This year we will be publishing four Salary Surveys and two Industry Moves Trends reports analysing remuneration for procurement and supply chain roles across the construction related industries.
While the Salary Surveys can be used on their own as a tool to benchmark salaries and improve retention, when that information is combined with our new Industry Moves Trends report, companies have a valuable tool to help them understand the cost of hiring new talent.
The publication schedule for these reports is:
- Quarter 1:
- Industry Move Trends report
- Salary Survey focusing on Construction, Infrastructure, FM & ME Contractors
- Quarter 2:
- Salary Survey focusing on House Builders
- Quarter 3:
- Industry Move Trends report
- Salary Survey focusing on Engineering
- Quarter 4:
- Salary Survey focusing on Public Sector
About our Salary Surveys – an excellent retention tool
Our salary surveys are conducted online and are open to any UK employee currently working in the UK in the relevant industry, i.e. for this Construction, Infrastructure, FM & ME Contractors report we had 196 respondents all working for Construction, Infrastructure, FM & ME Contractors in the UK.
Each of the salary surveys will be divided into five sections: Basic Salary, Car & Car Allowance, Performance Bonus, Other Benefits, and Future Plans. The basic salary figures are broken down into lower quartile, median and upper quartile salaries by job title for the specific sector of the industry covered.
Employers will find the survey an exceptionally useful tool when working out how much they need to pay staff to retain them in a market where there is a shortage of talent.
About our Industry Move Trends Report – understand your hiring costs
The purpose of the Industry Move Trends Report is to understand how much a prospective employer is likely to have to offer above an employee’s existing basic salary in order to persuade them to make a move. We do this by analysing placements we have made in recent months. The report is divided into two sections looking at our:
- 5 most recent placements for Procurement Managers and Supply Chain Managers; and
- 10 most recent placements for Senior Buyers and Buyers.
NB - All placements detailed in this report are from permanently employed candidates moving from one industry competitor to another between July 2022 and December 2022.
A summary analysis of the results from the Q1 Salary Survey and Industry Moves Trends reports
As hiring managers across the country will tell you, there remains a shortage of qualified, experienced procurement and supply chain candidates in the UK construction related industries and this is driving up salaries across the board.
According to the Q1 salary survey covering construction, infrastructure and FM & M&E contractors, 66% or respondents had received a pay rise in the last 12 months. Depending on the role that rise was typically between 5% and 7%.
While these rises may seem significant and be applying pressure to company wage bills, they are nonetheless falling short of inflation. They are also very modest compared with the rises we have seen achieved by procurement and supply chain managers in the construction industries who have moved role in the last six months. The average rise in basic (calculated using the last five procurement, supply chain, category managers we placed with new employers) was a massive 21% compared with their previous role. For the last ten buyers, senior buyers, category buyers we placed that figure was 17%.
We expect wage inflation to be more modest in the year ahead, however companies will continue to find back filling roles with like-for-like candidates an expensive exercise. As such, employers who want to manage their wage bills should focus on three things:
- be realistic about the calibre of candidate needed for individual roles – not every role needs a top quartile candidate for the company to thrive. The difference in basic salary between a lower quartile and upper quartile candidate can be over 25%;
- proactively deliver the strongest possible Employee Value Proposition – while salary matters other factors that impact quality of life and career prospects continue to grow in importance so ensure prospective candidates know your strengths; and
- consider taking on less experienced but high potential candidates – while unproven individuals may require more rigorous interviewing and, initially, a little more mentoring, they will also typically be ambitious, hard-working, grateful for the opportunity you give them and comparatively cheap. They can also be a good way of pushing your internal high performers to achieve their potential.
If you would like to review a copy of our latest Insights email, then please email me: email@example.com or call 07795 148 182.
If you would like to sign up to receive future reports, then you can join our Insights mailing list here: https://www.arresourcing.com/contact-us/signup-for-insights/