psd salary review 2012/13
DESCRIPTION
PSD Salary Review 2012/13TRANSCRIPT
SALARY SURVEY2012/13Procurement & Supply Chain
Permanent Salary Survey_2012/13 1 13/11/2012 15:06
Matchmaking is what we doAnd we do it very wellPSD is a leading Executive and Management recruitment organisation. We operate across a range of functions, industry sectors and countries, providing specialist expertise in each area. Our reputation is based upon our ability to deliver outstanding results, exceptional levels of service and a real understanding of our specialist markets. We provide comprehensive recruitment services for both single appointments and large scale assignments, permanent and interim on a national basis.
We operate through a matrix structure organised by geography, function and specialist industry sectors. Our principal specialism’s are Procurement and Supply Chain, HR, Marketing, IT, Finance, Customer Contact, Engineering and Design, Pensions, Investment and Risk, Surveying and Planning. Our principle objective is to be the leading specialist in our chosen markets, with an outstanding reputation for the quality and effectiveness of our services.
For a confidential discussion about your requirements or to discuss your career aspirations, please contact Stephen Fletcher, Director, PSD Group
+44 (0) 845 083 3340
www.psdgroup.comPSD is a leading executive recruitment consultancy
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Permanent Salary Survey 2012/13
We believe it is the most useful and comprehensive of all procurement salary surveys around because it breaks results down across job title and geographical location to allow procurement leaders, HR and candidates to analyse trends and benchmark their own companies reward policy. The survey focuses purely on executive and management roles within the procurement field, creating a focus on those individuals that drive the development of procurement and supply chain within major organisations. This reflects the level of individuals PSD focuses on.
Our results have been gathered during another stormy year which has seen a double-dip recession in the UK, the continuing crisis in the Eurozone and slowing growth in the emerging markets of China, India and South America.
With another batch of dismal data released by Markit/CIPS for the UK Manufacturing sector for the final quarter of 2012 and a gloomy assessment of the outlook for 2013, this is one painful economic hangover we still haven’t been able to shake off in the last 12 months.
So what impact has this had on the recruitment market?
During 2009 to 2011 candidates were moving for better job security, career prospects and more interesting roles.
Although these factors are still important, financial incentives are becoming increasingly important. It has been interesting to note that it has become more difficult to find good people willing to move this year. This is largely due to a reluctance of people to change jobs in an uncertain market and candidates being more selective about what opportunities they will consider. More importantly they need to have a financial incentive to move.
This year’s CIPS presidential theme was to make procurement the ‘profession of choice’ to attract both graduates and career-changers with a real passion for procurement in to the profession. This passion for procurement is strongly reflected in the people we continue to work with as both candidates and clients who are continuing to deliver against challenging targets whilst raising the profile of procurement with their stakeholders.
We expect organisations to demand more from their procurement functions next year as we witness a better understanding at board level of the real value of the profession. This will highlight where improvements need to be made which will in turn present opportunities for the most capable and ambitious professionals who can step up to the challenge and deliver.
Stephen Fletcher Director, Procurement & Supply Chain
Foreword
The survey focuses purely on executive and management roles within the procurement field
03
Contents03 Foreword04 PSD Overview05 PSD Procurement
& Supply Chain06 Salary Survey –
Methodology07 Analysis08 Average Salaries by
Sector09 Survey Questions15 Permanent Contacts
Welcome to PSD’s annual Procurement and Supply Chain 2012 salary survey, a useful guide to pay and reward across all sectors of the industry. It is the result of a comprehensive attitudinal salary survey completed online by 729 permanent and interim procurement professionals responding to an email invite and PSD’s own database of 15,000 procurement professionals.
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Permanent Salary Survey 2012/13
www.psdgroup.com /procurementPSD’s website continues to attract quality candidates and compliments our advertising response on behalf of clients
Recruitment Services
Our reputation has been built upon our ability to deliver highly effective recruitment solutions to our client companies. Each recruitment consultant is fully trained in file search, advertised selection, executive search and contracting, ensuring that we are in the strongest position to recommend solutions that are appropriate to the individual needs of our clients. The skills and experience of our consultants and the resources and capability of the PSD group enable us to handle a wide variety of recruitment requirements, from single key appointments to large-scale recruitment projects, in both international corporations and small private businesses.
Our People
Standing out in the recruitment market is never easy; most consultancies tend to offer similar services. However, at PSD we have a key point of difference – the quality of our people. It is the skills and knowledge of our consultants and support staff that provide clients and candidates with exceptional service. All staff successfully work within a values based culture.
Commitment to Quality
PSD is committed to the training and development of our people and to the continuing improvement in the quality of our services. We continue to adhere to ISO 9001:2008. Last year we underwent our three year assessment for Investors in People and in addition to applying for ‘standard’ renewal we decided to apply for ‘Silver Status’ and we were awarded this impressive accolade. There are more than 22,000 organisations in the UK with the IIP accreditation (40,000 plus internationally) but only 1.5% have Silver Status. Corporate Social Responsibility (CSR) standards are becoming increasingly more prominent in clients’ selection for suppliers and it is an excellent tool to use in our client relations and communications. The CSR standard incorporates companies policies, management and reporting on environmental, social issues and stakeholder relations criteria. This includes areas such as equal opportunities, health & safety, training and development and employee relations.
PSD is an international recruitment services organisation operating across Europe and Asia Pacific. We offer expert knowledge of our specialist functions; procurement, HR, technology, finance and accountancy, IT, marketing & sales, property & construction (inc FM), compliance/risk/audit & fraud, pensions & investments, law & company secretarial, and customer contact. Our strength lies in our dedicated approach to and expert knowledge of our specialist sectors and functional disciplines. Each specialist division of PSD is well established as a market leader within its specific field of recruitment at the Middle to Senior Executive level.
PSD: An Overview04
It is the skills and knowledge of our consultants and support staff that provide clients and candidates with exceptional service
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Permanent Salary Survey 2012/13
Roles We Recruit
Procurement DirectorHead of ProcurementProcurement ManagerLogistics DirectorContracts ManagerSenior BuyerBuyerCommercial ManagerSupply Chain ManagerSupply Chain DirectorProcurement Consultant
Specialisation
Each consultant works across the UK and within a specialist sector enabling them to build a greater understanding of a client’s requirements.
Specialist Sectors
Banking & Financial ServicesBusiness & Professional ServicesEnergy & UtilitiesFMCGIndustryLeisure & TravelMediaPublic Sector and Not for ProfitPharmaceuticals & Health CareProperty and ConstructionRetailTechnology
Online Advertising & PR
PSD has a strong online corporate identity. We advertise all our roles on procurement and supply chain websites and executive-level jobsites. All our adverts appear, generally with logos in our distinctive PSD colours. The PSD logo acts as a magnet to attract high calibre candidates. In addition PSD Proccurement has also set up a Linkedin group for procurement professionals: Procurement & Supply Chain Professionals UK.
PSD Website
PSD’s website continues to attract quality candidates and compliments our advertising response on behalf of clients.www.psdgroup.com
Our Strengths
Professional ConsultantsStrong presence in the marketplaceDetailed job brief taken In depth understanding of clients needsAgreed timescales for deliveryOver 50% of candidates referredUp to 80% of positions handled exclusivelyRepeat business accounts for over 70% of volumesProfessional and comprehensive contract serviceIntegrated Services –ContingencyAdvertised SelectionExecutive Search
Procurement & Supply Chain
05
PSD is a major player in the recruitment of individuals within Procurement & Supply Chain. We recruit across management levels and support functions up to board level. Typical salaries range from £40,000 - £150,000.
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Permanent Salary Survey 2012/13
www.psdgroup.com /procurementPSD’s website continues to attract quality candidates and compliments our advertising response on behalf of clients
The figures indicated refer to basic salary, which we find the best indication to allow for serious comparison.
Packages are usually calculated by adding 30 – 50% on top of basic salaries, but it is not uncommon for the more senior candidate to be have a package of up to 100% of basic salary.
This document will focus on the main findings compiled from all respondents with a further break down of average salary levels for our key specialist sectors
which provides a useful guide allowing for comparison between different sectors. Please note that this acts as a guide only and there will be anomalies as there are with any indicators.
For a more detailed opinion on pay and reward, do not hesitate to contact a member of the team listed at the back of this report.
PSD’s Salary Survey is the result of a comprehensive attitudinal salary survey completed online by 729 UK procurement professionals responding to an email invite (this is an increase of 28% from last year’s survey responses). We have also analysed our own database of 15,000 active and inactive procurement professionals.
Salary Survey – Methodology
06
For a more detailed opinion on pay and reward do not hesitate to contact a member of the team listed at the back of this report
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Permanent Salary Survey 2012/13
Salaries increased marginally this year with the biggest proportion (49%) receiving an increase between 1-4%. The second biggest increase was at the 5-10% level with 17.6% of respondents receiving a salary increase between these percentage points. At the top end of the scale 10.4% of all respondents received an increase in excess of 10%, which is slightly down on last year when 12.8% of candidates received a 10%+ increase. Interestingly 68% of respondents expect their salary to increase in the next year but judging by these results they are more likely to achieve this by making an external move.
The greatest difference has been in the range of salaries reported by respondents for each category of role with a wider spread of salaries in the management , head of and CPO categories. This is likely to be attributed to the significant increase in respondents from the 2011 survey with a wider range of professionals participating from a range of companies from SME’s to FTSE 100 companies.
Bonuses have seen the biggest increase at the 5-10% level with 39% of respondents receiving a bonus in this range this year in comparison with 19% of respondents last year at the same level. At the top end of the bonus scale
the amount has dropped off slightly with 10% of respondents receiving a bonus in excess of 25% in comparison with last year where over 12% respondents took home a bonus over 25%.
72.5% of respondents feel very positive or positive about their employment prospects should they decide to make a move and 70% of them are either proactively or passively looking for their next role. Which leaves only 30% of respondents happy in their current situation.
The role of the Recruitment Agency has clearly not diminished with just under half of respondents (48%) securing their last position through a recruitment consultancy, followed by 17% being recruited directly by their employer and 16% through their own networks.
Social media is playing an increasing part in supporting careers for both ongoing development and future opportunities. An overwhelming 91% use Linked In to help them with Twitter, Facebook and Google+ having equal status with 6.5%-8.5% of respondents using these sites.
Analysis:07
Overall the profession has not seen a great deal of movement with average salaries remaining consistent with last year’s results and no significant increases seen in any of the role categories.
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Average Salaries by Sector
PSD has collated the results from 729 online responses to it’s survey and it’s database of 15,000 procurement professionals
Permanent Salary Survey 2012/1308
Job Title Buyer/Senior Buyer
Manager (Category/
Procurement/Supply Chain)
Head of (Category/Procurement/Supply Chain)
Director/CPO
Banking & Financial Services £40K £60K £80K £120K
Business & Professional Services £40K £60K £75K £105K
Energy & Utilities (inc. Oil & Gas) £35K £60K £80K £120K
FMCG £40K £55K £80K £100K
Industry £33K £55K £70K £100K
Leisure & Travel £35K £45K £65K £110K
Media £55K £75K £95K £110K
Public Sector & Not for Profit £35K £55K £70K £120K
Pharmaceuticals & Health Care £35K £55K £70K £110K
Property & Construction (inc FM) £38K £60K £75K £110K
Retail £35K £66K £80K £105K
Technology £45K £70K £90K £110K
Please note these results are average salaries based on all respondents from across the UK. For a more comprehensive break down of results for each sector and location please contact the team listed at the back of this report.
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£0K
£10K
£20K
£30K
£40K
£50K
£60K
North(inc. NI & Scotland)
Midlands London & South East
South West
£29K-£45K £29K-£45K£29K-£40K
£30K-£48K
PSD successfully works with clients across the UK in a broad range of sectors
Q1What is your current basic salary (£)?
Buyer/Senior Buyer
£0K
£20K
£30K
£40K
£50K
£60K
£70K
£80K
£90K
North(inc. NI & Scotland)
Midlands London & South East
South West
£49K-£85K£49K-£80K
£50K-£85K£49K-£90K
Manager (Category/Procurement/Supply Chain)
£0K
£50K
£100K
£150K
£200K
£250K
North(inc. NI & Scotland)
Midlands London & South East
South West
£80K-£140K £80K-£140K
£85K-£200K
£80K-£140K
Director/CPO
£0K
£20K
£40K
£60K
£80K
£100K
£120K
North(inc. NI & Scotland)
Midlands London & South East
South West
£60K-£100K£59K-£90K
£60K-£109K
£60K-£100K
Head of (Category/Procurement/Supply Chain)
Permanent Salary Survey 2012/13 09
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Q2 Q3Do you receive a car or car allowance?
What is the value of your car or car allowance?
PSD actively works to identify the most talented procurement professionals and deliver outstanding customer service
y £3000-£3999 ......................................................................9.3%y £4000-£4999 ....................................................................13.0%y £5000-£5999 ....................................................................23.7%y £6000-£6999 ....................................................................19.7%y £7000-£7999 ....................................................................14.3%y £8000-£8999 ......................................................................9.3%y £9000-£9999 ......................................................................5.3%y £10,000+ ............................................................................5.3%
0%£3000-£3999
£4000-£4999
£5000-£5999
£6000-£6999
£7000-£7999
£8000-£8999
£9000-£9999
£10000+
5%
10%
15%
20%
25%
Permanent Salary Survey 2012/13
y Yes ....................................................................................55.2%y No .....................................................................................44.8%
10
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Our reputation has been built upon our ability to deliver effective recruitment solutions to clients that meet their needs
Q4 Q5What was your last bonus as a % of basic salary?
How much has your salary increased over the past twelve months?
y 0 .......................................................................................18.6%y 1-5% .................................................................................17.5%y 6-10% ...............................................................................21.5%y 11-15% .............................................................................16.4%y 16-20% ...............................................................................9.0%y 21-25% ...............................................................................7.0%y 26-30% ...............................................................................3.5%y 30%+ ..................................................................................6.4%
y 0% ....................................................................................25.6%y 1-2% .................................................................................19.2%y 2-4% .................................................................................29.7%y 4-6% ...................................................................................6.3%y 6-8% ...................................................................................3.1%y 8-10% .................................................................................5.7%y 10%+ ................................................................................10.4%
Permanent Salary Survey 2012/13 11
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Q6 Q7Do you expect your salary to increase over the next twelve months?
How positive do you feel about your employment prospects should you decide to move?
The PSD brand continues to attract high calibre candidates with over 1500 new CV’s registered in the last 12 months
y Very positive ......................................................................26.6%y Positive..............................................................................45.9%y Neutral ............................................................................. 21.5%y Negative ..............................................................................5.4%y Very negative .......................................................................0.6%
Permanent Salary Survey 2012/13
y Yes ....................................................................................68.0%y No .....................................................................................32.0%
12
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Our reputation and continuous improvement produces strong relationships with talented professionals allowing us to effectively match them with suitable opportunities that meet their career aspirations
Q8 Q9Are you considering a move at the moment?
Do you think CIPS is still relevant to the Procurement profession?
y Yes, proactively looking .....................................................26.7%y Yes, passively looking ........................................................40.0%y No .....................................................................................33.3%
y Yes ....................................................................................51.3%y No .....................................................................................29.9%y Don’t know ........................................................................18.8%
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To enable productive online networking between professionals PSD has an established Linked in group; Procurement & Supply Chain Professionals UK
Permanent Salary Survey 2012/1314
Which new media/ social media do you use to support your career?
y Linkedin .............................................................................91.3%y Facebook ............................................................................8.3%y Google+ ..............................................................................7.1%y Twitter .................................................................................6.5%y Do not use Social Media ......................................................6.3%y Other ...................................................................................1.3%
Q11
0%Linkedin Facebook Google+ Twitter Don’t Use Other
20%
40%
60%
80%
100%
Q10How do you secure your last permanent position?
y Recruitment Agency ..........................................................48.1%y Direct by employer ............................................................17.1%y Own Network ....................................................................16.4%y Recommended/approached ..............................................12.9%y Online advert .......................................................................6.8%y Other ...................................................................................2.9%
0%Recruitment
AgencyDirect
by employerOwn
NetworkRecommended/approached
Onlineadvert
Other
10%
20%
30%
40%
50%
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Permanent Contacts
Stephen [email protected] 234 0394
Paul McIntyrePrincipal [email protected] 234 0325
Cara ReganPrincipal [email protected] 234 0386
PSD2nd FloorAbbey House74 Mosley StreetManchester M2 3LW+44 (0)161 234 0300
PSD28 Essex StreetLondonWC2R 3AT+44 (0)207 970 9700
Permanent Salary Survey 2012/13 15
The PSD Procurement team focuses on mid to senior level appointments offering a full range of recruitment services.
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PSD encourages Interim professionals to invest in their offering to keep their skills and knowledge relevant and up to date
page 9
The competition has increased both in terms of available opportunities but also in terms of attracting the best talent. For those with significant relevant skills, the current climate still provides healthy opportunity and gives Procurement and Supply Chain further opportunity to raise its profile within the changing dynamics of the global economy.
It is this change that the majority of contractors embrace which is why they are embedded in leading the transformation and change projects being rolled out currently. Those that drive and embrace change will thrive, those that don’t have more challenging times ahead.
Summary
page 3
2012 could be considered another ‘flat’ year as there has been no significant increase in day rates or in the number of contracts available.
Interim Report 2012/13
Interim Contacts
Stuart WaltersPrincipal [email protected] 234 0310
Jane MorganSenior [email protected] 234 0316
PSD Manchester2nd Floor, Abbey House74 Mosley Street, Manchester M2 3LW+44 (0)161 234 0300
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Which new media/ social media do you use to support your career?
y Linkedin .............................................................................91.3%y Facebook ............................................................................8.3%y Google+ ..............................................................................7.1%y Twitter .................................................................................6.5%y Do not use Social Media ......................................................6.3%y Other ...................................................................................1.3%
Q9 Q10 How do you operate as an interim consultant?
Interim professionals bring specialist expertise to major projects during corporate and cognitive restructuring, systems implementations and planned or unplanned strategic change
y Limited Company ..............................................................79.7%y Umbrella ..............................................................................9.2%y PAYE .................................................................................11.1%
page 8
Interim Report 2012/13
0%LinkedinFacebookGoogle+TwitterDon’t UseOther
20%
40%
60%
80%
100%
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Our reputation and continuous improvement produces strong relationships with talented Interim professionals and therefore our matching process between client and candidates is unrivalled
Q7Q8 What is the main reason for being an interim?
How do you secure assignments?
y Flexibility of role .................................................................29.4%y Lifestyle balance ................................................................25.5%y Financial ............................................................................22.2%y Lack of permanent job opprtunity ......................................15.0%y Broaden Skills .....................................................................7.8%y Other ...................................................................................0.1%
page 7
Interim Report 2012/13
y Recruitment Agency ..........................................................72.5%y Own Network ....................................................................60.1%y Recommended/approached ..............................................37.9%y Direct by employer ............................................................14.4%y Other ...................................................................................3.3%
0%Own
NetworkRecruitment
AgencyRecommended/approached
Direct to client
Other
20%
40%
60%
80%
100%
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Q5Q6 What is the current duration of your contract?
What is the longest period in the last 12 months that you have been out of work?
We have over 10,000 professional Interims UK wide, offering a wide and diverse range of specialist skills
page 6
Interim Report 2012/13
y 0-3 months .......................................................................22.2%y 4-7 months .......................................................................35.3%y 8-11 months .....................................................................11.8%y 12-18 months ...................................................................18.3%y 19-24 months .....................................................................5.2%y 25 months + ........................................................................7.2%
y 2-4 months .......................................................................37.9%y 5-7 months, ........................................................................9.8%y 8-11 months .......................................................................3.3%y 12 months + ........................................................................4.6%y No time out of work ...........................................................44.4%
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Our reputation has been built upon our ability to deliver highly effective recruitment solutions to our clients
Q3Q4 How much has your daily rate increased over the past twelve months?
Do you expect your daily rate to increase over the next twelve months?
Interim Report 2012/13
y 0% ....................................................................................55.6%y 1-2% ...................................................................................7.2%y 2-4% ...................................................................................5.2%y 4-6% ...................................................................................2.0%y 6-8% ...................................................................................6.5%y 8-10% .................................................................................7.2%y 10%+ ................................................................................16.3%
y Yes ....................................................................................51.0%y No .....................................................................................49.0%
page 5
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0%£100-£199
£200-£299
£300-£399
£400-£499
£500-£599
£600-£699
£700-£799
£800-£899
£900-£999
£1000+
5%
10%
15%
20%
25%
Q1Q2 Which of the following describes your job title?
What is your current Interim rate?
PSD actively works to identify the most talented Procurement professionals and deliver outstanding customer service
Interim Report 2012/13
page 4
y Procurement/Category/Supply Chain Manager ..................34.0%y Head of Procurement/Category/Supply Chain Manager ....22.8%y Other .................................................................................13.1% y Change/ Transformation Manager .......................................9.1%y Chief procurement Officer/Director ......................................7.2%y Program Director/Lead ........................................................5.9%y Contract Manager ...............................................................4.6%y Buyer ..................................................................................3.3%
y £100-£199 ..........................................................................3.3%y £200-£299 ..........................................................................3.3%y £300-£399 ........................................................................17.6%y £400-£499 ........................................................................20.3%y £500-£599 ........................................................................20.3%y £600-£699 ........................................................................15.0%y £700-£799 ........................................................................11.1%y £800-£899 ..........................................................................2.0%y £900-£999 ..........................................................................2.0%y £1000+ ...............................................................................5.2%
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Interim Report 2012/13
As 48% of PSD’s registered candidates are now, or will consider becoming professional Procurement contractors, this still remains a highly valuable document for the industry. Contractors are a key element in a large number of procurement teams and are an increasingly valued resource to major organisations.
The results within this Interim Report 2012/13 were gathered from a comprehensive online survey and database analysis which involved 2000 procurement professional contractors.
When questioned, the majority of the respondents (33.9%) classified their role as Procurement/Category/Supply Chain Manager and 22.8% were titled Head of Procurement/ Category/ Supply Chain. This reflects that there are still very few Buyers or Senior Buyers who operate on an interim basis.
The report reveals that the majority (40.6%) of Procurement Consultant day rates for 2012 remain between £400-£600 per day. The level at which most Procurement Consultants become Interim Professionals has remained the same as 2011 with 55.6% stating their rate had not increased in the last 12 months. This highlights the stagnant, flat environments that have prevailed in 2012, coupled with small pockets of activity and fewer broad ranging projects across all sectors. Interest in opportunities remain high and PSD’s Interim database grew by 21% in 2012.
Furthermore, we found that 57.5% of respondents were in a contract of between 0-7 months duration with a further 30.7% working in a contract in excess of 12 months. Indicators are showing that even though short term contracts are still common place, extensions have been prevalent in 2012.
We have seen a significant contraction of budgeted roles over the past year, which combined with the increase in contractor numbers through both private and public sector cuts, has highlighted the extreme
competition for places. Gone are the days when hiring managers recruited the first contractor they interviewed that could ‘do the job’. There has been an 9% increase in the length of time out of contract compared with 2011’s results and significantly 37.9% of contractors had a gap of between 8-16 weeks
The greatest proportion of those questioned considered themselves professional contractors (88.9%) and would not usually consider permanent work. The reasons for making this choice were varied but the three main themes were flexibility (29.4%), lifestyle balance (25%) and financial rewards (22.2%).
Professional social media sites have become an essential part of an Interims network “toolkit”. A huge 93.7% of responses said that they use some form of Social Media site to support their career. We expect this figure to edge closer to that 100% next year. Having an on-line “Personality” will be an essential part of everyone’s profile. Hiring managers, recruiters and new acquaintances are increasingly using sites to form opinions and gather references on individuals and therefore can easily make an initial opinion before inviting a candidate for interview.
In turn, as professional recruiters we have advised many Interim’s that having the correct CV for the modern market is equally as important. There are many do’s and don’ts in relation to your Social Media Personality including having a professional photograph and not a holiday snap. Also contributing to relevant forums, groups and adding recommendations on linked in is also critical.
From PSD’s point of view a pleasing fact from the survey was that 72.5% of respondents stated that recruitment agencies remained their primary method of sourcing their assignments and they did not envisage this changing in the coming 12 months.
Foreword
Interim Contacts
Principal Consultant:
Stuart Waltersstuart.walters@ psdgroup.com
0161 234 0310
Senior Consultant:
Jane Morganjane.morgan@ psdgroup.com
0161 234 0316
page 3
Welcome to the second PSD Procurement and Supply Chain Interim Report.
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InterIm rePOrt2012/13 Procurement & Supply Chain
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