salary survey 2015/16

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SALARY
SURVEY
2015/16
Procurement & Supply Chain
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 www.psdgroup.
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
[email protected]
+44 (0) 161 234 0394
www.psdgroup.com
PSD is a leading executive recruitment consultancy
03
Foreword
Permanent Salary
Survey 2015/16
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.
the summer. Both the CBI and the Bank
of England remain muted about any
significant improvements happening in
the short to medium term.
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.
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
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
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
04
Permanent Salary
Survey 2015/16
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.
Procurement
& Supply Chain
05
Permanent Salary
Survey 2015/16
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 - £200,000.
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
06
Permanent Salary
Survey 2015/16
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.
Salary Survey –
Analysis
07
Permanent Salary
Survey 2015/16
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 2014. 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 2014. 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 2014. 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
08
Permanent Salary
Survey 2015/16
Average Salaries by Sector
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
Job Title
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.
Permanent Salary
Survey 2015/16
09
Q1
What is your current basic salary (£)?
Buyer/Senior Buyer
Manager
(Category/Procurement/Supply Chain)
£60K
£90K
£55K-£92K
£50K
£35K-£48K
£35K-£50K
£32K-£47K
£32K-£45K
£50K-£78K
£58K-£78K
£50K-£80K
South West
London &
South East
£80K
£70K
£40K
£60K
£50K
£30K
£40K
£20K
£30K
£10K
£0K
£20K
North
Midlands
(inc. NI & Scotland)
South West
London &
South East
Head of
(Category/Procurement/Supply Chain)
£120K
£72K-£110K
£85K-£115K
£68K-£105K
£100K
£0K
Director/CPO
£92K-£215K
£225K
£180K
£75K-£82K
North
Midlands
(inc. NI & Scotland)
£85K-£150K
£82K-£148K
£80K
£135K
£92K-£105K
£60K
£90K
£40K
£45K
£20K
£0K
North
Midlands
(inc. NI & Scotland)
South West
London &
South East
£0K
North
Midlands
(inc. NI & Scotland)
PSD have strong industry knowledge and are
extremely well connected. They are always my
first point of reference.
South West
London &
South East
10
Permanent Salary
Survey 2015/16
Q2
Q3
What is the value of
your company car or
car allowance?
What is your maximum
bonus opportunity?
50%
40%
30%
20%
10%
0%
£0
Below
£3000
£3000£5999
£6000£8999
£9000+
y £0......................................................................................43.0%
y Below £3000........................................................................3.2%
y £3000-£5999.....................................................................24.8%
y£6000-£8999.....................................................................22.9%
y£9000+................................................................................6.0%
y1-10%................................................................................30.4%
y 11-20%..............................................................................24.8%
y0%.....................................................................................18.4%
y 20-30%..............................................................................17.4%
y 30% +..................................................................................9.0%
“Whether as a candidate or recruiter I would
happily work with PSD again and I would have no
hesitation in recommending them to others.”
Permanent Salary
Survey 2015/16
Q4
How much has your basic
salary increased in the last
twelve months?
11
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%.....................................................................................25.4%
y 1-5%..................................................................................52.6%
y 6-10%................................................................................11.0%
y 11-15%................................................................................4.4%
y 15% +..................................................................................6.6%
yYes.....................................................................................61.6%
yNo......................................................................................21.8%
y Don’t Know........................................................................16.6%
“PSD always finds the time to give you the best
possible advice so always my first port of call.”
12
Permanent Salary
Survey 2015/16
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%
y Ability to work from home / flexible hours..............................37.0
y Bonus opportunity.................................................................24.6
y Pension.................................................................................21.3
y Generous holiday allowance....................................................9.2
y Car / Car Allowance................................................................4.5
y Flexible benefits allowance......................................................3.4
Recruitment Headhunted Direct
Own
Linkedin
Agency
through Network
Employer
Online
advert
Other
y Recruitment Consultancy...................................................27.3%
y Headhunted.......................................................................27.0%
y Direct through Employer.....................................................23.4%
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.”
Permanent Salary
Survey 2015/16
Q8
What is your length of
service with your current
company?
13
Q9
Should you decide to
move, how confident
do you feel about your
employment prospects?
50%
40%
30%
20%
10%
0%
y 1-2 years............................................................................25.3%
y Under one year...................................................................23.8%
y 3-5 years............................................................................22.0%
y 6-9 years............................................................................15.4%
y 10 years or more................................................................13.5%
Very Positive
Positive
Unsure
Negative
Very Negative
y Very positive.......................................................................36.7%
yPositive..............................................................................49.8%
yUnsure...............................................................................10.9%
yNegative...............................................................................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
Permanent Salary
Survey 2015/16
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
y Yes, proactively looking......................................................20.2%
y Yes, passively, if the right opportunity came along..............38.0%
y Interested in hearing what’s around....................................21.9%
y No......................................................................................20.0%
CP
Ben.
Flex. Bonus Sec. T&D Other
y Basic Salary.......................................................................85.2%
y Location.............................................................................62.0%
y Challenging role / projects..................................................60.5%
y Work-life balance................................................................60.5%
y Career progression.............................................................58.4%
y Benefits package................................................................56.9%
y Flexible working arrangements...........................................45.3%
y Bonus................................................................................43.3%
y Job security........................................................................31.8%
y Training & development......................................................22.5%
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.”
Permanent Salary
Survey 2015/16
Q12
Which job boards,
websites or social
media do you use
to search for jobs?
15
­­­­Q13
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.............................................................................87.3%
y Supply Management..........................................................49.0%
y Supply Chain Recruit..........................................................28.8%
y Jobsite...............................................................................27.7%
y Total Jobs..........................................................................24.7%
y Reed..................................................................................24.5%
y Monster..............................................................................17.8%
y Exec-Appointments............................................................15.7%
y Executives On The Web.....................................................12.3%
y Other..................................................................................11.0%
y Telegraph Online..................................................................8.2%
y Guardian Online....................................................................5.8%
y Twitter..................................................................................1.9%
yYes.....................................................................................63.4%
yNo......................................................................................36.6%
“PSD consistently demonstrate detailed insight
into specific roles, understanding both the wider
industry and specific client needs.”
16
Permanent Salary
Survey 2015/16
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
PROPERTY & CONSTRUCTION
International Energy Provider
Head of Corporate Services
Energy Provider
Category Manager,
HR & Professional Services
Energy Provider
Procurement Consultant
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
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
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.
Permanent Salary
Survey 2015/16
17
Permanent Contacts
Stephen Fletcher
Christian Shawcross
Director
[email protected]
0161 234 0394
Director
[email protected]
0161 234 0331
Petal Peters
Matt Hanley
Consultant
[email protected]
0161 234 0313
Consultant
[email protected]
0161 234 0376
PSD
Abbey House, 2nd Floor
74 Mosley Street
Manchester
M2 3LW
+44 (0)161 234 0300
PSD
62 Queen Street
London
EC4R 1EB
+44 (0)207 970 9700
The PSD Procurement team focuses on
mid to senior level appointments offering
a full range of recruitment services.
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