Six in 10 U.S. employees didn’t negotiate their salaries during their last job offers and lost out on earning $7,500 more per year. When staffing firm Robert Half surveyed more than 2,700 workers across 27 major U.S. cities, a mere 39 percent said that they negotiated their last job offer’s salary. Subsequent research from Glassdoor found that the average U.S. employee could be earning 13.3 percent more per year than their current base salary if they had negotiated.
But if you’re a construction leader looking to hire talent in your small business, you shouldn’t assume that candidates don’t know their worth: The financial odds are in their favor.
According to the Bureau of Labor Statistics, employment of construction managers is expected to grow faster than average for all occupations. The construction sector added 210,000 jobs throughout 2017- a 35 percent increase over 2016. And increased spending hit a record high of $1,257 trillion in November 2017.
Despite this projected growth, hiring talent is a huge problem. Last year, Gartner surveyed 127 construction leaders of small and midsize businesses (SMBs). When asked for the most significant external factors shaping their organizations’ business goals, 46 percent said that availability of skilled workers was top-of-mind.
As spending on construction hit record highs last year, just 190,000 new workers entered the U.S. construction industry in 2017. After a prior three-year average of 284,000 annual additions, this downturn left construction leaders concerned.
The industry’s talent shortage is so bad that the National Association of Realtors plans to appeal Congress for temporary visas to recruit talent from abroad. That means employers must work harder to attract talent with more competitive salaries, benefits and work environments. It also means that construction project managers have a lot of leverage - especially if they’re based in the U.S.
Average salaries are tough to pinpoint across industries. From geography to years of experience, numerous factors impact what you’ll earn. But whether your applicants are seasoned construction project managers or plan to pivot into this sector, they expect to command high earnings.
Last year, the Project Management Institute (PMI) published the 10th edition of its Project Management Salary Survey. It’s an eye-watering 318 pages long, but the full report is a treasure trove of data. That’s why GetApp reviewed the data from their sample of 10,937 project managers who work in the U.S.
We pulled the most crucial details from the PMI’s survey that you should know before you hire talent. Whether you need the average construction management salary based on industry or experience with project management methods, we’ve got your back.
So, read our infographic and go get the talent your small business deserves! (Note: All numbers below reference the U.S. job market and U.S. dollars.)
As the numbers above show, construction managers are in high demand, especially if they have strong project management skills. The construction sector is growing at a time when skilled talent is waning; qualified candidates have every reason to hold their heads high at the negotiating table.
If you want to hire them for your own construction business, you’ll need to know what they’re worth. Then, you must reward them with strong salary offers and growth opportunities.
It can cost businesses six to nine months of an employee’s salary to find and train a replacement and construction is an industry with one of the highest turnover rates.
If you invest in them upfront and over time, you’ll have an unbeatable edge. These secret weapons will help you beat competitors who can’t hire or retain top talent.
Before you interview your next candidate, remember:
Construction managers with Bachelor's degrees in construction science, construction management, or civil engineering have the best job prospects ...
...but the annual median salary for almost every construction management role surpasses six figures .
70 percent of the PMI's survey respondents said their total compensation had increased within the 12 months prior to taking the survey...
...so, emphasize your company's commitment to training and promoting awesome employees.
Along with job growth and talent shortages, the construction sector has long suffered from poor productivity. McKinsey research found that large projects across asset classes often run up to 80 percent over budget. In some markets, construction productivity has declined since the 1990s.
Of course, one new hire can’t fix all of these problems. But if a construction project manager is ready, willing, and able to contribute, there’s a literal wealth of jobs for them. Make sure they choose one in your own small business.