The procurement and supply chain sector has been heavily affected by the COVID-19 pandemic, but the level and direction of impact varies massively across the different industries.
Many organisations have remained stable, and even seen a surge in demand, whereas others have experienced a decline like never before.
With uncertainty around both the ramifications of the Brexit trade deal and the pandemic, it will be hard to predict the outcome of this year. However, we can expect the market to grow rather than decline.
Talent in the market
Until the economy regains strength, candidates who are already employed are suspending their job searches in favour of stability and security. The market is full of promising candidates who have lost their jobs solely due to the COVID-19 outbreak – including many from other sectors who are willing to reskill.
Businesses should think about streamlining their recruitment processes to cope with the high volume of applications until the market picks up. The best candidates will be snapped up if hiring managers take too long to recruit. Once they find the best candidate, they must not hesitate to make the most competitive offer they can – considering the most popular salaries and benefits among procurement and supply chain professionals at present.
Procurement and supply chain salaries and benefits
It is difficult to generalise on the salary and benefit levels and expectations across the whole sector, with there being such a stark contrast between industries over the past year. However, benefits have become more important to candidates – many passive candidates may be willing to move for the same salary if the benefits package is competitive.
Those companies that offer flexible or home working, alongside a good salary, may be in the best position to attract top talent as we move into more stable times. Employees will remember how their company looked after them during the pandemic, so it is important to make sure you continue to offer the benefits they want.
Roles in demand
The sector has seen growth in almost every role nationwide – most of them have risen by more than 2% from last year. Areas of growth include FMCG, food, and pharmaceuticals – with the latter likely to continue growing with the rollout of the COVID-19 vaccine. Demand for transport and logistics staff, especially warehouse operatives, has also significantly increased.
Logistics management professionals have been in high demand this past year, with increasing salaries in several regions including East Anglia (4.4%) West Midlands (10.4%) and Yorkshire and Humberside (11.5%).
Supply chain director salaries are also on the rise, with continuous growth year-on-year in many regions, especially the South East, where salaries average a 4.4% increase.
What procurement and supply chain salary trends can you expect?
REED’s Procurement and Supply Chain salary guide has been designed to help you benchmark salaries of the most popular roles by region – overall, the sector has seen national average salary growth of 4.5% over the past year.
Salaries in Scotland have risen higher than in any other region, with a 6.6% average increase in the sector. In particular, demand/supply/materials manager salaries have jumped up by 10.8% and supply chain coordinators have earned 7.9% higher average salaries than the year before.
In this region, we’ve seen a notable trend towards temporary work. I would advise professionals to keep an open mind around fixed-term contracts because they offer development opportunities and a chance to become a permanent employee.
Yorkshire and Humberside
The highest salary increases we’ve seen in England have been in Yorkshire and Humberside, which had a regional average salary increase of 3.8%. Assistant buyer roles are in much higher demand than last year, with salaries increasing by 9%. Another role on the rise is logistics manager – pay for this role has grown by 11.5%.
To futureproof their businesses, leaders are reviewing their supply chains, optimising their procurement processes and building resilience – with a focus on locality which should start to impact the region within the next 12 months.
For more information on salaries and benefits in the procurement and supply chain sector, as well as regional insights on your local market, download our 2021 salary guide.