Salary Survey 2013 report. Salary Survey UK Report. Institution of Civil Engineers

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1 Institution of Civil Engineers Salary Survey 2013 report Salary Survey 2013 UK Report

2 Contents Glossary of terms... 3 Introduction... 4 Methodology... 6 UK s: highlights... 8 UK respondents: sample characteristics Section 1 UK income Section 2 UK careers Section 3 Recent economic climate Section 4 UK recent graduates Appendices Salary Survey 2013 UK report Institution of Civil Engineers

3 Glossary of terms Basic income Permanent salaried employment Gross basic rate salary before deducting tax and National Insurance (NI) in the UK or an equivalent state medical care contribution in other countries. Excludes bonuses and overtime. Self-employed Income from all sources less direct expenses but before deducting tax, personal expenses and NI in the UK or an equivalent state medical care contribution in other countries. Contractors or part-time salaried employment Total earnings before deducting tax and NI in the UK or equivalent state medical care contribution in other countries. Excludes additions from benefits contributions paid to the individual. Secondary income Income from other civil engineering related occupations if these were part of the main occupation in the year. The gross figure is given before deducting tax, examiner s fees and NI in the UK or an equivalent state medical care contribution in other countries. Includes royalties and part-time consultancy fees. Overtime All earnings for working extra hours. Excludes bonuses. Bonuses Any share of profits, commission, fees, honoraria or other payments received from the sole or principal employer. Excludes overtime payments. Additional income The sum of secondary income, overtime and bonuses. Mean and median income Mean salary Median salary The sum of all salaries divided by their number. The central value of a range of salaries, or the mean of two central values if their number is even. Abbreviations used in the report UK United Kingdom Example {1,2,3,4,5} Mean value: ( )/5=3 Example {1,2,3,4,5,6} Median value: (3+4)/2=3.5 CPI RPI Consumer Price Index (official measure of inflation for UK) Retail Price Index (measure of inflation) 3 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

4 Introduction I would like to thank all the ICE members who took part in ICE s Salary Survey 2013, our first in three years. The information provided has been invaluable in bringing us up-to-date on salaries within civil engineering. The s have been split into two reports this version for the UK, and a separate report with results for Australia, Hong Kong, New Zealand and the United Arab Emirates. Some signs of recovery The civil engineering community was badly affected by the economic downturn, but there are some signs of recovery emerging from this year s results. Members feel more positive about the future. Views on job security have improved and there has been a significant jump in the proportion of respondents seeing signs of economic improvement in their organisations. Salary reviews are more common: 68% of respondents have had (or will have) a salary review in 2013, compared to only 35% in At the top of the profession, total income for Managing Directors, Chief Executive Officers and partners increased again this year after falling in 2010, and has now returned to 2008 levels. The number of civil engineers earning 100k or more increased from 2.8% in 2010 to 4.2% in Salaries for recent graduates are also recovering, following consecutive falls between 2008 and Many recent graduates were employed before or immediately after they graduated, and this group of members is also now more satisfied. Civil engineers now earn on average just under 50,000 a year. Still a challenging time for UK members While overall salaries have increased slightly since 2010, they are still down in real terms. Mean basic income for the total sample has increased 2.5% since 2010, while the Consumer Price Index (CPI) increased by 9.8% over the same period. Members are also less satisfied with their professional lives. Satisfaction with jobs, employers and salary packages is down this year. Compared to other membership grades, Technician Members are least satisfied with their salary package, which is unsurprising given that their mean basic income has nominally dropped 7% since Unfortunately, the gap between earnings of men and women continues. While there is almost no difference in salaries for younger members (aged up to 29), overall female respondents earn significantly less than their male colleagues. 4 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

5 Benchmark your salary ICE members can see how their salary compares with other civil engineers by using our online salary calculator, available in the MyICE section of ICE s website. If you have any questions about the report, please survey@ice.org.uk. I hope you will find our latest salary survey useful and informative. NG Baveystock Director General 5 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

6 Methodology Why a web survey? Since over 90% of ICE members have registered their address with ICE, an online survey was the most accurate and cost-effective approach to use. To correct any imbalance in the sample profile, results were weighted by member age and grade for the UK s. These variables were chosen as weighting factors since they are most likely to predict earnings. Data confidentiality The survey was conducted by an independent market research agency, which hosted the web questionnaire and kept all replies strictly confidential following the Market Research Society guidelines. ICE only has access to this report and the aggregated results in the form of charts and tables, rather than any individual responses. Response rate Nearly 39,000 working members in five countries were contacted by in September 2013 and asked to complete an online questionnaire. The number of respondents and response rates for the UK and other countries were: Country Number of respondents Response rate Australia and New Zealand 279 (AU 205 and NZ 74) 16% Hong Kong % United Arab Emirates % United Kingdom 5,719 18% Recent graduates Sections of the report show results for Graduate members, as well as a sub-group of recent graduates. Recent graduates are Graduate members, aged up to 34, with up to five years experience in civil engineering. Within the UK sample, 1,157 respondents were recent graduates. Please note the s for the Graduate grade sample (referred to as All Graduates in this report) include the recent graduate sub-sample. Salary questions To ensure that the income data was as accurate as possible, precise definitions were given in the survey. Respondents were asked to provide details of their basic income, secondary income, overtime pay and bonuses paid in the most recent tax period. 6 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

7 Main statistics used in the report Charts in the report show the mean (commonly known as average) and median income. Mean is a more familiar term to most people; however, median is a better indicator of the typical salary for a given respondent group as it is less affected by outliers (very low or high values). Period of research The same core questionnaire and online methodology have been used for the ICE Salary Survey since 2004, so meaningful comparisons can be made with previous salary s. The table below shows the report titles and corresponding tax years. Tax year Survey name 2012/2013 Salary Survey /2010 Salary Survey /2009 Salary Survey /2008 Salary Survey /2007 Salary Survey /2006 Salary Survey /2004 Salary Survey Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

8 UK s: highlights Income of UK members (section 1) Average salary for civil engineers nearly 50k mean basic income for the total sample in 2013 is 49,793 Basic income rises, slowly mean basic income increased by 2.5% between 2010 and 2013, while median basic income improved by 5.4%; slow increases considering the three-year gap between surveys Basic income decrease in real terms taking inflation into account, mean basic income is down since 2010 by 6.7% accounting for the Retail Price Index (RPI) or 5.1% using the Consumer Price Index (CPI) Value of being Chartered Chartered Engineers (CEng MICE) earn 30% more (mean basic income) than Incorporated Engineers (IEng MICE) and the difference in median basic income is 25% Women continue to earn less the difference in salaries between male and female members is nearly non-existent for younger members (aged up to 29), but for those aged 45-49, men earn 38% more than women. Overall, women earn 40% less than men, in line with the 42% difference registered in 2010 TMICE, the only grade recording negative change since 2007 mean basic income for TMICE decreased by 7% Total income for MDs/CEOs/Partners is back up mean income for this group has increased by 8.3% since 2010, returning to the 2008 level Increase in proportion that earn 100k+ those with basic income of 100k or more increased from 2.8% of respondents in 2010 to 4.2% in 2013 See section 1 (pages 11 29) for more detailed results on the income of UK members. Job satisfaction and professional development (section 2) Satisfaction down overall across the whole sample, satisfaction with their current role, employer and compensation package is down. Satisfaction with the compensation package registered the biggest drop Professional qualification a priority in 2013, professional qualification was added to the questionnaire and immediately topped the list as a priority for future career development. Nearly one in four respondents said they want to obtain a professional qualification (95% of this group do not have one yet) Membership fees the proportion of those whose professional fees are paid by employers increased from 59% in 2010 to 69% in 2013 Skills development the need to have greater technical depth has been indicated by 43% of respondents, up from 39% in 2010, but the key area is still soft skills What do members want? in a strong message to employers, members say a clear career path is the factor that would most improve their working lives See section 2 (pages 30 40) for more detailed results on non-salary related aspects of UK members professional lives. 8 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

9 UK s: highlights continued Members and the economic climate (section 3) Salary reviews more common 68% of respondents said they have had or will have a salary review this year, a significant increase on the 2010 result (35%); male and female members are equally likely to have their salary reviewed in 2013 Job security increases significantly 65% of respondents feel secure or very secure about their jobs, up from 40% in Young members are most secure in their jobs, public sector employees are least secure More signs of improvement the proportion of members seeing signs of economic improvement increased significantly from 20% in 2010 to 72% in 2013 See section 3 (pages 41 44) for more detail on how members feel the current economic climate affects their professional lives. Recent graduates (section 4) Recent graduate salaries recovering recent graduates experienced an increase of 2.3% in mean basic income, close to the average increase for all UK members and a positive change after falling in consecutive years between 2008 and 2010 Salaries increase at a quicker pace after graduation the trend is becoming more positive for graduates in recent years, with salaries going up more quickly in the first couple of years of work. Salaries for those graduating in 2009 were 7.7% higher after two years, while salaries for 2011 graduates were 17.5% higher after two years Recent graduates more satisfied in 2010, only 37% of recent graduates were fairly or very satisfied with their salary package, compared with 43% in 2009 and 49% in In 2013 this proportion is again near the 2008 level, at 48% No gender gap in basic income for recent graduates recent female graduates command the same basic income as their male colleagues (close to 27k). However, the total salary received by male recent graduates is 2.5% higher, indicating men receive a higher share of additional income (bonuses, overtime pay and secondary income) Most find employment 62% of recent graduates were employed before, or immediately after they graduated; only 6% were looking for a job longer than a year See section 4 (pages 45 50) for more detailed responses from recent graduates (ICE Graduate members aged up to 34 with no more than five years of professional experience). 9 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

10 UK respondents: sample characteristics Age bands Count of respondents Percentage Response rate 25 or under 185 3% 16% % 16% % 17% % 17% % 18% % 18% % 18% % 18% % 20% 66 or over 224 4% 15% Total 5, % 18% Membership grade Count of respondents Percentage Response rate FICE 282 5% 17% MICE 3,133 55% 18% AMICE 205 4% 19% TMICE 98 2% 17% All Graduate members 2,002 35% 17% Total 5, % 18% UK region Count of respondents Percentage Response rate East Midlands 327 6% 19% East of England 263 5% 10% London 1,019 18% 23% North East 182 3% 18% North West % 18% Northern Ireland 154 3% 17% Scotland % 17% South East England % 17% South West 542 9% 18% Wales 240 4% 15% West Midlands 432 8% 19% Yorkshire and Humber 347 6% 17% Total 5, % 18% Gender Count of respondents Percentage Response rate Female % 20% Male 5,071 89% 17% Total 5, % 18% 10 Salary Survey 2013 UK report Institution Institution of Civil of Engineers Civil Engineers

11 Section 1: UK income s Salary Survey 2013 Report Section 1 UK income This section presents s on UK members earnings based on: Age Membership grade Level of responsibility Region Gender It is followed by other job related information such as annual leave entitlement and employment benefits.

12 Baisc income in 39,191 35,647 39,880 40,000 44,251 45,166 41,750 41,421 42,598 47,414 47,282 43,640 48,588 49,793 Section 1: UK income s 1.1. Basic income change ,000 Basic income change ,000 40,000 30,000 20,000 10, Survey year Mean Median The mean basic income increased by 2.5% between 2010 and 2013, while median basic income improved by 5.4% in the same period. The average (mean) basic income for civil engineers in 2013 is 49,793. Salaries rise again, slowly ICE member salaries grew again after a small fall of 0.3% in But growth is slow considering the three-year gap between this and the previous survey Most earn mid- or lower-level income the mean salary is higher than the median. Although the difference isn t big, it indicates a large number of members with mid- or lower-level salaries Increase in proportion that earn 100k+ those with basic income of 100k or more increased from 2.8% of respondents in 2010 to 4.2% in This high-earning group now commands 12.5% of the earnings of the whole sample, up from 9.2% in Salary Survey 2013 UK report Institution of Civil Engineers

13 1.2. Basic income change, RPI* and CPI* 140 Basic income and RPI and CPI change Mean Median RPI CPI RPI and CPI increased more than mean and median basic salaries since 2010, meaning civil engineers have less purchasing power now. Salaries grow slowly while inflation quite high the economic crisis between 2007 and 2010 and the resulting recession had a negative impact on salaries. At the same time, inflation remained relatively high and eroded salaries further in real terms Mean basic income decrease in real terms while salaries increased 2.5% between 2010 and 2013, in real terms the mean basic income has gone down by 6.7% (if we account for RPI) or 5.1% (if we account for CPI). This translates into a loss of between 4,450 and 3,668 in purchasing power between 2010 and 2013 Year Mean Median RPI CPI RPI (Retail Price Index) and CPI (Consumer Price Index) are measures of inflation. More details are available on the Office for National Statistics website ( 13 Salary Survey 2013 UK report Institution of Civil Engineers

14 Basic income in 24,808 24,498 28,686 28,000 36,766 34,737 44,526 41,968 50,476 48,000 45,000 43,640 51,500 52,500 52,000 49,793 58,361 59,865 57,000 58,166 58,231 63, Basic and total income by age Basic income by age 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 < >65 Total Age bands Mean Median It now takes longer for members to reach their full earning potential. In 2010 those aged earned the highest mean basic income. In 2013 the peak is for members aged Biggest rise for members aged salaries increased 9.6% for this group, closely followed by a 9.2% increase for the age bracket (however salaries for these two groups fell in 2010) Income falls for members aged the only age band to register a drop in mean basic income, down 2% from However, this could be a small adjustment following the 2010 results, when salaries increased at an above average rate for year-olds, but dropped for members aged and Above average increase for more age bands only three age bands (35-39, and over 65) experienced an above average salary increase in In 2013 mean basic income increased above the 2.5% average for seven age groups (under 25, 25-29, 30-34, 40-44, 45-49, and over 65) Small salary differences for members aged up to 44 indicated by the similar figures for mean and median basic income within each age group up to this point. For members over 45, differences increase as some members accelerate their earning capabilities compared to their peers 14 Salary Survey 2013 UK report Institution of Civil Engineers

15 Total income in 26,263 25,000 30,704 29,000 39,109 36,000 47,760 43,300 54,927 50,000 54,124 50,000 46,000 57,000 55,055 64,477 59,512 56,500 67,486 71,318 67,289 63,593 Total income by age 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 < >65 Total Age bands Mean Median Both mean and median total income have increased by 2% since 2010, a small rise compared to the 4% year-on-year rise recorded in The increase is also less than basic income growth, showing a slowdown in the increase of additional income*. Earning peak moves from age band in 2010 to in 2013 following the same trend as for basic income Biggest increase for members aged mean total income has grown 9.4% since 2010 for this group: those aged over 65 and saw total salaries drop 1.8% and 0.7% respectively Additional income* accounts for 11% of total income it increases with age and peaks for members aged (chart below shows the share of additional income by age) 30% 20% 10% Share of mean additional income* in total income 0% < >65 Total Age band * Additional income is the sum of secondary income, overtime pay and bonuses paid * 15 Salary Survey 2013 UK report Institution of Civil Engineers

16 Basic income in 32,177 31,000 37,002 31,567 26,668 26,000 46,588 42,000 55,880 49,793 43,640 50,000 74,200 81, Basic and total income by membership grade UK Basic income by membership grade 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 FICE MICE AMICE TMICE All Graduates Recent Graduates Membership Grade Total Mean Median Recent graduates* experienced a near-average increase of 2.3% in mean basic income, a positive change after falling in consecutive years between 2008 and Above average increases for three grades between 2010 and 2013 mean basic income grew for AMICE, All Graduates and MICE (8.3%, 6.8% and 4.3% respectively) Double digit mean income growth between for four grades salaries for FICE, MICE, AMICE and All Graduates have grown between 10% to 14% in the last six years Slower growth for recent graduates since 2007 while salaries increased at a near-average rate for recent graduates between 2010 and 2013, since 2007 their mean basic income has increased at a moderate rate of 5% TMICE, the only grade recording negative change in the long-term the survey indicates that TMICE salaries have dropped 17% since However, this figure should be treated with some caution as the sample sizes for TMICE are smaller than other grades which means there is greater volatility in year-on-year results. The overall trend since 2007 gives a more reliable indication, over which time TMICE mean basic income decreased by 7% *See definition of recent graduates on page 6 16 Salary Survey 2013 UK report Institution of Civil Engineers

17 TMICE and recent graduate income varies least similar mean and median basic income shows that basic income varies least within these membership grades. Income variation is denoted by the standard deviation (distance of the data points from the mean) within each membership group, presented in the table below: Member grade FICE MICE AMICE TMICE All Graduates Recent graduates Total sample Standard deviation in 43,762 30,174 18,858 7,689 19,965 5,228 29,639 Note: a low standard deviation indicates that individual salary values are very close to the mean value, a higher standard deviation means the values are spread out over a larger range. Taking TMICE as an example: salaries for 68% of TMICE are within 1 standard deviation of the mean ( 32,177 +/- 7,689); salaries for 95% of TMICE are within 2 standard deviations ( 32,177 +/- 15,378) and salaries for 99% of TMICE are within 3 standard deviations ( 32,177 +/- 23,067). 17 Salary Survey 2013 UK report Institution of Civil Engineers

18 Basic income in 34,128 33,000 40,113 33,113 28,649 27,000 49,920 42,978 52,000 46,000 61,829 55,055 82,000 96,908 Total income by membership grade 110, ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 FICE MICE AMICE TMICE All Graduates Recent Graduates Total Membership grade Mean Median Mean total income for recent graduates (graduate members with up to five years of professional experience) stands at 28,649, 4.3% up on the 2010 result and a change to a negative trend that started in Biggest changes for AMICE and TMICE between 2010 and 2013 mean total income increased 10.7% for AMICE but decreased 13.1% for TMICE. However, smaller sample sizes for these grades make year-on-year results more volatile Total income rises for MICE their average total salary improved 3.6% from 60k in 2010 FICE total income falls back to 2009 level Fellows average earnings have fallen 2.5% since 2010, not far from the level registered in 2009 ( 94k) Bonus makes up highest share of additional income* at 59% overall. For AMICE, this proportion reaches 66%, followed by FICE and MICE at 63% 14% of all members declare secondary income the highest mean value was generated by FICE ( 17,721), followed by MICE ( 15,306) and AMICE ( 14,750) Average bonus is 6.2% of basic income the relation of bonus vs. basic income by grade is presented in the table below: Member grade FICE MICE AMICE TMICE Graduate Recent Graduate Total sample % bonus vs. basic income 11.9% 6.7% 4.7% 1.9% 3.7% 2.2% 6.2% * Additional income is the sum of secondary income, overtime pay and bonuses paid 18 Salary Survey 2013 UK report Institution of Civil Engineers

19 Basic income in 32,398 31,000 44,437 40,000 43,538 40,000 50,000 50,000 56,484 56, Basic salary by professional qualification 70,000 Basic income by professional qualification 60,000 50,000 40,000 30,000 20,000 10,000 0 CEng IEng EngTech MICE CEng MICE IEng Professional qualification Mean Median Chartered Engineers (CEng MICE) command higher salaries than holders of other professional qualifications. Within MICE, CEng MICE earn 30% more (mean basic income) than Incorporated Engineers (IEng MICE). The difference in median basic income is 25%. CEng MICE basic income higher than MICE overall when comparing within the MICE grade, those with CEng qualification earned a mean basic income of 56,452 while MICE overall recorded 55,880 EngTech TMICE mean basic income also higher as observed for MICE, the same is true for TMICE. Those who are EngTech registered had a mean basic income of 32,398, while all TMICE earned 32,177 in the last fiscal year 19 Salary Survey 2013 UK report Institution of Civil Engineers

20 Basi income in 25,722 25,000 36,154 32,500 46,331 41,000 50,482 47,000 46,325 44,938 45,581 40,000 54,301 48,998 43,640 49,793 65,630 60,000 80,000 91, Basic and total income by level of responsibility 100,000 90,000 80,000 70,000 Basic income by main level of responsibility 60,000 50,000 40,000 30,000 20,000 10,000 0 Main level of responsibility Mean Median Mean basic income for MDs/CEOs/partners is now 91,169, up 8.9% from 83,697 in This is a big improvement on the 0.4% increase registered in Premium increases for those at top of profession the mean basic income premium of members in the Managing Directors/CEOs/Partners category over the total sample increased from 72% in 2010 to 83% in 2013 (same for median), which sees a return to the 2008 level Mean basic income rise of 2.8% for managers/directors income for those in the next most senior category increased 2.8% from 2010, to 65,630 Largest basic income increase for project managers while members in education/r&d saw the highest basic salary increase between 2010 and 2013 (nearly 10%)*, those in project management registered the biggest positive salary change between 2004 and 2013 (39%) * This response option for the level of responsibility question was slightly changed between 2010 and 2013 which may have influenced the increase level phrasing: academia/teaching, 2013 phrasing: education, teaching or research and development 20 Salary Survey 2013 UK report Institution of Civil Engineers

21 27,293 25,959 Total income in 38,452 34,000 49,690 43,053 54,327 49,068 52,490 48,800 48,314 42,061 51,000 46,000 58,744 55,055 65,000 74,622 95, ,112 Total income by main level of responsibility 130, , , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Level of responsibility Mean Median Mean total income of those just starting their civil engineering career (onthe-job training) has improved by 3.6% since However, mean basic income for this group is just 0.5% higher than in Total income for MDs/CEOs/Partners back up the mean compensation package for this group has increased 8.3% since 2010, returning to the 2008 level before the economic downturn took hold MDs/CEOs/Partners are best earners they represent 3.5% of the total respondent sample, but account for 8.3% of the total income for all respondents 2.5% increase for managers/directors accounting for 16.5% of the sample, this group experienced a 2.5% rise in mean total income, up from 72,806 in 2010 Overtime income most common early in career those in on-the-job training received the most (paid) overtime, as a proportion of additional income 21 Salary Survey 2013 UK report Institution of Civil Engineers

22 Basic income in 43,000 49,854 45,716 42,000 40,000 44,899 47,144 43,711 41,679 39,396 40,000 40,583 38,502 47,079 45,203 43,777 42,446 50,050 48,000 44,000 41,000 43,640 48,900 53,972 49,793 59, Basic and total income by region 70,000 Basic income by region 60,000 50,000 40,000 30,000 20,000 10,000 0 Mean Region Median Mean basic income has increased the most (9.7%) since 2010 for members in the North East, but salaries in the region are still 10% below the average for all regions. London-based members still earn the most although there was a small drop of 1% for members in London, the mean basic income in this region continues to be highest, followed by South East England (9.4% less than London) and the East Midlands (18.4% lower) South East England catching up with London in 2010 London and South East England experienced a below-average increase in mean basic salary on the 2009 survey. In 2013 South East England income increased in line with the total sample, while London salaries dropped 1% Salaries fall for two regions mean basic salaries for the South West and the East of England increased between , but since 2010 salaries have dropped 5.9% and 8.1% respectively Slowest growth in Yorkshire and Humber mean basic salary increased least between 2004 and 2013 for Yorkshire and Humber (15.5%); while it increased most for the East Midlands (36.9%), North West (34.9%) and Wales (33.9%). The overall mean basic income increase in that period was 27.1% 22 Salary Survey 2013 UK report Institution of Civil Engineers

23 Total income in 40,000 45,000 45,038 44,721 55,336 51,676 49,691 46,352 42,149 42,000 43,000 40,440 51,634 51,123 49,200 48,370 45,000 45,538 41,900 46,000 54,000 51,000 54,258 59,885 55,055 66,619 80,000 Total income by region 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Region Mean Median Mean total income is lowest in Northern Ireland, 18.8% less than the total sample average. This contrasts with London which commands a mean total salary of 21% more than the total sample average, despite a 1% drop since Bonuses as a share of total salary the share is highest in the East of England (8.2%) and second highest in the South East of England (6.5%). Members in the South West receive the lowest bonus as a share of mean total salary (4.0%) Three regions register above average mean total salaries London, South East England and East Midlands, 21.0%, 8.8% and 0.5% respectively Bonuses make up 71% of additional income for East of England the highest proportion from all regions. At the other extreme are the North East and South West where this number is just under 50% Secondary income makes up 18% of additional income across sample while in 2010 secondary income formed the biggest part of the additional pay in Northern Ireland and the South West (over 50%), in 2013 has not exceeded 26% Overtime pay has lowest share in additional income the amount of mean overtime pay in the additional income was highest for Scotland at 28% and lowest in Wales and Yorkshire & Humber at 15% for both regions 23 Salary Survey 2013 UK report Institution of Civil Engineers

24 Basic income in 19,000* 24,738 25,091 28,712 28,583 33,349 37,545 37,775 36,770 40,098 46,149 43,534 52,410 50,477 49,618* 51,455 60,031 60,508 58,312 58,259 58,679 63, Gender differences in pay The 2010 Salary Survey presented the salary differences by gender in full for the first time and we can now observe trends over time. Since basic income makes up on average 90% of the total salary, the analysis focuses on this component of income. Note: results for groups with fewer than 20 respondents should be treated with caution due to the low sample size (indicated with an asterisk throughout) Basic income by age and gender 70,000 Basic income by age and gender 60,000 50,000 40,000 30,000 20,000 10,000 0 < >65 Total Age band Mean Male Mean Female The difference in salaries of male and female members is nearly non-existent for younger members (aged up to 29), but for those aged 45-49, men earn 38% more than women. Further down the career path, earning gap narrows for women aged the table below demonstrates how the differences vary with age Age band < >65 Premium commanded by men Female sample size * Caution: low female sample size -1% 0% 13% 22% 31% 38% 20% 9% 17%* 209%* * 3* 24 Salary Survey 2013 UK report Institution of Civil Engineers

25 Basic income in 32,278 30,939* 30,847 26,637 26,783 42,750 40,036* 38,257 36,770 47,021 51,455 57,142 63,770* 82, Basic income by membership grade and gender Basic income by membership grade and gender 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 FICE MICE AMICE TMICE All Graduates Recent Graduates Membership grade Total Mean Male Mean Female The highest mean basic salary differences between male and female members can be observed for MICE and FICE, where the premium commanded by men stands at 34% and 29% respectively. Few women in FICE, AMICE and TMICE samples the proportion of female respondents in these grades is 4.8%, 6.2% and 7.5% respectively, compared to 11.3% of the total sample. The table below demonstrates how the proportion of women in the sample changes by grade Mean basic income differences smallest for recent graduates and TMICE they become more pronounced for Graduates and AMICE Member grade FICE MICE AMICE TMICE All Graduates Recent Graduates Total sample Share of women 5% 9% 6% 7% 17% 21% 11% Female sample size 14* * 7* ** 648 Premium commanded by men 29% 34% 17% 4% 24% -1% 40% * Caution: low female sample size ** Not included in the total sample sum as already included in the All Graduates subgroup 25 Salary Survey 2013 UK report Institution of Civil Engineers

26 Basic income in 25,630 25,976 31,119 37,162 37,072 41,930 40,658* 37,194 36,770 47,577 51,270 47,193 47,123 43,293 53,679 54,897 51,455 66,392 61,604* 92, Basic income by main level of responsibility and gender 100,000 Basic income by main level of responsibility and gender 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Main level of responsibility Mean Male Mean Female Overall, women earn 40% less than men, in line with the 42% difference registered in The gap increases with the level of responsibility. Women continue to earn less the small change between 2010 and 2013, with women continuing to earn significantly less, indicates that the salary gap between men and women in civil engineering is a systemic issue Little difference early in career as in 2010, the mean basic salary of female respondents undergoing on-the-job training was slightly higher than their male equivalents Gap increases as career progresses after on-the-job training, the premium commanded by men increases for more senior levels of responsibility to between 16% and 28%. At the top MD/CEO/partner level the difference jumps to 49% (however this result should be treated with caution due to very small number of female respondents in this group 13 in 2010 and 7 in 2013) * Caution: low female sample size for some groups (indicated with an asterisk in chart) 26 Salary Survey 2013 UK report Institution of Civil Engineers

27 Basic income in 31,743 35,825 32,480 33,836 40,490 38,240 34,298 39,896 47,061 45,761 42,670 38,910 35,139 35,158 32,495 36,770 51,738 48,034 48,762 46,686 44,970 43,560 50,999 55,479 51,455 61, Basic income by region and gender 70,000 Basic income by region and gender 60,000 50,000 40,000 30,000 20,000 10,000 0 Region Mean Male Mean Female The North East and North West have the smallest mean basic income differences between male and female members, but men still earn 20% more in both cases. Big change for East Midlands in the 2010 survey women in the East Midlands earned 11% less than men, but this difference increased to 63%* in 2013, the biggest difference across all regions (however small sample sizes could explain volatile results) Highest difference in 2010 observed for South East England in 2010 male respondents in this region earned 61% more than their female colleagues, followed by the South West and London with a 52% and 50% premium respectively Little change for London the difference is again high in London, where men earn 53% more basic income than women * Due to a significantly lower sample base of female members per region, results may be more volatile and should be treated with caution 27 Salary Survey 2013 UK report Institution of Civil Engineers

28 1.8 Last salary review and holiday entitlement 80% Last salary review 70% 65% 68% 60% 58% 50% 40% 30% 27% 33% 35% 34% 31% 23% 20% 10% 8% 8% 9% 0% 2008 survey 2009 survey 2010 survey 2013 survey Survey year This year Previous year Two years ago or earlier 68% of respondents have had or will have a salary review this year, a significant increase from 35% in % basic salary increase most common one in five members received a 2% increase, while 7% of respondents declared a salary increase of more than 10% Highest increase most common among younger members the 10% plus basic salary increase was most common among members aged No gender gap in salary reviews both male and female members are equally likely to have their salary reviewed in 2013 and there was no significant difference in the amount of the increase received by men and women Holiday entitlement stays the same in line with previous years, the average annual holiday entitlement among UK members is 26.2 days (median = 25) Annual leave increases slightly with age and seniority however, the average variation across these two variables is fairly small (2 days) Those in education and R&D get biggest holiday allowance the median value for members in this category is 30 days annual leave 28 Salary Survey 2013 UK report Institution of Civil Engineers

29 1.9 Employment benefits Benefits offered by employers Pension contributions Professional fees (e.g. membership) Flexible working time Life insurance Mobile phone bill paid by employer Medical - individual Car allowance Medical - individual and family Car Assistance with education/training Travel assistance (e.g. season ticket) Child care vouchers Stock options/equity Dental plan Health club/gym None Not applicable (self-employed, etc.) Other Housing allowance 8% 6% 3% 3% 3% 2% 29% 28% 23% 20% 17% 16% 15% 15% 13% 36% 36% 69% 73% 0% 20% 40% 60% 80% The proportion of those whose professional fees are paid by their employer increased from 59% in 2010 to 69% in No change at the top pension contributions and paying professional fees (such as ICE membership) remain the top two benefits offered by employers Pension contributions most common among members aged (82%) there is also an above average share of respondents who receive employer contributions for those aged between 30 and 59 as well as those in the manager/director and senior project management roles Members aged most likely to have professional fees paid an above average proportion of respondents in these age groups have professional fees paid by their employer. This coincides with the age respondents are most likely to achieve professional qualification Life insurance and flexible working time still popular received by 36% of members they rank equal third on the list, similar to 2010 Those in education and R&D less likely to receive benefits from employer 14% of respondents in this group received no benefits at all, compared to 3% for the total sample. Only 1 in 4 of those in education/r&d have professional fees paid by their employer, much lower than the 69% average for the whole sample 29 Salary Survey 2013 UK report Institution of Civil Engineers

30 Section 2: career related s Salary Survey 2013 Report Section 2 UK careers This section presents s related to the non-salary related aspects of members professional lives. It covers career and professional development, job satisfaction, training needs and more. It also includes details on members perceptions of the value of professional qualification.

31 2.1 Highest priority for future career Highest priority for future career Obtaining professional qualification (e.g. CEng) 23% Job related technical skills 16% Larger projects/schemes Project management experience 11% 11% I'm approaching retirement 10% Business management skills 8% No career development plans Line management role 5% 5% Business development skills 4% Other Different industry or sector Complete career change 2% 2% 2% 0% 5% 10% 15% 20% 25% Obtaining professional qualification was added to the 2013 questionnaire as a new future career priority and immediately goes to the top of the list, selected by nearly one in four respondents as their highest priority. Technical skills still a high priority job related technical skills are a slightly lower priority than in 2010 (20% of members vs. 16% in 2013), but they remain high on members agenda, followed by larger projects/schemes and project management experience (same proportions as in 2010) Overall order of priorities the same for all respondents the order of priorities for professionally qualified members follows a similar pattern (without obtaining professional qualification at the top of the list) Fewer respondents approaching retirement in 2010 nearly one in four respondents were approaching retirement, in 2013 this proportion dropped to one in 10 Complete career change considered by only a small minority mentioned by 2% of respondents, in line with previous surveys 31 Salary Survey 2013 UK report Institution of Civil Engineers

32 2.2 Primary source of information about current job Primary source of information about current job Approached the company directly Word of mouth (friends, colleagues, etc.) 17% 17% Approached by company/recr. agency 12% Recruitment agency In-house (internal job board, internal promotion, 10% 10% University (open days, university job board, etc.) 8% NCE Internet - recruitment website Other 6% 6% 7% Newspaper 4% Careers fair Specialised magazine/publication 1% 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Traditional ways of a job are much more popular among respondents than the internet. Approaching companies directly, word of mouth, being headhunted and using recruitment agencies top the list and together account for over 50% of responses. Civil engineers use the internet as supplementary means for job search only 6% of members found a job on the internet/via a recruitment site (in line with 2010 survey) Internet used mainly to contact employers direct of those who found their current job online, 30% went directly to the company s website while 12% used ICE Recruit One in 10 stayed with the same employer in-house recruitment helped around 10% of respondents to find their current job Fragmentation of online recruitment there is no one specific recruitment website that dominates the civil engineering hiring market as a whole 32 Salary Survey 2013 UK report Institution of Civil Engineers

33 2.3 Plans to change current job Plans to change job 90% 80% 70% 70% 75% 80% 79% 73% 60% 50% 40% 30% 20% 10% 15% 15% 13% 12% 10% 10% 13% 8% 16% 10% 0% Year of the survey No, I don t Yes - with another employer* Yes - with the same employer 26% of members plan to change jobs, compared to 21% in 2010 (the figures also include those who plan to become self-employed). More consider changing employer the employer loyalty level (respondents that plan to stay in their current job or change roles with the same employer) is 83%, slightly lower than in 2007 when it stood at 85% Majority plan to move to another company of those who plan to change jobs, six in 10 members plan to find another employer, the remainder plan to change roles within the same company Reasons to change job same as in 2010 primary reason to change jobs is to get more money (20%), followed by the desire to broaden knowledge/experience (16%) and have a more interesting job (15%). Although more money is still the number one motivator to change jobs, it is less so than in 2010 (43%) Small proportion consider leaving civil engineering 3% of the respondents would consider moving away from civil engineering, a small proportion but double the 2010 result 33 Salary Survey 2013 UK report Institution of Civil Engineers

34 2.4 Job satisfaction Satisfaction with current role, employer and compensation package 60% Satisfaction with current role, employer and compensation package 50% 52% 47% 40% 42% 30% 22% 24% 23% 20% 10% 13% 14% 12% 11% 11% 17% 3% 4% 5% 0% Very satisfied Fairly satisfied Indifferent Fairly dissatisfied Very dissatisfied Satisfaction level Current role Current employer Compensation package Satisfaction with current role, employer and compensation package is down compared to previous years. Satisfaction with the compensation package registered the biggest drop. Satisfaction with employer down 24% of respondents are very satisfied with their current employer, down from 28% in 2010 Similar general levels of satisfaction with current role 74% of members are either very satisfied or fairly satisfied with their current role, in line with the last four surveys But fewer very satisfied with current role the top answer (very satisfied) dropped from 30% in 2010 to 22% in This contrasts with the increases recorded in 2009 and 2010 Satisfaction gender gap for current role smaller than 2010 although a slightly higher proportion of men are very satisfied with their current role in 2013 (23% compared to 19% of women) the satisfaction gender gap is much smaller than in 2010 when 31% of men and 21% of women were very satisfied with their current role FICE most satisfied with current role and employer strongest satisfaction with the current role and employer can be found among FICE (43% and 40% very satisfied respectively), while the lowest can be observed among TMICE 34 Salary Survey 2013 UK report Institution of Civil Engineers

35 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Satisfaction with current role, employer and compensation package top two boxes (very satisfied and fairly satisfied) 82% 82% 81% 80% 76% 78% 78% 57% 63% % Survey year 73% 59% 74% 71% 55% Current role Current employer Compensation package Compared to other grades, TMICE are least satisfied with their compensation package. Only 6% of TMICE were very satisfied with their compensation package, compared to 27% of FICE. Overall satisfaction levels at their lowest the chart shows the downward trend in satisfaction for all three elements (role, employer and compensation package), at their lowest since first being measured in 2007 Satisfaction with compensation package continues to be lowest in 2010, 59% of members were either very or fairly satisfied with their compensation package. This number has now dropped to 55%, showing growing discontent with this element Gender satisfaction gap with compensation package reduced in % of male and 9% of female respondents were very satisfied with their compensation package, similar to the 2009 s. In 2013 the gap is narrower, 13% of men and 11% of women are very satisfied with their compensation package 35 Salary Survey 2013 UK report Institution of Civil Engineers

36 2.5 Factors that would most improve members working life Factors that would most improve members' working life Clear career path 15% Reduced workload 13% Shorter working week More holidays 10% 11% Less travelling Nothing 9% 9% More recognition (non-financial) Flexibility in working hours 8% 8% Working from home More opportunities for training 7% 7% Other 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% A clear career path was added to the list and makes it straight to the top of the ranking, sending a strong message to employers about the importance of this factor in improving members working life. Little difference between 2010 and 2013 s four out of five factors that would most improve members working life remain the same as in 2010: reduced workload, more holidays, shorter working week and less travelling (all about a better work-life balance) Working from home less of a priority in 2013 now ranked fifth, it has dropped a few positions since the last survey Formal non-financial recognition of achievements a new element on the list ranks seventh in terms of importance to members 36 Salary Survey 2013 UK report Institution of Civil Engineers

37 2.6 Professional development Areas where training needed Areas where training needed 70% 66% 66% 60% 59% 60% 50% 40% 38% 35% 40% 37% 39% 34% 43% 36% 30% 20% 10% 0% Survey year More technical depth (e.g. advancing your specialist knowledge) More technical breadth (e.g. introducing you to new concepts) Non-technical areas such as management or communication (i.e. soft skills) 43% of respondents want training for more technical depth, up from 39% in 2010, but the key area members want to develop is still soft skills. Soft skills top the ranking as in the previous four surveys, the area members feel training is most needed is soft skills such as management or communications 60% of respondents have identified their professional development needs as in previous years, six in 10 respondents have identified their annual training needs and almost one third plan to do so Same demand for improving technical breadth the need for this area of professional development remains at the same level as in previous years at 36% 70% of respondents expect employers to fund training similar to 2010 (69%), but slightly lower than 76% observed in 2009 and 80% in 2008 One in five respondents will pay towards their training 5% of respondents are prepared to cover training costs themselves and 16% would fund the cost jointly with their employer (similar to previous surveys) 37 Salary Survey 2013 UK report Institution of Civil Engineers

38 2.6.2 Employer support for members professional development Employer support for members' professional development Free internal training 64% 75% Fully subsidised external training 56% 57% Partly subsidised external training Training allowance 6% 11% 10% 14% None 8% 11% Other 1% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% The impact of the economic climate on training opportunities is lessening. 39% of respondents say the current economic climate has had a negative impact on their training opportunities, down from 59% in More members receive support from employers the proportion of members offered no support decreased from 11% in 2010 to 8% in 2013 Fully subsidised external training second most popular at 56%, the second most common form of professional development support offered to employees, in line with 2010 results Same views on amount of training provided similar to 2010 results, 53% of members feel they receive enough training to help develop their professional skills, a third are of the opposite view and 14% are unsure Number of training days remains the same on average members spent 4.7 days of training in the last fiscal year. Those who said they received sufficient training in that period spent on average 6.1 days, compared to just 2.7 days for those who said they did not. These numbers are in line with the 2010 s Impact of economic climate on training opportunities is lessening 39% of respondents say the current economic climate has had a negative impact on their training opportunities, a drop from 59% in 2010 Free internal training is most common form of professional development support threequarters of members receive this form of employer support, up from 64% in Salary Survey 2013 UK report Institution of Civil Engineers