Summer 2022 UK Market Report
People focus
The latest analysis from the Construction Skills Network shows that construction needs another 266,000 workers by 2026 — 53,200 workers per year — to meet demand. The increased numbers will be required across the UK, with the most affected sectors being private housing, infrastructure and repair and maintenance.
With job vacancies reaching record highs coming out of COVID-19, the recruitment and development of a highly skilled workforce are likely to be the most significant challenges that construction will face in the next few years.
Large pipelines of work are forecast to help support the transition to net zero carbon and defence and energy security. Therefore, focus across the industry is on attracting and retaining talent; clients, consultants, contractors and their supply chain will all be looking for people.
The high demand had led to much movement in the industry. Pent-up demand where people were less likely to move due to the COVID-19 pandemic also contributed.
Recently, there has been the suggestion of some caution in the market due to the worsening wider economic outlook.
Of respondents to our survey, 35% said they were “certain” or “very likely” to look for a new job or ask for a pay rise in the foreseeable future — compared with 50% that said they were “unlikely” or “very unlikely”.
Like our Summer 2021 survey, respondents ranked base pay and wellbeing initiatives as most attractive to people considering a new role.
Out of the survey respondents, 71% considered base pay to be the most important factor to people looking for a new role, up from 69% in our Summer 2021 survey.
Wellbeing initiatives, such as flexible working practices, remain essential following the pandemic, with people wanting to have more control over where, when and how they work.
Survey comments recognised that people would have differing priorities and objectives for their career, as well as different lifestyle needs. However, it was felt that currently, the cost of living had a particular influence, with candidates looking for higher salaries and packages.
This was also reflected in the responses regarding taking a sabbatical — people were positive about the idea but concerned about the cost and implications of doing so.
Sabbaticals have been rising in popularity in other industries and regions such as the US, as COVID-19 prompted reassessment of work commitments, with employees prioritising work/life balance over career progression.
Many companies are renewing efforts to improve staff retention in the competitive job market. Monzo recently announced that it would offer employees a paid three-month sabbatical after they’ve worked at the bank for four years.
Its people experience director, Tara Ryan, said that the aim is to allow employees to take time out to travel, spend time with families and focus on themselves without having to leave the company or sacrifice pay.
Increases in base pay were generally expected by respondents to our survey to combat the cost of living crisis.
Over 60% of respondents expect a pay rise, with the majority envisaging in the 3–6% range.
Nearly 30% of survey respondents said they have the authority to adjust salaries and grant promotions within their company.
Of these, nearly nine in ten expect to give their employees a pay rise — with the majority expecting to grant a 3–6% pay rise.
Attracting new entrants is also vital to meet demand. Figures for apprenticeship starts in the construction sector showed tentative signs of a bounce-back following the pandemic.
Department for Education figures show that 20,500 apprenticeships began between August 2021 and January 2022, compared with 16,100 over the same period in 2019/20 and 13,100 in 2020/21.
Just 25% of students in construction-related training go on to careers in the industry. As well as increasing apprenticeships, work is required to help the transition from education to employment.
It is also important for the industry to improve productivity, to ensure the best use of resources. Measures like those identified below will help with this:
Using digital modelling and analysing of emerging designs \ making design time more efficient and focused.
Applying machine learning to find the best design \ helping to highlight mistakes or omissions in a design.
Optimising design for modern methods of construction (MMC) \ improved quality and performance, factory work attracts different workers.
Embracing data and insights \ better decision-making and understanding of project performance — resources can be prioritised to improve outcomes.
Utilising robotics \ to help reduce onsite labour requirements and undertake tasks in extreme and challenging environments.
