How has the skills shortage impacted the industry

This week has been quite fulfilling. I always like completing a project as it is when you really appreciate all the hard work that has gone into something. I’ve worked with Harworth Estates for a number of years and to see it being brought back to the listed market just shows the strength of the business. Whether talking with the guys at Harworth or a few others this week one thing that is noted is the skills shortage.

Each year a survey is performed on the industry and the 2014 survey by Hays highlights a few topical areas

·         Salary growth (up 5.25%)

 I come on to the skills shortage later so it is no surprise that salary growth is occuring. If anything 5.25% feels low. Looking at the key areas of growth it is structual engineers which lead the way – this is not necessarily a niche area. In reality I don’t think there necessarily has been any significant pay increases but what you are seeing is businesses hiring and to recruit the best you have to pay more than you would ordinarily. Employees are wise to this in making career decisions and employers are also wise in investing to either keep staff or paying more to bring them in.

 

·         Skills (84% of employers think they will have a shortage)

 

The industry is moving in the right direction but with this brings challenges, can you recruit fast enough to feed the demand. Nothing worse than taking on work and then not delivering due to insufficient staffing. From talking to a business last week they had suffered 20% pay increases to assemble a team on a project – certainly doesn’t help the bottom line but how can you plan better. The industry should look to graduate programmes and bring people in earlier on, treat them well and develop them through the firm. This is a longer term fix but is more cost effective. In the shorter and medium term look at your growth and the sectors you operate in. What is it telling you? If growth looks likely or big projects are potentially there then look to recruit or to meet short term deman bring in temporary/interim staff.

 

·         Benefits all around

It was interesting to read that only 36% of employees asked for a payrise yet 84% are considering moving. Is it not logical to seek a payrise (where you feel there is a valid reason). A lot of businesses are looking at alternative ways to reward employees from share options through to better training. Remember it is not always about the money but the career. Do they see a future in the firm? Are you nurturing them or running them into the ground?

I think above all there is a general consensus that employees are key in the construction sector and one project can employee a number of different skills. By working with your employees to understand their needs can reap benefits and help the bottom line. Consider holding focus groups, anonymous surveys or one to one discussions to really get to the bottom of the issue and this should reduce the need for throwing too much money at the situation.

Feel free to contact me 0113 288 2276 or lee.a.wilkinson@uk.pwc.com if you wish to discuss this blog or anything relevant to property and construction.

Enjoy the weekend

Lee

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