tdm newsletter: January

Welcome to our third newsletter and our first in 2023! In this newsletter, you'll find articles on:

• The economy and housebuilding
• What to expect with property jobs this quarter
• The ‘push back’ to the office – it’s far from over
• Is now the time to ask for a pay rise?
• 3 reasons why accepting a counter-offer could be a mistake?

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The economy and housebuilding

You don’t need to have watched the news every day to know that it’s been like reading the doomsday book. In reality, the media may have been gloomier than they needed to be. In fact, despite miserable predictions for our economy in 2023, it hasn’t been as awful as predicted. For starters, we;

·???????Had a surprise economic growth of 0.1% in November, which resulted in the likelihood that we have managed to avoid a recession in 2022. While we are not out of the woods yet for 2023, this good piece of news does show the resilience of the UK’s services sectors and continual public spending.

·???????Saw interest mortgage rates drop from 6.50% in October (2-year fixed mortgage) to 5.04% in January. At present, a five-year fixed mortgage is 4.60%. And while this is far from the 2% interest rates we saw in 2021, the decreased rates do offer some hope for a levelling of rates in 2023. Economists are hoping that this year will see the economy settle which will allow the Bank of England to ease the pressure in raising rates.?

·???????Learnt from the ONS that average house prices in the UK grew by 10.3% in the year to November 2022. ?While this data may be historic, according to property experts it forecasts a steadier market with prices going in the right direction.

What does all this mean for the housebuilding industry? Well, this positive news shows that while there are still challenges ahead, the current re-stabilizing of our economy and housing market will have a positive impact on housebuilders, buyers, and those of us who work in the property sector. Basically, don’t believe all the gloominess you hear in the paper as we’re a resilient bunch.

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What to expect with property jobs this quarter

The last three years have not followed a singular pattern when it comes to predicting the housebuilding and property sector. That being said, we now know how resilient this industry is and that despite the challenges housebuilders have faced the outcome to deliver has never wavered. Unsurprisingly, the beliefs and setbacks that were clamored in the latter part of last year have seen an impact on new roles this quarter. Companies had no choice but to be cautious as to what may happen in the new year and many are resetting their hiring strategies after the difficulties of 2022.

As far as what to expect, we are continuing to see a steady volume of roles within land and planning, construction, technical and quantity surveying. This is great news as it showcases how the housebuilding industry has no plans of slowing down and will ultimately lead to an influx of marketing, sales, and customer care jobs.

While we expect companies to continue to remain cautious during the first couple of months of the year, we foresee a rapid pick-up of new roles released and rampant hiring for the rest of the year. As with other industries, we can expect to see companies who are investing in their people, whether that be flexible working arrangements, benefits or simply aligned values, will be the winners in securing top talent this year.

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The ‘push back’ to the office – it’s far from over

The remote/hybrid/office working debate is far from over even if it is 2023. There are already clear signs from larger corporations that executives want employees in the office more frequently than what has been allowed/encouraged these past few years. Most notably, tech and finance firms are becoming firmer in requesting 3-5 mandatory office days per week. Noise in the media is predicting these layoffs will see roles re-advertised as office-based roles rather than remote or hybrid over the next few months. If this is the case, then it is clear larger corporations are fighting hard to realign power to the businesses rather than to the employee.

While the majority of employees do continue to advocate for work flexibility, this is made harder due to the current cost of living crisis. From a recruitment perspective, the talent shortage of the last couple of years has enabled candidates to freely set the terms of their work. And while there is still a shortage of talent, the destabilizing of the economy last year (which fortunately we are now seeing settle again) has provided employers with a window of opportunity to set parameters once more.

Fear not, as it certainly isn’t all doom and gloom. Talented employees are still able to negotiate a working style that is positive for both them and the business. And the majority of UK companies are looking to find a stable middle ground. Whereas firms that are pushing for office-based work will have to contend with resistance, diversity challenges as well as deal with a lack of employee loyalty.

What is great to see is the increased usage of open working spaces that provide employees with a choice. If we had to make a guess, we reckon more and more companies will be renting out shared workspaces to provide flexibility for employees while not having to be held ransom by rising rental rates. And why not, as these spaces are a winner for all.

For now though, expect to see more from both sides on the debate of flexible working!

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Is now the time to ask for a pay rise?

There’s no best time to ask for a pay rise. Instead, there’s only the time that makes sense to you. But, before you go marching into your manager’s office, we have some handy advice to help you succeed:

1)????Have your achievements and stats ready

Regardless of whether you are wanting to ask for a pay rise or not, you should always keep a record of the positive contributions you’re making to the company. From day one, we recommend setting up a spreadsheet where you can dump any projects, successes, and stats that showcase what you’ve achieved and how. That way, whether it’s a pay rise, a promotion, or a new direction you’ll have evidence of what you bring to the table.

2)????Know the industry standard & figure you want

It pays to be prepared. Don’t pick a figure out of the air, instead research what your peers are being paid both within your sector and in surrounding sectors. Look over their job descriptions and highlight what you currently do and maybe think about what other tasks you could take on to ensure you will receive either a pay rise or a promotion.

3)????Pick the right time to ask

Now we know we said there’s no right time to ask for a pay rise, but it is best practice to provide a warning to your manager that you’d like to chat about your position. This provides both of you with the chance to research salaries, think about how you’ve been performing, and most importantly not feel like an ambush. We suggest booking a sensible time so that both of you will have fewer distractions than say what you’re likely to have on a typical Monday morning or a Friday finish. Setting the tone will help both of you feel more comfortable in having the conversation.

4)????Be prepared for a no

As with all asks, you need to be prepared for an unsavory answer. There may be many reasons why you don’t get what you’ve asked for. Whatever the case may be, you should always prepare for a plan B. You need to think if you don’t get what you’ve asked for - then what does that mean you should do next? It may be that you need to wait a bit longer and ask again, it may be there’s a promotion with your name around the corner or it could be that it’s time to seek a new role. Whatever the reason, be prepared for all scenarios before you walk into that meeting.

And of course, remember a good company will be fair with pay rises but a great company will recognise your hard work and reward you without you needing to ask. Be sure to have a real think about your situation and don’t be afraid to see if the grass is greener elsewhere.

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3 reasons why accepting a counter-offer could be a mistake?

Counter-offers are when an employee who has received an offer from another company is then offered a matching or better offer by their current employee. The employee then must decide whether they should take the new offer or remain in the post. On occasion, it could very well be that choosing to stay is the best decision for you. However, as we’ve been doing this for a very long time, we can with confidence provide 3 big reasons why accepting a counter-offer is typically a mistake:

1)????The money may be better, but what about the work

For most of us, a pay increase is always going to be tempting. The thought that you can get the money you want without the aggravation of changing jobs is going to feel in the moment like a huge win. This may be the case for some, but for many, the decision to look for a new job in the first place is typically down to an amalgamation of reasons. Reasons such as your relationship with your coworkers or managers, your workload, employee benefits, and so on. Reasons that do not change once you have accepted the decision to remain in post for more money. What typically happens is that a few months down the line, you’ll start looking for jobs again because you’ll be reminded of what made you think about taking the leap in the first place.

2)????Shifting working relationships

Once you’ve presented your boss or management team with a counter-offer from a competitor or similar company your relationship will naturally change. This will be particularly true if you didn’t first try and approach your manager for a 121 on your performance and pay review. While we hope and know this isn’t always the case, for many, there will be a negative shift in relationship dynamics.

From experience, the increased pay that has come about from a counteroffer will also see either an increased workload or more interest being paid to work output. In some situations, this can result in the employee leaving or being let go further down the line. While this is in extreme cases, we do encourage you to either have a chat about your salary first and secondly consider what may change should you accept a counteroffer.

3)????The itch of what if?

Lastly, it is only human nature to think about what if? Like, what if you had accepted the other job? Probably more so on tough days at work, it will be natural to consider what your life would be like if you had taken the new role. If you are able to scratch the itch and not think about the other offer then amazing. But, again for most of us, the knowledge that we could have had something different ultimately see us looking for new opportunities all over again.

From our experiences, there’s always a better way to get the promotion or pay rise you’re looking for than bringing a counteroffer to your manager. Ultimately, this will feel to your company like you are playing a game when it could have been handled differently through negotiations or management. ?We encourage you to consider why you’re thinking about moving on and weighing up the pros and cons of doing so before submitting applications. As recruiters, our job is to get the best outcome for you, which means we can tell you before you apply whether you should stick or twist.?

If you are interested in finding out more about what we do or to see our latest property jobs, please visit us over at tdm-recruitment.com. Alternatively, you can reach out to us at [email protected].