As we start Q4 of 2017, usually the busiest period of recruitment in the calendar year, it seems an opportune time to reflect on the year to date and the recruitment patterns we have seen so far.
Analysis of all of the real estate roles we have placed this year reveals some unexpected patterns. For example, you may have expected to see a higher percentage focus on the European focused positions than the results show. Or maybe you would have expected little to no recruitment within the development sector.
Here are some of our findings from 2017 so far:
Movement on package:
- The average movement in package this year was an increase of 15% from the candidates’ existing package (salary and car allowance) to the successful placement offer level.
- This is an average figure, with some candidates taking a lower salary where they were moving to a more entrepreneurial environment or had been out of the market for a while, whilst senior level hires or active approach/headhunt processes often yielded higher percentage increases.
The average salary:
- Taking into consideration the ‘Head of’ roles with c. £130,000 basic salaries, through to newly qualified positions, Cobalt’s core Real Estate team has placed an average salary of £58,160.
- This is unusual for a recruitment company with companies usually characterised as either ‘contingency’ or ‘search’- we do recruit at all levels from newly qualified through to top levels of seniority.
- The average role took 1.75 months from initial CV submissions through to an offer being made. This reflects the ongoing trend of clients conducting more selective recruitment processes and a higher insistence on ticking most, if not all, of the boxes.
- We successfully placed over 10% of our roles from speculative, targeted and well thought out approaches to our clients, where there was no existing position at the time of introduction.
- Off the back of the Referendum last year and the associated reactions to this decision, you might find it surprising that 80% of the roles this year (that are based in London) have had a UK focus. Perhaps unexpected given the broader context but a reassuring statistic for the UK market nonetheless!
- You might assume that the positions this year would be almost exclusively centred on the held assets, rather than new investment or development. However, whilst 22% of positions were asset management and 10% property management, the investment roles accounted for 16% of positions, with an additional 15% of analyst roles on top of that. Development positions also made up a respectable 12% of placements.
Research and forecasting:
- With more care being taken over investment decisions, as well as a greater necessity on monitoring of expected performance of held assets, it is no surprise that over 10% of positions this year were focused on Research and Forecasting. New teams are being developed and the value of investing in expertise in this area is increasingly being recognised.
- Much has been said about investment in retail, particularly shopping centres. However, this has remained the dominant sector in 2017 for roles with a particular sector focus, making up 23% of all roles, 12% were shopping centre. This is compared to 47% of roles which were multi-sector in remit. Retail was closely followed by Residential (including student accommodation) which made up 15% of this year’s placements.
Article written by Lucy Cook, Head of Real Estate at Cobalt.
As always, if we can be of any assistance to you for either role recruitment or general advice on remuneration levels and market activity, please do not hesitate to get in touch.
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