Strong hiring intentions and employee caution post the Brexit vote mean those prepared to move jobs could be richly rewarded - as may firms prepared to be aggressive in sourcing new hires. David Blackman reports on Hays鈥� latest consultants鈥� salary survey
The salary boom is over 鈥� but consultants still did quite nicely last year. That鈥檚 the key message of the Hays annual consultants鈥� salary survey guide, published here exclusively.
This shows that consultants鈥� average salaries rose by 2.8% in 2016. While a slowdown compared with the previous year鈥檚 figure of 4%, this was still better than the average pay rise for all employees (1.8%).
Well above-inflation pay increases remain the norm in pockets of the consultancy world. Exactly one-fifth of consultant employers awarded salary increases of 5% or above, with about the same proportion (21%) planning to do so again this year, according to Hays. On top of that, half of consultant employees reported their bonus was higher last year than it had been 2015.
So who are the biggest winners and what is the outlook for this year given the uncertainty after the Brexit vote?
The survey shows that professional quantity surveyors enjoyed the biggest salary increases, netting an average of 5% at director level. But structural engineers and CAD technicians did almost as well, with some roles benefiting from average pay increases of a little more than 4%. However, architects and interior designers dipped out. Partners, directors and associates in the two disciplines netted a barely above-inflation increase of 1%.
The continued rise in consulting salaries reflects an optimistic mood among employers after the EU referendum, according to Richard Gelder, director at Hays Construction & Property. He says: 鈥淪alaries for consultants have risen for the fifth consecutive year, as the industry鈥檚 confidence remains steady alongside a demand for skilled staff.鈥�
Ann Bentley, global chairman of Rider Levett Bucknall (RLB), says Hays鈥� findings tally with the picture at her firm, where the average pay rise was 3% last year.
She believes that the pay picture is returning to equilibrium now that the post-recession catch up in salaries has largely washed through.
But that is not the case everywhere, she says, noting that pay pressures are most intense among recently qualified staff in London.
Sometimes the senior person in the interview isn鈥檛 being paid much more than the person they are interviewing
Richard Claxton, Pellings
鈥淭he biggest problem is salary disparity between London and the rest of the country.
We are having to pay some fairly stupendous salaries to 25- to 35-year-olds in London. They could be at least 拢5,000-拢10,000 more than we are paying in the rest of the country.鈥�
She doesn鈥檛 blame the staff members, she says, given the high cost of living in the capital.
Richard Claxton, chairman of Bromley-based consultant Pellings, says that escalating pay rises means pay scales have had to be re-examined.
鈥淪ometimes the senior person in the interview isn鈥檛 being paid much more than the person they are interviewing.鈥�
Pay pressure on profits
Escalating pay inevitably puts a pressure on profits, says James Bryce, the recently appointed director of workforce planning at Arcadis. 鈥淭he challenge is the margins that can be achieved at those salary rates.鈥�
And the pressure on employers to increase salaries is not waning. Only 54% of consulting employees are satisfied with their pay, according to Hays. Just over two-thirds (64%) expect a salary rise over the next 12 months, while 34% plucked up the courage to ask for one this year.
The good news for these employees is that the door is likely to be ajar when they go knocking for a rise, despite the uncertainty resulting from last June鈥檚 vote to withdraw from the EU.
According to a survey carried out by Hays in the autumn, 67% of employers stated they would still increase pay, while 31% would maintain it at the same level. Only 2% of construction consultancies said they had plans to decrease pay following the referendum.
These findings reflect a continuing bullishness about the construction market. The same survey shows that 64% of firms predict a rise in activity during 2017, with only 7% forecasting that the market will shrink.
RLB鈥檚 Bentley says that there was an overall dip in activity immediately following last June鈥檚 vote. 鈥淓verybody was suicidal, particularly in the residential market.鈥� However, the level of enquiries has been 鈥渂uoyant鈥� since then, she adds, especially from overseas investors.
As well as strong interest from Chinese clients, she has spotted a new breed of South African investors who have seen their currency, the rand, appreciate while the pound has dropped in value since the referendum. 鈥淚t鈥檚 noticeable because we had never worked for a South African client until 18 months ago,鈥� she says.
Paul Newing, WSP鈥檚 UK head of human resources, agrees that the market has weathered the EU vote. 鈥淭here was a blip just after Brexit, particularly in the South-east but that was offset by growth in the North.鈥� WSP is planning to recruit 250 to 300 graduates and apprentices over the next year.
Career progression fears
One of the most worrying findings in Hays鈥� annual consultants鈥� salary survey centres on progression.Just under two-thirds (62%) of consultants reported 鈥渘o scope for career progression鈥� within their organisation, which is 12 percentage points more than the UK average for all employees.
This pessimism about the lack of opportunities probably helps to explain why the same proportion of employees are open to considering a job move within the coming year.
Hays鈥� Richard Gelder says employers need to work harder at identifying career paths within their organisations. He says: 鈥淓mployers are advised to address pay priorities in this instance and look to increase desired benefits such as flexible working, increased holiday and above-statutory contributory pension.鈥�
Being in tune with employees鈥� aspirations is important too, says Gleeds鈥� Stuart Senior, giving as an example a member of staff who has just transferred within the practice from London to New York. 鈥淭hat came out of a dialogue about the types of career path benefits that could accrue from the growth of our business,鈥� he says.
Training can also keep staff engaged and growth can open up opportunities for progression within firms, says Pellings鈥� Richard Claxton. RLB鈥檚 Ann Bentley says the next few years could see an opening up of opportunities within consultancy firms as senior staff hit retirement age. She says: 鈥淚t鈥檚 rare to meet a young director of a company and most senior staff in construction are well over 50, so in the next 10 years there should be massive room for movement.鈥�
Strong hiring intentions
And across the board, hiring intentions remain strong. Bentley expects RLB to match this year鈥檚 10% growth in headcount, while Bryce says Arcadis鈥� staff numbers could be up to 15% greater by the end of the year.
Stuart Senior, the board director at Gleeds responsible for people, says the firm is targeting an increase of 16% to 17% across the UK in 2017.
However luring people away may not be as easy as it was 12 months ago. Brexit uncertainty seems to be weighing on would be movers鈥� minds. Senior says: 鈥淧eople aren鈥檛 moving quite so readily and haven鈥檛 been for a time.鈥�
Newing agrees that employees are a bit more reticent about jumping ship. 鈥淭hey are looking for a good reason to move,鈥� he says.
Against this backdrop, it is hardly surprising that poaching is continuing. Bentley says the concept of company loyalty is nowhere near as deeply entrenched as it was when she started in the industry.
鈥淔ive or six years ago, we would not have overtly approached staff in other organisations. We do now, to be honest, but then our staff get approached all the time.鈥�
And it is not just rival consultancies that have made approaches, she says, noting that contractors have been responsible for some of the most aggressive poaching.
Developers are getting in on the act too, says Gleeds鈥� Senior. 鈥淭he people that leave for big rises tend to go to clients,鈥� he says, noting that Gleeds recently had to say goodbye to a staff member who was offered a 60% salary increase.
鈥淲e won鈥檛 compete because it destabilises the salary structure of the business. Hopefully everybody disengages on good relations and hopefully that person will become a client in due course,鈥� he says.
Arcadis鈥� Bryce understands why those reaching the mid-point of their careers may be attracted by an in-house role. 鈥淚f you are in the mid-30s with a couple of young kids, you will chase the pay cheque.鈥�
But he insists that consultancies are still able to offer richer professional opportunities: 鈥淵ou can get a 20% salary increase but a smaller company can鈥檛 offer you the same experience or career development that an organisation like ours can.鈥�
The temptation to stray is fuelled by recruitment agencies, says Pellings鈥� Claxton, who says employees鈥� expectations are stoked by phone calls from headhunters dangling tasty salary offers. 鈥淚t creates constant mobility and agencies only make money if people move.鈥�
However, one of the main reasons that consultants are so vulnerable remains the underlying shortage of skilled people in the industry. When asked to identify the top challenges in recruiting staff over the next 12 months, consultant employers reported that a shortage of suitable applications and applicants鈥� unrealistic salary requirements were the two chief headaches.
Just over two-thirds (65%) of employers said that operations and technical roles were the hardest to fill.
In a bid to address any skills shortages, nearly half (43%) of employers said they would hire temporary or contract workers to address immediate work priorities.
Temporary solutions
鈥淭he solutions indicate a positive outlook towards 鈥榮uper-temps鈥�, highly skilled professionals who manage projects in an interim, as the consultant sector struggles to fill operations, managerial and leadership roles,鈥� says Hays鈥� Gelder.
And the new wave of mega-projects, notably HS2 and the Hinkley nuclear plant, looks set to spread skills shortages. Coming down the line in Birmingham, literally, is HS2, which is already having an impact on the local construction jobs market, says Bentley 鈥� and demand at Hinkley has affected skills availability in the South-west.
鈥淭he number of quantity surveyors they want at Hinkley is eye watering: running into the hundreds. We鈥檝e already seen the impact in Bristol, with people wanting to go freelance to double their salary.鈥�
Relief may be at hand though, as increasing numbers of graduates emerge from construction courses, she adds.
Course numbers at Birmingham City University and the University of Reading, both of which she lectures at, have expanded back to pre-financial crisis levels on the back of resurgent confidence in the construction market.
Bentley says there are 鈥渄efinitely鈥� more graduates to pick from now. 鈥淲e had a reasonable choice this year, whereas five years ago there was none.鈥�
And while getting youngsters into the business won鈥檛 provide immediate relief for skills gaps, it should pay off down the line, says Gelder.
鈥淭his will provide the opportunity for junior or middle managers to move up the career ladder quicker if they can demonstrate and improve upon the skills in demand.鈥�
But with skills shortages likely to be even further exacerbated by the UK鈥檚 withdrawal from the EU, the worry is that tomorrow鈥檚 talent will arrive too late to meet today鈥檚 needs.
Professional quantity surveyors
| Region | Partner/director | Associate | Senior surveyor | Newly qualified surveyor | Graduate surveyor | Claims and dispute resolution | Project manager |
|---|---|---|---|---|---|---|---|
| Average change 2016-2017 | 5% | 4% | 4% | 4% | 4% | 1% | 3% |
| East Midlands | 拢65,000 | 拢50,000 | 拢45,000 | 拢35,000 | 拢23,500 | 拢44,500 | 拢45,000 |
| East of England | 拢64,000 | 拢50,000 | 拢45,000 | 拢35,000 | 拢22,000 | 拢50,000 | 拢42,000 |
| London | 拢92,500 | 拢70,000 | 拢57,000 | 拢41,000 | 拢27,000 | 拢75,000 | 拢52,000 |
| North-east | 拢55,000 | 拢48,000 | 拢45,000 | 拢30,000 | 拢21,000 | 拢38,000 | 拢40,000 |
| North-west | 拢75,000 | 拢53,000 | 拢45,000 | 拢35,000 | 拢24,000 | 拢51,000 | 拢44,000 |
| Northern Ireland | 拢65,000 | 拢48,500 | 拢38,000 | 拢32,000 | 拢20,000 | 拢45,000 | 拢38,000 |
| Scotland | 拢72,000 | 拢65,000 | 拢54,000 | 拢36,500 | 拢22,000 | 拢45,000 | 拢45,000 |
| South-east England | 拢83,500 | 拢65,000 | 拢52,000 | 拢40,000 | 拢25,000 | 拢48,000 | 拢53,000 |
| South-west England | 拢63,000 | 拢50,000 | 拢44,000 | 拢33,000 | 拢24,000 | 拢45,000 | 拢42,000 |
| Wales | 拢60,000 | 拢46,500 | 拢39,500 | 拢31,500 | 拢21,000 | 拢45,000 | 拢45,000 |
| West Midlands | 拢65,000 | 拢54,000 | 拢45,000 | 拢31,500 | 拢23,500 | 拢42,500 | 拢43,000 |
| Yorkshire and Humber | 拢65,000 | 拢50,000 | 拢45,000 | 拢35,000 | 拢22,000 | 拢53,000 | 拢45,000 |
| National average | 拢68,750 | 拢54,167 | 拢46,208 | 拢34,625 | 拢22,917 | 拢48,500 | 拢44,500 |
黑洞社区 surveyors
| Region | Partner/director | Associate | Senior surveyor | Newly qualified building surveyor | Graduate building surveyor | Maintenance surveyor |
|---|---|---|---|---|---|---|
| Average change 2016-2017 | 3% | 5% | 4% | 4% | 3% | 2% |
| East Midlands | 拢60,000 | 拢50,000 | 拢43,000 | 拢35,000 | 拢22,000 | 拢30,000 |
| East of England | 拢65,000 | 拢48,000 | 拢40,000 | 拢32,000 | 拢20,000 | 拢30,000 |
| London | 拢92,500 | 拢70,000 | 拢55,000 | 拢40,000 | 拢27,000 | 拢37,000 |
| North-east | 拢50,000 | 拢43,000 | 拢43,000 | 拢30,000 | 拢21,000 | 拢32,000 |
| North-west | 拢71,000 | 拢48,000 | 拢41,000 | 拢36,000 | 拢23,000 | 拢29,000 |
| Northern Ireland | 拢50,000 | 拢40,000 | 拢32,000 | 拢28,000 | 拢18,500 | 拢27,500 |
| Scotland | 拢70,000 | 拢58,000 | 拢50,000 | 拢35,000 | 拢22,000 | 拢28,000 |
| South-east England | 拢75,000 | 拢60,000 | 拢50,000 | 拢35,000 | 拢22,000 | 拢35,000 |
| South-west England | 拢66,000 | 拢49,000 | 拢39,000 | 拢32,000 | 拢23,000 | 拢31,000 |
| Wales | 拢60,000 | 拢47,500 | 拢42,000 | 拢30,000 | 拢22,000 | 拢30,000 |
| West Midlands | 拢63,500 | 拢50,000 | 拢41,000 | 拢32,000 | 拢22,500 | 拢30,500 |
| Yorkshire and Humber | 拢65,000 | 拢47,000 | 拢42,000 | 拢34,000 | 拢22,000 | 拢27,000 |
| National average | 拢65,667 | 拢50,875 | 拢43,167 | 拢33,250 | 拢22,083 | 拢30,583 |
Architects
| Region | Partner/director | Associate | Architect | Architectural assistant, Part II | Architectural assistant, Part I |
|---|---|---|---|---|---|
| Average change 2016-2017 | 1% | 1% | 2% | 2% | 2% |
| East Midlands | 拢58,000 | 拢44,000 | 拢40,000 | 拢25,000 | 拢19,500 |
| East of England | 拢53,000 | 拢43,000 | 拢40,000 | 拢22,000 | 拢18,000 |
| London | 拢85,000 | 拢64,500 | 拢45,000 | 拢30,500 | 拢21,500 |
| North-east | 拢50,000 | 拢40,000 | 拢31,000 | 拢20,000 | 拢17,000 |
| North-west | 拢65,000 | 拢45,000 | 拢36,000 | 拢25,000 | 拢18,000 |
| Northern Ireland | 拢50,000 | 拢42,000 | 拢33,000 | 拢22,000 | 拢16,000 |
| Scotland | 拢55,000 | 拢45,000 | 拢36,000 | 拢23,000 | 拢16,000 |
| South-east England | 拢65,000 | 拢50,000 | 拢42,000 | 拢28,000 | 拢21,500 |
| South-west England | 拢51,000 | 拢42,000 | 拢38,000 | 拢26,000 | 拢16,000 |
| Wales | 拢50,000 | 拢39,000 | 拢34,000 | 拢25,000 | 拢17,000 |
| West Midlands | 拢58,000 | 拢44,000 | 拢38,000 | 拢24,000 | 拢17,000 |
| Yorkshire and Humber | 拢58,000 | 拢45,000 | 拢32,000 | 拢22,000 | 拢17,500 |
| National average | 拢58,167 | 拢45,292 | 拢37,083 | 拢24,375 | 拢17,917 |
Interior designers
| Region | Senior interior designer | Interior designer |
|---|---|---|
| Average change 2016-2017 | 3% | 1% |
| East Midlands | 拢34,000 | 拢28,000 |
| East of England | 拢35,000 | 拢30,000 |
| London | 拢46,000 | 拢38,000 |
| North-east | 拢27,500 | 拢25,000 |
| North-west | 拢34,000 | 拢27,000 |
| Northern Ireland | 拢27,500 | 拢23,000 |
| Scotland | 拢33,000 | 拢27,000 |
| South-east England | 拢38,000 | 拢32,000 |
| South-west England | 拢30,000 | 拢26,000 |
| Wales | 拢31,000 | 拢26,000 |
| West Midlands | 拢38,500 | 拢28,000 |
| Yorkshire and Humber | 拢28,500 | 拢25,000 |
| National average | 拢33,583 | 拢27,917 |
Architectural CAD technicians
| Region | Senior CAD technician | CAD technician | Technician |
|---|---|---|---|
| Average change 2016-2017 | 5% | 3% | 2% |
| East Midlands | 拢36,000 | 拢28,000 | 拢29,000 |
| East of England | 拢33,000 | 拢25,000 | 拢30,500 |
| London | 拢40,000 | 拢30,000 | 拢33,000 |
| North-east | 拢28,500 | 拢24,000 | 拢28,000 |
| North-west | 拢36,000 | 拢26,000 | 拢30,000 |
| Northern Ireland | 拢29,000 | 拢22,500 | 拢23,000 |
| Scotland | 拢33,000 | 拢21,500 | 拢25,000 |
| South-east England | 拢38,000 | 拢28,000 | 拢33,000 |
| South-west England | 拢34,000 | 拢26,000 | 拢28,000 |
| Wales | 拢32,000 | 拢23,000 | 拢24,000 |
| West Midlands | 拢34,000 | 拢27,000 | 拢28,000 |
| Yorkshire and Humber | 拢30,000 | 拢24,000 | 拢29,000 |
| National average | 拢33,625 | 拢25,417 | 拢28,375 |
Civil CAD technicians
| Region | CAD manager | Senior CAD team leader | CAD technician |
|---|---|---|---|
| Average change 2016-2017 | 2% | 4% | 4% |
| East Midlands | 拢37,000 | 拢35,000 | 拢32,000 |
| East of England | 拢39,000 | 拢37,000 | 拢29,000 |
| London | 拢53,750 | 拢46,000 | 拢37,000 |
| North-east | 拢35,000 | 拢31,000 | 拢22,000 |
| North-west | 拢39,000 | 拢37,000 | 拢29,000 |
| Northern Ireland | 拢32,000 | 拢29,000 | 拢26,000 |
| Scotland | 拢39,000 | 拢39,000 | 拢30,000 |
| South-east England | 拢38,000 | 拢38,000 | 拢30,000 |
| South-west England | 拢38,000 | 拢36,000 | 拢27,000 |
| Wales | 拢36,000 | 拢30,000 | 拢25,000 |
| West Midlands | 拢37,000 | 拢39,000 | 拢30,000 |
| Yorkshire and Humber | 拢36,000 | 拢31,000 | 拢26,000 |
| National average | 拢38,313 | 拢35,667 | 拢28,583 |
Structural engineers
| Region | Associate | Senior engineer | Engineer | Graduate engineer |
|---|---|---|---|---|
| Average change 2016-2017 | 3% | 4% | 2% | 2% |
| East Midlands | 拢55,000 | 拢46,000 | 拢39,000 | 拢23,000 |
| East of England | 拢52,000 | 拢44,000 | 拢36,000 | 拢25,000 |
| London | 拢65,000 | 拢52,000 | 拢39,500 | 拢28,500 |
| North-east | 拢49,000 | 拢40,000 | 拢32,000 | 拢22,000 |
| North-west | 拢52,000 | 拢41,000 | 拢34,000 | 拢24,000 |
| Northern Ireland | 拢45,000 | 拢36,000 | 拢28,500 | 拢23,000 |
| Scotland | 拢52,000 | 拢41,000 | 拢32,000 | 拢25,000 |
| South-east England | 拢54,000 | 拢45,000 | 拢35,000 | 拢25,000 |
| South-west England | 拢55,000 | 拢40,000 | 拢32,000 | 拢22,000 |
| Wales | 拢50,000 | 拢40,000 | 拢32,000 | 拢22,000 |
| West Midlands | 拢58,000 | 拢45,000 | 拢36,000 | 拢25,000 |
| Yorkshire and Humber | 拢48,000 | 拢38,500 | 拢30,000 | 拢22,500 |
| National average | 拢52,917 | 拢42,375 | 拢33,833 | 拢23,917 |
Environmental/geotechnical engineers
| Region | Associate | Senior engineer | Engineer | Graduate engineer |
|---|---|---|---|---|
| Average change 2016-2017 | 4% | 2% | 4% | 2% |
| East Midlands | 拢50,000 | 拢37,000 | 拢31,000 | 拢23,000 |
| East of England | 拢50,000 | 拢43,000 | 拢32,000 | 拢25,000 |
| London | 拢62,500 | 拢46,000 | 拢37,500 | 拢29,500 |
| North-east | 拢43,000 | 拢36,000 | 拢30,000 | 拢24,000 |
| North-west | 拢51,000 | 拢40,000 | 拢31,000 | 拢26,000 |
| Northern Ireland | 拢45,000 | 拢36,000 | 拢30,000 | 拢23,000 |
| Scotland | 拢46,000 | 拢38,000 | 拢28,500 | 拢22,000 |
| South-east England | 拢52,000 | 拢40,000 | 拢33,500 | 拢25,000 |
| South-west England | 拢51,500 | 拢36,000 | 拢28,000 | 拢22,000 |
| Wales | 拢43,000 | 拢36,500 | 拢30,500 | 拢23,000 |
| West Midlands | 拢48,000 | 拢42,000 | 拢32,000 | 拢24,000 |
| Yorkshire and Humber | 拢41,000 | 拢35,500 | 拢28,000 | 拢22,500 |
| National average | 拢48,583 | 拢38,833 | 拢31,000 | 拢24,083 |
Methodology
Hays surveyed over 188 employees and 84 employers from consulting firms in spring 2016.
A separate salary guide survey was carried out in September 2016, after the EU referendum. Salary data has been compiled using information gathered during 2016 from Hays offices across the UK, it is based on job listings, job offers and candidate registrations.
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