2012 Salary and Market Insight Report - The Engineer

theengineer.co.uk

2012 Salary and Market Insight Report - The Engineer

2012 Salary and

Market Insight Report


Market update

The past 12 months have proved challenging for UK

engineering and manufacturing; we have seen output

edge up one month only to see it decline the next,

margins continue to be squeezed by increases in raw

material prices and fi erce price cutting by retailers.

Commenting on the current situation, Ian McCafferty,

CBI chief economic adviser, made the cautious statement:

“ Conditions in the UK

manufacturing sector remain

diffi cult, with demand both at

home and abroad subdued. The

weaker export performance no

doubt refl ects ongoing instability in

the euro area, our biggest export

market, and its knock-on impact on

prospects for the real economy. ”

This salary and market insight report gives an overview

of salary fi gures in the sector during the past year,

while our questionnaire results help us look forward

and anticipate some of the hiring trends over the next

12 months. While economic uncertainty still exists, there

are some notable positive indicators for the year ahead.

Demand for skills

Despite market conditions, the demand for engineering

and manufacturing professionals remains high.

In particular, the areas of continuous improvement,

process engineering and senior production personnel

have all been in high demand in order to facilitate the

production of goods and to drive productivity.

Demand for quality engineers and managers has

remained stable, particularly across automotive and

industrial manufacturing. These two sectors alone have

accounted for 55% of all quality jobs fi lled by Michael

Page Engineering & Manufacturing in the past

12 months.

There has also been high demand for mechanical and

electrical engineers with project experience, as fi rms

begin to consolidate manufacturing operations and

increase capital investment as improved manufacturing

processes are sought.

The demand for top talent remains as competitive as

ever. We have seen a big increase in the instance of

companies attempting to retain their top talent, with

‘buy backs’ being a particular feature over the last

12 months. Average salary increases of 5-10% when

moving jobs have, on occasion, not been enough to

convince candidates to move companies when their

current employer has come back with a better offer.

Michael Page Engineering & Manufacturing 2


Survey results

Overview

Our clients completed a questionnaire to help give us an insight into the projected employment trends for 2012 and the

majority predicted an increase in headcount within the next 12 months. There’s good news on the salary front too, with a

huge 77% of respondents claiming that salaries and bonuses will rise over the coming year. In diffi cult economic times,

it’s heartening to see such confi dence from some of the sector’s leading companies.

In addition, 87.6% of employers in the sector claim that aligned values outrank pure technical ability when making hiring

decisions. This comes as no surprise to us here at Michael Page, as we continue to take every measure to ensure we fully

understand the ethos and needs of our clients to fi nd a successful candidate match.

1. How do you expect your employee numbers to

change over the next 12 months?

Highlighting increased confi dence in the sector, over half

of respondents foresee a boost in hiring over the coming

year. Many see employee levels remaining consistent,

while only 16.8% anticipate a decrease in headcount.

In line with this we have also witnessed an increase

in hiring confi dence in our clients, particularly in the

renewables, health & safety and food & drink sectors.

2. Do you expect to pay bonuses or salary

increases in the next 12 months?

Again, indicating a positive outlook against economic

uncertainty, an overwhelming majority of respondents

anticipate salary and bonus increases throughout 2012.

Increase Decrease

Remain the same

Michael Page Engineering & Manufacturing 3

28.9%

15.8%

16.7%

7%

Yes No

54.4%

77.2%

Don’t Know


Survey results

3. Would you rather hire the most technically

capable candidate or the candidate who is best

aligned to the team’s values?

As a leading recruiter, we’ve always believed in the

importance of aligning client’s and candidate’s values,

in order to create successful partnerships. As confi rmed

by the statistics, a huge majority of our respondents

agree with us. Of course there will always be a minimum

technical ability required in order to qualify for interview,

but many respondents would consider offering additional

training to a candidate who best refl ects the team’s values.

In this scenario the salary offered would usually refl ect the

additional investment in training required, in order to get

the candidate’s technical capability to the desired level.

4. How do you go about attracting the top talent to

your business?

Over half of the respondents said that they use their

relationship with a recruitment agency to attract top talent.

A large percentage also claimed that advertising was a

useful tool in securing the best candidates. As we’ve seen

with many clients over the years, a bespoke advertising

campaign through relevant, niche channels can often be

the best way to attract the top applicants.

5. What’s the most important retention strategy

for your business?

Perhaps surprisingly, salary growth is not the

frontrunner in retaining talent. As the statistics suggest,

promotion opportunities and a robust benefi ts package

are currently considered the most effective incentives

in employee retention. It is likely that over the last

12 months promotions have been the driving factor in

salary increases. Companies are generally only offering

larger scale pay increases in order to retain skill sets.

The most technically capable candidate

The candidate who is most aligned with your teams values

Michael Page Engineering & Manufacturing 4

9%

23%

52%

88%

8%

12%

15% 21%

32%

30%

10%

Advertising Employer branding

Relationship with agency Other

Salary increases Promotion opportunities

Flexible working Benefi ts packages

Transparent communication strategy


Salaries: FMCG

FMCG salaries include food, pharmaceutical, health care, chemical, recycling, renewable energy, plastic,

print and packaging sectors.

Area North West North East Yorkshire Midlands South East South West

Size of company small/

med

large small/

med

large small/

med

large small/

med

large small/

med

large small/

med

Salary £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Engineering

Process Engineering

Manager

Health & Safety

Manager

Quality/Technical

Manager

30-40 35-50 30-45 35-50 30-45 35-50 30-45 35-55 40-50 45-55 30-45 40-50

30-45 40-85 30-45 40-65 30-45 40-70 30-45 40-70 35-45 45-85 30-45 40-65

30-45 40-100 30-40 35-70 30-45 35-70 30-40 35-70 35-45 45-100 30-40 35-70

Project Manager 35-45 40-70 30-45 40-60 30-40 40-60 35-45 40-70 35-50 45-85 30-45 40-70

Engineering Manager 35-45 45-100 35-45 45-75 35-45 45-75 35-45 45-100 40-55 50-100 35-45 45-75

Lean/Six Sigma

Specialist

35-50 45-95 35-50 45-90 35-50 45-85 35-50 45-100 35-55 50-120 35-50 40-80

Operations

Operations/

Manufacturing Director*

50-80 65-120 50-70 65-100 50-80 65-100 50-80 65-110 55-80 65-150 50-80 65-110

Operations Manager 40-50 50-70 40-50 40-60 40-50 50-70 40-50 50-70 45-60 55-85 40-50 50-65

Plant Manager 45-60 55-75 45-60 50-75 35-60 55-90 45-60 55-100 45-60 55-110 45-60 55-90

Production Manager 30-45 35-55 30-45 40-55 30-45 35-50 30-45 35-50 30-45 50-65 30-45 35-50

Shift Supervisor 25-35 30-45 25-35 30-45 25-35 30-45 25-35 30-45 30-38 32-45 25-35 30-45

Salaries are exclusive of bonus and incentive schemes. Small to medium companies are defi ned as having a turnover of less than £50 million.

Large companies are defi ned as having a turnover of more than £50 million.

* Salaries at this level can vary widely depending on the individual’s background and experience and the scope of the role. Please contact us for specifi c

advice regarding salaries at the executive level.

Michael Page Engineering & Manufacturing 5

large


Salaries:

Manufacturing/

Industrial

Manufacturing and industrial salaries include automotive, aerospace, electronics, hi-tech and general

manufacturing sectors.

Area North West North East Yorkshire Midlands South East South West

Size of company small/

med

large small/

med

large small/

med

large small/

med

large small/

med

large small/

med

Salary £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Engineering

Process Engineering

Manager

30-40 35-55 30-45 35-55 30-45 35-55 30-45 35-55 40-50 45-60 30-45 40-55

Quality Manager 30-45 45-85 30-40 40-60 30-45 40-70 25-40 40-95 30-45 40-95 25-40 35-85

Project Manager 30-40 35-65 30-40 35-65 35-45 35-70 30-40 35-90 30-45 40-90 30-40 35-65

Engineering Manager 35-45 45-100 35-45 40-75 35-45 40-75 35-45 45-100 40-50 50-100 35-45 45-70

Lean/Six Sigma

Specialist

35-50 40-100 35-50 40-85 35-50 40-85 35-50 40-85 35-55 40-100 35-50 40-80

Operations

Operations/

Manufacturing Director*

50-80 65-120 50-80 60-100 50-80 65-120 50-80 65-130 55-80 65-150 50-80 65-120

Operations Manager 40-50 50-70 40-50 50-70 40-50 50-70 40-50 50-70 40-60 50-75 40-50 50-70

Plant Manager 45-70 55-100 45-60 45-65 45-65 55-90 45-70 55-100 50-65 55-95 50-70 55-100

Production Manager 30-45 35-55 30-45 35-50 30-45 30-50 30-45 30-50 35-50 50-65 30-45 30-50

Shift Supervisor 25-35 30-55 25-35 25-40 25-35 25-40 25-35 25-40 30-38 32-45 25-35 25-40

Health & Safety

Health & Safety

Manager

30-45 40-60 30-40 40-60 30-45 40-60 25-45 40-75 30-45 35-75 25-35 30-60

Salaries are exclusive of bonus and incentive schemes. Small to medium companies are defi ned as having a turnover of less than £50 million.

Large companies are defi ned as having a turnover of more than £50 million.

* Salaries at this level can vary widely depending on the individual’s background and experience and the scope of the role. Please contact us for specifi c

advice regarding salaries at the executive level.

Michael Page Engineering & Manufacturing 6

large


ROUND-UP

As with all areas of the UK economy, the past year

has seen continued economic uncertainty and has

proved a diffi cult year for growth in the engineering

and manufacturing sector. Despite this, demand for

engineering and manufacturing professionals remains

high particularly within roles designed to improve

productivity including continuous improvement,

process engineering and senior level production

personnel. Certain sectors have also proved more

resilient than others, with food and drink remaining

the star performer and also considerable demand

for ‘quality’ specialists within the automotive and

the industrial manufacturing sectors.

In the face of fi erce competition for a restrained level of

consumer demand, it is clear that companies are looking

to scrutinise production processes in order to gain the

competitive edge on their peers. The retention of

top talent has also been of high importance for

companies, with Michael Page witnessing numerous,

often substantial, ‘buy backs’ throughout 2011.

If counter-offers prove to be a continuing trend in 2012,

a good relationship with an experienced recruiter could

prove invaluable in securing successful placements.

Disclaimer: The salaries used in this report were compiled using Michael

Page Engineering & Manufacturing data from new registrations and

placements made nationwide from January to December 2011. We

have attempted to provide information on interim rates, though due

to the nature of the roles being on a project by project basis, they are

provided as a guide only. Salary data excludes the infl uence of bonuses

and remuneration packages; if you would like more information on this,

please contact us.

This report has been compiled using the most common market

terminology for roles, however we appreciate they may not fi t with every

business terminology and structure. The results are provided as generic

market information only.

Access this report online:

www.michaelpage.co.uk/engineering-manufacturing/salarysurvey

Michael Page Engineering & Manufacturing 7


Specialists in Engineering & Manufacturing Recruitment

www.michaelpage.co.uk

For further information on the Engineering & Manufacturing

recruitment market or the services that we can offer contact:

Colin Monk Managing Director

01932 264195

colinmonk@michaelpage.com

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