After a sharp increase in executive salary coming out of the pandemic, compensation returns to historical rules. The average compensation increases for executives reached a high mark by 2023 to 5.6%, the highest level since 2000, according to data from the PAS Industry Compensation Research Firm. Last year, it seemed that entrepreneurs had reached their limits, withdrawing annual payments to 5.2%.
This year, construction companies seem to further strengthen the portfolio chains, foresee a expected increase of 4.4% in the Executive Compensation Survey of 2025 passing for contractors. However, Jeff Robinson, President of the PAS, says that companies often underestimate salary forecasts from 0.3% to 0.5%. He hopes that annual increases can land about 4.7% this year.
Robinson warns that, although compensation ascens can be in a downward trajectory, the average is still historically high in construction and overcoming other industries. Between 2015-19, the payment hills were averaged between 3.9% and 4.2%, according to PAS. Leaving the pandemic, pay increases increased and increased significantly. The data is now suggesting that the average compensation increases could be traced to pre-pandemic levels. “It is certainly in a trend, but it is still very high compared to other industries,” he says.
At the regional level, New York and New Jersey remain at the end of the increases, with an average of 4.5%. These two states have been ranked at the lowest of the lowest since 2020. The highest average last year, 5.9%, was in the South-Central region, which includes Arkansas, Louisiana, New Mexico, Oklahoma and Texas.
Among the various sectors of the market, the data of the PAS show that construction companies focused on industrial and municipal work gave the highest increases by percentage. Mark Jones, executive vice president and national sales manager of the Kimmel & Associate Executive Search Firm, agrees that the demand is high for the industrial sector executives. Candidates with experience in water and wastewater, as well as the critical construction of the mission, are also very sought after.
In terms of specific positions, Jones says he sees great demand from operations. “Search for project managers and senior project executives; we have seen that they increased last year,” he adds. “Some of the offers surprised me a lot.”
Jeff Wittenberg, CEO of Kaye/Bassman’s construction, says he continues to see a very strong demand year after year in pre -construction, as the lack of candidates for available work offers offers offers. “To estimation and pre -construction, I see less and less people who want to enter this role, to the detriment of the industry,” he adds. “Companies have not made this role as attractive as in operations, both in terms of compensation and in terms of professional career. Most senior executives pass by the management of the project. Why not pre-con-con-cone? “”
In recent years, recruiters have noticed a strong tendency among labor candidates seeking a job-life balance through flexible or remote working hours. Jones says that, although this has been a hot topic from the pandemic, many entrepreneurs reach their limits in terms of what they can offer. “They say that the higher leaders, we know that times change and we must be ready to flex us, but we can only flex us,” he says.
“Project managers and executive project managers searches [have gone] Rise over the past year. ”
– Mark Jones, Executive Vice President and National Sales, Kimmel & Associates
In Case C of construction companies, entrepreneurs often fight between finding executive candidates who can bring decades of experience to a company and hire younger candidates who could lead a very future company. Jones says that many entrepreneurs not only prioritize the need for experience, but also acknowledges that many executives enjoy longer racing than previous generations. “I’m seeing people working longer,” he says. “I don’t see it to change. I think people work because they like to work, not because they have to work. If anyone is again or ten on a scale of one to ten, I think the vast majority of the time, entrepreneurs do not care, as long as they are physically healthy and technically cunning. “
Wittenberg says that while some companies that go through succession planning can seek younger candidates, they also recognize the need for experienced talent. “If [a company] is at a turning point where they are ready to go to the next level, they may have identified an internal candidate [in their succession plan]But this candidate may not be prepared for another five or seven years, “he says.” This is a reason for leaving the company and considering a larger candidate. It is a great concert for the appropriate candidate who is in the last years of his career. “”
