Organisations have never been so aware of the cost saving benefits of an effective procurement function. Procurement professionals are increasingly being given a strategic seat at the decision-making table, making now an exciting time to be working in the profession.
This development has had an impact on salaries too. The third CIPS/Hays Procurement Salary Guide and Insights 2017 has discovered that 64% of procurement professionals received a pay increase last year. Salaries increased on average by 5.3%, over double the national average increase of 2.2% (ONS, Sept 2016). But where are the biggest changes being seen?
It’s no longer all about London
Unsurprisingly, professionals in London are seeing the highest salaries, at an average of £57,664. However, a change is taking place outside of the capital. Significantly higher average salaries were seen in the North West, East of England and Wales compared to previous years, a clear sign of increased investment in the profession outside of London.
We have also seen some regional differences in bonus payments. Professionals in London were most likely to receive a bonus payment (47%). However, we are again seeing a shift in other areas of the UK. Those in Wales and the East Midlands were more likely to receive a bonus compared to last year, rising to 24% and 35% respectively.
A good time to be an interim
Those working in a permanent capacity are not the only ones seeing their salary increase. Average interim day rates have risen from £456 to £505, with the highest salaries found in strategy and performance projects (£781).
Gender also has an influence on the day rates received. Females, on average, receive £478 compared to £515 for men. Gender pay gaps can be seen across all parts of the procurement profession, and is an issue that we should continue to address to help bring more talent into the already skill short market.
The qualifications price tag
With nearly half (47%) of employers facing a lack of candidates with the right sector skills and experience when hiring, it is clear the skills gap in procurement continues to grow. Indeed the value of professional qualifications is not lost on employers.
Procurement professionals with an MCIPS qualification can command salaries which are on average 22% higher than those without. Those with FCIPS membership also benefit – they are not only more likely to receive a bonus, but also receive a higher payment at 22% of their salary on average compared to 11% for those without membership.
Most public sector organisations request either full MCIPS membership or those studying towards the qualification, and we are seeing an increasing number of employers in the private sector express a preference for the qualification. The war for the top qualified talent is therefore only set to increase as competition for key skills grows.
Although salary is not the only factor considered by employees, it is a significant one, with 72% of professionals citing it as important when searching for a new role. Request your copy of the CIPS/Hays Procurement Salary Guide and Insights 2017 to benchmark your salaries against others in your sector and see how you compare.
To find out more, or to discuss your recruitment needs, please contact your local consultant.