Building firms mull wage rises
Over half of the country’s building industry workers can expect a salary increase of up to 5 per cent in the year ahead.
That’s according to an annual salary guide put out by recruiter Hays and the New Zealand Institute of Building (NZIOB).
The guide, which surveys salary and recruiting expectations, shows that project managers, construction managers, quantity surveyors, estimators, site managers, project engineers and forepersons are in particular demand.
But despite the need for such skills, salaries had been ‘‘relatively sedate’’, Hays’ New Zealand managing director, Jason Walker, said.
Employers showed little appetite to raise pay over the next year, although when asked by what percentage they intended to hike salaries, only 7 per cent ruled it out completely.
Nearly a third said they would look at a 3 per cent rise, while a quarter of them said 3 per cent to 5 per cent.
A further 12 per cent were looking at pay rises of 5 per cent to 10 per cent, and 3 per cent by more than 10 per cent. Twenty-two per cent did not know.
At one end of the scale, cadets were taking home between $45,000 and $60,000, and foremen between $75,000 and $90,000.
At the other, a project manager was earning between $100,000 and $110,000, and a business development manager was paid between $120,000 and $155,000.
Walker said the construction sector was doing well, with 73 per cent of organisations surveyed reporting increased business activity.
Their positivity spilled over into this year’s outlook, with 61 per cent expecting to increase permanent staff numbers and more than 35 per cent planning to increase the use of contracting and temporary staff to support their workload.
Changes in health and safety legislation had also seen a significant rise in demand for OHS managers, who could earn anywhere from $105,000 to $125,000, depending on their region.
"The challenge for employers ... is to ensure the current workforce is retained, nonsalary benefits are attractive, and work conditions and projects are engaging enough."
Jason Walker, Hays
Walker said it was great news that the industry was looking at sustained growth, and shaking off the ‘‘boom and bust’’ stigma.
‘‘The challenge for employers in the current environment is to ensure the current workforce is retained, non-salary benefits are attractive, and work conditions and projects are engaging enough to ensure that their staff stay.’’
It was a good time to invest in the development of new apprentices, promote and encourage others to train in those difficult to find professions, and to consider a more diverse workforce, he said.
NZIOB chief executive Malcolm Fleming agreed but said the sector’s capacity to continually raise the income bar to attract talent was on the wane.
‘‘With construction reportedly being the industry with the highest average advertised income, that softening in salary growth should come as no surprise,’’ he said.
‘‘The overriding constraint is that there is only so much that can be paid for a new house, a new building, or for an infrastructure project.’’