Business activity and permanent headcounts may be rising, but according to the 2016 Hays facilities management salary guide they are not translating into wide-ranging salary increases for Australia’s FM professionals.
With employers for the most part unwilling to loosen the purse strings, the recruiter warns that employees will start to take matters into their own hands.
According to the Guide, 25 percent of construction, property and engineering employees can expect a salary increase of between three and six percent in their next review, while four percent can expect six to 10 percent.
Just one percent of employees can expect an increase above 10 percent. Instead over half of Australia’s construction, property and engineering workers (57 percent) will receive an increase of less than three percent. The final 13 percent will receive no increase.
The Hays salary guide includes salary and recruiting trends for over 1000 roles in 14 locations in Australia and New Zealand. It is based on a survey of 2752 organisations, representing over 2.6 million (2,686,179) employees.
“The FM outlook is for more spending and employment in the coming year,” says Hays Facilities Management regional director Austin Blackburne. “However, it’s clear that employers remain reluctant to offer substantial increases unless absolutely necessary to secure a candidate with skills in short supply.”
According to Hays, over the last year 16 percent of construction, property and engineering employers offered no salary increases. Those who did receive a salary increase found that their wallets were not that much heavier.
The guide outlines that 46 percent received an increase of less than three percent, 27 percent saw their pay increase from three to six percent, and eight percent saw an increase of six to 10 percent. The final three percent received an increase of more than 10 percent.
But Hays warns employers not to be complacent, because employees are starting to take matters into their own hands.
As Blackburne explains, “41 percent of employees say they’ll ask for a pay rise in their next review. Another 25 percent are as yet undecided about popping the salary question. Meanwhile, staff turnover has already increased in 29 percent of organisations.”
In terms of other FM recruitment trends Blackburne adds, “With more FM service providers looking to provide total facilities management solutions, flexible and adaptable staff are now required to cover both hard and soft portfolios. This is a dramatic transition from specialist roles.
“This new environment has changed the recruitment landscape for candidates in FM, with the bulk of employment now offered by FM service providers rather than organisations that are the end user of services. Also, the climate of winning or losing major accounts means employers need flexible workforce solutions and so prefer using contractors over permanent staff.
“In addition, across all states increased funding in the education sector is creating a very high need for project managers for capital works. The preferred candidate has education experience and a background in the architectural industry combined with an ability to manage a project from design through to delivery.
“In the soft services sector we are seeing huge demand for helpdesk talent, as an increasing number of FM contracts require such support.”
This article was originally published on FMMagazine.com.au. Visit the page to download the report.