In an uncertain market, should you be looking to change jobs? Henry Taylor, head of property recruitment at Osborne Richardson, says there are still good opportunities – and pay rises – for experienced professionals. But those just starting out may need different tactics
Unsurprisingly, one of the most frequently asked questions for any recruitment consultant is whether or not now is a good time to move jobs. However, in the months following the EU referendum I have been asked it on an almost hourly basis. These are some of the factors to be considered:
What is the jobs market like?
The general tone is one of cautious positivity. There are still plenty of good jobs available. However, there have been very few candidates actively looking to move, meaning that demand for top talent has been extremely high, putting candidates with experience in an excellent position to receive multiple offers.
Feedback suggests that Brexit has so far had limited impact on business and the vast majority of our clients are looking for, or are open to, taking on new talent, albeit with a more careful approach.
Data from the Office for National Statistics shows that in April to June this year the unemployment rate fell to 4.9%, the lowest level since October 2005, and wages, excluding bonuses, rose by 2.3%. While this appears to be good news and shows a strong market, the data does not cover any information post-referendum, which, when released, will give a stronger indication of the market.
This positive data was certainly reflected in the property market leading up to the referendum, with plenty of good jobs on offer.
In addition, recent research from the Chartered Institute of Personnel and Development states that 36% of firms (across all industries) anticipate increasing headcount over the next three months, which is only 10% down on figures prior to the EU vote.
Will salaries be affected?
In May, a strong candidate would have expected to achieve a significant pay rise. Our statistics showed that salaries for planners, surveyors and commercial agents increased by 16% compared with those of March 2015. Candidates with four to eight years’ industry experience led the way, achieving 20-25% pay increases. Because so few people secured graduate placements during the last recession, there is now a lack of high-quality candidates at this level, particularly in general practice surveying, planning and quantity surveying.
While there has been little evidence to suggest salaries are decreasing following Brexit, research shows that people employed during a recession or times of uncertainty will earn 9% less than those who worked during normal periods of economic growth. This has a knock-on effect lasting up to 10 years because in times of insecurity people will accept lower-than-desired salaries in order to have a secure job.
Notwithstanding this research, our view is that we are not in recession and if you have not moved jobs in the past 12-plus months, should you be offered a new role, it is likely to be a double-digit percentage increase on your current salary package.
Is loyalty rewarded?
Contrary to popular belief, loyalty is not rewarded. According to Forbes, employees who stay in jobs for more than two years regularly earn up to 50% less than if they were to move. This is based on a 10-year period with average annual pay rises of 2-4%, compared with the 10-20% salary hikes people receive when moving jobs every 18-24 months.
My recruitment experience completely corroborates this. It is incredible how often I see long-serving and highly impressive candidates with salaries vastly under that of their market value and it is only when such an employee hands in his or her notice that the employer might make an improved counter offer. But don’t be fooled, a counter offer can often just be the employer protecting their own interests.
Is now a good time to move?
Yes it is. While the Bank of England is suggesting that unemployment figures will rise in 2017 and 2018, I am optimistic that the property sector will continue to employ talented and ambitious people, albeit at a slower rate than before.
The fundamental driving factors of supply and demand still support this. Demand for new homes and property is still very high, with supply still woefully short of where it needs to be. This will keep the property and construction industries busy for the next 10 years and beyond. Most property companies are still actively looking for top talent and there certainly remains a severe shortage of eligible candidates.
What impact does experience level have on recruitment?
University graduates: There are very few vacancies for graduates. I am concerned that, as we saw in the most recent recession, there will be fewer graduates gaining employment. This will ultimately have a knock-on effect in three to five years’ time, when there is yet again a shortage of suitable MRTPI- or RICS-qualified candidates.
It should be graduates’ priority to gain experience. Therefore, I would advise them to accept roles even if they fall slightly short of their expectations (whether that is in terms of salary, location, size of company, etc).
Assistant planners and surveyors (not yet RTPI or RICS): I would always advise waiting for at least 12 months before changing roles. However, given the current market, I would recommend assistants to stay put until they have become chartered. Qualified planners and surveyors are far more sought after and as such are able to achieve a higher salary than those who move to a new firm and become chartered there. However, if moving is absolutely essential, I would still be confident of finding a suitable opportunity.
Planners, senior planners and associates (qualified RTPI or RICS): As highlighted earlier, there is a massive shortage of qualified planners and surveyors with four-to-eight years’ experience. As such, a candidate at this level will be highly desirable to our clients and they should be able to achieve a pay increase of 20-25%.
Directors: Most consultancies are top-heavy, with the majority having more directors than graduates. That being said, there will always be an appetite for directors who can bring clients with them and generate sufficient fees to cover their salaries and associated expenses.
Director-level hires are very expensive and as a result, in this cautious market, there will be less enthusiasm to take on such costs. This indicates that any job offers are likely to be lower than those associated with a stable or booming market. I would, then, suggest waiting a few months to see how the market reacts as more data is released in the wake of the Brexit vote.
