FM World Salary Survey 2010

THE 2010 FM WORLD SALARY SURVEY

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CATHY HAYWARD EDITOR COMMENT

Comment elcome to the seventh FM World Salary Survey sponsored this year for the first time by FM recruitment specialist Catch 22. This in-depth research, published once again as a glossy stand-alone supplement to FM World, the awardwinning magazine for the British Institute of Facilities Management, is designed to identify trends in salaries, benefits, training and qualifications in the facilities management sector and also to look at how FM professionals feel about the industry.

Why do you go to work in the morning? Is it the daily challenge of the work itself? Is it the organisation’s culture and ethos? Is it the location and working environment? Is it the opportunity for promotion? Or, in these economic worrying times, is it about the job security and the pay check? And are there differences in opinion and experience between those working client and supply side, in the private and public sector and between different age groups, and the sexes?

Twelve months ago when we last asked these questions, we were in the grips of recession. The private sector was suffering while the public sector was buoyed by increased public spending aimed at providing an impetus for economic recovery.

A year on, the situation has been turned on its head with much of the private sector experiencing the green shoots of recovery, while the public sector is steeling itself against stringent spending cuts and predicting a long, cold, harsh winter still to come. How has the past year affected facilities professionals’ views about their pay packets, bonuses and future opportunities?

Thank you to all those who returned questionnaires telling us your views. We received more than 500 responses from a diverse range of facilities professionals across a broad spectrum of in-house and outsourced service provider roles in the public, private and not-for-profit sectors. Congratulations to Alan Cork, head of facilities at Ansbacher, whose name was randomly selected to receive the £250 prize. Thank you also to Catch 22 for its support in sponsoring the salary survey. I hope the following pages make thought-provoking reading. If you have any suggestions for how we can improve next year’s survey, please let me know at cathy@fm-world.co.uk

W

“WE RECEIVED MORE THAN 500 RESPONSES FROM A DIVERSE RANGE OF FACILITIES PROFESSIONALS”

This research was published by

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redactive publishing ltd 17 Britton Street, London EC1M 5TP Tel: 020 7880 6200 Website: www.redactive.co.uk In association with Catch 22

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Cathy Hayward Editor FM World FM WORLD | 2011 | 3

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FM RESEARCH SALARY SURVEY

Executive summary Who responded to the Survey?

Two-thirds of respondents work on the client side of Facilities Management, the remainder on the supply side. Of supply side FMs, most (77 per cent) worked for total FM firms.

Client side responses came from education, health care, property, the voluntary sector, media, and communications and utilities.

Almost a third of supply side FMs are involved to some degree with PFI/PPP projects.

Seventy per cent of respondents were male and two-thirds were in the 36-55 age group. Only 5.5 per cent came from ethnic minorities.

Salaries and pay rises Only 2 per cent of recipients saw their wages drop but 36 per cent per cent of respondents reported no change in their salary. 37 per cent received a salary increase, but of just 1-2 per cent. The figure of 23 per cent of respondents who received no change is less than 2008’s 7 per cent. Client side facilities professionals were more likely to receive a pay rise than their supply side counterparts, this year.

Client side FMs continue to dominate the lower pay scales: 70

per cent of client side FMs earned £45,000 or under compared to 50 per cent of supply side FMs. Supply side FMs earning £61,000 and above outnumbered client side FMs by a ratio of two to one.

Benefits Almost 45 per cent of respondents received no bonus compared to 38 per cent in 2007.

Those that did receive a bonus tended to get a smaller one than in previous years – the most popular bonus was in the £1,000 and £5,000 range.

Most FMs received a pension (85 per cent) and the next most common benefit was a health plan (58 per cent) followed by performance-related bonus (50 per cent); company car or car allowance (41 per cent); petrol allowance (24 per cent); profit share/share save scheme (19 per cent); and paid overtime (16 per cent).

Motivation Wage is a key motivating factor in the FM sector, which is in-keeping with the survey’s pervious results, on both the client side and supply side.

Over half (57 per cent) of respondents agreed that their

organisation had a high degree of staff moral and a strong sense of belonging.

Background and Education As in the previous two years, the vast majority of respondents were overwhelmingly from a white background (94.5).

There remains two key routes into FM for today’s facilities professional: building services/ engineering (15 per cent) and office management/administration (17 per cent).

Almost half had the IOSH qualification and 34 per cent Nebosh. While 27 per cent had first degrees (7 per cent in an FM-related discipline), over 20 per cent had a Masters degree or post graduate diploma (of which 14 per cent was in facilities management).

The most significant finding of this research is that job security is becoming increasingly important to FMs – at the expense of challenging and interesting work, due most probably to the economic uncertainty which is set to continue into 2011. This is also likely to be responsible for the wage restraint evident in 2010.

THOSE ON THE CLIENT SIDE WERE MORE LIKELY TO RECEIVE A PAY RISE THAN THEIR SUPPLY SIDE COUNTERPARTS 4 | 2011 | FM WORLD

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SALARY SURVEY

Who responded to the salary survey?

For the seventh successive year, two-thirds of respondents to the salary survey indicated that they worked on the client side (66 per cent), where facilities management is managed in house, with the remainder employed supply side by service providers.

As last year, the biggest employer on the client side was central and local government (see Chart 1). But the proportion of those employed in government has been volatile over the past few years. In 2008 it was 12 per cent and this rose to 18 per cent last year possibly indicating that although other sectors have had to cut jobs, public sector recruitment remained strong 12 months ago. However post the 2010 comprehensive spending review this number fell further – to 16 per cent. And it will be interesting to see if it falls even further next year, when the true extent of the spending cuts become clear.

Meanwhile there has been a slight increase in the number of respondents from the finance, banking, insurance and legal sectors, (after a blip last year possibly due to the global crisis in this sector which has seen some big names, such as Lehman Brothers, disappearing and some FM jobs going the same way).

The overall distribution of responses client-side was quite fragmented with education, health care, property, the voluntary sector, media and communications and utilities all represented, but no one category exceeding 10 per cent of the total. As you would expect from the BIFM membership, the sample was heavily slanted towards the more senior representatives of the industry: 21 per cent were directors or heads of facilities management; 30 per cent regional or multisite FMs; and 17 per cent senior FMs for a HQ or flagship site. Only 13 per cent described themselves as facilities assistants or office managers.

Of those working supply side 77 per cent said that they worked for a total FM firm (see Chart 2), with relatively small numbers employed by soft FM companies (4 per cent) and hard FM companies (7 per cent) which have dropped considerably over the past six years. The percentage of respondents hailing from total FM firms has risen substantially over the history of the survey from 42 per cent in 2007 and 65 per cent in 2008 to 77 per cent in 2010 reflecting the growing trend for clients to purchase bundled or integrated services.

As with the client side, respondents tended to come from the more highly skilled and better remunerated end of the profession: 29 per cent said that they worked on operational management with a UK remit and 33 per cent said multi-site operations with only 9 per cent choosing ‘ single-site operations’ or 8 per cent choosing facilities supervisor as the best fit for their role. The trend for service providers to be In association with Catch 22

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CHART 1 IN–HOUSE RESPONSE TO SURVEY Finance, banking, insurance – 17% Local government – 9% Training and education – 9% Property – 8 % Central government – 8% Engineering, construction, manufacturing – 7% Charity/ voluntary sector – 6% Healthcare – 6% Communications and media – 5% Electricity, gas, water – 2% Transport and storage – 0.5% IT – 3% Services – 2% Wholesale and retail trade – 2% Oil, chemicals, mining – 0.5% Management consultancy – 2% Leisure, hotels, catering – 1% Other – 14%

CHART 2 SERVICE PROVIDER RESPONSE TO SURVEY

Total FM and managed services – 77% Consultancy (FM/property) – 12% Hard FM – 8% Soft FM services – 4%

CHART 3 RESPONDENTS’ BIFM MEMBERSHIP LEVEL Members – 66% Associates – 26% Large enterprise corporate member – 4% Certified member – 3% Fellow – 1% Small enterprise corporate member – 1%

FM WORLD | 2011 | 5

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FM RESEARCH SALARY SURVEY

CHART 4 REGIONAL SALARY SURVEY ANALYSIS Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

Scotland

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

Northern Ireland

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

North-west

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

In-house

Provider

Increase

Decrease

6 | 2011 | FM WORLD

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North-east

Up to £25,000

£26,000 £35,000

£36,000 £45,000

£46,000 £60,000

£61,000 £75,000

£76,000 £91,000

£91,000

involved with PFI or PPP projects was once again confirmed – the proportion of respondents describing their role as falling within PFI or PPP-type operations has increased slightly to 31 per cent – this has grown throughout the past few years reflecting the importance of this revenue stream to the profession.

But it will be interesting to see what impact the demise of programmes such as Building Schools for the Future has on this figure next year.

More than two-thirds of respondents described themselves as having BIFM member grade status (see Chart 3) – a figure which has risen over the course of the survey as the membership becomes more qualified.

The remainder were divided between associate members (25 per cent), corporate members (5 per cent), the new certified member grade (2.5 per cent) and a small number of fellows.

Forty per cent of respondents were also members of other professional bodies. IOSH (the Institution of Occupational Safety and Health) was the most popular with 39 per cent of respondents being a member.

Also popular was the Royal Institution of Chartered Surveyors (13 per cent); Chartered Institute of Building Services Engineering (11 per cent); Chartered Management Institute (11 per cent); British Institute of Cleaning Science (7 per cent); Chartered Institute of Purchasing and Supply (6 per cent) and Chartered Institute of Building (6 per cent).

Other memberships cited included other national bodies such as the International Facility Management Association, the Irish Property and Facility Management Association, the Facilities Management Association of Australia; and sector bodies such as the Institute of Hospitality.

The respondents, like the profession, were overwhelmingly male with 70 per cent of respondents being male. The gap has decreased over the years and this continued trend indicates that the gender make-up of the FM industry is changing and that an industry which for so long has seemed prohibitively male is starting to attract women in considerable numbers, boosted by the activities of groups such as the BIFM’s Women in FM special interest group, the institute’s mentoring programme, Women in Property and FM World’s Influential Women campaign. The number of female role models, such as the BIFM FM of the Year 2010 Julie Kortens, who is head of FM at Channel 4, is heartening.

The age profile of FM seems to be broadly static – and fairly middle aged. Just 18 per cent of respondents were 35 or under. The majority of respondents were

Same

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SALARY SURVEY

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

in the 36-45 age group (36 per cent) while 33 per cent were 46-55 and 13 per cent 56 and over. This could be explained by those facilities professionals who choose BIFM membership tending to be in more senior roles, and therefore older. But it does raise concerns about the future of our industry. We need to be attracting young and talented blood into facilities management.

The dominance of London and the south-east was again in evidence this year with 49 per cent of respondents coming from that region (down from 55 per cent last year) and 29 per cent from the capital indicating that FM naturally remains a urban-based occupation.

The remainder of the respondents were distributed fairly evenly across the other regions: the Midlands led the way with 11 per cent of respondents, closely followed by the north-east, north-west and Scotland with 10 per cent each. Wales and the south-west had 9 per cent of respondents with smaller numbers from the east of England and Northern Ireland.

Once again respondents were disproportionately white – 94.5 per cent came from a white background (White British, White Irish or Other White) with just 2 per cent from Asian backgrounds, 1.8 per cent from Black backgrounds, 0.2 per cent from Chinese backgrounds and 1.6 per cent from other ethnic groups or preferring not to say.

These figures are a slight improvement from previous years when typically 5 per cent of people were from non-white backgrounds (including usually 1.5 per cent of people who preferred not to say) but are still lower than the national average. According to the 2001 census, for example, around 8 per cent of the population is from ethnic minority groups.

This is all the more worrying when you consider that facilities management is a largely urban-based industry where there is typically more ethnic diversity and that many facilities services staff such as security guards, cleaners and receptionists often come from non-white backgrounds. The FM sector could be failing to breed the right role models to encourage non-white facilities services staff into management roles and those from ethnic minorities outside our sector into it.

More than half of survey respondents (56 per cent) worked for companies employing 1,000 people or more and a further 12 per cent for companies employing more than 500 people. This confirms the view that FM is a “big business” sector – the sort of specialism that doesn’t tend to be found in smaller companies where the division of labour is less well developed. It also bodes well for the credibility of these results.

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

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Wales and South-west

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

South-east

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager

East of England

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

No indicators as new region

Director / Head of FM Regional or multi-site FM Senior FM (HQ / flagship site) Single-site FM Facilities assistant / office manager Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

In-house

In association with Catch 22

Midlands

Business development / sales Bid management Facilities supervisor Operational management (UK remit) Multi-site operations Commercial management Single-site operations

Provider

London

Up to £25,000

£26,000 £35,000

£36,000 £45,000

£46,000 £60,000

£61,000 £75,000

£76,000 £91,000

£91,000

FM WORLD | 2011 | 7

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FM RESEARCH SALARY SURVEY

CHART 5 SERVICE PROVIDER SALARIES BY FUNCTION INTERGRATED FM FIRMS

£91,000+ £76,000-£90,000 £61,000-£75,000 £46,000-£60,000 £36,000-£45,000 £26,000-£35,000 up to £25,000

4% 6% 11% 25% 17% 25% 12%

CONSULTANCY (FM/ PROPERTY)

£91,000+ £76,000-£91,000 £61,000-£75,000 £46,000-£60,000 £36,000-£45,000 £26,000-£35,000 up to £25,000

9% 0% 9% 36% 13% 27% 5%

Does it pay to be in facilities management? How has the recession hit salaries, pay rises, bonuses and expectations?

Unsurprisingly, the monthly pay packet remains the key reason why facilities professionals go to work in the morning and that has remained the same over the seven years of the survey. It is top of the list for both those working supply and client side (74 per cent and 66 per cent respectively cited it as one of the top three reasons for going to work) although the gap between the two groups indicates that for in-house FMs there are other important issues – more later on that.

The majority (60 per cent) of respondents agreed that their employer offers a competitive salary and package compared to other organisations in the facilities market. This is a similar figure to last year.

But this leaves 40 per cent of respondents who are unhappy with what they are paid – and this is likely to increase, especially with public sector wage freezes (or cuts) and as unemployment increases and employers enjoy a buyers’ market. It is surprising that there has been no increase this year in people feeling unhappy with their salaries when many respondents have endured lower pay increases or pay freezes. It suggests that many have realistic expectations about their salary and benefits package in tough economic conditions.

More than half of respondents (57 per cent) in this year’s survey said their organisation has a high degree of staff morale and a strong sense of belonging (a similar figure to the last few years) which could go some way to explain this trend and reveals that even in a recession, many organisations have done a good job in motivating staff and creating a feel-good factor.

Just under a third of respondents indicated that their organisation had a high staff turnover, up marginally from last year, but down on the previous few years’ 8 | 2011 | FM WORLD

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HARD FM

£91,000+ £76,000-£90,000 £61,000-£75,000 £46,000-£60,000 £36,000-£45,000 £26,000-£35,000 up to £25,000

0% 7% 14% 14% 57% 7% 0%

research. This possibly indicates that redundancies and recruitment freezes are limiting job opportunities, and people prefer to stay put rather than risk a new employer where they may be subject to a ‘last in, first out’ policy.

As in previous years those working for service providers were more content about their salary than those working where FM was managed in-house (61 per cent against 58 per cent). But it suggests that supply side roles continue to attract higher salary packages which was borne out by the survey (see Chart 4). Client side FMs dominated the lower pay scales: 70 per cent of client side FMs earned £45,000 or under compared to 50 per cent of supply side FMs. Meanwhile supply side FMs earning £61,000 and above outnumbered client side FMs by a ratio of two-to-one.

As in the past six years of this research, the gender pay gap continues to remain a trend in the FM sector, with the survey revealing not only that women earn substantially less than men but are also aware that their male counterparts earn more. Female FMs dominate the lower pay scales with 73 per cent of female respondents earning up to £45,000 compared to 54 per cent of men. Men are the higher earners controlling the salaries above £61,000 – 19 per cent of men earn more than £61,000 compared to 7 per cent of women.

And women are aware of this disparity with less women than men believing they have a competitive salary and package – 51 per cent compared to 63 per cent. In addition slightly less women than men believed that their organisation encourages equal opportunities and diversity – 80 per cent compared to 91 per cent of men.

The headline news of this year’s research is that the touch economic conditions are continuing to bite into In association with Catch 22

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SALARY SURVEY

CHART 6 YOUR SALARY INCREASE AT LAST REVIEW? Increase 1-2%

SOFT FM Increase 3-4% Increase 5-6% Increase 7-10% Increase 11 plus% No change 2010 2009 2008

Decrease

£91,000+ £76,000-£90,000 £61,000-£75,000 £46,000-£60,000 £36,000-£45,000 £26,000-£35,000 up to £25,000

14% 0% 29% 43% 0% 14% 0%

Respondents

0%

10%

20%

30%

40%

50%

CHART 7 YOUR SALARY INCREASE AT LAST REVIEW? Increase 1-2% Increase 3-4%

facilities professionals’ pay packets. Thirty-six per cent of respondents saw no change in their salary, 2 per cent saw a decrease, 37 per cent received a salary increase of just 1-2 per cent and just 15 per cent 3-4 per cent.

This is a worsening of last year’s position when 32 per cent saw no change, 31 per cent saw a 1-2 per cent increase and 23 per cent received a 3-4 per cent increase. It compares very unfavourably to the 2008 research when just 7 per cent received no change in their salary, 23 per cent a 1-2 per cent increase and 45 per cent 3-4 per cent.

Salary increases in the sector have risen steadily over the course of the survey – last year was the first time they have fallen and we have seen a worsening of that position this year. In 2008 we saw an indication that this trend was about to change: in October 2008, when the credit crunch was beginning to bite but before the true extent of the recession became clear, we asked respondents to consider what salary increase or decrease they would receive at their next pay review.

Almost 30 per cent expected to receive an increase of 1-2 per cent at their next review, while almost half saw themselves receiving between 3-4 per cent. Just 9 per cent were anticipating a 5-6 per cent rise and 4 per cent a 7-10 per cent rise with just 1.5 per cent counting on getting an increase of 11 per cent or more. Just over 8 per cent expect to receive no increase at all. The reality was harsher last year and even more so this year as Chart 6 shows.

Client side facilities professionals fared better than their supply side counterparts in 2010, with client side FMs more likely to receive a pay rise (however small).

Almost half of all supply side respondents had their salary frozen compared to 31 per cent of in-house FMs. This is the same as 2009 but in contrast to previous years when in-house facilities managers tended to receive the lower pay rises while service-provider In association with Catch 22

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Increase 5-6% Increase 7-10% Increase 11 plus% No change

Private Public

Decrease

0%

Not for profit 10%

20%

30%

40%

50%

FMs dominated the bigger increases.

But interestingly, client side FMs are more pessimistic about the future. Forty-five per cent predicted that their salary would not change at their next review, while 29 per cent felt it would increase by just 1-2 per cent. Supply side facilities professionals were more bullish with 59 per cent predicting a rise of up to 4 per cent.

This year for the first time, we looked at the differences in experience between facilities professionals in the private, public and not-for-profit sectors. There was a marked contrast in experience between the different groups. FMs in the public sector were far more likely to have had no change in their salary at their last pay review that their private sector counterparts – 40 per cent to 32 per cent and to have had lower pay rises where there was an increase. FMs in charities also fared worse than those in the private sector. Like public sector FMs they were more likely to have seen a pay freeze – 39 per cent reported that their salary stayed the same and 4 per cent saw their salary fall (see Chart 7).

Both public and charity FMs were pessimistic about FM WORLD | 2011 | 9

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FM RESEARCH SALARY SURVEY

CHART 8 WHAT DO YOU EXPECT YOUR SALARY INCREASE TO BE AT YOUR NEXT PAY REVIEW? 2010 Increase of 1-2%

32%

Increase of 3-4%

18%

Increase of 5-6%

3%

Increase of 7-10%

1.4%

Increase of 11% or more

3%

No change Decrease

42% 1%

2009 Increase of 1-2%

40%

Increase of 3-4%

20%

Increase of 5-6%

3.4%

Increase of 7-10%

3%

Increase of 11% or more

1%

No change

32%

Decrease

0.7%

2008 28%

Increase of 1-2%

48%

Increase of 3-4%

9%

Increase of 5-6% 4%

Increase of 7-10% 1.5%

Increase of 11% or more

8.5%

No change Decrease

1%

2007 Increase of 1-2%

21%

Increase of 3-4%

53% 14%

Increase of 5-6% Increase of 7-10%

4%

Increase of 11% or more

2%

No change Decrease

6% 0.6%

2006 25%

Increase of 1-2%

56%

Increase of 3-4% 10%

Increase of 5-6% 3%

Increase of 7-10%

2%

Increase of 11% or more

4%

No change Decrease

0.6%

0%

10 | 2011 | FM WORLD

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20%

40%

60%

their future wage packets. More than 60 per cent of public sector FMs and 52 per cent of charity FMs predicted that there would be no change at their next salary review, compared to 29 per cent of FMs in the private sector. Where there were anticipated increases, public sector FMs were modest in their predictions: 22 per cent said they would be in the 1-2 per cent bracket and 10 per cent in the 3-4 per cent bracket.

It was a similar story with facilities managers in notfor-profit bodies: 44 per cent predicted a rise of 1-2 per cent and 4 per cent of 3-4 per cent. No charity FMs predicted a rise of over 4 per cent. Meanwhile private sector facilities professionals were more optimistic: 36 per cent predicted a 1-2 per cent rise and 24 per cent a 3-4 per cent rise with 11 per cent predicting increases of more than 5 per cent.

For the second year running, bonuses have also been hit by the recession with almost 45 per cent of respondents reporting receiving no bonus compared to 49 per cent last year but 39 per cent in 2008 and 38 per cent in 2007.

Those that did receive a bonus tended to get a smaller one than in previous years – the most popular bonus was in the £1,000 and £5,000 range. Once again there was a big difference in the experience of client and supply side FMs, but this time in the supply side’s favour. Almost half of in-house FMs received no bonus at all (compared to just over a third of service-provider FMs) and they tended to receive the smaller bonuses – see charts 11 and 12.

In addition, supply side FMs were far more likely to receive performance-related bonuses than their client side counterparts (62 per cent against 44 per cent).

Unsurprisingly, guaranteed bonuses have also been hit hard by the economic turmoil: in 2007 9 per cent of respondents received a guaranteed bonus, this fell to 5 per cent in 2008 and 3 per cent in both 2009 and 2010.

In previous years, female respondents have tended to receive lower bonuses but this changed in 2009 and that trend continued last year. More men than women didn’t receive a bonus (46 per cent against 42 per cent) while 51 per cent of women received a bonus of up to £10,000 compared to 44 per cent of men.

As you might expect, there was a major difference in experience between facilities professionals in different sectors. Around three-quarters of both public and charity sector FMs did not receive a bonus compared to a quarter of those in the private sector. Where bonuses were received by those in the public and third sector, they were smaller than their private sector counterparts. No charity FM received a bonus of more than £5,000, but 6 per cent of public sector FMs and 26 per cent of private sector FMs did with 5 per cent of private sector facilities professionals receiving a bonus of more than £20,000.

Elsewhere, it seems that some of the curtailments In association with Catch 22

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SALARY SURVEY

CHART 9 PAY RISES RECEIVED BY SUPPLY SIDE FMS

in benefits packages which we saw in last year’s researcg, might be being lifted this year. There were small increases in the numbers of organisations offering employees a company car or allowance, petrol allowance, pension scheme, health plan and profit share/share save schemes. They are by no means back to pre-recession levels but are certainly heading in the right direction.

The most common benefit remains a pension scheme (85 per cent) followed by a health plan (58 per cent); performance-related bonus (50 per cent); company car or car allowance (41 per cent); petrol allowance (24 per cent); profit share/share save scheme (19 per cent); and paid overtime (16 per cent). This is very similar to last year.

As in previous years, supply side FMs tended to get the better benefits packages (see Chart 12) reflecting the commercial incentives offered in supply side roles.

Seventy-two per cent of supply side FMs received a company car or car allowance compared to 26 per cent of client side FMs (although this could be due to supply side FMs needing transport to travel around different clients’ sites). Three quarters of supply side facilities managers were offered a health plan compared to half of in-house FMs; and performance-related bonuses were more common for those working for service providers, reflecting how supply side FMs are more incentivised by commercial drivers. But in-house FMs were more likely to be paid for overtime.

In previous years we have seen a major difference in the benefits received by male and female facilities managers but in 2010 this levelled out. The only discernible difference is that men were more likely to receive a company car, car or petrol allowance.

As before, the older you are, the better benefits you receive but that is likely to be linked with seniority of roles.

The real story of this year’s research, is not that salary remains the key motivator for FM professionals but that job security is becoming increasingly important to FMs – at the expense of challenging and interesting work. This was first hinted at last year, but has become embedded in this year’s research. This is hardly surprising perhaps in a time of economic turmoil with growing unemployment and redundancies and pay constraints across the sector.

In 2007, 28 per cent of respondents listed job security as one of the three most important things to them in a job – this was rated sixth after salary, challenging and interesting work, career prospects, location and degree of responsibility. By the time the credit crunch was making headlines in 2008, the picture was beginning to change with 40 per cent of respondents listing job security as one of their three most important things about a job – rated fourth after salary, challenging/interesting work and career In association with Catch 22

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Increase of 1-2% – 26% Increase of 3-4% – 15% Increase of 5-6% – 4% Increase of 7-10% – 5% Increase of 11% or more – 3% No change – 46% Decrease – 2%

CHART 10 PAY RISES RECEIVED BY CLIENT SIDE FMS Increase of 1-2% – 43% Increase of 3-4% – 15% Increase of 5-6% – 3% Increase of 7-10% – 2% Increase of 11% or more – 3% No change – 31% Decrease – 2%

CHART 11 BONUSES RECEIVED BY SUPPLY SIDE FMS None – 37% Up to £999 – 10% £1000 - £4,999 – 28% £5,000 - £9,999 – 13% £10,000 - £14,999 – 5% £15,000 - £19,999 – 3% £20,000 - £29,999 – 4% More than £30,000 – 1%

CHART 12 BONUSES RECEIVED BY CLIENT SIDE FMS None – 49% Up to £999 – 13% £1000 - £4,999 – 23% £5,000 - £9,999 – 9% £10,00019,999 – 3% £15,000 - £19,999 – 2% £20,000 - £29,999 – 1% More than £30,000 – 1%

FM WORLD | 2011 | 11

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FM RESEARCH SALARY SURVEY

CHART 13 WHAT BENEFITS DO YOU RECEIVE? 72%

Company car or allowance 26% 32%

Petrol allowance 11%

86%

Pension scheme

85% 75%

Health plan 50%

5%

Guaranteed bonus

3% 62%

Performance-related bonus 44% 23%

Profit share / sharesave 14%

Service provider 7%

Paid overtime

In-house

20%

0%

20%

40%

prospects. In 2009, job security moved further up the agenda – rated third after salary and challenging/ interesting work with 41 per cent of respondents listing it as one of three things that are important to them in their careers. In 2010, that figure rose to 48 per cent (see Chart 14).

For the first time this year we asked people if they planned to stay with their current employer for the next year or more, what was their reason for staying.

The results back up the earlier findings as almost a third were staying with their employer because of job security in the current climate.

The rise in the importance of job security is largely at the expense of salary, challenging/interesting work and career prospects. And respondents felt that while they had a secure job, their career could be suffering as a result. Just 31 per cent felt that their current 12 | 2011 | FM WORLD

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60%

80%

100%

employer offered excellent succession planning and career opportunities, compared to 35 per cent in 2009 and 46 per cent in 2008.

Location was more important this year, together with the degree of responsibility you have in your job – possibly reflecting FMs’ desire to gain all the experience they can for their CV. Flexible working is having a bit of a comeback after a dip last year (possibly because in tough times, people tend to want to be in the office and be seen doing their job by their bosses to avoid the redundancy cull). Relationship with colleagues has also moved up the agenda in recent years, maybe because FMs want to create better relationships with colleagues if you feel you’re going to be around in a role for a while and office networking could also give you the inside track on redundancies and promotions.

In association with Catch 22

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SALARY SURVEY

The overriding message which comes through again this year is that respondents would prefer to have any reasonable job at a reasonable salary rather than no job at all – and ‘softer’ more long-term issues go further down the agenda when times are hard.

As in previous years the research pointed to a difference between what motivates client and supply side FMs. While the top four is the same for both groups (salary, challenging work, job security and career prospects) they are given different levels of importance. Career prospects are far more important to those working supply side – 46 per cent of supply side FMs listed it as one of the top three reasons they went to work compared to 34 per cent of client side FMs – which reflects the promotional opportunities and succession planning available supply side – 43 per cent of those working for service providers felt that their employer offered excellent succession planning and career opportunities compared to 25 per cent of in-house FMs. Meanwhile those working in-house are more concerned about job security than those working for service providers, possibly because they feel their skills are not as transferable should they lose their job.

Degree of responsibility is also seen as key for in-house FMs but less important for others. And holiday entitlement and final salary pension schemes were cited as being of greater importance to in-house FMs. The opportunity to work flexibly was much more important for those on the supply side than client side (28 per cent against 21 per cent) although more than two-thirds of both client and supply side FMs are offered this flexibility.

There were also some interesting differences in what female and male FMs look for in a job. Women were more interested in challenging roles than men (63 per cent to 49 per cent – an increased gap from last year), and good relationships with colleagues. Men were more concerned with job security (49 per cent to 44 per cent) and career prospects (40 per cent to 32 per cent).

The opportunity to work flexibly, which in previous years had been very popular for women is now of almost equal importance to both sexes, indicating that it is no longer seen as something a carer does, but a way to work more efficiently and effectively.

There is also some disparity in what private, public and not-for-profit sector FMs look for in a job (see Chart 15). Salary and challenging/interesting work are the top two factors for all three groups. But whereas career prospects are in the top five for both private and public sector FMs (with 40 per cent and 39 per cent of respondents seeing these at one of the most important things they look for in a job, this comes very low down the list for charity FMs – with just 13 per cent of respondents saying this is key for them).

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CHART 14 MOST IMPORTANT FACTORS IN A JOB?

Salary

Challenging/ interesting work

Job security

Career prospects

Location

Degree of responsibility

Relationship with colleagues

Opportunity to work flexibly, by location or time Recognition

Training

Final salary pension

Holiday entitlement

Physical working environment

Health cover 2010 2009 2008

Fringe benefits/perks

2007 0%

10%

20% 30%

40%

50%

60% 70%

80%

FM WORLD | 2011 | 13

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FM RESEARCH SALARY SURVEY

CHART 15 MOST IMPORTANT FACTORS IN A JOB? Private sector

Salary

Public sector

Challenging/ interesting work

Not-forprofit sector

Job security Career prospects Location Degree of responsibility 20%

40%

60%

80%

100%

SALARY PEAKED IN IMPORTANCE FOR THOSE AGED 26-35, WHEN PEOPLE ARE OFTEN THINKING OF STARTING A FAMILY

Of more importance for FMs in this sector is location, degree of responsibility and relationships with colleagues. Job security was equally important to FMs in all three sectors.

As you might expect, career prospects and training ranked highly for younger FMs but decreases in importance as respondents got older. In comparison, final salary pensions and relationships with colleagues became more important as respondents got older.

Salary peaked in importance for those aged 26-35, when people are often thinking of starting a family and going down to one wage, or increased costs through childcare. This supposition is borne out by the opportunity to work flexibly being key for this age group – and those aged 18-25 reflecting the different needs of Generation Y. And also job security being key at aged 26-35.

Holiday entitlement was important to younger people, as was relationships with colleagues, location and training.

Just under a third (31 per cent) of supply side FMs are involved to some degree with PFI/PPP projects, an increase from the last few years (In 2007 27 per cent of facilities professionals working for service providers said that their role included a PFI/PPP dimension). In the past working in PFI projects was both beneficial to FMs’ careers and salaries. Last year those FMs with a PFI dimension to their roles tended to dominate the higher pay brackets and were far more likely to be promoted in the last 12 months compared to their non-PFI counterparts. Benefits packages across the board were better for PFI specialists. But in 2009, PFI specialists saw this changing: they predicted lower salary increases at their next pay review, than regular supply side professionals and this has certainly been the experience in 2010: those involved in PFI tended to receive slightly lower pay rises and bonuses than those without PFI as part of their role and they were also more pessimistic about future pay rises. It will be interesting to see how the impact of public spending cuts affects this in 2011.

How often do FMs change jobs?

In the past few years this research has revealed that FM is a mobile sector with many facilities professionals choosing to move jobs regularly often every 18 months to two years to increase their experience, skills and salary prospects.

In 2009, we started to see this pattern change, with people preferring to stay with the current employer, rather than risk moving where the grass may not be greener and where a shorter continuity of service would make for a lower redundancy payment should the worse happen.

In 2007 and 2008, for example, 35 per cent of respondents had been with their employer for less 14 | 2011 | FM WORLD

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SALARY SURVEY

than two years – a fairly high number indicating that people were moving jobs fairly often. This fell to 29 per cent in 2009 and 20 per cent this year suggesting that people are staying in their jobs longer – echoing the earlier comments on job security. In 2010 26 per cent of respondents had been in their current roles for two to four years – the largest ever percentage in this group which shows that people who would have typically moved on after two years have stuck around for a year or so longer to ride out the economic turmoil.

Despite this, the percentage of respondents planning on leaving their jobs within the next 12 months has stayed around 20 per cent over the last six years – and is at its highest this year at 22 per cent. This seems to suggest that people are keen to move on to the next challenge and have been ready to do so for the last 12 to 18 months but are waiting for the economy to improve before they take the leap.

For the first time this year, we asked people if they were planning to leave their employer within the next year, what was their reason for wanting to leave. Lack of career opportunity came out as the main reason (21 per cent) which supports the assertions made above. Expected redundancy was the reason for 15 per cent and dissatisfaction with pay and benefits for 14 per cent of respondents. The remainder were split between expected retirement, level of workload/ working hours/stress, lack of management/colleague support or the expectation that the current role would be changed.

We also asked people why they were planning to stay with their employer for the next year or more.

More than 40 per cent said that they were happy with their job and responsibilities (which is great news).

But, as revealed above, almost a third were staying because of job security in the current climate. Just 5 per cent were staying for the salary/benefits package and 6 per cent for the promise of internal promotion and none of the promise of bonus payment or pay rises. A few were also staying because of the promise of training, or to receive other benefits such as sick pay or maternity/paternity leave. Table 17 shows that FMs are staying in their current roles and putting off their job move until the economy improves.

Overall, FM is an experienced sector: more than three quarters of respondents have worked in the industry for more than six years with 18 per cent having been in the sector for more than 20 years.

But this also raises the question as to whether we are attracting new people into the industry. Just 4 per cent of respondents had been in FM for less than two years, which is a fall from the 5 per cent in 2009 and 6 per cent in 2008 and 2007. While this can be explained away by BIFM members tending to be more senior (and therefore more experienced) in the profession, we do need to consider how we can showcase facilities In association with Catch 22

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CHART 16 DO YOU AGREE WITH THE FOLLOWING STATEMENTS? My employer:

Agree

Offers excellent succession planning and career opportunities

Disagree

Always encourages equal opportunities and diversity Has a high turnover of staff Has a high degree of staff morale and a strong sense of belonging Does everything to empower staff wherever possible in order to make their own decisions Has a strong public image and performs well against competitors Offers exit interviews to all staff who leave the company Offers a competitive salary and package compared to other organisations in the facilities market Offers staff the opportunity to work flexibly, both in terms of time and location, where possible 20%

40%

60%

80%

100%

FM WORLD | 2011 | 15

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FM RESEARCH SALARY SURVEY

A LACK OF CAREER OPPORTUNITY WAS CITED AS THE MAIN REASON FOR CLIENT SIDE FMS WANTING TO LEAVE THEIR EMPLOYERS CHART 17 HOW LONG HAVE YOU BEEN WITH YOUR CURRENT EMPLOYER? 2010 1 year or less

1009 2008 2007

1-2 years

2-4 years

4-6 years

6-9 years

9-14 years

14-20 years

20+ years 0%

16 | 2011 | FM WORLD

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5%

10%

15%

20%

25%

management as a career of choice to those leaving full-time education and also people from transferring from other sectors. If you know someone who would be interested in a career in facilities management, why not give them a copy of the FM World Guide to Careers in FM, sponsored by Reliance. Call 020 7880 6229 or email editorial@fm-world.co.uk for your free copies.

Those working supply side have itchier feet and plan to leave their job sooner than client side FMs – a quarter of facilities professionals working for service providers plan to leave their roles within the next 12 months compared to a fifth of FM employed in-house. Women are also more mobile than men with 26 per cent of women planning to leave their employer within the next 12 months compared to 20 per cent of men. Younger FMs are also more impatient with 41 per cent of those aged under 35 planning to leave their roles within the next six months.

As in the last six years individuals working for service providers change roles more frequently than their in-house counterparts. This can partly be attributed to the fluid nature of the FM market with mergers and acquisitions and companies frequently losing and acquiring contracts, often leading to Tupe transfers. But does it also indicate a lack of opportunity within supply side organisations? More than a half (57 per cent) of facilities professionals working supply side felt that their organisation didn’t offer good succession planning and career opportunities, a similar figure to 2009 and a big increase on previous years.

Lack of career opportunity with their current employer was cited as the main reason as to why those supply side FMs leaving their employers within the next 12 months wanted to leave.

Of even more concern is the figure for client side FMs: more than three-quarters felt their organisation failed to provide excellent succession planning and career opportunities (a slight increase on last year) suggesting that many in-house FMs feel trapped and unappreciated within the FM department and the wider organisation doesn’t appreciate or recognise their worth.

Again, a lack of career opportunity was cited as the main reason why client side FMs planning to leave their employers within the next 12 months wanted to leave.

When asked why they left their last employer, a fifth of respondents cited the lack of career opportunity as the main reason – a similar figure to the last two years (see chart 15). This is worrying as organisations are clearly haemorrhaging experienced and skilled staff because they are not demonstrating what career paths may be available. This was more of an issue for those working client side than supply side (24 per cent to 18 per cent – although the gap has closed since last year), women rather than men, and those under 35.

30%

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SALARY SURVEY

As you might expect, the numbers of people leaving their last employer because they were made redundant is quite high (16 per cent in 2010 compared to 19 per cent in 2009) and 11 per cent left because they were Tupe’d over to their new employer – a common occurrence in the facilities management sector.

Despite the lack of pay rises in the sector, just 5 per cent of people left their last employer because they were unhappy with the pay and benefits (the same percentage as last year) suggesting that people have realistic expectations in these stringent times.

There has been a slight fall (from 11 per cent to 8 per cent) of people leaving their job because of the level of workload, working hours, lack of management support or stress of the job. Anecdotally, there are still reports of bullying bosses, office politics, being lied to about the role as their reason for leaving.

With 29 per cent of respondents reporting that their organisation does not offer exit interviews to all staff who leave (up from last year), this poor practice may not be uncovered. As in previous years service providers are less good at offering exit interviews than client side organisations (75 per cent of respondents working client side said their organisation offered an exit interview, compared to 63 per cent supply side) which reflects badly on our sector.

As previously, men and supply side FMs were more likely to be head-hunted than women and those working in-house. Female FMs were more likely to be made redundant as were client side FMs and those aged 36-45. Supply side FMs were more likely to be Tupe’d than client side and women were far more likely to leave a job because of its location.

As in the past few years a fresh challenge was the main reason given by respondents for joining their current employer (see Chart 19) together with better long-term prospects and better salary and benefits.

When looking for a new job, FM World or fm-world. co.uk (81 per cent), the (internet 73 per cent) and recruitment consultancies (67 per cent) were seen as key sources of news about new roles – over the last few years there has been a definite trend for more facilities professionals to find jobs online rather than through agencies. Local (46 per cent) and national (38 per cent) newspapers also played a key role and 34 per cent of respondents have changed roles after being head-hunted while 31 per cent were directly approached by their employer. Networking at industry events (47 per cent) and word of mouth through contacts made at events, and increasingly online on the BIFM forums and social networking sites such as Facebook, LinkedIn, Twitter and Network with BIFM are also on the rise as ways of securing that next role – reflecting the close-knit nature of our sector.

In association with Catch 22

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CHART 18 WHY DID YOU LEAVE YOUR LAST EMPLOYER ?

Lack of career opportunity – 21% Redundancy – 16% Head-hunted – 13% Merger/acquisition - 11% Other – 10% Moving away/location – 7% Lack of management support – 5% Unhappy with pay and benefits – 5% Perception of job security – 4% Level of workload/stress – 3% Retirement – 2% No communication/involvement in company – 2% Left to look after family – 1% Bankruptcy of organisation – 1%

CHART 19 WHAT WAS THE MAIN REASON FOR JOINING YOUR CURRENT EMPLOYER?

Fresh challenge – 28% Was unemployed – 15% Better long-term prospects – 14% Senior position – 11% Better salary benefits – 10% Merger/acquisition of employer or Tupe’d across from previous employer – 9% The company had a good reputation – 7% The job was in more convenient location – 5% Employer decided to outsource FM – 1%

FM WORLD | 2011 | 17

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FM RESEARCH SALARY SURVEY

CHART 20 BACKGROUND BEFORE FM – MALE

Building services/engineering – 21% Armed forces – 13% Construction – 10% Office manager/admin – 7% Property – 5% Soft services such as catering or security – 4% Hotel and leisure – 4% Retail - 3% This is my first job after leaving full-time education – 3% IT services – 3% Civil service including prison service – 3% Customer services – 3% Purchasing – 2% Accounts/finance – 2% Sales and marketing – 2% Other – 13%

CHART 21 BACKGROUND BEFORE FM – FEMALE

Office manager/admin – 42% IT services – 7% Customer services – 7% Hotel and leisure - 6% Property – 5% Soft services such as catering or security – 4% Accounts/finance – 3% This is my first job after leaving full-time education – 3% Armed forces – 3% Civil service including prison service – 3% Retail - 3% Construction – 2% Sales and marketing – 1% Building services/engineering – 1% Other – 13%

18 | 2011 | FM WORLD

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Background and education There remains two key routes into FM for today’s facilities professional: building services/engineering (15 per cent) and office management/administration (17 per cent). The armed forces (10 per cent), construction (8 per cent), hotel and leisure (5 per cent), property (5 per cent) customer services (4 per cent) soft services such as cleaning and catering (4 per cent) are also key feeders. The level of people coming straight into facilities management from full-time education has fallen slightly from 4 per cent last year to 3 per cent this year, perhaps as a result of the number of graduate vacancies and apprentice-type roles declining because of the recession.

Other respondents cited feeder careers as diverse as textile engineering, laboratory work, milk production, hairdresser, courier and the aviation industry.

As in previous years, there is a major difference in how men and women enter the profession and also the backgrounds of those ending up client or supplier side.

Women tend to enter FM through office management (42 per cent), IT (7 per cent), customer services (7 per cent) and hotel/leisure (7 per cent), see Charts 20 and 21), whereas men tend to come from building services/ engineering (21 per cent), the military (13 per cent), construction (10 per cent) and office management/ administration (7 per cent).

Facilities professionals working client side were almost three times as likely to have a background in office administration than their supply side counterparts (22 per cent against 8 per cent) who were more likely to have a background in building services/engineering (18 per cent against 14 per cent). Armed forces, office management, construction and customer services were key feeder sectors for supply side FMs. As in the past few years the results indicate a wellqualified sector, but in more vocational than academic courses. Almost half had the IOSH qualification and 34 per cent Nebosh, while 27 per cent had first degrees (7 per cent in an FM-related discipline). More than 20 per cent had a Masters degree or post graduate diploma (of which 14 per cent was in facilities management). The BIFM suite of qualifications was also popular with 11 per cent holding the former BIFM Qual and 8 per cent studying for the BIFM Levels 4, 5 and 6 qualifications.

And it pays to be well-qualified in FM. Comparing the financial reward and career prospects of those with a post-graduate qualification and those without, it is clear that it is financially beneficial to take post-graduate qualifications such as MSCs in facilities management and the BIFM qualifications. Those working supply side with a post-grad qualification tended to earn higher salaries; they were also more likely to be promoted and receive higher bonuses. The figures for client side FMs are similar. Facilities professionals with post-graduate qualifications also received higher bonuses.

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BUILDING

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We believe that strong relationships are built on trust and confidence in the ability to deliver on promises.

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