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

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Some of our Top 200 Companies – revenue range £300,000-£5,188,988,000 and local head offices…

The north east jobs market

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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…..

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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….

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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

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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.

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NEWCASTLE IS THE NUMBER ONE PLACE IN THE WORLD TO VISIT IN 2018 – Rough Guide

(The USA came 2nd and Russia came 7th!)

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ALL BECAUSE WE KNOW THAT THE RIGHT JOB CAN TRANSFORM A PERSON’S LIFE AND THE RIGHT PERSON CAN TRANSFORM A BUSINESS