Regional Renaissance

15 February 2005

The Hays Facilities Management Salary Survey 2004 provides an insight into the FM market’s emerging trends. Hays’ recruitment consultants around the country look behind the figures at what is likely to shape
recruitment and salaries for the FM sector in the coming year

COMPARED TO 2004 salaries have not leapt forward as they have in previous years. While salaries still remain competitive, there have not been widespread increases, reflecting a market that is maturing and where opportunities remain varied and multiple. However, there are some regional variations that don’t always reflect this trend.

Facilities management is becoming a more popular career choice for graduates. There is still an abundance of experienced candidates which suggests the sector is able to attract applications from across other business sectors and prospective employers still have a healthy applicant pool to choose from.

Our figures clearly show that the consultancy market has changed over the last year. A lot of this demand can be traced back to the continued growth of the PFI sector, a trend that will continue to shape the FM market. While historically consultants have operated at the upper end of the FM salary bandings, the sheer scope of the PFI market means people are now needed from broader backgrounds and atvarying levels. Hays Facilities Management consultant Aine Flood explains. “There is a notable increase in the amount of consultancy jobs coming in at various levels. Over the lastyear consultancy has become more broadbased, and there is now a demand for consultants across more sectors then ever, withnew specialisms opening up more roles withinthe field.”

Regional boost
Once again, it is the regions that are playing catch up with the London market, in the Midlands, North, and Scottish regions, salaries have risen as much as 29 per cent over the last year, a trend which is not expected to continue for much longer.

When analysing these results it is important to bear in mind that these figures do not always reflect incentivised schemes being offered by employers. Previously, bonuses were reserved for higher-level managers. However, as roles become more focused on service delivery, managers are becoming more accountable for their performance and salaries and bonuses are increasingly tied in to performance against SLA’s and KPI’s. Packages often include a performancerelated bonus along with car or car allowance, pension, healthcare, shares schemes and life insurance. Mobile phone and laptop provisions
would usually make up part of the overall package.

In previous years there has been a marked differential between the earning potential of FMs working in-house and those working for service providers, with in-house applicants commanding higher salaries. As employers in the contracting market are forced to attract the industry’s best applicants they must be able to offer more competitive salaries. “I think that the industry is realising the fact that they need to attract the best possible candidates rather than the cheaper option,” says Flood. “However, I have found that people are more inclined move jobs to progress their career, rather than being solely driven by a salary increase. FM is becoming a progressive and vibrant industry to be involved in especially as more individuals become highly skilled and educated within this field.”

While technically biased managers have previously dominated the market, its growing scope means that individuals across all sectors of industry are entering the FM arena. These range from people from front-of-house, catering, hospitality, HR, security, health and safety, and logistics backgrounds are able to compete for facilities management roles. Furthermore, the level of experience that clients are seeking is also being reflected in the salary survey statistics. Many clients are asking that candidates posess a BIFM qualification as a matter of course, reflecting the growing level of professionalism within the industry.

Raised profile
In the past outside of the South East the FM sector did not have the same profile. This year’s salary figures clearly show that the Midlands, North of England and Scotland are starting to see a considerable rise in salaries. This is particularly evident In Scotland, where FM employment is currently very buoyant and salaries across the board are starting to increase substantially. Candidates in Scotland with Senior/Regional FM positions saw an £8,000, (25 per cent), pay rise in 2004 over the previous year, while Operational FM and Facilities Consultant positions enjoyed a £5,000, (14 per cent), salary increase.

The North East of England has also experienced a busier and more profitable year. “There are two factors that have led to this increase in the market,” explains Hays manager Tim Rudkin. “Firstly, the FM sector has grown in Yorkshire and a number of vacancies have arisen from the expansion of existing companies. As we see continued corporate growth on a regional level, there is an equal demand for FM to maintain new developments. Secondly, a number of companies have expanded operations into the Yorkshire area this past year, culminating in an even stronger need for FM specialists. This demand has come particularly from the North West with a number of Manchester-based contracts and companies expanding across the Pennines.”

Areas like Yorkshire, Scotland and the Midlands that offer a comparatively low cost of living, have begun attracting qualified candidates from the South and London. However, expect to see this salary increase begin to gradually level off over the next year.