Q2 2019 SALARY GUIDE UPDATE: JUNE 2019

Compiled by the people who discuss digital construction salaries with employers and employees every day, the specialist recruiters, JohnsonBIM

THE SALARY GUIDES:

WITH MAJOR CONTRACTORS

IN ARCHITECTURE

SUMMARY:

This table gives you a crude overview of the current supply and demand trend and the impact on salaries.  Much more detail below…

AND NOW THE DETAIL:

SUPPLY + DEMAND = SALARY (usually)

Variations in the need for talent and the availability of it – ‘demand and supply’ drive salaries.   Here is the  digital-construction-sector-specific demand and supply data behind the latest salary update.

1: SUPPLY

With less new projects, persistent uncertainty, profit warnings and ‘right-sizing’ it is tempting to think there would be an increase in the availability of digital construction talent.  

According to Mike Johnson at the digital construction recruitment specialists, JohnsonBIM, ‘…generally, any ‘right-sizing’ is bypassing the digital teams and a lot of  candidates are keeping their heads below the parapet while the market  remains unpredictable. There is no increase in supply where there is most demand – for affordable BIM Co-ordinators and BIM Managers’.

He goes on(!)…‘What we are seeing is a more ‘discerning’ talent pool.  The vast majority of available talent is focused on a good career move – they want to be a part of the drive for better outcomes, many saying they have had enough of arm waving and false promises.  Unfortunately, many are ‘stuck’ in roles with no prospect for progression and often delivering ‘do it if we must’ BIM’.  

2: DEMAND

In general: with unpredictable future workload (even more detail and links in APPENDIX 1 below), there has been an overall drop in the numbers of new jobs across the construction industry.  However, according to the latest MarkIt report, payroll numbers remain relatively steady.

In the digital built environment: more clients are becoming ‘enlightened’ and this is increasing the demand for better BIM which means more (PC time) ‘person’ hours on projects.  So, despite there being less projects, the demand for the BIM savvy is stable.

Who is in most demand in our world?

According to Mike Johnson, with contractors it is experienced, reliable, site based BIM Managers and in Architecture, technically strong BIM Technicians and Co-ordinators.  More detail below!

3: SALARY: THE RULES HAVE CHANGED.  BUDGETS = SALARY!

In general, it seems salaries for existing staff are remaining stable but the devil is in the detail.   We asked Mike Johnson (again) for his insight:

‘Obviously no-one wants to lose good people so salaries for existing staff are not dropping but reviews are not as generous as they were.  For new staff, salaries for those in most demand are not increasing as much as you would expect.  Stricter spending caps have resulted in a lot of salaries on offer not matching the experience required. We are seeing roles increasingly defined by salary and as much relevant experience as possible within the budget. Although salaries are normally defined by demand and supply, in a ‘downturn’ the bean counters reign supreme and salaries for new roles are defined by budget.  So, rather than increase the average salary for those in demand, to stay within bean-counter defined budgets, more clients are asking for good, on-the-way-up talent.’ 

So now, budgets are defining the demand and are having the biggest effect on salaries.

More from Mike: ‘With contractors, the majority of the demand is for site-based BIM Project Managers but the majority of the good, experienced, safe pairs of hands are looking to move another rung up the ladder and/or salaries in excess of what is on offer.  Typically £50k is the ceiling.  Therefore, ‘on-the-way-up’ BIM Co-ordinators with management capability/aspirations  and earning c.£45k or less at the moment are in most demand.  Ironically, this is leading to the biggest increase in salaries.  Which raises the question, what happens next?  Do the bean counters need to raise the cap or will less experienced BIM Co-ordinators become the most sought after? We are seeing early signs of the latter.  Those contractors that are focusing on capability first and paying the right amount for it are seeing a small increase in supply.  In Architecture the challenge is the same.  They want advanced technical skills but the salaries for the best are too high.  The focus is on upskilling more junior Technicians.’

For role specific detail on supply, demand and salaries, see Appendix 2 below

APPENDIX 1: UNPREDICTBLE WORKLOAD = LESS DEMAND

The UK construction industry is on another bumpy ride.  We have seen no improvement since the less than optimistic March 2019 Construction Output report from the Office for National Statistics where Quarter 1, 2019 saw ‘…decreases in private commercial and housing new work of 4.7% and 1.2% respectively…’

It will be interesting to read their Q2 report (released next week, on July 10).

The latest ‘UK Construction Total Activity Index’ (see this article from Construction Enquirer ) dropped sharply in June and has been below the ‘no-change’ mark for 4 of the last 5 months.  ‘While the scale of the downturn is in no way comparable to that seen during the global financial crisis, the abrupt loss of momentum in 2019 has been the worst experienced across the sector for a decade.”‘

The latest IHS Markit release makes for gloomy reading too.

APPENDIX 2:  DETAIL SALARIES IN EACH ROLE:

With thanks to JohnsonBIM for this information…

Firmwide/strategic:

CONSTRUCTION: Over the last year, more senior roles have been made redundant  and have outnumbered new ones being created. Those that remain, still command the same salary as before with some annual increases hence some modest rises.  As always, these figures are the average.  At the extremes, some salaries are getting close to £150k and some are still £60k.  The few roles created, have focussed on candidates with less experience to keep the cost down – hence a slightly higher rise at the ‘Competent, DE4.3’ level.  There has been no change in demand over the last quarter and therefore no change in salaries.  Picture the same across the UK but some specialist opportunities overseas.

ARCHITECTURE: The development of new firmwide roles has continued to slow across the industry, some have even been released to pursue new opportunities after developing capable teams. With the continuing focus on upskilling, training capabilities are still sought after, but those firms are holding onto their leaders to retain stability in their digital teams.

BIM Project Managers:

CONSTRUCTION: Similar number of roles were available until March 2019.  Since then there has been a significant slowdown – see BEWARE POTHOLES article.  Any demand has been defined by budget hence instead of recruiting new blood, existing staff are being booked in when their current projects end.  When new blood is essential, budgets again define the roles so sub £60k (ideally, sub £50k) BIM Managers and ‘on-the-way-up’ BIM Co-ordinators are being sought.  During May we have seen an increase in demand for ‘Competent’ BIM Managers – we will see if this is a trend or a glitch over the next 3 months.  Most demand is outside London and overseas.

ARCHITECTURE: Teams delivering the most iconic projects across the UK are continuing to seek experienced BIM Project Managers to provide clients with a safe set of hands and drive continued awareness of project potential and team leadership tasks. Those enlightened teams that understand this need are paying the right salaries.  However, there are still a number of teams missing out on top talent due to pulling the purse strings too tight.

BIM Co-ordinators:

CONSTRUCTION: Until March this year this was the area of most demand.  It will be again when projects start up again. As mentioned previously, with roles defined by budgets, anyone below £50k has been in demand – especially for those with enough experience to quickly develop into ‘affordable’ BIM Managers.  Because of the increase in demand and lack of supply, salaries for some senior BIM Co-ordinators were passing BIM Managers’.  Since March demand has, again, slowed down to almost zero.  Increased interest from the BIM Consultancies who usually benefit when companies tighten their belts.  Again, most demand is outside London as there is so much surplus in the Capital.

ARCHITECTURE: Experienced and on-the-way-up BIM Coordinators are still in constant demand, having the capability to contribute at a delivery level, as well as taking responsibility for model quality and output, proving the most sought out combination.

BIM Technicians:

CONSTRUCTION: see BIM Trainees below

ARCHITECTURE: A constant need for junior talent skilled in the baseline BIM tools in evident, with most firms seeing this as an opportunity to diversify teams and provide scope to pass on knowledge to the brightest upcoming staff.

BIM Trainees:

CONSTRUCTION: Growing demand particularly with the BIM Consultancies.  Affordable, ‘digital natives’ with the potential to develop quickly into digital construction specialists that can spell AI.  Demand across the UK.

ARCHITECTURE: see BIM Technicians above.

And that’s it for this salary update.  The next, Q3 update, will be published at the end of October.  If you would like to subscribe to this…..