Why not work in… East London?
Tim Cook, Managing Director of Hays Construction & Property, reports on the latest employment trends in East London.
According to Tony Blair, the Olympic Games mean that, “We have six years to regenerate east London. It can inspire new infrastructure, school and hospital building, new housing, the regeneration of derelict sites.
” Winning the Olympics has undoubtedly had a tremendous effect on East London and the surrounding region. Expectations are high and these, combined with increased public and media interest have already proved to be extremely positive for the area."
Well-known employers, such as Skanska and Laing O’Rourke, are in the process of tendering for work or preparing for supporting projects. Plus, there are a whole host of additional large-scale, high profile projects which will put added pressure on employers and necessitate greater numbers of experienced candidates. It is undoubtedly a thriving employment situation at the moment and the influx of work has provided the area with a real boost.
What’s going on?
Over the next 10 years, there will be 10,000 homes built in Barking, Europe’s largest port built in Tilbury, Whipps Cross refurbishment, Stansted Airport’s new runway, the Thames Gateway project, Crossrail, the Romford hospital, the Mile End hospital and of course the Olympics.
Billions of pounds will be spent on projects in the area; indeed, the Thames Gateway work alone will cost around £2billion. The £200million PFI Romford hospital project involves the design of a new acute hospital which will have approximately 800 beds.
According to Michael Piper, manager at Hays Construction & Property, “The volume of development and level of expenditure is extremely high and it is an exciting period for everybody involved. The challenge will be to source suitably qualified candidates, given that there are so many projects taking place at the same time, in such a small geographical area.”
Good for…
The high volume of work means that employment opportunities for construction and property professionals are on a scale that we have never witnessed in the area before. All disciplines and levels of experience are in demand in order to complete the projects on time and on budget.
However, we have noticed particular demand for QS and PQS, due to the skills shortage. We have also noticed a shortage of contracts managers, estimators and design engineers.
For example, we recently filled a position for a housing contracts manager. This position required at least five years experience and a background in housing, new build or refurbishment was specified. The chosen candidate exceeded the criteria and received a salary of £43,000 with a generous package, including a company car.
Piper comments: “The position was relatively easy to fill because the work involved a number of localised projects. They are a big draw to tempt candidates to relocate or commute greater distances.”
Bad for…
The difficulty for employers will be to source enough quality candidates to complete the projects, due to unprecedented increases in demand for skilled, quality candidates.
This may also extend to other parts of London and the South East as experienced professionals move to East London to work on such prestigious projects.
How much would I get paid?
Tradesmen are not yet enjoying the pay rate rises that other disciplines are. However, generally the close proximity to Central London ensures that salaries remain high compared to the rest of the UK.
Employers are reluctant to force salaries up at a greater rate by engaging in bidding wars. The expectation of a continued increase in the volume of work will increase the value of experienced candidates and cause salaries to rise further.
Labourers pay rates have already risen slightly. Luckily for employees in the area, house prices remain relatively low for Greater London - ensuring that high salaries can stretch even further.
How far would my salary go?
- Price of a pint of Carling (the local bestseller): £1.79
- A night at the dogs in Walthamstow (scampi and chips included): £11.50
- Ticket to a West Ham home game: £30
- Average price of a house in Stratford: £224,062
