The Vertical Salary Review 2017 with Place North West PROPERTY + CONSTRUCTION

The Vertical Salary Review 2017 with Place North West PROPERTY + CONSTRUCTION

Contents 3 Foreword 4 Methodology 5 Profile of respondents 7 Overview 8 Salary summary 9 Architects 12 Building Services Consultants (M&E) 15 Building Surveyors 18 General Practice Surveyors 21 Project Managers 27 Structural Engineers 30 Civil Design Engineers 33 Gender 35 Job satisfaction 37 Optimism 38 Challenges 39 Salaries table 40 Final words 41 About Vertical Recruitment 42 About Place North West 24 Quantity Surveyors 2

Foreword Welcome to the Vertical Salary Review 2017, in association with Place North West. This report looks at the salaries, sentiments and perceptions of property and construction professionals in the North West. We hope you find it interesting and useful as a reference tool for businesses and individuals within the industry. In the current economically and politically turbulent times, it is more important than ever to track employment trends and explore how industry professionals regard their careers and futures. For details about Vertical Recruitment and Place North West, please see the final pages of this report. JAMES ADAMSON DIRECTOR VERTICAL RECRUITMENT PAUL UNGER EDITOR PLACE NORTH WEST 3

Methodology The data used in this report was gathered in a survey of 532 North West property and construction professionals, carried out between March and July 2017 via an online questionnaire. The questionnaire consisted of a mixture of closed multiple-choice questions and open text questions. All answers were anonymous. Any omission of data in any graph, chart or table signifies a lack of sufficient data necessary for obtaining an accurate figure. All salary change figures are based on the answers given by this year s respondents, rather than a comparison against the sample used in the 2016 report. National average figures used in this report are sourced from Office of National Statistics data. IMPORTANT: Unless otherwise attributed, all the material in this report is the copyright of Place North West Ltd and Vertical Recruitment Solutions Ltd. This publication may not be reproduced, transmitted, stored in a retrieval system or otherwise disseminated in any form in whole or in part without the express permission of the copyright holders. While every effort has been made to ensure the accuracy of the information contained in this report, no responsibility can be accepted for any errors or omissions. Published by Place North West Ltd and Vertical Recruitment Solutions Ltd. 4

Profile of respondents DISCIPLINE Quantity Surveyor 1 Structural Engineer 8% Architect 17% 7 male 2 female Building Services Consultant (M&E) 8% Building Surveyor 6% Project Manager 23% Civil Design Engineer 6% General Practice Surveyor 20% AGE 3 3 JOB LEVEL 21% 9% 1% Under 30 31-40 41-50 51-60 61-70 Over 70 YEARS 5

Profile of respondents YEARS WITH THE COMPANY YEARS OF INDUSTRY EXPERIENCE 16+ years 13-15 years 8% 10-12 years 1 7-9 years 13% 4-6 years 17% 1-3 years 13% Up to 1 year 3 15+ years 14 years 13 years 12 years 11 years 10 years 9 years 8 years 7 years 6 years 5 years 4 years 3 years 2 years 1 years <1 year 1% 1% 3% 3% 8% 9% 1 20% 23% TYPE OF COMPANY EMPLOYMENT TYPE Full-time 93% Freelance Part-time 6

Overview The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges ahead. Salaries continue to rise across all employment types and disciplines. This is likely to be due to a strong pipeline of work in the region and a chronic skills shortage, resulting in a candidate s market. This year s results suggest more of a priority on salary and bonuses, whereas the Vertical Salary Review 2016 showed a stronger emphasis on wellbeing. Work-life balance remains important however, with many professionals seeking flexible working. Following the vote to leave the European Union, Brexit was a major concern, cited by a third of respondents as the main challenge facing the industry. The skills gap and worries over staff retention continue to trouble the industry, and there are frustrations over project fees, profitability and the planning system. The gender pay gap persists at a level above the national average, across all of the disciplines surveyed and increasing with seniority. Despite this, there remains a great deal of optimism and job satisfaction within the industry. 7

Salary summary SALARY BY DISCIPLINE ( ) Director 73,220 Associate 47,905 Senior 42,302 Intermediate 33,044 39,604 45,282 48,619 46,621 47,609 49,510 42,637 43,189 Technician 27,408 PROPERTY Graduate 23,988 Director 72,000 Associate 58,300 INFRASTRUCTURE Senior 45,862 Intermediate 30,055 Graduate 25,025 Architect Building Services Consultant Building Surveyor SALARY CHANGE ON 2016 General Practice Surveyor Project Manager Quantity Surveyor Structural Engineer Civil Design Engineer PAY BY EMPLOYMENT TYPE Full-time workers 43,943 Part-time workers 41,267 increase 7.9% since last year 4.7% increase since last year 4.9% 8.1% 6. 10.7% 10. 10.7% 9.1% 8.1% Freelancers 341per day 5.6% increase since last year Architect Building Services Consultant Building Surveyor General Practice Surveyor Project Manager Quantity Surveyor Structural Engineer Civil Design Engineer 8

Architects AVERAGE SALARY 39,604 AVERAGE SALARY INCREASE SINCE 4.9%LAST YEAR SALARY BY LEVEL ( ) 26,250 29,500 29,321 39,015 40,028 64,000 JOB SATISFACTION 1 Graduate Technician Intermediate / chartered SALARY BY LEVEL Senior Associate Director / partner 48% 71% OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS SALARY CHANGE ON 2016 9. 18% 1 18% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 2.8% 3.8% 4.9% 0.8% 3.7% 7% Graduate Technician Intermediate / chartered Senior Associate Director / partner 9

Architects 8 WORK OF ARCHITECTS RECEIVE BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 79% TOP 5 BENEFITS RECEIVED Improved career progression Better work-life balance 33% 49% Better benefits package 21% Better variety of projects 16% Better management 1 PENSION 6 MOBILE PHONE 6 BONUS 28% PARKING 28% FLEXIBLE WORKING 2 Increased bonus Less pressure Easier commute 1 1 1 More recognition 11% TOP 5 MOST IMPORTANT BENEFITS Better company culture Enhanced job security More appealing work location Better training Share options 11% 10% 8% BONUS 6 FLEXIBLE WORKING 5 PENSION 51% HEALTHCARE 29% CAR ALLOWANCE 16% 10

Architects WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Brexit Talent / skills Low fees Funding / investment Economic uncertainty Competition Cashflow Quality of work Other Public cuts Project viability Procurement process Political uncertainty Don't know Confidence Business leadership 11% 11% 9% 6% 6% RESPONDENTS CONCERNS Existing client retention and bidding for new work in highly competitive sectors Fees being at a critically low level that impacts on quality and profitability Insecurity over issues related to Brexit Consistency and stability of national and local housing policy and security for large scale long-term investments and projects 26% 30% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS OUR INDUSTRY OBSERVATIONS The salary rise at intermediate / chartered level was unsurprising as we continue to feel the impact of the recession, when many people left the industry and few entered it. The skills gap at that level remains, meaning more competition and higher salary expectations. The demand for Architectural Technicians with REVIT experience remains and whilst the skills gap in that area seems to have narrowed since last year, highly skilled technicians are able to command salaries which were not typical of technician roles in previous years. Architecture roles increasingly require specialist sector experience, particularly in residential, education and commercial. However, over recent years, I have observed many architects working across different sectors, perhaps to reduce vulnerability when one sector struggles, which means it can be difficult to offer stand-out expertise. Brin Gleeson Recruitment Consultant, Vertical Recruitment 11

Building Services Consultants (M&E) Average salary 45,282 SALARY BY LEVEL ( ) 46,792 55,750 61,960 JOB SATISFACTION 8.1% LAST AVERAGE SALARY INCREASE SINCE YEAR 25,980 29,438 21% 6 OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS Graduate Intermediate / chartered SALARY CHANGE ON 2016 10.6% Senior Associate Director / partner 7. 7. 12.0% 50% 23% 9% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 4.0% Graduate Intermediate / chartered Senior Associate Director / partner 6% 12

Building Services Consultants (M&E) 97% RECEIVE OF BUILDING SERVICES CONSULTANTS WORK BENEFITS FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 76% TOP 5 BENEFITS RECEIVED Improved career progression Better work-life balance Better variety of projects Increased bonus 41% 3 31% 2 Better management 17% PENSION 70% DEATH IN SERVICE INSURANCE 47% HEALTHCARE 43% MOBILE PHONE 43% FLEXIBLE WORKING 40% Easier commute Better benefits package More recognition Less pressure 1 1 10% 10% TOP 5 MOST IMPORTANT BENEFITS Enhanced job security Better company culture Better training Share options 10% 7% 7% 3% More appealing work location 0% BONUS 66% PENSION 5 FLEXIBLE WORKING 5 HEALTHCARE 31% CAR ALLOWANCE 2 13

Building Services Consultants (M&E) WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Talent / skills 27% Brexit 23% Timescales 1 Other 9% Quality of work Political uncertainty Low salaries Low fees Funding / investment Confidence Competition Build costs THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS OUR INDUSTRY OBSERVATIONS The growth we saw last year has continued and I think the 8.1% average salary increase clearly demonstrates a candidate-led market. After some initial nervousness around Brexit, the tables have turned and candidates are optimistic about the future, and confident in setting out their financial expectations. RESPONDENTS CONCERNS Producing quality environmental design on budget constrains Keeping staff motivated Lack of understanding or belief in services provided. Recruitment of experienced and competent staff We are seeing many new projects and vacancies to fill, however there are fewer readily available candidates. Employers are offering salary increases to retain existing staff and those that are looking to move have higher salary expectations against a backdrop of little competition. Employers recognise this and are making steps to offer attractive salary and benefits packages to recruit the best staff. James Smith Director, Vertical Recruitment 14

Building Surveyors Average salary 48,619 SALARY BY LEVEL ( ) 41,400 46,278 53,265 68,286 JOB SATISFACTION 6. LAST AVERAGE SALARY INCREASE SINCE YEAR 22,333 17% Graduate Intermediate / chartered Senior Associate Director / partner 6 OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS SALARY CHANGE ON 2016 12.1% 66% 7% 9% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 5.1% 2.9% 4.7% 5.3% 7% 3% Graduate Intermediate / chartered Senior Associate Director / partner 15

Building Surveyors OF BUILDING SURVEYORS RECEIVE 99%WORK BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 80% TOP 5 BENEFITS RECEIVED Improved career progression Increased bonus 27% 53% Better company culture 23% Better work-life balance 20% Less pressure 17% PENSION 81% MOBILE PHONE 81% BONUS 61% DEATH IN SERVICE INSURANCE 61% HEALTHCARE 4 Enhanced job security More appealing work location Better variety of projects Better benefits package Better management 17% 13% 13% 13% 10% TOP 5 MOST IMPORTANT BENEFITS More recognition Share options 7% 7% Better training 0% Easier commute 0% BONUS 71% PENSION 48% CAR ALLOWANCE 4 FLEXIBLE WORKING 39% COMPANY CAR 23% 16

Building Surveyors WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Brexit 4 Talent / skills 26% Economic uncertainty 16% Other 11% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS Competition Low fees Funding / investment 11% RESPONDENTS CONCERNS Larger companies taking building surveying inhouse rather than outsourcing to consultancies Race to the bottom on fees, and client nervousness People worrying unnecessarily about Brexit High demand for services and not enough experience in existing staff OUR INDUSTRY OBSERVATIONS Building surveying remains highly competitive and continues to face a shortage of MRICS-qualified Surveyors. Employers are recognising this and offering excellent salary and benefit packages to newly qualified employees in order to retain them. I am seeing fewer candidates in the market at this level, which suggests there is merit in doing this. I have also observed a shift in the number of people seeking projectbased building surveying roles over professional consultancy such as dilapidations. This has resulted in a gap in professional building surveying resources with large volumes of work still to deliver. For those who enjoy this type of work, this presents significant and wellpaid job opportunities. Brin Gleeson Recruitment Consultant, Vertical Recruitment 17

General Practice Surveyors Average salary 46,621 SALARY BY LEVEL ( ) 81,088 JOB SATISFACTION AVERAGE SALARY INCREASE SINCE 10.7%LAST YEAR 23,554 32,682 41,567 48,141 2 MAIN PRACTICE Investment 10% Other 7% Agency 10% Landlord & Tenant Valuation 17% Rating Development 29% Property & Asset Management 23% Graduate Intermediate / chartered SALARY CHANGE ON 2016 20.0% Senior Associate Director / partner 47% 11% 1 76% OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 7% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 5.0% Graduate Intermediate / chartered 5.0% 7.0% 1.6% Senior Associate Director / partner 18

General Practice Surveyors 97% RECEIVE OF GENERAL PRACTICE SURVEYORS WORK BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 87% TOP 5 BENEFITS RECEIVED Improved career progression Increased bonus 41% 61% Better work-life balance 21% Better benefits package 20% Better variety of projects 1 PENSION 71% MOBILE PHONE 71% BONUS 60% CAR ALLOWANCE 49% DEATH IN SERVICE INSURANCE 4 Better company culture More appealing work location More recognition Less pressure Easier commute 13% 1 9% 6% 6% TOP 5 MOST IMPORTANT BENEFITS Other Share options Better management 1% Enhanced job security 1% Better training 0% BONUS 73% PENSION 51% CAR ALLOWANCE 51% FLEXIBLE WORKING 28% COMPANY CAR 1 19

General Practice Surveyors WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Brexit 39% Economic uncertainty Public cuts 1 17% Land supply 10% Procurement process Talent / skills Other Low fees 7% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS Quality of work Political uncertainty Confidence OUR INDUSTRY OBSERVATIONS Like most disciplines, there is a shortage across general practice at the intermediate / middle management level. RESPONDENTS CONCERNS Managing purchaser and vendor expectations A lagging supply of quality new space Maintaining fee levels for a premium standard of work Unpredictable global economic forces affecting the property market This is intensified by a thriving property market and increasing demand for Chartered Surveyors. I believe the 20% salary increase on last year at the chartered or intermediate level is a direct result of this, with candidates in a strong position to command salaries higher than traditionally offered. Brin Gleeson Recruitment Consultant, Vertical Recruitment 20

Project Managers Average salary 47,609 SALARY BY LEVEL ( ) 59,620 80,598 JOB SATISFACTION AVERAGE SALARY INCREASE SINCE 10.LAST YEAR 25,333 34,164 43,075 20% 78% OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS Graduate Intermediate / chartered SALARY CHANGE ON 2016 Senior Associate Director / partner 13.3% 51% 11% 11% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 4.6% 8.1% 6.0% 4.8% 1 6% Graduate Intermediate / chartered Senior Associate Director / partner 21

Project Managers 9 WORK OF PROJECT MANAGERS RECEIVE BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 7 TOP 5 BENEFITS RECEIVED Improved career progression Better work-life balance 39% 61% Better variety of projects 17% Better benefits package 1 Increased bonus 1 PENSION 78% MOBILE PHONE 66% BONUS 4 DEATH IN SERVICE INSURANCE 4 HEALTHCARE 40% Better company culture Better management Easier commute More recognition More appealing work location 13% 13% 1 8% 8% TOP 5 MOST IMPORTANT BENEFITS Enhanced job security 7% Less pressure Better training Share options Other PENSION 70% BONUS 5 FLEXIBLE WORKING 41% CAR ALLOWANCE 3 HEALTHCARE 28% 22

Project Managers WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Talent / skills Brexit Funding / investment Other Public cuts Land supply Economic uncertainty Competition Planning system Timescales Low fees Build costs Quality of work Procurement process Political uncertainty Don't know Confidence Cashflow Business leadership RESPONDENTS CONCERNS Adequate training for all levels within the industry Slow client decision making 10% 9% 7% 7% 7% 7% 3% 3% 3% Lack of graduates with real work experience to reduce the burden of extensive training and relieve senior individuals of an increasing workload 29% 28% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS OUR INDUSTRY OBSERVATIONS As with most disciplines, there is high demand for middle management staff, notably Project Managers with experience of managing large and complex projects autonomously. To fill the gap left behind following the last recession, I am seeing junior staff progress much quicker than previously. Employers are offering higher salaries and more responsibility to the best candidates, and investing in their professional development in order to retain them. This is particularly attractive to those that may have experienced pay freezes previously and many are making the decision to move. James Adamson Director, Vertical Recruitment 23

Quantity Surveyors Average salary 49,510 SALARY BY LEVEL ( ) 51,825 55,136 83,300 JOB SATISFACTION AVERAGE SALARY INCREASE SINCE 10.7%LAST YEAR 24,200 36,490 16% Graduate Intermediate / chartered Senior Associate Director / partner 57% 7 OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS SALARY CHANGE ON 2016 19.9% 16.3% 9% 16% 13% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 6.0% 5. 5.1% Graduate Intermediate / chartered Senior Associate Director / partner 24

Quantity Surveyors 9 WORK OF QUANTITY SURVEYORS RECEIVE BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 8 TOP 5 BENEFITS RECEIVED Improved career progression Better work-life balance 29% 4 Easier commute 29% Increased bonus 2 Better benefits package 2 PENSION 79% MOBILE PHONE 70% CAR ALLOWANCE 49% DEATH IN SERVICE INSURANCE 49% HEALTHCARE 46% Better management Better variety of projects Better company culture Less pressure Enhanced job security 13% 13% 11% 11% TOP 5 MOST IMPORTANT BENEFITS Share options More recognition Better training More appealing work location BONUS 57% CAR ALLOWANCE 5 PENSION 5 FLEXIBLE WORKING 33% COMPANY CAR 26% 25

Quantity Surveyors WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Talent / skills Brexit 38% 41% Funding / investment Economic uncertainty 9% 9% Project viability Political uncertainty Planning system 6% 6% 6% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS Other Low salaries Land supply 3% 3% 3% OUR INDUSTRY OBSERVATIONS I have observed a significant increase in the demand for freelance quantity surveyors this year which I believe can be attributed to two factors. RESPONDENTS CONCERNS Recruiting good quality client-facing, senior-level project staff Converting the pipeline into physical projects on site Creating stability in the market whilst maintaining an upward curve in output Inadequate salaries and work packages Firstly, the gap in middle management staff remains and whilst employers are often seeking permanent employees, they are forced by immediate resourcing demands to employ freelance contractors. Secondly, some employers do not have a longer term pipeline secured and are taking a more immediate approach to recruitment. This is less so in the commercial sector which appears very strong, but is apparent in the public sector. James Adamson Director, Vertical Recruitment 26

Structural Engineers Average salary 42,637 SALARY BY LEVEL ( ) 47,630 57,833 68,334 JOB SATISFACTION AVERAGE SALARY INCREASE SINCE 9.1%LAST YEAR 28,333 27,103 32,571 20% Graduate Technician Intermediate / chartered Senior Associate Director / partner 31% 68% OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS SALARY CHANGE ON 2016 11. 10.8% 8. 8.3% 23% 9% 6. 6% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS 2.1% 17% Graduate Technician Intermediate / chartered Senior Associate Director / partner 27

Structural Engineers OF STRUCTURAL ENGINEERS RECEIVE 93%WORK BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 66% TOP 5 BENEFITS RECEIVED Improved career progression Better variety of projects 4 5 More appealing work location 2 Better work-life balance 17% Easier commute 17% PENSION 77% CYCLE TO WORK SCHEME 63% FLEXIBLE WORKING 63% DEATH IN SERVICE INSURANCE 57% HEALTHCARE 43% Increased bonus Better company culture Less pressure Better management 17% 10% 10% 10% TOP 5 MOST IMPORTANT BENEFITS Enhanced job security Share options Better benefits package More recognition 10% 7% 7% 3% Better training 3% BONUS 63% PENSION 63% FLEXIBLE WORKING 4 COMPANY CAR DEATH IN SERVICE INSURANCE 2 19% 28

Structural Engineers WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Talent / skills 21% Economic uncertainty Brexit 17% 17% Funding / investment 13% Low fees Don't know 8% 8% Timescales Procurement process THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS Other Land supply Competition RESPONDENTS CONCERNS Professional fees remain depressed and margins very tight Constant challenge to deliver more for less, which is what clients are expecting Lack of trained technicians able to use packages such as Revit and CADS RC OUR INDUSTRY OBSERVATIONS The average 9.1% salary increase is likely to be due to both the general optimism of the industry and the pipeline of work. The market is strong and with that comes the recognition that good people will expect to be paid more. Employers are taking steps to retain their staff by offering increased salaries and clear career progression routes. We are also seeing smaller businesses implement new and innovative benefits packages in order to compete with larger corporate and national companies. Employees who are not satisfied in their current role are confidently entering the job market and commanding higher salaries than before due to a shortage of staff, particularly Chartered Structural Engineers. James Smith Director, Vertical Recruitment The struggle of finding quality staffwho are interested in joining an SME 29

Civil Design Engineers Average salary 43,189 SALARY BY LEVEL ( ) 32,000 42,141 JOB SATISFACTION 8.1% LAST AVERAGE SALARY INCREASE SINCE YEAR 29% Intermediate / chartered Senior 86% OPTIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS SALARY CHANGE ON 2016 12.3% 46% 1 7% PESSIMISTIC ABOUT THE INDUSTRY S ECONOMIC PROSPECTS Intermediate / chartered 5.9% Senior 7% 30

Civil Design Engineers 96% WORK OF CIVIL DESIGN ENGINEERS RECEIVE BENEFITS TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary 76% TOP 5 BENEFITS RECEIVED Improved career progression Easier commute Better variety of projects Better work-life balance 36% 3 3 28% More recognition 20% PENSION 8 DEATH IN SERVICE INSURANCE 60% CYCLE TO WORK SCHEME 5 HEALTHCARE 48% FLEXIBLE WORKING 4 Better management Increased bonus Better company culture Enhanced job security Better benefits package 8% 8% 8% 20% 20% TOP 5 MOST IMPORTANT BENEFITS Less pressure Better training More appealing work location Share options 0% BONUS 5 PENSION 58% FLEXIBLE WORKING 4 DEATH IN SERVICE INSURANCE 38% HEALTHCARE 17% 31

Civil Design Engineers WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY? Talent / skills 41% Brexit 29% Funding / investment 18% Planning system Other Land supply Competition 6% 6% 6% 6% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS OUR INDUSTRY OBSERVATIONS There is a huge demand for Chartered Engineers, particularly on large road and drainage infrastructure projects. I expect the bridges industry to follow a similar path over the coming year. Major projects such as HS2 will increase competition and push salaries up even further. RESPONDENTS CONCERNS Clients not understanding requirements of local approval bodies Poor project management Lack of well-trained and committed junior staff The uncertainty associated with Brexit I have seen many clients take on additional trainees and graduates to assist with resourcing demands, presenting attractive opportunities for those new to the industry. Whilst this job level doesn t command the same increase in salary, I have seen a shift in expectations around training and career progression opportunities. I expected flexible working to remain a top motivating factor, in particular where significant commuting is required. Steve Slade Recruitment Consultant, Vertical Recruitment 32

Gender AVERAGE MALE SALARY 48,768 AVERAGE FEMALE SALARY 38,797 Average industry gender pay gap: 9,971 A gender pay gap persists to varying degrees across all the disciplines surveyed. The average women in property earns 20. less than the average man - this is higher than the national average gender pay gap of 18.1%. The biggest gap is amongst building surveyors, and the smallest gap is amongst building services consultants. SALARY BY DISCIPLINE ( ) 40,502 31,836 46,514 40,920 50,507 49,606 51,528 38,073 36,983 31,000 49,961 43,750 Male Female 46,714 45,898 33,720 32,352 Architect Building Services Consultant Building Surveyor General Practice Surveyor Project Manager Quantity Surveyor Structural Engineer Civil Design Engineer 33

Gender SALARY BY LEVEL ( ) Male Female 75,881 70,400 25,187 23,819 29,551 27,700 34,944 31,571 45,192 42,892 53,724 48,822 Graduate Technician Intermediate / Chartered Senior Associate Director / Partner The gender pay gap exists across all jobs levels, and increases with seniority, with the smallest gap among graduates and the largest at director / partner level. However, the rate of salary increase in the past year is higher for women among several disciplines: architects, building services consultants, building surveyors and quantity surveyors. Along with mandatory gender pay and bonus gap reporting having been brought into effect for larger companies in April 2017, this will hopefully lead to pay equality improvements in the near future. Despite the pay gap, 7 of the women surveyed were optimistic about the industry. This is slightly lower than in men, 76% of which were optimistic. Similarly, 67% of women were satisfied to some degree at work, compared with 70% of men. 34

Job satisfaction AVERAGE SALARY BY JOB SATISFACTION LEVEL ( ) 49,562 46,203 41,160 43,315 51,793 20% 49% VERY UNSATISFIED UNSATISFIED NEITHER SATISFIED NOR UNSATISFIED SATISFIED VERY SATISFIED Job satisfaction has increased slightly overall in the past year; 69% of respondents satisfied to some degree in their jobs, compared with 66% in 2016. 1 1 Satisfaction is less polarised this year, with fewer people feeling strongly either way. Surveyors of all types are the most satisfied in their jobs, and architects and structural engineers are the least satisfied. Those that are very satisfied at work are the highest paid. Interestingly, those that are very unsatisfied at work are the next highest paid. 35

Job satisfaction TOP 5 BENEFITS RECEIVED ACROSS ALL DISCIPLINES TOP 5 MOST IMPORTANT BENEFITS ACROSS ALL DISCIPLINES PENSION 7 MOBILE PHONE 58% BONUS 4 DEATH IN SERVICE INSURANCE 4 HEALTH CARE 37% BONUS 63% PENSION 57% FLEXIBLE WORKING 40% HEALTHCARE 21% CAR ALLOWANCE 3 TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH Increased salary Improved career progression 53% 79% RECEIVE WORK 9BENEFITS Better work-life balance Increased bonus Better variety of projects Better benefits package 29% 23% 19% 17% Professionals were asked to list the benefits they receive and the benefits they perceive to be the most important. Notably, the two lists do not often closely align for any discipline. Easier commute Better company culture Better management More appealing work location 1 1 11% 9% Salary, bonus and pension are the most important motivations, with the desire for a higher salary and better career progression increasing on last year. Less pressure More recognition Enhanced job security Share options Better training 9% 9% 7% 3% Flexible working is often highly desired but not offered, though this year s results show less of a concern over work-life balance. Economic uncertainty has perhaps led the workforce to be more concerned around financial remuneration. Other 1% 36

Optimism 17% 59% 1 8% There is a lot of optimism about the future of the industry s economic outlook, with exactly the same levels of optimism shown at a cross-discipline level as prior to the Brexit vote. Despite large concerns over Brexit and economic uncertainty, the workforce are seemingly overall confident that property and construction will fare well, with only 10% of respondents showing any degree of pessimism over the industry s future. Civil design engineers, project managers and general practice surveyors are the most optimistic. The least optimistic are structural engineers, building services consultants and building surveyors. 37

Challenges Brexit Talent / skills Economic uncertainty Funding / investment Other Low fees Competition Public cuts Land supply Political uncertainty Planning system Timescales Quality of work Don't know Confidence Cashflow Project viability Procurement process Build costs Low salaries Business leadership 6% 3% 3% 1% 1% 1% 1% 1% 10% 8% 26% 31% THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS Brexit was cited as the main challenge for the industry by a third of property and construction professionals, though several respondents stated that unnecessary concern over Brexit could in fact be the biggest problem and of respondents listed confidence as the key issue. Attracting and retaining staff remains high on the list of frustrations, and concerns persist over low project fees and a harsh competitive landscape. Other obstacles include increasingly low quality of work, difficult timescales, cashflow, the planning system and the procurement processes. Poor business leadership also emerged as a concern this year. 38

Average salaries for all diciplines 39

Final words... We hope that you have found the report to be useful and insightful, and retain it as a reference tool when hiring or job-hunting. Keeping a finger to the pulse of the industry and analysing the motivations and perceptions of staff is crucial to maintaining a healthy workforce on an industry-wide and individual business scale. We are pleased to see that the overall picture is one of positivity and resilience, in the face of the uncertainty ahead. If you have any questions or would like more information about this report, contact us using the details on the next pages. Thank you to all those who took part. James Adamson Director Vertical Recruitment Paul Unger Editor Place North West 40

About Vertical Recruitment Architecture & surveying Building services Consulting engineering Construction management Power & process Project management Quantity surveying Vertical Recruitment specialises in technical, construction and engineering recruitment. Based in Manchester, Vertical works with consultancies and contractors of all sizes, placing candidates in: Our approach is founded upon a genuine commitment to the success of our clients and candidates. vertical-recruitment.co.uk @VerticalRec Conavon Court 12 Blackfriars Street Manchester M3 5BQ JAMES ADAMSON DIRECTOR VERTICAL RECRUITMENT james@vertical-recruitment.co.uk 0161 669 4716 41

About Place North West Place North West is a business-to-business website for property, regeneration and construction professionals. We publish news, commentary, in-depth reports, job vacancies, event listings, professional insight and analysis. Our content focuses on architecture, design, construction, development, environment, conservation, finance, economics, housing, professional and legal, and transport. The website and daily newsletter are read by more than 65,000 people each month. In addition to online publishing, we also hold conferences and social events, covering an array of topics and locations. We aim to provide a platform for sharing knowledge and building property relationships in the region. placenorthwest.co.uk @PlaceNorthWest 232 Royal Exchange Manchester M2 7DD PAUL UNGER EDITOR PLACE NORTH WEST paul.unger@placenorthwest.co.uk 07966 535 262 42