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Page 1: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

The Vertical Salary Review 2017with Place North WestPROPERTY + CONSTRUCTION

Page 2: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Contents

3 Foreword

4 Methodology

5 Profile of respondents

7 Overview

8 Salary summary

9 Architects

12 Building Services Consultants (M&E)

15 Building Surveyors

18 General Practice Surveyors

21 Project Managers

24 Quantity Surveyors

27 Structural Engineers

30 Civil Design Engineers

33 Gender

35 Job satisfaction

37 Optimism

38 Challenges

39 Salaries table

40 Final words

41 About Vertical Recruitment

42 About Place North West

2

Page 3: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Foreword

JAMES ADAMSONDIRECTORVERTICAL RECRUITMENT

PAUL UNGER EDITORPLACE NORTH WEST

Welcome to the Vertical Salary Review 2017, in association with Place North West.

This report looks at the salaries, sentiments and perceptions of property and construction professionals in the North West. We hope you find it interesting and useful as a reference tool for businesses and individuals withinthe industry.

In the current economically and politically turbulent times, it is more important than ever to track employment trends and explore how industry professionals regard their careers and futures.

For details about Vertical Recruitment and Place North West, please see the final pages of this report.

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Page 4: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Methodology

The data used in this report was gathered in a survey of 532 North West property and construction professionals, carried out between March and July 2017 via an online questionnaire.

The questionnaire consisted of a mixture of closed multiple-choice questions and open text questions. All answers were anonymous.

Any omission of data in any graph, chart or table signifies a lack of sufficient data necessary for obtaining an accurate figure. All salary change figures are based on the answers given by this year’s respondents, rather than a comparison against the sample used in the 2016 report. National average figures used in this report are sourced from Office of National Statistics data.

IMPORTANT: Unless otherwise attributed, all the material in this report is the copyright of Place North West Ltd and Vertical Recruitment Solutions Ltd. This publication may not be reproduced, transmitted, stored in a retrieval system or otherwise disseminated in any form in whole or in part without the express permission of the copyright holders.

While every effort has been made to ensure the accuracy of the information contained in this report, no responsibility can be accepted for any errors or omissions.

Published by Place North West Ltd and Vertical Recruitment Solutions Ltd.

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Page 5: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

32%

35%

21%

9%

2%1%

Under 30 31-40 41-50 51-60 61-70 Over 70

YEARS

AGE

Profile of respondents

75% male

25% female

DISCIPLINE

AGE JOB LEVEL

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Architect 17%

Building Services Consultant (M&E) 8%

Building Surveyor 6%

Civil Design Engineer 6%

General Practice Surveyor 20%

Project Manager 23%

Quantity Surveyor 12%

Structural Engineer 8%

Page 6: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

2%

13%

17%

13%

15%

8%

32%

Up to 1 year

1 - 3 years

4 - 6 years

7 - 9 years

10 - 12 years

13 - 15 years

16+ years

YEARS OF INDUSTRY EXPERIENCEYEARS OF INDUSTRY EXPERIENCE

YEARS WITH THE COMPANY

TYPE OF COMPANY EMPLOYMENT TYPE

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20%

8%

23%

12%

9%

5%

3%

2%

3%

2%

2%

1%

2%

1%

2%

5%

<1 year

1 years

2 years

3 years

4 years

5 years

6 years

7 years

8 years

9 years

10 years

11 years

12 years

13 years

14 years

15+ years

Profile of respondents

2%

5%

93%

Part-time

Freelance

Full-time

Page 7: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Overview

The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges ahead.

Salaries continue to rise across all employment types and disciplines. This is likely to be due to a strong pipeline of work in the region and a chronic skills shortage, resulting in a candidate’s market.

This year’s results suggest more of a priority on salary and bonuses, whereas the Vertical Salary Review 2016 showed a stronger emphasis on wellbeing. Work-life balance remains important however, with many professionals seeking flexible working.

Following the vote to leave the European Union, Brexit was a major concern, cited by a third of respondents as the main challenge facing the industry.

The skills gap and worries over staff retention continue to trouble the industry, and there are frustrations over project fees, profitability and the planning system.

The gender pay gap persists at a level above the national average, across all of the disciplines surveyed and increasing with seniority.

Despite this, there remains a great deal of optimism and job satisfaction within the industry.

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Page 8: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Salary summary

Director £73,220

Associate £47,905

Senior £42,302

Intermediate £33,044

Technician £27,408

Graduate £23,988

Full-time workers

£43,943Part-time workers

£41,267Freelancers

£341per dayincrease since last year

SALARY BY DISCIPLINE (£)

Director £72,000

Associate £58,300

Senior £45,862

Intermediate £30,055

Graduate £25,025INFRASTRUCTURE

PROPERTY

5.6%

increase since last year

increase since last year7.9%

4.7%

SALARY CHANGE ON 2016

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PAY BY EMPLOYMENT TYPE

39,604

45,28248,619

46,621 47,60949,510

42,637 43,189

Architect BuildingServices

Consultant

BuildingSurveyor

GeneralPracticeSurveyor

ProjectManager

QuantitySurveyor

StructuralEngineer

Civil DesignEngineer

4.9%

8.1%

6.5%

10.7% 10.4% 10.7%

9.1%

8.1%

Architect BuildingServices

Consultant

BuildingSurveyor

GeneralPracticeSurveyor

ProjectManager

QuantitySurveyor

StructuralEngineer

Civil DesignEngineer

Page 9: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Architects

AVERAGE SALARY

£39,604AVERAGE SALARY INCREASE SINCE LAST YEAR4.9%

SALARY BY LEVEL

SALARY CHANGE ON 2016

JOB SATISFACTION

71%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

18%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

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SALARY BY LEVEL (£)

7%

15%

18%

48%

12%

2.8%

3.8%

9.2%

4.9%

0.8%

3.7%

Graduate Technician Intermediate/ chartered

Senior Associate Director /partner

26,25029,500 29,321

39,015 40,028

64,000

Graduate Technician Intermediate/ chartered

Senior Associate Director /partner

Page 10: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

OF ARCHITECTS RECEIVE WORK BENEFITS85%

TOP 5 BENEFITS RECEIVED

PENSION

62%MOBILE PHONE

62%

BONUS

28%PARKING

28%FLEXIBLE

WORKING

24%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

51%BONUS

64%FLEXIBLE

WORKING

54%

CAR ALLOWANCE

16%

HEALTHCARE

29%

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

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4%

4%

8%

10%

11%

11%

12%

12%

14%

15%

16%

21%

33%

49%

79%

Share options

Better training

More appealing work location

Enhanced job security

Better company culture

More recognition

Easier commute

Less pressure

Increased bonus

Better management

Better variety of projects

Better benefits package

Better work-life balance

Improved career progression

Increased salary

Architects

Page 11: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

The salary rise at intermediate / chartered level was unsurprising as we continue to feel the impact of the recession, when many people left the industry and few entered it. The skills gap at that level remains, meaning more competition and higher salary expectations. The demand for Architectural Technicians with REVIT experience remains and whilst the skills gap in that area seems to have narrowed since last year, highly skilled technicians are able to command salaries which were not typical of technician roles in previous years.

Architecture roles increasingly require specialist sector experience, particularly in residential, education and commercial. However, over recent years, I have observed many architects working across different sectors, perhaps to reduce vulnerability when one sector struggles, which means it can be difficult to offer stand-out expertise.

Brin GleesonRecruitment Consultant, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Existing client retention and bidding for new work in highly competitive sectors”

“Fees being at a critically low level that impacts on quality and profitability”

“Insecurity over issues related to Brexit”

“Consistency and stability of national and local housing policy and security for large scale long-term investments and projects”

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

2%

2%

2%

2%

2%

2%

2%

4%

4%

6%

6%

9%

11%

11%

26%

30%

Business leadership

Confidence

Don't know

Political uncertainty

Procurement process

Project viability

Public cuts

Other

Quality of work

Cashflow

Competition

Economic uncertainty

Funding / investment

Low fees

Talent / skills

Brexit

Architects

Page 12: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Average salary

£45,282AVERAGE SALARY INCREASE SINCE LAST YEAR8.1%

65%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

9%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

JOB SATISFACTION

10.6%

4.0%

7.4% 7.2%

12.0%

Graduate Intermediate /chartered

Senior Associate Director / partner

SALARY CHANGE ON 2016

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SALARY BY LEVEL (£)

25,98029,438

46,792

55,750

61,960

Graduate Intermediate /chartered

Senior Associate Director /partner

Building Services Consultants (M&E)

6%

23%

50%

21%

Page 13: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

OF BUILDING SERVICES CONSULTANTS RECEIVE WORK BENEFITS97%

TOP 5 BENEFITS RECEIVED

PENSION

70%DEATH IN SERVICE

INSURANCE

47%

FLEXIBLE WORKING

40%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

55%BONUS

66%FLEXIBLE

WORKING

52%

CAR ALLOWANCE

24%

HEALTHCARE

31%

MOBILE PHONE

43%

HEALTHCARE

43%

FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

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0%

3%

7%

7%

10%

10%

10%

14%

14%

17%

24%

31%

34%

41%

76%

More appealing work location

Share options

Better training

Better company culture

Enhanced job security

Less pressure

More recognition

Better benefits package

Easier commute

Better management

Increased bonus

Better variety of projects

Better work-life balance

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

Building Services Consultants (M&E)

Page 14: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

The growth we saw last year has continued and I think the 8.1% average salary increase clearly demonstrates a candidate-led market. After some initial nervousness around Brexit, the tables have turned and candidates are optimistic about the future, and confident in setting out their financial expectations.

We are seeing many new projects and vacancies to fill, however there are fewer readily available candidates. Employers are offering salary increases to retain existing staff and those that are looking to move have higher salary expectations against a backdrop of little competition. Employers recognise this and are making steps to offer attractive salary and benefits packages to recruit the best staff.

James SmithDirector, Vertical Recruitment

5%

5%

5%

5%

5%

5%

5%

5%

9%

14%

23%

27%

Build costs

Competition

Confidence

Funding / investment

Low fees

Low salaries

Political uncertainty

Quality of work

Other

Timescales

Brexit

Talent / skills

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Producing quality environmental design on budget constrains”

“Keeping staff motivated”

“Lack of understanding or belief in services provided.”

“Recruitment of experienced and competent staff”

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OUR INDUSTRY OBSERVATIONS

RESPONDENTS’ CONCERNS

Building Services Consultants (M&E)

Page 15: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Building Surveyors

Average salary

£48,619AVERAGE SALARY INCREASE SINCE LAST YEAR6.5%

65%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

9%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

22,333

41,40046,278

53,265

68,286

Graduate Intermediate /chartered

Senior Associate Director /partner

JOB SATISFACTION

SALARY CHANGE ON 2016

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SALARY BY LEVEL (£)

5.1%

2.9%

4.7%5.3%

12.1%

Graduate Intermediate /chartered

Senior Associate Director /partner

3%

7%

7%

66%

17%

Page 16: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

TOP 5 BENEFITS RECEIVED

PENSION

81%MOBILE PHONE

81%

BONUS

61%DEATH IN SERVICE

INSURANCE

61%

HEALTHCARE

45%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

48%BONUS

71%FLEXIBLE

WORKING

39%

COMPANYCAR

23%

OF BUILDING SURVEYORS RECEIVE WORK BENEFITS99%

CARALLOWANCE

42%

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TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

0%

0%

7%

7%

10%

13%

13%

13%

17%

17%

20%

23%

27%

53%

80%

Easier commute

Better training

Share options

More recognition

Better management

Better benefits package

Better variety of projects

More appealing work location

Enhanced job security

Less pressure

Better work-life balance

Better company culture

Increased bonus

Improved career progression

Increased salary

Building Surveyors

Page 17: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

Building surveying remains highly competitive and continues to face a shortage of MRICS-qualified Surveyors. Employers are recognising this and offering excellent salary and benefit packages tonewly qualified employees in order to retain them. I am seeing fewer candidates in the market at this level, which suggests there is merit in doing this.

I have also observed a shift in the number of people seeking project- based building surveying roles over ‘professional consultancy’ such as dilapidations. This has resulted in a gap in professional building surveying resources with large volumes of work still to deliver. For those who enjoy this type of work, this presents significant and well-paid job opportunities.

Brin GleesonRecruitment Consultant, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Larger companies taking building surveying inhouse rather than outsourcing to consultancies”

“Race to the bottom on fees, and client nervousness”

“People worrying unnecessarily about Brexit”

“High demand for services and not enough experience in existing staff”

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

5%

5%

11%

11%

16%

26%

42%

Funding / investment

Low fees

Competition

Other

Economic uncertainty

Talent / skills

Brexit

Building Surveyors

Page 18: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

General Practice Surveyors

Average salary

£46,621AVERAGE SALARY INCREASE SINCE LAST YEAR10.7%

76%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

7%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

23,554

32,682

41,56748,141

81,088

Graduate Intermediate /chartered

Senior Associate Director /partner

5.0%

20.0%

5.0%7.0%

1.6%

Graduate Intermediate /chartered

Senior Associate Director /partner

JOB SATISFACTIONSALARY BY LEVEL (£)

SALARY CHANGE ON 2016

MAIN PRACTICE

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2%

15%

11%

47%

25%

Development29%

Property & Asset Management

23%

Valuation17%

Agency10%

Investment10%

Other7%

Landlord & Tenant

2%Rating

2%

Page 19: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

TOP 5 BENEFITS RECEIVED

MOBILE PHONE

71%

PENSION

71%CAR

ALLOWANCE

49%

DEATH IN SERVICE

INSURANCE

45%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

51%BONUS

73%FLEXIBLE

WORKING

28%

COMPANYCAR

15%

OF GENERAL PRACTICE SURVEYORS RECEIVE WORK BENEFITS97%

CARALLOWANCE

51%

BONUS

60%

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0%

1%

1%

4%

4%

6%

6%

9%

12%

13%

15%

20%

21%

41%

61%

87%

Better training

Enhanced job security

Better management

Share options

Other

Easier commute

Less pressure

More recognition

More appealing work location

Better company culture

Better variety of projects

Better benefits package

Better work-life balance

Increased bonus

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

General Practice Surveyors

Page 20: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

Like most disciplines, there is a shortage across general practice at the intermediate / middle management level.

This is intensified by a thriving property market and increasing demand for Chartered Surveyors.

I believe the 20% salary increase on last year at the chartered or intermediate level is a direct result of this, with candidates in a strong position to command salaries higher than traditionally offered.

Brin GleesonRecruitment Consultant, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Managing purchaser and vendor expectations”

“A lagging supply of quality new space”

“Maintaining fee levels for a premium standard of work”

“Unpredictable global economic forces affecting the

property market”

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

2%

2%

2%

5%

5%

5%

7%

10%

15%

17%

39%

Confidence

Political uncertainty

Quality of work

Low fees

Other

Talent / skills

Procurement process

Land supply

Public cuts

Economic uncertainty

Brexit

General Practice Surveyors

Page 21: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Project Managers

Average salary

£47,609AVERAGE SALARY INCREASE SINCE LAST YEAR10.4%

78%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

11%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

4.6%

8.1%

6.0%4.8%

13.3%

Graduate Intermediate /chartered

Senior Associate Director /partner

JOB SATISFACTIONSALARY BY LEVEL (£)

SALARY CHANGE ON 2016

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25,333

34,164

43,075

59,620

80,598

Graduate Intermediate /chartered

Senior Associate Director /partner

6%

12%

11%

51%

20%

Page 22: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

TOP 5 BENEFITS RECEIVED

PENSION

78%MOBILE PHONE

66%BONUS

45%DEATH IN SERVICE

INSURANCE

44%

HEALTHCARE

40%

TOP 5 MOST IMPORTANT BENEFITS

BONUS

54%PENSION

70%CAR

ALLOWANCE

35%

HEALTHCARE

28%

OF PROJECT MANAGERS RECEIVE WORK BENEFITS94%

FLEXIBLEWORKING

41%

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2%

4%

5%

5%

7%

8%

8%

12%

13%

13%

15%

15%

17%

39%

61%

75%

Other

Share options

Better training

Less pressure

Enhanced job security

More appealing work location

More recognition

Easier commute

Better management

Better company culture

Increased bonus

Better benefits package

Better variety of projects

Better work-life balance

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

Project Managers

Page 23: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

As with most disciplines, there is high demand for middle management staff, notably Project Managers with experience of managing large and complex projects autonomously. To fill the gap left behind following the last recession, I am seeing junior staff progress much quicker than previously.

Employers are offering higher salaries and more responsibility to the best candidates, and investing in their professional development in order to retain them. This is particularly attractive to those that may have experienced pay freezes previously and many are making the decision to move.

James AdamsonDirector, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Adequate training for all levels within the industry”

“Slow client decision making”

“Lack of graduates with real work experience to reduce the burden of extensive training and relieve senior individuals of an increasing workload”

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

2%2%2%2%2%2%2%

3%3%3%

5%7%7%7%7%

9%10%

28%29%

Business leadershipCashflow

ConfidenceDon't know

Political uncertaintyProcurement process

Quality of workBuild costs

Low feesTimescales

Planning systemCompetition

Economic uncertaintyLand supply

Public cutsOther

Funding / investmentBrexit

Talent / skills

Project Managers

Page 24: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Quantity Surveyors

Average salary

£49,510AVERAGE SALARY INCREASE SINCE LAST YEAR10.7%

75%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

13%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

19.9%

16.3%

6.0% 5.2% 5.1%

Graduate Intermediate /chartered

Senior Associate Director /partner

24,200

36,490

51,82555,136

83,300

Graduate Intermediate /chartered

Senior Associate Director /partner

JOB SATISFACTIONSALARY BY LEVEL (£)

SALARY CHANGE ON 2016

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2%

16%

9%

57%

16%

Page 25: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

TOP 5 BENEFITS RECEIVED

PENSION

79%MOBILE PHONE

70%

CAR ALLOWANCE

49%

DEATH IN SERVICE

INSURANCE

49%

HEALTHCARE

46%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

52%BONUS

57%FLEXIBLE

WORKING

33%

COMPANYCAR

26%

OF QUANTITY SURVEYORS RECEIVE WORK BENEFITS95%

CARALLOWANCE

54%

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4%

4%

4%

5%

5%

11%

11%

13%

13%

22%

24%

29%

29%

45%

82%

More appealing work location

Better training

More recognition

Share options

Enhanced job security

Less pressure

Better company culture

Better variety of projects

Better management

Better benefits package

Increased bonus

Easier commute

Better work-life balance

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

Quantity Surveyors

Page 26: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

I have observed a significant increase in the demand for freelance quantity surveyors this year which I believe can be attributed to two factors.

Firstly, the gap in middle management staff remains and whilst employers are often seeking permanent employees, they are forced by immediate resourcing demands to employ freelance contractors.

Secondly, some employers do not have a longer term pipeline secured and are taking a more immediate approach to recruitment. This is less so in the commercial sector which appears very strong, but is apparent in the public sector.

James AdamsonDirector, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Recruiting good quality client-facing, senior-level project staff”

“Converting the pipeline into physical projects on site”

“Creating stability in the market whilst maintaining an upward curve in output”

“Inadequate salaries and work packages”

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

3%

3%

3%

6%

6%

6%

9%

9%

38%

41%

Land supply

Low salaries

Other

Planning system

Political uncertainty

Project viability

Economic uncertainty

Funding / investment

Brexit

Talent / skills

Quantity Surveyors

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Structural Engineers

Average salary

£42,637AVERAGE SALARY INCREASE SINCE LAST YEAR9.1%

68%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

6%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

JOB SATISFACTIONSALARY BY LEVEL (£)

SALARY CHANGE ON 2016

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11.4%

2.1%

10.8%

8.4% 8.3%

6.4%

Graduate Technician Intermediate/ chartered

Senior Associate Director /partner

28,333 27,10332,571

47,630

57,833

68,334

Graduate Technician Intermediate/ chartered

Senior Associate Director /partner

17%

9%

23%

31%

20%

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TOP 5 BENEFITS RECEIVED

PENSION

77%CYCLE TO

WORK SCHEME

63%

FLEXIBLEWORKING

63%DEATH IN SERVICE

INSURANCE

57%

HEALTHCARE

43%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

63%BONUS

63%FLEXIBLE

WORKING

22% 19%

OF STRUCTURAL ENGINEERS RECEIVE WORK BENEFITS93%

44%

COMPANY CAR

DEATH IN SERVICE

INSURANCE

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3%

3%

7%

7%

10%

10%

10%

10%

17%

17%

17%

24%

45%

52%

66%

Better training

More recognition

Better benefits package

Share options

Enhanced job security

Better management

Less pressure

Better company culture

Increased bonus

Easier commute

Better work-life balance

More appealing work location

Better variety of projects

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

Structural Engineers

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WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

The average 9.1% salary increase is likely to be due to both the general optimism of the industry and the pipeline of work.

The market is strong and with that comes the recognition that good people will expect to be paid more. Employers are taking steps to retain their staff by offering increased salaries and clear career progression routes. We are also seeing smaller businesses implement new and innovative benefits packages in order to compete with larger corporate and national companies.

Employees who are not satisfied in their current role are confidentlyentering the job market and commanding higher salaries than before due to a shortage of staff, particularly Chartered Structural Engineers.

James SmithDirector, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

“Professional fees remain depressed and margins very tight”

“Constant challenge to deliver more for less, which is what clients are expecting”

“Lack of trained technicians able to use packages such as Revit and CADS RC”

“The struggle of finding quality staffwho are interest-

ed in joining an SME”

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

4%

4%

4%

4%

4%

8%

8%

13%

17%

17%

21%

Competition

Land supply

Other

Procurement process

Timescales

Don't know

Low fees

Funding / investment

Brexit

Economic uncertainty

Talent / skills

Structural Engineers

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Civil Design Engineers

Average salary

£43,189AVERAGE SALARY INCREASE SINCE LAST YEAR8.1%

86%OPTIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

7%PESSIMISTIC ABOUT

THE INDUSTRY’S ECONOMIC PROSPECTS

32,000

42,141

Intermediate / chartered Senior

12.3%

5.9%

Intermediate / chartered Senior

JOB SATISFACTIONSALARY BY LEVEL (£)

SALARY CHANGE ON 2016

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4%

7%

14%

46%

29%

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TOP 5 BENEFITS RECEIVED

PENSION

84%60%

CYCLE TO WORK

SCHEME

52%

DEATH IN SERVICE

INSURANCE

HEALTHCARE

48%

TOP 5 MOST IMPORTANT BENEFITS

PENSION

58%BONUS

54%FLEXIBLE

WORKINGHEALTHCARE

17%

OF CIVIL DESIGN ENGINEERS RECEIVE WORK BENEFITS96%

42%

FLEXIBLE WORKING

44%

38%

DEATH IN SERVICE

INSURANCE

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0%

4%

4%

4%

8%

8%

8%

20%

20%

20%

28%

32%

32%

36%

76%

Share options

More appealing work location

Better training

Less pressure

Better benefits package

Enhanced job security

Better company culture

Increased bonus

Better management

More recognition

Better work-life balance

Better variety of projects

Easier commute

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

Civil Design Engineers

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WHAT ARE THE BIGGEST CHALLENGES FACING THE INDUSTRY?

“Clients not understanding requirements of local approval bodies“

“Poor project management”

“Lack of well-trained and committed junior staff”

“The uncertainty associated with Brexit”

There is a huge demand for Chartered Engineers, particularly on large road and drainage infrastructure projects. I expect the bridges industry to follow a similar path over the coming year. Major projects such as HS2 will increase competition and push salaries up even further.

I have seen many clients take on additional trainees and graduates to assist with resourcing demands, presenting attractive opportunities for those new to the industry. Whilst this job level doesn’t command the same increase in salary, I have seen a shift in expectations around training and careerprogression opportunities.

I expected flexible working to remain a top motivating factor, in particular where significant commuting is required.

Steve SladeRecruitment Consultant, Vertical Recruitment

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

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RESPONDENTS’ CONCERNS

OUR INDUSTRY OBSERVATIONS

6%

6%

6%

6%

18%

29%

41%

Competition

Land supply

Other

Planning system

Funding / investment

Brexit

Talent / skills

Civil Design Engineers

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Gender

AVERAGE MALE

SALARY £48,768AVERAGE

FEMALESALARY £38,797

A gender pay gap persists to varying degrees across all the disciplines

surveyed. The average women in property earns 20.4% less than the

average man - this is higher than the national average gender pay gap

of 18.1%. The biggest gap is amongst building surveyors, and the

smallest gap is amongst building services consultants.

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SALARY BY DISCIPLINE (£)

Average industry gender pay gap: £9,971

40,502

46,51450,507 49,606

51,528 49,96146,714 45,898

31,836

40,920

31,000

38,073 36,983

43,750

33,720 32,352

Architect BuildingServices

Consultant

BuildingSurveyor

GeneralPracticeSurveyor

ProjectManager

QuantitySurveyor

StructuralEngineer

Civil DesignEngineer

Male Female

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The gender pay gap exists across all jobs levels, and increases with seniority, with the smallest gap among graduates and the largest at director / partner level.

However, the rate of salary increase in the past year is higher for women among several disciplines: architects, building services consultants, building surveyors and quantity surveyors. Along with mandatory gender pay and bonus gap reporting having been brought into effect for larger companies in April 2017, this will hopefully lead to pay equality improvements in the near future.

Despite the pay gap, 72% of the women surveyed were optimistic about the industry. This is slightlylower than in men, 76% of which were optimistic. Similarly, 67% of women were satisfied to some degree at work, compared with 70% of men.

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SALARY BY LEVEL (£)

Gender

25,18729,551

34,944

45,19253,724

75,881

23,81927,700

31,571

42,89248,822

70,400

Graduate Technician Intermediate /Chartered

Senior Associate Director / Partner

Male Female

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Job satisfaction

Job satisfaction has increased slightly overall in the past year; 69% of respondents satisfied to some degree in their jobs, compared with 66% in 2016.

Satisfaction is less polarised this year, with fewer people feeling strongly either way.

Surveyors of all types are the most satisfied in their jobs, and architects and structural engineers are the least satisfied.

Those that are very satisfied at work are the highest paid. Interestingly, those that are very unsatisfied at work are the next highest paid.

5%

12%

14%

49%

20%

AVERAGE SALARY BY JOB SATISFACTION LEVEL (£)

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49,56246,203

41,16043,315

51,793

VERY UNSATISFIED UNSATISFIED NEITHER SATISFIEDNOR UNSATISFIED

SATISFIED VERY SATISFIED

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RECEIVE WORKBENEFITS94%

TOP 5 BENEFITS RECEIVED ACROSS ALL DISCIPLINES

PENSION

74%MOBILE PHONE

58%

BONUS

45%DEATH IN SERVICE

INSURANCE

44%

HEALTHCARE

37%

TOP 5 MOST IMPORTANT BENEFITS ACROSS ALL DISCIPLINES

PENSION

57%BONUS

63%FLEXIBLE

WORKING

40%

CAR ALLOWANCE

35%HEALTHCARE

21%

Professionals were asked to list the benefits they receive and the benefits they perceive to be the most important. Notably, the two lists do not often closely align for any discipline.

Salary, bonus and pension are the most important motivations, with the desire for a higher salary and better career progression increasing on last year.

Flexible working is often highly desired but not offered, though this year’s results show less of a concern over work-life balance. Economic uncertainty has perhaps led the workforce to be more concerned around financial remuneration.

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1%

3%

4%

7%

9%

9%

9%

11%

12%

14%

17%

19%

23%

29%

53%

79%

Other

Better training

Share options

Enhanced job security

More recognition

Less pressure

More appealing work location

Better management

Better company culture

Easier commute

Better benefits package

Better variety of projects

Increased bonus

Better work-life balance

Improved career progression

Increased salary

TOP FACTORS THAT WOULD LEAD TO A NEW JOB SEARCH

Job satisfaction

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Optimism

There is a lot of optimism about the future of the industry’s economic outlook, with exactly the same levels of optimism shown at a cross-discipline level as prior to the Brexit vote.

Despite large concerns over Brexit and economic uncertainty, the workforce are seemingly overall confident that property and construction will fare well, with only 10% of respondents showing any degree of pessimism over the industry’s future.

Civil design engineers, project managers and general practice surveyors are the most optimistic.

The least optimistic are structural engineers, building services consultants and building surveyors.

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2%

8%

14%

59%

17%

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Challenges

Brexit was cited as the main challenge for the industry by a third of property and construction professionals, though several respondents stated that unnecessary concern over Brexit could in fact be the biggest problem and 2% of respondents listed confidence as the key issue.

Attracting and retaining staff remains high on the list of frustrations, and concerns persist over low project fees and a harsh competitive landscape.

Other obstacles include increasingly low quality of work, difficult timescales, cashflow, the planning system and the procurement processes. Poor business leadership also emerged as a concern this year.

THE LARGER THE WORD ABOVE, THE MORE COMMONLY IT WAS USED BY RESPONDENTS

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1%1%1%1%1%2%2%2%2%2%3%3%

4%4%5%5%

6%8%

10%26%

31%

Business leadershipLow salaries

Build costsProcurement process

Project viabilityCashflow

ConfidenceDon't know

Quality of workTimescales

Planning systemPolitical uncertainty

Land supplyPublic cuts

CompetitionLow fees

OtherFunding / investmentEconomic uncertainty

Talent / skillsBrexit

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Average salaries for all diciplines

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Page 40: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

Final words...

We hope that you have found the report to be useful and insightful, and retain it as a reference tool when hiring or job-hunting.

Keeping a finger to the pulse of the industry and analysing the motivations and perceptions of staff is crucial to maintaining a healthy workforce on an industry-wide and individual business scale.

We are pleased to see that the overall picture is one of positivity and resilience, in the face of theuncertainty ahead.

If you have any questions or would like more information about this report, contact us using the details on the next pages.

Thank you to all those who took part.

James AdamsonDirectorVertical Recruitment

Paul UngerEditorPlace North West

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Page 41: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

About Vertical Recruitment

Vertical Recruitment specialises in technical, construction and engineering recruitment.

Based in Manchester, Vertical works with consultancies and contractors of all sizes, placing candidates in:

• Architecture & surveying• Building services• Consulting engineering• Construction management• Power & process• Project management• Quantity surveying

Our approach is founded upon a genuine commitment to the success of our clients and candidates.

vertical-recruitment.co.uk@VerticalRec

Conavon Court12 Blackfriars StreetManchesterM3 5BQ

JAMES ADAMSONDIRECTORVERTICAL RECRUITMENT

[email protected] 669 4716

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Page 42: The Vertical Salary Review 2017 - Place North West€¦ · The results of the Vertical Salary Review 2017 suggest a wary but optimistic industry facing uncertainty and challenges

About Place North West

Place North West is a business-to-business website for property, regeneration and construction professionals. We publish news, commentary, in-depth reports, job vacancies, event listings, professional insight and analysis.

Our content focuses on architecture, design, construction, development, environment, conservation, finance, economics, housing, professional and legal, and transport.

The website and daily newsletter are read by more than 65,000 people each month.

In addition to online publishing, we also hold conferences and social events, covering an array of topics and locations. We aim to provide a platform for sharing knowledge and building property relationships in the region.

placenorthwest.co.uk@PlaceNorthWest

232 Royal ExchangeManchesterM2 7DD

PAUL UNGER EDITORPLACE NORTH WEST

[email protected] 535 262

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