BUSINESS HELPDESK LATEST HELP DESK
WHILE MUCH OF the detail is shared exclusively with BMF members, we can reveal some of the top-line figure around pay rises, employee retention, gender diversity and apprenticeships and compare progress against previous years.
With rising inflation it comes as no surprise that the median increase for salaries across the UK rose to 5% (from 3% in 2022), with two regions, East Anglia and Wales reporting a median increase of 6%. The highest increases were seen for supervisory roles with the median hourly rate for a Yard and Warehouse Foreman rising by 11.3%, and the median rate for Trade Counter Supervisors increasing by 8.5%.
Employee retention ONS statistics for 2018 show the UK average employee turnover rate standing at 17% a year. However, an article in HR Review in February 2023 found employee turnover rates had increased by 9% on average since 2019 and expected them to increase again in 2023. While the churn factor is growing at builders’ merchants they have not yet been as badly affected as some other industries. This year’s Remuneration Survey puts the turnover rate nationally at 21.0% (up from 19.66% last year). The rate varies considerably throughout the country, with London experiencing the highest turnover (31.12%), followed by the West Midlands (26.04%) and East Anglia (25.36%). At the other end of the scale Yorkshire & Humberside (10.62%) and Wales (11.86%) showed the most stability. Voluntary labour turnover rates can be a positive response as an economy grows, but if the churn
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EMPLOYMENT TRENDS
The BMF’s annual Remuneration Survey is one of the key annual reports shared with members showing the salaries and benefits paid to builders’ merchants’ employees at every level, from branch managers to trainees.
level is too great it can lead to skills shortages. There is also the cost and time involved in replacing leavers. Current estimates put the cost at 26% of an employee’s salary, with a 40 day recruitment period.
Diversity in merchanting? We have measured the male:female employment ratio in merchanting since 2017 and little has changed since then. While there were slight swings in intervening years, in both 2017 and 2021 the ratio stood at 85:15 male:female. Last year we saw a small improvement to a ratio of 81:19, but this year the ratio has swung back to 83:17 – which is hugely disappointing.
Merchanting remains a male- dominated industry and we must find new ways to change perceptions about the range of roles required by builders merchants, and the career opportunities offered if we are to attract talented individuals, both
male and female, from a variety of backgrounds into an industry which cannot afford to stand still.
Training
June 2023 saw the launch of the BMF Apprenticeship Pledge with a target of attracting 15,000 new apprentices into the merchant industry by 2030. The initiative is designed to promote apprenticeships not only as an excellent way to train new recruits to the industry, but also as an alternative pathway to support the development of more experienced staff looking to gain new skills or to move into a different role. Looking at the figures for apprentices within this year’s Remuneration Report there is a clear need to broaden the appeal of apprenticeships and educate the wider industry of the vital roles they can play both in developing new talent and upskilling existing colleagues.
In 2022, the number of
apprentices as a percentage of the total workforce rose from 1.19%
in 2021 to 1.72% in 2022. But in this year’s report the national figure had dropped back to 1.09%. Yorkshire & Humberside stood out as the star performer for apprenticeships, at 2.46% of their total workforce. However, four regions fell below the national average, with London (0.15%) the lowest performer.
With 14 companies already signed up to the BMF Apprenticeship Pledge and committing to 11,000 new apprenticeships, it will be interesting to review progress in next year’s Remuneration Survey. BMJ
• The BMF’s Remuneration Report is one of many business reports and services provided to members, who include both merchants and their suppliers. To find out more about the full benefits of membership and how to join the BMF visit
www.bmf.org.uk, email: info@
bmf.org.uk or phone us on 02476 854980.
www.buildersmerchantsjournal.net July 2023
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