83% of Facilities Managers believe they're underpaid. How did we get here and what can we do about it?

In a recent poll by Cobalt, a massive 83% of facilities managers said they believe they are underpaid.

Going beyond the headline, the most revealing part of the research was who disagreed with it - with the majority of those saying FM salaries are over-inflated being 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?

Why Hiring Managers Feel Salaries Are Overpaid

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

The reasons behind this increase are equally important.

During the height of the COVID pandemic, the FM sector faced a talent shortage, with more vacancies available than suitable candidates to fill them, leading to bidding wars and counteroffers becoming 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 increased scrutiny over value for money in all areas of FM 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.

Why FMs Feel They're Underpaid

From the perspective of FMs, the overall numbers only paint half the picture. FM salaries may have increased by 22%, but according to the BOE, UK inflation over that period was 22.4%. Therefore, in real terms, FMs are no better off, leading them to push for greater pay rises 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, with few tangible goals in place to unlock a salary increase.

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?

Firstly, FM's 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” isn't a strong negotiating tactic. Hiring managers need to see what you’ve tangibly achieved and what impact you’ve had – and if you can connect it to financial savings you’ve made for your company, customers, and clients, then even better.

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 potentials – something we’re terrible at doing in Britain – and in FM especially.

This piece was originally published in the Facilities Management Journal.