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PROPERTY & CONSTRUCTION: HOUSING

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Contents

An introduction from Nick Kirk, 01 UK Managing Director, PageGroup

The UK outlook 02

The picture in housing 03 - 04 Salary guide 05

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An introduction from Nick Kirk UK Managing Director, PageGroup

Welcome to our latest look at the property and construction sector. As we move further into 2020 and look to the decade ahead, there is little doubt that we are operating in changing times. Change inevitably brings challenges. It also creates huge opportunities.

Take Brexit, for example. Whatever your stance on the invocation of Article 50, there is no doubt that the uncertainty it is creating is having a detrimental impact on the business outlook. However, as historical moments often do, Brexit creates an opportunity for both employers and workers to pause and re-evaluate their intentions and priorities for the months and years ahead. For some it may be a catalyst for change, reinvention and growth.

Brexit may also present an opportunity for businesses to reconsider how they approach the recruitment of top talent. Soft skills such as adaptability are more important than ever – and the sooner employers wise up to the value of having an adaptable workforce, the sooner they will reap the benefits, particularly as the consequences of Brexit become apparent.

Against the political backdrop, the unstoppable march of technology is another driving force of change, as innovations in AI and automation continue to evolve the scope of roles across sectors. This will only accelerate over the next 10 years; indeed, it is exciting to imagine the types of jobs that will have been created by 2030 and the types of skills we will be seeing on CVs as a result. You can see our predictions on that subject by clicking here.

At this juncture, we feel it has never been more important to provide you with the key statistics and information you need to inform your business decisions for the year and decade ahead. That’s why we have put this guide together to offer clear insights in two key areas:

SalariesAlong with giving you the overall picture across the UK, we have also drilled down into the property and construction sector to derive key insights around salary growth, regional trends and fluctuations based on seniority. Turn to Page 5 for our full salary guide for the property and construction sector; you can also use our online Salary Benchmarking & Comparison tool to get the latest information on salaries for hundreds of roles.

SkillsCompetition is fierce for a range of skills, within both property and construction and the broader labour market. Therefore, we have identified the most in-demand skills in the sector for this year and looked at what is driving the overall skills shortage. For further details on the most in-demand skills across the industry, head over to our online Skills Checker tool.

Having operated for over 40 years as recruiters, we are at the coalface of employment and have an unrivalled knowledge of the challenges around salaries and skills. As your needs evolve, our flexible team – based in offices across the UK – are uniquely positioned to help find the right talent in order to meet your business objectives.

On behalf of PageGroup in the UK, I hope you enjoy the read.

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U K S K I L L S T R E N D S

Technical skills in huge demandSkills shortages, particularly across technical roles, continue to be felt across the UK. This was one of the key battlegrounds of last year’s general election, with the CBI questioning whether the Conservatives’ points-based immigration system could lead to further skills shortages post-Brexit. The CBI has urged the Government to make adult training a priority as one way to close the skills gap. Meanwhile, the British Chambers of Commerce has called for an increase in funding for apprenticeships, and reform of the Apprenticeship Levy, to particularly benefit SMEs.

The UK outlook

U K S A L A R Y T R E N D S

Wage growth slowing downThe rate of employment hit a record high in 2019, whilst workers’ wages also continued to increase – albeit, there was a slowdown in the second half of the year. The rate of salary growth has trended upwards since spring 2017, reaching 3.9% in May to July 2019, the highest nominal pay growth rate since 2008. This dipped to 3.6% in the second half of the year, with the rate of employment also falling, with Brexit-related market uncertainty being blamed by analysts. At the same time, unemployment also continued to fall, dipping by 23,000 to 1.31m in November.

Annual growth in total pay for UK employees is ahead of inflation.

Average regular pay, before tax and other deductions, estimated at £508 per week.

Source: ONS

Average earnings growth is over

3% for all sectors except manufacturing.

Got a skills gap in your team or finding a vacancy hard to fill? Get in

touch with one of our consultants by clicking here.

• Technicalskillsremaininhugedemand

• ThegrowthofAIandautomationexpectedto exacerbate digital skills gap

• 44%ofworkerswithloweducationatrisk of having their roles automated by mid 2030s, according to PwC

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There has been generally little change in advertised salary levels within the housing sector on a year-on-year basis. The median advertised salary stands at £38,500 whilst the market remains highly competitive, with the volume of adverts targeting workers 41.9% higher than the UK average. The housing sector is less candidate driven, with adverts for these roles attracting 19.1% fewer than the UK average.

• Therehasbeenanincreaseinsalaryforcompliancerolesasthey are in high demand. A high number of candidates are working on a contractual basis as opposed to permanent employment, as it is highly lucrative.

• Developmentopportunitiesarelacking,whichmeansthereisa lack of people in this area. Very few housing associations have trainee programmes available.

• Inhousing,thereisashortageofprofessionalswiththeright skill sets. Businesses are competing in a small candidate pool, and there are not enough people coming through at the grassroots level.

• Therehasbeenanincreaseinnewbuildsalariesalongwithteam growth size, which has created a huge candidate shortage. The move for housing associations to compete in different tenures including private residential has created a large number of new vacancies and the need for more competitive salary offerings.

C O M P E T I T I v E N E S S

Candidate DrivenMore blue = Clients work harder

Client DrivenMore grey =

Candidates work harder

Salary trends

T O P T I P S F O R H I R I N G I N H O U S I N G

£38,500Median advertised salary in the sector

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02

03

04

0506

07

08

09

10 QuantitySurveyor

10%

7%

6%

5%

4%3%

3%

3%

3%

2%SeniorQuantitySurveyor

SiteManager

ConstructionProjectManager

BuildingSurveyor

PropertyManager

RealEstate

Surveyor

ConstructionEstimator

ConstructionContractsManager

SeniorSite

Manager

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M O S T A D v E R T I S E D R O L E S

The picture in housing

Given the scarcity of high-quality candidates across the housing sector, formulating a targeted, engaging, and expedient recruitment process is critical to securing the best talent, as well as maximising the candidate experience.- Michael Lyons,OperatingDirector,MichaelPage

Inviting candidates to a formal interview first is not always the best approach. Why not schedule a 30 minute coffee for an informal chat? This way you can assess someone’s personality, cultural fit, and whether they have a genuine interest in the role and your company.

- Helen Ware, Business Manager, Michael Page

Make sure that you give an honest but positive description of the organisation. Take your role in selling the organisation and opportunity/or position to the interviewee seriously. Candidates are more likely to be flexible around their salary expectations and are less likely to accept a counter offer if they are truly bought in to the business.

- Aled Jones, Manager, Michael Page

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Skills shortages in this sector have been well publicised in recent years and this has come into even sharper focus around Brexit. The Federation of Master Builders has called on the Government to introduce a simple and flexible post-Brexit migration system to ensure that the UK can meet its housing and infrastructure targets.

Skills trends

H E R E A R E T H E 1 0 M O S T I N - D E M A N D S K I L L S A C R O S S T H E S E C T O R :

Proven track recordA good career history is always viewed positively by employers. While it can take time to build up a credible track record, even those at the junior end of the market can start building their reputation by understanding and then accurately detailing how they have helped to shape a recent project.

The ability to build strong and lasting business relationships is highly admired in the sector and something that professionals at all levels should be striving to do. Skilled networkers are highly valuable in the property sector, as competition continues to grow and the expectations of the level of service delivered increases.

Business development

Those with a comprehensive understanding of market changes, upcoming challenges, opportunities, and legislation will be in a better position to adapt quickly when required. Ultimately, the ability to increase revenue and effectively manage a deal are key skill sets that businesses are looking for.

Financial acumen

Managing a large team is difficult in any sector, but in property and facilities management, teams can be spread across various sites andarenotalwaysincontactwiththeirmanagers.Despitethesehurdles, it is still important to be constantly focusing on developing the skill sets of your teams, to drive efficiency and innovation.

Coaching/team development

Chartered credentialsThe skills of a chartered surveyor will vary according to the specific sector that they choose to qualify within, whether this is residential, planning and development, or facilities management, to name but a few.

A skilled project manager must be able to multi-task, ensuring that each phase of a project runs to time and budget. This, in turn, requires excellent interpersonal abilities in terms of liaising with key stakeholders at the right time and ensuring that customers are kept in the loop on progress.

Project management

As client expectations grow, the ability to effectively build and manage these relationships becomes ever more important. Getting buy-in from senior stakeholders will determine whether a deal moves forward, so commercial awareness will play a big part in this.

Stakeholder management

As the challenges facing the industry evolve, organisations are increasingly keen to identify new employees who can improve working practices and develop new ideas. Whether this is through the use of new technology or advances in environmental initiatives.

Innovation

Asset management acumenIn order to prepare for potential challenges in the market, we expect there to be an increase in the need for businesses to bring in talented professionals with experience in asset management, including development appraisals.

Contract management and ensuring that the agreed upon obligations are met by both parties involved, in the agreed upon time frame are vital to the smooth running and management of any given contract. Performance management then becomes vital in order to ensure consistent and high level delivery of service.

Contract procurement & performance management

The picture in housing

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Salary guide

LONDON & SOUTH EAST

SOUTH WEST & SOUTH WALESNORTH MIDLANDS

Top advertised job titles Low Average High Low Average High Low Average High Low Average High

DevelopmentOfficer 35,000 37,500 40,000 28,000 33,000 40,000 30,000 35,000 40,000 30,000 35,000 40,000

DevelopmentManager 53,000 58,000 63,000 45,000 50,000 55,000 48,000 55,000 65,000 48,000 55,000 65,000

HeadofDevelopment 80,000 95,000 120,000 60,000 67,500 72,500 60,000 65,000 85,000 60,000 65,000 85,000

DirectorofDevelopment 90,000 100,000 140,000 65,000 75,000 85,000 65,000 70,000 100,000 65,000 70,000 100,000

ExecutiveDirector ofDevelopment

120,000 150,000 180,000 80,000 100,000 120,000 100,000 120,000 150,000 100,000 120,000 150,000

Clerk of Works 35,000 40,000 43,000 30,000 35,000 40,000 30,000 38,000 45,000 30,000 38,000 45,000

Project Manager 45,000 50,000 55,000 35,000 42,500 48,000 40,000 45,000 50,000 40,000 45,000 50,000

Surveyor 37,000 40,000 45,000 28,000 35,000 42,500 35,000 38,000 44,000 35,000 38,000 44,000

Asset Manager 55,000 65,000 70,000 45,000 50,000 55,000 50,000 55,000 58,000 50,000 55,000 58,000

Head of Asset Management 70,000 80,000 90,000 55,000 62,500 70,000 60,000 65,000 70,000 60,000 65,000 70,000

DirectorofPropertyServices

90,000 110,000 120,000 80,000 90,000 110,000 80,000 90,000 110,000 80,000 90,000 110,000

ExecutiveDirector of Property Services

110,000 130,000 160,000 90,000 110,000 130,000 90,000 110,000 130,000 90,000 110,000 130,000

Contracts Manager 50,000 60,000 65,000 40,000 50,000 60,000 45,000 55,000 58,000 45,000 55,000 58,000

Compliance Manager 50,000 60,000 65,000 50,000 55,000 60,000 50,000 55,000 58,000 50,000 55,000 58,000

Head of Compliance 80,000 88,000 95,000 60,000 70,000 80,000 60,000 70,000 85,000 60,000 70,000 85,000

Datacorrectasof02/12/2019

Get in touch!To find out more about how we can help source the right talent for your business, contact your local Michael Page office today. Alternatively, submit a job spec and one of our expert consultants will get back to you.