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Description: Arras People's annual Project Management Benchmark Report.
Issued February 2013 Arras People 2013 www.arraspeople.co.uk Management Summary Welcome to the 2013 Project Management Benchmark Report (PMBR) from Arras People. As we leave behind a year that began with talk of a double dip recession and ended with the triple dip recession hot on the lips of so many commentators and doom merchants what better time to take the temperature of the Project Management domain. In order to create this our eighth annual report we took to the electronic streets and polled as many practitioners and those aligned to our domain during December and January. In a year that saw a record return of responses we heard from some of our regular respondents lots of new practitioners and handled the abuse from the takers who seem to get all angry when asked to give something back So a big thanks to all that took the time to contribute as ever we couldn t do it without your support. After analysing the data I am left with the distinct feeling that 2012 was a tough year for many practitioners and whilst the general feeling appears to be that 2013 is going to give us some more of the same the majority view seems to be that the bottom may have been hit and the worst of the economic contraction is over. However the ongoing challenge of low (or no) income increments limited new opportunities and a squeeze on salaries and day rates being offered mean that many of our respondents are feeling the strain as outgoings continue to rise. For many austere times are well and truly upon us but as in any economic cycle there still appear to be those who are doing alright. Some of the highlights of the PMBR include The number of PPM Practitioners who recorded themselves as unemployed dropped again this year to 9% though it would appear that a switch to contracting is still a major influence on this figure. 90% of Public sector workers see salary increases of 2% or less certainly not enough to keep pace with inflation. 33% of Private sector employees see salary increases 2% up 9% on last year. 21% of contractors see their day rates fall whilst another 58% see no change in 2012. Experience is rewarded High end earners both those employed and contractors are doing best in the remuneration stakes as they were the most successful group in 2012. A squeezed middle has occurred for contractors with lower day rates offering a double blow alongside fewer shorter contract assignments. Age continues to be the ism that just won t go away as some older practitioners feel the pressure. The number of PPM practitioners receiving bonus payments grows offering the question Is this the start of a new remuneration pattern of lower basic pay and shared rewards based on success Despite everything 71% of the PPM community enter 2013 with a smile on their face. So whether you are a PPM practitioner looking to benchmark yourself against your peers someone who is looking to enter the PPM domain or an employer looking to benchmark your project management positions we hope you find this year s report a useful window into the UK s PPM community. If you have any questions comments or feedback please do get back to us pmbr arraspeople.co.uk John Thorpe Managing Director Arras People Arras People 2013 www.arraspeople.co.uk Contents About the Survey Recruitment Challenges PPM Accreditation Generation Project PMO Revisited Unemployed Practitioners Economic Climate Confidence & Living Standards 2011 Remuneration Patterns Remuneration Outlook 2013 Contractor Overview Employee Overview PPM Practitioner Reviews Additional Analysis Page 1 Page 3 Page 4 Page 5 Page 6 Page 8 Page 10 Page 11 Page 12 Page 13 Page 14 Page 16 Page 18 Page 22 About The Survey WWD W WWD WWD Z Z Our Data Source Data was collected during December 2012 and January 2013 through an online survey widely publicised across the UK project management community. Through the survey questions we were able to segment our respondents according to their current status thus ensuring increased accuracy of the core data for UK based PPM Practitioners. We had a record response to this year s survey taking the views of 2 140 respondents 1 457 of these being UK-based PPM Practitioners an increase of 18% on last year s core data sample. Importantly the respondents are not all job seekers. Just 27% of the respondents who left contact details being current in the Arras People Candidate Database. This figure is up 4% even though the anonymity figure fell dramatically this year. The temptation of winning an iPad Mini as a thank you may have influenced this. WWD D Z E Z Z PPM Programme and Project Management Z W W WWD WWD K WWD W D D D D D Practitioner Group The core practitioner group remained stable with Project Managers Programme Managers and PPM Consultants making up 80% of the core practitioner group. Within the practitioner group the spread by age again saw a slight shift against the under 34 s possibly reflecting the market demand for experience. When looking at gender balance we saw negligible change though when looked at by role there are noticeable differences with Project Managers at 75 25 Programme Managers 80 20 and Change Managers 55 45. W h E D & E Z WWD W Z h E h E E h W h h E h W Nationality There is a noticeable trend for Non-UK EU practitioners working in the core group which continues to fall. This could be attributed to the tightening visa control or possibly the general state of the UK economy. The EU Nationals are once again led by Ireland (21%) Spain (12%) Greece (8%) and Italy (8%) possibly driven by tough economic conditions in their own economy. Z h The Office for National Statistics (ONS) said the unemployment rate in November 2012 dropped to 7.7% down from the 8.4% recorded last year. Arras People 2013 www.arraspeople.co.uk Page 1 About The Survey Practitioner Mobility UK-based practitioners geography once again shows a predominantly south east and London bias at 46%. Mobility has increased on last year with 19% reporting that they do not live and work in the same geographic region in which they work of these 35% do not have a fixed work location. D E E E t t d Experience Age and Gender In light of the general synopsis that the younger members of the UK workforce are having a tough time in the current economic conditions we looked at the respondent group to see if this was true for our practitioner group. Of those who indicated 1 year experience 49% were in the 35 to 49 age group compared to 36% in the under 34 s. This may support the general market conditions or perhaps reflect that for many PPM is a second career phase built upon a base of experience from their first career phase In the group with less PPM experience there is a shift which may over time become more significant with a gender shift to 60 40 (Male Female). This gender split holds true in the 2 to 3 years experience group compared to 80 20 for those with 10 years of experience. In the respondent group of 10 years experience we also see a drop to 42% from an average of 46% over the last 5 years. This may be seen as the start of the demographic time bomb that many commentators have been discussing where experienced practitioners are leaving the workforce which may in turn lead to a skills shortage. d t z h WWD W 19% of UK Based PPM Practitioners do not live and work in the same geographic area. & W D D D z WWD Z h W W W WWD W Education The trend in educational attainment would also support a change in the demographic of the PPM practitioner group as we see a steady decline in the group who have not attained a degree level education. This group made up 36% of the cohort back in 2009 and has steadily reduced year on year to 26% in the latest survey. In terms of Masters the MBA records 28% PPM 19% Engineering Computing & IT 14% with 6% in Construction. E W h W D E E s h W Arras People 2013 www.arraspeople.co.uk Page 2 Recruitment Challenges Apples and Bananas Based on our respondents views and our own experiences it would appear that the recruitment process continues to be fraught for many PPM practitioners a position that is possibly exacerbated by the ongoing economic conditions here in the UK. In many instances we see what we call the apple and banana syndrome where what is actually required (the apple) is not actually asked for (the banana) leading to unnecessary waste in time effort and money not to mention the loss of goodwill. Experience Personality or Domain Following on from last year s survey we t s t once again asked practitioners and those WWD responsible for hiring them to rank what W they feel is important to them in the hiring W W D W WDW process. Unsurprisingly PPM experience W D D once again came out top of the pile the WWD Z ability to see or sell that somebody has done it (whatever that may be) before. This of course should be easy to spot in a well written CV but what happens when we come to 2 and 3 on our list Our practitioners believe that domain sector knowledge and experience ranks as the second most important attribute in this list and for those that read many adverts vacancies it s not hard to figure out why. However only 21% of our hiring responsible respondents agreed that PPM practitioners need to show a deep understanding of our sector domain if they are to be successful in our business . Further still 61% also agreed that PPM practitioners can easily learn domain sector knowledge and quickly become effective . So all is looking good we have a recognition that sector is not crucial and the PPM skills may be transferable. However on further questioning 32% agreed that when reviewing a candidate CV I will reject them if they do not show sector domain experience relevant to our business . So we are left with a yes but maybe type of scenario at the hiring manager level which when passed down the line to the gatekeepers CV sifters and sorters will probably become reject no relevant experience The recruiters place personality personal style and approach as their 2 which being a softer measure becomes even harder to judge in the first phases of the recruitment process Is the CV still fit for purpose especially when the early sifts are mainly judged against a CV. In fact 75% of the respondent group agreed that cultural fit within our organisation is much more important than where someone worked previously . So yet again we have a situation where a key measure people buying people is rarely positioned and only the lucky few get to a position in the recruitment process where this most important element is tested. It makes you wonder how much talent is left by the wayside and as organisations look to grow over the coming years how they will be able to bridge this gap as talent becomes more scarce Protecting your brand 91% of the practitioners agreed that companies do not realise the harm done to their brand and reputation through poor recruitment practice. There continues to be a high level of cynicism regarding fishing with 60% in agreement that most roles advertised on job boards do not really exist as they are used to collect personal details. When crafting an advert it is worth considering that 74% of practitioners disregard roles that do not state the level of remuneration on offer competitive or market rate is meaningless and 96% believe that a well-crafted job advert helps them to screen themselves in or out of the application process saving time and effort for everyone involved. These are just some of the challenges uncovered. If you would like to discuss these or any other element of the recruitment process please do get in contact with Arras People where your brand is as important as ours. Arras People 2013 www.arraspeople.co.uk Page 3 PPM Accreditation PPM accreditation whilst listed fourth in our what s important in the recruiting process remains an important and contentious element of our domain. Once again we have Prince2 in the top spot along with MSP and the APMP. This year we asked about the new Prince2 Professional to see if there had been any take up for this new offering. The result was for us quite a surprise with 11% indicating that they have this level of accreditation. Maybe there is some confusion here and an element of self-certification as the overall Prince2 number fell compared to previous years whilst a look in our own database found less than a handful W W W D D W D W W K W W W WDW WD W D W W DW WD W D W WDW WD WD WD W E Y h K D WWD 80 20 Accreditation still has its doubters and those who appear able to maintain their career as PPM practitioners without the badges . This figure remains consistent at around the 20% figure. Having a badge as a certified project professional is NO indicator of ability or experience. It merely shows an academic awareness of the principles and the ability to pass an exam at the end of a weeks training. Re-Certification We asked practitioners with the Prince2 accreditation when they achieved this status and for those who fall within the re-certification window what they intended to do about it. Potentially good news for the ATOs as only 7% indicated that they were unaware of the need to re-certify. 54% indicated that they are planning to re-certify whilst the remaining 39% stated that they have no intention. Comments left by respondents were a mixed bag of support through to derision of the accreditation process and the over emphasis on this in the recruitment process An easy way to exclude talent based on a simple keyword search Arras People 2013 WWD Z W W W D D W D W W K W W W WDW WD W D W W DW WD W D W WDW WD WD WD W E Y WWD W D WD WDK K D h W K W W W D D W D W W K W W W WDW WD W D W W DW WD W D W WDW WD WD WD W E Y K WWD K D z Z W Z z 73% Agreed that Re-certification is aimed at driving revenue for the testers and trainers rather than enhancing practitioner capability quality www.arraspeople.co.uk Page 4 Generation Project Having read many books and articles about the attributes of generational cohorts and the impact of this in the workplace we began to wonder if there is any such thing as Generation Project . d d y z D & Taking the lead from the book Managing The Multi-Generational Workforce (Gower) we wanted WWD Z to look across the practitioner group to see if the stronger groupings were by generation of W shared values as we had not seen such a focus & W in previous articles. With differing views on generational cohorts we took the definitions from the book and confirmed that we have four generations within our practitioner group. As can be seen from the table the gender mix is shifting over time as other data in the survey confirms. Personal Values We took the personal values attributed to the differing generations and asked our respondents to identify their top three from the list. Our combined list did not identify which generation the value was attributed to though it is shown in the results table. As we can see each of the generational cohorts provided a consistent top 3 with Flexibility (Gen X) Positivity (Gen Y) and Creativity (Baby Boomer). This also stood firm when analysed across employment type and those currently unemployed. Generation X brought Consciousness into their top 5 solidified with Generation Y who to type also included Moralism. Work Values d D D & d WWD W s h y z z z y z y W s y z 69% of practitioners agree that the strongest team incorporates a mix of generations We again took the book list and applied the same principals which generated the table to the right. Once again we have a tight top 5 featuring just six of the listed values though the ranking was not WWD W as consistent for these. Once again we saw values attributable to all four cohorts included in the top 5 with similar patterns across employment types. Conclusion At this stage we would say that the practitioner group does exhibit a core set of personal and work related values irrespective of their generational cohort which is worthy of further investigation. These shared values exhibited by the group may help in recruitment however the practitioners should still be cognisant of the generational impact on their stakeholders. Arras People 2013 t W K t D K s h z z y y y y z t s y z E K K D WWD W 46% of practitioners disagree that allowances should be made in the workplace based on an individual s generation See more analysis of generational influences at http tinyurl.com cs98rcb www.arraspeople.co.uk Page 5 PMO Revisited This year we decided to look again at the PMO function as used (or not) by our PPM practitioners to see if there have been many changes since we reported in the 2009 PMBR. At that time the P3O guidance and training had recently been launched and since that point we have also seen the MoP (Management of Portfolio) guidance released. First impressions suggested that the number of organisations deploying the PMO function had not significantly changed across the intervening period. However further analysis led us to the conclusion that it appears to be size dependant and the organisations with over 200 employees paints a fairer picture seeing a 75% uptake of the PMO in some form or another. What s in a name Having established they exist we were intrigued to find out how they are labelled within organisations where practitioners are part of the PMO function. As can be seen in the table to the left the Project Management Office came out top of the pile with Portfolio making a small impression at 8%. Amongst the others there was a response which may offer some insight Programme and Project management office - there is much confusion z z E WDK WDK WDK W W W K WDK D D D K K K Having established the name we then asked the respondents to indicate the statement that best represents the function of their PMO. As can be seen in the table below this delivered a result that could support the confusion comment with 21% indicating they offer D K Portfolio services W K whilst just 8% WWD W indicated that this is K what they are called K D WDK & The PMO does what To further quantify we asked the respondents to categorise their organisation s PMO and the results were very much in line with the responses reported back in 2009. Two potential points of concern jump from this table the first being the lack of progress in taking the PMO up the maturity ladder remaining at 6% over the intervening years. Secondly and possibly more K worrying is the 24% return for Ad K hoc which may suggest that the PMO WDK has failed in establishing its value or position within the organisation. Primary responses to Other indicated immaturity and PMOs under construction. Further flags appear when the same respondents were asked about their PMO which further suggest that the challenge is still real in E terms of establishing their d WDK d WDK position and value in the d WDK organisation. t WDK 42% agree that the PMO is seen by many as an unnecessary level of control and 37% as unnecessary overhead suggests that there is much work to be done. WDK Arras People 2013 www.arraspeople.co.uk Page 6 PMO Revisited Does it measure up Various papers including The State of the PMO 2010 (www.pmi.org) suggest that an effective PMO will help organisations reduce the number of failed projects deliver more projects under budget improve productivity in the organisation deliver more projects ahead of schedule increase cost savings for the organisation & WDK W Z We asked our respondents to give their PMO a star rating (1 to 5) against these key deliverables the averaged results being plotted in the chart to the right. Self-measuring is always deemed to be overly positive and as such our respondents paint a picture that confirms there is still much to do. W PMO but not part of it We asked the 38% of respondents who have a PMO in their organisation but do not see s themselves as a part of it Which E benefits does your PMO function K deliver to you a question that WDK allowed them to tick all that applied. As we can see in the table to the right advice and guidance in best practice all the way to administrative support hit highest on the scales. Again worryingly for the PMO practitioners 30% of this group indicated that they can see no obvious benefits. The 8% of Other could be distilled into support of the Programme Project management task. PMO - Does it deliver what it says on the tin We have no PMO Finally we posed a question to the 25% of respondents working in organisations with over 200 employees to uncover the reasons for your organisation not having a PMO function E K W E t d Size of team and number of projects E WDK are obviously sound business-based reasons for the position which in turn possibly tie into the concern that it would be seen as an unnecessary overhead. There would however appear to be some latent demand which is currently being held back by the lack of executive buy-in to the concept (36%) and the belief that it is an unnecessary level of control (13%) . 46% of respondents agreed that they find it hard to recruit suitably skilled personnel for their PMO... Have you called Arras People We would love to help Arras People 2013 www.arraspeople.co.uk Page 7 Unemployed Practitioners Unemployment amongst the UK-based PPM practitioners has once again fallen from the 12% recorded last year and the recorded high of 15% in 2010. The figure however still remains higher than the 7.7% reported by the Office for National Statistics (ONS) for November 2012. Z h h h W WWD W Z Is it my age Though legislation was introduced to outlaw agebased discrimination for both young and old back in October 2006 it has remained a consistent complaint by many who are seeking to change role or get back into employment. We can clearly see from the unemployed practitioner group that as a percentage the 50 age group continues to rise hitting 46% in the current survey. It may be too simple an analysis to say that this is simply a culling of the older practitioners the fact that there has been limited stunted entry-level opportunities for new (younger) practitioners may also be a contributing factor as the age profile has changed. The other potential contributing factor to this equation is salary expectation in a market that appears to be extremely cost sensitive. It is not always easy for organisations to employ a practitioner on a rate that is substantially below previous earnings even though it may look to offer a great return. The suspicion often exists that the practitioner will be off out the door as soon as a better opportunity arises thus the risk profile becomes unacceptable. As we look at the period of unemployment the impact on the 50 age group becomes more significant especially so if you are also male. We see a 80 20 gender split across all working and unemployed practitioners but it moves to 85 15 for those unemployed for more than a year. In a similar vein the percentage split for the 50 age group increases from 46% to 60% of the pool. W W WDK WWD D D D & h h W I am firmly convinced that age discrimination is applied on a blanket basis regardless of suitability or experience. (50 Male Project Manager) z z WWD z z z z h h W W h W Long-term unemployment As we can see in the graph to the right the profile of unemployment has not changed significantly over the past year. We see slight fluctuations up to 6 months but then a solidity impacting those who have been unable to quickly secure a new role post unemployment. D D D Arras People 2013 www.arraspeople.co.uk Page 8 Sector Impact When the previous sector is analysed for the UKbased unemployed practitioners it is interesting to see that the Public sector numbers have not increased as anticipated in the last survey. This suggests that the anticipated levels of Public sector redundancy did not materialise during 2012. If we look at those who changed job during this period due to having been made redundant the figure is just 6% of those making a move. W W h h E&W d W 2012 has been a very bad year for employment and I can see nothing to indicate 2013 will be any better Previous Income Looking at previous income we can see a shift over the last 12 months with the 40K to 59K earning band increasing by 4.5% whilst those earning less than 30K significantly reduced. In this earning band 63% are Project Managers and in turn they account for 73% of all those unemployed who previously worked in the Public sector and 55% of those who worked in the Private sector. W h W Z Finding Opportunity The unemployed practitioners use a broad spread of sources when looking for roles broadly aligned to their peers who are currently in work. They also have a significant presence in LinkedIn with 94% indicating that they have an account. A significant difference here is that whilst 70% of Contractors indicate that they have been approached via LinkedIn and 67% of employees report likewise just 54% of the unemployed say they have been approached K Z D W E d W E t E D K h Personal Confidence The unemployed practitioners whilst having a selection of observations about those involved in the recruitment process and their methods of working also display some stoicism and hope for better things in 2013. Overall on the Arras People confidence scale we can see a slight shift from last year with a 6% increase in positivity even though for some the current climate is extremely challenging both professionally and personally. h Always up beat ...........New Year new challenge Arras People 2013 www.arraspeople.co.uk Page 9 Economic Climate UK PLC With so many mixed messages during 2012 the media peddling doom the economists unable to work out what the statisticians were telling them business confidence still being buffeted by National European and International events it was hard to tell what was really happening Our respondents to last year s survey suggested an outlook that was challenging and from the data it would appear their prediction came true. As we head into 2013 the respondent group appear more upbeat about what is happening in their sectors. Those feeling buoyant increased by 7.8% led by the Private sector ( 10.2%) with a similar increase in those anticipating steady normal growth. There is still an underlying concern with 14% anticipating contraction and 10% hard times but it would appear that the general feeling is back on a positive track. W & d E E W E t W E d h WWD W W Hiring and Firing In line with the overall confidence this has also impacted the practitioner groups concern about job losses in 2013. The Public sector respondents are still expressing a higher level of concern with 49% expressing some level of discomfort in turn it has dropped to 37% for those working in the Private sector. Whilst still not great figures they are a definite improvement on the results from previous years. When asked about their views in terms of their organisations hiring or firing we again see some increased levels of confidence as maybe our respondents are feeling that the worst may be over. Whilst we have not yet moved to a position where major hiring is anticipated we have seen a move of 6% in those who believe that there will be some hiring during 2013. Client View We asked respondents who are responsible for hiring PPM practitioners for their view of hiring in 2013 and 37% indicated that they believe their PPM headcount will increase during the year. 53% indicated that they expect headcount to remain stable over the year. On the downside 57% indicated that they do not see remuneration rates changing during 2013. Arras People 2013 E E & s s & E E t h WWD W W W K E D E s t h s K E D E t h & & s Page 10 www.arraspeople.co.uk Living Standards & Confidence Living Standards We once again asked our working UK-based respondent to compare and indicate their circumstances compared to 12 months ago. Looking back over the last 3 years we can see a pattern that 27% of respondents report that they feel better off (average of 8% much 19% slightly) even with all the economic uncertainty and challenging times. At the same time we can see a decrease in those feeling worse off down to 38% (-4%) this year compared with 49% in 2009. Looking at this picture in more depth from 12 months ago we see an increase of 2.9% of contractors feeling better off against -1.4% of employees. For those feeling worse off we see a change of -5.2% for contractors against -2.6% of employees. Across sector we can see a significant difference between those feeling worse off with 49% (down from 53% last year) of those working in the Public sector feeling this way compared to 35% (down from 38% last year) in the Private sector. Personal confidence exists regardless of my organisation or the economic situation W z D t K t K K D K D D t t t K K K K h WWD W D D t t t W K K K K W h WWD W Personal Confidence Using the Arras People confidence scale we took the temperature of our respondents personal confidence heading into 2013. As ever they proved to be a hardy lot maybe summed up by the quote above The positives have it once again with 71% up 15% on last year. Those feeling neutral took a fall of 6% whilst those not feeling too great about the outlook dropped 6% to 17% of our respondent group. D D D & t t K K K K Most Confident 1. 93% of those feeling much better off also have a positive outlook going into 2013. 2. Females at 75% are more confident than their male colleagues who managed 70%. 3. Under 34s with 84% compared to their seniors in the 50 group who hit 63% W W D WDK W WWD t h W h D D W Arras People 2013 www.arraspeople.co.uk Page 11 2012 Remuneration Patterns The rate of inflation in the UK as measured by the Consumer Prices Index (CPI) remained at 2.7% in December 2012. Meanwhile the rate of Retail Prices Index (RPI) inflation rose slightly from 3.0% to 3.1% according to the Office for National Statistics. Having started the year at 3.6% and 3.9% respectively and with continuing pressure on remuneration levels 2012 looked challenging for our respondent group from the onset. 87% of contractors and 85% of employees entered 2012 anticipating raises that would fail to challenge the inflation figures. As we can see in the table the forecast would appear to have come true with 72% reporting that their remuneration levels failed to rise above 2% whilst 13% indicated a rise between 3 and 4%. E & D h W W Z Employees Private sector employees achieved the best changes in remuneration as a group with 38% indicating a rise of more than 2% compared to 16% in the Public sector where the Government imposed squeeze on pay continues. Public sector respondents reported that 50% saw no change in their earnings with a further 11% indicating that their remuneration fell. In the Private sector the picture was not as bleak and small steps forward continue though based on results from the last five years many people have had significant real reduction in earnings that will be hard to recover. For this group 29% indicated raises between 1 and 2% with 28% at no change and 4% in the negative. W W W Contractors Contractors on the whole saw another challenging year in terms of their rates with 43% indicating no change irrespective of the sector in which they were working. Possibly worse news is that 21% indicated a fall of 8% in 2012 that figure rising to 26% in the Public sector against 17% in the Private. Overall for a second year running 79% of the contractors have seen their rates failing to match the level of inflation. Arras People 2013 W Z W W www.arraspeople.co.uk Page 12 Remuneration Outlook 2013 In view of the ongoing challenges with regards to remuneration in the UK we have changed the scales for this question in order to show greater granularity which reflect the tougher times we are in. & h & h W W Employee Outlook As can be seen in the table the positive trend continues and those anticipating their base remuneration to fall in 2013 is down to 3%. Whilst those anticipating no change is still high at 36% it is a step in the right direction from the 52% recorded two years ago. Assuming inflation were to meet the target rate of 2% we still see hard times in 2013 as 73% of our respondents do not anticipate any increase over this figure. Across sector this is also reflecting the ongoing cap on Public sector spending with 90% anticipating that they will fail to beat inflation if it were to meet the 2% target. In the Private sector there is again an anticipation of further catch-up with 33% anticipating a rise above the nominal 3% inflation figure. So all looks set for a tough 2013 for the majority of employees when other tax changes are factored into the cost of living as well as baseline inflation. W h & W W Contractor Outlook The PPM contractor community who responded to this year s survey indicate that they see 2013 as another year where finding an increase on their day rate will be a challenge. 18% are anticipating that day rates will continue to fall this being consistent across all sectors though it is an improvement on the 28% back in 2009. Those anticipating no change in terms of rates in 2013 are a substantial 59% of respondents which again is consistent across sectors. & h & h Z W W Z W Z Of those anticipating some rise in their rates during 2013 again it is consistent across sector at 23% the noticeable difference being that 14% of those operating in the Private sector anticipate rises 4% against just 8% for those operating in the Public sector. h & W W Arras People 2013 www.arraspeople.co.uk Page 13 Contractor Overview D h h z d K The UK-based contractor group made up 33% of this year s response which is slightly down (-2%) on last year s figure but still 4% up on 2010. The 50 age group accounts for 49% of the practitioners with 42% being 35 to 49 and 7% under 34 (2% chose not to disclose). Gender split remains at 80 20 Male Female due to the domination of the older practitioners. By role the largest grouping is Project Managers who account for 42% of the respondents followed by PPM Consultants with 23% and Programme Managers with 17%. 48% have been contracting for over 5 years and 58% have over 10 years experience in their chosen specialism 67% have more than 10 years experience in the field of PPM. As we saw last year the number of new contractors i.e. contracting 1 year has been heavily impacted by those who found themselves unemployed rising to 45%. At the other end of the spectrum 8.5% of the contractor cohort moved back into permanent employment during 2012. So even with these challenging times it does not appear to be putting off practitioners from taking the leap. Mode of operation remained pretty much static with Limited company still the favourite vehicle for delivering services and the introduction of the AWR does not seem to have had a negative impact on the numbers using the services of umbrella companies. K h W Z W K z h W z Z 45% of those contracting for less than one year came from a position of unemployment D D D D d D D D D Contract Challenge As can be seen in the table to the right the contractor population has had a challenging time during 2012. Those contracted for 1 to 3 months has risen again year on year and substantially since 2010 ( 8%). It would appear that the new to contracting group have inflated this number as 48% have only been contracted for 1 to 3 months compared to 8% for those with 1 to 4 years experience and 15% for those with more than 5 years. 32% of contractors starting 2013 with no contract is a 5% rise on last year which suggests that there are substantial challenges ahead for many irrespective of longevity as a PPM contractor Arras People 2013 D E D D D W t & h W W W www.arraspeople.co.uk Page 14 Contractor Overview Day Rates Contractor day rates supplied by our respondents show a distinct step change from the 2011 data which reflects other data suggesting continued pressure. As we can see in the year on year comparison of day rates those earning 650 have seen little change over previous years with a similar picture for those earning less than 300 per day. However what we can see is a squeezed middle where the number of contractors earning between 450 and 649 has reduced by 6%. The largest grouping is now at the 450 to 449 range at 14% whereas the largest grouping back in 2010 was the 450 to 499 group. W Z z z W W Z Sector Changes When viewed by sector the shift in rates becomes more apparent. The squeezing in the middle for the Private sector contractors shows an 8% reduction in those earning between 500 and 700 per day and an increase of 12% in those earning between 300 and 499. Some high end contractors have managed to draw higher rates in the 750 to 1 000 range. In the Public sector we can also see a significant difference in the data reported at the higher end we can see peaks at the 500 to 550 rate which is 2% and also the 650 to 750 range at 5% suggesting that spending on more senior practitioners continues. Meanwhile it would appear to be a crushed middle with the numbers earning between 350 to 499 dropping by 21% and at the lower end of the scale we see an increase of 14% in those earning between 200 to 349 per day. W W Z I have worked extensively in Public sector and those roles are extremely thin on the ground. Contractor Challenges Once again finding lack of opportunities with 39% came out as the top challenges for contractors looking ahead to 2013 followed by differentiation themselves in a crowded market place. It would appear that for some 2013 will be a tough and testing market especially if rates continue to be challenged with employers expecting more for less. Arras People 2013 & D K Z h W www.arraspeople.co.uk Page 15 Employee Overview The UK-based employee group made up 58% of this year s response which is up 5% on last year s figure and up 2% on the 2010 return. Overall the respondent group grew by 20% in terms of completed surveys. The 35 to 49 year old make up the largest group at 52% whilst the under 34s account for 25% (-2%) and the 50 have 23% ( 2%). By gender we have 67% male and 33% female compared to 70% and 30% last year. By role the largest grouping is Project Managers who account for 55% of the respondents followed by 18% for Programme Managers. By sector 68% are currently working in the Private sector 25% in the Public sector and 7% in the Third Sector which shows no movement from last year s respondent set. Of these 80% work for an organisation 200 employees (no change). Stagnant Market Looking at the number of employees who have been with their employer for less than 1 year we see a significant drop of 8% down to just 20%. Of this group 23% took up permanent employment in order to secure a steady income which they could not secure in the contracting market and 16% had been impacted by redundancy. When asked if they thought that economic recovery would trigger mass movements in the labour market 72% of our employees thought that the UK economy would not recover sufficiently in 2013 for this to happen. 35% agreed that they will have to change employer if they are to make up the drop in salary and benefits that they have suffered in recent years potentially a major issue for employers once recovery commences and the labour market heats up Low Wage Economy Looking year on year the overall picture seems to have two threads firstly at the 50K we are seeing salary increases in a similar way as to what is happening in the contractor market where experience is being rewarded. However roles which were previously paid in the 30K bracket are dropping into the 25- 30K range this is especially apparent in the Public sector which saw -11% and 10% (all - 4%) respectively in terms of distribution across the salary bands. W d & d h d K D & W h W z z W W W E&W W D & Arras People 2013 www.arraspeople.co.uk Page 16 Employee Bonus & Benefits 79% of employees agree that it is better to have a job with reduced income rather than no job Incentivised Pay It would appear that there is a move towards more incentivised pay through bonus payments to the employed PPM practitioner group. This year we have seen a move to 50 50 between those that do and those that don t an increase of 9% from last year. Across sector bonus payments still appear to be more widely used in the Private sector with 59% of respondents compared to 30% in the Public sector though that figure has risen. Whilst the use of incentivised bonus is still more prevalent on higher salaries (67% of those earning 75K base salary) the data would suggest that incentivised bonus is being used more at both the lower salary bands 40K 10% as well as the higher bands 50K 10%. This may well be driven by the economic uncertainty where employers are looking to reward their employees when the business delivers successful outcomes without having the burden of a higher guaranteed salary overhead. W W W h W W W h E h E z W W & D K W W d E Benefits Overall the picture regarding benefits has remained stable since we first asked this question 12 months ago. W D Employee Challenges Employee challenges for 2013 show a slight change over the results of last year. Analysis would suggest that they reflect the reality of the current stagnation in the economy with an emphasis on making the most of current position and employment rather than exposing oneself to the external market. Attaining a better work life balance is once again prominent and this combined with the need to meet the expectation of doing more with less suggests that the practitioner group are still being worked hard. Securing a decent pay rise shows a slight increase but this would appear to be tempered for the time being by the overall market conditions. h D W W K h W K Local government sees anyone over 55 as ready for retirement and certainly not promotion material Arras People 2013 www.arraspeople.co.uk Page 17 Programme Manager Review Working Programme Manager Stats 17% of our UK working practitioner cohort 10% are under 34 whilst 38% are 50 78 21 Gender split Male Female 79% have a degree level education 8% have a Masters Degree in PPM 71% are aligned to a professional body 47% are APM members 11% PMI 40% have more than 10 years experience 63% have Prince2 accreditation 57% of these achieved pass before 2008 35% are Contractors 65% Employees 93% have a LinkedIn Account 75% were approached via LinkedIn during 2012 22% feel better off than 12 months ago Average salary for Programme Managers 59 933 up 2% on last years data W W W D Z W W D s E W D s 66% work 40 hours in a typical week 24% work 10 hours over contracted per week 26% have no direct reports 13% have 10 8% have no budget 33% have 5M 45% with current employer 5 years 60% received Bonus Payments in 2012 75% received Benefits in Kind in 2012 69% had inflation salary rise in 2012 72% anticipate inflation salary rise in 2013 25% of employees happy in current role 13% have been contracting for 1 year of which 50% were previously unemployed 78% had inflation day rate rise during 2012 78% anticipate inflation day rate rise in 2013 36% saw new opportunities decrease in 2012 49% saw increased pressure on day rates in ( Assumes inflation at 2.1%) 2012 W E W D Z Z Arras People 2013 www.arraspeople.co.uk Page 18 PPM Consultants Working PPM Consultants Stats 12% of our UK working practitioner cohort 7% are under 34 whilst 47% are 50 78 21 Gender split Male Female 82% have a degree-level education 8% have a Masters Degree in PPM 67% are aligned to a professional body 33% are APM members 15% PMI 54% have more than 10 years experience W W WWD Z 4% are Registered Project Professionals 45% are not aware that the APM is bidding for Chartered Status in the UK 71% are Contractors 29% Employees 93% have a LinkedIn Account 68% were approached via LinkedIn during 2012 Average salary 63 325 with a range from 36k to 102K W WWD s E WWD s 24% feel better off than 12 months ago 65% work 40 hours in a typical week 29% work 10 hours over contracted per week 44% have no direct reports 13% have 10 22% have no budget 24% have 5M 50% with current employer 5 years 58% received Bonus Payments in 2012 86% received Benefits in Kind in 2012 70% had inflation salary rise in 2012 70% anticipate inflation salary rise in 2013 31% of employees happy in current role 10% have been contracting for 1 year of which 11% were previously unemployed 76% had inflation day rate rise during 2012 84% anticipate inflation day rate rise in 2013 38% saw new opportunities decrease in 2012 48% saw increased pressure on day rates in ( Assumes inflation at 2.1%) 2012 Arras People 2013 www.arraspeople.co.uk Page 19 W E WWD Z Project Manager Working Project Manager Stats 53% of our UK working practitioner cohort 24% are under 34 whilst 27% are 50 71 28 Gender split Male Female 71% have a degree level education 5% have a Masters Degree in PPM 59% are aligned to a professional body 37% are APM members 8% PMI 45% have more than 10 years experience 63% have Prince2 accreditation 35% of these achieved pass before 2008 30% are Contractors 70% Employees 92% have a LinkedIn Account 64% were approached via LinkedIn during 2012 29% feel better off than 12 months ago Average salary 44 252 with a range from 15k to 100K W W D Z W W D s E W 48% work 40 hours in a typical week 13% work 10 hours over contracted per week 54% have no direct reports 7% have 10 15% have no budget 14% have 5M 39% with current employer 5 years 45% received Bonus Payments in 2012 68% received Benefits in Kind in 2012 69% had inflation salary rise in 2012 75% anticipate inflation salary rise in 2013 32% of employees happy in current role 17% have been contracting for 1 year which 48% were previously unemployed 82% had inflation day rate rise during 2012 82% anticipate inflation day rate rise in 2013 37% saw new opportunities decrease in 2012 41% saw increased pressure on day rates in ( Assumes inflation at 2.1%) 2012 of W E W D s W D Z Z Arras People 2013 www.arraspeople.co.uk Page 20 Programme Office & Portfolio Managers Working Programme and Project Management Officer Stats (combines Portfolio (4%) PMO Manager (7%) and PMO Support (4%)) W WDK Z 15% of our UK working practitioner cohort 22% are under 34 whilst 27% are 50 65 35 Gender split Male Female 73% have a degree level education 6% have a Masters Degree in PPM 59% are aligned to a professional body 40% are APM members 13% PMI 26% have more than 10 years experience 56% of managers have Prince2 accreditation 47% of these achieved pass before 2008 27% are Contractors 73% Employees 96% have a LinkedIn Account 74% were approached via LinkedIn during 2012 29% feel better off than 12 months ago 55% work 40 hours in a typical week 20% work 10 hours over contracted per week 31% have no direct reports 8% have 10 27% have no budget 29% have 5M 43% with current employer 5 years 59% received Bonus Payments in 2012 78% received Benefits in Kind in 2012 66% had inflation salary rise in 2012 66% anticipate inflation salary rise in 2013 36% of employees happy in current role 31% have been contracting for 1 year of which 43% were previously unemployed 75% had inflation day rate rise during 2012 77% anticipate inflation day rate rise in 2013 38% saw new opportunities decrease in 2012 28% saw increased pressure on day rates in 2012 ( Assumes inflation at 2.1%) W D W W W D W WDK Z Z WDK Z Z WDK Z Z Z Arras People 2013 www.arraspeople.co.uk Page 21 Additional Analysis Additional analysis. Through the 2012 12 Project Management Census we have collected a wide-ranging data set about the Programme and Project Management domain here in the UK and beyond. As well as practitioners the data includes the views of those working outside of the UK those looking to break into our profession and also students who are currently studying the subject. As ever the 2013 Project Management Benchmark Report contains a slice of the collected data and further analysis will be ongoing throughout 2013 to uncover other information which may be of interest. The ongoing analysis will be released through Arras People Web Site - www.arraspeople.co.uk Tipoffs - the Arras People Project Management Newsletter How to Manage a Camel - Our Blog - www.arraspeople.co.uk camel-blog In preparing this document we acknowledge that all trademarks used are the property of their respective owners. All trademarks are recognised. The copyright to the content in this document resides with Arras Services Limited and all content remains the property of Arras Services Limited. Unauthorised Reproduction is Prohibited. Arras People 2012 www.arraspeople.co.uk Page 22 Arras People Project Management Recruitment Specialists Phone 0845 680 6444 Fax Web Email 0845 680 8047 www.arraspeople.co.uk pmbr arraspeople.co.uk Arras People 2013 www.arraspeople.co.uk