The IWFM Market Intelligence Report 2025 represents the Institute’s most detailed examination of the workplace and facilities management profession to date.
Building on IWFM’s established role as a global standard-setter and publisher of the annual Market Outlook, the report brings together more than 100 pages of research, analysis and industry commentary. Its findings present a sector with considerable economic strength, but also one facing an increasingly urgent workforce challenge.
Facilities Management budgets are expanding. Technology is reshaping how buildings and workplaces operate. Outsourcing remains a central part of the market. Yet behind these positive indicators lies a persistent concern: the sector does not have enough suitably skilled people to meet growing demand.
Few understand this issue better than Peter Forshaw, Managing Director of Maxwell Stephens, who was invited to contribute insights drawn from more than 25 years of specialist FM recruitment experience.
His observations within the report focus on three closely connected challenges: recruitment, retention and the widening skills gap.
Peter highlights that recruitment remains particularly difficult for client-side organisations.
Professionals working in small in-house Facilities teams can sometimes feel isolated, with limited access to peer support, mentoring and clearly defined progression routes. Where organisations fail to create visible career pathways or invest in professional development, these positions may be perceived as offering fewer long-term opportunities than equivalent roles within larger service providers.
That perception can make client-side vacancies harder to fill and contribute to higher turnover.
Service providers face a different set of pressures. Demand is especially strong for experienced commercial managers, contract managers and Facilities Managers capable of leading complex, multi-site operations.
These roles have become significantly broader. Professionals are increasingly expected to manage larger portfolios, demanding clients, extensive supplier networks and more sophisticated commercial arrangements. They must also demonstrate expertise across compliance, technology, sustainability, customer experience and financial performance.
However, remuneration does not always reflect the expanding scope and pressure associated with these positions. As a result, employers can struggle to attract experienced candidates who are willing to accept greater responsibility without a corresponding improvement in salary, flexibility or progression.
The challenge is not simply finding applicants. It is persuading the strongest professionals that the opportunity represents a meaningful step forward.
Recruiting talented people is only part of the challenge. Retaining them is equally important.
Peter notes that employee departures can have a particularly significant impact on client-side organisations, where individual team members often hold considerable operational knowledge and personal responsibility.
In a smaller in-house function, the loss of one experienced Facilities professional can disrupt supplier relationships, compliance processes, project delivery and the day-to-day management of the workplace. Larger service-provider teams may have more capacity to redistribute work temporarily, although persistent turnover will still affect service quality and client confidence.
For Peter, the answer goes beyond salary or isolated employee benefits.
Flexible working, training and career progression cannot be treated as policies that exist only on paper. They must be visible in everyday management decisions and embedded within the organisation’s culture.
Employees are more likely to remain with organisations where they can see that development is taken seriously, good performance is recognised and future opportunities are available. A training budget has little value if workloads prevent people from using it. A flexible-working policy will not improve retention if employees feel discouraged from applying it.
Genuine investment in people creates loyalty. Surface-level perks rarely do.
The report also draws attention to the widening skills gap across Facilities Management.
Technology has advanced rapidly, with artificial intelligence, predictive maintenance, smart building systems and increasingly sophisticated workplace platforms becoming part of mainstream FM operations.
The profession is no longer defined solely by building maintenance and service coordination. Today’s Facilities professionals are expected to interpret data, understand commercial performance, contribute to sustainability objectives and explain the strategic value of FM to senior decision-makers.
This evolution requires a broader professional skillset, including:
Reflecting on more than 25 years in the industry, Peter observes that Facilities Management has developed into a collection of increasingly specialised disciplines. Technical Services, Workplace Strategy, Sustainability, Health and Safety, Building Compliance, Projects and Property Management now require distinct expertise.
Salaries are beginning to rise in response to this greater specialisation and complexity. However, too many professionals are still expected to fund their own development and qualifications.
Peter regards this as an unsustainable model for a profession that supports almost every part of the UK economy.
Employers benefit directly from stronger technical knowledge, improved commercial understanding and greater digital capability. They must therefore accept greater responsibility for developing those skills within their workforce.
The IWFM Market Intelligence Report presents an industry with considerable momentum.
Facilities Management continues to grow in strategic importance. Investment is increasing, technology is opening new opportunities and organisations are recognising the connection between well-managed workplaces and wider business performance.
Yet the sector’s future growth depends on its ability to attract, develop and retain skilled professionals.
Peter’s contribution to the report reinforces a clear message: the FM workforce cannot be treated as an interchangeable operational resource.
Employers that offer competitive remuneration, meaningful development, credible progression and a supportive workplace culture will be best placed to secure the people they need.
Those that fail to invest risk losing experienced professionals to organisations that place greater value on their contribution.
For a sector built around maintaining performance, resilience and long-term value, investing in its own people must now become one of its highest priorities.
