In the realm of workplace safety, hiring health and safety contractors is a common practice for many businesses. Health and safety contractors are ultimately brought in to solve a key problem that a client is experiencing, including anything from providing a gap analysis to a Building Safety Case, coming in as a subject-matter expert for a particular project or assisting during an increased period of demand.
One of the key considerations when hiring a health and safety contractor is how much to pay them; day rates often differ based on certain factors. In this blog, we will explore what influences the day rates for health and safety contractors and why these rates differ from contract to contract.
Typical Day Rate Ranges
While day rates can vary widely, here are some traditional ranges we commonly see. These can be impacted based on the factors discussed further below:
Advisor Level Contractors: £300 - £400 per day
Manager Contractors: £400 - £600 per day
Senior-Level Contractors: £600 - £800 per day
Head of or Director Level: £800 + per day
It's important to note that these figures are approximate and can differ based on the specific circumstances of each project.
IR35 also has an effect on day rates. If a contract role falls inside IR35 then day rates will likely increase to account for all relevant employment costs (Employers National Insurance, Holiday pay and Pension contributions).
There are however, further mitigating factors, which we highlight below. These should be considered when budgeting for a Health and Safety Contractor.
1. Experience and Qualifications
The level of experience and the qualifications held by a health and safety contractor play a role in determining their day rate. Contractors with extensive experience and specialised certifications and technical knowledge often command higher rates. For instance, a contractor with a NEBOSH Diploma and years of experience in a high-risk industry will typically charge more than a less experienced contractor holding only the NEBOSH Certificate. The previous experience in similar environments will also allow the Contractor to more easily ‘hit the ground running’, which is essential in this environment.
2. Industry Sector
The industry in which the contractor operates can impact their day rate due to factors that influence the demand, risk level, skill requirements and regulatory obligations. Higher risk and more regulated environments such as rail, oil and gas, offshore wind, COMAH sites, often tend to have a higher day rate for contractors. From time to time due to changes such as legislation (as we are currently seeing with the Building Safety Act) certain industries also have a higher demand for specialised skills. This increased demand for a fixed pool of candidates with this skill set narrows the pool of candidates capable of performing the role and with the increase demand the day rates generally increase..
3. Location / Travel
Geographical location is another important factor and can have a major bearing on the day rate. Roles or assignments which are in remote areas that require contractors to stay away, or travel longer distances naturally increase the day rate as these costs need to be factored in. On the contrary, roles in densely populated areas where the pool of candidates who do not have to travel long distances or pay for accommodation is larger can result in more competitive day rates. This increased competition, can result in contractors offering more flexibility if they wish to be considered.
4. Market Demand and Supply
Like location, industries experiencing high demand for contractors, such as the construction sector during a building boom (e.g. HS2) will see higher day rates as companies compete to secure top talent.
Conversely, if a sector is undergoing a downturn or if there’s an oversupply of health and safety professionals, day rates may be suppressed.
5. Scope of Work
The complexity and scope of the project will also influence day rates. This is because as a project becomes more complex the availability and size of the Contractor market who can successfully complete the project reduces. Those with the experience, skills and knowledge to undertake these more complex projects command a higher day rate.
6. Contract Duration
The length of the contract is one of the main factors which can affect the day rate. Short-term contracts under three months or one-off consultations often come at a higher rate due to the lack of long-term financial security for the contractor. On the flipside, longer term assignments, particularly those over 6 months are attractive and Contractors may offer a discounted rate in exchange for steady work over a more extended period.
In summary, when determining where to set your budget for a health and safety contractor, several key factors come into play that influence day rates. These include the contractor's experience and qualifications, the industry they work in, geographical location, market demand, and the complexity and scope of the project. Day rates can range from £300 to well over £1000 per day depending on these variables. With more experienced contractors in higher-risk industries typically commanding the upper end of the scale. Additional factors like contract length and IR35 regulations can also affect rates, with short-term or high-risk projects often leading to higher rates of pay.
Ultimately, businesses need to carefully consider these factors when budgeting for a health and safety contractor to ensure they attract the right expertise for their needs.
As experts in the field of placing skilled Health and Safety Contractors across all industries, the team at Irwin and Colton are very happy to advise on rates and discuss the contractor market with no obligation. Reach out to Tom Hewat or one of the team on 01923 432 633 or tom.hewat@irwinandcolton.com