The two sides of the coin

“The industry remains healthy, with steady signs of continued growth, coupled with the requisite pressures this puts on salaries,” sums up Robert Smith, managing director of Hays Building Services, of the conclusions drawn from the 2006 BSj/Hays Salary Survey.

“The nationwide skills shortage has led many employers to pay larger increases and higher salaries, particularly at senior levels, to attract and retain the skilled, experienced staff who find themselves in such high demand. This situation is exacerbated by the demand created by a number of large, high-profile projects such as T5 and Wembley. While we have started to see some resistance to paying ‘over the odds’ for staff, which has perhaps curtailed salary increases in some instances, the overall picture is of healthy, above-inflationary increases awarded to good, experienced engineers across the discipline.

“Given the skills shortages that currently exist and the large numbers of construction industry staff required to support initiatives such as the Olympic Games, we expect the current buoyancy to continue. Salary levels will be pushed up for those candidates with the experience and relevant qualifications required.

“Additionally, our research has clearly shown that factors other than salary can also have a very significant impact on both recruitment and retention levels. Our candidate survey highlighted the importance of work-life factors such as training and development opportunities, location/commute and flexible working. It is very interesting to note that the proportion of employees who leave their jobs for higher salaries was matched by the numbers who leave to achieve a better commute and improve their overall work-life balance.”

The survey was carried out in a slightly different way this year. In previous years, the majority of data has been sourced from the salaries of candidates placed during the previous 12 months, but this year we have conducted extensive research with many key consultants and contractors to determine the salary levels of existing employees. This has given us the most comprehensive, accurate survey to date. Consequently, in some areas, the percentage growth figures may be more modest than in previous years, but we feel it represents a more balanced view of industry salary levels than ever before.

Results by job role

1. Contract management

Some of the greatest increases have been seen in this area. In particular, there have been substantial increases in Central London across all roles, above and beyond the rate of inflation. According to Andrew Cook, section manager, this can be explained as a result of “the number of high profile projects that are taking place or due to take place in the capital. High prestige projects have necessitated the most experienced and highly qualified employees. Headhunting is also rife, having a dramatic impact on salary levels and continuing to push levels into previously unknown territory.”

Indeed, project directors are a lucky group in 2006, as large increases have been witnessed across the UK. Natalie Leaver, manager, says this is due to the fact that “they often find themselves in a very strong bargaining position. Employers need project directors from start to finish and are prepared to pay them big money to ensure they complete the work.” Both the northern and southern home counties have also seen generous increases in salaries within this field, while salaries for the rest of the UK have been more stable in comparison.

2. Consulting engineers

The latest figures show that employers are willing to pay high salaries to those candidates with senior levels of experience and relevant qualifications. We have seen very healthy growth, particularly in Central London at partner level and for principal design engineers, who have found themselves in particular demand and have seen salaries increase accordingly. Partners in the Northern Home Counties and the North West have also seen healthy increases over the past 12 months. The demand for consulting engineers has extended downward to junior levels, where typical salaries have risen by an average of 3.6% from 12 months ago.

3. Consulting engineers CAD

Salary pressures for CAD engineers have alleviated slightly, due to a higher number of available applicants in the market. Mike McNally, Hays UK building services manager, comments: “Salaries in this area may also have been affected by the significant amount of work which is now outsourced to Asia. CAD agencies are now working electronically and this may have impacted on the demand for employees (particularly those with little experience).” However, skilled and experienced CAD technicians and managers will always command a healthy salary.

4. M&E quantity surveyors, estimators and M&E engineers

Experienced, qualified staff across all these areas have seen typical salaries increase at a very healthy level from last year – frequently beyond the rate of inflation. For example, the salary of a typical M&E quantity surveyor has increased by an average of 4.9% compared to 12 months ago. While such increases have not always filtered down to their less experienced colleagues, Natalie Leaver, manager, warns that “employers should be careful not to alienate candidates who possess relevant qualifications, but are lacking experience. Given the severe skills shortage, employers should invest in their career development because they are sure to reap the benefits.”

5. Commissioning engineers

The figures suggest a relatively stable year for commissioning engineers. Certainly from a recruitment perspective, we are not seeing quite the chronic skills shortages visible in some other areas and consequently, Keith Robertson, consultant, comments that “this discipline has seen a rise in the number of candidates, which has impacted on the rate at which salaries are rising.”

Benefits are equally important

The salary level is of prime importance to candidates, but the significance of the accompanying benefits package cannot be underestimated.

Our survey indicated that 70% of employers offer non-financial support for training to at least some of their building services staff. The same proportion of employers also offer time off in lieu to selected employees. Death in service benefit and financial support for training also feature highly in the list.

A study of the benefits that employees feel are important makes an interesting comparison. Two-thirds of those employees surveyed indicated that death in service benefit was either vital to them when job seeking, or was important enough to be a deciding factor when offered a new role. A similar proportion of respondents ranked private medical cover equally highly and a significant percentage of employees reported that a minimum of 25 days annual leave and flexible working patterns were important parts of any future package.

Other factors

While the desire for a higher salary was cited by the majority of employees as one of the prime motivators behind a change of job, the same number also claimed that the location of the organisation/commute to work was just as important. This highlights the importance that employees are now placing on work-life balance. It also suggests that initiatives to ease the burden of a long commute, such as flexi-working, should be given top priority in an attempt to increase both recruitment and retention levels – especially given that only 40% of employers recognised that commuting played a role in staff retention problems.

Career enhancement and development opportunities, notably a new challenge and more responsibility, also featured highly.

Recruitment and retention problems

Over three quarters of all employers reported problems in recruiting building services staff in the past 12 months. According to employers, this is largely the result of a shortage of suitable applicants. The process is also hindered by rising salary levels – and almost 40% cited competition from other employers as a factor.

Half of the employers interviewed stated that they had problems retaining staff. Given this figure, it might surprise employers to know that over two thirds of employees surveyed indicated that they would stay/have stayed with their present/most recent employer if certain issues had been addressed.

A good indicator of an employee’s satisfaction levels is whether they would recommend their current employer to a friend. While over 40% stated that they would and a further 35% stated that they might, that still leaves a worrying two out of every 10 employees who would not recommend their employer to a friend.

Perhaps of equal concern is the finding that 85% of employees regularly work hours in excess of contracted hours. On average, building services professionals reported working nearly 44 hours per week, despite only being contracted to work 38 hours per week. Many do receive compensation for longer hours, including payment and time off in lieu. Almost 60% reported that they were happy, or usually happy, to work overtime, suggesting that it was their own choice to do so. n