Procurement salaries are increasing reflecting rising business confidence and demand for talent.
A survey of more than 4,000 CIPS members and Hays staff revealed growing confidence within the sector, with professionals seeking better salary packages, as well as the opportunity to grow their careers.
Demand for procurement professionals has risen over the past 12 months driving salaries up 5%, compared to the national average rise of 2.9%, according to recruitment experts Hays.
The results also showed that 68% of those surveyed had received a pay increase in the past year, compared to 61% in 2015, driving the average salary for procurement professionals up from £41,661 last year, to £44,226 in the past 12 months. The role of buyer was revealed as the most recruited for position during the period.
David Noble, Group CEO, FCIPS, welcomed the results: “Skills around procurement supply are quite complex, and there’s increasingly more recognition about how good procurement can benefit companies.
“Effective procurement can have an enormous, and positive, impact on profits, so it’s good to see the profession being taken seriously, as this survey demonstrates.”
Noble also drew attention to the 29% average salary disparity in favour of MCIPS versus non-MCIPS members. “It’s pleasing to know that MCIPS can be so beneficial and personally rewarding to our members’ careers,” he said.
But while salaries may be on the increase, demand for skilled procurement professionals among companies continues to outstrip supply.
When it comes to recruiting procurement staff, 74% of those surveyed said they had encountered difficulties over the past 12 months, with 34% claiming that lack of experience and sector skills was a major concern. Budget restraints was a worry for 51% of recruiters while 41% said increasingly high salary expectations among candidates was a challenge when it came securing the right staff.
Gavin Jones, director of Hays Procurement and Supply Chain said employers were beginning to adapt how they recruit as a result of the shortage of skilled candidates:
“We now see employers expanding job specifications and casting an eye to future potential as much as current capability. Employers are using learning and development programmes to support hiring tactics aimed at less proven talent. Adopting this approach is enabling many companies to fill long-term vacancies.”
However, the survey also highlighted the need for employers to focus on retaining the skilled procurement professional they already have. According to Hays, 50% of those surveyed said they wanted to move to a new employer in the next two years, with two thirds stating salary as the most important factor in their decision.
When it came to their current job, work-life balance remains the top reason why people stay, with just over a third of respondents claiming flexible working options offered by their current employer was a compelling reason to stay put.