Raises Will Spark Up in 2016, Says ENR Survey

Hike will average 4.6%, 4th-quarter ENR confidence index reports

Healthy raises are in store in 2016 for much of the construction industry, according to a survey by ENR.

The ENR Construction Industry Confidence Index survey for the fourth quarter asked executives from design firms, general contractors, subcontractors and construction managers about their hiring and compensation plans for 2016.

Of the 253 executives responding to the survey, 223 provided estimates of planned raises for their employees in 2016. The average planned increase was 4.63%. Only four firms said they did not plan to provide raises at this time. Eight firms said they planned increases of anywhere from 15% to 30%. Taking these eight firms out of the equation still yielded an average planned increase of 4.18% among responding firms. The median increase for the group was 4.0%.

Breaking the responses down by type of firm, again, disregarding the 15%-plus projected raises, subcontractors and specialty trade contractors planned to give the biggest raises, averaging 4.25%.

On the other hand, general contractors and construction managers have less bold plans, anticipating average raises of 3.94% for their employees. Design firms plan to give raises averaging 4.13% in 2016.

In addition, the survey asked executives whether they anticipated adding to staff in 2016. Of the 246 executives that answered this question, 177—72.0%—said they did plan additions to staff. Only 45, or 18.3%, said they had no plans to add staff in 2016, while 9.8% did not know whether hiring was in their firms’ future.

ENR also asked what types of employees were most in demand. Of the 166 firms that answered this question, 65 specified project managers. Engineers were another sought-after group, with 53 firms saying they were seeking one or more to hire.

Craft labor is also in demand, with 37 firms saying they were looking to hire in a broad range of categories, from basic field labor to journeyman and lead tradespeople to skilled equipment operators. Estimators are being sought by 29 firms and field superintendents are being sought by 21 firms.

Gary J. Tulacz has been, since 1993, senior editor in charge of ENR's Top Lists, which bring structure to the huge global construction industry through annual surveys and market analysis of its key segments and major players. The array of surveys rank companies, based both in the U.S. and outside, which perform general contracting, specialty contracting, engineering, architecture and environmental services, among other specialties.

The rankings, based on annual revenue from work at home and abroad, are further divided into specific market categories. Click here for descriptions and schedules of ENR Top List surveys and access to information on current and past listed firms.

Gary also created the ENR Top 100 Green Contractors and Design Firms rankings and the ENR quarterly Construction Industry Confidence Index that measures firm executives' market outlook.

This survey data is used by industry firms and other businesses, government agencies and academics also to gauge the health of the global construction market.

A graduate of Fordham College in New York City and the Fordham University School of Law, Gary previously wrote extensively on employee relations in such areas as labor and immigration law and employee drug testing.

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