Building industry salaries to rise

Building industry salaries to rise as cautious optimism prevails

Over half (55 per cent) of New Zealand’s building industry employers will increase their workforces’ salaries by up to five per cent in their next review, according to the 2018 Hays Construction & NZIOB (New Zealand Institute of Building) Salary Guide.

Released today, the Guide reveals salary and recruiting trends for New Zealand’s building industry. It found that a further 18 per cent of organisations surveyed intend to offer increases of five per cent or more.

The Guide also shows that the construction sector has experienced good growth over the past year, with 53 per cent of employers reporting increased business activity.

Looking ahead, the industry remains cautiously optimistic with almost half (49 per cent) of employers intending to increase permanent headcount over the coming year. 24 per cent will increase their use of temporary and contract workers.

Unsurprisingly skill shortages are evident, with Construction Managers, Senior Managers, Project Engineers, Project Managers and Estimators in greatest demand.

Jason Walker, Managing Director of Hays in New Zealand, said: “The main finding of this year’s Guide is, without doubt, the distinct differences in salaries across the regions compared with New Zealand’s main centres. This is the result of the unique challenges each location faces and whether or not additional government infrastructure and commercial or large residential housing investment has been promised.

“Simply put, it’s a matter of supply and demand.”

Malcolm Fleming, Chief Executive Officer of NZIOB, said: “The general trend in salaries on a national basis is upwards, but there are many nuances in play. While there remains a difference in remuneration for a construction practitioner working in smaller companies when compared to their counterparts in larger environments, the gap is closing. Likewise, remuneration has increased in regions that have been targeted by the Government for substantive construction spend such as Northland, as opposed to regions such as Otago where remuneration has reduced across the board.”

Other findings from the 2018 Hays Construction & NZIOB Salary Guide include:

The most popular benefits offered are a mobile phone and vehicle;
57 per cent of employers use contract staff for management positions, while 64 per cent use them for labour positions;
For 77 per cent of organisations the typical working week is between 40 and 49 hours;
19 per cent of the building industry workforce is female;
46 per cent of staff stay with an employer for between three and five years, with another 29 per cent remaining for six to 10 years.
The 2018 Hays Construction & NZIOB Salary Guide covers trends for 17 typical roles in 12 different locations across New Zealand, as well as typical salaries by project size, construction type, and annual turnover. The Salary Guide is available at www.hays.net.nz/nziob

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