The salary outlook for procurement and supply professionals is already positive, with pay packets growing for the third consecutive year at 5.3%, well above the UK average of 2.2%.
Organisations have never been so aware of the cost saving benefits of an effective procurement function, and in turn professionals are increasingly being given a strategic seat at the decision-making table.
It’s an exciting time to be working in the profession and, with this in mind, here are six ways procurement and supply professionals can boost their earnings even further this year:
1. Check your salary
The first, and most important step is to see how your salary compares against other professionals in the market, based on location, sector and seniority. Even if you aren’t looking for a new job, or if you are satisfied with your salary, it helps to gain an understanding of what the typical salaries are within your remit and what your potential earnings could be.
If you find that your salary is considerably lower than the average, it’s important to bring this up with your manager or employer at an appropriate moment, alongside where you have demonstrated particular value-add to the business. It may be that you have to wait until a formal review for a pay increase, but communicating your market worth to your employer is often the first, and hardest step.
2. Demonstrate value-add
Positively, there has been a notable improvement in the perception of procurement, as over two-thirds (72%) of respondents from the CIPS/Hays Salary Guide said that procurement is valued within their organisation. However, procurement and supply professionals should always be aware of how they can demonstrate value-add for the business or organisation they are working for.
Being recognised and sharing savings is now almost a given, and professionals must communicate their processes and objectives to key stakeholders and their wider team to ensure success. Procurement must also be seen as trusted advisors within other departments, where they can add value in terms of supplier relationships or reducing risks. Demonstrating these is essential if you want to secure a pay rise and bonus, alongside recognition and respect from your employer.
3. Consider MCIPS membership
If you are a full MCIPS member, this automatically puts you one step ahead of the competition, in terms of earning power and opportunity. The average salary disparity between MCIPS and non-MCIPS is 22%, meaning your earning potential could be boosted by up to a fifth if you are a member or are working towards achieving membership.
MCIPS is more of a requirement within the public sector. However, increasing numbers of commercial organisations do now list qualification at MCIPS membership level as desirable.
4. Demonstrate your soft skills
Soft skills remain the most important factors for procurement professionals to do their jobs effectively, with communication being the most important factor across all sectors. If you’re able to communicate well within your role, it’s more likely you can influencer key stakeholders and deliver the messages you need to. As a result, it is cause and effect that you will become more noticed within your organisation and be better placed to boost your earnings.
Equally, in applying for a new job employers will always value strong communication skills as well as other key factors such as influence, leadership and negotiation skills.
5. Improve your negotiation skills
In addition to being rated as the second most important key skill for procurement professionals, the ability to negotiate will almost always help towards improving your salary, or indeed help you set goals with your employer of when to expect to receive one.
It’s also an important skill to have if you are looking to move jobs this year, with salary in mind. If you’re working with a recruiter they should always streamline the salary negotiation process. However, it’s useful for professionals to know their market worth and have the confidence to do this too.
6. Don’t be afraid to move
Professionals in London continue to see the highest salaries, at an average of £57,664. However, significantly higher average salaries are now seen in the North West, East of England and Wales compared to previous years, indicating a progressive investment in the profession outside of London. This shift means professionals who are looking to move away from the capital will have a number of opportunities available to them, as well as a good rate of pay.
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