The latest figures from the Arras People PPM Insider – a quarterly report that looks at the project management marketplace in areas such as salary levels and rates, shows that the market is still pretty stagnant right now. In some respects this is a great thing – no increase on project management redundancies for one! The stagnancy in the market also means there is not much going on in terms of salary and rate increases.
Looking back at the Project Management Benchmark Report at the beginning of the year we reported that in 2010, 41% of professionals had reported no change in their pay and conditions during that year with 18% actually seeing a fall (41% expecting an increase). If we look at the report from the previous year that covered the predictions the professionals were making for 2010, 49% expected to see no change in their pay and conditions with 9% seeing a fall (41% were expecting an increase). The predictions for an increase in pay were spot on whilst 9% more than predicted saw a decrease in their pay.
With pay rises expected to remain tight in 2011, the outlook or predictions at the beginning of the year by the surveyed professionals (over 1,500 of them) were once again solicited. Over half (52%) of the professionals felt that 2011 would bring no pay rise in a permanent role while 63% of contractors felt the same about their day rates. Interestingly 40% of professionals in a permanent job felt that they would see a pay increase this year (just 1% difference from the previous year) compared with just 18% of contractors thinking the same. Other research from the beginning of the year – this time from the Hay Group – said that 82% of private sector firms would be awarding pay increases during 2011 (compared with just 39% of the public sector). A quick comparison against the project management industry from the Benchmark Report showed the split at 47% private sector Vs 31% public sector.
We will have to wait five months before we can really say with any certainty that these figures become reality for anyone – public or private sector project management workers – though the indications so far from the quarterly report means we’re really unlikely to be seeing over the 80% mark as indicated in the Hay Group report. Will the predictions for pay increases be spot on again with under half of project management workers seeing more in their pay packet?
The interesting thing about the market at the moment is that we have a lack of churn amongst the PPM practitioners, even though many are being pinched from two directions. Many workers are not seeing the pay increases they expect, need or in some cases deserve, whilst at the same time they are feeling the effects of inflation; in real terms they are worse off! Even so many are still sitting tight in the job they have as they believe that the “risk” associated with a move far outweighs any potential gain whilst the economy is seen as still brittle. As more and more people sit tight waiting for “something” to happen the lack of churn is impacting the talent pipeline for hiring organisations who are looking to grow, even though many have good pay and conditions on offer.
Catch-22.
So what’s it to be – do the employees take a leap of faith and decide that now is the time to make that “something” happen or do the employers have to improve their offers for talent, making them irresistible (especially for the risk averse wannabe job seeker)?
Do you have any thoughts to share on the current project management marketplace? Have you recently received a pay increase or still holding out on a promise? Share your thoughts
Image: danielmoyle
