CIPS / Hays salary study shows purchasing salary growth during Covid crisis
The Chartered Institute of Procurement and Supply Chain (CIPS) and Hays Procurement and Supply Chain published its annual salary survey report, finding that supply professionals in North America saw their wages increase 4.6% last year, compared to 3.3% for the national occupational average.
Global salary analysis revealed increases in UK, Europe and Middle East / Asia. This and other results by region can be downloaded for more information.
CIPS and Hays, a specialist in recruiting procurement professionals, interviewed more than 6,000 procurement professionals around the world as part of the online study. The report aims to provide procurement professionals and employers with a benchmark for salaries and bonuses. It also highlights career opportunities and helps people understand perceptions about the industry.
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“The CIPS / Hays report is about more than just salaries,” said Bill Michels, vice president of CIPS Americas, in a press release. “This is valuable reading for any senior executive leading a team, as it provides an insightful profile of the environment in which procurement professionals work. “
The report has broken down salary information into global categories. While wages in North America increased 4.6%, all other regions also saw growth. The UK saw wages increase by 5% and Europe grew by 6%. The regions that recorded the largest increases were the Middle East and sub-Saharan Africa, with increases of 7.9% and 9.7%, respectively.
The role of purchasing on the rise
The results of the survey indicate that the role of procurement in an organization is becoming increasingly important, especially during the massive disruption of the Covid pandemic.
The study reported that 71% of those polled said that perception of sourcing has improved over the past year, a strong sign for the industry.
“It’s very gratifying to see the strong recognition of the value that procurement teams bring to an organization,” Michels said in the release. “For over a year, procurement executives have faced enormous challenges in keeping organizations safe and producing the goods and services the world needs. We can expect this recognition to continue as sourcing shifts from a need to “maintain us at any cost” to “maintain us and manage our costs”. “
In addition to salary increases, the report found that equality, diversity and inclusion have proven to be very valuable in a procurement setting.
A large majority (90%) of survey respondents said that a diverse and inclusive business is a more open and confident place and improves employee retention. Meanwhile, 83% said inclusiveness brings more creativity and innovation to businesses, and 90% of respondents said it would create a more attractive environment for applicants.
“I firmly believe that it is imperative to focus more on ethical purchasing,” said Malcolm Harrison, CEO of CIPS Group, in the press release. “Great strides have been made in raising awareness of ethics in supply chains, but greater recognition of the impact of purchasing on local communities, or the elimination of slavery in supply chains , would resolve unpleasant situations that continue to exist. A simple refocusing on issues of real value to today’s society.
More results beyond compensation
Although the survey had overall positive results, it found that male employees had salaries 15% higher than their female counterparts. It was also difficult for purchasing departments to find talent, with 64% of recruiters saying they had difficulty finding the right person to hire.
Employers rated soft skills, such as communication and relationship management, as in high demand, according to the report:
- Negotiation techniques
- Supplier relationship management
- Management of internal stakeholders
Overall, the survey provided key insights into things that are going well for procurement professionals and areas where they can improve as employees and leaders.
“As the procurement function continues to evolve, organizations will need to re-examine not only its role, but also how it operates and the areas in which its strategic direction needs to be refined,” said Scott Dance, Director of Hays Procurement. & Supply Chain, in the press release. . “For example, when is data being used, where relationships with suppliers can be strengthened and how can innovation be driven in category management. These are just a few of the trends we can expect to see transforming the purchasing function in 2021. ”
Read it “CIPS / Hays North American Salary Survey Report” for more information.