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PROCUREMENT SALARY GUIDE AND INSIGHTS 2019HIRING FOR THE FUTURE OF PROCUREMENT
In partnership with
REPORT OVERVIEW
• 5th edition of the report
• Survey conducted in September 2018
• Over 3,000 professionals globally
completed the survey
SKILLS SHORTAGES IMPACTING HIRING PLANS
RECRUITMENT CHALLENGES REMAIN
56%
faced challenges finding the right
talent
50%top challenge was candidate
salary expectations
TOP RECRUITMENT CHALLENGES
26%
30%
32%
44%
56%
0% 10% 20% 30% 40% 50% 60%
Lack of soft skills
Competition from otheremployers
Lack of technical skills
Budget restraints
Lack of sector skills andexperience
TOP SKILLS IN DEMAND
Supplier relationship management
In demand across all levels: Other skills in demand:
• Communication & soft skills
• Negotiation
• Sourcing
STRONG HIRING PLANS FOR THE YEAR AHEAD
65%plan to hire in the next year
Private sector 67%
Public sector 59%
Charity/NFP sector 71%
PROFESSIONALS MOVING ROLE
30%
plan to move
employer in the
next year
63%
64%
70%
76%
0% 20% 40% 60% 80%
Company is committed tostaff training
Content of the work
Career progressionopportunities
Salary
Reasons to move role
CHALLENGES AHEAD: KEY ISSUES EMPLOYERS FACE
Changing EU procurement regulations1Ensuring engagement with procurement at the outset of a project
Being seen as a strategic partner to the business
Managing risk in supply chain
Budget restraints
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SALARIES ON THE RISE
SALARY TRENDS FROM THE LAST YEAR
72%received a salary increase
5.3%overall salary increase
2.7%national average
pay increase*
* ONS Statistics September 2018
AVERAGE SALARIES BY REGION
Scotland £40,430
North East £42,155
London £58,960
South East £48,049South West £39,558
West Midlands £42,791
East Midlands £42,941
East of England £46,501
North West £40,227
Yorkshire & Humber £38,050
Northern Ireland £37,933
Wales £34,749
AVERAGE SALARIES BY SECTOR
72%
received a salary
increase
74%
received a salary
increase
Private Sector
£46,432
Charity/NFP
£45,377
Public Sector
£42,278
72%
received a salary
increase
Private Sector:
This year, the greatest salary increases within the Private Sector were seen in industries such as Defence
(up 4.3% on last year), Energy & Utilities (including Water, Mining, Oil, Gas and Nuclear), Construction &
FMCG. All saw increases between 7% and 7.9%. Over 80% of candidates within Healthcare, Pharma, Life
Sciences and FMCG saw a salary increase in the last 12 months. This may be due to the increasing
reliance on cutting edge innovations in those sectors, leading to more complex procurement requirements
and the need for highly skilled staff who can be ‘ahead of the game’.
Public Sector:
The highest average salary increases were in Defence/MOD related industries, but the average salary in
that space is also still the lowest in the UK by a large margin (almost £10k). Central Government and
Emergency Services saw the biggest per pound growth over last year’s findings, with transformation
projects requiring skilled procurement staff who boast change management skills, and the kind of broad
communication capabilities and suite of soft skills we touched on before. The ability to effectively engage
stakeholders is vital, and employers will pay extra for this skillset.
BREAKING THIS DOWN
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AVERAGE SALARIES BY GENDER
23,597
30,927
43,356
46,799
64,590
25,429
31,817
45,319
51,194
87,404
Tactical
Operational
Managerial
Professional
Advanced Professional
Average salary (£)
Male Female
PROFESSIONALS RECEIVING A BONUS BY SECTOR
51%Private Sector
16%Charity/
NFP Sector
16%Public Sector
9.5% of annual salary
6.6% of annual salary
7.7% of annual salary
MOST COMMONLY RECEIVED BENEFITS
Work mobile phone
Flexible working
Private sector: Public and charity/NFP sectors:
• We continue to see a significant positive difference in the earning power of MCIPS
members who on average earned 15% more (a 2% increase from 2018) than their
non-MCIPS colleagues.
• For example, MCIPS qualified Senior Buyers in the Private Sector earn 21% more
than non MCIPS peers
• This is continued with seniority, with FCIPS members also enjoying noticeable
higher salaries
• This signifies the value employers place on MCIPS as a mark of professionalism,
capability and integrity
• In future reports it will interesting to see whether the recently introduced Chartered
status builds similar recognition to MCIPS and FCIPS, and commands similarly high
salaries
MCIPS AND THE BENEFITS OF BEING A MEMBER
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INTERIM MARKET UPDATE
AVERAGE INTERIM DAY RATES
£566Private
Sector
£410Public
Sector
£534Male
£426Female
By sector: By gender:
TOP FOUR REASONS TO BECOME AN INTERIM
54%Flexibility
44%Variety of
work
43%Pay
33%Redundancy
• Continuing the trend for the last three years, the most common project for interims was change and
transformation. The 5% increase in this figure may be due to such projects within Central Government.
• Businesses over the last year have explored various scenarios in preparation for Brexit with interims
undertaking Category Management Implementation projects (up 5%) and process improvement &
strategic performance reviews (up 4%).
• Strategic Sourcing interim assignments dropped by 8%, perhaps due to the uncertainty of the market
with no current deal on the table.
• The most common reason across both sectors for using interims is as it was in 2018, was as an
additional resource. This includes to undertake ongoing projects, programmes of work, or high level
transformational projects.
• Employers tend to hire interims for their specific technical skills, but also look for interims with strong
shareholder management skills who interact well and have a practical, hand on and ‘hit the ground’
approach.
• 60% of interim roles are now 1 to 6 months in duration; contracts of more than 6 months dropped by 8%
INTERIMS BY ROLES
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PERCEPTIONS OF PROCUREMENT
PERCEPTIONS OF PROCUREMENT
71%agree procurement
is valued in their organisation
Private sector 70%
Public sector 73%
Charity/NFP sector 72%
RECOMMENDATIONS
RECOMMENDATIONS
Consider what you can offer outside of salary1Evaluate your hiring process
Don’t forget the soft skills
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CIPS/HAYS PROCUREMENT SALARY GUIDE AND INSIGHTS 2019
Contact us: [email protected]
LinkedIn: Hays Procurement Insights – UK & Ireland
hays.co.uk/cips-salary-guide