The Federation of Master Builders has recorded rising salaries in the SME Building Sector, with over half of SME firms reporting they expect salaries to rise over the next six months. This is a trend that Contract Scotland are starting to notice and many of the points raised in the article are factors to this.
SME builders in Scotland appear to see market improvements, with no shortage of work available for the foreseeable future, however as bright as that future may look, many businesses are concerned that they will not have the capacity to complete these projects owing to major skill shortages and worry over staff retention. The result of not having enough skilled management staff coming into the industry quick enough is salary increases for those already at a level hiring managers seek.
I have been working closely with my clients to understand their management structure, salary and benefits packages and predicted workloads to establish a way for them to combat the issues they will face over the coming months when looking to recruit. Now there is no easy answer; put the salaries up for new starts at the risk of upsetting your project margins and current employees, or take on less qualified/experienced individuals at the risk of not having the resource to train and develop these individuals. Unfortunately, we no longer live in an era where supply outweighs demand, so investing in the future of your business through a number of small initiates may be the sensible way to achieve business growth. Contract Scotland understands the Scottish construction market, we have already been looking at these initiatives for a number of months, through international recruitment, social enterprise scheme (Constructing Futures) and recording/publishing up to date salary information specific to the Scottish region.
Our latest salary survey has just been published, please find your free copy via our website.
If you are an employer looking to understand the impact of these skill shortages, specific for your business, please get in contact for an honest appraisal of the market, best of all that chat is not going to cost you anything, which is definitely a rarity in construction!