Increased competition for procurement professionals, 2006 Salary Survey results

Competition for procurement professionals has hit an all time high as businesses increasingly recognise the value of procurement in improving efficiencies as well as costs, a new survey concludes.

The 2006 Salary Survey by recruitment company PSD and supply chain consultancy State of Flux, found that competition for high-calibre procurement professionals has risen as more companies demand candidates who have well-rounded commercial skills in addition to their purchasing backgrounds.

As such, more commercially savvy procurement officers have been appointed to executive board positions, and organisations are luring the best by offering excellent base salaries, bonus schemes, share options and other remuneration options.

Stephen Fletcher, director of PSD group, explained: "Procurement infiltrates every business area which in turn means that the highest quality procurement professionals must possess a well honed commercial acumen as well as highly tuned procurement skills.

"Naturally we are seeing demand for this type of individual far outstripping the supply of those in the marketplace."

The survey found that salaries in the technology and banking sectors are leading the way, with City procurement salaries up ten per cent. Regional senior procurement salaries, meanwhile, have risen five per cent.

The banking sector only recently focused on procurement because, at the early stages of the industry's boom, "filling the proverbial bucket was proving so easy that nobody paid attention to what was leaking out of the holes in the bottom", Mr Fletcher commented.

However, he added: "Attentions have now turned and again, because of the demands put on procurement from a strategic point of view by every part of the business, the high calibre procurement professionals are in demand to bring added value as well as savings.

"This demand has seen procurement salaries increase in line with other parts of the banking businesses. And as for bonuses...that's another story!"

The survey is the result of a comprehensive analysis of the remuneration of 10,500 procurement professionals, broken down by geographical location in addition to market sector.

For a copy of the survey please click here: 2006 PSD & SoF Salary Survey