2019 Salary Survey: Learnings
To know the Truth, Bypass Politicians
Brexit: Why the Salary Survey Matters
How 2018 Turned Out for Professionals?
- 64% of respondents received a base salary increase
- The average base salary was £55,799
- 58% of respondents reported receiving a bonus/commission
- The average bonus was £14,846
- When compared to our survey results in 2017, we see that in two years:
- The average salary has increased by £3,437, or 6.6%
- The average bonus has increased by £1,282, or 9.5%
- The percentage receiving a bonus/commission has increased from 45%
- Employer pension scheme (received by 74% of property professionals)
- Professional membership fees paid (66%)
- Working from home (46%)
- Car allowance (38%)
- Critical illness/Life cover (37%)
- Flexible hours (35%)
The Future, How Could Brexit Affect Real Estate Professionals?
- 57% think their company’s revenue will increase, with 4% thinking the increase will be significant
- 12% believe that their company’s revenue will decrease, with just 1% believing a significant decrease is likely
- 40% believe there will be an increase in business opportunities
- 62% believe there will be no change in the number of offices/locations in which their company operates
- 23% believe there will be a decrease and 15% believe there will be an increase
Outlook: What Professionals Think
Professionals are most negative about the prospects for their sector when the outlook is connected to Brexit. Almost half (45%) feel that Brexit is bad news for their sector, with 13% expecting a very negative effect.
Only 9% feel that Brexit will be positive or very positive.
Asked about the effect on their employer, again more than half (53%) feel Brexit will have no effect. Only 9% feel that Brexit will have a positive effect.
On the face of it, the survey appears to contain several startling contradictions. On the one hand, property professionals expect their companies to increase revenues, permanent hiring, and investment in technology and development of people. This bullish outlook is presumably predicated on the increase in business opportunities forecast by four in 10 property professionals.
Clearly, when the B-word isn’t mentioned, property professionals appear mostly positive about the future. When it is mentioned, responses turn sour. There are two reasons this may be:
- Media headlines surrounding Brexit are clouding judgement, with Brexit now automatically linked to worsening prospects
- Professionals believe that Brexit will have a dampening effect on an otherwise robust and buoyant industry
Whichever it is, the conclusion to draw is that Brexit, if it happens, is likely to be less negatively impactful on the property and construction industry than the gloomiest predictions – perhaps somewhere between the bullish non-Brexit views and bearish Brexit views of property professionals surveyed. Indeed, if Brexit should have less impact than forecast on the wider economy, then the property sector could produce even more positive results than the most positive views of property professionals as provided in the 2019 RICS and Macdonald & Co. Rewards and Attitudes Survey.
What Employers Should Be Watching Through Brexit
It is natural that employers will be cautious as we approach and pass through the UK’s EU exit. Economic uncertainty dictates that it should be so. However, should the actual outcome of Brexit be less severe than anticipated by the economic experts (who don’t have a very successful track record), or, dare we say it, even positive for the economy in the medium to long term, then any hesitance in the market is likely to dissipate very quickly.
The views of property professionals – that business opportunities will increase and lead to further investment and increasing revenues – may be more correct than the bearishness of those same professionals when Brexit is mentioned. In such a scenario, it is likely that companies will seek to hire talented staff to bolster their operations. Could it be that the 37% of property professionals who say they are likely or very likely to move jobs in the next 12 months will execute on this promise?
Companies may be best advised to refocus their attention away from Brexit and toward what may become the big issue of 2019 in the property and construction industry: why is it that so many talented property professionals are considering a move away from you and to a competitor?
For the answers to this question and to discuss Brexit hiring strategies (whatever the outcome), contact your sector specialist recruitment team at Macdonald & Company today, and learn the reasons your best people told us they may be looking for a new position this year.