salary & benefits guide 2019...salary & benefits guide 2019 a guide to recruitment trends,...

Salary & Benefits Guide 2019

Salary & Benefits Guide 2019 A guide to recruitment trends, average salaries and what skills, benefits and perks are most in demand right now.

Hello We’re in the midst of an exciting yet challenging and uncertain era for many businesses. As the Fourth Industrial revolution unfolds, companies can tap into technology that enhances overall productivity, efficiency and customer reach like never before.

Business models are also changing. By 2022, 59% of employers expect to have “significantly modified how they produce and distribute by changing the composition of their value chain”*.

With the growing skills gap these changes and an ageing population present, the war for talent is not a battle likely to die out yet. Brexit may be in a state of chaos but recruitment rates and future intentions remain high in most sectors**.

And so the candidate-driven market remains but what they value is changing.

For employers, it presents an opportunity and a threat. To attract, hire and retain the best talent - that will drive their business forward, instead of being another sorry tale of mass redundancies - organisations need an effective recruitment process and to rethink what they can offer employees.

This Salary Survey will help candidates and employers alike. It covers:

• Key general hiring trends• Function-specific recruitment trends• The skills and experience most in demand for the role functions we recruit for• Average salaries for each role • What candidates value in 2019 by role function

We hope you find it useful.

Wayne BrophyManaging Director

*World Economic Forum’s report The Future of Jobs 2018** CIPD’s Labour Market Outlook

Contents• General Hiring Trends • The key drivers • The resulting recruitment trends

• Procurement & Supply Chain • Trends • The key drivers • The resulting Procurement & Supply Chain recruitment trends • What employers and candidates are looking for • Salary banding

• Transport, Logistics & Warehousing • Trends • The key drivers • The resulting Transport, Logistics & Warehousing recruitment trends • What employers and candidates are looking for • Salary banding

• Buying & Merchandising • Trends • The key drivers • The resulting Buying & Merchandising recruitment trends • What employers and candidates are looking for • Salary banding

• Empowering you to make the best choices

Cast UK | Specialist Recruiters | Visit: www.castuk.com or call: London 0208 185 5200, Manchester 0161 825 0825 or Birmingham 0121 222 6444

General Hiring TrendsAt Cast UK, it has generally been business-as-usual, with recruitment levels largely unaffected across our sectors despite the uncertain economic forecasts and conditions doom and gloom. The CIPD’s latest Labour Market Outlook shows that we are not alone: recruitment rates show no real signs of change. In fact, the net employment figures of those who expect to recruit versus those who don’t are down by just one point.

Meanwhile, the skills gap continues to increase. The number of organisations reporting recruitment difficulties has increased to around 70% of employers, compared with 61% six months ago. 43% report hard-to-fill vacancies and 34% report problems retaining staff.

So what are the key drivers fueling the candidate-driven market and what recruitment trends are we seeing in response?

The Key DriversBrexitBy the time this salary guide ‘goes to press’, the Brexit deal status and the surrounding political circus may well have changed again.

Uncertainty remains yet, as discussed above, recruitment levels remain relatively high. At Cast UK, our clients are signalling an increase in recruitment for Procurement and Supply Chain going forwards, as businesses focus on expanding teams with skills to address the challenges of leaving the EU. Whilst our Retail & Merchandising team have found job insecurity fears affecting the ratio of senior to junior roles, this can be explained by the ongoing disruption in the retail sector.


The rise of the robots & AIRobotics and AI are no longer some far-fetched reality from sci-fi films. They are already infiltrating into manufacturing and supply chains at an accelerating rate - and Gartner predicts that global spending on robotic process automation will increase by 57% in 2019.

The routine nature of supply chains and manufacturing make them ripe for disruption. Those who can leverage robotics and AI can optimise efficiencies and lower costs, to provide customer-first solutions with a competitive advantage.

57% of SMEs fear that robotic process automation will negatively affect their organisations over the next five years.Ultima poll of 500 c-suite SME executives

The rise of the machine doesn’t just strike fear in the hearts of employees worrying about redundancy. Businesses are also concerned about staying competitive - especially SMEs, with over half fearing a negative impact on their business. Despite this, 77% would like to use robotics and AI to automate mundane, repetitive tasks - with 56% wanting to use the time savings so that their employees can focus on more strategic tasks.

No new blood in ‘dull’ sectors The current demand for supply chain professionals is estimated to exceed supply by a ratio of six to one DHL report “The Supply Chain Talent Shortage: From Gap to Crisis”

In transport, logistics, warehousing and supply chain, Baby Boomers are leaving the workforce without a talent pool to replace them - largely due to the younger generation viewing these careers as ‘dull’ and male-dominated.

We do not see the skills gaps reducing in 2019, but it will be interesting to see whether the rapid rate of technological change will start to make these career paths more appealing to school leavers, graduates and second-career workers.

The Resulting Recruitment TrendsEmployer Branding

89% of employers had made efforts to improve their employer branding in 2017, according the the CIPD - something that shows no signs of abating.

With the recruitment difficulties and problems retaining staff faced by many employers, it comes as no surprise that employers are making strides to stand out in the marketplace.

A negative recruitment process has the power to change an overwhelming 83% of candidates’ mind, whilst a positive one may turn 87% doubtful candidates around*. * Deloitte, ‘Your candidate experience: Creating an impact or burning cash?’

Despite the focus on improving employer branding, organisations have largely failed to develop a compelling Employer Value Proposition - what employers can offer their ideal employees that they will value in exchange for their work. However, these efforts are unfortunately mostly ineffective.

Only 51% of companies have formalised their EVP and only two-fifths of employees feel that their company’s EVP is compelling or differentiated. According to Mercer: “Strengthening your Employer Value Proposition”


A shift to match changing employee values Competitive compensation packages remain crucial. But they no longer cut it on their own.

The employers that have the edge when recruiting have an EVP that includes experiential rewards and meeting an employee’s emotional needs.

But there is a long way to go - making this a ripe opportunity for more visionary employers.

For example, the highest trending experiential reward is flexible working - something we are also seeing from our own candidates, who expect more give and take from employers in return for long hours, hard work or travel. Yet uptake among employers remains low - even when benefits to the employer include increased diversity, loyalty, productivity and engagement.

9 in 10 people now want to work flexibly; which is inversely proportional to the 1 in 10 supply of quality flexible jobs advertised. Timewise study, ‘Flexible Working: A Talent Imperative’

For practical tips on how to determine what your ideal employees value, read: 7 steps to creating a compelling Employer Value Proposition

Upskilling & transferable skills Many employers’ have shifted focus to ‘upskilling’ employees by providing them with additional training to meet changing needs. Doing so not only helps bridge the skills gap, but can increase engagement and loyalty.

Some employers are beginning to recognise that the rapidly accelerating rate of technology means that candidates with a track record of regular upskilling and adapting to new changes are more important than an exact experience match.

CEOs’ top initiatives in Western Europe to bridge the skills gap are retraining/upskilling (44%), followed by hiring from outside their industry (at 21%).

PwC’s 22nd Annual Global CEO Survey 2019

Experiential rewards Enable employees to create better memories inside

& outside of work, without worrying about the costs.

Emotional needs Align people with the organisation’s larger societal purpose and culture, or design jobs that give them purpose. Empower them in their careers.


Procurement & Supply ChainTrends - The Key Drivers

BrexitCustoms checks following Brexit are expected to lead to a pile-up of lorries for 30 miles into Kent. With many consumer goods businesses having pan-European supply chain hubs, planning will become more complex. Fluctuating prices and costs could also mean that existing supplier contracts become unviable and require renegotiation. Like many businesses, many of our clients have therefore been looking to expand procurement, purchasing and supply chain roles to deal with these issues.

The transition to a strategic value functionAn ongoing influencing factor on procurement recruitment is that many businesses are still transitioning this function from a transactional and support role into a strategic, value-adding one that is instrumental to wider business objectives.

Mergers and acquisitions across Manufacturing and FMCG sectors The “combined number of alliances and JVs has increased in the past two years and is now at its highest level since the start of the century”.*

With many markets ripe with disruption, we are seeing an increasing number of mergers and acquisitions taking place, particularly in the FMCG and manufacturing sectors, in order to combine expertise and achieve faster growth and efficiency within their supply chains. This has resulted in an increase in jobs across procurement and supply chain.

The resulting Procurement & Supply Chain Recruitment trends

• Anticipated increase in recruitment rates At Cast UK, our clients have indicated that they anticipate increased recruitment across supply chain and procurement to deal with new skill sets required as a result of Brexit challenges, along with the growth in areas such as FMCG and Manufacturing.

• Influencing and engagement skills in demand The move to a strategic function within procurement means that excellent interpersonal and communication skills, along with an experience of stakeholder engagement, are becoming increasingly important to employers.

• A rise in internal promotion There has been a rise in the number of Procurement/Supply Chain Director level roles being won by internal candidates through promotion, perhaps to save on costs. We are therefore finding that recruitment tends to have been more at a more junior level, although there is definitely still movement at the senior level.

*PWC Study, via Strategic Business


What Employers and Candidates are looking for

Procurement Qualifications• CIPS

Key Skills/Experience• Category management• Analytical / data driven approach, with strong Excel skills• Stakeholder engagement • Negotiating contractual terms to bring spend under contract - including contract drafting, contract negotiation and tendering

Supply Chain Qualifications• N/A

Key Skills/Experience• Strong data and analytical skills, with Excel • Strong communication and stakeholder skills• Customer facing or supplier facing experience is in high demand

Employers

Procurement • Autonomy and freedom to put CIPS theory into practice and test some of the approaches • Many (but not all) are keen to progress into a more strategic role • Procurement function is valued/positioned as a strategic function within the business already

Supply Chain • Job security• Working in a buoyant industry or company where there will be growth and expansion• Salary commensurate with responsibility• Flexible working high in demand - give and take for business travel

Candidates


Salary Banding

ProcurementProcurement Director / Head of £75k+

Procurement Manager £50k - £75k

Category/Commodity Manager £35k - £75k

Senior Buyer £35k - £65k

Buyer £25k - £35k

Junior Buyer £18K - £22k

Supply ChainSupply Chain Director / Head of £75k+

Supply Chain Manager £50k - £75k

Senior Supply Chain Planner £35k - £75k

Supply/Material/Production/Demand Planner £20k - £35k

Please note: The salary bands above are guides only. Job titles are not always reflective of the skills and experience required for a role and salaries also vary by region. We always recommend that you undertake a salary and benefits benchmarking exercise specific to your organisation and roles.


Transport, Logistics & Warehousing Trends - The Key DriversMajor technological advances

68% of transport & logistics CEOs surveyed expect that changes in core technologies of production or service provision will be disruptive to their business* PwC CEO Survey 2018*

Technology is advancing rapidly in this sector in response to a change in customer demands, cost pressures, and environmental & safety regulations.

From advanced telematics systems to IoT sensors, real-time visibility for the consumer and businesses is here. Inventory, goods, people and equipment can all be tracked and automatic scheduling of routes, orders and even vehicle maintenance is now possible. Meanwhile, the future of drones and electric cars are being tested by the major players.

With such fast technological growth, not enough candidates have the skill sets sought by employers. Yet many businesses do not have the skills in-house - or the ability to upskill employees quickly enough.

The long-standing skills gap

The current demand for supply chain professionals is estimated to exceed supply by a ratio of six to one. DHL report “The Supply Chain Talent Shortage: From Gap to Crisis”*

The skills shortage in logistics, transport and warehousing is nothing new - it has simply been widened by the technological advances. There is an ageing workforce, particularly at the management and senior level, with an insufficient talent pipeline to replace them, mainly due to the ‘male and stale’ image and lack of awareness of the career paths available.

Will the rapid rate of technological change start to make these career paths more appealing to the younger generation?

The uncertainty of BrexitThe transport, logistics and warehousing sector paints perhaps the most obvious problem with Brexit. From the warnings of a pile-up of lorries for 30 miles into Kent to the increase in driver shortages and the complex transport planning that will be required to deal with pan-European supply chains - this sector is an enabler that underpins the economy and makes international trade and local delivery of goods possible.

The FTA has sought clarity from the government on a number of issues to ‘Keep Britain Trading’** and has criticised the government’s failure to deliver workable solutions as promised.



The resulting Transport, Logistics & Warehousing recruitment trends

• An increased focus on attracting and retaining the best staff The increasing skills shortage means that businesses are becoming increasingly aware of the need to attract and retain the best staff in order to succeed.

To improve employee retention rates, there is a shift at the senior/management level from hiring those with old-school management styles to hiring those that can demonstrate soft-skills of effective man-management and engagement. Such candidates are therefore highly in demand.

Some employers are starting to offer more flexible working opportunities and seasonal contracts to help attract retirees back into the industry as “Boomerang Workers” so that they can at least retain their skills on a casual basis.

• Beware of buy-back offers Companies are now increasingly making buy-back offers in response to decent employees handing in their resignations. Employers looking to recruit new staff therefore need to be aware of this potential pitfall and have an effective strategy for dealing with buy-back offers.

• In-house recruitment rates increase We are seeing many businesses trying to recruit internally, where possible, to reduce costs. In some instances, this can work. However, the current skills shortage means that, in many instances, this tactic can backfire. Whilst employers may find some success recruiting internally for lower-level roles, at the senior level job boards are much less effective and access to a mix of active and passive candidates is necessary. Whilst such candidates can be found on LinkedIn, many businesses have not effectively engaged with and nurtured potential candidates prior to a job role becoming available.

• Quick learners and adaptable candidates are in demand Businesses still continue to prefer product-specific skills and/or software-specific experience. However, with technology advancing at such as rapid rate, visionary companies are realising that a candidate’s potential and ability to quickly learn is of increasing importance.

*DHL report “The Supply Chain Talent Shortage: From Gap to Crisis” ** FTA: Keep Britain Trading


Qualifications• CPC qualifications are usually needed from Transport Manager level upwards.• Degrees are usually desirable but very rarely requirements.

Key Skills/Experience• Past product experience i.e. working in a warehouse with multi-temp foods/ pharmaceuticals, etc. • Experience of automation or particular WMS/TMS such as JDA, Paragon, Microlise, etc.

I want somebody from...Businesses usually like people who have worked for direct competitors with synergies - e.g. people from B&M like candidates who have worked at ASDA.

Employers

• Progression• Exposure to a different product (food, fashion, e-comm etc)• Higher salary• Job security• Better commute• Better shift pattern• Good culture

C-Suite level:

• Bonus• Flexible hours• Healthcare• Shares

Candidates


Salary Banding

Logistics & Transport Distribution/Logistics/Fleet Director £90k+

Head of Transport/Logistics/Fleet £60k - £80k

Regional/National Transport/Logistics/Fleet Manager £45k - £60k

National Planning Manager £40k - £50k

Distribution/Transport/Logistics/Fleet Manager £40k - £55k

Transport Compliance Manager £40k - £45k

Transport Shift Manager £33k - £40k

Transport Supervisor/FLM/Team Manager £25K - £32k

Transport Planner £25k - £35k

WarehousingOperations/Logistics Director £90k+

Head of Ops/Logistics or Regional GM £60k - £90k

Distribution Centre/General Manager £60k - £80k

Senior Ops/Assistant General Manager £45k - £60k

Operations/Warehouse Manager £35K - £45k

Shift/Shift Ops Manager £32k - £40k

Stock Control (Supervisor/Manager) £25k - £45k

Supervisor/First Line Manager £25k - £30k

Team Leader £22k - £25k



Retail Buying & Merchandising Trends - The Key Drivers

The retail apocalypseThe papers have been full of what seem to be weekly reports of yet another sorry tale of a high street chain closure or company going into administration. From New Look to House of Fraser and Mothercare, it is enough to instil dread in everyone working in the high street.

Until recently, online shopping was seen as the leading cause of the demise of the high street. As consumers favour convenience and what is perceived to be cheaper prices, online sales have continued to increase year-on-year. In October 2018, all non-food related retail had risen by 19.5% from the previous year. However, the pre-Christmas week share drop announcements by Amazon, Boohoo and Zalando show that even popular online retailers are not safe.

The rise of experientialism One contributing factor to the retail crisis is that materialism is slowly being replaced by experientialism. The purchase of goods is slowing down as consumers are now prioritising ‘experiential purchases’ such as eating out, leisure and travel over material ones.

Retailers are therefore trying to create a meaningful relationship between brand and buyer online, using technology to connect with consumers in personalised and unique ways.

Restructuring and redundanciesThe retail crisis has seen a rise in the number of restructuring and redundancies, as retailers look to combine expertise and technological developments to entice consumers back to shopping.

BrexitWhereas Brexit may have been a catalyst for a slowdown in some sectors, in retail it has exacerbated an already fragile sector. Wages have not been rising in line with inflation for some time, but the ongoing uncertainty is now believed to have been a large contributor to a dismal year for offline and online retailers alike.


The resulting Retail Buying & Procurement recruitment trends

• Roles being absorbed The ongoing uncertainty in the sector has resulted in many roles being absorbed by the team when somebody leaves - or businesses promoting from within. This is creating a larger churn for lower-level positions.

• Job security? Depends on the level! In general, we are seeing that those at a senior level (who usually have children and greater financial responsibilities) are favouring stability in the current climate. On the other hand, those in junior roles still favour progression with the excitement and challenge of a new working environment.

This is furthering the trend towards a higher volume of retail recruitment at the lower level and a decrease at the higher level.

• Candidates need to hit the ground running The retail pressure has resulted in an upwards trend of employers looking for people to hit the ground running, instead of considering applicants with transferable skills.



Merchandisers Qualifications• Not generally required

Key Skills/Experience• Experience in a similar environment e.g. fashion / eCommerce / high street• Strong planning, trading and forecasting• Excel• Use of similar merchandising tools e.g. e.g. WSSI or line cards

I want somebody from…The Hut Group’s Trading Executives and Merchandisers are highly regarded and in demand. The staff are seen as being mainly being well educated, highly driven and bright, as well receiving a good grounding from the business.

Buyers Qualifications• Not generally required

Key Skills/Experience• Category experience is always a must• Far East sourcing and product development, depending on the role. • Strong negotiation skills are now highly in demand, as they are key to keeping costs down and protecting margins.

I want somebody from...Supply Planners at Iceland are in demand due to the systems they use.

Employers

Candidates

• Progression• To work with a particular retailer• Job security• Good culture• Commute• Salary

• Bonus• Holidays• Flexible working


Salary Banding

Buying Buying Director £100k+

HOB £70k - £90k

Buying Manager £60k

Senior Buyer £50k - £55k

Buyer £40k - £45k

Junior Buyer £30k - £35k

Assistant Buyer £22k - £28k

Buying Admin Assistant £18k - £19k

MerchandisingMerchandise Director £100k+

HOM £70k - £90k

Merchandise Manager £50k

Senior Merchandiser £40k

Merchandiser £35K

Junior Merchandiser £30k

Assistant Merchandiser £25k

Merchandising Admin Assistant £18k



Empowering you to make the best choices

Candidates Understanding people is at the root of everything we do. We take time to really get to know you to ensure we’re working together to take the next carefully considered step in your career.

We can advise you on your prospects in the market, your worth and all stages of the recruitment process - from interview, to testing and offer handling.

We also pride ourselves on treating candidates with respect. You deserve application updates and constructive feedback on interviews.

Make your next career move an informed one. ARRANGE A CONFIDENTIAL CHATRegister on our online portal: Here orCall us on 0161 825 0825

ClientsEach of our consultants specialises in a particular specialism in a single geographical area – so we know what is happening in your industry, area and targeted talent pool.

We can therefore advise you on what top candidates want from an employer and provide you with the latest salary benchmarking information. And we take it further, by bringing your employer brand to life during the recruitment process.

All alongside a service that includes includes the latest recruitment tools, reducing time-to-hire to just three weeks and a 75% reduction in interviewing time - leaving you time to focus on the bigger picture and day-to-today pressures.

Discover the strategies you need to attract and hire YOUR ideal employees.ARRANGE A FREE HIRING STRATEGY REVIEW Call us on 0161 825 0825

At Cast UK, we believe that candidates and clients alike should be armed with the information and tools to make the best choices.

That’s why we put together this salary guide. We hope you’ve found it useful.

If you need further assistance when looking for your next job move or hire, you’ll find out a little more about how we can help you achieve your goals below.


www.castuk.com London 0208 185 5200, Manchester 0161 825 0825 or Birmingham 0121 222 6444

salary & benefits guide 2019...salary & benefits guide 2019 a guide to recruitment trends,...

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