- 72% of UK procurement professionals received a pay increase in the last 12 months, up 4% on 2018 and exceeding national average
- 65% face challenges when recruiting
- Charity sector outperforms private sector in salary increases as 74% receive a rise
- Gender disparity between pay decreases further but men earn £2k more on average than women at managerial level
Over 3000 procurement professionals contributed to a survey culminating in 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 2019 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.
The increase for procurement professionals at 5.3% continues a five-year trend of exceeding the national average at 2.7%, driven by a skills shortage in the UK market and the challenges of Brexit. Businesses are looking to strengthen and buffer their supply chains against any difficulties and changes the UK’s departure from the EU could bring. Candidates with the right mix of technical, and increasingly softer skills are in higher demand and can command bigger salaries, benefits packages and can leverage multiple job offers.
Candidates with full CIPS membership (MCIPS) were further advantaged as salaries were £7k higher for employees with CIPS accreditation. The survey also found that two-thirds of employers were asking for individuals with the MCIPS designation when advertising their vacancies.
The public sector faired equally with the private sector in terms of the number of professionals receiving a pay increase at 72%, though professionals in the charity sector faired the best with 74% receiving an increase, which is 9% more than 2018. Professionals in the public sector also received a boost to their earnings with a 10% more individuals receiving a rise compared to 2018. In the private sector, this was 1%. However the bonus structure showed larger disparities between the sectors, where 51% of procurement professionals in the private sector received a bonus, only 16% in the public or charity sector were similarly rewarded.
The pay gap between genders continued as men earned more across all levels, but the discrepancy is narrowing. There could be a number of reasons why women continue to be disadvantages from unappealing job adverts to women’s reluctance to negotiate on pay. In procurement, 73% of men and 72% of women received a pay increase which is an improvement of 71% and 64% in 2018. Despite men receiving more pay than women generally, at some operational and tactical levels women did earn more than men with roles such as Procurement executive, Contracts Officer and Supply Chain Planner.
The gap in salaries between the north and south of the UK narrowed slightly where the North West region saw the highest increase at 7.8%, as professionals are less enamoured with commuting and rising costs in the south and attracted by the Northern Powerhouse.
Dr John Glen, CIPS Economist and Visiting Fellow at Cranfield University said, “As in previous years, the outlook for procurement professionals remains excellent. Demand for their services outstrips supply and this is reflected in health wage appreciation. The profession is battling to attract and retain the best talent available. The value of personal development is clearly indicated in this report with MCIPS professionals enjoying average salaries of 15% higher than non-MCIPS professionals.
“In last year’s report, the ‘engine room’ of the procurement profession was busy recruiting analysts to deal with the challenges of big data, artificial intelligence, predictive analytics and eProcurement. Interestingly, this year which has been dominated by concerns associated with Brexit, and the largest increases in the procurement engine room have gone to contract managers.
“At a time when the UK economy is close to full employment and the reality of Brexit, in whatever form it takes, looms, the demand for procurement professionals is significantly outstripping supply.”
Scott Dance, Director, Hays Procurement & Supply Chain said, ”None of us can escape the changes taking place all around us, from political uncertainty and economic pressures through to the digital transformation of the workplace. Procurement teams must therefore be more adaptable than before to continue to deliver optimal solutions for their organisation.
“Creating a pipeline of talented procurement professionals with the right skills not only for the short-term, but for the long-term too, will stand organisations in good stead. It will help them to continue building positive perceptions, ensure they are better equipped to face the challenges and enable them to access the skills they need to drive growth.”
Request a copy of the report from the CIPS website.
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 200,000 in 180 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 2018 the Group employed 11,700 staff operating from 262 offices in 33 markets across 20 specialisms. For the year ended 30 June 2018:
– the Group reported net fees of £1.072 billion and operating profit (pre-exceptional items) of £243.4 million;
– the Group placed around 77,000 candidates into permanent jobs and around 244,000 people into temporary assignments;
– 19% of Group net fees were generated in Australia & New Zealand, 26% in Germany, 24% in United Kingdom & Ireland and 31% in Rest of World (RoW);
– 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, China, Colombia, Chile, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, 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