Posts

Without focusing on recruitment building firms risk going out of business

A lack of focus on bolstering the workforce could push construction firms out of business, according to industry experts One Way.

An analysis by the specialist rail and construction recruitment consultancy found that firms are recruiting on a short term basis and are therefore forced to pay day rates that are well above the standard rate. Insolvency specialists, Begbies Traynor, recently published its latest ‘Red Flag’ report which found that over 40,000 construction companies were operating in a state of ‘significant’ financial distress at the end of June. A year ago the number stood at 33,222.

Paul Payne, managing director of One Way, said “Far too many construction firms don’t have a plan in place for finding skills when they need them on a short term basis and are forced into a situation where they have to pay excessively high day rates just to get the staff they need. You can see why they do it, but by planning ahead, firms can source the best skills in the market, at a fairer price and avoid any unnecessary headaches. This doesn’t just make their lives easier when it comes to staffing projects, but also removes some of the excessive costs. When construction firms look to become more efficient they often analyse their raw materials suppliers, however those savings are relatively small in comparison to those that could potentially be saved by developing robust talent pipelines into the industry. These statistics highlight that firms are being pushed to the brink and planning effectively and concentrating on recruitment could help to significantly lower costs.”

“The main issue preventing them from building these routes into the field is that there simply aren’t enough people in the industry and very few firms are doing anything about it. That means there’s a limited supply of skills in the market and the individuals in demand can essentially name their price as they’re so highly sought after. By building talent pipelines and communities you can avoid these additional costs as you’ll have a pool of available talent to fall back on if required. The skills shortages are only going to get worse once we leave the European Union, so it’s crucial that firms start planning before it’s too late. We’ve launched two campaigns to boost the number of women and youngsters entering the construction industry respectively. However initiatives like this are few and far between and we need to see more proactive work taking place, otherwise staffing costs will continue to rise and firms could ultimately be forced out of business.”

/0 Comments/by

Leading Eco-Roof company calls for Yorkshire colleges to upskill or risk being left behind

,

Huddersfield-based energy efficiency roofing specialist, Ploughcroft, has issued a stark warning to construction colleges across the region: upskill and evolve, or risk being left behind in the fast-moving roofing industry.

With hundreds of students leaving construction colleges to seek employment this summer, Chris Hopkins, Divisional Director at Ploughcroft, is warning the majority of those leavers will be untrained and unprepared for the energy saving construction techniques that consumers now demand.

An industry first

As a consequence, Ploughcroft has taken the initiative to develop its own pioneering, Eco-Roof apprenticeship scheme – which has already been trailed over the last 12-months. This is believed to be an industry first.

This proactive approach from Ploughcroft is essential to provide apprentices with the skills and knowledge required to succeed in the fast-growing energy efficiency industry, and to underpin the cost-effective installation of new roofing schemes.

While under the current college curriculum, the focus quite rightly covers the basic roofing installation essentials, it fails in the view of Chris Hopkins, when it comes to the incorporation of now crucial energy efficient-related skill sets, such as U-Value calculations, condensation risk analysis and heat-loss monthly savings.

This means forward-thinking companies such as Ploughcroft, which lead the way with its unique Eco-Roof product, are unable to find suitably qualified staff, even at entry-level positions, further exacerbating the industry-wide skills shortage. Ploughcroft believes that by ‘future proofing’ the Apprenticeship schemes, this will also have the knock-on effect of attracting the brightest and best to the industry.

Chris Hopkins is now calling for urgent dialogue with course and curriculum planners to collaborate to address this key area. He said “Over the past three years we have seen a rapid growth in our Eco-Roof business, as energy prices continue to rise, and customers become increasingly clued-up when it comes to greener living and the impact it can have on their energy bills.

“However, while consumer demand rises, colleges simply aren’t keeping up. Given there was no existing eco roof apprenticeship scheme in place that covered the type of specialist work we carry out, we’ve been trialing and created our own using my professional teaching and roofing assessor qualifications.

“That said, we can only do so much, and today’s apprentices are the people who will drive the energy efficiency industry forward in years to come. As such it is absolutely essential that colleges – and other construction businesses – continue to evolve, and invest in skills and development.”

One of Ploughcroft’s most successful apprentices is 18-year-old Charlie Oakes, who began his apprenticeship in 2015 when the scheme launched. He says: “Joining the Eco-Roof apprenticeship has been a fantastic experience. Roofing is often seen as industry that lacks innovation, but working at Ploughcroft I’ve found that’s not the case, and I’ve learned a great deal about emerging energy efficiency techniques. This is a huge growth area, and one I’m excited to see developing.”

Ploughcroft’s two-year Eco-Roof apprenticeship offers a mix of on-the-job training and classroom-based learning spanning traditional roofing, as well as a wide range of cutting-edge, energy-efficient construction techniques required to meet the needs of this fast-growing eco-construction sector. It is currently seeking graduates to join its Eco-Roof apprenticeship scheme.

To find out more, visit www.ploughcroft.co.uk.
/0 Comments/by

Skills shortages remain key challenge to infrastructure delivery

Construction and infrastructure workload expectations continue to improve with respondents the most positive since the referendum, according to the latest Royal Institution of Chartered Surveyors (RICS) Construction and Infrastructure Market Survey, Q1 2017. The pace of growth has increased across all sectors pointing to a widespread improvement in the sector.

In Q1 2017 27% more respondents reported an increase in workloads, (up from +18% in Q4 2016). Expectations for the next 12 months also remain firmly positive particularly for activity levels although they have reduced slightly in case of profit margins.

The shortage of skilled labour persists in UK infrastructure and construction and is again widely cited by contributors as a factor potentially impacting the performance of businesses working in the industry.

Looking at the different sectors, 34% more respondents cited an increase in private housing output rather than a decrease, which puts it above the other sectors for the pace of growth once again; this has been the case since Q1 2013.

While the commercial sector saw the largest growth in workload for the quarter (compared with Q4 2016) with 31% more respondents seeing a rise, infrastructure workloads continue to grow steadily with the most significant increases in rail, road and energy categories.

These sectors are also viewed as the most promising sectors in infrastructure for the next 12 months. Breaking this down, 60% of respondents felt that repair and maintenance work of existing structures is the most needed type of investment in their area whilst 40% felt investment in new projects was necessary.

Growing skills shortages

As workloads increase, skill shortages are still sighted as a significant problem to the industry with 53% of respondents stating a shortage of skilled labour to be a key impediment to growth.

This is slightly up from 50% in the last quarter. In recent reports, the proportion of respondents noting skill shortages to be the major barrier to growth had come down slightly but the latest results along with surveyors’ comments suggest labour shortage pressure across the UK construction sector is intensifying once more.

Alongside this, 65% of respondents reported insufficient availability of quantity surveyors, with skill shortages in this area becoming increasingly prominent since 2012. The results also point to the quality of available workers (rather than simply the quantity) being the principle driver in skill shortages, with 67% of respondents taking this view.

Looking at this further, 59% of contributors feel that improved education pathways and training would the most effective policy response to alleviate labour supply pressures, whilst 31% of contributors feel direct government subsidisation of training would be the most effective.

Financial constraints and their impact

Meanwhile, financial constraints are still the most significant obstacle to growth with 70% of respondents citing this as an issue. Planning and regulation remains a significant impediment to growth with 61% of respondents citing this as an obstacle (up from 53% in Q4 2016).

At the same time, tender prices are expected rise in the next 12 months. Specifically, 69% more respondents believe tender prices will go up in the building sector (rather than fall). The expected increase in tender prices may signal rising costs and shrinking profit margins which is also reflected in the 12 month expectation of profit margins easing from +26% in Q4 2016 to +18% in Q1 2017.

Regionally all parts of the UK have observed an increase in pace of output growth in Q1, with the exception of Northern Ireland. The was due to the pace of growth slowing within the infrastructure, private industrials and public non-housing sectors. Output growth gathered the most pace in London and the South East where the net balance rose from +7% to +22%.

Jeff Matsu, RICS Senior Economist said “The mood music in the construction sector has improved in line with the better tone to macro data more generally. However the survey does highlight some key challenges that need to be addressed if government’s ambitious plans for housing and infrastructure, in particular, are to be met. Access to finance, alongside planning and skill shortages, both quality and quantity, remain big obstacles to delivery and though some plans are in place to address these issues, it remains to be seen whether they are sufficient to make a meaningful impact.”

/0 Comments/by

Government needs to take note of worsening construction skills shortage now, warn industry experts

The skills shortage in the construction industry has got worse and has now spread beyond bricklayers and carpenters to other key trades, according to recent research by the Federation of Master Builders (FMB).

The FMB’s State of Trade Survey for Q4 2016 shows that:

  • Almost half of construction SMEs are reporting difficulties hiring roofers (46%)
    Shortages of electricians and plasterers are at their highest point in four years
    The SME construction sector has experienced fifteen consecutive quarters of growth.

Brian Berry, Chief Executive of the FMB, said “We’ve been experiencing a severe shortage of bricklayers and carpenters for quite some time – these latest statistics show that skills shortages are now seeping into other key trades such as roofers and plumbers. Indeed, of the 15 key trades and occupations we monitor, 40% show skills shortages at their highest point since we started to feel the effects of the skills crisis in 2013 when the industry bounced back post-downturn. This growing skills deficit is driving up costs for small firms and simultaneously adding to the pressure being felt by soaring material prices linked to the weaker pound.

“The Government needs to be taking note of the worsening construction skills shortage now that we know that the UK will be negotiating a hard Brexit. The Prime Minister must ensure that the immigration system that replaces the free movement of people serves key sectors such as construction and house building. Our sector relies heavily on skilled labour from the EU, with 12% of the British construction workforce being of non-UK origin. As the construction industry represents around 7% of UK GDP, it’s in no one’s interest to pull the rug out from under the sector by introducing an inflexible and unresponsive immigration system.

“On a more positive note, construction SMEs reported steady growth in the final three months of 2016, capping off a generally positive year for the industry. In particular, demand for private refurbishment work was robust throughout 2016 and in terms of private and social house building, builders expect workloads to grow in the first three months of 2017. However, if the Government wants the objectives of its Housing White Paper to be realised, it will need to ensure the construction sector has the skilled workers it needs to build these new homes.”

/0 Comments/by

Shrinking construction workforce may be a problem for Heathrow’s third runway

A new runway at Heathrow will put even more pressure on a declining construction workforce, a leading construction advisor has warned.

Mark Farmer, chief executive of Cast, a consultancy and the author of a government review into construction, has said that without radical steps to address its skills shortage, Britain’s construction sector will struggle to redevelop Heathrow alongside the existing pressures of increased housing delivery and other demands likely to be placed on it such as HS2 and Hinkley Point.

Best-case scenarios have put the third runway a decade away – by which time Britain could have lost 20 – 25% of the workforce through retirement and lack of new entrants. All of these factors are likely to be made worse by Brexit. Mark Farmer, who authored the government-backed review, believes serious reforms are needed in order to deliver large infrastructure projects.

The report, titled ‘Modernise or Die: time to decide the industry’s future’, highlights construction’s dysfunctional training model, its lack of innovation and collaboration as well as its non-existent research and development (R&D) culture. Low productivity continues to hamper the sector, while recent high levels of cost inflation, driven by a shortage of workers, has stalled numerous housing and infrastructure schemes as they have become too expensive to build.

With more people leaving the industry each year than joining, the construction workforce is shrinking, placing increasingly severe constraints on its capacity to build housing and infrastructure. Reliance on a fractured supply chain and self-employment also means there is little incentive for contractors to invest in long term training for the labour force.

Crucially, the sector hasn’t raised its productivity in decades so urgently needs to explore ways to make the work less labour intensive, such as through offsite construction. This, in turn, could make a career in the sector more attractive for young people by moving the work from building sites to digitally enabled working in factories.

Mark Farmer, report author and chief executive of Cast, said “Major infrastructure projects like the third runway are crucial for economic growth and this is great news for long term construction demand in what is a very cyclical industry. However, major government infrastructure commitments like this alongside their significant housebuilding ambitions mean more than ever that we need to take affirmative action in addressing the critical issues facing construction’s productivity, resource base and delivery models.”

/0 Comments/by

Theresa May’s industrial strategy “must address Brexit skills impact”

When Theresa May became Prime Minister, she announced that the UK government would develop an ‘industrial strategy’ to deliver a modern, innovative and competitive economy. Leading international infrastructure group Balfour Beatty are warning the government that projects such as HS2 run the risk of losing valued foreign workers post-Brexit unless tackling the skills shortage is made high priority within the strategy.

In Balfour Beatty’s latest publication entitled “Industrial Strategy: A Vision for Growth,” they highlighted that that around 2.2 million EU nationals working within the UK have helped make up a skilled workforce that the UK would be unable to source alone, should the free movement of labour be compromised.

The paper suggests that the heightened uncertainty surrounding EU labour in a post-referendum Britain risks causing severe recruitment and staffing difficulties. This in turn could lead to increased costs where demand for labour outstrips supply, resulting in long delays – especially on big projects such as HS2 and Hinkley Point.

The report says “An early and integrated policy response to both retain the skills of those who have migrated here and to ensure that the UK remains an attractive place for talented people to reside should be a key element of Government’s industrial strategy.”

Homegrown talent

Balfour Beatty has also stressed the importance of attracting and retaining new talent from inside the UK if we are to successfully thrive in a UK outside of the EU.

“The Government’s industrial strategy should also seek to address the skills shortage in the UK directly, by continuing to support the upskilling of our own workforce. If we want a successful industrial strategy then we must invest in the people who will deliver it, so skills, the investment in human capital, must be a priority in the industrial strategy. In this vein, we welcome Government’s plans to increase the number of apprentices by 3 million and introduce the Apprenticeship Levy.”

“However, we do not believe that the apprenticeship levy alone will be enough to meet the shortfall in skilled workers the infrastructure industry needs. To effectively resolve these skilling issues, we believe it’s necessary that for a collegiate approach to agree a clearly defined programme, designed through close interaction and genuine dialogue between government, industry and representative bodies, such as the Construction Leadership Council. Most importantly, the strategy should be adhered to over the long-term as we see in other countries such as Germany.”

Read the full report here.
/0 Comments/by

Without skilled migrant workers the UK faces construction crisis, warns experts

Secure post-Brexit access to a skilled workforce or risk a construction crisis, professional bodies warn Government Brexit Minister, David Davis has been warned that the UK’s construction skills crisis could severely worsen, if the Government does not take steps to ensure access to a skilled workforce during its post-referendum negotiations.

The warning comes from a coalition of professional bodies representing the construction and built environment sectors. The Royal Institution of Chartered Surveyors (RICS), the Royal Institute of British Architects (RIBA), the Chartered Institute of Building (CIOB) and the Royal Town Planning Institute (RTPI) have written to the Secretary of State for Exiting the European Union, outlining their concerns around skills, as well as five other priorities that the UK Government should focus on in light of the UK’s Brexit vote.

The six priorities are:

Access to skills

The greatest strength of our sector is the skill of our workforce. The free movement of labour within the EU has been vital to the growth and flexibility)of the construction sector. Access to a skilled workforce of the highest quality and a focus on developing the next generation of home-grown talent are critical to ensure we can build the homes businesses and infrastructure we need to compete globally. We therefore urge the Government to explore options and approaches to ensure that this access is not impeded to the detriment of the built environment.

Common standards

We believe that the UK has much to gain from pursuing an approach that makes it easier to do business with trading partners new and old. Access to markets in the EU and around the world has transformed the UK construction sector. The mutual recognition of qualifications and the development of common technical standards have reduced the barriers our members face working abroad. Reducing tariffs and harmonising standards have helped UK firms of all sizes expand to Europe and beyond. These common approaches have also meant that UK businesses can support best-practice in environmental and product standards, supporting efforts on global issues such as climate change. It is imperative that governments in the UK protect and promote the UK’s role as a leader in environmental and consumer protection standards.

Research excellence

Our members have benefitted from the collaborative research that the EU has enabled and promoted. Our future success depends on maintaining these relationships, while forging new ties with research organisations around the world. In addition the continued success of our world class university courses training our young people in the built environment is essential to the underpinning of research and the continued supply of labour for construction and allied activities.

Infrastructure investment

The UK’s global competitiveness will be hampered unless we do more to tackle the major infrastructure challenges we face. With a housing crisis, and growing concerns around energy, telecoms, road, rail and airport capacity, the Governments in the UK must seek and entice prospective investors to consider infrastructure of all kinds. Providing confidence to the construction industry through infrastructure funding and development will provide stability during a period of uncertainty and ensure that the UK is well-placed to take advantage of growth opportunities in the future.

Devolution commitment

The referendum has brought divide between the different parts of the UK into sharp focus. Our organisations welcome the recent commitment to continuing the Northern Powerhouse and we believe that further devolution from Whitehall should be a key priority for the UK government as powers move from the European Commission. Devolution will enable a rebalancing of the economy so that all parts of the UK can benefit from any new opportunities arising from the UK’s new relationship with the European Union, and is an effective way of ensuring infrastructure spending is efficient, timely, coordinated and accountable.

Community development

Through the extensive skills and experience of our members we are best-placed to advise on how the built environment can unlock new opportunities and combat existing challenges, as well as provide places for people to live, work and play. Leaving the EU could present a great opportunity for the UK, but it should not be associated with a drive to the bottom in the environmental and building standards which future generations will live with.

RICS President, Amanda Clack FRICS, said “Recent RICS figures have shown that we are in the grip of our worst construction skills crisis in almost 20 years. There is a real concern within our industry that if access to a skilled workforce is further restricted, Britain could stop building. My colleagues and I would urge Government to keep this at the front of their minds when they come to negotiate our withdrawal from the EU.

“We know that infrastructure and construction investment is key to Britain’s economic growth. The uncertainty that immediately followed the referendum outcome led to decline in economic growth, increased market volatility and a reduction in UK infrastructure investment.

“While the initial post-Brexit slump appears to have stabilised, it is important that the Government focuses on maintaining infrastructure and construction investment leading up to and after Brexit, ensuring the right conditions are in place to attract infrastructure investors in all sectors across the UK.

“As we approach an unprecedented period of uncertainty, it is fundamental the government prioritises infrastructure and it remains at the forefront of maintaining a strong economy.”

RIBA President Jane Duncan commented “UK architecture, surveying, town planning and construction are flexible and innovative professions. I’m confident our members can help deliver strong economic growth in the UK, providing the buildings and infrastructure that meet the needs of our communities.

“With the right actions taken from the Government to address our industries joint priorities, we can tackle the challenges and exploit the opportunities that Brexit will bring. But unless we fix the housing crisis and address the economic imbalances in our economy, the UK won’t be in a position to compete internationally.”

Stephen Wilkinson, Vice President of the Royal Town Planning Institute, concluded “The UK is a world leader in environmental and building standards and in the professions which are involved in them. UK’s town planning expertise and university courses are among the most sought after in the world. Leaving the EU could present a great opportunity for the UK, but it should not be associated with a drive to the bottom in the environmental and building standards which future generations will live with.”

/0 Comments/by

Skills, not Brexit, the main threat to construction industry

Worsening skills shortages, rather than uncertainty over Brexit, are the main threat to the UK construction industry, according to leading recruitment company for the construction industry.

A number of commentators have suggested that the main threat to the industry is the knock on effects of Britain’s decision to leave the European Union. However, an analysis by the construction and rail recruitment specialist found that a lack of skills poses the biggest potential risk to future productivity.

Paul Payne, managing director of One Way, comments “While numerous people have suggested that Brexit presents challenges to the construction industry, the idea is actually a bit of a red herring and we’ve seen little change since the result except for some natural hesitation brought on by the ‘Armageddon scenarios’ being pumped into the market. We’re as busy now as we were before the referendum and the real issue – the crippling lack of skilled professionals in this country – is being overlooked because of all the noise around Brexit.

“Yes, the construction industry has benefited from being part of the EU as it has given the sector access to a lot of workers who have moved over and have filled lower skilled roles, however we’ve never seen any great influx of skilled professionals who can work as design managers or quantity surveyors, for example. These people are needed across the entire industry and in related fields like civil engineering and currently there are far, far too few of them. More robust and well prepared hiring firms like ourselves will always have the resources to be able to pluck individual experts from the EU regardless of changes to freedom of movement laws, but in reality there is no quick fix. The only solution is to focus on ‘growing our own’, for example, through targeting more apprentices and youngsters at school level as well as widening the scope of people who are potentially interested in working in the industry to include more women and professionals from diverse backgrounds. Even at the moment when there are a number of major projects being put on hold there simply aren’t enough people in the market to meet demand. Imagine what the situation will be like when the economy picks up and they’re given the green light. Ultimately, something needs to happen quickly as we’re rapidly approaching a breaking point where productivity will be affected.”

/0 Comments/by

We must make tackling the skills shortage a priority, urges industry

Construction professionals have stressed how despite the fallout following Brexit, we must focus our efforts on combatting the looming skills crisis by prioritising the introduction of new initiatives to attract workers into the various sectors that span the construction industry.

Thinking ahead

Chris Wood, CEO of Develop Training Limited, the UK’s leading training specialist in the utilities sector, commented “The skills shortage in the UK is a catastrophe waiting to happen, one that literally threatens to turn out Britain’s lights. A solution to the twin problems of a chronic skills shortage in our utilities industry and high youth unemployment is obvious – train young people to take the places of the ageing workforce, but it just isn’t happening at anything like the rate that it needs to be. The new PM and her Cabinet must make it a government priority to look into ways to correct this issue as a matter of extreme urgency.

“As householders and businesses in the UK wonder about a post-Brexit future, they should remember that the utilities sector is still facing a potentially devastating skills shortage. The sector is constantly on a recruitment drive but is simply not receiving the response it requires.

“We all need confidence that our lights will stay on, our heating will continue to keep our houses warm and our taps keep providing running water, but the day is fast approaching when there will simply not be enough workers to do these vital jobs.”

Home-grown talent

Brian Berry of the Federation of Master Builders has also echoed concerns post-Brexit regarding the retention of skilled EU workers and the training of new talent. Berry said “We need to ensure that we invest in our own home-grown talent through apprenticeship training. We need to train more construction apprentices so we are not overly reliant on migrant workers from Europe or further afield. That’s why it’s so important that the Government gets the funding framework right for apprenticeships – when you consider that this whole policy area is currently in flux, and then you add Brexit into the mix, it’s no exaggeration to say that a few wrong moves by the Government could result in the skills crisis becoming a skills catastrophe. The next few years will bring unprecedented challenges to the construction and house building sector, and it’s only through close collaboration between the Government and industry that we’ll be able to overcome them.”

Diversity

Skanska, who recently won the Judges’ Supreme Award and Diversity Champion of the Year Award, have suggested that we need ensure the culture of our industry is both inviting and nurturing in order to alleviate the shortage long-term.

Mike Putnam, President and CEO Skanska UK, said “We believe that a diverse and inclusive culture is key to creating a successful and sustainable business. It will help us to create teams where people think differently, while making them better placed to understand the needs of the communities in which we work.

“It is through the way that our people embrace diversity and create an open and welcoming environment that we are able to work collaboratively – with our customers, joint venture and supply chain partners.”

/0 Comments/by

The recession’s lost generation – the challenge of closing the graduate skills gap

Guest post from Managing Director of TDM Recruitment, Tom Morris:

At its pre-recession peak in 2008, the UK’s construction workforce was 2.58 million; a staggering amount. However even more confounding is the fact that by the end of quarter four last year, this had dropped by nearly 13 per cent to 2.25 million. The big problem is that those that were forced to leave the industry at the start of the recession have left a gaping skills gap behind them which is continuing to cause issues.

Before the recession hit, a variety of industry graduate training programmes were being run by contractors and developers in the residential sector and money was in plentiful supply. It was common practice for us to be arranging around 15 first interviews a week which now seems somewhat ridiculous given the way the industry has changed. Salaries were high and construction job openings were plentiful.

When the credit crunch hit in 2008, and the banking sector went into freefall, graduate training programmes were cut as being ‘non-core.’ They really didn’t get going again until 2013, and the old ways of actively promoting to universities to attract the best talent wasn’t until 2014.

The result was a four-year gap after the last tranche of graduates came into the industry before the crunch, and many of those arriving in 2007 and 2008 were shown the door when the recession hit. Now we are faced with an industry where those experienced late twentysomething and early thirtysomething graduates needed to team lead on projects are missing, and junior guys with perhaps only two or three years’ experience are being over promoted to fill the gap.

The worst irony is that now there is a lot of work to do to deliver on demand, particularly in the residential sector, but the new professionals aren’t there to deliver it, and many don’t want to return to the industry having been through a traumatic time in the late 2000s. At the same time there are lot of senior people who now want to step up to board level, meaning there is a excess of applicants for each position, and an oversupply of freelancers who left the industry during the recession and now command high rates and benefit from flexibility. This perfect storm has only begun to dawn on people relatively recently, but what can be done?

The way that some firms have tried to deal with this shortage in management skills is to throw money at the problem. However, it is hard to justify a £20,000 jump in salary for the same Senior Surveyor position in 12 months when the rest of the economy hasn’t kept pace. This sort of inflation-busting rise isn’t sustainable because the rest of the team is likely to want something similar and be demotivated if it isn’t given.

The construction industry had to make hard-headed commercial decisions as the recession bit into their profit margins, but some of those decisions are now coming home to roost in the form of the skills gap. Many staff were treated brutally, and some professionals with good experience are now reluctant to go back to work for the larger organisations which made large numbers of staff redundant, sometimes at very short notice.

The mind-set of candidates has changed and as a ‘sellers’ market’ employers need to be acutely aware of how. Before the recession they may have just looked at whoever was making the highest offer as salaries were very healthy, however graduates who have come into the industry since 2008 or perhaps knew people who went through a traumatic time have a different mind-set.

The experienced young candidates the sector desperately needs are much more focused on achieving genuine work-life balance and being part of an organisation with a strong set of values beyond simply making money. Recent graduates are from Generation Y and are asking employers ‘why would I want to work here?’ As the new graduate programmes will take some time to bed in, employers facing the challenge of delivering construction projects now need to be able to answer that question.

/by