The Chartered Institute of Procurement & Supply (CIPS) has released its latest salary guide in partnership with recruiting experts Hays Procurement. The CIPS/Hays Salary Guide and Procurement Insight Report 2015 benchmarks salaries and bonuses for different roles and profiles and offers insight into career paths within procurement.
The findings of the report are based on a survey conducted in October 2014 amongst procurement and supply chain professionals. In the UK, over 3000 professionals completed the survey, including 1400 CIPS members and from seniority levels ranging from advanced professionals such as Procurement Directors, to tactical professionals such as Assistant Buyers.
The guide is divided into sections relating to salaries and bonuses, procurement as a career, and the perception of procurement’s role in organisations.
The findings revealed that in the last 12 months, the procurement profession enjoyed pay increases at 2.5% which were higher than the national average of 1.7% (Office of National Statistics, October 2014). MCIPS professionals, as members of CIPS can expect to earn up to 23% more at operational level and up to 25% at Advanced Professional level in the private sector
Overall, 61% of procurement professionals received a pay increase in the past 12 months. Some roles have seen higher wage increases than average; at the most senior level Procurement Directors reported salary increases of 3.3%, while Assistant Buyers saw the greatest overall increase at 4.2%. Some industries saw higher salary growth, with professional and business services employees reporting 5.4% pay rises on average, compared to a private sector average of 3.4%.
David Noble, Group CEO, CIPS commented: “Procurement and supply chain activity is responsible for around 70% of a business’s revenue. So, strong supply chain management is essential to the success of any enterprise. Attracting and retaining the right talent, rewarding and offering a range of inducements, both financial and other is a big part of that successful picture.
“I am delighted that CIPS is working with Hays on this bigger, better salary survey and I would urge everyone to see the developments in the profession through the golden nuggets in this guide.”
Nicky Taberner, Director at Hays Procurement, commented: “Now is a good time to be working in procurement, salary increases have outpaced the national average, and the skills and expertise of procurement professionals are highly sought after across all industries and sectors. Confidence is growing in the profession, and one in three procurement professionals plan to move roles in the next year.
At Hays we have seen an increase of over 40% this year in the number of procurement vacancies registered. While this is good news for employees, it means increased competition for employers to attract the skills they need to continue to raise the profile of procurement and cement its position in the boardroom.”
Organisations are also recognising the need for procurement to demonstrate leadership to their customers, supply chains and internal stakeholders, leadership which can only be achieved, according to Tony Payne, Group Head of Industrial Policy and Supply Chain Management, MBDA Group and part of the Aerospace and Defence Procurement Group (ADPG), through " fostering the culture and demonstrating the appropriate collaborative behaviours to find better and more efficient ways of working to maximise opportunity.
John Glen, CIPS Economist and Senior Lecturer in Economics at Cranfield University says,
"This report clearly indicates that procurement professionals have been a key component of the UK economy’s recovery from financial crisis post 2008 and will be important contributors to the growth that the UK economy is expected to enjoy this year and for the remainder of the decade. This is evidenced by the growth in salaries of procurement professionals relative to average salary growth in the UK economy, which reflects very ‘tight’ conditions in the labour market for procurement specialists.”
Request a copy of the report from www.cips.org/hays