Skills shortages drive up recruitment salaries in construction

Over 80 per cent of construction companies have had to pay higher salaries to attract new recruits, according to a new survey by sector reward experts Paydata Limited.

Skills shortages have been created by a combination of downsizing and a shortfall of investment in professional training during the recession. This means that as the sector recovers the primary target for recruitment is people with proven experience who are mostly already employed in a competitor’s business.

Paul Hajduk, managing director at Paydata Ltd, commented: “We know from feedback from many our customers in construction that the sector is experiencing some real difficulties especially in terms of recruitment. Pay for middle management and professional roles, especially those in London and the south east, is under pressure. The result is that salaries at recruitment are rising. Our survey confirms what’s happening in the industry.”

While the employers’ action is understandable it may also be unsustainable and have wider consequences. As Hajduk observed, “There’s a sense that organisations have to make pragmatic decisions just to fill vacancies. At some time in the future that is going to cause problems. It remains to be seen whether this will drive towards larger general pay increase budgets to give some scope for realigning pay differentials in the medium term.”

Paydata’s UK Reward Management Survey

Paydata’s twice yearly UK Reward Management Survey has tracked the views and expectation of HR and reward professionals across a range of industry sectors since the 2008-09 financial crises.  The spring 2014 edition of the survey attracted more than 100 responses representing organisations employing over 325,000 people in total.

About Paydata Limited:

Paydata is a UK-based reward management consultancy, providing HR professionals with information, insights, tools and statistics to help them manage their pay and reward practices. Paydata is also a leading source of UK salary data and reward expertise, supporting customers in a range of industries – from construction to call centres and from travel to telecoms. Formed in 1995, Paydata has grown substantially but is still an independent company. 

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