Wates Group

The overview

Wates is a family-owned construction firm, headquartered in Leatherhead, Surrey. In 2010 it had a turnover of £985 million, an increase of 4% on 2009. The company also reported a 12% increase in pre-tax profits to £43.5 million for 2010. Wates has 12 offices across the UK and an office in Abu Dhabi. It employs over 2,000 people in the UK.

Company breakdown

As a construction services company, Wates acts as a contractor on a variety of different projects, constructing new premises and maintaining, refurbishing and fitting out existing premises. However, the company has also diversified into carrying out functions traditionally carried out by construction consultancies, including sourcing finance and overseeing the design stage. It also offers facilities management services to clients.

The company has seven business divisions, each with a focus on a particular service or market:

• Wates Construction: markets include schools, colleges and universities; prisons; retail and business buildings; local public sector projects such as housing; and mixed-use buildings.
• Wates Living Space: this division builds and maintains affordable housing, often in partnership with local councils.
• Wates Retail: this division provides a number of services for retailers at almost every stage of the process, including design.
• Wates Interiors: this division is responsible for workplace fit-outs. They also install technology infrastructure.
• Wates International: Wates Construction International LLC was set-up in Abu Dhabi. It provides the kinds of services delivered by UK divisions including design, construction, facilities management and maintenance.
• Wates Developments: this deals with the acquisition of land prior to future development.
• Needspace?: this wing specialises in finding and acquiring office-space rental in the south east of the UK.

The company reported a 12% increase in pre-tax profits to £43.5 million for 2010.

Clients, partners and products

Wates works with both public and private sector clients on a range of different project types. For example, a public sector tender may bundle a whole range of tasks into one deal, so Wates may join forces with other companies to win a contract.

Public sector projects have included:

• Birmingham City council: maintaining and refurbishing around 40,000 residential properties owned by the council.
• Somerset House: reconstructing and refurbishing of the grade-one listed building for Kings College London.
• HMP Winchester: demolishing and reconstruction a housing block at the category B prison.

Private sector clients have included:

• Banking: CGNU Life Assurance, Ernst & Young, HSBC and Lloyds Bank.
• Hotels and leisure: Hilton, Mandarin Oriental, Mecca Bingo, Tampopo, and TGI Friday’s.
• Logistics: DHL and Royal Mail.
• Retail: Boots, John Lewis, Marks and Spencer, Selfridges, Waitrose, and Wilkinson.

Awards and recognition

The company has received commendations by a range of awards bodies and particular recognition for its social responsibility efforts and its health and safety record. Recent award wins include:

• Business in the Community (BiTC) Awards 2011, which celebrate responsible business practices: Company of the Year.
• Construction News Awards 2011: Contractor of the Year, Employer of the Year and the Judges Supreme Award.
• A Queens Awards for Enterprise 2011, organised by Business Link, for sustainable development in the south east.
• Building Awards 2010, organised by Building Magazine: Major Contractor of the Year.
• CIBSE Low Carbon Performance Awards 2010: Contractor of the Year.
• It made it into Sunday Times 100 best companies to work for 2010.
• The company is recognised by the Royal Society for the Prevention of Accidents at gold standard.

Salary and benefits

Wates describes its trainee salary as competitive. Pay for graduate construction managers and quantity surveyors is somewhere in the region of £20,000–£25,000, with those in London receiving slightly higher starting salaries than those based elsewhere.

Staff who have completed one year of service are eligible for the bonus scheme. Employees are rewarded for performance in relation to meeting financial targets, their personal performance and their safety performance.

A flexible benefits package

Staff benefits include the following:

• 26 days annual leave, with an opportunity to buy five additional days a year. Staff can also carry over up to five days.
• Car scheme.
• Health insurance.
• Life insurance.
• Maternity/adoption leave is more extensive than government guidelines.
• Pension scheme.
• Private medical insurance.
• Refer a friend scheme, with a reward of £2,000 if the staff member is retained for one year.

The ‘YourChoice’ scheme allows staff to adjust the benefits package to suit their needs. Additional benefits include critical illness insurance, additional health and life insurance, dental insurance, personal travel insurance, and childcare vouchers.

Culture and values

The construction industry has worked hard to shed its image as male-dominated and resistant to change. Wates is attempting to play its part. For example, the company is trying to attract more women into the industry and is showing some signs of succeeding: 18% of its work force is female – the industry average has been reported to be around 12.2%.

Building futures and corporate responsibility

The company’s ‘Building futures’ programme aims to alleviate the skills shortage in construction by training unemployed men and women. Long-term unemployed people complete an accredited professional qualification and are receive soft-skills training. As of May 2011, over 400 people had participated in the scheme, with 50% of those moving into employment following the course. The company spends around £1 million per year on this and its apprentice schemes.

18% of the work force is female – the industry average is 12.2%.

Wates promotes corporate responsibility efforts in other areas: the Target Zero campaign is focused on zero non-hazardous waste going to landfill. Wates also makes donations to charity through the Family Trust, directing its efforts to improve communities by improving facilities, promoting schemes to combat anti-social behaviour, supporting the rehabilitation of prisoners and funding education.

Ownership and management structure

The company was set-up in 1897 by Edward Wates and remains under the ownership of the family. Despite this, the board is made up of both family members and outsiders. The current chairman and chief executive, Paul Dreschler, was the first such outsider to be given a senior management role when he was appointed in 2004.

Wates insists that private ownership is the reason for the company’s success, allowing it to retain financial stability and focus on long term priorities.