BUSINESS HELPDESK MERCHANT HELP DESK EMPLOYMENT TRENDS
The BMF’s Annual Remuneration Survey covering the 12 months ending April 2022 provides some interesting insights into the merchant industry.
THE BMF HAS undertaken its annual Remuneration Report, showing salaries, wages and benefits paid to builders’ merchants’ employees for several years. Most of the financial information is shared exclusively with BMF members. This year, however, it is worth noting the impact of the HGV driver shortage on the cost of employing drivers. For all regions, the median hourly rate for drivers of vehicles over 7.5 tonnes increased by 10.4% in 2022 over the previous year. In the Northern region, the increase was even more pronounced, with median hourly rates increasing by 23.8%. The report also collects data on apprenticeships, gender diversity and employee retention rates within the industry, which provides insight into the working life of our industry as we move beyond the pandemic.
Employee retention The UK average employee turnover rate is generally quoted at around 15% a year, though this will vary considerably between different industries and from region to region. Data collected from BMF merchants for the earlier 2021 Report (covering the 12 months to April 2021) was in line with this figure, with 15.03% voluntarily leaving their job during the year. This, of course, covered the period most impacted by the coronavirus pandemic, when many employees were furloughed for part of the year, and the opportunities to change role were severely limited.
The 2022 Remuneration Report (to April 2022), however, shows clear signs of rejuvenated employment market, with 19.66% changing roles.
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Merchants in London (33.21%) and the South East -north of Thames (24.29%) reported the highest employment churn, while those in the North (9.72%) and North West (10.47%) showed the most stability.
Voluntary labour turnover rates can be a reflection of growing confidence in both the UK’s economic performance and employers’ optimism in recruitment, but if the churn level becomes too great it can lead to skills shortages, which is why the BMF is keen to promote the wide range of opportunities in merchanting to a diverse audience.
Diversity in merchanting
We have measured the male: female employment ratio since our 2017 survey uncovered a wide disparity between the number of men and women working in the sector. While we have noted small year-on-year swings in this ratio, there has been little permanent change. In both 2017 and 2021 the ratio stood at 85:15 male:female. The 2022 report shows a
small improvement to a ratio of 81:19, but before anyone starts celebrating, this was also the case in 2018. While the lack of permanent change across the country is disappointing, three regions have made progress, with the South West reporting a male:female employee ratio of 72:28, East Anglia 74:26 and Wales 78:22.
We must do more to change perceptions about merchanting if we are to attract more young people, both male and female, from a variety of backgrounds into the industry.
Apprenticeships up The number of apprentices as a percentage of the total workforce also showed a small increase, rising from 1.19% in 2021 to 1.72% in 2022. The ratio of male:female apprentices, however, reflects the general workforce at 81:19. Four regions reported apprentice levels at over 2% of the workforce, with South East – north of the Thames leading the way at 3.14%. The same region also had the highest percentage of women apprentices with a male:female ratio of 73:27.
At the start of 2022, the BMF teamed up with LEAP (Learn as you Earn Apprenticeship Programmes) its new delivery partner for the BMF Apprenticeships Plus service, in a move deslgned to support apprenticeship growth throughout the sector. It is too early to assess the impact this will have on apprenticeships, but both the BMF and LEAP teams recognise the importance of promoting the merchant sector to new audiences both within and beyond the construction sector. 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 June 2022
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