There is good news for those in the construction industry – salaries are expected to rise by 5% in 2023. This will help counter inflation and ensure that construction leaders and workers continue to be fairly compensated for their work.
Eckler Ltd. made this prediction, reporting that the construction industry will see increases of 5.1% in salaries.
In comparison, the average increase in base salary for 2023 is expected to be 4.2%. So, the construction sector will likely have a larger increase than the overall average.
On top of that, the report showed that just 1% of organizations were planning a salary freeze in 2023.
Similar Results in Other Surveys
A fairly recent survey from Willis Towers Watson also showed similar results. The said report found plans to increase salaries by an average of 4% in 2023. This average was for all sectors and would be the largest increase since 2008.
- Another survey by the same organization found that 86% of organizations were hiring employees at higher salary ranges.
- Additionally, 31% said they were thinking about adjusting salaries more frequently.
Both of these surveys examined all sectors, including construction.
Growing Pay Transparency
Along with the increase in salaries, we are also seeing an increase in pay transparency in the construction sector and the market overall. A survey earlier in the year said that over half of employers “always” list salary ranges in their job postings.
What It Means for You
As someone working in the construction industry, you should expect your wages to increase in 2023. If your employer doesn’t reevaluate your salary and offer you an increase, you will be well-positioned to ask them to do so.
You can easily gather a wealth of data showing salary increases in the industry and that your pay is no longer competitive. This rise in wages also empowers construction workers to leave jobs that don’t offer competitive pay.
What It Means for Construction Firms
Therefore, construction firms must make sure to offer fair compensation with an increased salary. Otherwise, as a firm, you will have trouble attracting and retaining talent.
Remember that data consistently shows that your employees are more likely to stay with your construction firm if they are satisfied with their salary and the other facets of their compensation.
Construction salaries are expected to rise by about 5% in 2023. This will help construction workers keep up with inflation. If your employer doesn’t increase your salary, you should make a case for an increase or consider looking for a new job. If you own a construction company, you must ensure you offer a competitive salary with the appropriate increase to maintain your talent pool.