The construction sector is breathing a collective sigh of relief at the news that activity looks set to pick up in 2020. Data from Hays’ latest consultants’ salary survey shows that two-thirds of consulting firms anticipate their activity levels will increase this year. And with both the public and private sector upping their spending, the majority of firms expect to hire more staff over the next 12 months to meet this demand for work.
This is in stark contrast to last year, when caution dominated the mood as Brexit slowed down project starts and consequently new hires.
Lucy England, UK human resources director at Arcadis, says: “I think with Brexit we saw a bit of a general slowdown and some reticence in terms of people being cautious about moving.”
Richard Gelder, director at Hays Construction & Property, has seen industry consensus shift dramatically in the space of a few months: “The volume of jobs we are handling is on the rise as our clients forge on with their intentions to hire,” he says.
“This compares [well] with the sentiment before Christmas, where the implications of the general election saw employers postpone taking on new projects and staff. Many candidates also exercised caution around changing jobs.”
A reluctance to switch and a desire for stability saw salaries for consulting roles in the construction and property sectors rise 2.4% in the past 12 months, slightly less than the 2.6% witnessed in the previous year and the slowest rate since 2014. While growth appears gentle and steady, it is still above the UK average wage rise (1.8%) and above the rate of inflation.
But while firms are optimistic for the year ahead, the challenge for consultants is to ensure that they have access to the skills needed to win work – some of which are in chronically short supply. And with firms competing not just with each other but with the wider UK industry for talent, consultants are having to make concerted efforts to sell not just themselves but the appeal of working in construction.
Digital skills shortages
Hays’ data found that the highest salary increase for consulting roles was for jobs requiring more technically demanding skills. Senior technologist salaries saw a 4.3% increase this year. Salaries for technologists similarly rose 4.2%, while BIM and Revit managers experienced a 3.6% increase.
Daniel Harris, head of talent acquisition for UK and Europe at Mott MacDonald, says that in his experience these findings ring true. “The industry is looking at wider digital skills. There is real demand for technologists, product developers, software developers and others of similar ilk.”
44% of employers believe the main cause of skill shortages is the competition for roles
Martin Feakes, head of buildings London at Ramboll, says an improving market will also undoubtedly lead to a strong demand for good engineers. He says: “We expect it to be a real challenge this year to recruit the top talent who hold digital skills or understand how to exploit digital technology: such candidates are already at a premium.”
England, at Arcadis, is seeing problem roles surface in other situations: “Some of the areas where we are seeing a greater need are in management consultancy roles. We are seeing more of that and we were having challenges with cost management roles, probably at a more junior level,” she says.
Challenging for employers
Access to skills across the board has been challenging for employers. Three-quarters say that they have experienced some form of shortage in the past year, with 53% of employers expecting this constriction of supply to persist over the next 12 months.
11% of employers say that skills shortages are extreme
Nearly half (44%) of employers believe the main cause of skill shortages is competition to recruit for roles or job opportunities, with fewer people entering the construction job market. A continued effort to attract new staff – in particular with digital skills – is proving more difficult as firms not only have to compete with others companies in construction, but a wide range of firms in other sectors.
Harris says: “The fact it is not just our industry that is after these individuals but other industries too, that does drive up the cost and we are definitely seeing that through our digital offerings to the market.”
With firms desperate for the best in the business, prospective recruits appear to have the upper hand
Mott MacDonald’s Harris says that firms are using the next generation’s desire for meaning and purpose in a job as a differentiator for construction. He says: “One of the things we try to use to differentiate ourselves is that you’re working on projects that really do impact the environment, you’re not just building software or technology to make a company more money.”
“It’s a very competitive marketplace,” says Louise Ellis, chief people officer at Gleeds. “It’s quite common that when we recruit, candidates have several [interview] processes on the go. It’s up to us to portray the business in the best possible light to get the talent we want.”
“Like all consumers, our candidates are more informed than ever before, thanks to Glassdoor or other websites that give you a peek inside the business before you commit,” says Harris. “We need to make sure our entire compensation and benefits package is compelling. We’ve seen graduates literally going line by line to look at what every company is offering.”
41% of employees anticipate that they will move jobs this year
Some firms are shifting strategy to find employees in alternative areas. “We have been working on several programmes, such as a women’s returners programme, work with the armed forces and a refugee support programme. There’s untapped talent out there,” says Harris.
But consultants are finding that it takes more than a competitive salary to attract the staff they need. “Salary is a factor in a job move but we find it is always in conjunction with a number of other considerations,” says Carol White, UK director of recruitment at WSP.
The survey found that salary satisfaction levels are at 65% – a two percentage point increase on last year, and significantly higher than the 49% recorded two years ago.
Harris says: “Projects are obviously still a big draw but people also think about work-life balance. We need to make sure we’re competing on all fronts, from flexible working benefits to a cycle-to-work scheme and outlining our commitments on sustainability and zero-carbon. It all adds up.”
75% of employers say they have experienced some form of skills shortage last year
Rather than salary, Hays’ findings indicated the main reasons employees look to move on are lack of career development opportunities and lack of career progression.
“A lack of career development was the most significant factor motivating staff to move last year, so employers are encouraged to focus on progression opportunities in the way of developing career plans with individuals to retain talent over the coming year,” says Gelder.
Arcadis’ England says this aligns with the feedback she receives from engagement surveys. “It’s the kind of environment that we create for them that matters.”
Optimistic outlook
Last year’s survey saw a disparity between the benefits most desired by employees and those offered by employers. Clearly, employers have taken the advice to heart.
This year, career development was the most important factor for employees when choosing a new role – firms encouragingly also saw it as the most important consideration in attracting new staff. And promisingly, two-thirds of employees feel there is scope for career progression in their roles this year.
Consultants feel more optimistic about the economic climate and employment opportunities in the next five years than employers in the UK overall. Arcadis’ England questions whether that will provide a hotter market that could encourage more movement.
55% of employees feel positive about their career prospects
Her prediction may ring true. Hays found four in 10 employees anticipated a switch in jobs this year, with nearly one-third expecting to change roles within six months. “I think that means we really need to be on our game in terms of being able attract and retain people in our business.”
These positive recruitment intentions could spark a jump in salaries, explains Gelder. “Just under three-quarters (74%) of employers [in the survey] say they expect to hire new staff over the next 12 months and, encouragingly for employees, 73% said they also intend to increase salaries this year,” he says.
A demand for new staff with a strong order book to work through and a shortage of supply in desired skills, points to a spike in potential wages. For an aspiring employee with the right skillset, this could prove a rewarding time to work in the sector.
Sourced from Building - written by Jamie Harris