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How does your salary size up? What are the key challenges facing the profession? How do I recruit the right talent? All answered through the key insights into the CIPS Hays Salary Guide 2023.

Thursday 29th June 2023

The highly anticipated CIPS Hays Salary Guide 2023 is set to be released on the 10th of July. However, The Procurement Academy was fortunate enough to attend the live broadcast and obtain an early copy of the guide. The event featured an esteemed panel, including CIPS CEO Nick Welby and Dr. John Glen, a respected economist.

While the CIPS Hays Salary Guide 2023 continues its tradition of providing comprehensive salary information, it goes beyond that by offering valuable insights into the world of procurement. The guide stimulates thought-provoking discussions on various aspects of the profession, allowing readers to gain a deeper understanding of what the field values, the priorities of its leaders, and the aspirations of professionals.

This knowledge is of utmost importance, given the highly competitive nature of the procurement profession and the significant demand for talented individuals. According to a recent survey, 41% of respondents expressed that competition from other employers presents a recruiting challenge. Consequently, organisations must focus on their employer value proposition and the development of talent pipelines. Investing in the training and retention of existing employees proves to be more cost-effective than constantly seeking new hires, especially in a fiercely competitive market.

The CIPS Hays Salary Guide 2023 presents several key takeaways:

Increasing Importance of MCIPS: A significant finding reveals that 58% of employers now place greater emphasis on hiring individuals with MCIPS qualifications or those studying towards them, up from 56% in 2022. This highlights the growing recognition of the value and expertise associated with MCIPS certification in the procurement field. Notably, professionals with MCIPS qualifications benefit from a pay disparity of 20.1% in professional-level roles, with an average salary of £63,365. Additionally, 76% of MCIPS professionals reported a salary increase over the past 12 months.

Importance of Staff Training and Development: The guide emphasises that 61% of employees consider staff training and development crucial, alongside factors such as salary (79%) and career progression (62%). Interestingly, the guide highlights that women place a higher priority on training and development compared to men, with 68% of women valuing it versus 58% of men. The significance of training and development is further emphasised, with figures rising to 72% for tactical roles, 73% for operational roles, and 73% for managerial roles. These statistics underscore the importance of investing in training and development initiatives at all levels within organisations, from junior positions to managerial roles, thereby reinforcing the "train and retain" model.

Talent Acquisition Challenges: The guide reveals that 72% of organisations faced difficulties in hiring the right talent across all sectors in the past 12 months. Among the challenges identified, 45% of employers cited a lack of technical expertise and formal procurement training as a key issue. This underscores the need for organisations to address skill gaps and provide formal training opportunities to bridge the knowledge gaps in the procurement field.

Broadening Appeal: Embedding equality, diversity, and inclusion (ED&I) at the core of an organisation is a strategy to broaden its appeal and reach a diverse pool of professionals. Using nontraditional channels to advertise vacancies can attract candidates from underrepresented groups. Interestingly, 47% of respondents indicated that this is the most important factor they consider when evaluating a new job. Additionally, 83% believe that a diverse and inclusive workplace culture is important to their organisation.

Skills Gaps: Supplier relationship management, communication, and leadership skills emerged as consistent requirements across sectors. Scott Dance, UK&I Procurement Engagement Director at Hays, highlights the increased recognition of supplier relationship management, which reflects the mounting pressure on the private sector to reduce costs, monitor performance, source responsibly, and foster innovation. Collaboration and relationship-building with strategic supply partners are increasingly critical to driving value for organisations.

In summary, the CIPS Hays Salary Guide 2023 not only provides valuable salary information but also offers profound insights into the procurement profession. It underscores the growing demand for individuals with MCIPS qualifications, emphasises the importance of staff training and development, sheds light on talent acquisition challenges, and highlights the significance of equality, diversity, and inclusion initiatives. By leveraging these insights, organisations can enhance their employer value proposition, foster talent development, and address the pressing needs of the competitive procurement market.


Get in touch with us regarding how The Procurement Academy can help address skills gaps and deliver formal procurement training to you and your team.

alex@theprocurementacademy.com
0113 4333495

Sources:

CIPS Hays Salary Guide 2023
CIPS Hays Salary Guide 2022