NEW data has revealed the construction industry makes one of the highest profit per employee of any UK industry – with an average earning of more than £110,000 per employee each year.

The research, conducted by the experts at money.co.uk business credit cards, analysed the biggest UK companies to reveal which sectors and businesses have the best profit per employee rate.
Understanding and enhancing employee profitability is vital for businesses seeking to maximise their financial performance and competitive advantage.

The top five UK industries with the highest earnings per employee:
Rank Industry Average earnings per employee
1 Mining £163,490
2 Construction £110,867
3 Beverages £34,119
4 Professional services £26,039
5 Food £12,294

The construction industry ranks second, with average earnings significantly lower than mining but still impressive. This sector benefits from solid demand in the housing market. Companies like Bellway and Taylor Wimpey show how efficient project management, strategic land acquisitions, and focusing on market needs can generate high value per employee.

Despite fluctuating economic conditions, the construction industry’s steady growth has contributed to its strong position.

Construction companies make up four of the top 10 profit-per-employee-earning UK companies – dominating the list more than any other sector.

Bellway earns the most profit per employee of any UK construction company, with average annual earnings of £164,385 per employee.

Kyle Eaton, money.co.uk business credit card expert, shares his tips for expanding your business and recruiting more employees while remaining profitable: ‘Expanding your business and recruiting more employees while maintaining profitability is a sign of a solid business model and effective management. Successful expansion involves strategic planning, market analysis, and financial savvy to ensure growth doesn’t compromise profitability.’

Here are some key strategies for expanding successfully.

• Strategic planning and market analysis
  ‘Before expanding, doing a comprehensive market analysis to identify growth opportunities is crucial. This means understanding market demand, identifying competitors, and assessing customer needs. Strategic planning includes setting clear objectives, determining what resources you need, and developing a timeline for expansion. This groundwork means your expansion will align with market opportunities and your company’s capabilities.’
• Financial management and access to capital
  ‘Effective financial management is at the heart of profitable expansion. This includes budgeting for new expenses, forecasting revenue growth, and managing cash flow carefully. Access to capital is essential for funding expansion activities, such as hiring new employees, marketing, and purchasing equipment. Business credit cards and loans are valuable tools for managing cash flow and financing growth. They can help raise the capital to fund expansion while offering flexibility to manage expenses effectively.
• Recruitment and employee management
  ‘Hiring more employees is often necessary for expansion but comes with increased payroll and management responsibilities. Focus on recruiting talent that aligns with the company’s culture and goals. Efficient employee management, including training and development, maximises productivity and contributes to the business’s profitability.’
• Technology and efficiency
  ‘Use technology to improve operational efficiency and productivity. This can include automating routine tasks, project management tools, and customer relationship management (CRM) software. Efficiency gains can help balance expansion costs and contribute to long-term profitability. Expanding your business and recruiting more employees while staying profitable is achievable with careful planning, strategic financial management, and responsible use of financial products. By understanding and using tools such as business credit cards and loans, businesses can invest in growth opportunities responsibly and sustainably.’
  https://www.money.co.uk/business/business-credit-cards