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Procurement average salaries rise 5% YoY, finds CIPS and Hays Procurement

Over 4000 procurement professionals contributed to the latest free salary guide from The Chartered institute of Procurement & Supply (CIPS) in partnership with Hays Procurement.


The CIPS/Hays Procurement Salary Guide and Insight  2016 report benchmarks salaries and bonuses for different roles and profiles, and offers insight into career paths within procurement for permanent and interim contracts. Responses were received from the UK, Australia and Sub-Saharan Africa. Various levels of seniority completed the survey including advanced professionals (procurement director), managerial (senior buyer), operational (buyer) and tactical (assistant buyer).

The guide is divided into sections relating to salaries and bonuses, procurement as a career, and the perception of procurement’s role in organisations.

The survey findings revealed an average salary rise of 5% for all procurement and supply professionals. This is an increase on the average salary from £41.7k in 2015 to £44.2k in 2016. The number of professionals in the charity/not-for-profit sector who received a pay increase was the highest at 75%, with 72% in the private sector and 60% in the public sector.

Disparities between public and private sectors continued in the UK, most marked in London and the South East. Rises in the East and West Midlands corresponded to rises seen in sectors such as pharmaceuticals, life sciences and manufacturing which have large concentrations in these areas.

Gender differences also continued from previous years, with a 21% average gender salary gap for private sector advanced professionals. Women received around £12.7k less a year at this level.

Levels of bonuses were healthier this year with 51% on average receiving a bonus in the private sector. Across all sectors procurement directors received 19% of their annual salary and procurement analysts around 22% as a bonus.

With 74% of organisations facing challenges in finding the right staff in the last 12 months and 64% of organisations planning to recruit in the next 12 months, professionals are on the move. Around 50% of employees plan to move jobs in the coming year, with 72% wanting to move to a more senior role in the next two years.

David Noble, Group CEO of CIPS, commented, “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. Over 35.8 million people are suffering from modern slavery and many are working in our supply chains.

“The average 29% higher salary figure for MCIPS professionals at tactical level comes as no surprise as these are individuals with a high level of learning and experience. We see greater confidence amongst our professionals to demand higher salaries for excellence.”

Nicky Taberner, director at Hays Procurement, said, “The rising salaries shown by this year’s survey reveal the premium employers are prepared to pay for the best procurement professionals. It’s a competitive market, with demand outstripping supply of candidates, and employers are having to work hard to adapt their recruitment strategy and employee offering to attract and retain employees. Those employers who can embrace change and develop new hiring strategies will have the edge in what will remain a highly competitive market.”

John Glen, CIPS Economist and Senior Lecturer in Economics at Cranfield University, added, "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.

“In general the outlook for procurement professionals is good. Demand for their services outstrips supply and this is reflected in healthy wage appreciation. Perhaps just as important, is the increased desire on the part of employers to train and develop new entrants to the profession as well as seasoned professionals.”

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