This is an exciting time in the world of construction. Real estate markets around the nation have recovered from the housing crash. Homeowners are selling, buyers are buying, and new construction projects (both residential and non-residential) are on the rise. With the rapid turnaround over the past few years, many Construction General Contractors are reevaluating their construction salaries.
Overcoming The Highest Industry Unemployment Rates Since The Great Depression
Unemployment rates play a driving factor in the salaries for any industry. If you have been keeping an eye on the data available from the Bureau of Labor Statistics, you will see that construction unemployment is at 8.4% as of March 2017, from a high of 24.9% in March of 2010. The improvement has been gradual, and sometimes a bit of a yo-yo, but has remained under 9.5% since March of 2015.
Why You May Need To Reevaluate Your Construction Salaries
Understandably so, many construction professionals left the industry between 2008 and 2011. Those who remained in the industry often took pay cuts and worked side jobs in addition to their full-time job to make ends meet. In the meantime, not all construction salaries have caught up with the increasing costs of living. With the rebirth of real estate, the need for qualified construction management has quickly become competitive. While salary is certainly not the only driving factor, it certainly plays a crucial role in the decision to stay with an employer—or explore other options.
How To Evaluate Construction Management Salaries?
As one of the Leading Construction Recruitment Firms in the nation, The Birmingham Group recruits and interviews in excess of 300 construction professionals on a weekly basis, predominately for multi-million dollar projects. There are many factors that contribute to the salary you provide your construction management, some of the most pressing being:
- Geographic location
- Local economy and/or local real estate market
- Size, scale, budget, and complexity of project
- Residential vs. non-residential location
- Job responsibilities, number of projects being managed
- Tenure, experience, and track record of success
- Competitor salaries
With so many factors to consider, it can be a bit overwhelming to determine how competitive your salaries are. However, if you do not balance the need for an optimal company culture with competitive salary and benefits—you may not be able to retain your top talent.
What Should YOU Do When a Manager Gives Notice?
According to research gathered by the Center for American Progress, recruiting, training, and waiting-out the learning curve for high-level management and executive positions costs between 20 and 213 percent of their current salary. So, while a significant pay increase may seem as though it will negatively impact your labor line, losing an employee due primarily to a higher salary will negatively impact other areas of your PNL. Even if you decide not to move forward with raises, have a contingency plan in place in case a key team member gives notice.
The information above is designed to improve your salary structure, and assist with making smart staffing and retention solutions. As always, The Birmingham Group is here to assist when you are in need of top construction talent.
Are Your Salaries Competitive? Get Our Construction Salary Survey.
This is an exciting time in the world of construction. With this rapid turnaround over the past few years, many Construction General Contractors are being forced to reevaluate their construction salaries to stay competitive. We have compiled data from 4600+ individual construction management interviews performed by our staff.
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