Procurement pay rises higher than UK average but gender gap continues
Procurement salaries rose for the third year in a row, outstripping the average UK salary increase, according to the latest CIPS/Hays Salary Guide 2017.
“Things are looking good for procurement in general,” said Scott Dance, Hays Procurement and Supply Chain director, speaking at the launch of the guide.
While the UK national average pay increase is 2.2%, for UK procurement professionals the average level of increase was 5.3% this year compared with 5% in 2016. The average salary for all procurement and supply professionals was reported at £44,936.
The results are based on a survey of more than 4,000 UK procurement staff over 25 offices.
This increase reflects confidence in the industry despite economic and political uncertainty, said Dance. “While an increase from 5% to 5.3% doesn’t look like much, when you take into account that the national average is 2.2%, then you’ll realise that it’s a pretty significant rise,” he said.
“In the private sector and professional services sector we’ve seen slightly more increases around 7.5%, so it seems to be a pretty buoyant market.”
According to the report by CIPS and Hays, London workers continued to receive the highest salaries, the most significant pay increases were given between the Professional and Advanced levels, and the role of Buyer was by far the most recruited for.
The number of recipients of a pay increase fell, however, with only 64% of respondents stating they had received one compared to 68% in 2016.
And industry leaders pointed out the gender pay gap as a concern, particularly at senior level.
At the advanced professional level, the average salary for a man was reported at £82,000, compared with a woman’s £65,700 – a 25% diference. The most striking disparity was at the same level in the public sector, where men earned an average 30% more than women, giving a salary of £72,700 for men compared with £56,000 for women.
At other levels the disparity was smaller, between 2-7%, according to Hays. In some roles, the report found women earning more than men: female procurement executives, supply chain planners and assistant procurement/contract officers earned an average 9% more than male equivalents.
The report suggests that an ongoing gender pay gap at a senior level could be attributed to fewer women being recruited. “Organisations need to have a look at their resources planning over the next year to make sure they have a more inclusive and diverse workforce,” said Dance.
The report also showed that on average women were less likely to have received a salary increase at 63% compared to 65% of men.
Andrew Coulcher, director of membership and knowledge at CIPS said that, while the gender gap was closing year-on-year, it was not fast enough.
“Men earn an average of a quarter more than women at an advanced level—that’s a shocking statistic in a profession that prides itself on moving away from the stereotypes of old,” he said.
“Our [CIPS] membership is split 50/50 between men and women, so the profession’s rewards should too, but women were less likely to receive a bonus as opposed to men and less likely to receive a bonus.
“One shining beacon of hope is that at least, on average, the percentage of that bonus was roughly the same—12% of salary.”
The survey also found that an MCIPS qualified employee received an average 22% higher salary than a non-MCIPS qualified procurement professional.
For an FCIPS qualified procurement director, the average pay was 18.5% higher than a non-FCIPS procurement director.
Click through to request a full copy of the CIPS / Hays Procurement Salary Guide and Insights 2017.
|Job title||Average salary||% increase|
|Chief procurement officer||£112,333||4.3%|
|Senior category manager||£58,075||4.8%|