03 July 2008
The cost of interim procurement managers is coming down because of greater competition in the market and as companies look more closely at spending.
"We are closer to the market stabilising," said Steven Deverill, consultant at Langley Search and Selection. "There has been significant growth over the past two years and clients are pushing back on day rates, and looking to get more value from it. The main reason is that there is much more competition in the market."
Mark Badley, managing director at recruitment firm Ronin, has also noticed a fall in prices. "For contractors the day rate in certain areas has fallen. Some specific examples of those people earning £500-600 a day last year are now earning £400-500 a day. They have taken a wage drop, the result of being out of work for weeks and wanting to secure an income."
However both added there was still high demand for interim managers with specialities in procurement, including marketing, legal and professional services.
A survey by Hays Purchasing & Supply found the purchasing interim market remains strong compared with other professions, although "the highly paid bubble may now be deflating".
It also found salaries for interims working in the public sector were two to three times higher than the equivalent permanent pay.
According to Steve Elliott, an interim and managing director of ProcurePro, there are more interims in the market at lower rates but quality is often poor. This is because they are encouraged to enter that market by agencies, rather than making the decision themselves, he believes.