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Pay for financial services procurement specialists outperforms other sectors

Pay for financial services procurement specialists outperforms other sectors

Up to 40% bonuses for VP staff common place, senior staff offered up to 100% bonuses

Pay for procurement specialists within other sectors remain static

Average pay for procurement specialists within the financial services sector has jumped by 5% over the last year whilst pay for peers in other sectors has remained broadly flat, says Langley Search & Selection (“Langley”), a leading recruitment firm. 

Langley, which specialises in procurement and supply chain professionals, says that banks in particular have been recruiting larger number of procurement staff as part of their battle to reduce their cost base.

According to Langley, the number of job vacancies for procurement specialists within the financial services sector has leapt by 12% in the last year.  

Langleysays that mid-level “Vice President” procurement staff working in financial services now command an average basic salary of approximately &pound80,000 per year, up from over &pound76,000 this time last year. 

Average basic salaries in 2011 for equivalent mid-level procurement staff across all sectors are approximately &pound63,000.

Langleyexplains that bonus payments for financial service procurement specialists – contingent on staff successfully reaching agreed performance targets – have re-appeared for the first time since the start of the credit crisis. Annual payments of up to 40% of base salaries for mid-level staff are now commonplace and good levels of performance based bonuses seem to be returning.  

Annual salaries for “Directors of Procurement” within financial services will often exceed &pound150,000 and department heads can expect bonuses of up to 100% of their base pay. 

Christina Langley, Managing Director of Langley, says: “In the post credit crunch environment banks have been in an almost constant struggle to improve their cost to income ratios.”

“The last six months of Eurozone turbulence has added a fresh urgency to efforts to reduce costs and this is leading to a noticeable increase in new procurement jobs in this sector which is pushing up wages. Performance related bonuses are also being offered – not just to get the procurement teams to hit their targets but also to help retain those staff.”

Langley Search & Selection says that one area where procurement specialists have been active within banks is to look at the purchases of IT and IT services. Banks and hedge funds will regularly invest in updated IT platforms, to ensure that their staff  have access to the quickest and most reliable trading platforms which means investments in IT can be very high on the priority list. 

Adds Christina: “Procurement specialists can have a very immediate impact on the profitability and bottom line of firms. Pressure to reduce costs has meant that all businesses are now waking up to need for suitably qualified specialists to review all external spend.”

“A lack of supply of qualified staff has pushed up base salaries and put bonus payments back on the table.”

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