31 March 2005 | Cara Whitehouse
Growing demand for skilled purchasing managers could see their renumeration increase, according to the latest salary survey from recruitment consultancy Purcon.
A revised format for the Spring 2005 report separates bonuses from basic pay, preventing direct comparisons with previous surveys.
But the survey, which includes CIPS-qualified and non-CIPS-qualified staff, showed that purchasing managers who handle budgets of £50-£150 million are on average earning £60,529.
Sixty-one per cent of them receive on average a bonus equal to 16 per cent of salary.
These figures compare with an average total remuneration of £65,447 six months ago, when bonuses were included in one overall figure.
Jerry Smith, director of Purcon, told SM he expected to see further growth at the £50,000-plus level as demands on managers become more intense and the need for good people to fill those roles increases.
"There is now an expectation of general management ability as well as purchasing skills," he said.
He also suggested purchasing directors, who earn £89,327 on average, can expect an upturn in performance payments.
"It looks like their bonuses could be coming through because of growth in the economy," he added.
He cautioned that sample sizes at this level are volatile, but said that basic salaries now appear to be comparable with total salaries six months ago.
Particular industries reaping salary rewards include the miscellaneous manufacturing sector, where senior buyers/purchasing executives scooped the highest salaries.
They earn £34,130 compared with the average £31,675.
"A possible reason is that the sector needs good people to cope with the difficult market," said Smith.
The survey revealed that buyers in smaller companies on average earn more than their counterparts in larger firms.This could be because they may be the only purchasing specialists in those organisations, Smith said.
The survey also found that average annual salaries now total £37,685, up from £37,137 last quarter.