2017 EXECUTIVE SUMMARY
2
www.macdonaldandcompany.com/salary-surveys
Foreword Once again, it gives me great pleasure to present the key findings for the 2017 RICS and Macdonald & Company Rewards and Attitudes Survey. Results show that both the proportion of respondents who received an increase to their basic salary (+3% to 67%) and the average size of that increase (+0.6% to 7.7%) rose year on year. However, it is notable that the mean average salary and the total reward received by property professionals both fell when compared to 2016. This is, in large part, attributable to changes in the demographic of respondents with 10% fewer respondents with 16 years’ experience or more and 9% more with 10 years’ or less. It is also clear that a professional qualification is highly valued by the industry. At 20.9%, achieving a professional qualification led to the largest increase for respondents who indicated they had seen their salary rise this year. On average, respondents with a RICS qualification earn £55,644 versus £39,589 for those who identified as “Not Professionally Qualified”. By comparison, the increase awarded as part of an annual pay review was 4.5%. Looking forward, the survey also shows a marked softening in general confidence across the industry. With the prospect of a rise in interest rates becoming more likely, and political uncertainty at home and abroad, it is perhaps unsurprising that the industry has entered 2017 in a more cautious mood. In fact, falling confidence and rising uncertainty is a trend that has emerged over the past three years. The 28% drop in respondents who expect economic activity to improve between 2015 and 2017 demonstrates this, although, at 52% the majority expect business as usual. The results do paint a more uncertain picture than the past few years but, when taken overall, still demonstrate that the property industry remains a rewarding sector in which to work, offering attractive financial and professional rewards.
Introduction Now in its eighteenth year, the annual RICS and Macdonald & Company Rewards & Attitudes Survey is the most comprehensive survey undertaken for the property sector in the UK. The survey continues the success of earlier surveys; 8,463 UK surveying professionals participated online between November 2016 and January 2017, making this the largest survey of its type in the industry. As always, thanks this year must go to Property Week and RICS who actively promoted their involvement in the survey amongst their readership and members. We would also like to thank all the participants who took time to complete the online survey. Besides statistics on current salaries, recent salary increases, bonuses and employment package benefits, the results give an insight into wider issues that are important to professionals in their role and their attitudes toward employment. This report sets out the key findings of the survey. Because of rounding, some percentages may not add up to 100. For further information or analysis please contact: salarysurvey@macdonaldandcompany.com or call one of our UK offices. An online statistics package for the 2017 survey is available at a cost of £699 + VAT. In addition to the UK, Macdonald & Company & RICS undertake remuneration and attitudes surveys for the following regions: Middle East and Asia Pacific. All reports are available at www.macdonaldandcompany.com For the ninth year, the results have been collated and analysed by BluSky Research (a research trading name of BluSky Marketing Limited – www.bluskymarketing.com).
Would you like to know more? Macdonald & Company provides bespoke salary and remuneration benchmarking reports to clients worldwide. In conjunction with our research partners we are able to provide valuable data segmented and analysed to suit individual businesses, locations and specific needs. Peter Moore MRICS, Managing Director, Macdonald & Company. March 2017
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
3
KEY FINDINGS
anticipate an improvement in economic activity (-20%*).
Real Industry Change to Base Salaries (+0.7%*).
of respondents received a base salary increase (+3%*).
Of the 67% who received an increase the average was 7.7% (+0.6*).
is the average salary for UK Property Professionals (-4.5%*).
45% (+5%*) of all respondents secured an average bonus of ÂŁ11,604 (-14.4%*).
4
*Versus last year
www.macdonaldandcompany.com/salary-surveys www.macdonaldandcompany.com/salary-survey
believe their pay and benefits will be positively affected by market conditions in the next 12 months (-11%*).
of respondents class their current employer as an employer of choice (=*).
of respondents believe their organisation will increase headcount in 2017 (-5%*).
Salary is the most important priority for property professionals, with 73% (+4%*) of respondents indicating its importance.
At 20.9%, achieving a professional qualification led to the largest increase to base salary.
On average, RICS qualification leads to a 32.3% higher base salary.
The 2017 RICS and Macdonald & Company Rewards & Attitudes Attitudes Survey Survey 4
5
RESEARCH SAMPLE PROFILE
9,819
10,000
Now in its eighteenth year, the survey remains the most credible and respected survey of its kind in the UK property sector. With a sample size of 8,463 the survey response rate remains extremely robust.
8,351
8,463
8,311
8,209 7,783
8,000
7,466
6,000
4,000
2,000
0
2011
2012
2013
2014
2015
2016
2017
+13.4% 2016 to 2017 +1.8% 2015 to to 2017 +13.4% 2016 2017
+1.8% 2015 to 2017
44% 36%
2017 2016 2015
40%
12%
10%
12%
14%
14%
9%
10%
13%
16%
20%
17%
21%
30%
14%
Versus last year, respondents with 16 years’ experience or more fell by 10% while those with 10 years’ or fewer rose by 9%.
50%
19%
How many years’ experience do you have in your discipline? Survey demographics have changed significantly in 2017.
49%
60%
0% Up to 4yrs
40%
Over 21yrs
23%
23%
5%
5%
3%
9%
4%
4%
7%
10%
8%
15% 12%
15%
14%
16%
20%
14%
19%
25%
22%
28% 25%
30%
5%
16-20yrs
2017 2016 2015
34%
35%
11-15yrs
9%
What is the level of responsibility within the organisation for which you work? Respondents indicating they are Associate/Manager or above decreased 12%, to 56%, this year while those at lower levels of responsibility rose 11%, to 43%, in 2017.
5-10yrs
0%
Assistant/ Negotiator/ Trainee/ Graduate
6
Staff/ Surveyor/ Analyst/ Other
Associate/ Manager
Senior Manager/ Vice President
Partner/ Director/ Principal
Partner/ Director/ Principal Equity
Managing Director/ CEO
www.macdonaldandcompany.com/salary-surveys
AVERAGE UK SALARY (£KPA )
£56,000
What is your current Annual Base Salary? The average salary of a property professional in 2017 is £52,362. This is a decrease of 4.5% versus last year but remains 7.1% above five years ago. The decrease may be partially explained by the change in the survey demographics this year.
£54,839
£54,771 £54,000
£52,362 £52,000 £51,179 £50,250 £50,000 £48,901 £48,329 £48,000
£46,000
£44,000
2011
2012
2013
2014
2015
2016
2017
- 4.5% 2016 to 2017
£63,320 £52,727
£59,062 £49,071
£47,865 £40,204 £30,248
£29,314
£30,000
£23,150
£22,937
£40,000
£36,751
£50,000
£44,364
£54,931
£60,000
Male Female
£52,464
£70,000
£43,818
What is your current Annual Base Salary? Male property professionals earn, on average, 25.4% more than their female counterparts. The gap is largest between the ages of 46-55 where it is 25.7%.
£65,967
- 4.4% 2015 to 2017
£20,000
£10,000
£0
£40,000
56+
£39,589
£45,778
£43,905
£43,439
£42,652
£41,679
£56,863
46-55
£55,644
£54,762
36-45
£36,722
£37,837
£50,000
£43,035
£54,839
£52,362
£54,771
£70,000
£60,000
31-35
£66,196
2017 2016 2015
£80,000
What is your current Annual Base Salary? RICS membership leads to higher remuneration. On average, RICS qualification leads to a 32.3% higher base salary.
27-30
23-26
£72,551
18-22
£69,885
Av.
£30,000
£20,000
£10,000
£0
Av.
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
RICS (part qual)
MRICS
FRICS
AssocRICS
Not Professionally Qualified
7
AVERAGE UK SALARY (£KPA )
£52,362 £54,839 £54,771
Average All
What is your current annual Base Salary? Respondents working in Greater London continue to earn, on average, the highest salary (£61,141). However, the premium has reduced from 18.7% in 2016 to 11.4% this year. While most regions saw a decrease in annual base salary, East Anglia (+3.4%), South West/Wales (+2.6%) and Northern Ireland/Republic of Ireland (+1.4%) all reported an increase.
£61,141
Greater London
£65,050 £65,514 £52,927 £53,842 £53,851
South East
£49,477 £47,783 £49,840
East Anglia
£49,477 £50,294 £49,671
Midlands
£47,490 £46,269 £45,882
South West/Wales North West/North East/Yorkshire and the Humber
£46,156 £48,830 £49,046
2017 2016 2015
£45,911 £48,730 £47,740
Scotland
£43,367 £42,754 £44,679
Northern Ireland/ Republic of Ireland
£62,922 £63,725 £63,383
Other
£10,000
Average Increase
What change (if any) was made to your annual salary at your last pay review? 67% of respondents received an increase to their base salary, 32% remained the same and 1% saw their salary reduce. Of the respondents who reported an increase in base salary, the average was 7.7%.
10%
£20,000
No Change
£30,000
Average Decrease
7.7%
£40,000
£50,000
£60,000
£70,000
*RIC
7.2%
5% 92 or 1% (-1%) of respondents
0%
-5%
4842 or 67% (+3%) of respondents
-10%
2287 or 32% (-2%) of respondents
Average across 7,221 respondents
-15%
-18.8%
-20%
(*= average increase of those respondents who reported a salary increase offset against those who reported a salary decrease as a %) (Please note: 1,242 respondents did not respond to the question and are not included with % figures)
What change (if any) was made to your annual salary at your last pay review? 71% of respondents either received no change to their base salary or were awarded an increase of less than 5%.
*Real Industry Change
Up by ≤5% 39% (+1%)
Up by 6-10% 11% (+1%)
Reduced 1% (=)
Up by 11-15% 6% (+1%)
Up by 15%+ 8% (+1%) Unchanged 32% (-2%)
8
Up not disclosed 3% (-2%)
www.macdonaldandcompany.com/salary-surveys
BONUS AND OTHER BENEFITS
9%
7.7%
8%
If your salary was increased, please indicate the % increase? Both the proportion of respondents who received an increase to their base salary (67%) and the size of the uplift (7.7%) rose in 2017.
7.1%
7.1%
7%
6%
5%
4%
62%
67%
64%
3%
2%
1%
0%
2015
2016
2017
£10K+ 14% (=)
What was the approximate value of your annual bonus (or bonuses) over the last 12 months? Of those respondents who were awarded a bonus, the greatest proportion received up to £2,500. Bonuses at this level also grew at the fastest pace (+3% year on year).
£5K - £9.9K 8% (+1%)
£2.5K - £4.9K 7% (+1%)
Nil 55% (-5%)
Up to £2.5K 16% (+3%)
£16,000
What was the approximate value of your annual bonus (or bonuses) over the last 12 months? Although the average bonus fell 14.4% year on year, the proportion of respondents receiving a bonus increased to 45% (+5%). The largest bonuses continue to be paid within the Financial Institution/Fund/Asset Management (£29,520) and Developer/ Property Company (£19,549) sectors.
£14,420 £13,558
£14,000
£11,604
£12,000
£10,000
£8,000
40%
45%
40%
£6,000
£4,000
£2,000
£0
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
2015
2016
2017
9
£53,003
2017 2016 2015
£60,000
£37,064
£34,742
£39,647 £26,742
£30,000
£23,691
£40,000
£34,941
£50,000
£24,576
What was the approximate value of your annual bonus (or bonuses) over the last 12 months? At £56,054, on average, the largest bonuses were paid to Managing Director/ CEOs followed by Partner/Director/ Principals - Equity at £34,742. Bonuses awarded to Managing Director/CEOs have risen 5.8% year on year.
£56,054
BONUS AND OTHER BENEFITS
Staff/ Surveyor/ Analyst/ Other
£8,565
£7,277
£8,616
Associate/ Manager
£6,716
£8,704
£8,440
£4,168
£3,909
Assistant/ Negotiator/ Trainee/ Graduate
£3,623
£3,560
£1,638
£10,000
£1,990
£20,000
Senior Manager/ Vice President
Partner/ Director/ Principal
£90,000
What was the approximate value of your annual salary, bonus and additional remuneration received (e.g. commission/ performance related pay) over the last 12 months? The total reward received by property professionals decreased by 7.3% to £72,390 year on year.
£80,000
The total reward includes annual base salary, annual bonus and additional remuneration received (e.g. commission and performance related pay).
£30,000
Partner/ Director/ Principal Equity
Managing Director/ CEO
Average Salary Average Bonus Additional Remuneration £15,511
£9,688
£70,000
£8,424 £14,420
£60,000
£13,558 £11,604
£50,000
£40,000
£54,771
£52,362
£54,839
£20,000
£10,000
£0
2015
2016
2017
68% 67% 68%
Mobile Phone
Which of the following additional benefits are included in your current package? A mobile phone (68%), contributory pension (67%) and professional subscription/fees (66%) continue to be the most popular employee benefits.
67% 63% 64%
Contributory pension
66% 62% 64%
Professional subscription/fees 45% 44% 44%
Health insurance 31% 29% 29%
Company car allowance Performance related bonus
22% 24% 25%
Other insurance (critical illness/life)
22% 24% 24% 21% 21% 21%
Company car
19% 20% 20%
Flexitime 14% 13% 13%
Flexible benefits package
12% 12% 13%
Share option scheme 6% 7% 7%
Profit share
4% 4% 4%
Club membership Paid overtime
4% 4% 4%
Lunches/ luncheon vouchers
3% 4% 4% 6% 7% 7%
None 2% 2% 2%
Other 0%
10
2017 2016 2015
10%
20%
30%
40%
50%
60%
70%
www.macdonaldandcompany.com/salary-surveys
BONUS AND OTHER BENEFITS
Do you utilise your full annual holiday entitlement? 82% of respondents used their full annual holiday entitlement, up 3% from the previous year.
No 18% (-3%)
Conversely 18% failed to take their full holiday entitlement, down 3% from the previous year. Yes 82% (+3%)
Do you utilise your full annual holiday entitlement? Of the 18% who fail to take full holiday entitlement, 24% are Partner/Director/ Principals, an additional 24% are Associate/Managers and 22% are Staff/ Surveyor/Analyst/Other. Only 5% of those who fail to take full holiday entitlement are Assistant/Negotiator/Trainee/Graduate level.
Managing Director/CEO 7% (-2%) Partner/Director /Principal - Equity 7% (-6%)
Assistant/Negotiator/Trainee /Graduate 5% (=) Staff/Surveyor/ Analyst/Other 22% (+4%)
Partner/Director /Principal 24% (+6%)
Senior Manager/ Vice President 11% (-9%)
Associate/Manager 24% (+7%)
Do you utilise your full annual holiday entitlement? Of the 18% who fail to take full holiday entitlement, over half work in Practice/ Consultancy/Advisors (53%). Those working in Central/Local Government make up 15% and Developer/Property Companies 10%. 1% of those who fail to take full holiday entitlement, work within Utilities/Power, 2% in Engineering and 2% in Facilities Management.
Non-profit making organisation 4% (-1%) Engineering 2% (=) Education 2% (=) Central /Local Government 15% (+2%)
Occupier 4% (=) Contractor 6% (+1%)
Facilities Management 1% (-2%)
Financial Institution/ Fund/Asset Manager 3% (-1%) Utilities/Power 1% (-1%) Developer/ Property Company 10% (-1%)
Practice/Consultancy/Advisor 53% (+4%)
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
11
OVERVIEW BY MAIN PROFESSIONAL ACTIVITY
RESPONSES
AVERAGE SALARY
AVERAGE BONUS
Average Overall
8463
£52,362
£11,604
Academic
41
£50,210
£8,260
Architect/Design
145
£48,214
£7,248
Arts & Antiques
4
£38,167
£2,000
Building Control
142
£42,655
£9,335
Building Surveying
997
£43,526
£6,110
Business Development Management
29
£60,449
£10,423
Business Support
18
£58,333
£10,425
Claims & Dispute Resolution
11
£74,778
£26,714
Construction Management
138
£80,967
£15,760
Corporate Property Consultancy
114
£60,877
£15,145
Development Commercial
155
£72,921
£30,785
Energy/Renewables
38
£59,133
£8,580
Environmental/Sustainability
16
£46,893
£9,071
Estate Agent/Sales/Lettings
93
£38,929
£20,835
Estates Surveyor (In House)
306
£49,810
£9,475
Facilities Managing Agent/Clientside
80
£55,605
£8,218
Financial/Real Estate Analyst
18
£62,458
£28,300
FM Procurement
4
£39,000
£4,083
FM Service Provider - Business Development
5
£69,825
£8,750
FM Service Provider - Commercial Management
41
£67,013
£5,994
FM Service Provider - Operations
55
£67,762
£9,164
Fund Management
80
£97,588
£53,115
General Practice
248
£44,756
£10,170
Geomatics
55
£39,360
£2,747
Health & Safety
36
£47,496
£6,257
Human Resources
5
£53,840
£10,167
Industrial Agent/Leasing
33
£39,112
£16,179
Investment Brokerage/Agency
79
£48,264
£23,181
Landlord & Tenant
108
£43,041
£9,816
Marketing/International Project Marketing
12
£35,833
£11,250
Minerals
11
£41,963
£5,200
Office Agent/Leasing
50
£49,272
£13,920
Planner
95
£50,177
£10,241
Project Management
522
£58,306
£11,008
CONTINUED ON PAGE 14 - 15
12
www.macdonaldandcompany.com/salary-surveys
CHANGE TO SALARY – LAST YEAR
NEXT 12 MONTHS – ANTICIPATED PAY & BENEFITS CHANGE
=
=
?
7.2%
51%
32%
10%
67%
1%
RIC*
32%
1%
6%
34%
66%
0%
4.5%
74%
9%
11%
0%
6%
39%
58%
3%
6.0%
50%
33%
12%
0%
5%
67%
33%
0%
1.0%
100%
0%
0%
0%
0%
48%
48%
4%
3.8%
61%
20%
12%
1%
5%
31%
67%
1%
8.2%
46%
37%
12%
1%
5%
22%
74%
4%
4.3%
57%
38%
0%
0%
5%
50%
50%
0%
2.3%
92%
8%
0%
0%
0%
44%
44%
11%
1.0%
44%
22%
22%
11%
0%
28%
72%
0%
6.4%
51%
33%
9%
2%
6%
30%
67%
3%
8.0%
44%
31%
15%
1%
9%
26%
72%
2%
7.5%
51%
38%
10%
0%
2%
29%
68%
3%
6.4%
47%
32%
9%
0%
12%
23%
77%
0%
5.5%
40%
20%
20%
10%
10%
48%
48%
4%
6.3%
46%
18%
26%
2%
8%
30%
69%
0%
5.4%
65%
22%
10%
0%
3%
32%
68%
0%
4.1%
56%
25%
8%
1%
10%
25%
75%
0%
15.9%
36%
45%
9%
0%
9%
0%
100%
0%
15.0%
0%
100%
0%
0%
0%
25%
75%
0%
8.2%
75%
25%
0%
0%
0%
29%
66%
6%
0.4%
52%
27%
18%
0%
3%
15%
83%
2%
3.4%
40%
36%
17%
0%
7%
34%
66%
0%
10.3%
52%
26%
21%
0%
2%
33%
62%
5%
6.9%
53%
27%
12%
2%
6%
33%
67%
0%
4.9%
69%
9%
13%
0%
9%
31%
69%
0%
4.6%
52%
34%
3%
0%
10%
20%
80%
0%
5.2%
50%
50%
0%
0%
0%
44%
56%
0%
11.7%
46%
38%
13%
0%
4%
34%
66%
0%
12.4%
38%
42%
13%
2%
5%
40%
60%
0%
10.0%
54%
26%
14%
0%
6%
50%
50%
0%
6.7%
83%
0%
0%
0%
17%
82%
18%
0%
2.0%
80%
0%
10%
10%
0%
40%
58%
2%
11.4%
49%
29%
17%
0%
5%
47%
51%
3%
3.3%
47%
22%
23%
1%
6%
31%
68%
1%
7.7%
48%
39%
6%
1%
6%
= SALARY WAS UNCHANGED
*REAL INDUSTRY CHANGE
= NO CHANGE
SALARY WAS INCREASED
POSITIVELY
SALARY WAS REDUCED
NEGATIVELY
LIKELY TO LEAVE PROFESSION ? DON’T KNOW The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
13
OVERVIEW BY MAIN PROFESSIONAL ACTIVITY (CONT.)
RESPONSES
AVERAGE SALARY
AVERAGE BONUS
Average Overall
8463
£52,362
£11,604
Property Asset Management
396
£59,937
£13,753
Property Finance
28
£61,478
£6,150
Property Manager
307
£46,388
£5,320
Quantity Surveying
1824
£53,703
£5,942
Rating
124
£48,825
£12,552
Real Estate Banking/Finance/Advisory
56
£77,000
£20,725
Real Estate Debt Investment
9
£82,833
£21,550
Real Estate Private Equity
23
£119,211
£74,158
Regeneration
60
£63,432
£9,251
Research
18
£57,543
£8,750
Residential Block Management
74
£47,693
£6,897
Residential Development/New Homes
242
£61,936
£24,685
Residential Survey & Valuation
321
£43,676
£10,068
Retail Agent/Leasing
64
£48,821
£15,014
Rural Practice
393
£38,987
£5,763
Student Accommodation
10
£54,150
£24,000
Valuation
431
£46,219
£13,318
Other
179
£68,194
£11,725
RESPONSES
AVERAGE SALARY
AVERAGE BONUS
Average Overall
8463
£52,362
£11,604
Occupier
309
£62,539
£10,651
Contractor
681
£60,459
£9,205
Practice/Consultancy/Advisor
3897
£47,747
£9,851
Developer/Property Company
785
£61,054
£19,549
Engineering
229
£58,702
£6,823
Financial Institution/Fund/Asset Manager
254
£76,731
£29,520
Facilities Management
155
£55,780
£8,478
Central/Local Government
963
£46,155
£2,736
Education
123
£54,139
£3,433
Non-profit making organisation
307
£51,128
£3,675
Utilities/Power
146
£57,126
£8,117
OVERVIEW BY MAIN ACTIVITY OF THE ORGANISATION
14
www.macdonaldandcompany.com/salary-surveys
CHANGE TO SALARY – LAST YEAR
NEXT 12 MONTHS – ANTICIPATED PAY & BENEFITS CHANGE
=
=
?
7.2%
51%
32%
10%
67%
1%
RIC*
32%
1%
6%
33%
66%
1%
6.2%
57%
28%
8%
0%
7%
17%
83%
0%
4.8%
68%
23%
5%
0%
5%
30%
70%
0%
6.4%
61%
23%
8%
0%
7%
26%
74%
1%
7.2%
46%
40%
7%
1%
7%
26%
71%
3%
3.2%
58%
13%
18%
5%
6%
39%
61%
0%
6.9%
39%
37%
20%
0%
5%
50%
50%
0%
10.3%
50%
50%
0%
0%
0%
11%
83%
6%
11.3%
50%
33%
6%
0%
11%
35%
65%
0%
6.5%
57%
29%
6%
0%
8%
14%
79%
7%
4.7%
40%
27%
20%
7%
7%
21%
77%
2%
9.1%
51%
32%
10%
0%
7%
25%
73%
1%
8.0%
51%
35%
8%
1%
6%
48%
50%
2%
9.3%
51%
25%
19%
1%
3%
35%
65%
0%
15.4%
60%
23%
13%
0%
4%
34%
65%
1%
6.2%
60%
25%
9%
1%
5%
30%
70%
0%
8.1%
50%
20%
30%
0%
0%
37%
62%
1%
8.7%
55%
27%
14%
1%
3%
30%
68%
3%
5.9%
59%
25%
10%
3%
4%
CHANGE TO SALARY – LAST YEAR =
32%
NEXT 12 MONTHS – ANTICIPATED PAY & BENEFITS CHANGE RIC*
=
67%
1%
?
32%
10%
7.2%
51%
1%
6%
24%
75%
1%
6.1%
55%
32%
6%
2%
5%
23%
76%
1%
7.3%
44%
43%
6%
1%
6%
34%
65%
1%
8.8%
48%
34%
11%
1%
6%
28%
71%
1%
7.9%
47%
38%
9%
0%
7%
24%
75%
0%
6.9%
50%
43%
5%
1%
2%
26%
74%
0%
7.1%
51%
36%
9%
0%
5%
24%
73%
3%
4.8%
50%
37%
11%
0%
2%
41%
57%
2%
2.4%
67%
10%
17%
1%
5%
25%
74%
2%
5.2%
69%
16%
9%
1%
5%
30%
68%
2%
3.0%
63%
23%
9%
1%
4%
25%
74%
1%
5.0%
51%
35%
8%
0%
6%
= SALARY WAS UNCHANGED
*REAL INDUSTRY CHANGE
= NO CHANGE
SALARY WAS INCREASED
POSITIVELY
SALARY WAS REDUCED
NEGATIVELY
LIKELY TO LEAVE PROFESSION ? DON’T KNOW The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
15
16.2%
19.1%
21.6% 15.7%
15.7%
10.8%
10.5%
10.1%
12%
9.9%
13.8%
13.7%
16%
8% 4.6%
Respondents whose annual base salaries were increased following an annual pay review received an average of 4.5%.
2017 2016
20%
4.5%
If your salary was increased please indicate % increase. At 20.9%, achieving a professional qualification led to the largest increase to base salary.
20.9%
MARKET ATTITUDES
4%
0% Annual Pay
Promotion
Review
Organisational
Counter Offer
Achieving
Moving Job/
Restructure
Following
Professional
New Employer
Attempted
Qualification
by Employer
Other
Resignation
£100,000 £93,629
Annual bonus (or bonuses) over the last 12 months as a % of current Annual Base Salary. On average Managing Directors/CEOs received the equivalent of 60% of their annual base salary as a bonus in 2017. By comparison, Assistants/Negotiators/ Trainees/Graduates received 6%.
£80,000
Bonus as a % of salary Average Salary
£60,000
£74,875
£58,443
£55,185
£39,584
£40,000
60%
£25,675 £20,000
46% 31% 6%
£0
Assistant/ Negotiator/ Trainee/ Graduate
How do you anticipate that your pay and benefits will be affected by market conditions in the next 12 months? Up 5% compared to last year, the majority (51%) of respondents do not anticipate market conditions will affect their pay and benefits over the next 12 months.
£75,257
11%
Staff/ Surveyor/ Analyst/ Other
Likely to leave profession 1% (=)
Meanwhile, those who anticipate market conditions will positively affect their pay and benefits over the next 12 months has fallen 11% to 32%.
16%
Associate/ Manager
15%
Senior Manager/ Vice President
Partner/ Director/ Principal
Partner/ Director/ Principal Equity
Don’t know 6% (+2%)
Managing Director/ CEO
Negatively 10% (+4%)
Positively 32% (-11%) No change 51% (+5%)
16
www.macdonaldandcompany.com/salary-surveys
MARKET ATTITUDES
Not at all 3% (+1%)
Not very 12% (-1%)
How satisfied overall are you with your current job? The majority of survey participants (85%, =) are fairly or very satisfied with their current job.
Very 33% (-1%)
Those who felt they were not at all satisfied with their current job remained at 3%, the same as last year.
18%
12%
Salary
4%
4%
Range of interesting work
Career progression
8%
7%
8%
10%
12%
12%
Training/Development
16%
14%
15%
Change from 2007 to 2017
73%
Salary
How important are each of the following to you in your job? Salary is now the most important priority for property professionals, with 73% (+4%) of respondents indicating its importance. This is followed by range of interesting work at 66% (-4%), management style at 66% (+1%) and job security at 63% (+4%).
69% 67%
Range of Interesting work
66% 70% 69% 66% 65% 64%
Management style
63%
Job security
59% 57%
Working environment
58% 58%
54%
57% 55% 53%
Location
57%
Career progression
50% 49% 53% 55% 53%
Responsibility 41% 39%
Training/Development
36% 30% 31% 29%
Range of clients 20% 21%
Latest technology
2017 2016 2015
19% 9% 9% 8%
Travel opportunities 0%
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
Travel opportunities
Latest technology
Range of clients
Responsibility
Management style
Working environment
0%
2%
4%
Location
Job security has increased in importance by 20%. Location has also increased by 18% over the 10 year period.
20%
Job security
How important are each of the following to you in your job? The chart to the right illustrates the change in attitudes over the period from 2007 to 2017.
20%
Fairly 52% (+1%)
10%
20%
30%
40%
50%
60%
70%
17
MARKET ATTITUDES
Do you consider your current employer an employer of choice? Overall, 79% of the survey respondents consider that their current employer is their employer of choice, the same as last year.
No 21% (=)
Yes 79% (=)
62% 61% 60%
Leadership/Management style
How important are the following factors in making your current employer an employer of choice? Although Leadership/Management Style is the most important factor, support gaining a professional qualification has increased in importance by +11% over three years.
61% 60% 58%
Work life balance
60% 62% 59%
Company values/Ethics
60% 59% 58%
Reward & recognition
58% 61% 59%
Business vision & future potential 47% 49% 47%
Brand values
45% 44% 41%
Colleagues/Social dimension Personal development culture
40%
Promotional opportunities
41% 39%
Support in gaining your qualifications
26%
31%
45%
37%
32% 32% 29%
Internal communication
2017 2016 2015
22% 23% 21%
C.S.R policy (Corporate Social Responsibility) 12% 11% 11%
Relocation possibilities 0%
How likely are you to change employer in the next 12 months? 30% of respondents state that they are either very or fairly likely to move job in the next 12 months, down 1% from last year.
45% 44%
10%
20%
30%
40%
50%
60%
Very 10% (-1%)
Not at all 23% (-1%)
Fairly 20% (=)
Not very 47% (+2%)
18
www.macdonaldandcompany.com/salary-surveys
MARKET ATTITUDES
Partner/Director/Principal - Equity 1% (-2%)
How likely are you to change employer in the next 12 months? Of the 30% of respondents that state they are either very or fairly likely to move job in the next 12 months, over three quarters are either Staff/Surveyor/Analyst/Other (39%), Associate/Managers (24%) or Senior Manager/Vice President (14%). Only 1% are Managing Director/CEOs and an additional 1% are Principal/ Director/Partner - Equity.
Managing Director/CEO 1% (-2%) Assistant/Negotiator/ Trainee/Graduate 9% (+2%)
Partner/Director/Principal 12% (+1%) Associate/Manager 24% (+3%)
Staff/Surveyor/ Analyst/Other 39% (+11%)
Senior Manager/ Vice President 14% (-12%)
Non-profit making organisation 5% (-1%) Utilities/Power 2% (=)
How likely are you to change employer in the next 12 months? Of the 30% of respondents that state they are either very or fairly likely to move job in the next 12 months, nearly half (46%) work within Practice/Consultancy/ Advisors.
Occupier 5% (=)
Education 2% (=) Central/Local Government 14% (-1%)
Contractor 9% (+2%)
Facilities Management 2% (-3%)
Financial Institution/ Fund/Asset Manager 3% (=) Engineering 3% (-1%)
Developer/ Property Company 10% (-2%) Practice/Consultancy/Advisor 46% (+8%)
Salary
If you were to leave your current employer, what would your main reasons be? An improved salary remains the primary motivation for leaving an employer. Having increased by 5% since 2015, it is also the factor that has increased the most.
Career progression Range of interesting work Better benefits package Location Management style Job security Working environment Responsibility Training/ Personal development Range of clients Redundancy Retirement To start own business Change of career 14% 15% 13% 13% 13% 12% 12% 10% 10%
Work in a different country Travel opportunities Latest technology 0%
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
10%
30% 30% 24% 27% 28% 27% 23% 25% 25% 22% 24% 24% 22% 21% 20% 20% 22% 21%
20%
30%
46% 45% 43% 42% 42% 38% 41% 43% 42%
74% 73%
62% 61% 58% 55% 58% 57% 54% 52% 52% 54% 51% 50% 50% 52% 51%
78%
2017 2016 2015
40%
50%
60%
70%
80%
19
MARKET ATTITUDES
Yes, significantly 6% (-3%)
I am not sure 10% (+3%)
Do you expect your organisation to increase headcount in 2017? Over half of respondents (53%) believe their organisation will increase headcount in 2017.
Yes, modestly 47% (-2%)
However, the proportion of respondents who do not believe their organisation will increase headcount has risen (+2%), as has the proportion who are unsure (+3%).
No 37% (+2%)
At what level/role do you expect your company to hire this year? Of the respondents who expected their organisation to increase headcount in 2017, 44% believe their company will hire qualified or experienced professionals, while 39% anticipate their company hiring at graduate and entry level roles this year.
Other 4% (=)
Graduate/entry level roles 39% (+2%)
Director level/ Senior appointments 13% (-2%)
Qualified or experienced professionals 44% (=)
20
20%
20%
Research
Real Estate Banking/Finance//Advisory
21%
23%
26%
38%
39%
40%
42% 30%
20%
10%
Fund Management
Planner
Estate Agent/Sales/Lettings
Development Commercial
Project Management
Quantity Surveying
0% Investment Brokerage/Agency
Estate Agent/Sales/Lettings are the least confident with 26% believing their pay and benefits will be be negatively affected.
40%
Financial/Real Estate Analyst
How do you anticipate that your pay and benefits will be affected by market conditions in the next 12 months? The most confident professional activity are Financial/Real Estate Analysts, 45% of whom believe their pay an benefits will be positively affected by market conditions over the next 12 months.
Top 5 Negative Professional Activities
45%
Top 5 Positive Professional Activities 50%
www.macdonaldandcompany.com/salary-surveys
MARKET ATTITUDES
Top 5 Positive Professional Activities
Top 5 Negative Professional Activities
29%
33% Investment Brokerage/Agency
31%
33%
30%
20%
10%
Office Agent/Leasing
Retail Agent/Leasing
Fund Management
FM Service Provider Operations
Residential Block Management
Business Development
0%
59%
60%
2017 2016 2015
51% 50%
52%
41% 40%
35% 31%
30%
20%
17%
10%
6%
0%
Increase
8%
Decrease
Average All
In your chosen profession, do you anticipate economic activity in the next 12 months to increase, decrease or remain unchanged? Those working in Northern Ireland or Republic of Ireland are generally the most optimistic, with 42% anticipating an increase in economic activity. At 33%, compared with an average of 31% across the U.K. and Republic of Ireland, East Anglia and the North West/North East/Yorkshire and the Humber are also optimistic.
Research
37%
43%
44% Energy/Renewables
46%
Those working in Fund Management are the least confident, with 37% anticipating a decrease in economic activity during 2017.
In your chosen profession, do you anticipate economic activity in the next 12 months to increase, decrease or remain unchanged? Of respondents to the survey, 20% fewer believe that economic activity will increase in the next 12 months while 11% more think it is likely to decrease.
45%
50%
In your chosen profession, do you anticipate economic activity in the next 12 months? Business Development Managers are the most positive about the economic outlook in the next 12 months with 52% anticipating an increase in economic activity during 2017. This is followed by Residential Block Management (47%) and Property Finance (45%).
Property Finance
47%
52%
60%
Remain Unchanged
31%
17%
52% 42%
Northern Ireland/ Republic of Ireland
Increase Decrease Remain Unchanged
45%
East Anglia
33%
16%
North West/North East/Yorkshire and the Humber
51% 33%
14%
Midlands
53% 32%
16%
South East
52% 31%
16%
South West/Wales
53% 30%
16%
Scotland
54%
19%
Greater London
20%
28% 53% 28% 51% 42%
Other
13% 45%
0%
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
10%
20%
30%
40%
50%
60%
21
NOTES
— Peter Moore, Managing Director Macdonald & Company, Singapore
People make the difference. We connect you to that difference. macdonaldandcompany.com
22
www.macdonaldandcompany.com/salary-surveys
NOTES
— Peter Moore, Managing Director Macdonald & Company, Singapore
People make the difference. We connect you to that difference. macdonaldandcompany.com
The 2017 RICS and Macdonald & Company Rewards & Attitudes Survey
23
London 2 Harewood Place, Hanover Square, London W1S 1BX T +44 (0) 20 7629 7220 E: connect.uk@macdonaldandcompany.com Manchester York House, 20 York Street, Manchester M2 3BB T: +44 (0) 161 605 0500 E: connect.uk@macdonaldandcompany.com Dubai Knowledge Village, Dubai Media City (TECOM), Block 11, Office F13, P. O. Box 282196 Dubai, UAE T: +971 4 4366 393 E: connect.dubai@macdonaldandcompany.com Hong Kong 16th Floor, 1 Duddell Street, Central, Hong Kong T: +852 2248 3000 E: connect.hk@macdonaldandcompany.com Singapore 63 Market Street #05-02, Bank of Singapore Centre Singapore, 048942 T: +65 6713 9640 E: connect.sing@macdonaldandcompany.com South Africa Corner House, Corner 10th Avenue & Wessel Road Rivonia 2128, South Africa T: +27 10 005 1520 E: connect.sa@macdonaldandcompany.com www.macdonaldandcompany.com
Macdonald & Company is the leading professional recruitment consultancy for the real estate and built environment sectors. Established in 1994 and headquartered in the UK, we apply local knowledge with true global connection through our offices in Asia-Pacific, the Middle East and Africa. Our specialist teams act for every class of organisation owning, occupying, financing or advising on property, construction and engineering – developers, investors, institutions, funds, banks, consultancies and contractors. We are the preferred recruitment partner of RICS - the Royal Institution of Chartered Surveyors. Macdonald & Company is a subsidiary of the London Stock Exchange quoted Prime People Plc. People make the difference. We connect you to that difference.
Prime People PLC