Hays UK blog


Procurement salary increases to support strategic change

By Scott Dance, Director of Hays Procurement & Supply Chain

In recent years, I have seen the procurement profession continue to go from strength to strength. Roles are becoming even more involved at a strategic level, as organisations better recognise the value that a strong procurement function can offer. However, many employers are also facing acute skills shortages, and competition for talented professionals remains fierce.

As a result, we have seen employers increasing salaries so they are able to compete for the most in-demand professionals. Our recent Hays Salary & Recruiting Trends 2018 guide shows that 69% of procurement and supply chain employers increased salaries in the last year, exceeding expectations from last year when 64% predicted salaries would increase.

Professionals not satisfied, despite salary increases

Our guide shows that salaries in procurement and supply chain roles enjoyed a healthy increase, higher than the overall UK average. I take this as a positive sign for the profession, and this follows an ongoing trend reflecting the increasing demand for professionals seen in recent years.

Although salary increases are widespread across the profession, employees are still not satisfied with their pay. Over half (56%) of employees told us they are dissatisfied with their remuneration. This dissatisfaction could lead to further challenges for employers as they try to overcome skills shortages, with a third of professionals saying they are choosing to leave a role due to their salary or benefits package. So where have we seen salaries changing the most and how does your salary offering compare?

Leadership roles in demand

Transformation is taking place across both the private and public sectors, driving demand for much needed leadership talent as employers seek those with the skills to manage strategic transformation projects, improve processes and continue to drive cost efficiencies.

This is causing salary increases which are above the overall UK average across a number of senior procurement roles, with Heads of Procurement, Procurement Directors and Procurement Managers receiving some of the largest rises.

Regions outside of London seeing higher salary growth

Relocating procurement functions to regional locations around the UK continues to be a recurring theme, as a means to drive cost efficiencies. This has resulted in us seeing a number of regions outside of London with strong salary increases to attract in-demand professionals where candidate pools may be low.

Nearly all regions have seen salary increases above the overall UK average, with Wales, the East of England and the South and North West of England seeing some of the highest. Salary increases in London still show growth, but not to the extent of other UK regions.

Despite salary increases being seen across many roles in the profession, a shortage of skills combined with employee salary dissatisfaction will remain a key challenge for procurement employers to overcome in order to find and retain talent.

Find out further recruiting trends for procurement, request your copy of the Hays UK Salary & Recruiting Trends 2018 guide.

To find out more, or to discuss your recruitment needs in this field, please contact your local consultant.

About this author

Scott joined Hays in 2002 as a Trainee Consultant, and is now Director of Hays Procurement & Supply Chain. With over 15 years’ experience, Scott advises clients on workforce management solutions, works with the industry institute CIPS as a trusted knowledge partner, and provides strategic leadership to Hays’ procurement and supply chain recruitment experts.


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