FM salaries to increase as skills shortage inflates expectation

More FM professionals to receive a pay rise this financial year than last, with skills shortages creating a “once-in-a-career market”.

More facilities management professionals will receive a pay rise this coming financial year than last, with skills shortages creating a “once-in-a-career market”, according to recruiting firm, Hays Facilities Management.

The FY22-23 Hays Salary Guide, released today, found 82 per cent of employers will increase salaries for facilities management staff in their next review, up from 52 per cent last year.

Of these, 18 per cent intend to raise salaries by over three per cent, while 64 per cent will increase salaries by less than three per cent.

According to Hays Facilities Management, 59 per cent of employers say the skills shortage has forced them to offer higher salaries than otherwise planned.

Professionals say they deserve more

For their part, 76 per cent of the FM professionals Hays also spoke to say their performance and the demand for their skills merits an increase greater than three per cent.

Over half (52 per cent) say the skills shortage has made them more confident to ask for a pay rise and 61 per cent have already benefited from the skills shortage through a salary increase, new job or both.

Despite this, only 23 per cent are satisfied with their current salary. Meanwhile, an uncompetitive salary is the top factor motivating 57 per cent of job searches. It ranks ahead of poor benefits and negative mental health and wellbeing impacts.

Skills shortage impacts salaries

“Intense competition for skilled professionals will translate into gradual salary increases this coming financial year,” says Austin Blackburne, regional director of Hays Facilities Management.

“Moving away from the salary stability stance of recent years, employers say the skills shortage is the reason increases are higher than planned. Already 90 per cent are experiencing a skills shortage.

“This is fuelling a once-in-a-career market. Previously camouflaged by skilled migration, and further impacted by headcount growth, skills shortages have reached a level unmatched in our years in recruitment and sparked deliberate salary increases from employers.

“However, while both the value and extent of salary increases is rising, employees’ expectations are growing faster. In a job-rich, candidate-poor market, they feel more assured of their worth and have prioritised a pay rise.

“In such a market, the number one question we’re asked by employers is how to stand out as their preferred candidate’s first choice.”

Hays’s answer is a “new equation” for employers to follow.

As Blackburne explains, “We suggest that today’s skills shortage presents an opportunity to define a new equation in the world of work. Salary increase budgets only extend so far, so consider the full value exchange for each role. Along with salary, consider benefits, upskilling, career progression, purpose, and the relationship employers have with their employees.”

Other key findings:

  • The top five skills in demand in facilities management:
    1. Facilities managers
    2. Facilities coordinators
    3. Maintenance managers
    4. Asset managers
    5. Project managers
  • Benefits can attract candidates: Just 5 per cent of employers have improved benefits and working practices to entice more FM staff. The top three benefits sought by FM professionals are a company car, car allowance or onsite parking, training (either internal or external) and over 20 days’ annual leave.
  • Hiring intentions rise: 45 per cent of employers intend to increase FM staff levels in FY22/23.

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