Economic instability is clearly affecting the choice and mood of European real estate professionals, according to the latest RICS and Macdonald & Company European Property Market Remuneration survey published yesterday (March 14). Though only 22% of respondents expect an increase in economic activity over the next 12 months, the majority is satisfied with their current employer and salary.
The survey shows that although there were no more pay cuts than last year (8%), only 31% of professionals interviewed received a salary increase in 2011, which on average was 8.4% down from 11.1% the previous year. However, 82% of respondents expressed they are fairly satisfied or very satisfied with their current salary.
The general trend is for higher annual bonuses to be paid, of approximately 23,086.
Again to have an 'RICS qualification' in the real estate sector continues to pay off, as the survey shows RICS members earn 15% more than those professionals who are not qualified by RICS (80,900 towards 70,300 on average), especially those working in Germany, Austria and Switzerland.
Out of the 1, 203 professionals participating in the survey, 33% of professionals interviewed believe that economic activity in the region will decrease in a near future, compared with 11% last year, and 44% believe the market will remain unchanged.
As in other world regions, prolonged economic uncertainty is modifying professionals' preferences, as today job satisfaction linked to an interesting work, career development and job security is becoming more important for professionals than pay rises and more bonuses. A better salary is not any more the main reason to change employers, but better career prospects.
Peter Moore MRICS, Managing Director at Macdonald & Company Property Limited says: "Real estate property professionals working in Europe and the UK have the highest levels of job satisfaction worldwide. 82% of professionals rate themselves as either fairly or very satisfied with their current job. These results are a testament to the high levels of employee engagement achieved by European real estate employers."
Liliane Van Cauwenbergh, Managing Director of RICS EMEA, adds: "In contrast to last year's survey, confidence in economic recovery in the next 12 months is quite low in Europe. However, most professionals feel satisfied with their current job and the way they are rewarded, in particular if they have an RICS qualification.
Factors such as the range of work, management style, and career progression are becoming more and more important than just salary and bonus. The importance of job security has risen almost by 20% since 2010."
Source: RICS Europe