SALARY SURVEY 2015/16 Procurement & Supply Chain

Transcription

1 SALARY SURVEY 2015/16 Procurement & Supply Chain

2 Why PSD Procurement & Supply Chain? We have a team of seven procurement & supply chain recruiters with in excess of 80 years collective experience In the last 12 months we have registered over 1,500 new candidates of which 40% came from referrals There are 26,000 + live procurement candidates on PSD s Procurement & Supply Chain database In 2015 we arranged 384 interviews resulting in 54 permanent and 23 interim placements 60% of the roles that we work on are either retained or on a fully exclusive basis 70% of our work is repeat business resulting from the high quality service and delivery we provide The majority of positions recruited are predominantly filled via search methodology In 2015 we launched our brand new interactive website com maximising our clients exposure, through branding and multimedia functionality PSD have led the market in producing an annual procurement & supply chain salary surveys and interim reports for the last 10 years PSD publish quarterly reviews and market overviews for which we have received positive feedback PSD Procurement LinkedIn group provides relevant news updates and notification of exceptional new procurement opportunities PSD is ISO9001:2008 accredited. This provides assurance that PSD works rigorously to attain the highest quality standard through continuous improvement PSD has been awarded the Investors in People Gold award. This is recognition for the outstanding development programme that we adhere to PSD is a values based organisation. All employees work within our six values; open-minded, accessible, adaptable, committed, partners and successful PSD Manchester donates to a local children s charity Cash for Kids and were awarded the 2015 Key 103 Time to Shine award for Manchester s Most Giving Company PSD has also been honoured with the Payroll Giving Platinum Award by the Charities Aid Foundation for the past two years For a confidential discussion about your requirements or to discuss your career aspirations, please contact Stephen Fletcher, Director, PSD Group stephen.fletcher@psdgroup.com +44 (0) PSD is a leading executive recruitment consultancy

3 Foreword 03 Welcome to PSD s 2015 annual Procurement & Supply Chain Salary Survey, an informative guide to pay and reward across all sectors of the industry. We are delighted to report that this year s survey has been the most successful to date with over 3,000 completed questionnaires received. Traditionally we have concentrated heavily on executive and management roles within the procurement field. Focussing on those individuals that drive the development of procurement and supply chain within leading global organisations and effective SMEs. This year has perhaps not maintained the initial promise of high optimism that the first six months produced. This mirrors the pattern that witnessed in 2014 and it is for the identical same reasons around the sensitivity and nervousness of the overall global economy that once again this year has not lived up to expectations. Similar to 2014, the UK s economy remains a strong prospect when compared to most other countries; although the spluttering gains in the US do finally now seem to be gathering momentum. We have however been very fortunate to once again, successfully work on a number of major recruitment projects within the Energy and Utilities, Construction and Facilities Management sectors. Interestingly the Financial Services and Banking arena is awakening once again with PSD placing several key hires across this sector. Reflecting on last years results our prediction of optimism, peppered with realism was a sensible one given that there has been a stagnation of the economy across Europe including the continued economic crisis in Greece. The Bank of England has had to cut its last years growth rate prediction from 2.9% to the 2.5% level we were given in the summer. Both the CBI and the Bank of England remain muted about any significant improvements happening in the short to medium term. At the time of writing this foreword the European Central Bank is re-examining its (Quantitative Easing Programme) which is a strong indication that the eurozones economic recovery remains decidedly lacklustre. So the growth in the UK is still there but not at the pace to trigger the wholescale upskilling within procurement teams across the country Comparable to 2014 we have experienced the largest increase across the Financial Services & Banking sector, and not surprisingly these roles have offered the most competitive salaries. This has marked a welcome return to retained assignments for several of the leading utility companies all of whom have ongoing significant development programmes; requiring considerable input from procurement. In conclusion 2015 has produced survey results comparable to those of 2014; the only slight difference is that the whole year has remained consistent in terms of anticipation and expectation. This will hopefully provide us all with a stronger base for growth over the next few years. The overriding theme is that the pockets of optimism which keep springing up are interspersed with that underlying premise that we are by no means through the challenging economic climate just yet. Stephen Fletcher Director, Procurement & Supply Chain Contents 03 Foreword 04 PSD Overview 05 PSD Procurement & Supply Chain 06 Salary Survey Methodology 07 Analysis 08 Average Salaries by Sector 09 Survey Questions 16 Recent Permanent Placements 17 Permanent Contacts

4 04 PSD: An Overview PSD is a leading international board, management and executive recruitment consultancy operating across the UK, Europe and Asia Pacific region. The PSD Group was founded in 1991 through the acquisition and integration of a number of specialist recruitment consultancies. Operating in specific markets for over 40 years with in excess of 300 employees in seven offices across Europe and Asia. The strength of our business lies in the dedicated approach and expert knowledge across specialist sectors and functional disciplines. Each division of PSD is wellestablished as a market leader of recruitment services at the mid to senior level. Our Specialist Practices: Board Practice Accountancy, Finance & Audit Compliance & Risk Customer Contact Digital & E-Commerce Hospitality & Retail Operational Management HR Marketing Institutional Investments Procurement & Supply Chain Sales & Business Development Technology & Change Recruitment Services All consultants are subject matter experts in their chosen fields and are fully trained in candidate management, executive search, advertised selection, file search and contracting. This ensures that they are in the strongest position to recommend solutions that are appropriate to the individual needs of candidates and clients. The highly specialist approach enables PSD consultants to understand needs, identify appropriate roles and suggest the best talent quickly whether for single appointments or large-scale assignments. In the past five years PSD has successfully completed assignments in 75 different countries. Our People Standing out in the recruitment market is never easy; most consultancies offer similar services. However, at PSD the key point of difference is the quality of the people. All PSD consultants have the skills and knowledge to provide candidates and clients with an exceptional level of service. Our Purpose The principle objective is to be recognised as the leading specialists within PSD s chosen markets, with an outstanding reputation for the quality and effectiveness of services. The priority is building strong partnerships with our clients and candidates. PSD is committed to improving performance and consistently strives as a business to do this. The culture is based upon core values, which promote effective teamwork, open communication and a sense of pride in all aspects of our business. Commitment to Quality PSD became ISO accredited in 1995 and continues to maintain this valued accolade. It provides all our customers with assurances of a consistency of service that is audited on a regular basis. PSD has recently been awarded Gold status by Investors in People. This was achieved through extensive training and development of all employees. In summary PSD is recognised for its high standard of services and the strong calibre of consultant operating across the business. At PSD our mission is to identify and recruit exceptional talent that will positively impact upon our clients business.

5 Procurement & Supply Chain 05 PSD is a major player in the recruitment of individuals within Procurement & Supply Chain. We place management, support functions and board level candidates in a variety of specialist sectors. Roles We Recruit Procurement Director Supply Chain Director Head of Procurement Senior Procurement Manager Procurement Manager Senior Supply Chain Manager Supply Chain Manager Contracts Manager Commercial Manager Typical salaries 50, ,000. Specialisation Each consultant works in a sector specialist with geographic responsibility for the whole of the UK. This enables a greater understanding of our client s requirements. Recruitment Services PSD offers the complete range of recruitment solutions to clients. Each has an important role in securing the ideal candidate Executive Search Advertised Selection Contingency Interim & Contracting Board Practice Online Advertising & PR PSD has a strong online corporate identity. We advertise all our roles on procurement & supply chain websites and executive-level jobsites. All our adverts appear with logos in our distinctive PSD colours. The PSD logo acts as a magnet to attract high calibre candidates. We have also set up a LinkedIn group: Procurement & Supply Chain Professionals UK. In addition we take active participation in conferences, industry events and exhibitions; ensuring that we are continually extending our contact network. PSD Website and Social Media The PSD website plays a vital role in attracting candidates both through positions advertised, published articles, information and news. The power of the brand is recognised and trusted with the most senior of candidates whilst attracting a continual flow of interesting new individuals. This combined with the specialist sector communities and consultants own networks, acts as an extremely powerful aid in attracting a steady flow of high calibre individuals to PSD. Social media platforms are a useful tool in helping us to develop and maintain candidate networks. This is primarily through the resourcing of candidates and the creating of communities. PSD consultants are trained in all aspects of social media and their specialist industry knowledge enables them to select the most effective platforms for their niche markets. Our Specialist Functions: Banking & Financial Services Business & Professional Services Energy & Utilities FMCG Industry Leisure & Travel Media Public Sector and Not for Profit Pharmaceuticals & Health Care Property and Construction Retail Technology

6 06 Salary Survey Methodology We have been successfully publishing our salary survey for over 10 years; using all of our specialist knowledge to ensure the information we collate is presented in a useful and easily accessible format. PSD actively works to identify the most talented procurement professionals and deliver outstanding customer service The results are assembled from a comprehensive attitudinal analysis extracted from PSD s own database of 18,000 and additional 7,000 procurement professionals on LinkedIn. The figures specified refer to basic salaries, which we find is the best indicator to allow an accurate comparison. We have reviewed previous salary surveys to highlight trends with regards to remuneration, including car allowance and bonus schemes. Individuals were also asked to give their opinion on their career prospects and also professional qualifications. We suggest that total packages are usually calculated by adding 30 to 50% on top of basic salaries, but it is not uncommon for the more senior candidate to be have a package of up to 100% of their basic salary. For these individuals, a large portion of this will comprise of performance related pay. This document will focus on the main findings compiled from all respondents; with a further breakdown of average salary levels within our key specialist sectors. This provides a useful guide allowing for sector, function and geographical comparisons. Your feedback is always welcomed as we use it constructively to improve the content, presentation and structure of the survey. Previous feedback from clients and candidates indicate that our salary surveys have been an invaluable resource for anyone connected to the procurement industry. If you would like to have a more in-depth conversation about pay and reward please do not hesitate to contact a member of the team. Expert knowledge of our specialist markets and our precise search techniques ensure that we can adapt to the fast changing and complex needs of our clients and candidates.

7 Salary Survey Analysis 07 In 2015 there has been a healthy sense of positivity with strong salary increases and rising bonus levels, which is encouraging news for the sector. There were salary increases across the board with two thirds enjoying an increase of up to 10%. The number of people whose salary increased from 1-10% stayed steady at 63% compared to The number of individuals whose salary remained the same rose slightly at 25% compared to last year. This certainly does not dampen the general feeling of optimism across the industry. The survey showed 62% of procurement professionals are confident that their salary will increase in the next 12 months, which was the exact same level as last year. We also witnessed a noticeable rise in the number of people receiving increases of 10% and above, compared to It appears that employers are consistently handsomely rewarding employees well for strong performances. The number of people receiving the average bonus of 1-20% remained the same at 55%. However, there was an increase in bonuses at the 20%+ level compared to Procurement executives are able to demonstrate their value clearly, and so a rise in bonus levels is never surprising and reflects consistent performances from high calibre individuals. The number of respondents who did not receive a bonus, dropped compared to 2014 which is encouraging. 86% of respondents reported that they are very positive or positive about their employment prospects. This is an increase of 10% compared to 2014 which is pleasing. Respondents also feel assured that there will be attractive options available should they decide to move in the short to medium term. Flexible working arrangements have been marked as the most important factor, replicating what we saw last year. This was followed closely by organisations offering the opportunity to earn performance related bonus. People rated pension contribution the third most important, not a great surprise given the governments pension reform plans. The flexible benefits allowance is the least important aspect of a package from this years survey. Less people are receiving a car allowance at 43% and it also appears that the bandings have dropped in the 3000 to 6000 bracket but increased in the 9000 category. It is now suggested that a package with the car allowance is less of a priority and most would prefer this to be rolled into a basic salary. This increases the pension and bonus multiples which appears to be more appealing to everyone. In summary, in 2015 there has been a level of positivity with moderate salary increases and rising bonus levels which is encouraging news for the sector. The industry has been steady and reflects a confidence of capability to deliver. We can see this continuing into 2016 as procurement professionals find even more ways to deliver a broader commercial proposition to stakeholders. Christian Shawcross Director, Procurement & Supply Chain A combination of best-in-class search techniques, indepth industry knowledge and extensive contact networks have helped us build an outstanding reputation for identifying and attracting the very best talent

8 08 Average Salaries by Sector Job Title Buyer/Senior Buyer Manager (Category/ Procurement/ Supply Chain) Head of (Category/ Procurement/ Supply Chain) Director/CPO Banking & Financial Services 48K 70K 90K 160K Business & Professional Services 43K 65K 80K 130K Energy & Utilities (inc. Oil & Gas) 43K 75K 90K 140K FMCG 40K 55K 80K 100K Industry 33K 55K 70K 110K Leisure & Travel 38K 55K 70K 110K Media 45K 75K 95K 110K Public Sector & Not for Profit 35K 60K 75K 120K Pharmaceuticals & Health Care 45K 70K 80K 140K Property & Construction (inc FM) 46K 70K 80K 140K Retail 35K 66K 80K 105K Technology 50K 75K 90K 120K Please note these results are average salaries based on all respondents from across the UK. For a more comprehensive break down of results for each sector and location please contact the team listed at the back of this report. The PSD brand continues to attract high calibre candidates with over 1,500 new CVs registered in the last 12 months.

9 09 Q1 What is your current basic salary ( )? Buyer/Senior Buyer Manager (Category/Procurement/Supply Chain) 55K- 92K 60K 50K 40K 35K- 48K 32K- 47K 32K- 45K 35K- 50K 90K 80K 70K 60K 50K- 78K 58K- 78K 50K- 80K 30K 50K 20K 10K 40K 30K 20K 0K North Midlands South West London & (inc. NI & Scotland) South East 0K North Midlands South West London & (inc. NI & Scotland) South East Head of (Category/Procurement/Supply Chain) Director/CPO 120K 72K- 110K 68K- 105K 85K- 115K 225K 92K- 215K 100K 75K- 82K 180K 85K- 150K 82K- 148K 80K 60K 135K 92K- 105K 40K 90K 20K 45K 0K North Midlands South West London & (inc. NI & Scotland) South East 0K North Midlands South West London & (inc. NI & Scotland) South East PSD have strong industry knowledge and are extremely well connected. They are always my first point of reference.

10 10 Q2 What is the value of your company car or car allowance? Q3 What is your maximum bonus opportunity? 50% 40% 30% 20% 10% 0% 0 Below y % y Below % y % y % y % y 1-10% % y 11-20% % y 0% % y 20-30% % y 30% % Whether as a candidate or recruiter I would happily work with PSD again and I would have no hesitation in recommending them to others.

11 11 Q4 How much has your basic salary increased in the last twelve months? Q5 Do you expect your salary to increase over the next twelve months? 60% 48% 36% 24% 12% 0% 0% 1-5% 6-10% 11-15% 15%+ y 0% % y 1-5% % y 6-10% % y 11-15%...4.4% y 15% % y Yes % y No % y Don t Know % PSD always finds the time to give you the best possible advice so always my first port of call.

12 12 Q6 Please rank the additional benefits in order of importance to you Q7 How did you secure your last permanent position? 30% 24% 18% 12% 6% 0% Recruitment Agency Headhunted Direct through Employer Own Linkedin Network Online advert Other y Ability to work from home / flexible hours y Bonus opportunity y Pension y Generous holiday allowance y Car / Car Allowance y Flexible benefits allowance y Recruitment Consultancy % y Headhunted % y Direct through Employer % y Own Network...8.2% y LinkedIn...5.4% y Online Advert...5.4% y Other...3.4% Excellent customer service, I would not hesitate to recommend PSD to anybody looking to secure a new role.

13 13 Q8 What is your length of service with your current company? Q9 Should you decide to move, how confident do you feel about your employment prospects? 50% 40% 30% 20% 10% 0% Very Positive Positive Unsure Negative Very Negative y 1-2 years % y Under one year % y 3-5 years % y 6-9 years % y 10 years or more % y Very positive % y Positive % y Unsure % y Negative...1.9% y Very negative...0.6% PSD is the best recruitment organisation I ve worked with throughout my career. Thoughtful, informative and on top of the entire recruitment process.

14 14 Q10 Are you considering a move at the moment? Q11 What are your key drivers when searching for a new opportunity? 100% 80% 60% 40% 20% 0% Salary Location Chall. WLB CP Ben. Flex. Bonus Sec. T&D Other y Yes, proactively looking % y Yes, passively, if the right opportunity came along % y Interested in hearing what s around % y No % y Basic Salary % y Location % y Challenging role / projects % y Work-life balance % y Career progression % y Benefits package % y Flexible working arrangements % y Bonus % y Job security % y Training & development % y Other...2.6% PSD stand out in a very busy marketplace for their knowledge, ability to identify quality talent and their straight forward approach.

15 15 Q12Q13 Which job boards, websites or social media do you use to search for jobs? Do you think CIPS is still relevant to the Procurement profession? 88% 66% 44% 22% 0% Link SM SCR Job TJ Reed Mon EA EOTW Other Tel Guar Twit y LinkedIn % y Supply Management % y Supply Chain Recruit % y Jobsite % y Total Jobs % y Reed % y Monster % y Exec-Appointments % y Executives On The Web % y Other % y Telegraph Online...8.2% y Guardian Online...5.8% y Twitter...1.9% y Yes % y No % PSD consistently demonstrate detailed insight into specific roles, understanding both the wider industry and specific client needs.

16 16 Recent Permanent Placements At PSD, we are proud to offer the highest level of service to our clients and candidate Some of our recent assignments include: BANKING & FINANCIAL SERVICES Leading Investment Bank VP Software Sourcing 87,000 Global Financial Services Organisation Associate Director 85,000 Global Payments Procurement & Supplier Management 90,000 Leading Retail Bank Sourcing Business Partner 60,000 European Investment Bank Sourcing Manager Consultancy, Singapore 180,000 BUSINESS & PROFESSIONAL SERVICES Global Consultancy Senior Director 142,000 Global Investment Company Associate Director 85,000 IT Services / Outsourcing Organisation Category Manager 60,000 Leading Boutique Consultancy Managing Consultant 80,000 ENERGY & UTILITIES International Energy Provider Head of Corporate Services Energy Provider Category Manager, HR & Professional Services Energy Provider Procurement Consultant LEISURE & TRAVEL Aviation Organisation Head of IT Strategic Sourcing 115,000 Travel Company IT Procurement Contracts Manager 62,000 Leading Hotel Group Head of Procurement 110,000 RETAIL National Retail Property Procurement Manager 60,000 PROPERTY & CONSTRUCTION FTSE 250 Construction Company Subcontract Performance Manager 42,000 FTSE 250 Construction Company Head of Supply Chain 85,000 Rail Organisation Senior Procurement Manager, Routewide Logistics 85,000 MEDIA Boutique Media Organisation Procurement Manager 70,000 Media Advertising Company Procurement Manager 67,500 TECHNOLOGY FTSE 100 Technology Company Senior Procurement Manager 75,000 International Telecoms Company Procurement Manager, Telco 72,000 Our data confirms that using a recruitment consultancy still remains the best method of securing a new role and is likely to result in an enhanced remuneration package.

17 17 Permanent Contacts Stephen Fletcher Director Christian Shawcross Director Petal Peters Consultant Matt Hanley Consultant PSD Abbey House, 2nd Floor 74 Mosley Street Manchester M2 3LW +44 (0) PSD 62 Queen Street London EC4R 1EB +44 (0) The PSD Procurement team focuses on mid to senior level appointments offering a full range of recruitment services.