The Ȧ/Hays Construction salary survey shows that infrastructure work has provided one of the few escapes in another sobering year for consultants, but the adoption of BIM technology is hitting technical experts hard. Ȧ reports
Thank God for infrastructure. That has to be the overarching message gleaned from the Ȧ/Hays Construction annual consultants’ salary guide. The results paint a picture of an industry that would be on its knees were it not for Crossrail, the Olympics and other major infrastructure work up and down the UK.
Last month’s Budget may have been notable for its lack of any clear measures on the future provision of infrastructure, but the sector’s buoyancy over the past year is evident in the pay packets of civil and structural engineers, which have risen 8-11%.
Of course, not everyone has a role that lends itself to large infrastructure schemes. Salaries have dropped by up to 6% for architectural and CAD technicians, partly as a result of the rise of building information modelling (BIM), and, once again, many junior roles have seen salary drops. The survey also reveals that most employees are working longer hours.However, there is one further glimmer of light: 48% of employers say they are planning to recruit within the next six months and 51% of employees are planning to move jobs this year.
The big winner
The key differentiator between the haves and the have-nots this year - apart from region and seniority - was infrastructure expertise. Senior structural engineers saw a 10% boost to an average salary of £33,818 - hitting £36,000 in London - and senior infrastructure engineers’ 2011 salary of £32,818 went up 7% to an average of £35,000 in London.
Lynne Crowe, director at Hays Construction, said: “Confidence in the industry has been boosted by the long-awaited go-ahead for some major civil and engineering projects in various parts of the UK, as well as the ongoing impact of high-profile projects such as the Olympics and Crossrail in London.
“Consequently, structural and infrastructure engineers have seen the biggest increase in their salaries, as their skills are in increased demand to manage these projects.”
Areas other than London that have benefited from the rise of infrastructure projects include the Midlands, thanks to projects such as the Nottingham tram extension, and the South-west, where there has been a £88.6m push on motorway work as part of the managed motorway contracts. Hays also reports a lack of experienced civil engineers in the South-west, which has led employers to increase salaries in order to attract specialists from elsewhere in the UK.
Christine Keates, a partner at building surveyor Tuffin Ferraby Taylor, says: “Infrastructure schemes have certainly had an impact on the state of the industry. You only have to try and drive through London to know how much infrastructure work is going on. The works and jams are the parallel to the number of cranes you can see in a city as an indication for how much commercial work is going on. These sorts of schemes are definitely having a positive impact.”
Lower infrastructure salaries were reported in the North-east and North-west, as might be expected, but the greatest regional variation was in Northern Ireland, which has been hit particularly hard by the recession. Here, salaries are as much as £10,000 below the London average.
Kamran Moazami, head of structure, property and development at engineer WSP, says: “The start of this year has seen, all of a sudden, an increase in people asking for pay rises in engineering, as there are a lot of public projects underway in the UK - especially rail schemes.”
Bob Tong, associate director of infrastructure at engineer Buro Happold, adds: “Competition for work remains fierce, but there is undoubtedly a wide range of interesting and challenging opportunities for civil and structural engineers at home and abroad. The UK government’s commitment to delivering infrastructure projects, in particular in the transport and energy sectors, has put civil engineers and structural engineers in a relatively strong position compared with other consultants.”
The other end of the scale
While infrastructure specialists have prospered, others are not faring so well. Architectural technicians saw the biggest salary drop, by 6% to £24,955 - although in London the figure was just under £30,000. Senior CAD technicians also suffered, with a 5% salary drop to an average of £29,000. Again, the figure was considerably higher in London and up £5,000 to £34,000.
Many have blamed the rise of BIM for the impact on CAD technicians, as while they are still required for some aspects of projects that it, those without full 3D modelling training are going to be less in demand. The consensus seems to be that people in these areas of work must accept that BIM is here to stay and try to add to their skills.
“Switch and learn,” urges Moazami. “Use your existing skills and build on them to become BIM technicians and 3D modellers. It’s time to get into something new.”
Like last year, younger employees and graduates bore the brunt of salary cuts, with assistant and newly qualified building surveyors seeing cuts of between 2% and 5%.
Many senior consultants argue that this is an unfortunate by-product of keeping businesses going through tough times by investing in experienced rather than new employees - partners and senior surveyors’ salaries remained steadier, either staying at the same level or increasing slightly.
“It’s tough but firms need to stay in business,” says Peter Caplehorn, technical director at architectural practice Scott Brownrigg, “and to do that they need to invest in, and put their support behind, the people who will be able to win the work.”
Tuffin Ferraby Taylor’s Keates adds that, with money tight, there are other benefits beyond salaries that employers can offer junior staff: “This is not a spectacular time for anyone, salary-wise. Junior building surveyors may be feeling that, at the start of their careers, this is not as lucrative a job as they thought.
“We’re trying to give the best possible value to our junior employees through good mentoring, coaching and training to get them qualified as fast as possible. There is not a huge amount of money around at the moment for anyone so firms will have to think of other ways to add value - especially for staff who are starting out.”
General trends
On a positive note, movement in the industry appears to be on the up. Hays’ Crowe says the survey revealed that 26% of the employers looking to recruit (nearly half of those surveyed) are recruiting for new jobs. That is a clear improvement on the 2011 survey, which reported that 63% of employers were not planning to recruit at all.
She adds that flexible working hours are becoming more widely accepted, with 64% of employers now offering “an element of flexible working”. However, bonuses are still far from common-place, with just 34% of employers surveyed offering performance-related bonuses in 2012.
Despite evidence of employers investing in more senior, work-winning, employees, 44% said they were concerned about the future workforce. While salaries may not reflect this sentiment, the survey did reveal that 51% of employers were working with schools or graduates to combat this problem.
Last year’s salary guide showed that almost 45% of consultants surveyed had had a pay cut in the previous 12 months, 35% were on pay freezes and 35% felt very insecure in their jobs. This year, nearly a third - 31% - experienced salary increases and most - 47% - had seen no change in their salaries. So things appear to be heading in the right direction, especially as 55% now feel secure or very secure in their roles.
“Our research is more encouraging this year,” says Crowe. “There are signs of movement in the construction job market and an increased willingness to recruit and move roles. There has been an average increase of 1.6% in consultants’ salaries since this time last year, which is reflected in the overall mood in the sector slowly improving.”
A good year for …
Claims surveyors saw the biggest salary increases, by 11% to an average of £44,636. This is a result of pressure being put on businesses to manage their costs
Senior interior designers enjoyed an average of 7% increase on salaries to £30,364 as high-end residential work, particularly in London, rose in demand. With a slow housing market, housebuilders are increasingly hiring designers to attract buyers by glamming up existing property. In London, a senior designer can expect to earn an average of £41,000
Employers Some 29% of employees said they had increased their working hours to support leaner teams under more pressure and yet
three-quarters still rated their work-life balance as “good”
And not so good for …
CAD and architecture technicians have seen 5-6% salary drops as there is less of a requirement for their expertise since the BIM boom
Junior employees Employers are still prioritising more senior, work-winning employees when it comes to investing in staff and salaries
The South-west Outside of the infrastructure sector, redundancies have been particularly widespread, according to Hays Construction. This has had a negative impact on salaries as more candidates are going for each role
Methodology
Recruitment expert Hays Construction used its specialist knowledge of consultants to compile this comprehensive survey. The salary data is based on average salaries achieved by candidates placed within the past 12 months, complied by Hays staff at offices across the UK. Salary data is indicative and should not be viewed as a guarantee of salaries available.
The benefits results are based on a survey of 253 employers and 322 employees.
[For the full results of the quantity surveyors’ survey, please see PDF attached]
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