May 2017


CIPS/Hays Procurement Salary Guide and Insights 2017

Available now to download

The CIPS/Hays Procurement Salary Guide and Insights is now in its third year and has been read by almost 10,000 of you. It is fast becoming known as the benchmark for the profession as a salary guide plus offers an insight into benefits and skills in demand by both employees and employers.

 

If you took part in this year's survey, we'd like to say thank you for making 2017's report so comprehensive and interesting. Here are just a few highlights ...

  • On average procurement professionals across all levels received a pay rise of 5.5% compared to the national average of 2.2%

  • Procurement management professionals in the UK with the MCIPS designation earn on average £10k more than non-MCIPS

  • 72% and 75% of employers in the public and not-for-profit sectors incline towards MCIPS candidates

  • Candidates with the right mix of technical, and increasingly softer skills are in higher demand and can command bigger salaries and benefits packages

  • The gender disparity between pay and bonuses decreases further but still endures

  • A 10% growth in CIPS Fellowship amongst the membership demonstrates a higher value placed on contributing more to the profession at a senior level.

 

"This year's report continues to report buoyant demand for procurement professionals in both the public and private sector and globally in MENA, Sub-Saharan Africa and Australasia. Salaries paid to procurement professionals continue to outstrip the rate at which salaries are increasing generally in the UK economy."

Dr John Glenn, CIPS Economist and Senior Lecturer Economics, Cranfield School of Management

"Once again, the value of MCIPS offers rewards and returns in equal measure as procurement managers earn on average, significantly more than non-members and are highly sought-after. It’s a testament to our members for their expertise, dedication and I hope, commitment to keep their skills up to date which will mean even more demand for their skills in the coming years."
Andrew Coulcher, Group Director, CIPS Membership & Knowledge

Australasia Results

  • MCIPS professionals continue to earn more than non-MCIPS counterparts though the percentage dropped this year

  • 66% of Australasia procurement professionals received a salary increase in the last 12 months compared to 64% in 2016

  • The gender pay gap persists at the Professional level (17%), although the disparity has reduced at Advanced Professional levels

  • Despite the economy being slower to recover than other regions in the world, 31% of professionals received a bonus in the last 12 months but this was down compared to last year’s 43%

  • 77% of respondents agree that procurement is highly regarded and valued in organisations which is consistent with last year’s results

  • Communication and soft skills are seen as the first or second most important skills to enable professionals to do their jobs efficiently.

 

“I can feel the levels of more positive sentiment around the skills of procurement and supply chain professionals and this survey bears that out. CIPS has been working hard with a number of partners and members to raise the profile at all levels given the importance of the profession to government, to business and to the economy as a whole.

“With risk on the increase around the world, major legislative changes from ethical to economic will hit us all along the global supply chains we rely on. Procurement professionals are the ‘go-to’ for advice on support on issues and challenges in business.

“Once again, the value of MCIPS offers professionals good value for their hard work in developing experience and training and their qualifications. They earn more as MCIPS and are highly sought-after. It’s a tribute to our members for keeping their skills up to date, their dedication strong which will mean more demand than ever for MCIPS in the coming years.”
Mark Lamb, General Manager, CIPS Australasia

 

South Africa Results

  • 57% of Sub-Saharan professionals received a salary increase in the last 12 months

  • Procurement management professionals with MCIPS designation earn on average 38% more than non-MCIPS

  • In a change from 2016 when the Private Sector reported the highest average salaries, this year's top performer is the Charity/Not For Profit sector

  • Men earn more than women at more senior levels, especially at Advanced Professional level where the pay gap is 26%

  • Unlike the UK and in line with last year, women tend to earn more than men at Managerial, Operational and Tactical levels

  • Despite a downturn in the economy, 41% received a bonus in the last 12 months

  • Communication and soft skills were seen as crucial in job performance (75-89%) and could be seen as a reflection of how the profession has developed in the region in recent years.

 

“I am delighted to see a rise in the perceived value of procurement in the region in the public and private sector. CIPS has been working hard with a number of partners and members to raise the profile of this most important of professions.

“With risk on the increase around the world, major legislative changes from ethical to economic, and in countries as part of this global supply chain we all rely on, will impact. Procurement professionals have become the guardians of the enterprise to advise businesses on a range of issues.

“Once again, the value of MCIPS offers rewards and returns in equal measure as procurement managers earn on average, significantly more than non-members and are highly sought-after. It’s a testament to our members for their expertise, dedication and I hope, commitment to keep their skills up to date which will mean even more demand for their skills in the coming years.”
Andre Coetzee, Managing Director, CIPS Africa

Your chance to contribute to job opportunities for disabled people

Disability Rights UK promotes a campaign called 'I Can Make It' aimed at creating job opportunities for young disabled people through public sector contracting, utilising the opportunity created by the 2012 Social Value Act and the requirements of section 149 of the 2010 Equalities Act. Local authorities in the main have good policy in this area, including in some instances targets, but examples of good practice remain few in number or small in scale.

Now's your chance to help change this by writing or contributing to short and simple resources that will help your fellow professionals to deliver more social value and further job opportunities for young disabled people. The resource themes are:

  1. Developing contract specifications that include model clauses

  2. Developing tender documents that specify social value

  3. Supporting suppliers to respond to the social value clauses

  4. Inclusive recruitment and retention practices by successful tenderers

  5. Supply chain management

  6. Existing good practice – social value that supports disabled people into work

  7. Change management practices that support social value.

 

It is envisaged that these resources would be one to two sides of A4 paper in length and equip local authorities with the confidence to ask for more social value and the suppliers with the confidence to deliver it.

 

Please respond with your offers of help or alternate or additional suggestions to Philip.connolly@disabilityrightsuk.org

Protecting human rights in the supply chain ... Available now to download

This month, we are pleased to publish new guidance for public procurement practitioners: a collaboration between CIPS and partners London Universities Purchasing Consortium (LUPC), the Business, Human Rights and the Environment Research Group at the University of Greenwich (BHRE) and Advanced Procurement for Universities and Colleges (APUC).

The guide offers encouragement for buyers, decision makers and opinion-formers to identify and understand the risks, develop appropriate mitigating actions and promote respect for human rights in public supply chains.

Download Protecting Human Rights in the Supply Chain

Which recruitment solution is right for your organisation?

Download our new guide to intelligent resourcing and find out.

NEW Knowledge Partnership launch

FUSION21: Delivering Public Sector Efficiencies through a Framework Approach
Fusion21 is a national procurement organisation and social enterprise specialising in property, construction and the built environment. Explore a variety of articles, tips, guidance and resources which will help you to tackle the barriers and challenges frequently faced within public procurement…More

Have your say ... in the Supply Chain Resilience Survey

CIPS and The Business Continuity Institute (BCI) and with Zurich Insurance are running the 9th Supply Chain Resilience Survey and would greatly welcome your input. Thanks to your support in previous years, the results are widely quoted in the press and the survey is a highly regarded industry resource.

This survey asks questions about the levels and types of supply chain disruption, its impact, applying business continuity and supply chain management techniques, and some organisational profile information. We'll be providing a complimentary copy of the survey results in exchange for your time - just provide your contact details. You'll also be entered in a prize draw for Amazon vouchers worth £100.

Any references to identifying information (names, organisations, etc.) will be anonymous. If you have any questions, please get in touch with Gianluca Riglietti at gianluca.riglietti@thebci.org.

CIPS Brexit survey results ... Available now to download

Over 2,000 global supply chain managers took part in the CIPS Brexit survey which highlights that Businesses either side of the English Channel are preparing contingency plans which could sever supply chains between the UK and EU. The survey highlights that:

  • 32% of UK businesses who use EU suppliers are looking for British replacements

  • Nearly half (46%) of European businesses expect to reduce their use of UK suppliers

  • 36% of UK businesses plan to respond to Brexit by beating down supplier prices

  • The UK’s “weak negotiating position” is seen as the biggest hurdle in trade talks

Read the survey results press release in full

Take part in our survey on the impact of culture on supplier development

If you would like to be more informed about how companies consider cultural differences when conducting supplier development and how this influences decision making, please take our 10-minute survey. The results will be used to help develop a CIPS-hosted framework for companies to make the most of their supplier development activities.

Take part in the survey

New tool designed to build resilience in supply chains

This free Risk and Resilience Online Assessment Tool will support procurement and supply management professionals and those with an interest in buying to develop resilience in their own supply chains. The assessment takes around 15 minutes to complete and produces a report examining seven key areas of risk, highlighting areas of weakness and further support and guidance…More

Global standard online tool update

The Standard sets the benchmark for what good looks like in procurement and supply at all levels and across all sectors. Now in its third edition, the standard can be used by individuals and organisations to measure performance levels and create skills development plans to become fit for the future. To help you understand how the Standard can apply to you and your organisation we've created some examples in a new Introductory guide to using the Standard...More

Professional insights from the CIPS MENA Conference

Read a number of though-provoking Supply Management pieces from our Middle East and North Africa Conference which took place in May:

Throw away change management plans
How procurement can add value
Millennials can be 'catalyst' for procurement
Six ways to engage senior stakeholders
Procurement's sunny disposition in the Middle East
New SABIC procurement boss outlines plans
Coherent message is critical to transformation
Don't make process king, buyers told

MyCIPS everything you need in one place

Print your exam entry confirmation, membership certificates and any other payment receipts.

If you're continuing to study remember to use all of our resources. You can also take a look at how your skills and knowledge may have improved by using the online self-assessment tool in your MyCIPS. But there are also some other great ways for everyone to stay current and keep on learning:

• Supply Management is your regular source of targeted CIPS information and wider reading around the issues that affect our profession - essential for staying up to date

• The CIPS Knowledge area gives you access to a huge range of resources, from white papers to webinars, through our exclusive partnerships with industry leaders

• Follow the conversation and share your experiences and expertise via CIPS social media.

•Facebook: for past discussions and to chat with other students join our public group

•Twitter: @cipsnews

•LinkedIn: join our company page

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