Procurement pay races ahead  

Salary packages for procurement executives are rising at a rate that is significantly higher than the national average as a shortage of top-quality candidates puts a high premium on specialists, according to Purcon’s latest analysis of remuneration trends.

Our figures reflect not only a growing recognition of the importance of procurement to business success but also a better understanding of procurement in general: companies are now demanding candidates with more specific expertise, pushing up their pay.

Our latest bi-annual survey, which covered more than 2,200 purchasing executives, shows that pay is rising fastest for middle and senior managers: top executives enjoyed an 8.0% rise over a 12-month period, with an increase of 8.7% for middle managers.

But the news is also good at the bottom of the chain, where pay rose by 4.4% in the same period.

The increases point to a higher profile for procurement executives: while the profession is still not particularly well represented at board level, this too has started to change. Many executives report either to the board or to the next layers of management.

If we add to that the fact that the profession has been given a huge boost by media exposure and the introduction of new training schemes and related degrees, the overall picture is extremely encouraging.

Purcon Survey Results

Our survey backs earlier findings that the candidates who are able to command the highest salaries have one or more of the following assets: proven experience of strategic sourcing; strong stakeholder management skills and experience of corporate indirects.

It also indicates that procurement executives working in the financial services and pharmaceuticals sectors still lead the way when it comes to remuneration. Currently in highest demand are professionals working in Human Resources, Marketing, Outsourcing, e-procurement and IT.

Lastly and perhaps not surprisingly, London and the South East remain ahead in terms of pay packages, but the Midlands is going some way to catching up.

The current edition of Purcon’s Salary Survey is available now at £150, or at the discounted price of £250 for an annual subscription that includes two editions per year. Order one here.