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Home » Salaries, Bonuses and Turnover Rise, Forcing Owners to Focus on People
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Salaries, Bonuses and Turnover Rise, Forcing Owners to Focus on People

June 13, 2007
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The demand for management talent among contractors is nearly universal. Turnover rates are rising as contractors rob people from one another. That is forcing contractors to pay higher salaries and also sell themselves to candidates as well as existing staff.
Contractors anticipate giving average salary increases of 4.17% for staff in 2007, according to a survey by PAS Inc., a Saline, Mich.-based compensation consulting firm. “But operations and technical support staff, like superintendents, estimators and schedulers, can expect almost double the average,” says Jeffrey M. Robinson, president of PAS. This is causing salary compression, where senior operational staff salaries are closing in on the levels paid to the executives who manage them, Robinson says.

Turnover also is on the rise. Turnover rates at the end of the last boom were 15%, dropping to 13% during the early 2000s, says Robinson. “Last August, our survey showed turnover up to 16%,” he says, adding that the trend will continue during 2007. “That’s one out of six employees,” he notes.

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