Q&A – RICS & MACDONALDS EUROPEAN REMUNERATION SURVEY

Now in its fourth year, the 2010/11 RICS (Royal Institution of Chartered surveyors) and Macdonald & Company European Property Market Remuneration Survey is the most comprehensive survey undertaken for the European property market. The survey highlights some interesting trends in the real estate market for both employers and employees worldwide.

1. How many professionals participated in this year’s survey?   

We are very happy to see that, the number of participants continues to increase with 1, 446 European real estate professionals participating in this forth edition of the survey. With the largest response rate achieved in its history, this survey is certainly the largest and most accurate of its kind in Europe.
 

2. What is the rate of redundancies/recruitment within the industry compared to previous years? Are they on the increase or dropping?

The survey shows that the number of professionals losing their job in the last 12 months dropped from 13% to 9%.  Redundancies were not the main cause for most professionals to leave their current employer, but better career opportunities, followed by a work in a different country.


3. What do the findings mean for the industry (and for RICS)?

Once again findings show a cutting-edge advantage for those professionals, who working in all sectors of the real estate, are “RICS qualified”. On average RICS members earned 60% more than those who are not “professionally qualified”, with an average salary of €83,314 (against €52, 028).

Chartered surveyors were particularly well rewarded in the Benelux region (€104, 000) and Scandinavia (€99, 000).

Another interesting finding in this survey is that in Europe, more than any other world region, the majority of professionals interviewed consider that they work for “an employer of choice” and are quite happy with their current employment. This is a very good sign for the industry and employers in the region should be pleased.

4. Are salaries up or down– what are the future trends on pay?

The average annual base salary is €70,183. Although the average salary increase was no better than last year (even slightly down from 11.2% to simply 11%), 32% of respondents interviewed received a base salary increase in the last twelve months, and only 8% reported a pay decrease.

These are clearly good news, given the 14% pay reduction of last year. In particular, this increase has benefited those professionals between 25-30 years old, working in Fund Management, Property Asset Management and Property Finance.

All this, show a new trend of improvement although still relatively moderate and subdued by the effects of the economic crisis.

5. What about bonuses?   

The majority of respondents received a bonus over the last twelve months (56% up to 50% last year), however we have to precise that on average across Europe those bonuses were lower than in the previous year (€16,923 instead of €21,283 respectively).

On the other hand, employers increased significantly their offer of additional employment benefits, such as mobile phones, performance related bonuses or company car, among others.

In general, as it happened in the past, although salary and bonuses clearly count, what employees seems to appreciate the most, is an interesting job (63%), a good management style (58%) and career progression (56%)  .

Also when it comes to professionals’ attitude toward their current salary, the majority expressed, once again, their satisfaction. Only 38% were not satisfied.


6. What conclusions can be drawn on the state of the real estate market based on this survey?

There are clear signs that the European property market is recovering from the lows of 2009/2010. Confidence is returning to the market however this is edged with caution and we expect the market to continue to show slow signs of improvement over the next 12 months.

Forrás: RICS