Fresh Data Reveals Truth Into Property Industry Salaries

Property Industry business conditions remain benign but salary rises are diverging.

Property Industry consultancy group Avdiev has compiled the latest figures, which reveal an insight into the future of the property workforce.

The ‘October Update’ to the 2016 Avdiev Property Industry Remuneration Report’s vital salary information and insights into the property workforce was sourced from survey data collected bi-annually from investment, construction industry and built environment professional companies.

Going by the findings from the industry remuneration report, Avdiev Group Managing Director Rita Avdiev said “the property industry is still doing well.”

“But significant shifts are emerging in hiring and remuneration practices,” she said.

“The winners are the young, flighty Gen Y with non-routine cognitive skills, as identified by RBA research, and fresh ideas in jobs requiring thought and initiative.”

The report’s findings suggest that the ‘Gig Economy’ has arrived, where 30% of employers have accepted the reality of the short term nature of employment and signal intentions to employ more staff as casuals.

This has also been reflected in the pay rises across most market sectors with the exception of the Property Investment and Funds Management sector where remuneration increases have remained subdued.

Even the major REITs have been reported in the property media as being in modest uplift mode, in contrast with previous years.

The report finds that 59% of respondents report doing well and 23% doing very well. Only 7% reported a drop in company performance in the last 12 months, in contrast with none in March 2016.

The median annual pay rise of 3% across all property, investment and construction markets and the built environment consultants has not varied since last year. However, employees in the Retirement Living/Aged Care and the Built Environment Professionals market sectors have seen increases in the 5% to 7% range.

Other levels of staff have enjoyed a 3% pay rise, or a modest reduction.

Forecasts for the next pay reviews are a steady 3% overall, but the Built Environment Consultants – Architects, Designers, Project Managers and other property positions where creativity and thinking skills are required are expecting rises of 4% to 5%.

Ms Avdiev said that change is constant, rapid and targeting previously untouchable areas.

Robotics, for example, was once considered solely in the realm of science fiction and is now emerging in the routine cognitive skills area of work.

“Can robots replace people in the property industry?” asks Rita Avdiev.

“Walk into an office building foyer in Sydney to be greeted by a cute robot receptionist, female of course, ready to assist with your enquiries.

"The future is here. Adapt or become redundant.”

 
Key findings in the Avdiev Property Industry Remuneration Report 2016 October Update

• 93% of companies responding to the Avdiev Survey report good and stable business conditions

• But for 7% conditions have deteriorated, in contrast with none reported in March 2016

• Reserve Bank research has revealed the changing nature of the Australian workforce – hands on versus thinking skills

• The future of work will consist of four skill opportunities – routine and non-routine manual, routine and non-routine cognitive skills

• The findings of the Avdiev Report reflect the importance and desirability of these skill types and the positions they populate

• Contributors of data report creating new positions requiring non-routine cognitive skills – in the Retirement Living/Aged & Health Care and in the Built Environment Professionals market sectors

• Remuneration rises have been highest in these market sectors, where conceptual, personal and interactive skills are seen to be a business advantage

• Casualisation of the workforce enables companies to refresh skill sets and entrenched attitudes to work practices and conditions

• Short term gigs are a guilt free opportunity to meet Gen Y property professionals’ need for rapid career change

• Significant changes in approach to gender diversity evident among 40% of contributors with a 50/50 gender balance within reach

• Remuneration initiatives and incentives are under review, introducing, modifying or aligning to the market the most prevalent.