Purchasing & Supply Rewards - 2014 Summary of Results Introduction To collect data for the latest Purchasing & Supply R wards survey, questionnaires were emailed to around 16,000 members of the Chartered Institute of Purchasing & Supply. Around 650 were returned, checked and used in the survey. To this substantial body of data was added appropriate and matching data from the Croner Reward pay database, taken from Croner Reward s other surveys. The total data analysed in the survey was 2,548 jobs from around 830 organisations. The data was collected between October and December 2013 and the survey was published in March 2014. Job Records by Region 224 239 220 70 162 Eastern Counties London North East 273 North West Northern Ireland Scotland 475 South East South West 382 Wales West Midlands 364 63 355 300 364 Job Records by Company Size - Turnover 23 72 42 104 Up to 1M 140 1M to 3M 3M to 10M 282 10M to 20M 20M to 50M 50M to 100M 100M to 200M 200M to 500M 272 500M- 1bn 1bn- 10bn Over 10bn 311
Key Findings Pay awards for purchasing professionals averaged 2.0 in 2013 and 26 had a pay freeze or pause. Senior and middle ranking purchasing managers are now more highly paid than marketing, sales, HR, IT and finance. Purchasers who are members of The Chartered Institute of Purchasing & Supply (CIPS) can expect to earn as much as 2,200pa more than non-members. 49 of purchasing professionals reported that they had good or excellent job satisfaction. A third of our respondents are actively seeking to move job. Sample Profile 26 London and South East 72 Private Sector 74 Working in organisations with over 50m turnover Pay Increases and Forecasts On average, pay settlements during 2013 were 2.0, in line with the average for all functions. The average across the board increase for all purchasing professionals in this survey was 2.0 and this includes 26 of our sample who received a pay freeze or pause. The average award when we exclude pay freezes is 2.3. In the private sector, 14 of our respondents received a pay freeze, but this figure was 32 in the public sector. Forecasts for pay awards for the coming year are 2.5. 20 of respondents are forecasting a pay freeze although 51 are forecasting an increase of 3 or more.
Year-on-Year Comparisons The year-on-year increase for Purchasing and Supply Middle Managers is 3.8 (The following figures reflect changes in basic earnings, not just pay settlements referred to above.) Median basic pay for head of function and senior managers has dropped slightly this year, whilst pay for middle managers and below has either risen or stayed the same. YEAR-ON-YEAR INCREASES Job Level Basic Salary 2014 Basic Salary 2013 Increase on 2013 Director 108756 90000 +20.8* Head of Function 68978 69355-0.5 Senior Manager 50000 53000-5.7 Middle Manager 42000 40450 +3.8 Junior Manager 32000 32000 = Assistant Manager 26000 25000 +4.0 Senior Clerical 22000 21000 +4.8 Overall 34000 35000-2.9 * This change has been influenced by the change in sample year-on-year.
Purchasing Pay Compared with other Functions Basic pay in purchasing moves further ahead of other key functions for all levels. Pay for heads of the purchasing function is well ahead of the national average, and they now top the league and are generally more highly paid than marketing, HR, finance, IT and sales. Rank 0 Rank 1 Rank 2 Rank 3 Rank 4 Director Head of Senior Middle Junior Function Manager Manager Manager Purchasing 108756 68978 50000 42000 32000 IT 83885 57630 47739 37842 31922 Finance 82620 58621 46603 38011 31777 HR 73682 61258 45518 37863 30535 Marketing 77125 59827 45000 36000 30000 Sales 76000 61293 48947 38888 33638 All Functions 82152 60701 47632 38053 31169 Senior and middle managers have also retained their position from last year and are ahead of the all function average and ahead of their counterparts in HR, sales, marketing, IT and finance. PURCHASING PAY COMPARED WITH NATIONAL AVERAGE FOR ALL FUNCTIONS 1995 2005 2011 2012 2013 2014 Director -5.1 +5.7 +15.4 +26.4 +4.3 +24.5 Head of Function -2.2 +12.1 +15.4 +16.0 +15.6 +12.0 Senior Manager -6.8 +8.7 +11.5 +7.8 +12.0 +4.7 Middle Manager -10.1 +0.3 +7.4 +6.6 +6.3 +9.4 Junior Manager -8.6-2.1-1.9 +4.3 +2.7 +2.6
Equal Pay Gap Female purchasing professionals earn more than their male counterparts at middle manager level and above. 35 of the heads of function who responded to the survey were female and their pay was 5.6 above that of their male counterparts. Pay for the 42 of female middle managers who responded to the survey was 2.3 above their male counterparts. Job Level Average Female Pay Average Male Pay Difference Percentage of Women Head of Function 77500 73150 +5.6 35 Senior Manager 56000 50400 +10.0 23 Middle Manager 43000 42000 +2.3 42 Junior Manager 32000 32000 = 51 Assistant Manager 25600 26194-2.3 55 Not all respondents told us their gender CIPS Membership adds value Buyers and purchasing managers who are members or associate members of CIPS can expect to earn up to 2,200pa more than non-members in similar roles. Pay Variations by Sector Average pay for purchasing professionals is generally higher in the service sector. Pay levels in the service sector are higher than in the public sector for purchasing managers up to head of function (equal at senior manager level) and the pay gap has narrowed compared with last year for many jobs. Head of function, senior managers and middle managers in the manufacturing sector are paid the most. Job Level Public Sector pa Service Sector pa Manufacturing pa Head of Function 65339 66830 71400 Senior Manager 50000 50000 53000 Middle Manager 42000 44148 40400 Junior Manager 30800 33000 34277 Assistant Manager 25000 26500 26097 Senior Clerical 22000 22565 22000
Pay Variations by Region Lowest pay levels found in the North East and highest in London. Average pay for a purchasing professional in London is 41,750, 23 above the national average. In the North East, the average purchasing professional is paid 28,872, 15 below the national average. Other regional variations show North West -6, West Midlands +12, South East +18 and South West -3. 50 40 Median Basic Pay - compared with national average 30 20 22.8 17.6 11.8 10 0-10 -20-30 0.8 0-2.9-5.9-8.8-15.1-20.6 London South East West Midlands Scotland Eastern Counties South West North West *Wales North East *Northern Ireland * Small sample Bonuses and Incentives The average bonus payment for purchasing professionals is 2,300. 30 of purchasing professionals received a bonus last year averaging 2,300, ( 2,000 in 2012). Their bonus earning potential was 3,330. This varies by job level with 38 of middle managers receiving a bonus with an average value of 2,500. 26 of buyers received a bonus averaging 1,725. Generally in 2013, bonuses for all grades of manager were higher than in 2012. The average value of bonus as a proportion of salary has increased to 6.8.
Hours of Work and Holidays Over half of the purchasing professionals in our survey work between 40 and 45 hours a week. The average head of purchasing and senior manager works 41 to 50 hours per week. Middle and junior managers typically work 40 to 45 hours a week. There has been an increase in the proportion of purchasing professionals working up to 39 hours a week and 40 to 45 hours a week but a reduction in those working 46 to 50 hours a week. HOURS PER WEEK Sector Up to 39 40 41 to 45 46 to 50 51 to 60 Manufacturing 17 (15) 19 (20) 38 (42) 19 (17) 5 (6) Private 20 (15) 22 (21) 33 (27) 18 (18) 7 (18) Public 35 (37) 27 (26) 29 (28) 8 (6) 2 (3) ALL 25 (21) 22 (22) 34 (33) 15 (14) 4 (9) Last year s figures in brackets In the private sector there has been an increase in those working up to 39 hours and 41-45 hours a week, and a big drop in those working 46 to 50 hours a week. Average hours in manufacturing have dropped with fewer working 46 to 50 hours a week and more working up to 39 hours a week, 40 hours a week and 41 to 45 hours a week. There has been little change in the working pattern for those in the public sector. Typically, purchasing professionals receive 25 days basic holiday entitlement a year. Purchasing Professionals satisfied and secure 49 of purchasing professionals reported that they had good or excellent job satisfaction. 57 said their job security was good or excellent and a further 31 said it was fair. 73 felt their total pay was equal to the market and 16 felt it was above. 6 felt their pay was well below the market. A third said they had no promotion prospects in their current organisation. 17 of purchasers in the public sector felt their job satisfaction was poor or bad compared with 16 in the private sector. 31 of purchasing professionals in the private sector felt their promotion prospects were good or very good compared with 12 in the public sector. A quarter of purchasing professionals said they were actively seeking to move job, down from a third last year.