand due to a chronic shortage of professionals, particularly with NHS and other public sector experience, while the salary increase for buyers at senior level represents a significant reversal of fortunes on both 2008 and 2009 levels. On the flip side, there are a number of professions which have been less fortunate. Quantity surveyors across all levels have seen the greatest fall in salaries over the last 12 months, with senior quantity surveyor earnings falling by nearly five per cent, while their assistant quantity surveyor colleagues have seen their salaries drop by almost eight per cent. Planners haven t fared too well either with senior planners and assistant planners seeing their salaries cut by 0.50 per cent and three per cent respectively. Foremen and site agents have been the hardest hit of all disciplines. Salaries for general foremen have dipped by six per cent, and site agents have encountered salary decreases of nearly 14 per cent on average. This is indicative of what has been a difficult twelve month period within the industry - a year largely characterised by the suspension of many construction projects and fewer sites operating. Projects Andrew Bredin, managing director at Hays Construction, comments: Representing some 40 per cent of the construction industry s turnover, the public sector remained fairly resilient over the past twelve months with many projects brought forward in anticipation of expected spending cuts proposed by both the incumbent and new government. In the future it is projects like the Olympics that will provide a work stream and opportunities for experienced estimators, skilled buyers, health & safety professionals and site and project managers. Similarly, Crossrail s construction on the Olympics, Thameslink, East and North London lines will continue to have a positive influence on the engineering market while demand for professionals with design management, planning and pre-contract commercial experience will ensure this continues over the next two years. However, in the government s bid to tackle the country s crippling budget deficit, existing spending decisions and commitments have been reviewed with more than 90bn of capital spending cut between now and 2014 even the Olympics has felt the pinch. Spending cuts aside, demand for specialist expertise remains high for engineers in particular to design, manage and support some of the major projects already underway, such as Network Rail s eight-year, 1bn electrification scheme that began in 2009 and the 100 million electrification of lines between Liverpool and Manchester. Those contractors with specialist skills are likely to benefit from salary increases as demand continues. Contractors salary guide

4 It is interesting that despite the cuts and the larger pool of candidates, employers still have concerns about recruiting the right skills. 2 Contractors salary guide 2010

5 Looking forward Andrew Bredin, managing director at Hays Construction, comments: The industry s response to the downturn has largely been measured and considered, but the sweeping cuts in public spending announced by the new Chancellor has forced many construction firms who depend to a large extent on public contracts to focus their efforts on securing privately funded projects. While a significant number of employers (74%) have seen an increase in the number of speculative applications made with 40 per cent reporting a rise in applications to jobs advertised over the last six months, 1 in 3 construction employers plan to hire new workers before the end of the year either as a replacement or for a new role. So confidence is returning, albeit slowly. Both employers and employees agree that the construction sector is expected to remain in recession this year, before returning to modest growth in Although almost half (49%) of employers have no plans to recruit additional staff before the end of the year, almost 1 in 5 (18%) plan to do so. The biggest obstacle they expect to encounter will be job seekers unrealistic salary expectations (52%), followed by a shortage of experienced applicants (44%) coupled with a shortage of qualified applicants (28%). It is interesting that despite the cuts and the larger pool of candidates, employers still have concerns about recruiting the right skills. Overview - Professions Health and safety Aine Flood, senior manager at Hays Senior level professionals, who are commerciallyorientated with strong client-facing skills, and can add value to an organisation combined with the ability to create innovative solutions to overcome problems and challenges, are in demand There remains a shortage of suitably qualified and experienced health & safety professionals, and those with recognised industry qualifications and evidence of continual professional development are sought after A high proportion of employers have introduced pay cuts and reduced hours as cost-saving measures Cuts in public spending have reduced demand for interim and temporary workers while competition for senior roles remains high While salaries have remained steady, clients are seeking cost-effective solutions. Although the benefits available to employees within this market are still very basic, with the majority of people not receiving a bonus over the last year, candidates are staying in their roles as confidence to move to a new company remains quite low Clients want to see business focused health and safety professionals who can add value to an organisation and create innovative solutions to overcome problems and challenges Estimators/quantity surveyors/planners Lynne Crowe, manager at Hays Both senior level estimators and quantity surveyors are highly sought after, with a notable increase in demand since the turn of the year, especially those with NHS and other public sector experience Contractors salary guide

6 Chartered status remains an invaluable commodity in the current market, with experienced and qualified surveyors able to command higher salaries Senior level demand is exacerbated by the lack of training for new entrants, although some employers are recruiting people with a HND/HNC into junior roles and training them in-house Bid managers and experienced business development professionals with estimating skills have seen a sharp increase in job flow due to the need to win and secure competitive tenders, particularly for NHS frameworks such as ProCure 21 With the increased demand to keep costs to a minimum, quantity surveyors continue to be in demand by companies involved in largescale projects such as those already earmarked for the 2012 Olympics, despite the profession experiencing a drop in salary over the last twelve months Engineers Stephen Owens, manager at Hays The outstanding talent pool of experienced engineers is now dwindling on the open market and employers are re-engaging with recruiters and taking advice on salaries to attract the best candidates on the best terms Surveyors - John Jannaway, manager at Hays Chartered status remains an invaluable commodity in the current market, with experienced and qualified surveyors able to command higher salaries Applicants need to have excellent CVs, are expected to have a solid track record working in the UK and strong client-facing skills The water and energy sectors are providing opportunities for quantity surveyors Site managers/project managers/buyers Lynne Crowe, manager at Hays Salaries for operational workers have suffered throughout the period and competition for posts has increased significantly. Demand has remained strong in certain areas of construction, particularly on the commercial side Senior site and project managers may have suffered most in terms of a fall in salary compared to other construction professionals, but despite a sluggish start to 2010 the demand for managers that specialise in housing, public sector regeneration and other major civil construction projects is increasing and expected to continue throughout the latter half of 2010 and into 2011 Buyers with extensive experience and who are skilled at negotiating are in demand prompted by the overriding requirement for both public and private sector construction projects to minimise expenditure 4 Contractors salary guide 2010

7 Survey results Job satisfaction The most important factor for employees when considering a new role was the basic salary being offered, with 26 per cent of all respondents placing this as their priority superseding interesting and engaging work (15%) which took precedence last year and is of equal importance to the security of the employing company (15%) in this year s survey. Length of contract (11%) and the potential for career development (9%) also figure within candidates top five priorities. This suggests that job seekers recognise that the sector will take some time before returning to the buoyant, bonus, pre-recession days of 2007 and beyond. The indication is that most workers accept that bonuses have largely been suspended for the foreseeable future and have become focused on securing a good basic salary with an employer who can offer genuine job security, both in the short and long term. Most important aspect of role (employee perspective) Base salary 26% Security of employing company Interesting/engaging work 15% 15% Length of contract 11% Potential for career development 9% Relaxed working environment Location/commute 7% 7% Good relationship with colleagues 4% Don t care, will take anything Flexible hours Opportunity to develop skills 2% 2% 2% Contractors salary guide

8 Most important benefits The key benefits that employers cite as being most sought after by new employees are a joining bonus (83%), followed by car/car allowance (40%), generous annual leave (33%) and share incentives (33%). Private healthcare (30%) and a contributory pension (30%) are also much sought-after benefits by job seekers. The key benefits that employers consider as most important for retention are generous pay/annual leave (100%), followed by training support (83%), a flexible benefits package (78%), life insurance (75%) and private healthcare with a contributory pension (both 70%). This is indicative of the current economic climate with deadlines and budgets for major construction projects such as the Olympics and Crossrail programmes under intense scrutiny. While a number of firms remain relatively cashstrapped and unable to offer higher salaries or bonuses, they can add value to their temporary, contract and permanent workers overall package with benefits offering enough flexibility to be seen as attractive. Benefits Most Critical To Employee Recruitment/Retention Generous annual leave Contributory pension 44% 43% 56% 57% Recruitment Retention Health insurance 40% 60% Life insurance 50% 50% Private healthcare 42% 58% Flexible benefits package 32% 68% Car/car allowance 44% 56% Share incentives 44% 56% Joining bonus 10% 90% Generous parental pay/leave 25% 75% Training support pay/leave 39% 61% 6 Contractors salary guide 2010

9 Cost containment Many employers have introduced a series of cost-cutting measures over the last year. Pay freezes (96%) and reduced bonuses (88%) have become almost widespread throughout the sector, followed by reduced benefits offered (67%), the introduction of flexible working (43%), reduced working hours (17%) and reduced salaries (16%). Interestingly, more than 1 in 3 (38%) of employers are currently considering reducing pension contributions, while others are deliberating whether to implement flexible working (29%). And a significant number of employers may consider introducing a shorter working week (88%), unpaid sabbaticals (71%) or reduced hours (67%). This is reflective of employers remaining cautiously optimistic about the economic prospects of the construction industry with consistent recovery not expected until When asked, unpaid sabbaticals (100%), followed by job-sharing (75%), flexible working (71%) and shorter working weeks (71%) were the top costcutting measures that employees would be willing to consider if offered. While only 1 in 3 (33%) would consider accepting a reduced salary or a pay freeze (30%). Cost-Saving Strategies Introduced By Employers Shorter work-weeks Unpaid sabbaticals 17% 11% 6% 39% 56% 72% Have already implemented this We are currently considering this We might consider this in the future Job-sharing 5% 42% 53% Temporary layoffs 17% 38% 58% Reduced salaries 14% 45% 41% Reduced pension contribution 24% 41% 47% Reduced hours worked 21% 14% 64% Reduced benefits offered 17% 24% 62% Pay freeze 11% 9% 86% Reduced bonus 11% 9% 83% Offered flexible working 10% 25% 65% Contractors salary guide

10 Change in workload More than half (54%) of all workers report that their workload has increased over the last twelve months, which is endemic of the sector as employers seek to reduce costs and streamline their organisations where possible. While estimators are bidding for more work and project managers have assumed the role of business development managers, where they did not have to previously. Methodology Hays Construction, part of the leading global specialist recruiting group, is an expert at recruiting qualified, professional and skilled people to the construction industry. We drew on the industry knowledge of our recruiting experts, across the UK, to compile this survey. It is based on the salaries of candidates placed in the past 12 months in addition to data provided by over 300 construction professionals and almost 100 contractors. For further information, visit hays.com/construction Employee Perspective On Cost Cutting Measures Shorter work-weeks Unpaid sabbaticals 0% 29% 71% 100% Have had this Would consider if offered Job-sharing 25% 75% Temporary layoffs 20% 80% Reduced salaries 33% 67% Reduced pension contribution 40% 60% Reduced hours worked 33% 67% Reduced benefits offered 60% 53% Pay freeze 30% 74% Reduced bonus 42% 67% Offered flexible working 29% 71% 8 Contractors salary guide 2010

11 SALaRY TABLES Health and Safety H&S Director 70,000 65,000 65,000 60,000 58,000 58, ,000 72,000 60,000 65,000 65,000 85,000 60,000 62,000 65,000 NationaL Average 58,273 H&S Advisor 29,500 37,000 NationaL Average 30,591 Contractors salary guide

12 H&S Manager 38,500 37,000 39,000 37,000 32,500 31,000 60,000 NationaL Average 37,364 Senior H&S Manager 60,000 47,000 42,500 70,000 58,000 56,000 52,000 NationaL Average 46, Contractors salary guide 2010

13 Site Management Site Agent 28,500 28,300 NationaL Average 28,618 Senior Site Manager 41,000 43,000 46,000 NationaL Average 37,545 Contractors salary guide

14 Site Manager 37,000 31,000 28,500 NationaL Average 32,364 Asst Site Manager 28,500 NationaL Average 24, Contractors salary guide 2010

15 General Foreman 28,500 21,000 27,500 21,500 28,500 NationaL Average 26,545 Finishing Foreman 26,500 20,500 19,000 21,000 21,000 NationaL Average 24,909 Contractors salary guide

16 Quantity Surveying Senior QS 43,000 41,000 35,500 39,000 26,500 37,500 46,000 43,000 39,000 47,500 43,000 46,000 NationaL Average 39,292 Contract QS 33,500 31,000 25,500 25,500 21,000 41,000 30,500 NationaL Average 30, Contractors salary guide 2010

17 Assistant QS 23,500 17,000 18,500 21,000 19,000 19,000 16,000 16,000 21,000 NationaL Average 21,143 Planning Senior Planner 41,000 37,000 37,000 31,000 60,000 57,000 54,000 46,000 52,500 NationaL Average 43,364 Contractors salary guide

18 Planner 39,000 31,000 37,500 31,000 42,500 37,000 NationaL Average 33,818 Assistant Planner 24,500 23,500 18,500 19,000 16,000 22,500 21,000 NationaL Average 23, Contractors salary guide 2010

19 Estimating Senior Estimator 52,000 46,000 48,500 46,000 41,000 39,000 36,500 65,000 60,000 60,000 52,000 46,000 47,000 NationaL Average 45,864 Estimator 39,000 37,000 37,000 36,500 32,500 37,000 28,500 52,000 36,500 NationaL Average 35,818 Contractors salary guide

20 Assistant Estimator 21,000 21,000 31,000 NationaL Average 25,667 Bid Manager 52,000 53,000 65,000 65,000 52,000 60,000 NationaL Average 46, Contractors salary guide 2010

21 Submissions Coordinator 19,000 NationaL Average 24,364 Engineering Senior Engineer 19,000 NationaL Average Contractors salary guide

22 Engineer 32,500 31,500 26,700 39,000 31,000 31,500 NationaL Average 28,064 Junior Engineer 22,500 17,500 19,500 19,000 17,000 18,500 16,000 17,000 17,000 14,000 25,500 NationaL Average 19, Contractors salary guide 2010

23 Chainperson 16,000 15,500 15,500 17,000 13,000 13,000 14,500 13,000 12,000 12,000 13,000 12,000 14,000 15,500 12,000 12,000 21,000 13,000 NationaL Average Contract/Project Management Contract Manager 43,500 43,000 43,000 34,500 47,000 47,500 52,000 NationaL Average 42,318 Contractors salary guide

24 Project Manager 43,000 39,000 37,000 41,000 43,000 47,000 46,500 51,000 NationaL Average 40,636 Buying Senior Buyer 37,500 31,000 28,500 43,000 39,000 NationaL Average 35, Contractors salary guide 2010

25 Buyer 32,600 31,000 NationaL Average 29,782 Assistant Buyer 22,500 19,000 19,000 19,000 17,000 16,000 17,000 17,500 16,000 18,500 17,000 21,000 23,500 NationaL Average 20,542 Contractors salary guide

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