Salary expectation disparities in FM and why we need to close the gap

By Chris Sycamore, Associate Director FM, Cobalt Recruitment

In a recent poll by Cobalt a massive 83 per cent of facilities managers said they believe they are underpaid. That figure might raise eyebrows, but what’s even more revealing is that those who disagreed with the majority who said facilities salaries are over-inflated were directors or other senior leaders within the FM industry.

This divide isn’t just a quirk of opinion. Instead, it reflects a growing tension across the industry that is affecting recruitment, retention and morale in general.

So how did we get here?

Let’s look at the numbers. Since 2021, Cobalt’s data shows that FM salaries have increased on average by 22 per cent, with some roles increasing by as much as 26 per cent. On paper, this looks incredibly generous. If a member of your team is now earning more than £10,000 than they were previously, it’s understandable to think they are fairly paid.

The reason behind this increase is equally important. During the height of the pandemic, the FM sector faced a talent shortage with more vacancies available than suitable candidates, leading to bidding wars with counteroffers more prevalent in a bid to avoid operational disruption and keep teams together.

These factors combined to leave some hiring managers feeling as though these weren’t positive increases, but defensive moves made with their backs against the wall.

Now, with wider economic uncertainty and tighter budgets, there is an increased scrutiny over value for money in all areas of FM as hiring managers face further pressure to keep costs under control. It’s this context that has perhaps fed into the concern that the quality of candidates hasn’t kept pace with the increase in salaries.

From the perspective of FMs, the overall numbers only paint half the picture as, while salaries may have increased by 22 per cent, according to the BOE, UK inflation over that period was 22.4 per cent leaving FMs no better off in real terms. This in turn is leading them to push for greater payrises today.

The matter also isn’t helped by the complete lack of transparency around salary progression from many businesses in the sector. Most FMs I speak with are unaware of what a raise could look like or even worse, what they need to do to achieve one in the first place.

This has an obviously negative effect on productivity. In essence the concept of hard work becomes completely detached from that of financial gain – especially when other FMs are seen achieving large increases from counteroffers or by securing a new role entirely. We saw the trend of “quiet quitting” raise its head in recent years and indeed why wouldn’t you coast in your job when the only obvious pathway to higher earnings involves leaving your role?

So where do we go from here? FMs first need to get better at showcasing their value when it comes to pay. Referencing a colleague’s salary or a competitor’s offer is common but unfortunately “it’s not fair” is not a strong negotiating tactic. Hiring managers need to see what you’ve tangibly achieved and what impact you’ve had – especially if you can connect it to financial savings you’ve made for your company, customers, and clients.

Secondly, FM leadership needs to take the guesswork out of pay progression for their employees. Clear frameworks for earnings and competency ladders don’t just help set expectations but create motivation to work hard. When people know how to improve and where it can lead financially, you’d be surprised at how hard they push themselves, which is a much better way to get “bang for your buck” from your employees.

In essence, we need to be more open around salaries and earning potentially – something we’re terrible at doing in Britain – and in FM especially.