PROCUREMENT SALARY GUIDE AND INSIGHTS 2019HIRING FOR THE FUTURE OF PROCUREMENT

In partnership with

REPORT OVERVIEW

• 5th edition of the report

• Survey conducted in September 2018

• Over 3,000 professionals globally

completed the survey

SKILLS SHORTAGES IMPACTING HIRING PLANS

RECRUITMENT CHALLENGES REMAIN

56%

faced challenges finding the right

talent

50%top challenge was candidate

salary expectations

TOP RECRUITMENT CHALLENGES

26%

30%

32%

44%

56%

0% 10% 20% 30% 40% 50% 60%

Lack of soft skills

Competition from otheremployers

Lack of technical skills

Budget restraints

Lack of sector skills andexperience

TOP SKILLS IN DEMAND

Supplier relationship management

In demand across all levels: Other skills in demand:

• Communication & soft skills

• Negotiation

• Sourcing

STRONG HIRING PLANS FOR THE YEAR AHEAD

65%plan to hire in the next year

Private sector 67%

Public sector 59%

Charity/NFP sector 71%

PROFESSIONALS MOVING ROLE

30%

plan to move

employer in the

next year

63%

64%

70%

76%

0% 20% 40% 60% 80%

Company is committed tostaff training

Content of the work

Career progressionopportunities

Salary

Reasons to move role

CHALLENGES AHEAD: KEY ISSUES EMPLOYERS FACE

Changing EU procurement regulations1Ensuring engagement with procurement at the outset of a project

Being seen as a strategic partner to the business

Managing risk in supply chain

Budget restraints

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SALARIES ON THE RISE

SALARY TRENDS FROM THE LAST YEAR

72%received a salary increase

5.3%overall salary increase

2.7%national average

pay increase*

* ONS Statistics September 2018

AVERAGE SALARIES BY REGION

Scotland £40,430

North East £42,155

London £58,960

South East £48,049South West £39,558

West Midlands £42,791

East Midlands £42,941

East of England £46,501

North West £40,227

Yorkshire & Humber £38,050

Northern Ireland £37,933

Wales £34,749

AVERAGE SALARIES BY SECTOR

72%

received a salary

increase

74%

received a salary

increase

Private Sector

£46,432

Charity/NFP

£45,377

Public Sector

£42,278

72%

received a salary

increase

Private Sector:

This year, the greatest salary increases within the Private Sector were seen in industries such as Defence

(up 4.3% on last year), Energy & Utilities (including Water, Mining, Oil, Gas and Nuclear), Construction &

FMCG. All saw increases between 7% and 7.9%. Over 80% of candidates within Healthcare, Pharma, Life

Sciences and FMCG saw a salary increase in the last 12 months. This may be due to the increasing

reliance on cutting edge innovations in those sectors, leading to more complex procurement requirements

and the need for highly skilled staff who can be ‘ahead of the game’.

Public Sector:

The highest average salary increases were in Defence/MOD related industries, but the average salary in

that space is also still the lowest in the UK by a large margin (almost £10k). Central Government and

Emergency Services saw the biggest per pound growth over last year’s findings, with transformation

projects requiring skilled procurement staff who boast change management skills, and the kind of broad

communication capabilities and suite of soft skills we touched on before. The ability to effectively engage

stakeholders is vital, and employers will pay extra for this skillset.

BREAKING THIS DOWN

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AVERAGE SALARIES BY GENDER

23,597

30,927

43,356

46,799

64,590

25,429

31,817

45,319

51,194

87,404

Tactical

Operational

Managerial

Professional

Advanced Professional

Average salary (£)

Male Female

PROFESSIONALS RECEIVING A BONUS BY SECTOR

51%Private Sector

16%Charity/

NFP Sector

16%Public Sector

9.5% of annual salary

6.6% of annual salary

7.7% of annual salary

MOST COMMONLY RECEIVED BENEFITS

Work mobile phone

Flexible working

Private sector: Public and charity/NFP sectors:

• We continue to see a significant positive difference in the earning power of MCIPS

members who on average earned 15% more (a 2% increase from 2018) than their

non-MCIPS colleagues.

• For example, MCIPS qualified Senior Buyers in the Private Sector earn 21% more

than non MCIPS peers

• This is continued with seniority, with FCIPS members also enjoying noticeable

higher salaries

• This signifies the value employers place on MCIPS as a mark of professionalism,

capability and integrity

• In future reports it will interesting to see whether the recently introduced Chartered

status builds similar recognition to MCIPS and FCIPS, and commands similarly high

salaries

MCIPS AND THE BENEFITS OF BEING A MEMBER

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INTERIM MARKET UPDATE

AVERAGE INTERIM DAY RATES

£566Private

Sector

£410Public

Sector

£534Male

£426Female

By sector: By gender:

TOP FOUR REASONS TO BECOME AN INTERIM

54%Flexibility

44%Variety of

work

43%Pay

33%Redundancy

• Continuing the trend for the last three years, the most common project for interims was change and

transformation. The 5% increase in this figure may be due to such projects within Central Government.

• Businesses over the last year have explored various scenarios in preparation for Brexit with interims

undertaking Category Management Implementation projects (up 5%) and process improvement &

strategic performance reviews (up 4%).

• Strategic Sourcing interim assignments dropped by 8%, perhaps due to the uncertainty of the market

with no current deal on the table.

• The most common reason across both sectors for using interims is as it was in 2018, was as an

additional resource. This includes to undertake ongoing projects, programmes of work, or high level

transformational projects.

• Employers tend to hire interims for their specific technical skills, but also look for interims with strong

shareholder management skills who interact well and have a practical, hand on and ‘hit the ground’

approach.

• 60% of interim roles are now 1 to 6 months in duration; contracts of more than 6 months dropped by 8%

INTERIMS BY ROLES

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PERCEPTIONS OF PROCUREMENT

PERCEPTIONS OF PROCUREMENT

71%agree procurement

is valued in their organisation

Private sector 70%

Public sector 73%

Charity/NFP sector 72%

RECOMMENDATIONS

RECOMMENDATIONS

Consider what you can offer outside of salary1Evaluate your hiring process

Don’t forget the soft skills

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CIPS/HAYS PROCUREMENT SALARY GUIDE AND INSIGHTS 2019

Contact us: chris.evans5@hays.com

LinkedIn: Hays Procurement Insights – UK & Ireland

hays.co.uk/cips-salary-guide