Blue Arrow Salary Survey

2012/2013

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Introduction
In a time of great economic change, Blue Arrow understand the importance of continued market analysis to ensure clients and candidates alike are receiving nancial and service based rewards in alignment with market expectations. Our comprehensive study of the market has highlighted some encouraging trends, positioning the recruitment market as a whole as relatively optimistic. Companies are hiring and are planning to continue hiring over the next year, with a positive move towards more permanent hires. It is clear that employers are working harder to increase staff benets as a focus on attracting, retaining and developing quality candidates becomes paramount. Key skills amongst candidates are becoming increasingly scarce as top talent is snapped up by those organisations willing to invest. In the following document you will nd detailed statistical analysis of UK recruitment trends in relation to geographical spread, permanent and temporary hiring, benets and legislative changes, with detailed analysis into sectors and individual job roles. Blue Arrow would like to thank everyone who took the time to complete the survey.You have provided valuable opinions on the year ahead and enabled us to deliver this insightful information which we trust will be used as a valuable management tool for many recipients.

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey

The Headlines
The results from the Blue Arrow Salary Survey 2012/13 have highlighted a number of key ndings, including:  Companies in the South & East, Wales and Midlands & West are planning to recruit the highest number of new permanent staff over the next year, with a predicted 31% of respondents from each region planning to recruit  Companies within the South & East region plan to take on larger numbers of both temporary and permanent staff compared to other regions  London is the only area where a single company plans to take on more than 500 permanent staff over the next year  On balance, more companies plan to reduce temporary worker numbers than increase them  Just under half of companies now offer 25 days holiday or more, with 11% offering 29 days or more  Agency Workers Regulations have inuenced the recruitment plans of over 25% of companies surveyed

Overview
In total, over 500 people completed the survey, with a broad geographic spread across the UK (see Chart 1 below) and a wide range of industries (see Chart 2).

Chart 1: Geographic spread 38%

3%

12%

23%

London Midlands & West North Scotland South & East Wales

15% Chart 2: Industry representation 3% 4% 6% 7% 7% 8% 3% 3% 6% 3% 1% 10%

9%

4% 16% 9%

10%

  Agriculture, Fishing & Forestry Catering & Hospitality   Construction & Housing Creative Services   Customer Service & Clerical  Driving, Logistics & Supply Chain Education   Engineering & Manufacturing

  Facilities Management & Building Services Healthcare & Nursing Professional Services   Public Sector & Not For Prot Recruitment & HR   Retail, Lifestyle, Travel, Leisure & Tourism Sales   Science & Alternative Energy

Chart 3: Number of employees

The vast majority of respondents represented either smaller companies (with under 50 employees) or larger companies (with over 1000 employees), providing an interesting insight into small vs large companies (see Chart 3).

26%

31%

4%

5% 9% 13% 12%

Under 50 51 - 100 101 - 250 251 - 500 501 - 750 751 - 1000 1001 +

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey
Most of the organisations who responded to our survey (93%) employ the majority of their staff on a permanent basis, with just 7% employing the majority of their staff on a contract, temporary or freelance basis (see Chart 4).

Chart 4:

On what basis are the majority of your staff employed?

7%

93%
Permanently  On Contract / Temporary / Freelance basis

Recruitment Plans
Looking towards the future, the good news is that many companies across the country plan to recruit new permanent staff over the next year, with the South & East region coming out top overall, showing that the economic growth in this area looks stronger than in other parts of the country (Chart 5). Whilst 43% of respondents from the South & East plan to recruit over the coming year, only 3% of respondents from Wales and 5% of respondents from the North plan to expand their permanent workforce over the coming year - showing a clear North/ South divide.

Chart 5:

3%

8%

Geographic spread of companies planning to employ more permanent staff over the next year

43%

26% 5% 15%

London Midlands & West North Scotland South & East Wales

Looking at the numbers in greater detail, Chart 6 shows us that 10% of companies in the South & East plan to recruit 100 or more permanent members of staff, whilst 59% plan to recruit smaller numbers of ve or fewer permanent members of staff over the coming year.

Chart 6:

Number of planned permanent recruits in the South & East region

3% 28%

10%

59%

<5 6 > 49 50 > 99 100 > 499 500 +

Overall, the South & East region also plans to recruit a greater number of permanent staff per organisation (Chart 7 below) than other areas of the country.

Chart 7:

Predicted number of permanent staff increases

Wales

South & East 500 + 100 > 499 50 > 99 6 > 49 <5

Scotland

North

Midlands & West

London

10

15

20

25

30

35

Number of companies

15% of respondents said that their companies plan to increase the number of temporary staff over the next year, 61% plan to maintain current levels, whilst 24% planned to decrease temporary staff levels (Chart 8).

Chart 8:

Does your company plan to increase, decrease or maintain temporary staff levels over the next year?

24%
Decrease Increase Stay the same

61%

15%

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey
The same geographic bias towards recruitment growth is once again reected in the planned recruitment of temporary staff over the next year, with the South & East region planning the highest levels of recruitment overall (Chart 9 below). However, companies seeking to recruit the highest numbers of new staff are located in the North and Midlands & West regions, showing some tentative signs of positive economic growth in these areas.

Chart 9:

Predicted number of temporary staff increases

Wales

South & East 500 + 100 > 499 50 > 99 6 > 49 <5

Scotland

North

Midlands & West

London

10

Agency Workers Regulations

Looking more broadly at the recruitment industry, Blue Arrow asked respondents if the Agency Workers Regulations (AWR) had impacted upon their recruitment plans (Chart 10). Just over a quarter of respondents said the new regulations had moderately or signicantly inuenced their recruitment plans, whilst the remaining three quarters said it hadnt affected their plans at all.

Chart 10:

23%
Moderately Signicantly Not at all

Has AWR inuenced your recruitment plans?

5% 72%

Industry Pay Levels

The Salary Survey not only looked at recruitment plans, it also reviewed pay scales and benets across a range of key industries.

Catering & Hospitality

Within the Catering & Hospitality industry the most prevalent temporary jobs reected the exible nature of the industry and its requirement to respond to peak demands. Common roles include Waiters and Waitresses, Cleaners and Housekeepers. Chart 11 below shows the typical hourly rates paid to people working within the Catering & Hospitality industry. 54% of these salaries fall within the 5 to 7.49 per hour rate for jobs such as Waiters, Waitresses, Cleaners and Kitchen Porters.

Chart 11:

Hourly rates of pay for Catering & Hospitality staff

27% 54%
5 - 7.49 per hour 7.50 - 9.99 per hour 10+ per hour

19%

Breaking this data down further in Chart 12 below, we can see that the vast majority of lower paid jobs fall within the Front of House Junior roles with the higher paid jobs (paying 15 per hour or more) focused on Front of House Managers and Senior Chefs, who bring with them more experience and knowledge.

Chart 12:

50 40 30 20 10 0
Front of House Jnr Front of House Manager Cleaner Chef Jnr Chef Snr Kitchen Jnr

Hourly rates of pay for Catering & Hospitality staff by role

5 - 7.49 7.50 - 9.99 10 - 12.49 12.50 - 14.99 15+

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey
Looking at the permanent side of Catering & Hospitality recruitment in Chart 13, you can see that the pattern of temporary pay levels is reected within permanent salaries for Junior Front of House staff. Senior Chef and Front of House Manager roles command a much higher salary of 25,000 or above, with a bias towards these higher pay levels in the South & East and Scotland as shown within our survey data (see Chart 14).

Chart 13:

120 100 80 60 40 20 0
Front of House Jnr Front of House Manager Cleaner Chef Jnr Chef Snr Kitchen Jnr

Salary levels of permanent roles within the Catering & Hospitality sector

10k - 14,999 15k - 19,999 20k - 24,999 25k+

Chart 14:

17%

9%
London  Midlands & West Scotland South & East Wales

25,000+ salary distribution

36% 34%

4%

Driving & Distribution

Salary levels for permanent staff working within the Driving & Distribution sector show that lower paid jobs are those being lled by general Drivers or Drivers Mates (Chart 15). The vast majority (55%) of Drivers paid over 25,000 according to this survey were LGV C+E Drivers, proving that there are clear career (and therefore salary) progression opportunities within the eld of Driving & Distribution.

Chart 15:

30 25 20 15 10 5 0
7.5 T onne Driver Category C1 Drivers Mate LGV C Driver LGV C+E Driver LGV Hiab Transport Yardsman/ Category Office Shunter C

Salary levels of permanent roles within the Driving & Distribution sector

10k - 14,999 15k - 19,999 20k - 24,999 25k+

Looking at a regional level in Chart 16, once again the majority (52%) of workers paid 25,000 or more per annum were employed within the South & East region, with the Midlands & West coming in second at 36%. With the Midlands & West being a key logistics hub for the UK, and a number of signicant airports and seaports located within the South & East region coupled with a higher cost of living, these higher pay levels will help to guarantee the retention of good staff locally.

Chart 16:

8% 4% 36%
London  Midlands & West Scotland South & East

25,000+ salary distribution

52%

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey

Industrial, Manufacturing & Warehousing

The Industrial, Manufacturing & Warehousing sector covers a broad range of careers from Labourers and Assembly Line Workers through to Quality Inspectors and Plasterers, which is reected in the broad range of permanent salaries reported in our survey. Most of the careers that fell within the 25,000 and over category were skilled jobs such as Electricians, Fork Lift Truck Operators, Welders and Logistics Controllers, with the bulk of the lower paid jobs comprising Pickers, Packers, Assembly Line Workers and Production Operatives (Chart 17).

Chart 17:

10% 18%

Spread of pay within Industrial, Manufacturing & Warehousing Sector

26%
10k - 14,999 15k - 19,999 20k - 24,999 25k+

46%

When analysing a smaller sample of responses (Chart 18), we compared pay levels for Production Line Operatives and Pickers/Packers to see how pay levels at the lower end of the pay scale differed. Whilst respondents from the South & East employed a greater number of Production Line Operatives at the lower end of the pay scale, it was

London, the Midlands & West and the North that paid higher permanent salaries, whilst Wales, South & East and Scotland paid the lowest levels. The best paid jobs fell within the Engineering sector, suggesting a greater level of skill was required by the Production Line Operatives an observation which was reected in their levels of pay.

Chart 18:

18 16 14 12 10 8 6 4 2 0
South & East Midlands & West London Wales Scotland North

Geographic spread of pay within Industrial, Manufacturing & Warehousing Sector

10k - 14,999 15k - 19,999 20k - 24,999 25k+

Secretarial & Admin

Data from our survey shows that of all of the sectors surveyed, the Secretarial and Admin Sector has the greatest number of higher paid permanent jobs overall, with 49% of jobs paying 20,000 per annum or more (see Chart 19 below).

Chart 19:

Spread of pay within Secretarial & Admin Sector

19%

13%
10k - 14,999 15k - 19,999 20k - 24,999 25k+

30%

38%

This data is broken down further in Chart 20, showing that it is not only senior Admin jobs, such as Team Leaders and Ofce Manager roles that command in excess of 25,000 per annum, a wide range of mid-level Admin roles and Sales jobs also reach this higher salary level.

Chart 20:

180 160 140 120 100 80 60 40 20 0

10,000 14,999 15,000 19,999 20,000 24,999 25,000+

Salary spread of differing Secretarial & Admin roles

Sales Junior Admin Admin Senior Admin

Benefits

When considering a new job, potential employees not only consider the salary on offer, they also consider the additional benets that come with a job, such as holiday days, health care and bonus schemes. We asked a number of businesses what benets they currently offered their permanent staff, starting with the most common benet paid holiday days.

Chart 21 shows the breakdown of holiday days offered by companies. Just over half of all respondents (52%) offered 20 to 24 days holiday, with 11% offering 29 days or more to their staff. Of the 11% of companies offering 29 holiday days it was small enterprises (comprising 50 staff or less) or larger enterprises (with 1,000 staff or more) that were more likely to offer enhanced holiday benets.

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey
Chart 21: 5%
Looking beyond holiday days, a smaller number of companies offered specic benets to staff, with the four most popular being bonuses, exible working, pensions and training & development. Only 3% of our respondents claimed to offer a company car, and 2.4% a car allowance. A small number of businesses offer a wider range of benets including health care (4.2%), dental care (0.6%) and gym membership (1.4%).

Number of holiday days

20 - 24 Days 25 - 28 Days 29 - 31 Days 31+ Days

6%

52%

37% Chart 22:

10 9 8 7 6 5 4 3 2 1 0
Bonuses Car Childcare Company Allowances Vouchers Car Dental Care Flexible Gym Life Pensions Working Membership Assurance

% of companies offering benets

Private Restaurant Save As Medical / Lunch Y ou Earn Insurance Vouchers Scheme

Share Training & Travel Options Development Insurance

Overall, the most commonly offered benets are those that help to develop the workforce further, or are relatively low cost (but still popular) options.

Conclusion
We are living in changing times but there are signs of growth in the future. The recent Agency Workers Regulations have had an impact on a signicant proportion of companies, and undoubtedly changed their approach to recruitment, potentially reducing the number of temporary jobs on offer in the workplace. Blue Arrow remains committed to working closely with companies to deliver the right staff to meet their individual requirements, meanwhile providing our candidates with the best possible jobs and working environments. We will continue to monitor the marketplace and share our insight with others to help develop understanding around sector growth and requirements. We would like to thank our partners for supporting this exercise, and we hope to carry out surveys together in the future to continue our market analysis.

Partners
We are proud to have the Craft Guild of Chefs as the Catering & Hospitality partner for the Blue Arrow Salary Survey Established in 1965 as a Guild of the Cookery and Food Association, the Craft Guild of Chefs has developed into the leading Chefs Association in the UK and has many members worldwide. Members come from all aspects of the food service and hospitality sectors working in a wide variety of positions from students and trainees to top management. No other association boasts such a broad and experienced membership. Aims and objectives As an association representing the interest of chefs, their aims are clear: We are proud to have AA DriveTech as the Distribution & Driving partner for the Blue Arrow Salary Survey AA DriveTech is the UKs leading provider of driver training, assessment and driver awareness schemes. Focusing on experienced car, van and professional PCV and LGV drivers, their business divisions offer specialist education that meets the needs of private, business and commercial drivers... and makes a difference. Established in 1990, AA DriveTech is one of the largest eet risk management & driver education companies in the UK. Based in Basingstoke, Hampshire they also have signicant training facilities close to the Transport Research Laboratories (TRL). The company became part of the AA Group in July 2009.

 To increase standards of professional cooking through

greater awareness, education and training

 To develop careers and prospects of members  To help members develop and maintain their knowledge,
skills and ability

 To promote and participate in all levels of craft skills

competitions in the UK and internationally

 To work with industry, education and the media to win greater

recognition for chefs and their profession

 To endorse and promote the use of British and European

produce, working with suppliers and manufacturers to create innovative menus and recipe ideas

In Partnership with:

TOYOTA MOTOR MANUFACTURING (UK) LTD

Salary Survey

TOYOTA MOTOR MANUFACTURING (UK) LTD

We are proud to have Toyota as the Industrial, Manufacturing and Warehousing partner for the Blue Arrow Salary Survey

We are proud to have Jobs & Careers magazine as the Secretarial & Admin partner for the Blue Arrow Salary Survey Jobs & Careers is a recruitment and training guide aimed at galvanising the most self-motivated, career-minded and proactive job-seekers across the country with expert advice on how to succeed in getting that job and taking the next step on the career ladder via national and regional print and digital editions, website and email newsletter covering the majority of the UK through an extensive and growing list of distribution partners and columnists, which includes the likes of: Blue Arrow, National Careers Service, National Apprenticeship Service, Remploy, Career Transitions Partnership (CTP/RFEA), Training and Development Agency for Schools (TDA), Twin UK, Rathbone, National Union of Students (NUS), Engineering UK, City & Guilds, British Chambers of Commerce, Army Careers, universities, libraries and more.

Toyotas decision to establish a manufacturing operation in Europe was announced in 1989 and Toyota Manufacturing UK was established in December that year. There are two manufacturing plants in the UK representing a total investment in excess of 2 billion and currently approximately 3,100 members are employed. The vehicle manufacturing plant is located at Burnaston in Derbyshire, the engine manufacturing plant is located at Deeside in North Wales. The rst car, a Carina E, drove off the Burnaston production line on 16 December 1992. The Avensis replaced the Carina E in 1997 and in 2008 the third generation Avensis was launched. In 1998 a second model, the Corolla, was introduced and in 2001 the new generation Corolla was launched. In 2007, production of Auris, the new Toyota hatchback, started replacing Corolla. Production of the Auris Hybrid, the rst full mass-produced hybrid in Europe, began in 2010. The processes at Burnaston include stamping, welding, painting, plastic mouldings and assembly and at Deeside machining, assembly and aluminium casting.

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For more information about Blue Arrow please visit www.bluearrow.co.uk or call us on 0800 0855 777