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FERNWELLS INSIGHT: APRIL 2016
QS Skills Shortage – are we close to riding out the problem?
Throughout 2014/15 we’ve seen various articles and quotes from a broad range of senior construction figures,
notably leaders from Cost Management consulting, affirming a Quantity Surveying skills shortage. The RICS has led
the way publishing numerous pieces at regular intervals, lobbying government for industry support and launching
their ‘Surveying the Future’ campaign.
The regularly quoted RICS UK Construction Survey findings to inform these view are generally:
 85% of surveyors responding said a lack of qualified candidates meant they had problems recruiting
 64% of survey respondents had particular difficulty sourcing quantity surveyors
 15% of survey respondents noted a shortage of quantity surveyors in the same period in 2011
To highlight the issue bleak outlook headlines appeared such as “Will 2019 be the year the UK stops building?”, “Skill
gaps threaten 27,000 building projects” and “Shortage of quantity surveyors hits crisis levels”. One consultancy MD
commented “…in addition there is a huge shortage of newly qualified surveyors”. To use the volume of newly
chartered surveyors is probably a good barometer of the issue. With this in mind, here’s a closer look at the real data:
While there’s no arguing with the consensus that there’s great demand for QS talent, it is interesting to see that the
reality is an increasing number of QS’s achieving chartered status. Even compared to pre-recession, passes in ‘13-
‘14-’15 average 379 a year, while ’05-’06-’07 average just 277 a year.
Comparing the same years as many RICS informed articles (2011 and 2015), output increases marginally by real
terms 1.58%, dwarfed by a 19% increase in QS pathway APC passes between the same years.
Yr 2005 Yr 2006 Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011 Yr 2012 Yr 2013 Yr 2014 Yr 2015
QS Passes 260 290 281 362 400 324 343 287 323 405 409
200
250
300
350
400
450
QSPasses
QS Pathway APC Passes per Year

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Progress, we might think – and yet the widespread view cannot be wrong, surely? So with a similar Construction
Output, increasing population of chartered QSs, why are we facing these “crisis levels” of talent?
Was it the Middle East construction boom fueling QS emigration? Is it vast programmes of work absorbing resource
(i.e. Crossrail)? The 1990’s recession driving skilled professionals away from construction? A retiring workforce?
There are a variety of causes coming together to create one effect. And this is not unique to 2015, we’ve been exactly
here before. Take a look back to 2007 and in the archives of Building Magazine you’ll find this article: “RICS claims
QS visa victory”. A delta between demand and availability of talent left cost consultancies and developer leadership
shouting for more QS talent. After campaigning, in July 2007 the Home Office agreed to add QS to the national
occupation shortage list. Cue recession. Since the 2007 addition to the skills shortage list Quantity Surveying has
been, and remains, removed from the list. Whether it is reinstated or not, overseas QSs aren’t the long term answer.
In the short term however the issues are talent acquisition and retention, alongside the challenge of market shifting
salaries across QS grades in consulting. As the articles and quotes build up, so too does the Chartered QS’ value –
perpetuating the issue as it becomes harder and harder to move well looked after talent.
In the consulting arena the ‘resource = revenue’ equation is felt more directly than many other industries. The case
for recruitment spend is particularly straightforward for fee earning resource, made simpler still by the skills shortage
and a requirement to be as competitive as possible for the best talent. So while some firms are strategically driving
cost reduction through a reliance on internal recruitment, others – often more entrepreneurial organisations – are
enjoying the access to high calibre passive talent that working with carefully selected specialist agencies brings.
These successes are being regularly reported, with articles announcing financial milestones and sharing success
stories of firms that, ironically, are often spin-offs from the big names that are prioritising process and costs over
opportunity and growth.
The critical challenge for most Cost/Construction Consultancies is the good Project to Senior grade QS. This gap is
created by a blend of issues. Firstly, a drop in graduate entry during the worst of recession, therefore the reduced
numbers passing APC in 2012 (the pass rate dropped a little to 62% that year, but the real picture is a drop in APCs
sat rather than an anomaly pass rate). Those 3-4 year PQE quantity surveyors would be top Project or moving to
Senior about now, if not already. There’s part one of the gap. The next part of our problem is an interesting issue for
cost management firms – the use of Associate grade as a retention tool. Many of those who would, until two years
ago, be content with Senior titles are pushing for Associate now they see their colleagues or peers in other firms
reach the title ahead of traditional meritocratic timeline. And with the title, the inflated salary expectation. There is
some good news however. The pain, we think, may soon begin to ease.
In 2014 and 2015 the APC passes increased well above the numbers we saw pre-recession. Providing we as an
industry, employers and recruiters too, can bring salary expectations back to reality (we routinely see 0-6 months
PQE QSs talking about £50k after 2-3 years in industry and having just got their letters), these larger numbers of
qualifying QSs spells good news as they progress and fill the gaps left at Project and Senior grades by current market
conditions.
In the meantime, using carefully selected specialist agencies to identify and attract the best talent will likely be the
difference between securing top talent and continuing to struggle against market conditions. And for candidates, there
is so much noise in the market from inexperienced agents pushing salaries beyond reality, that it has become even
more important to choose who you work with diligently to ensure a positive candidate experience and maximum
career impact.
FernWells will continue to share its thoughts on the market with a series of Insights combining real data and our
experience delivering recruitment capability to the Construction Consultancy sector. Read more at
www.fernwells.com/blog
written by David Wells, Director at FernWells (david.wells@fernwells.com)