Survey finds skilled trained professionals with MCIPS in the UK earn 17% more
The findings from The Chartered Institute of Procurement & Supply (CIPS) are based on research conducted in September 2019 as 5135 respondents including supply chain managers in the UK around the world contributed to the CIPS/Hays Procurement Salary Guide and Insights Report which evaluates a range of issues in procurement. The report gives insight into the perceptions of procurement, and benchmarks salaries and bonuses for different roles. The survey also highlights career aspirations and offers advice on how to attract the best talent in the profession across sectors and across the world.
As trained and skilled professionals continue to be in short supply, MCIPS professionals in the UK collectively reported higher salary levels of 17% more than buyers without membership of CIPS. MCIPS denotes an individual who has achieved an internationally-recognised award which represents the global standard for the profession. The average pay rise amongst procurement professionals in total, was 4.9% compared to the national average of 3.4%, so MCIPS candidates received a significantly higher salary reward.
The average salary for all procurement and supply professionals was £48,415 in the UK. MCIPS professionals received an average of £58,532 compared to non-MCIPS at £50,221.
Looking at the regional statistics, London came out top with the highest salaries and average of £63,731, with £48,087 in Scotland and £38,481 in Wales and £38,686 in Northern Ireland.
The private sector offered the highest percentage rise in salaries and 75% of professionals in the private sector received a pay rise (up 3% from last year). The not-for-profit sector was close behind with 67% of professionals receiving a pay rise. In the private sector, the professional and business sectors had the biggest average pay rise as a percentage of salary at 6.1%, with manufacturing and engineering the lowest at 4.8%. The report has further breakdowns in the private sector and across the public and not-for-profit sectors.
In 2019, it was the private sector that fought to retain talented professionals by offering higher salaries and pay rises compared with the public sector, particularly at the very senior and very junior levels. The average in the private sector was £67.4k, compared with £57.5k in the public sector and £54.9K in not-for-profits.
The perception of the value of procurement and supply chain management is rising as 70% of those surveyed say the profession’s reputation has improved and equally across all the sectors (private 70%, public 72%, not-for-profit 71%). However, challenges still exist as 50% of those surveyed in the UK and in all sectors said that procurement was still not seen as a valued strategic partner in their business or organisation.
For the private sector managing risk in their supply chains was the biggest challenge (51%) and the changing EU regulations was the top difficulty faced by the public sector (56%) and the not-for-profit sector (64%).
As businesses looked for more skilled and experienced employees to manage supply chains ethically and efficiently, soft skills were increasingly in demand. For all senior levels, influencing capabilities was the top skill required by employers (88%) in the UK. At advanced professional level, influencing was first at 88% and leadership came a close second at 86%. At professional level, influencing was 84% and communications skills 83%. At less senior levels, operations managers were required to have strong communication skills (81%), supplier relationship management capability at 80% and negotiation 79%. At tactical levels communication was the top skill at 78%.
These soft skills are increasingly known as ‘behavioural procurement’. Derived from behavioural economics, it captures known and new skills critical to the modern procurement and supply chain professional. This includes emotional intelligence, active listening skills, effective communication and applied cognitive psychology, amongst others.
In terms of equality, there was a narrowing in the gender pay gap at advanced level of 2% compared to the previous year but more efforts to be made to redress the imbalance. The gap at this level remains at a shockingly high 33% between men and women. There was also a significant difference between men and women in pay rises in 2019.
- Advanced professional – 81% of men received a rise compared to 70% of women
- Professional – 78% of men received a rise compared to 77% of women
- Managerial – 77% of men received a rise compared to 67% of women
- Operational – 71% of men received a rise compared to 67% of women
- Tactical – 67% of men received a rise compared to 65% of women
More statistics on salaries and gender, by sector and seniority in the full report.
Just over half of the survey respondents (54%) were eligible to receive a bonus. The average increase based on salary:
- Advanced professional – 6.2%
- Professional – 8.7%
- Managerial – 8.1%
- Operational – 6.3%
- Tactical – 5.9%
The differences based on gender continued when bonuses were awarded. 50% of men received a bonus compared to 36% of women, and when it came to eligibility, more men (61%) than women (47%) were eligible to receive a bonus.
With other benefits, flexible working came out top as the top desired benefit for both men and women and across all sectors (44%) and the most offered. Working from home came next at 41%, private medical insurance was 39% and company car or allowance at 32% were the next in line as desired rewards.
Malcolm Harrison, Group CEO, CIPS said, ”With 17% more for MCIPS professionals, this means that talent is also being recognised. Therefore, I would urge all our professionals to keep striving and keep training and maintain their up-to-date knowledge to become Chartered professionals and prove those rewards are well-deserved. By demonstrating their relevance not only to their peers, the businesses they work for, and even the profession itself, the impact from highly-skilled professionals will be felt far and wide.
“Potentially, and collectively, we can make a difference to economies and even the public good; by being the best professionals, with the strongest ethics and bringing transparency and excellence to supply chains.”
Scott Dance, director of Hays Procurement & Supply Chain, said: “The events of the opening few months of 2020 have been unprecedented, leaving many professionals and organisations to adapt to a new way of working and to rapidly changing situations. One thing the Covid-19 crisis has allowed procurement and supply chain teams to demonstrate is just how invaluable their role is in keeping vital services across the world afloat, including healthcare, social care and food supply chains to name just a few. As we enter into the new era of work, this importance will continue to develop.
In our ‘new normal’ world it’s been shown that hiring and onboarding procurement professionals can continue in a virtual way, so with skills shortages still being widespread, those employers who are carrying on with their recruitment plans to fill skills gaps now will be in the best position as we transition to the other side of the pandemic.
A high value will continue to be placed on talented professionals, and we would expect this trend to continue in the next year as the procurement and supply professions continue to play an important role during the Covid-19 crisis and beyond.”
The number of procurement and supply chain professionals around the world is expanding. Find out more from the CIPS website and to download the CIPS/Hays Procurement Salary Guide and Insights Report 2020.