CIPS has published its Procurement Salary Guide and Insights report for 2018. The findings of the report will be of undoubted interest to procurement professionals, CPOs and organisations looking to hire dedicated and suitable staff.
Demand for procurement professionals
The report shows that procurement recruitment should expect a boost in 2018, as talented and experienced procurement professionals are increasingly sought-after. The demand is being led by CPOs, which are finding it more difficult to get the best talent and many have stated that they are unable to find procurement professionals with the ideal soft skills.
This is why professionals looking to work in procurement should not only hone their knowledge of the industry and supply chain management, but also other attributes such as their critical thinking skills, their determination and self-awareness.
Salary prospects in 2018
The CIPS salary trends also show that procurement professionals have recently enjoyed a salary hike. Nearly 68% of professionals have received a salary increase of 5.1%, more than 4% higher than the amount that procurement staff received in 2017
It also appears that organisations value procurement-related certification. Professionals with MCIPS certification tend to receive a salary that is 12% higher than those who do not have this qualification.
When it comes to average pay across the country, London leads the way with sourcing professionals based in the city drawing the highest salaries. However, it is interesting that regions outside of London are also showing a high increase in salaries. The Midlands and North West have seen the largest salary increases for procurement professionals which is partly due to the fact that organisations are looking to expand their operations outside of London.
Fall in employers
There appears to be a reduction in the number of companies looking to hire new procurement staff. The number now stands at 60%, which is 10% less compared to 2017 and 4% less than 2016. This reduction should not spell doom for procurement, however, as experts reckon that organisations are focusing on talent and experience rather than increasing procurement headcount.
Even though the UK is leaving the European Union, procurement recruitment has not diminished. Emphasis is now on hiring professionals with the right talent and experience. However, organisations are still struggling to offer the best package to attract and retain candidates. The CIPS report suggests that organisations should customise packages based on employee age, gender and needs rather than creating a single package for all procurement professionals.
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