PROCUREMENT SALARY GUIDE AND INSIGHTS 2017 Key trends and findings Jackie Mordue, February 2018
PROCUREMENT SALARY GUIDE AND INSIGHTS 2017
Key trends and findings
Jackie Mordue, February 2018
CIPS/HAYS
SALARY GUIDE
3rd OFFICES
25
CONSULTANTS
60+ RESPONSES
4,000+
TOP RECRUITING INDUSTRIES
88% BANKING,
FINANCE AND
INSURANCE
81% PROFESSIONA
L BUSINESS
SERVICES
78% CENTRAL
GOVERNMENT
75% NHS
61% CHARITY
TOP RECRUITMENT CHALLENGES
Lack of sector skills and experience
Budget restraints
Candidate salary expectations
Lack of technical skills/evidence of
formal procurement training
Organisational fit
47%
47%
40%
29%
27%
EMPLOYEE CONFIDENCE IS GROWING
71%
want to progress
to a more senior role
within two years
of employees
plan to move job
in the next two years
50%
WHY MOVE JOB?
Salary
Location within the country
where I am currently based
Career progression opportunities
The content of the work
Company is committed to staff
training and development
72%
64%
63%
62%
61%
TOP 5 BENEFITS MOST FREQUENTLY OFFERED BY EMPLOYERS
Pension contributions
Flexible working
Life assurance
Car parking
Free mobile phone
SALARY SPOTLIGHT
average UK
salary increase in
procurement 5.3%
MCIPS CAN EARN MORE
Average salary disparity between
MCIPS and non-MCIPS
22%
Scotland £40,712
North East £36,644
Yorkshire & Humber £37,930
East of England £47,035
London £57,664
South East £48,442 South West £40,267
Wales £39,063
North West £42,118
Northern Ireland £34,434
West Midlands £42,556
East Midlands £42,789
AVERAGE SALARIES
BY REGION
TOP PAYING INDUSTRIES IN THE UK
Professional and Business Services
Regulator
Housing Association
7.5
%
4.2
%
5.7
%
UK average pay
increases as %
of salary
£68,778
£55,864
£40,454
INTERIM SPOTLIGHT
£605
average day rate for experienced
interim professionals
average day rate for interims
with two to four years
experience £361
7%
difference in pay between men
and women
TOP PROJECTS REQUIRING INTERIMS
Change and Transformation
Category Management Implementation
End to End Tender Process
Strategic Sourcing Exercise
Generalist Performance
32%
12%
12%
9%
7%
THE GROWING SKILLS GAP
Tweet us @haysnews using #hayssalaryguide
SKILLS SHORTAGES INTENSIFY
A THIRD OF EMPLOYERS HAVE FACED SKILLS SHORTAGES
73% of industry employers say
their top recruitment challenge
is a lack of suitable applicants
77% of employers have experienced
moderate to extreme skills shortages
16%
61%
18%
Extreme Moderate Minor
5%
None
EMPLOYERS ACROSS ALL SPECIALIST AREAS BELIEVE SKILLS SHORTAGES ARE HAVING AN IMPACT
% of employers who say their top recruitment challenge is a shortage of suitable applicants
80%
Legal Office
Support
72%
Accountancy
& Finance
76%
Construction
& Property
78%
HR
68%
*Example specialist industry areas/professions taken from the report. Over 20 industry sectors & functional areas covered in guide.
79%
IT & Digital
Technology
Procurement,
supply chain
& logistics
73%
STRATEGIC TRANSFORMATION IS INFLUENCING SKILLS
Top skills most needed to achieve business objectives
45%
Leadership
& managerial Data &
analytics
25%
Operations
& technical
36%
Projects
& change
43%
Administration
24%
*Example list. Full list found in report.
IT
infrastructure
21%
MULTIPLE REASONS FOR SKILLS SHORTAGES
64% of employers say
competition within
the market
34%
Main causes of skills shortages
of employers say fewer
professionals entering
the job market
EMPLOYERS LOOK TO TEMPORARY STAFF TO ALLEVIATE PRESSURE AND ADDRESS PRODUCTIVITY CONCERNS
Hire
temporary
staff
44%
Increase use of
recruitment
agencies
22%
Increased
training
budget
17%
Transferred
employees into
skill shortage areas
17%
Top actions taken to address immediate skills shortages
RECOMMENDATIONS FOR EMPLOYERS
Create a strong value proposition for candidates
Ensure career progression pathways are clear
Evaluate your benefits packages
RECOMMENDATIONS FOR EMPLOYEES
Ensure you have a training and development plan in place
Focus on building your soft skills
Don’t just focus on salary if you are looking to move roles
NORTH EAST OPPORTUNITIES CURRENT MARKET OVERVIEW
CIPS
Tuesday 6th February 2018,
Northumbria University
Business School
26
Did you know….
Nearly two-thirds (63%) of EU businesses who work with UK
suppliers expect to move some of their supply chain out of the UK as
a result of Brexit according to a survey from the Chartered Institute
of Procurement & Supply (CIPS). November 2017
Indeed jobsite on the 1st February 2018 showed 372 live
permanent jobs in procurement, purchasing and supply
chain within a 25 mile radius of Newcastle City Centre
AGENDA
1. NORTH EAST JOBS MARKET
2. NEWCASTLE - A SKILLED CITY
3. YOUR MARKET PRESENCE
27
28
Some of our Top 200 Companies – revenue range £300,000-£5,188,988,000 and local head offices…
The north east jobs market
29
Options to consider…
Service Sector – Parkdean, Hays Travel, Utilitywise
Manufacturing – Nissan, Greggs, Gestamp
Construction & Property –Grainger, Bellway, Barratts
Transport/Travel – Arriva, Go-Ahead, Hargreaves
Busy sectors in north east england
30
Options to consider…
Technology – Sage, Performance Horizon
Utilities – Npower, NWL, Northern Powergrid
Renewables – Siemens Gamesa, EDF,
BorgWarner
Shared Service Centres – P&G, Engie, Cummins
Busy sectors in north east england
IT’S PERSONAL…..
31
32
Advice…..? you have multiple choices…
Map your local market and
decide on a career path
Select a sector and become a
specialist in a niche area
Source a good mentor and
work together to build your
strategy for success
….MAKE A PLAN…
33
Hays and Deloitte have undertaken a detailed
report of 13 of the UK’s major cities based on a
number of factors relating to their own unique
investment offerings, Newcastle is one of them…
Skilled cities report
34
OFFICE MARKET
0.8million sq ft available
0.3million sq ft under
construction
ANNUAL SALARY
Supplier Relationship Manager
£43,000 (average)
Qualified Accountant (0-1 years
experience) £40,000 (average)
AVERAGE WEEKLY
EARNINGS
UK - £538.70
Newcastle - £517.90
TALENT AVAILABILITY
Unemployment rate 7.1% (UK
4.8%)
2 Universities (3 more
regionally)
Working age population - City:
207,000 (1 million in scope)
TRANSPORT LINKS
Airport – 85 destinations served
directly
Rail – 2 hours 45 mins to
London
HOUSE PRICES
UK - £215,847
Newcastle - £151,456
We are the regional capital and largest city…
EXCITING TIMES AHEAD….
35
36
Managing your profile and network both
online and in person has never been more
important…
…your next employer can find out all about
you, make sure they see what you want
them to see!
YOUR MARKET PRESENCE
SOCIAL MEDIA – some examples
MEMBER
GROUPS
FOLLOWERS
ACCOUNT
FANS
PAGE
VIEWS
ACCOUNTS
VIEWS
CHANNELS
VIEWS
CHANNELS
37
38
LOCAL NETWORKING – Giving your personal brand a presence
CONCLUSION
We have exciting businesses at the cutting edge of
new technology, a multitude of multinationals, plenty
of opportunities to learn and network, plus a skilled
workforce, a natural focus on work life balance with
desire, resilience and the highest productivity and
export figures in the UK.
Newcastle is a great place to carve out your career
…..as long as you know where to look.
39
NEWCASTLE IS THE NUMBER ONE PLACE IN THE WORLD TO VISIT IN 2018 – Rough Guide
(The USA came 2nd and Russia came 7th!)
40
ALL BECAUSE WE KNOW THAT THE RIGHT JOB CAN TRANSFORM A PERSON’S LIFE AND THE RIGHT PERSON CAN TRANSFORM A BUSINESS