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Legislative & Special Projects, Pine Bluff Sand & Gravel
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Construction Staff Wages Expected to Rise by 3.4% This Year

June 8, 2017

Construction staff wages rose by 3.6% in 2016 and contractors are projecting wages to increase an average of 3.4% in 2017, according to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc. Based on their Construction/CM Staff Salary Survey, PAS reports that increases appear to have leveled off, as noted in the following chart. PAS also points out that historically predictions are typically about .5% low, so year-end 2017 should exceed 3.4% and maybe even 2016’s 3.6% increase.

PAS does warn that it is now more challenging to analyze trends and interpret the resulting implications, clarifying that just because the overall average increase was 3.6% in 2016, it doesn’t mean everyone received a 3.6% increase. Some key positions were higher while some support positions were lower. In other words, not all positions are escalating equally and the need to monitor base and variable pay by position and job family is integral.

This edition of CCQ also comes with an addendum which highlights general benefit and healthcare trends, and offers a list of more than 90 benefit/perk practices not covered in the PAS annual Benefit Survey for Contractors. The report advises readers to expect more contractors to use the “total rewards” approach including work-life effectiveness, career development, and recognition programs. “Competitive base salary and variable pay are certainly essential,” reminds PAS, “but watch for the contractor with the most creative HR and Compensation practices to win the war for talent.”

Jeff Robinson, president of PAS, Inc., will present "The Big Pay Disconnect. Yes, Money Matters at AGC's 2017 Construction HR and Training Professionals Conference, October 11-13, 2017, in Phoenix, AZ.

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