- Higher number of procurement jobs registered across both public and private sectors
- More organisations move towards strategic procurement and away from operational procurement activity
- In contrast to last year, private sector salaries received a 6% compared to the public or third sectors
- Gender disparity between pay and bonuses decreases further but still endures
Over 4000 procurement professionals contributed to the latest free salary guide from The Chartered institute of Procurement & Supply (CIPS) in partnership with recruiting experts Hays Procurement. The CIPS/Hays Procurement Salary Guide and Insight 2017 report benchmarks salaries and bonuses for different roles and profiles, and offers insight into career paths in procurement for permanent and interim contracts and across sectors.
Since last year’s survey, the world has experienced a number of extreme socio-political and economic changes as supply chains are threatened by protectionist and nationalistic movements around the world. With threats from possible tariffs on cross-border trading, rising inflation and falling sterling, procurement talent is in demand more than ever before as a higher number of jobs are registered across public and private sectors.
Responses to the survey were received from the UK, Australia, Middle East and Sub-Saharan Africa. Various levels of seniority completed the survey including advanced professionals (procurement director), managerial (senior buyer), operational (buyer) and tactical (assistant buyer).
The guide is divided into sections relating to salaries and bonuses, procurement as a career, and the perception of procurement’s role in organisations.
On average procurement professionals across all levels received a pay rise of 5.5% compared to the national average of 2.2%. Candidates with the right mix of technical, and increasingly softer skills are in higher demand and can command bigger salaries and benefits packages.
For CIPS, a 10% growth in fellowship amongst the membership, demonstrated a higher value placed on contributing more to the profession at a senior level.
The disparity between genders continues to cause concern as women were less likely to receive a pay rise, at 63% compared to men at 65% though the gap continues to reduce possibly due to legislation making reporting of gender disparities public. In spite of this, men were 25% more likely to earn more at advanced professional level than women. Where 42% of men received a bonus, only 33% of women did at the same levels of seniority.
The gap in salaries between the north and south of the UK narrowed slightly where the North West region saw the highest increase at 7.2%, though average wages in London were still higher along with bonuses of 13.5% of salary.
The preferences for MCIPS candidates differed significantly between sectors. Where 49% of employers in the private sector inclined towards MCIPS candidates, 72% and 75% in the public and not-for-profit sector respectively did. Employers, around 51% of respondents, also expected to face challenges in the next 2 months when recruiting for roles.
Andrew Coulcher, Group Director for Membership & Knowledge commented: “It’s no surprise to see an increase in the number of procurement roles for both men and women, and the rise in the perception of the value these roles can bring to business.
“With risk on the increase, major legislative changes from ethical to economic will impact on the effectiveness of the complex supply chains we have all come to rely on. So organisations are looking to their procurement talent to lead and guard against possible impacts.
“Once again, the value of MCIPS offers rewards and returns in equal measure as procurement managers earn on average, significantly more than non-members and are highly sought-after. It’s a testament to our members for their expertise, dedication and I hope, commitment to keep their skills up to date which will mean even more demand for their skills in the coming years.”
We have seen more organisations move from a tactical to a more strategically aligned procurement function as they take advantage of the efficiencies this can bring. There is also continued development in the technological side of procurement, with investment in more sophisticated sourcing tools becoming prevalent. Candidates with the right mix of technical and soft skills are therefore in high demand. Skills shortages are still affecting many organisations as demand outstrips supply in many areas of procurement. Competition for the best procurement professionals remains fierce, so in order to attract and retain candidates many organisations are reviewing their benefits packages. We have seen a number of employers investing in training and development of their procurement teams, such as offering the opportunity to achieve the MCIPS qualification. Employers able to identify skills shortages in their procurement function as well as adapt their benefits offerings will find themselves in good shape to compete for the best talent in the market.
Scott Dance, Director Hays Procurement & Supply Chain, commented: “One of the more interesting findings in the report is that 70% of managers expect to recruit in the next 12 months, up by 6% from last year, which is a positive reflection on the industry.
“But at the same time, 50% of employees plan to leave their jobs in the next two years and 71% want to progress to more senior roles. That’s quite a lot of movement in a short space of time and, with a shortage of talent, we need to address the gap this type of movement creates.
“Additionally, there is also continued development in the technological side of procurement, with investment in more sophisticated sourcing tools becoming prevalent. Candidates with the right mix of technical and soft skills are therefore in high demand. Skills shortages are still affecting many organisations as demand outstrips supply in many areas of procurement.”
John Glen, CIPS Economist and Director for the Centre for Customised Executive Development said: “Salaries paid to procurement professionals continue to outstrip the rate at which salaries are increasing generally in the UK economy. With buoyant demand and rising wages comes the risk that the labour market for procurement professionals becomes very ‘tight’.
“This report does draw attention to the number of employers reporting difficulties when seeking to employ new hires. The profession therefore must concentrate on marketing careers on procurement and supporting the development of capability within the profession as well as facilitating movement from other professions into procurement.”
Request a copy of the report from www.cips.org/hays
Notes to editors:
The Chartered Institute of Procurement & Supply
The Chartered Institute of Procurement & Supply (CIPS) is the world’s largest procurement and supply professional organisation. It is the worldwide centre of excellence on procurement and supply management issues. CIPS has a global community of over 115,000 in 150 different countries, including senior business people, high-ranking civil servants and leading academics. The activities of procurement and supply chain professionals have a major impact on the profitability and efficiency of all types of organisation and CIPS offers corporate solutions packages to improve business profitability.
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 31 December 2015 the Group employed 9,420 staff operating from 248 offices in 33 countries across 20 specialisms. For the year ended 30 June 2015:
– the Group reported net fees of £764.2 million and operating profit (pre-exceptional items) of £164.1 million;
– the Group placed around 63,000 candidates into permanent jobs and around 200,000 people into temporary assignments;
– 23% of Group net fees were generated in Asia Pacific, 41% in Continental Europe & RoW (CERoW) and 36% in the United Kingdom & Ireland;
– the temporary placement business represented 58% of net fees and the permanent placement business represented 42% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA
Trudy Salandiak, CIPS; firstname.lastname@example.org; +44 (0) 1780 761576; 07554 400 731
Helen Flannery, Hays; email@example.com; +44 (0)20 3040 0282