CIPS_Salary_Survey_2016_LR

CIPSMarketing

Procurement Salary

Guide and Insights 2016

Key Trends and Findings

Leading global excellence in procurement and supply


Procurement Salary

Guide and Insights 2016

This report is a fascinating read. From understanding regional differences and the value of

CIPS membership, to gender and sectoral differences, there’s nothing else quite like this for

our profession; no other publication that explores in depth the appreciated value of

procurement and supply chain management.

This year, in particular, it is obvious that there has been a

significant rise in confidence.

Businesses are becoming more confident that securing trained

and professionalised staff is the route to success and the way to

tackle some serious issues in the world, because the issues we

are all confronting are immense. For instance, over 35.8 million

people are suffering from exploitation or modern slavery and

many are working in our supply chains. In addition to the

disturbing ethical and moral issues, corruption automatically

adds 10% to the costs of business and 25% to Public Sector

spending in developing countries (evidenced in the UK too).

This is something that procurement people can take a lead role

in - tackling cyber security threats, supply chain risk and

reducing business cost. It’s no wonder that attracting and

retaining the right procurement talent has become such a

focus.

Our professionals are becoming more confident too. Good

candidates have high expectations for salary packages, but are

not motivated purely by monetary rewards. Staff need to be

nurtured and supported to develop and our professionals

demand the development they deserve to grow.

The most significant increase in salary rises highlighted by the

report is between the Professional and Advanced Professional

levels. To me, this underlines the importance of continuing

professional development. The demand for professionals has

also increased to reflect the continuing, if bumpy, economic

recovery and the recognition that professional procurement

staff at entry-level are essential to business.

It is no surprise to me that the value of CIPS membership is

recognised and rewarded by employers. In general, MCIPS

members enjoy higher salaries than their non-MCIPS

equivalents. The difference is most marked at tactical level,

where MCIPS salaries are on average 29% higher. Bonus

percentages have also risen quite dramatically from last year’s

figures adding up to 13.2% of salary in London and the South

East to 10% in Yorkshire for example and three quarters of

those eligible received a bonus.

There are some disappointing results that have remained

constant and unmoving from last year. There is continuing

disparity between the Public and Private Sectors, with the

former still lagging behind in rewards. Also, regarding gender

pay, women are still paid less than men for the same job; they

are under-rewarded and under-recognised for their

achievements and this is something that needs to be

addressed.

The changing face of business is an ever-popular topic. There

have been so many developments in recent years including the

‘uberisation’ of business models, the management of complex

data, plus the need to develop a network of relationships using

more soft skills so that our professionals can be all things to all

sectors. This report corroborates this and confirms that our

profession continues to be in the ascendancy.

David Noble FCIPS

Group CEO

Chartered Institute of Procurement & Supply

www.CIPS.org/salarysurvey


Increased confidence means

increased demand

We are delighted to once again partner with CIPS to further explore the key trends and

issues affecting the procurement and supply chain profession.

The results and conclusions of the CIPS survey and analysis of

job registrations and placements made by Hays over the past

12 months reflect the rising business confidence within the UK

and show a continuing demand for talent. We have seen a

strong desire to expand permanent workforces, however with

demand continuing to outstrip supply, and candidates’

expectations remaining high, many employers have increased

their flexible or interim workforce to compensate. With a high

percentage of procurement professionals looking to progress

their career and move roles in the coming year, the challenge

faced by organisations to recruit the right people to enable

growth shows no sign of improving.

In response to this competitive environment, many

organisations have reviewed and improved salaries and

benefits packages with the aim to both retain their current

staff and attract new employees. Training and development is

seeing renewed investment and the opportunity to work

towards MCIPS qualification is an ever more popular

This year’s report clearly indicates that the strong demand

for procurement professionals has continued in the UK with

demand consistently out-pacing supply, and is mirrored in

Australia and Sub-Saharan Africa. This then places a

premium on attracting and retaining the very best

procurement professionals. A shortage of highly skilled

procurement professionals has put upward pressure on

wages, where the higher wages are used to attract new

employees and retain existing employees. Furthermore

there appears to be an increase in the willingness of

procurement professionals to move jobs in the next 1-2

years. Interestingly wages are not the only lever which is

being deployed to retain procurement professionals, many

organisations are turning to training as a way of retaining

employees with evidence that MCIPS is being used to both

retain and develop workers.

The shortage of procurement professionals has also

resulted in many organisations seeking to ‘grow their own’

capability. This is manifest in a willingness of organisations

to increase their learning and development spend in an

effort to develop some of the ‘less proven’ talent that by

necessity is being attracted into the profession. In addition

flexible working patterns are being utilised by some

development and retention strategy for many organisations.

Competition for talent is starting to impact on recruitment

strategy. Organisations are expanding job specifications and

looking at future potential as much as current capability.

Those employers who can embrace change and deploy new

hiring strategies will have the edge in what will remain a

highly competitive market.

We hope you find this report of use, as a guide for your own

career or when planning your organisations recruitment

requirements.

www.hays.co.uk/procurement

Nicky Taberner

Director

Hays Procurement & Supply Chain

employers to increase the attractiveness of the profession

to millennial workers. These challenges are reflected in the

fact that 74% of organisations surveyed in this report said

finding the right talent was the major challenge that they

faced when recruiting new employees.

In general the outlook for procurement professionals is

good. Demand for their services outstrips supply and this is

reflected in healthy wage appreciation. Perhaps as

important is the increased desire on the part of employers

to train and develop new entrants to the profession and

seasoned professionals. This reflects the need to create a

pipeline of talent and the desire to retain employees. Most

importantly from the employees perspective they highly

value development opportunities and are more likely to

remain with those organisations that provide the

opportunities.

Dr John Glen

CIPS Economist and

Senior Lecturer Economics

Cranfield School of Management

3


About this report

The CIPS/Hays Procurement Salary Guide and Insights 2016

allows procurement professionals and employers to:

• Benchmark salary and bonuses for different roles and profiles

• Highlight career aspirations

• Understand perceptions of procurement.

The report is divided into six sections:

SECTION 1 page 5

Salaries, bonuses and benefits

SECTION 2 page 21

Procurement as a career

SECTION 3 page 33

Perceptions of procurement

SECTION 4 page 41

Interims

SECTION 5 page 47

Australia

SECTION 6 page 53

Sub-Saharan Africa

Within each section we have set out the statistical findings of our

survey alongside conclusions drawn by the experts involved in

putting together the report, as well as 6 case studies that illustrate

examples of best practice.

The findings in this report are based on research conducted in September 2015 via

an online survey among professionals currently working in procurement. This year

over 4000 professionals globally completed the survey. The results were analysed

by PARN, Professional Associations Research Network.

Throughout this document different levels of professional seniority have been

summarised into five levels of competency. These are described in the chart below

along with some examples of job roles that fall into each group…

Competency level

Typical job roles

Advanced Professional >

Head of Procurement, Procurement Director, Commercial Director, Chief

Procurement Officer, Supply Chain Director, Head of Sourcing.

Professional >

Procurement Manager, Purchasing Manager, Senior Category Manager, Supply

Chain Manager, Strategic Procurement Manager, Operations Manager,

Commercial Manager, Head of Logistics.

Managerial >

Senior Buyer, Category Manager, Contracts Manager, Contracts Officer, Logistics

Manager, Supply Chain Executive.

Operational >

Buyer, Procurement Specialist, Supply Chain Analyst, Procurement Executive,

Procurement Officer, Supply Chain Planner, Logistics Analyst.

Tactical >

Purchasing Assistant, Assistant Buyer, Admin. Assistant, Stock Controller,

Contracts Administrator, Inventory Planner, Assistant Contracts Officer.

www.CIPS.org/salarysurvey


Section 1

Salaries,

bonuses

and benefits

This section focuses on how procurement and supply

professionals are remunerated. Comparing experience,

region, sector, MCIPS v non-MCIPS, gender, and

considering bonuses and additional financial v

non-financial benefits.

The survey results indicate that growing confidence and demand is driving

salary increases, with a rise in the average level of pay for procurement

people to 5%; considerably higher than the national 2.9% average*. The

highest salary increases by percentage are reported at Contracts Officer

(19%), Supply Chain Executive (11%), Procurement Analyst (7%) and Category

Officer (also 7%) levels, and are seen within the Private Sector at an average

of 5.6%, compared to 3.5% in the Public Sector. However, two Public Sector

categories are in the top three salary increases (Education 10.8%, Central

Government 9.1%), with Marketing, Advertising and PR the top Private Sector

performer at 9.5%.

Similarly, bonuses are reported as increasing, in terms of eligibility for

receiving bonuses, percentage of those eligible actually receiving a bonus and

the size of the bonus. Again, this reflects greater market confidence and the

increased value organisations are placing on the role of procurement.

In terms of benefits, flexible working features strongly as the most commonly

received/offered benefit in the Public and Charity/Not For Profit Sectors, and

interestingly career development and training have become valued benefits

in all three sectors. This reflects the growing importance across the board of

retaining and developing talent as a means of addressing the skills shortage

and the cost of recruiting and embedding new staff. Indeed, offering benefits

like these that are in high demand from candidates may be an additional way

for employers to differentiate themselves in an increasingly competitive

recruitment market. This is explored more fully in Section 2.

*ONS statistics, September 2015


Salaries

by seniority

£95k

This year we have seen a rise in the average level of pay increase for

procurement professionals across the UK, from 2.5% in 2015 to 5% in

2016. This is significantly higher than the national average at 2.9%*

and we believe this demonstrates the growing value organisations

place on the role of procurement.

AVERAGE SALARY

Procurement Director

The UK average salary for all procurement

and supply professionals is £44,226

68% of respondents received a pay increase (compared to 61% in

2015), with the average salary up from £41,661 to £44,226. The

highest increases are shown at Contracts Officer, Supply Chain

Executive, Procurement Analyst and Category Officer levels. The most

significant increase is seen between the Professional and Advanced

Professional levels, particularly among Procurement Directors where

average salaries have increased from around £89,000 last year to

around £95,000. The role of Buyer was the most recruited for in the

last 12 months, so the salary increase for this job title may have been

partially driven by demand.

Average procurement

professional salary

increase

National Average

pay increase*

5.0%

2.9%

Those who have been in the profession longer are more likely to have

received a salary increase. The percentage of this increase does tend

to reduce with seniority, but of course it's a lower percentage of a

higher salary so the value is higher. For example, 52% of those

working in procurement for up to two years received a salary increase

averaging 6% of annual salary; 73% of those working in procurement

for over nine and up to 19 years received an increase averaging 4%.

MCIPS brings credibility to

your career and confidence

to employers. Join today

and start the journey to

your professional licence.

Requirement for CIPS qualifications differs slightly between Public and

Private Sectors. Almost every organisation Hays recruits for in the Public

Sector requests MCIPS full membership or studying towards achieving

MCIPS membership as a pre-requisite for their procurement roles.

Private Sector employers are less likely to request MCIPS as a

mandatory requirement, although increasing numbers of commercial

organisations do now list qualification at MCIPS membership level as

desirable. Most organisations will be flexible and accept a professional

without MCIPS membership if they deem that they have the right

procurement experience. However it definitely puts you one step

ahead of those who don’t have it.

29%

AVERAGE SALARY DISPARITY

CIPS Tactical level members

MCIPS v non-MCIPS

The higher earning power

of FCIPS members

28%

AVERAGE SALARY DISPARITY

Procurement Directors

FCIPS v non-FCIPS

£121,714

£87,200

FCIPS

Non-FCIPS

www.CIPS.org/salarysurvey


UK average salary by job title

Average % salary increase

Chief Procurement Officer

101,294

5%

Operational Managerial Professional Advanced Professional

Procurement Director

Supply Chain Director

Operations Director

Commercial Director

Head of Sourcing

Head of Operations

Head of Procurement

Senior Category Manager

Strategic Procurement Manager

Supply Chain Manager

Operations Manager

Commercial Manager

Procurement/Purchasing Manager

Sourcing Manager

Category Manager

Supply Chain Executive

Senior Buyer

Logistics Manager

Contracts Manager

Procurement Analyst

Procurement Executive

Supply Chain Analyst

Procurement Specialist

Logistics Analyst

Contracts Officer

Buyer

Supply Chain Planner

70,778

70,250

64,594

57,609

56,191

51,594

45,010

44,111

46,702

45,973

42,292

41,886

38,920

37,643

37,070

29,813

39,153

35,942

34,313

32,000

30,764

29,599

28,949

81,750

81,571

80,693

95,180

5%

4%

2%

3%

6%

3%

5%

4%

4%

4%

4%

6%

4%

5%

5%

11%

5%

4%

5%

7%

2%

6%

6%

0%

19%

5%

4%

Procurement/Purchasing Officer

28,276

5%

Category Officer

27,622

7%

Contracts Administrator

29,226

4%

Inventory Planner

27,707

3%

Tactical

Assistant Procurement/Contracts Officer

Stock Controller

Assistant Buyer

24,774

22,510

22,323

6%

5%

5%

Administrative Assistant

21,253

3%

Purchasing Assistant

20,843

4%

*ONS statistics, September 2015

GBP 000s 10 20 30 40 50 60 70 80 90 100 110

7


Salaries

by region

£ 44.2k

As expected, London and the South East continue to lead the way, with the

highest salaries and bonuses being reported again this year.

Those in London reported the highest salaries with an average of £59,000 (up

from £54,000 in 2015 which is a 9% increase), compared to a national average

of £44,200. Londoners also saw the highest bonuses at 13.2% of their salary,

which is a huge increase from the 5.3% increase reported in 2015. This growth

in bonus percentage is something we are seeing across the country, which may

again reflect the rising value placed on procurement as a function.

Once again, professionals in Wales cited the lowest average salaries of

£35,500, although this is an improvement on the figure of £34,000 reported in

2015. This has always been the case in Wales, partly due to the large number

of Public Sector teams based there.

AVERAGE NATIONAL SALARY

Procurement

Professional

London

£59k

UK average salary by region

Average bonus as % of salary

London

South East 45,200

South West 40,700

West Midlands 42,600

East Midlands 40,300

East of England 41,100

North East 39,300

North West 39,100

Yorkshire and Humber 37,900

Northern Ireland 39,000

Scotland 44,300

Wales 35,500

59,000

13.2%

10.9%

8.0%

9.3%

9.5%

9.0%

9.1%

9.8%

10.1%

9.7%

8.8%

8.4%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

% of UK respondents receiving a salary increase UK average % increase

London

South East 72%

South West 69%

West Midlands 74%

East Midlands 70%

East of England 70%

North East 74%

North West 70%

Yorkshire and Humber 71%

Northern Ireland 63%

Scotland 57%

Wales 68%

61%

5.6%

5.4%

4.1%

5.1%

4.8%

4.3%

4.0%

5.1%

5.1%

4.3%

4.4%

3.6%

www.CIPS.org/salarysurvey

% 0 10 20 30 40 50 60 70 80 90 100


Salaries

by sector

75%

Perhaps surprisingly this year, we are seeing the

highest average salaries in Charity/Not For Profit

at £49,600, followed by the Private Sector and

Public Sector. This may be as a result of

Charity/Not For Profit investing in senior

procurement professionals as these organisations

take a more commercial approach. Average pay

increases are still highest in the Private Sector at

5.6% of salary, compared to 3.4% last year. The

average level of salary increases has also risen in

the Public Sector, from 1.1% to 3.5%, and in

Charity/Not For Profit, from 1.7% to 3.4%.

Arguably, in the Public Sector the pay increase we

are seeing reflects promotion through

performance to a higher banding, rather than a

net 3.5% increase for those in the same role,

emphasising the case for effective performance

management and career development to

retain staff.

% of professionals

receiving a salary increase

72%

60%

75%

RECEIVED A SALARY INCREASE

Charity/Not For Profit

Private Sector

Public Sector

Charity/Not For Profit

As for last year, we believe that higher instances of

non-financial benefits, such as flexible working,

may offset lower average salaries in a bid to attract

and retain talent in the Public Sector. But those in

the Private Sector are still more likely to receive

other financial benefits, such as private medical

insurance, life assurance and a car allowance.

(See page 19 for information on benefits).

59%

50%

32%

Life assurance

Private medical insurance

Car allowance

UK average salary by sector

UK average sector pay

increases as % of salary

Private Sector

46,300

5.6%

Public Sector

38,900

3.5%

Charity/Not For Profit

49,600

3.4%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

9


Salaries

Private Sector breakdown

9.5%

Within the Private Sector the highest paying industries are Banking,

Finance and Insurance, and Professional and Business Services.

Broadly speaking pay rises have increased this year. Last year Professional

and Business Services saw the largest increases of 5.6%, against a Private

Sector national average of 3.4%. This year no fewer than ten of our

categories show higher increases than this, with Marketing, Advertising

and PR topping the list at 9.5%, against this year’s Private Sector national

average of 5.6%.

AVERAGE PRIVATE SECTOR

PROCUREMENT PAY RISES FOR

Marketing, Advertising and PR

Marketing, Advertising

and PR average

Private Sector average

9.5%

5.6%

89%

53–73%

Professionals in

Pharmaceuticals and

Life Sciences received

a salary increase

Professionals in other

industries received a

salary increase

UK average Private Sector procurement salaries

UK average pay increases as

% of salary by sector

Arts, Entertainment and Recreation

Banking, Finance and Insurance

Construction

Defence

Energy, Water and Mining

Healthcare

Hotels and Catering

IT

Manufacturing and Engineering

Marketing, Advertising and PR

Pharmaceuticals and Life Sciences

Professional and Business Services

Retail and Wholesale

Telecoms

Transport and Storage

48,787

69,570

41,226

38,962

45,090

41,687

46,018

54,966

41,620

45,914

56,335

64,267

42,898

60,515

49,319

4.7%

4.1%

8.7%

4.4%

4.7%

4.8%

2.2%

7.2%

5.3%

9.5%

4.2%

5.5%

5.8%

7.4%

4.4%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

www.CIPS.org/salarysurvey


Salaries

by sector and seniority

30%

In 2015, we saw a marked disparity in salaries at

all levels between the Private and Public Sectors.

This year Private Sector salaries remain markedly

higher than Public Sector salaries by 19% on

average, with the exception of those in Tactical

level roles.

HIGHER AVERAGE SALARIES

Private Sector

Advanced Professional level

At Advanced Professional level, salaries are 30%

higher in the Private Sector and 20% higher at

Professional level. Like last year, this could be

due to employers in the Public Sector being

constrained by set salary bandings, while Private

Sector companies have more freedom to offer

higher salaries to attract the right candidates.

£82k

£66.3k

Private Sector

Public Sector

Average Private v Public Sector salaries

Salary differentials at

each seniority level

Advanced Professional

63,291

81,966

+£18.7k

30%

Professional

55,599

46,483

+£9.1k

20%

Managerial

41,936

40,063

+£1.9k

5%

Operational

32,851

28,283

+£4.6k

16%

Tactical

23,102

23,154

-£53

-0.2%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

11


People-focused procurement

training and retaining professionals

Maidstone and Tunbridge Wells NHS Trust

The Maidstone and Tunbridge Wells NHS Trust has recently

completed a comprehensive review and transformation of its

procurement function.

The review, aligned with the principles of Lord Carter’s recent review

of efficiency in the NHS, identified that there had been a gradual

reduction in the Trust’s investment in procurement capacity and

expertise over a number of years. This underinvestment had been

accompanied by increasing demand and costs; as well as decreasing

efficiency and benefits.

They also found that the procurement function had a direct

influence over only 29% of its non-pay spend, dramatically limiting

its effectiveness.

To combat the inefficiencies and segregated functions plaguing the

Trust, a new operating model for procurement was gradually

introduced; one which signifies a major investment in people and

technology whilst developing strong partnerships with suppliers and

stakeholders in order to share resources and combine expertise.

Key to the programme was the introduction of comprehensive

professional development. The Trust developed apprenticeship and

management trainee schemes and created links with universities to

attract and develop emerging talent who could increase the

efficiency and lower the cost of the existing procurement function.

Working with Hays, the Trust launched a digital marketing campaign

alongside traditional advertising to promote the new roles and

communicate the overall procurement objectives.

Competition with the Private Sector, escalating pay measures and

nationwide austerity measures were all challenges the Trust had to

overcome. The rigid rules governing NHS salary uplifts proved an

obstacle as candidates often expect a significant pay rise when

moving roles. Benefits, including opportunity for development and

evident career progression, were vital to overcoming this challenge.

Furthermore, a comprehensive staff development programme,

linking an individual’s current competencies with the expected

competencies of both their current role and where they would like

to progress to next, was created. This, alongside a tailored personal

development plan for each employee, was supported by fully

funded professional training.

The new focus on the development of people, for an ongoing

solution to the procurement problem, rested upon creating a sense

of value and wellbeing for the Trust’s procurement professionals. As

well as offering training and clear progression, they make sure that

staff are well motivated, with challenging but achievable objectives.

Success is acknowledged and well rewarded.

Over the last 12 months, procurement has grown to command

almost 60% of non-pay spend, and has tripled the benefit to the

Trust as a whole. The establishment of a procurement strategy

committee involving key senior stakeholders is driving their longterm

strategy forward and ensuring the procurement function is

delivering and constantly developing. They now have board level

support and buy-in, with procurement professionals being involved

at every level, supporting key organisational decisions.

Despite their successes and the continuation of the programme, the

Trust continues to face challenges. However, the expectation to

deliver is now far greater. The organisation has invested in its

procurement function to deliver greater value whilst achieving its

strategic objectives. This involves delivering against tough cost

improvement programmes, whilst supporting the organisation’s

need for continuous improvement in quality. The mounting

challenges require dedicated, experienced and highly

knowledgeable procurement professionals, which is where the

Maidstone and Tunbridge Wells NHS Trust’s investment in training

and retaining its people, truly pays off.

The Trust was transparent about its progression paths, from entry

level or trainee right up to director of procurement. In order to both

attract and retain the best talent, relevant training and exposure to

challenging situations are continuously provided throughout the

employee’s career with the Trust.

DAVID WALACH

Programme Director

Maidstone and Tunbridge Wells NHS Trust

www.CIPS.org/salarysurvey


Salaries

by sector and region

29%

We are still seeing a disparity between Private and

Public Sector salaries across the UK, and this remains

most marked in London and the South East. The other

large difference is in Scotland, with Private Sector pay

averaging £48,527, compared to £37,498 in the Public

Sector. The East and West Midlands enjoy relatively

high salaries and this may correspond to the high salary

increases we're seeing in Pharmaceuticals and Life

Sciences, and Manufacturing, which have large

concentrations in these areas.

DISPARITY IN LONDON

Private Sector and Public Sector

Average salaries for London

Private Sector

Public Sector

£63.8k

£45.6k

UK average Private v Public Sector salary by region

Disparity between Private

Sector and Public Sector

London

45,559

63,824

+£18.3k

29%

South East

46,806

41,316

+£5.5k

12%

South West

41,585

37,020

+£4.6k

11%

West Midlands

43,458

38,520

+£4.9k

11%

East Midlands

32,997

43,280

+£10.3k

24%

East of England

North East

North West

Yorkshire and Humber

Northern Ireland

42,338

37,819

39,840

38,185

39,548

38,115

38,170

37,236

39,787

38,653

+£4.5k

11%

+£1.7k

4%

+£1.5k

4%

+£0.9k

2%

+£1.1k

3%

Scotland

37,498

48,527

+£11k

23%

Wales

36,288

35,250

+£1.0k

2%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

13


Salaries

by gender

£12.7k

Women are also less likely to have received a salary

increase in the past 12 months: 71% of men said that

they had received a pay rise compared to 65% of women.

However, of those who did receive a salary increase, the

increase itself was about the same for both men and

women at 5%. This is a promising sign of a step towards

pay equality between the genders and may also be a

result of upcoming legislation changes in the form of

mandatory pay gap reporting from Spring 2016. We will

be interested to see how this changes in future surveys.

£78.4k

£65.4k

AVERAGE

DISPARITY

Advanced

Professional

level

UK average salary by gender

Male v female average

salary difference

Advanced Professional

65,371

78,374

+£12.7k

19%

Professional

Managerial

43,209

41,262

54,473

47,950

+£6.5k

14%

+£1.9k

5%

Operational

Tactical

22,969

23,210

32,532

29,854

+£2.7k

9%

-£0.4k

-1%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

Roles in which women earned more than men

Female v male average

salary difference

Supply Chain Manager

Procurement/

Purchasing Manager

51,000

53,300

46,200

47,500

+£2.3k

4%

+£1.3k

3%

Contracts Officer

Purchasing Assistant

Assistant Buyer

Stock Controller

Assistant Procurement/

Contracts Officer

20,400

21,000

21,200

22,900

21,800

23,900

28,700

23,500

25,400

31,800

+£3.1k

10%

+£0.6k

3%

+£1.7k

7%

+£2.1k

9%

+£1.9k

7%

www.CIPS.org/salarysurvey

GBP 000s 0 10 20 30 40 50 60 70 80 90 100


Salaries

by gender and sector

21%

The gender pay gap is most marked in the Private Sector,

with the disparity jumping to 21% this year, from 13% in

2015; a trend that we will continue to monitor.

Women fare slightly better in the Public Sector, especially at

Tactical and Operational levels where salaries are by and

large equal. This year, we have also seen women's salaries

at Tactical level in the Private Sector overtaking men's

salaries. Increasing equality at entry level may be a sign of a

changing pattern, which we will continue to monitor and

hopefully see being reflected at increasingly senior levels –

particularly in light of the widening pay gap we have seen at

the highest level.

£84.5k

£69.8k

AVERAGE

GENDER

SALARY GAP

Private Sector

Advanced

Professional

UK average salaries by gender and sector

Male v female average

salary difference

Advanced Professional

Private Sector

69,808

84,529

+£14.7k

21%

Public Sector

58,591

64,645

+£6.1k

10%

Professional

Private Sector

51,268

57,239

+£6k

12%

Public Sector

43,418

48,163

+£4.7k

11%

Managerial

Private Sector

43,300

39,908

+£3.4k

8%

Public Sector

35,572

43,376

+£7.8k

22%

Operational

Private Sector

34,825

30,900

+£3.9k

13%

Public Sector

28,354

28,232

+£0.1k

0.4%

Tactical

Private Sector

22,690

23,386

-£0.7k

-3%

Public Sector

23,652

22,823

+£0.8k

4%

GBP 000s 0 10 20 30 40 50 60 70 80 90 100

15


Bonuses

by seniority

Along with higher salaries, those in Advanced Professional roles also earn

higher average bonuses, with Chief Procurement Officers receiving 33% of their

annual salary as a bonus, Procurement Directors 19% and Operations Directors

24%. These three roles are also among the most likely to have received a bonus

in the past 12 months, along with Head of Sourcing and Sourcing Manager.

76% of Procurement Directors received a bonus compared to 68% last year.

There is also an increase in the number of Procurement Directors being eligible

to receive a bonus and in the amount of bonus they receive (from 13.7% in

2015 to 19% in 2016).

76%

12%

12%

19%

AVERAGE BONUSES

Procurement Directors

Received a bonus

Eligible but didn’t

receive a bonus

Not eligible to

receive a bonus

Breakdown of bonuses received by seniority

Average bonus as % of salary

Tactical Operational Managerial Professional Advanced Professional

Chief Procurement Officer

65% 9% 26% 33%

Procurement Director

Operations Director

76%

73%

12%

13%

12%

13%

19%

24%

Supply Chain Director

47% 13% 40% 13%

Commercial Director

60% 30% 10% 13%

Head of Operations

39% 22% 39% 15%

Head of Sourcing

50% 25% 25% 22%

Head of Procurement

72% 17% 11% 10%

Strategic Procurement Manager

50% 10% 40% 12%

Senior Category Manager

Supply Chain Manager

Operations Manager

53%

52%

48%

15%

12%

22%

32%

36%

30%

11%

9%

11%

Commercial Manager

40% 18% 42% 8%

Senior Buyer

Category Manager

Sourcing Manager

40%

41%

42% 4%

12%

12%

48%

47%

54%

7%

8%

9%

Procurement/Purchasing Manager

67% 17% 17% 10%

Contracts Manager --- 38% 11% 50% 8%

Logistics Manager

28% 9% 64% 10%

Supply Chain Executive

47% 13% 40% 9%

Procurement Analyst

25% 75% 22%

Buyer

34% 16% 50% 8%

Procurement/Purchasing Officer

19% 7% 73% 5%

Procurement Executive

Procurement Specialist

31% 13%

38% 4%

56%

58%

15%

8%

Contracts Officer

8% 12% 80% 11%

Supply Chain Analyst

Logistics Analyst

44% 6% 50%

100%

4%


Category Officer

7% 13% 80% 8%

Supply Chain Planner

45% 20% 35% 8%

Administrative Assistant

17% 83% 3%

Purchasing Assistant

26% 7% 67% 6%

Contracts Administrator

43% 43% 14% 7%

Stock Controller

26% 11% 63% 5%

Inventory Planner

45% 18% 36% 8%

Assistant Buyer

28% 15% 58% 7%

Assistant Procurement/Contracts Officer 7% 15% 78% 3%

www.CIPS.org/salarysurvey

0

% 10 20 30 40 50 60 70 80 90 100


Bonuses

by sector and industry

Those working in the Private Sector are more

likely to be eligible for a bonus. Over half of

Private Sector respondents received one in

the last 12 months, compared to just 17% of

workers within the Public Sector. Average

bonuses in the Private Sector are also higher

at 11% of salary, compared to 6% in the

Public Sector.

Professionals working in Marketing,

Advertising and PR, Banking, Finance and

Insurance, and Pharmaceuticals and Life

Sciences were the most likely to have received

a bonus. These bonuses were amongst the

highest, but they were surpassed and

equalled by a number of other industries such

as Telecoms, Property, Professional and

Business Services and Healthcare.

Private

Sector

Public

Sector

Charity/Not

For Profit

51%

ON AVERAGE RECEIVED A BONUS

Private Sector

51%

FCIPS

(on average overall)

MORE ELIGIBLE TO

RECEIVE A BONUS

BONUS RECEIVED IS

HIGHER THAN AVERAGE

v 17% v 20%

15% v 9% v 7%

34% v 75% v 73%

62%

received

a bonus

Received a bonus

Eligible but didn’t

receive a bonus

Not eligible to

receive a bonus

21%

of their

salary

Breakdown of bonuses received by sector and industry

Average bonus as % of salary

Arts, Entertainment and Recreation 47% 18% 35%

Banking, Finance and Insurance

Central Government

Construction

Defence

Education

Energy, Water and Mining

Healthcare

Hotels and Catering

IT

Local Council

Manufacturing and Engineering

Marketing/Advertising/PR

NHS

Pharmaceuticals and Life Sciences

Professional and Business Services

Property

Retail and Wholesale

Telecoms

Transport and Storage

3%

5%

70% 5%

25%

22% 15% 62%

36% 19% 45%

39% 18% 44%

97%

65% 10% 24%

49% 30% 21%

56% 7% 37%

51% 8% 41%

94%

44% 16% 41%

89% 11%

10% 3%

87%

70% 5%

25%

49% 30% 21%

55% 45%

49% 15% 36%

58% 23% 19%

48% 14% 39%

14%

14%

3%

9%

6%

6%

10%

15%

12%

12%

2%

11%

8%

11%

14%

15%

17%

9%

17%

9%

% 0 10 20 30 40 50 60 70 80 90 100

17


Bonuses

by gender and region

12%

Although more men than women received a

bonus, the difference was small, and the

actual size of the bonus was equal at 12%.

However, there is gender discrepancy in

eligibility to be paid a bonus.

BONUS AS AVERAGE % OF SALARY,

received by men and women

77%

74%

77% v 74%

More men than women

received a bonus

56% v 46%

More men than women

eligible to receive a bonus

Breakdown of bonuses received by region

Average bonus as % of salary

Eligible to

receive a bonus

London

South East

47%

45%

56%

64%

13.2%

10.9%

Received

a bonus

South West

West Midlands

32%

40%

47%

55%

8.0%

9.3%

East Midlands

29%

44%

9.5%

East of England

41%

52%

9.0%

40%

51%

North East 9.1%

North West

48%

56%

9.8%

Yorkshire and Humber

35%

43%

10.1%

Northern Ireland

38%

46%

9.7%

Scotland

33%

45%

8.8%

Wales

20%

28%

8.4%

% 0 10 20 30 40 50 60 70 80 90 100

www.CIPS.org/salarysurvey


Benefits

by sector

The top benefits received are pension

contributions, flexible working, life

assurance/death in service benefits, private

medical insurance, professional body

membership fee, and car parking. For all

three sectors, pension contributions are by

far the most common benefit, but this may

be due to the transition to mandatory

pension contributions. The Public Sector

and Charity/Not For Profit prioritise flexible

working, and professional body

membership fee.

Flexible

working

IS PRIORITISED

Public and Charity/Not

For Profit Sectors

Top six benefits by sector

100

90

80

70

60

50

40

30

20

10

0%

100

100

90

90

80

80

73

70

71

70 74

60

60

50

64

50

50 52

49

42

40

40

37 37 30

37

30

37 37

30 30

20

20

38

10

10

18

11

0%

0%

Private Sector

Public Sector

Charity/Not For Profit

Key to benefits

Pension contributions

Car parking

Private medical insurance

Life assurance/death

in service benefits

Flexible working

Professional body

membership fee

19


Benefits

by seniority

By far the most likely benefit to be received at every

job level is pension contributions, but this is as a result

of legislation coming into force that makes this

mandatory for all employers in the UK.

The likelihood of receiving life assurance/death in

service benefits, private medical insurance and a car

allowance increases with seniority, with those in more

junior roles more likely to receive support for study or

career development, as would be expected.

Car

allowance

UNIqUE

to senior levels

Top six benefits by seniority

100

100

100

80

60

40

20

79

80

60

58 56 49 46 45 40

20

78

44 51

36 40 51

80

60

40

20

74

36 43 45 41 39

0%

Advanced

Professional

0%

Professional

0%

Managerial

100

100

80

80

60

40

20

0%

68

60

47 50 40

33 35 38

20

0%

Operational

67

53

34

38

42

21

Tactical

Key to benefits

Pension contributions

Private medical insurance

Life assurance/death

in service benefits

Car parking

Car allowance/company car

Support for study/

career development

Flexible working

Professional body

membership fee

www.CIPS.org/salarysurvey


Section 2

Procurement

as a career

This section examines procurement as a

career from both employers' and

employees' perspectives. This includes

addressing issues around finding and

attracting talent, and a breakdown of

when and why individuals choose to move

employers, by age and gender.

From the employee point of view we are seeing 70% of

respondents wanting to move job within 2 years, and 50% of

those are already thinking about leaving in 12 months. On

the employer side we have identified challenges around

offering the higher salaries candidates are expecting (related

to increased market confidence and the skills shortage) and

the cost of bringing in new people.

all of this places growing importance on how employers

attract, retain and develop talent, which increasingly means

differentiating themselves by offering the benefits

employees really want, not the ones they think they want.

This creates a 'win/win' situation: employees enjoy the

career progression and job fulfillment that they are

increasingly seeking, while employers avoid the cost of

recruiting and embedding new people, avoid loss of

knowledge, maintain productivity and build a pipeline for the

future of procurement.

“As confidence in the UK has begun to return and

careful growth is being considered, employers are

reviewing where to invest internally to guarantee their

organisations’ future.

“The procurement function was protected by many

organisations through the recession, and with optimism

growing, the strategic advantage of investing in

procurement is not being missed by many business

leaders. We have seen a renewed appetite to undertake

transformational projects in the commercial sector,

whilst the Comprehensive Spending Review (CSR) in the

Public Sector has seen leaders review how to streamline

operations without cutting front-line services. In both

cases, procurement professionals are rapidly proving

their worth, resulting in an increase in both the size of

teams and expectation placed upon them.

“We have seen some of the largest percentage increases

in pay come at the most senior and strategic end of the

profession, as the broad value of the profession is

realised. Organisations have identified the importance

of retaining the best talent in their key strategic roles, as

well as at entry level.”

For 2016, we added an additional element to our survey to

find out how our respondents came to be working within the

procurement profession. The results identified that just over

half (52%) had made a conscious decision to work in this

area. The majority of those who didn't make a conscious

decision to work in the profession (69%) moved into

procurement from another department. This highlights

another opportunity for recruiting employers which is to

seek soft skills from other professions and then train on

tactical skills (see Section 3 for more information on skills.)

Nicky TaberNer

Director

Hays Procurement & Supply Chain


Employers’ perspective

by sector

64%

Almost two-thirds of hiring managers expect to hire new

procurement staff in the next 12 months, up 10% from last

year. This increasing demand for procurement staff is

creating a shortage of skills and driving salaries upwards,

as identified in Section 1 of this report and in line with

wider trends in the UK recruitment market. The top

industries looking to recruit are Defence (83%), NHS (81%)

and Banking, Finance and Insurance (80%), but in every

sector over 40% of employers expect to recruit.

MaNaGerS

Expecting to hire in the next 12 months

Average across all sectors

67%

65%

Private Sector

Public Sector

60%

Charity/Not For Profit

Top 5 current recruiting sectors

83%

DEFENCE

81%

NHS

All other sectors’ expectation to recruit

80%

BANKING,

FINANCE AND

INSURANCE

78%

CENTRAL

GOVERNMENT

1 2 3 4 5

75%

PROFESSIONAL

BUSINESS

SERVICES

Healthcare

Construction

Telecoms

Retail and Wholesale

Local Council

Manufacturing and Engineering

Marketing, Advertising and PR

Transport and Storage

Pharmaceuticals and Life Sciences

Education

Hotels and Catering

Energy, Water and Mining

IT

Arts, Entertainment and Recreation

Property

64%

63%

62%

60%

57%

56%

54%

54%

52%

46%

44%

40%

73%

71%

74%

% 0 10 20 30 40 50 60 70 80 90 100

www.ciPS.org/salarysurvey


Employers’ perspective

finding talent

74%

74% of our survey respondents said that

when recruiting they had experienced

challenges in finding the right staff over the

previous 12 months. As in 2015, lack of

sector skills and experience continues to be a

concern with 35% stating it as an issue,

however budget restraints and candidate

salary expectations (which have increased as

a result of greater candidate confidence, and

a growing skills shortage) are now the biggest

concerns. The least cited challenge was

competition from other employers, at 16%.

according to Hays, in 2016 there has been

specific growth in the number of buyer, senior

buyer and procurement manager roles and

demand is outstripping supply: “in response to

this competitive environment, employers have

reviewed and improved salaries and benefits

packages as they attempt to both retain their

current staff and attract new employees. We

have also seen significantly increased

investment in training and development. The

opportunity to work towards MciPS status is

an ever more popular development and

retention strategy for many organisations.”

FaceD cHaLLeNGeS iN FiNDiNG

THe riGHT TaLeNT

in the previous 12 months

Competition has also impacted on recruitment

strategy. We now see employers expanding job

specifications and casting an eye to future potential as

much as current capability. Employers are using learning

and development programmes to support hiring tactics

aimed at less proven talent. Adopting this approach is

enabling many companies to fill long-term vacancies.

For employees the outlook remains very positive for

2016 and beyond. Employers need to remain aware

and open to changing employee demands. For

example, flexibility of employment, such as

homeworking, is an increasingly valued proposition.

Those employers who can embrace change and

deploy new hiring strategies will have the edge in

what will remain a highly competitive market.

NICKy TABERNER, DIRECTOR,

HAyS PROCUREMENT & SUPPLy CHAIN

Challenges in recruiting the right talent

Budget restraints

51%

Candidate salary expectations

41%

Lack of sector skills and experience

35%

Organisational fit

Internal processes/HR

Lack of technical skills

Lack of soft skills

Location

Competition from other employers

26%

22%

18%

17%

17%

16%

% 0 10 20 30 40 50 60 70 80 90 100

23


Employers’ perspective

skills in demand/finding talent

Skills

At all levels apart from Advanced

Professional, communication and soft

skills were in the top 6 most sought

after, with negotiation and skills

connected with supplier management

also featuring strongly. At Advanced

Professional level, skills such as market

analysis, sourcing and influencing

become more critical reflecting the

influential nature of roles at this level

of seniority.

We also identified that the

responsibility for recruiting talent often

lies with procurement rather than Hr,

with 39% of our survey respondents

stating that they were responsible for

recruiting and training procurement

staff. This percentage increases with

seniority, as one would expect.

cOMMuNicaTiON aND SOFT SkiLLS

in demand at all levels

Negotiation, and skills connected with

supplier management feature strongly.

Hays has seen healthy growth in placements in the last

12 months, particularly in areas such as manufacturing and direct

procurement. However, the shortage of skills is a challenge for many.

There is a strong desire for organisations to secure the best

procurement professionals and many would therefore rather not offer

than appoint someone who doesn’t quite meet their criteria. However,

as organisations increase their expectations of procurement as a

function, many procurement teams are re-evaluating their need to

upskill their staff to meet their business objectives, hiring candidates

with potential and developing them to fit their requirements. Where

this has not been possible or the skill sets have been very niche we

have seen a move towards using interims.

NICKy TABERNER, DIRECTOR, HAyS PROCUREMENT & SUPPLy CHAIN

Top 6 skills in demand by job level

100

100

100

100

100

80

60

40

20

0%

91 91

82

91

82 82

Advanced

Professional

80

60

40

20

0%

71 69 71 75 83 75

Professional

80

60

40

20

0%

79 71 73 65 67 69

Managerial

80

60

40

20

0%

55 52

57 57 58

40

Operational

80

60

40

20

0%

46

20 28 25 28 20

Tactical

Key to skills

Market Analysis

Supplier Evaluation

and Appraisal

Communication/Soft Skills

Sourcing

Tendering

Negotiation

Leadership

Influencing

Contract Management

Supplier Relationship/

Management

Purchase to Pay

www.ciPS.org/salarysurvey


Employees’ perspective

when to move job

Around half of all survey respondents

said that they were looking to move

employer within the next year, which is

higher than last year's figure of one in

three. Again, this may be a sign of

continued confidence in the economy.

72% of respondents want to progress

their careers and move to a more

senior position within the next two

years, with the percentage of males

(35%) versus females (31%) wanting to

move being fairly even compared to

last year when significantly more

females stated a desire to move. 50%

of respondents wanted to move to a

new employer which leaves 22%

wanting to progress within their

current organisation, making it

important for employers to offer

structured career paths to retain talent

and carefully manage the talent

pipeline within the team structure.

Despite enjoying the biggest salaries

(see page 9), the largest proportion of

those wanting to move to a new

employer came from the charity/Not

For Profit at 47% (up from 25% in

2015), which could be as a result of

only 59% of professionals feeling

valued in this sector (see Section 3).

72%

WaNT TO MOVe TO a

MOre SeNiOr rOLe

in the next 2 years

50%

want to move to a

new employer in

the next two years

% respondents seeking to move employer

in the next 2 years by industry

NHS

Property

Arts, Entertainment and Recreation

Telecoms

Professional and Business Services

Banking, Finance and Insurance

Marketing, Advertising and PR

Retail and Wholesale

Energy, Water & Mining

Local Council

Construction

Education

Transport and Storage

IT

Central Government

Manufacturing and Engineering

Hotels and Catering

Pharmaceuticals and Life Sciences

Agriculture, Forestry and Fishing

Defence

Healthcare

64%

64%

59%

58%

58%

56%

56%

55%

55%

50%

50%

50%

49%

49%

48%

48%

44%

44%

44%

38%

36%

% 0 10 20 30 40 50 60 70 80 90 100

25


Employees’ perspective

reasons to move job

As expected, salary is the biggest driver to move employer. However,

company reputation, commitment to training and development and work

content, are also deemed as important factors, and are all more important

reasons (cited by 97% of respondents) than the opportunity to earn a bonus.

• 100% of respondents stated that salary was very/fairly important when

considering a new role, and of these 70% stated it as the single most

important factor. This reflects the challenges identified by employers in

attracting the right people; candidate salary expectations are an issue

• The next four most important reasons after salary, as shown in the chart

below, show the increasing importance placed on the content of the work

and the support and opportunity to progress within a reputable company.

This presents a real chance for employers to differentiate themselves and

attract talent in ways other than salary.

70%

STaTeD SaLary aS SiNGLe

MOST iMPOrTaNT FacTOr

when considering

a new job role

% very or fairly important factors

% very important factors

Most important factors when considering a new job

Salary

70%

100%

Company reputation

Company is committed to staff training

and development

58%

57%

97%

97%

The content of the work

58%

97%

Career progression opportunities

65%

95%

Reassurance about job security

Procurement is highly valued within

the company

Location within the country where I am

currently based

Flexible working policies beyond

statutory requirements

38%

52%

51%

67%

94%

93%

89%

87%

Benefits offered beyond salary and bonus

37%

87%

Company is well known for ethical practices

34%

86%

Opportunity to earn a bonus

Opportunity to move to a role

in a different industry sector

Opportunity to move to a

role in a different country

8%

8%

28%

29%

43%

76%

% 0 10 20 30 40 50 60 70 80 90 100

www.ciPS.org/salarysurvey


Employees’ perspective

reasons not to move job

35%

The desire to retain current work-life balance

remains the top reason for not changing role

(35%) and is a compelling reason for

employers to offer flexible working options.

Lack of opportunity to move jobs was also

cited as a reason not to move, which again

shows the importance of being able to

progress within an employee's current

organisation.

WaNT TO reTaiN THe WOrk-LiFe baLaNce

THey HaVe NOW

19% of respondents were also seeking

additional training and development to

progress with their current employers,

emphasising the importance for employers to

build clear career progression strategies into

workforce and succession planning.

WORK

LIFE

Main reasons to stay with current employer

Want to retain the work-life balance I have now

Enjoy the job I have now

Already have the most senior role I want to do

Need additional training and development to step up to a new role

Lack of opportunity

Recently promoted

Planning to retire

Currently focussed on looking after family

Prefer to retain a more generalist role, which includes procurement

Looking to reduce my working hours

Looking to change career / move out of procurement

11%

9%

7%

6%

6%

14%

16%

19%

26%

30%

35%

% 0 5 10 15 20 25 30 35

27


Employees’ perspective

moving job... important factors by age

As you would expect, when looking for a new job different

factors become more or less important depending on age.

For those under 35, who are at an earlier stage of their

career, salary and career progression are the key factors.

but for those over 35, the content of the work, reputation

of the company and the value placed on the role of

procurement by the company all become more important.

This year we have also seen the desire to remain within the

current location in the country become the top factor for

36-55 year olds perhaps reflecting factors associated with

this life stage such as family commitments. This year, as in

2015, we also found that the desire to move job decreases

with age.

What is certainly clear is that if organisations wish to retain

and develop existing talent employers must offer the

opportunities and benefits that employees are seeking.

Under 35

Current

location

iN cOuNTry MOST iMPOrTaNT

JOb FacTOr iN

36-55 year olds

% not wanting to move job, by age

16%

36–45

15%

56+ years

29%

Most important job factors by age, in order of importance

1 – most important

Age group

under 30 years

30-35 years 36-45 years 46-55 years 56 years +

Career progression

1

1

3

Salary

2

2 2

3

Training and development

3

Location

Content of work

Whether procurement is

valued in the organisation

Company reputation

3 1 1 3

2

1

2

www.ciPS.org/salarysurvey


Employees’ perspective

moving job... by gender

Salary

Virtually every job factor that we explored in

our survey was found to be more important

to women than to men, with the exception

of the opportunity to earn a bonus which

was valued by 30% of men compared to 25%

of women.

69%

71%

MOST iMPOrTaNT

FacTOr by GeNDer

when moving jobs

Importance of different job factors by gender

Salary

69%

71%

Location within the country

where I am currently based

65%

70%

Career progression opportunities

60%

72%

The content of work

Company reputation

Company is committed to staff

training and development

Procurement is highly valued within

the company

54%

53%

50%

49%

54%

64%

65%

67%

Reassurance about job security

48%

58%

Benefits offered beyond salary and bonus

Flexible working policies beyond

statutory requirements

Opportunity to earn a bonus

24%

36%

34%

30%

38%

44%

Company is well known for ethical practices

29%

41%

Opportunity to move to a

role in a different country

Opportunity to move to a role

in a different industry sector

8%

7%

7%

9%

% 0 10 20 30 40 50 60 70 80 90 100

29


Employees’ perspective

moving job... by industry

A greater proportion of men would consider a move to Manufacturing and

Engineering, at 50% (only slightly down from 52% last year). We have seen an

increase in the number of women who regard it as a desirable industry, from

34% to 44%, perhaps reflecting broader trends which are seeing more women

entering Engineering professions. Professional and Business Services remains

the second highest performer, with 40% of men and 42% of women prepared

to consider it.

Manufacturing

and Engineering

DeSirabLe iNDuSTry

to move to by men

and women

all other industries were fairly evenly matched in terms of gender preferences,

with some such as banking, Finance and insurance, Hotels and catering, Marketing

advertising and Pr, and retail and Wholesale slightly more appealing to women.

We also found that men were more likely to be attracted to jobs in the Private

Sector and women to the Public Sector, perhaps related to the greater importance

women place on flexible working and work-life balance; a compelling reason for

Public Sector employers to make their talent attraction strategies more visible and

appealing in order to capitalise on this advantage over the Private Sector.

50%

44%

Desirable sectors by gender

Arts, Entertainment and Recreation

Banking, Finance and Insurance

Construction

Defence

Energy, Water and Mining

Healthcare

Hotels and Catering

IT

Manufacturing and Engineering

Marketing, Advertising and PR

Pharmaceuticals and Life Sciences

Professional and Business Services

Property

Retail and Wholesale

Telecoms

Transport and Storage

Private Sector

Public Sector

Charity/Not For Profit

4%

5%

17%

16%

17%

17%

16%

15%

22%

23%

25%

23%

26%

24%

24%

29%

30%

28%

28%

30%

28%

44%

22%

28%

28%

31%

30%

32%

31%

38%

36%

35%

34%

40%

42%

50%

60%

68%

www.ciPS.org/salarysurvey

% 0 10 20 30 40 50 60 70 80 90 100


Attract, develop, retain

Jaguar Land Rover procurement

Brian Davy has been a purchasing professional in the UK car

industry for over 30 years. He is currently the Director of Non-

Production Purchasing at Jaguar Land Rover. He is a Fellow of CIPS

and a significant voice on the acquisition, development and

retention of procurement professionals.

“Whilst our approach to attracting new professionals hasn’t

dramatically changed in the last year, we are still very proactive in

our pursuit of new talent. Most roles are publicised on our website

and networks, and we often rely on recruiters like Hays to fill more

senior roles.

it’s important for us to recognise and cultivate emerging talent, so

we maintain close relationships with a number of universities and

attend several career days a year at various educational institutions

to help promote procurement as a future career for young people.

candidates with team leading experience applying for managerial

roles within procurement are looking for very competitive salaries.

However, this is not seen to quite the same degree for nonmanagerial

staff.

recently named by bloomberg as “best uk employer 2016”, Jaguar

Land rover invests significantly in recruiting and developing the

people that will help ensure our continued success. competitive

salaries are necessary to attract the best candidate, but there are

other incentives we consider. We don’t offer any ‘golden hellos’, but

manager level staff and above receive a fully serviced company car

on lease. Many candidates also seek us out due to our high standing

and established reputation. We often feature in international media

and we find that new employees are drawn to us, looking to be

associated with our prestigious brands.

in terms of flexibility and alternative working, we are probably more

conventional than some organisations but we aim to be recognised

as having good flexible arrangements. Whilst we appreciate the

needs of the individual and the importance of a work/life balance,

we view flexibility in terms of working hours and location as

something to be discussed between manager and staff member. We

are a business with defined places of work, plus movement between

them, and with multi-functional teamwork at its heart. So, a flexible

approach treating each case on its merits, works best for Jaguar

Land rover.

Jaguar Land rover has a major commitment to learning and

development and our employees thrive on this. in 2015 we

announced our Jaguar Land rover academy, which offers “lifelong

learning” for people at all stages of their working lives with the

company, whether they are new recruits or more experienced

employees seeking to move to the next level in the organisation.

in purchasing, Jaguar Land rover has a substantial and ongoing

relationship with ciPS, and each year, around 20 of our procurement

professionals embark on a course of study, supported by the

company, leading to qualification as MciPS. For more experienced

practitioners, we have an intensive six-month course based around

real-life work projects. This course cultivates skills in analysis and

evaluation, problem-solving, stakeholder management, and

teamworking amongst others but overall leads us to upskilling the

whole function in areas where individuals can really make a

difference.

Skills development in our procurement professionals is vital for us.

We value good communicators with excellent commercial acumen

along with influencing and relationship building skills. These

attributes are needed in our professional staff in order for them to

be able to represent the company in its business dealings with

suppliers, as well as being effective JLr team contributors. We also

need qualified, confident, resourceful professionals able to stand on

their own two feet and make considered decisions for the good of

the business.

We are on a journey of huge transition from an established uk

producer and exporter, to one that also internationally manufactures

and develops vehicles and technology. Having an international

perspective is, therefore, vital.

Manufacturing has not been a career of aspiration for young people

in the uk over recent decades, and while that trend seems to be

reversing, for now there is still a technical skills shortage.

engineering needs to work on its image and we at Jaguar Land rover

are committed to encouraging more talented young people to aspire

to careers in engineering and manufacturing. indeed, over the past

five years we have recruited some 2,500 people to our apprentice

and graduate programmes. We also engage with more than 300,000

young people every year through a range of education initiatives to

inspire the next generation of engineers. as more graduates with

technical expertise are produced, the technical roles we have in

procurement will be easier to recruit for.“

Jaguar Land rover is an international enterprise which relies on its

procurement professionals to keep quality and efficiency high

matched with keeping costs low. its on-going arrangement with

ciPS, and the company’s dedication to developing the skills and

competencies of its procurement professionals makes Jaguar Land

rover a highly desirable company to work for. it ensures that Jaguar

Land rover staff are high grade and meet globally competitive

standards.

briaN DaVy FciPS

Director, Non-Production Purchasing

31


Reducing risk

BT Group

CEO Gavin Patterson has an ambition for BT to be a learning

organisation. In support of this, an internal academy has been

introduced that reaches across the entire company and is organised

into four faculties: Customer, Business, Technical and Leadership.

Within each of the faculties are 29 professions, including

procurement, and each of the professions has its own dedicated

online hub providing access to all relevant learning content,

enabling individuals to interact, share and collaborate with others

in their profession and other professions.

"To reduce risk to our business, every person coming into a

procurement role now has to go through bT's own internal buyer

accreditation before they can sign a contract," comments Marco

Salzedo, VP Group Procurement. Designed to ensure that employees

understand the governance, policies and risk management that are

niche to bT, this accreditation is comprised of two parts: online, faceto-face

and on-the-job training; and a formal assessment which

involves presenting and being questioned on a case study.

Once individuals have their buyer accreditation, they can progress

through the learning content available against a wide range of soft

and technical skills, supported by regular masterclasses. all of the

learning is graded into progressing intensity levels to ensure

challenging and rewarding career paths, and to support the

organisation's talent pipeline, succession planning and appraisal

process.

For high performers, bT also offers external accreditation, as Hayley

Pescod, Senior Procurement Development Manager explains: "We've

developed a talent pool that we call the 'network of potential future

leaders'. For our procurement people, this means sponsoring

potential future leaders, including up and coming rising stars, to

study for ciPS external accreditation. This acts as an incentive for our

people to work hard to become part of the pool and to stay with the

business to progress their careers. We're finding that our people are

aspiring to the talent pool and performing better as a result."

ciPS has also supported those bT procurement people who are

already MciPS in how to mentor those new to the ciPS learning and

accreditation process.

currently around 15% of bT's procurement profession is sponsored

through ciPS qualifications and the Management entry route to

MciPS, and the organisation expects this figure to grow year on year,

developing the leaders of the future. The organisation's procurement

community can also be inspired by the fact that four of bT's Vice

Presidents are FciPS, and the chief Procurement Officer is also a ciPS

Fellow; the most Fellows in a single organisation.

GaViN PaTTerSON

CEO


Section 3

Perceptions of

procurement

Here we explore how procurement is viewed in

terms of the importance of certain skills by

sector, the general regard for what the role of

procurement can bring to organisations and the

key issues for the profession.

A key theme running through all our report findings is the need for

employers to be more flexible in the way they recruit and more

conscious that the benefits they offer to attract talent are actually

those that are valued by candidates. Employers are faced with, on the

one hand, a procurement skills shortage, and on the other an

increased need for procurement people as the profession becomes

more widely valued. This means there is a real opportunity to recruit

from outside the profession for those all-important soft and

transferable skills. Individuals with these skills from other disciplines

can then be developed though procurement-specific training.

The trend of improving the perception of procurement continues this

year with 66% of respondents highlighting an improvement over the

previous 12 months. 71% of the procurement professionals we

surveyed state that procurement is very much valued within their

organisation and 50% highlight that the procurement function is

engaged at the start of projects. All of this suggests that the demand

for procurement skills will continue and grow making developing that

talent pipeline ever-more crucial for organisations.

The exception to this generally positive picture is in Charity/Not For

Profit, where only 59% of respondents felt valued compared to 72% in

the Private and Public Sector. This may be contributing to the high

percentage of respondents who are seeking to move job in the next

12 months and is a trend that we will continue to monitor.


Key skills

by sector

Communication

moST ImPorTANT FACTor

across all sectors

The majority of our respondents viewed communication

as critical to doing their jobs well. It was regarded as

very important by 80% in the Private Sector, 77% Public

Sector and 82% Charity/Not For Profit.

As for last year, the most notable differences between the

Private and Public Sectors include:

• Private Sector professionals place more importance on

negotiation (78% v 61%) and sourcing (73% v 60%). In

the Private Sector there is an ever-increasing desire to

protect profit, which makes negotiating better deals

on new and existing contracts as well as sourcing

better value for money products and services to

deliver competitive advantage in the market critical.

• Public Sector professionals place more importance on

tendering (68% v 52%) and contract management

(63% v 53%). In the Public Sector as spending cuts

have been lifted there are more contracts being let so

the need for better tendering skills and management

of those contracts once awarded is key.

80%

Private Sector

Public Sector

Charity/Not For Profit

82%

77%

Key skills considered important

Communication/Soft Skills

80%

77%

82%

Negotiation

61%

67%

78%

Supplier Relationship/Management

77%

71%

72%

Influencing

74%

70%

81%

Sourcing

60%

58%

73%

64%

Supplier Evaluation and Appraisal 64%

71%

% 0 10 20 30 40 50 60 70 80 90 100

www.CIPS.org/salarysurvey


Key skills considered important (continued)

54%

Raising the Profile of Procurement 56%

71%

53%

Leadership 54%

57%

53%

Contract Management 63%

65%

Tendering

52%

68%

74%

Change Management

46%

44%

52%

44%

Market Analysis 45%

40%

44%

Data Analysis/Business Intelligence 41%

44%

43%

Financial Analysis and Reporting 40%

39%

42%

Project/Programme Management 44%

48%

27%

Specification Development 48%

41%

27%

In Depth Specific Category Experience 23%

16%

25%

Purchase to Pay 25%

22%

Outsourcing/Offshoring and Insourcing

23%

15%

19%

Commissioning

7%

8%

17%

% 0 10 20 30 40 50 60 70 80 90 100

35


Urgent need for soft skills training

in the procurement sector

JCA Global

JCA Global, a leading supplier of corporate emotional

intelligence solutions, takes a look at new findings which say

that the procurement industry would benefit significantly

from developing its soft skills in the workplace.

“80% of procurement leaders believe soft skills training would

help them perform better and have a major impact on their

performance at work.”

The Chartered Institute of Procurement and Supply (CIPS) has

in the past identified links between poor relationships with

suppliers and a higher risk of supply chain disasters. As a

result, it is now working with members to provide support in

terms of improving engagement, performance and well-being

amongst their workforces, with the aim of creating better

relationships with suppliers and reducing the risk of

disruptions.

As part of this work, JCA Global has partnered with CIPS to

undertake a study which looks at the impact of ‘soft skills’ –

communication, relationship management, negotiation,

influencing and emotional intelligence skills – in the workplace

and whether employees think they are well-equipped to deal

with the myriad of challenges that come their way every day.

The joint survey found that the majority (80%) of respondents

believe that working on and developing their soft skills would

help improve their performance at work. The challenge

however is that more than two in five (42.2%) of respondents

have ‘never had any soft skills training’ and a further third

(35.6%) said they had but it was ‘some time ago.’ Turning their

attention to the benefits that emotional intelligence (EI) could

bring to their organisation, almost two thirds (64.4%) felt

understanding EI would help effective negotiation and yet only

one in eight (13%) of their organisations had adopted EI within

internal training. Nearly two thirds (64.4%) of the respondents

felt their knowledge of EI was basic or none, clearly indicating

an industry-wide desire to learn more.

The output of this survey is very interesting. The procurement

sector is clearly calling out for more soft skills development and

it’s great to see that the majority of respondents feel that a

greater understanding of emotional intelligence would

significantly help them. JCA Global is developing these skills

right now within two of the four biggest employers in the

world as well as a range of FTSE 250 companies and the Public

Sector. JCA Global is also looking forward to working closely

with CIPS over the coming months to see how we can help its

members learn more about these crucial soft skills.

David Noble, Group CEo, CIPS commented: “We’ve always

been aware of the importance of soft skills and the huge

impact emotional intelligence can have in communication and

negotiation. Indeed, CIPS as an organisation has invested

hugely in this area internally. It’s clear we now need to help

members get greater access to these skills and we’re excited to

work with JCA to help all our members with this. The subject of

emotional intelligence and soft skills development will be at

the centre of many of our upcoming presentations; it’s clearly a

critically important influence in the development of best

practice.”

The survey was undertaken between September 2015 and

February 2016 and 239 senior procurement professionals from

across the globe responded.

rICh Cook

Director

JCA Global

www.CIPS.org/salarysurvey


Importance of key skills

by job level

Communication, supplier relationship

management and negotiation are seen as

important at every job level within the

profession. However, the perceived

importance of influencing, leadership, raising

the profile of procurement and change

management skills increases with seniority.

This reflects the shift in responsibilities and

role as professionals move up the ranks.

Influencing

ImPorTANCE

INCrEASES

by seniority

The top 5 skills for each job level

100

90

80

70

60

50

0%

94 90

89 89

83 80 83

77

74 70 77 75 74

Advanced

Professional

100

60

50

0%

Professional

100

90

80

70

60

50

0%

100

100

90

90

80

80

80 79 79 75

78

72

70 73 70

71 68

60

67 60

50

50

71 69

52 52 51

0%

0%

Managerial Operational

Tactical

Key to skills

Influencing

Supplier Relationship/Management

Communication/Soft Skills

Negotiation

Leadership

Raising the profile of Procurement

Sourcing

Supplier Evaluation and Appraisal

37


Setting vision, inspiring people

AstraZeneca

Dapo Ajayi, Chief Procurement Officer at FTSE100 listed

pharmaceutical manufacturer AstraZeneca, gives us her

insight into the challenge and experience of a career in

procurement within a multinational organisation.

With a wealth of global experience and a multi-disciplinary

background, the move to head up AstraZeneca’s procurement

function seemed like a natural step for Ajayi. Although she had

never consciously planned out her career with the objective of

assuming the role, she had acquired the skills and knowledge

necessary for the position through years of leadership

positions both in the Uk and abroad.

“I’d had recent experience of working with third parties and I

had the broader leadership credentials in terms of my vision

and strategy, connectivity with the broad business and ability

to inspire people. That, in my view, is a prerequisite for any

senior leadership role.

I hadn’t necessarily thought of procurement but it seemed like

a really exciting opportunity, and a chance to really make a

difference at a time when AstraZeneca was embarking on a

bold new ambition.”

Under Ajayi’s leadership, a strategic vision was set for

procurement, an important component of which was the

creation of a global procurement services team in Warsaw. The

team was created to deliver and continuously improve key

operational elements of the source-to-contract process. Their

function allows the procurement teams partnering with

business stakeholders and suppliers to develop closer relations

with a view to harnessing innovation from partners in the

supply chain.

“We work with so many suppliers externally, and this is a real

opportunity to partner and access new insights and innovation.

We’re looking at how we can energise, excite and develop the

capabilities in procurement, to be able to coordinate the

relationship between the supplier and AstraZeneca.”

As well as setting up the procurement services team in

Warsaw, AstraZeneca is investing heavily in the skills of its

procurement leaders, looking to develop more relationshipbased

skills to allow them to form beneficial, ongoing

partnerships with key stakeholders and suppliers.

“They have to connect really well with the business functions

they’re supporting, and they have to connect with the

suppliers. By the end of 2015, over 100 procurement leaders

were entered into a programme aimed at further developing

those business partnering skills.”

The procurement capability framework developed under her

leadership helps staff identify skill gaps and areas for ongoing

development. Capability uplift through investment in

employees, as well as attraction and retention of talent, are key

aspects of the procurement strategy at AstraZeneca.

Ajayi is keen to stress the importance of mentoring for younger

talent, and to demonstrate to women that it is possible to

balance a successful career with other priorities, she herself

having risen to prominence whilst raising a family.

“Senior leaders, like myself, have a role to play in reinforcing

that we’re just as human as they are,” she says. “Sometimes,

when leaders earlier in their career look at us, they think that

we don’t have to deal with the mundane, but I still have to

make sure the fridge is full.”

Ajayi’s broad business experience allows her a unique insight

on the purpose and future of procurement. Its function has

evolved, and leaders need to develop their relationship and

communications soft skills to engage with stakeholders and

attract and retain the best talent. They must also genuinely

embrace flexible working and ensure that this does not act as a

barrier to career progression. They must actively engage with a

wider range of young professionals, whose cultural diversity

will lend itself to the future of global procurement.

DAPo AJAYI

CPO

AstraZeneca

www.CIPS.org/salarysurvey


How procurement

is viewed

In general, procurement is viewed positively

within organisations across all sectors, with

71% of respondents agreeing that

procurement is valued and 66% stating that

perceptions of procurement have improved

over the last 12 months. however, there is

quite a big difference in respondents’ own

sense of being valued within Charity/Not For

Profit. This may be one reason for the larger

percentage of Charity/Not For Profit

respondents (47%) seeking to move jobs in

the next 12 months.

72%

72%

59%

Private Sector

Public Sector

Charity/Not For Profit

72%

FEEL VALUED

Private and Public Sector

procurement professionals

How procurement is valued

Procurement is very much valued

within my organisation

71%

Directors and heads of other departments

in my organisation understand what

procurement specialists can offer

68%

Perception of procurement has

improved in the last 12 months

66%

Staff in other departments in my

organisation understand what

procurement specialists can offer

52%

Procurement is engaged from the

start of a project

50%

% 0 10 20 30 40 50 60 70 80 90 100

39


Key issues

by sector

Despite the fact that the majority of

respondents feel that procurement is

well-regarded in their organisation, the

single biggest challenge faced across

the sectors was identified as being

early engagement of procurement at

the outset of a project. This was felt

slightly more by professionals in the

Public Sector (57%) and Charity/Not

For Profit (63%) than the Private Sector

(52%).

Being seen as a strategic partner was

also a key challenge, felt most acutely

by those working in Charity/Not For

Profit organisations (66%). The other

challenges in the top 5 by all sectors

were managing costs while maintaining

quality and being recognised within the

organisation for savings made. In

addition, a greater proportion of Public

Sector respondents stated having

difficulties attracting staff, reinforcing

the need for employers to recruit

outside the profession based on soft

skills and to ensure they are enticing

candidates with the most sought after

benefits.

Where the sectors differ is in:

• Ensuring compliance to contracts; a

top 5 challenge in the Public Sector

(44%) and Charity/Not For Profit

(51%) where contracts are closely

governed, but not so important for

the Private Sector (28%)

• managing risk in the supply chain; a

top 5 challenge for Private Sector

(50%) professionals, but of less

importance in the Public Sector

(37%) and Charity/Not For Profit

(42%) where frameworks can

mean risk is often pre-checked

and verified.

>50%

STATED BEING ENGAGED

from the outset of a

project was a major

issue across all sectors

Key issues for procurement by sector

70

60

50

40

30

20

10

0%

52 51 51 50

40

70

60

50

40

30

20

10

0%

57

52 50 49 44

70

60

50

40

66 63

54 51 49

30

20

10

0%

Private

Sector

Public

Sector

Charity/Not

For Profit

Key to issues

Ensuring procurement engagement

at the outset of a project

Being seen as a strategic

partner to the business

Managing costs while

maintaining quality

Managing risk in supply chain

Being recognised within the

organisation for savings made

Ensuring compliance to contracts

www.CIPS.org/salarysurvey


Section 4

Interims

Due to the growing importance of interim

professionals within our procurement

community, we have delved deeper and

gathered information on where and on what

kind of projects they work on and how they

are remunerated.

There is an evident skills shortage across the country in

permanent staff and experienced interims could be the answer.

Interims should not just be seen as 'gap fillers'; they have often

chosen the interim market as their career. Should the skills

shortage worsen amongst the permanent talent pool, interims

may be a solution for employers seeking to bring in people with

leadership skills to head up projects and provide coaching and

mentoring within the team.

There is also an opportunity for procurement professionals to

use interim contracts to gain project experience they may not

be able to get in a non-project-driven permanent procurement

role, increasing their marketability and improving career

prospects. Working as an interim also allows individuals to build

their network across many different sectors and organisations,

which could benefit them further down the line in terms of

future job opportunities.


Interims

by role

32% of interims are most likely to be found

working in change and transformation

projects, with the average length of projects

varying between 3 and 12 months, and with

6 and 12-month contracts by far the most

frequently seen. The reasons for employers to

recruit interims are comparable across the

sectors, although the Private and Public

Sectors are the most likely to recruit interims

as an additional resource (59% and 50%),

while Charity/Not For Profit organisations are

more likely than the other two sectors to

employ interims as cover for maternity leave

and long-term absence.

32%

oF our INTerIm reSPoNdeNTS

work in change and transformation projects

Demand for permanently employed staff has risen sharply

and is likely to continue to do so. However, we also continue to see

a large number of procurement professionals choosing to enjoy a

very satisfying career as an interim. Demand is driven by employers

seeking specific skills to undertake transformational projects, as well as

out of necessity as employers struggle to recruit on a permanent basis

as the demand for candidates continues to remain high.

For many, there is a huge appeal to working as a career interim, the

work, often well remunerated and varied, offers procurement

professionals the opportunity to develop a broad set of skills, and work

in a variety of environments where they can make a difference. With

the desire for flexibility ranking so highly amongst employees, it is of

little surprise that skilled procurement professionals are opting to

engage in a career where they have more control.

NIcky TaberNer, DIrecTOr, HayS PrOcuremeNT & SuPPly cHaIN

reasons to recruit interims, by sector

Private Sector Public Sector charity/Not For Profit

59%

additional resources

50%

additional resources

40%

additional resources

22%

long term absence

19%

long term absence

40%

long term absence

15%

Project basis

19%

Project basis

20%

Project basis

4%

Other

12%

Other

0%

Other

www.CIPS.org/salarysurvey


Interim employment by project

type and length of contract*

50

50

50

50

40

40

40

40

30

30

30

30

20

20

20

20

10

10

10

10

0%

change and

Transformation

projects

0%

end to end

Tender Process

0%

Generalist

Procurement

role/Sickness/

maternity cover

0%

category

management

Implementation

50

40

50

40

50

40

key to skills

up to 1 month

30

30

30

20

20

20

1-3 months

10

10

10

3-6 months

0%

0%

0%

6 months to 1 year

OJeu Tender

Process

Strategic Sourcing

exercise

Greenfield

Procurement

Start up

more than 1 year

reasons to recruit interims, by project type

change and Transformation

32%

end to end Tender Process

Generalist Procurement

category management

OJeu Tender Process

13%

13%

12%

10%

Strategic Sourcing

6%

Greenfield Procurement

4%

P2P/System Implementation 1%

*Assignments undertaken in the last 12 months.

% 0

10 20 30 40 50

43


Interims

where and why

Flexibility

The most common reason to become an

interim is job flexibility (44%). as may be

expected, those working in interim roles

tend to be older, perhaps reflecting the

experience and confidence required to

take on what are often short-term

projects.

Top 4 reasons

mAIN reASoN

to become an interim

• 5% of interims are aged 25-29

• 39% of interims are aged 46-55

The largest proportion of our interim

respondents were based in London. This is

where we would expect the majority of

one-off projects and short-term contracts

to be, as many of the larger organisations’

procurement teams, who would require

extra resource for key projects, are based

in London.

44%

Flexibility

42%

Variety of work/

experience gained

Around 25% of our respondents said that

they would be willing to travel

internationally for a role or assignment,

while 50% said that they would only travel

locally.

39%

Pay

30%

as a result of

redundancy

uk location breakdown

london

38%

South east

15%

South West

11%

West midlands

6%

east midlands

4%

east of england

3%

North east

3%

North West

10%

yorkshire and Humber

4%

Northern Ireland

2%

Scotland

5%

Wales

0%

www.CIPS.org/salarysurvey

% 0

10 20 30 40 50


Interims

day rates

Our survey suggests that salaries for professionals who have been

working as interims for up to 2 years are around £270 per day, rising

with experience (20 years plus) to £557 per day. reflecting general fulltime

employment trends:

• day rates for female interims are lower than for men (£427 per day

compared to £467)

• day rates for full mCIPS members are higher than their non-mCIPS

counterparts (£477 per day compared to £456)

• day rates are much higher in the Private Sector

£629

AVerAGe dAY rATe

change and

Transformational projects

Interim average day rates by sector £467

£427

Private Sector

£535 per day

Public Sector

£372 per day

Interim average day rates by project

change and Transformation

629

P2P/System Implementation

455

category management Implementation

435

Greenfield Procurement Start up

423

Strategic Sourcing exercise

382

OJeu Tender Process

341

end to end Tender Process

340

Generalist Procurement role/Sickness

293

GbP 0 100 200 300 400 500 600 700 800 900 1000

45


enefits of working as an

interim in procurement

Procurement professional Deborah Day has worked in a number of

interim positions over the past four years, her current position

being in central government.

She believes that this model of working has given her invaluable

experience across both Private and Public Sector organisations, in

particular through the diversity of assignments.

She explains: “In the Public Sector the assignments have tended to

be focused on creating and delivering large scale, multi-million

pound efficiency programmes with procurement at its core. my

recent contracts have included a large international element,

travelling to both near and far-flung overseas locations to

demonstrate how a specific efficiency programme can be

implemented anywhere in the world.”

Flexibility as a working parent was another important factor in her

decision to be an interim worker.

“I am a working mum so the flexibility in choosing when to work is

invaluable, particularly during school holidays. I also love the variety

of the roles I’ve undertaken and the insight I’ve gained into how

Britain works – from building a leisure centre for a council, to

introducing change in major airports, through to the fascinating

workings of central government.”

Her roles have given her a comprehensive insight into the industry,

and she believes the way procurement teams work is changing.

“With the increasing focus for organisations to deliver greater

efficiencies from contract management, one major challenge will be

in helping them transform their in-house teams from their

traditional transactional procurement role into becoming a strategic

partner to the business.”

She has also discovered the key universal requirements in her

profession – influencing, communicating and instilling confidence in

clients – which stand her in good stead in her senior roles.

deBorAH dAY

Interim


Section 5

Australia

Recent examples of supply chain

malfunction, with related brand reputation

damages, have contributed to an increased

demand for qualified procurement

professionals. As such, recruiting and

retaining talent remains a key challenge for

organisations.

The gender balance, in a profession historically maledominated,

is shifting towards an equal distribution with a

growing number of females now holding senior procurement

roles.

Moving across industries still seems to represent a difficult step

with both supply and demand very mindful of category

expertise limitations.

a demand for benefits is being pushed from the top,

particularly at a government level, with regards to involvement

and integration of minority groups (indigenous in particular). In

the procurement space, public agencies, now followed by the

private sector, have embedded diversity policies into their

strategies. Consequently, we are now faced with the task of

supporting the development of the supply base.

Mark LaMb

General Manager, Asia Pacific

Chartered Institute of Procurement & Supply


Section 5

Skills in demand

"These findings confirm what we are seeing

on the ground, namely an active recruitment

market where permanent and contract roles

are being created as organisations redefine

their procurement strategy.

"Given activity, candidate levels have reduced. as this survey

shows, three quarters (76%) of those responsible for recruiting

procurement staff faced challenges finding the right talent over

the last 12 months. Demand is perhaps greatest for specialist

Category Managers in organisations that are centralising their

procurement function. Specific end-to-end category management

expertise is valued, as is the ability to manage stakeholders and

suppliers.

"Other areas of demand include Purchasing Officers with specific

software experience, Supply Chain Co-ordinators with full circle

supply chain experience and Sourcing Specialists for cost reduction

and process improvement projects. Contracts Managers and ICT

Procurement Specialists are needed too. Employers are also

putting more emphasis on qualifications, both tertiary and CIPS.

"With quality candidates thin on the ground, candidate attraction

is key. Part of this involves salary, but while some employers have

offered salary increases others are instead using bonuses and

benefits to reward high performers. as these findings show flexible

working is now very important to australian procurement

professionals, in some cases even more than the salary on offer.

"In other trends, we’re seeing a shift in the australian market

where procurement professionals need to make themselves

relevant in not only a cost cutting sense but by driving value

outside finance, and leading innovation and change. Perhaps this

explains why three quarters of survey respondents say the

perception of procurement has improved in the last 12 months.

"For CIPS members in australia looking for their next role, our

advice is to demonstrate relevant category experience, consider

roles that will benefit you long-term and recognise that contract

positions can help you gain more diverse experience."

TIM JaMES

Director

Hays Procurement in Australia


Salaries and bonuses

64%

In 2015 the highest average salaries were

seen in the Private Sector. As in the UK,

men receive higher salaries than women

at all levels except Tactical, whereas in

the UK the disparity seems to rise with

seniority. In Australia the opposite is the

case with the difference at its smallest at

the highest levels of seniority. In the last

12 months, 64% of respondents received

a salary increase and 43% received a

bonus, which is comparable with figures

for the UK.

Increased earning power

of MCIPS members

AUD138k

AUD124k

AUD127k

Private Sector

Public Sector

Charity/Not For Profit

rESPOnDEnTS

received a salary increase

MCIPS

average salary

Non-MCIPS

average salary

AUD159,677

AUD123,493

AUD

211.6K

Advanced

Professional

AUD

199.3K

64%

43%

Received a salary increase

in the last 12 months

Received a bonus in

the last 12 months

Average salaries by job level and gender

Female v male average

salary difference

Advanced Professional

211,600

199,300

-£12.3k

-6%

Professional

123,700

148,900

-£25.2k

20%

Managerial

123,200

109,000

-£14.2k

-13%

Operational

100,100

87,300

-£12.8k

-15%

Tactical

70,500

76,600

+£6.1k

8%

AUD 000s 20 40 60 80 100 120 140 160 180 200 220

49


Benefits

The top 5 benefits in Australia differ from the UK and

Sub-Saharan Africa in that flexible working is the single

top benefit at 53%. The top UK and Sub-Saharan Africa

benefit of pension contributions comes in at sixth in

Australia (19%). The third top benefit, long service

award, does not make it into the UK benefits chart.

Top 5 benefits

Flexible

working

IS THE SInGLE TOP bEnEFIT

53% 43% 35% 33% 28%

Flexible

working

Support for study/

career development

Long service

award

Professional body

membership fee

Car parking

Finding talent

The general picture in

Australia of the challenges

for recruiters in finding

talent is similar to the UK,

where 76% faced challenges

in the last 12 months.

Challenges in recruiting the right talent

76%

OF THOSE rESPOnSIbLE FOr

rECrUITInG PrOCUrEMEnT

STaFF FaCED CHaLLEnGES

in finding the right talent

in the previous 12 months

Budget restraints

54%

Organisational fit

34%

Candidate salary expectations

32%

Internal processes/HR

25%

Lack of sector skills and experience

25%

Lack of soft skills

22%

Lack of technical skills

20%

Competition from other employers

13%

Location

10%

% 0 10 20 30 40 50 60 70 80 90 100

www.CIPS.org/salarysurvey


Importance

of key skills

In Australia, as in the UK, communication and

soft skills are viewed by most respondents as

important to doing their job well (85%-89% for

all job levels, except Tactical). However, in

Australia the only job level where this is not

the case is Tactical, which ranks supplier

relationship/management (86%) and contract

management (79%) as more important than

communication/soft skills (64%); and

negotiation, sourcing and data analysis/

business intelligence and reporting as equal to

communication/soft skills.

Communication

IMPOrTanT

to doing their

job well

Top 6 skills required by seniority

100

100

100

80

60

91 89 88

77 77 76

80

60

83 88 68 77 73 75

80

60

79 86 82 80 78 78

40

40

40

20

20

20

0%

Advanced

Professional

0%

Professional

0%

Managerial

100

100

80

60

73

85 80

76 78 70 70 60

40

64 64

86

64 64

79

40

20

20

0%

Operational

0%

Tactical

Key to skills required

Influencing

Communication/Soft Skills

Leadership

Negotiation

Raising the Profile

of Procurement

Supplier Relationship/

Management

Data Analysis/

Business Intelligence

Supplier Evaluation

and Appraisal

Tendering

Change Management

Sourcing

Contract Management

51


Perceptions of

procurement

The regard for procurement within

organisations in Australia is generally positive,

with 70% of respondents agreeing that

procurement is valued. We are also seeing

positive perceptions of procurement improving,

and it is hoped that this is as a result of

procurement functions continuing to raise their

game and be seen as an essential value driver.

The regard for

procurement within

organisations in Australia

is generally positive

+

aGrEE

procurement is valued

70%

The wider organisational view of procurement

Perception of procurement has

improved in the last 12 months

75%

Procurement is very much

valued within my organisation

70%

Directors and heads of other departments

in my organisation understand what

procurement specialists can offer

64%

Staff in other departments in my

organisation understand what

procurement specialists can offer

54%

Procurement is engaged

from the start of a project

46%

% 0 10 20 30 40 50 60 70 80 90 100

www.CIPS.org/salarysurvey


Section 6

Sub-Saharan

Africa

Weakening economic fundamentals will

continue to have an adverse effect on the

Private and Public Sector across Africa. The

Procurement and Supply Chain profession

will once again play a key role in mitigating

the risks associated with the current

economic reality. In order to make a

strategic impact Procurement and Supply

professionals will have to have a different

skillset.

Given the obvious skills shortage it is no wonder that the hunt

for talent is as fierce as it is. the implication of this skills

shortage is that organizations are prepared to pay more for

people with the right skillset. MCIPS epitomises professionalism

and hence the premium employers are prepared to pay for

professionals that hold the MCIPS designation.

Andre Coetzee

Managing Director, Africa

Chartered Institute of Procurement & Supply


Salaries and bonuses

55%

In 2015 the highest average salaries were

seen in the Private Sector, although salaries

across the board were all lower than the UK

averages. The biggest difference when

compared to the UK and Australia is in the

gender disparity. In Sub-Saharan Africa this

only exists at the top two job levels, and at

Tactical and Managerial levels wages for

women far outstrip those for men. However,

we need to be careful when coming to

conclusions here as the proportion of

procurement professionals sampled in this

survey is very small when related to an area

the size of Sub-Saharan Africa.

In the last 12 months, 55% of respondents

received Increased a salary earning increase and power 41% received a

bonus,

of MCIPS

which is

members

comparable with figures for

the UK and Australia although incidence of

salary increases is slightly lower.

reSPondentS reCeIved A SAlAry InCreASe

in the last 12 months

Average salaries by sector

£19,351

£17,959

£18,136

Private Sector

Public Sector

Charity/Not For Profit

55%

MCIPS

average salary

Non-MCIPS

average salary

£25,141

£21,697

£20.4k

Managerial

£26.6k

Received a salary

increase in the last

12 months

41%

Received a bonus in

the last 12 months

Average salaries by job level and gender

Female v male average

salary difference

Advanced Professional

28,200

24,600

-£3.6k

-15%

Professional

23,000

22,200

-£0.8k

-4%

Managerial

20,400

26,600

+£6.2k

23%

Operational

17,400

19,500

+£2.1k

11%

Tactical

6,900

14,900

+£8.0k

54%

www.CIPS.org/salarysurvey

GBP 000s 0 5 10 15 20 25 30 35 40 45 50


Benefits

The single most common benefit by far in

Sub-Saharan Africa is pension

contributions at 60%. Flexible working,

which features strongly in the UK and

Australia, does not make it into the top 5

for Sub-Saharan Africa, at just 16%.

Pension

contributions

IS tHe SInGle MoSt CoMMon BeneFIt

Top 5 benefits

60%

46%

36% 31% 25%

Pension

contributions

Private medical

insurance

Support for study/

career development

Life assurance/death

in service benefits

Long service

award

Finding talent

The general picture in Sub-

Saharan Africa of the challenges

for recruiters in finding talent is

similar to the UK, where 63%

faced challenges in the last

12 months.

Challenges in recruiting the right talent

63%

oF tHoSe reSPonSIBle For

reCrUItInG ProCUreMent

StAFF FACed CHAllenGeS

in finding the right talent

in the previous 12 months

Budget restraints

60%

Organisational fit

51%

Candidate salary expectations

43%

Internal processes/HR

38%

Lack of sector skills and experience

36%

Lack of soft skills

33%

Lack of technical skills

26%

Competition from other employers

20%

Location

15%

% 0 10 20 30 40 50 60 70 80 90 100

55


Importance

of key skills

Communication

Again, communication and soft skills

are viewed as important to job

performance (81%-89%). However, in

Sub-Saharan Africa there are more

important skills at every job level,

which may reflect the level of

development of procurement as a

profession in the region.

IMPortAnt

to doing their

job well

Top 6 skills required by seniority

100

80

100

80

94 89 89 86 89 91

100

80

88 89 90 85 88 87

91 91 89 86 86 85

40

60

60

60

40

40

20

20

20

0%

Advanced

Professional

0%

Professional

0%

Managerial

100

100

80

60

85 78

81 87 87 80

80

60

79 70

81 72 70 70

40

40

20

20

0%

Operational

0%

Tactical

Key skills required

Leadership

Supplier Relationship/

Management

Influencing

Raising the Profile of

Procurement

Contract Management

Communication/

Soft Skills

Negotiation

Market Analysis

Sourcing

Supplier Evaluation

and Appraisal

www.CIPS.org/salarysurvey


Perceptions of

procurement

The broad picture of regard for procurement

within organisations is extremely positive,

with 81% of respondents agreeing that

procurement is valued. Again, positive

perceptions of procurement are also

improving as procurement functions raise

their game and continue to add more

organisational value.

81%

+

AGree

procurement is valued

The broad picture

of regard for procurement

within organisations is

extremely positive

The wider organisational view of procurement

Procurement is very much

valued within my organisation

81%

Perception of procurement has

improved in the last 12 months

77%

Directors and Heads of other departments

in my organisation understand what

procurement specialists can offer

71%

Procurement is engaged

from the start of a project

70%

Staff in other departments in my

organisation understand what

procurement specialists can offer

64%

% 0 10 20 30 40 50 60 70 80 90 100

57


Conclusion...

Procurement at the heart of business

The theme for CIPS President Richard Masser’s tenure

(November 2015 – October 2016) is ‘Procurement at the

heart of business’. The new president recognised early on

that procurement can be the single most significant

enabler within an organisation and a means to add value:

“And it is real value that enables a business to thrive, to

achieve its objectives and to deliver success,” comments

Richard. This is certainly born out by the findings of our

Procurement Salary Guide and Insights 2016, with 71% of

respondents stating that procurement is very much valued

within their organisations and 50% highlighting that

procurement is engaged at the start of projects.

to succeed in placing procurement at the heart of

business, it is clear that today’s professionals need to have

all-round commercial, business acumen. they also need to

be in tune with the many economic and social factors that

influence overall business decisions and understand that

they can and do change at an alarming rate.

“the need to understand all the disciplines involved in

business – from legal and financial to marketing and

development – has never been more relevant for a

procurement professional if they are to optimise

engagement and contribution,” says richard. “It is

essential to find ways to make those in other disciplines

understand what procurement can and does contribute,

together with the benefits of cross-functional working.”

this is a call for procurement people to widen their

learning through continuing professional development

(CPd) and, in fact, respondents to our survey tell us that

training and development opportunities are one of the

biggest reasons to stay with a current employer. But it is

also a call for employers: to offer the career progression

and job fulfillment that will attract and retain the best,

even in the face of challenging salary expectations and a

talent-driven market; and to cast the recruitment net

wider, with other departments and professions providing a

rich source of the soft skills so much in demand (and in

such short supply), supported by procurement-specific

training.

Richard Masser's key elements for putting

procurement at the heart of business

• Investing in training and development to gain skills and

continuing professional development to keep current

• developing a thorough understanding of corporate

objectives and participation in setting your own aligned

objectives

• Being committed to ambitious but deliverable targets that

push you out of your comfort zone

• Being confident in your ability to deliver

• Proactively making the highest level of management

aware of what you intend to deliver before you deliver it in

order to be seen as a strategic enabler

• delivering on your promise to generate results that can be

relied upon

• Sharing success and recognition for the added value

procurement brings

• Creating tangible value to enable procurement to sit at the

heart of your business.

“Overall, our Procurement Salary Guide and Insights 2016

has supported the general picture of increased market

confidence, resulting in increased demand for procurement

skills. Now is the time to capitalise on this and the

importance organisations are placing on procurement as a

way to generate value in a challenging economic climate. It

is the perfect time to demonstrate the profession's worth

and influence, and to truly put procurement at the heart of

business.”

Richard Masser FCIPS, President 2016

Chartered Institute of Procurement & Supply

“It is great news that salaries have risen by 5% and are

outstripping some of our other professions we recruit for,

but we cannot brush aside the skills shortage and demand

for procurement, so changes must be made to an

organisation's talent attraction and retention activities to

avoid losing out in the war for procurement talent.”

Nicky Taberner, director,

Hays Procurement & Supply Chain

www.CIPS.org/salarysurvey


www.hays.co.uk/procurement

CIPS Group Easton House, Easton on the Hill, Stamford, Lincolnshire, PE9 3NZ, United Kingdom

T +44 (0)1780 756777 F +44 (0)1780 751610 E info@cips.org

CIPS Africa Ground Floor, Building B, 48 Sovereign Drive, Route 21 Corporate Park, Irene X30, Centurion, Pretoria, South Africa

T +27 (0)12 345 6177 F +27 (0)12 345 3309 E infosa@cips.org.za

CIPS Asia Pacific 31 Rochester Drive, Level 24, Singapore, 138637

T +65 6808 8721 F +65 6808 8722 E infosg@cips.org

CIPS Australasia Level 2, 520 Collins Street, Melbourne, Victoria 3000, Australia

T 1300 765 142/+61 (0)3 9629 6000 F 1300 765 143/+61 (0)3 9620 5488 E info@cipsa.com.au

CIPS is a registered trademark of the

CharteredInstituteofProcurement&Supply

CIPS MENA Office 1704, The Fairmont Hotel, Sheikh Zayed Road, PO Box 119774, Dubai, United Arab Emirates

T +971 (0)4 311 6505 F +971 (0)4 332 8810 E mena.enquiries@cips.org

www.cips.org

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