Summary of Results
Introduction
To collect the data for this, the eighth Purchasing & Supply RŁwards survey, questionnaires
were sent to around 23,000 members of the Chartered Institute of Purchasing & Supply.
Around 1,800 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 databank,
taken from Croner Reward s other surveys. The total data analysed in the survey was 6,146
jobs from around 1,500 organisations.
The data was collected between October and December 2008 and the survey was published
in March 2009.
Job Records by Region
562
742
Eastern Counties
London
705
566
North East
North West
Northern Ireland
Scotland
596
South East
987
South West
West Midlands
824
528
119
Job Records by Company Size - Turnover
28
110
124
352
179
Up to Ł1M
Ł1M to Ł3M
588
825
Ł3M to Ł10M
Ł10M to Ł20M
Ł20M to Ł50M
Ł50M to Ł100M
600
Ł100M to Ł200M
539
Ł200M to Ł500M
Ł500M-Ł1bn
Ł1bn-Ł10bn
625
Over Ł10bn
884
Croner Reward iii Tel: 01785 813566
Key Findings
Pay awards for purchasing professionals averaged 3.3% in 2008. 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 around Ł2,000 more than non-members. The gap in pay between male and
female purchasing professionals has improved slightly. Purchasing professionals across all
sectors are, on average, working even longer hours than reported in last year s survey.
57% of purchasing professionals reported that they had good or excellent job satisfaction. A
third of our respondents are actively seeking to move job.
Note:
Pay awards/settlements are across the board pay increases given at an annual pay review.
Year-on-year increases in earnings include any individual/team performance awards in addition to across the board
settlements but exclude one-off bonuses.
Total pay includes bonuses or other variable cash. Details of this can be found in the main body of the report.
Pay Increases and Forecasts
On average, pay settlements during 2008 were 3.3%, in line with the average for
all functions .
The average across the board increases for purchasing professionals in this survey was
3.3%. Purchasing directors and heads of function received above average increases of 3.5%
and 3.3% respectively. Four out of five purchasing professionals received a pay increase of
between 2% and 5% last year, with a further 9% receiving a 6% to 10% pay rise. Average
forecasts for the coming year are 3%, with one in three respondents forecasting 4% to 5%.
Directors are forecasting 4%.
Croner Reward v Tel: 01785 813566
Year-on-Year Comparisons
The overall year-on-year increase for all purchasing jobs is 3.2%.
(The following figures reflect changes in basic earnings, not just pay settlements referred to above.)
Basic pay for directors has increased significantly more than the average at 13.3%. The
range of increases for other grades of job is 2.3% to 6.7%. Middle and junior managers
have seen year-on-year increases of 6.7% and 6.6% respectively.
YEAR-ON-YEAR INCREASES
Job Level Basic Salary Increase on
2009 2008
Director 85000 +13.3
Head of Function 65000 + 3.2
Senior Manager 50000 + 4.2
Middle Manager 38400 + 6.7
Junior Manager 29950 + 6.6
Assistant Manager 24000 + 2.3
Senior Clerical 20000 + 5.3
Overall 32000 + 3.2
Croner Reward vii Tel: 01785 813566
Purchasing Pay Compared with other Functions
Basic pay in purchasing moves further ahead of other key functions for all levels
except junior manager.
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.
Senior and middle managers have also gained ground this year and are ahead of the all
function average and ahead of their counterparts in HR, sales, marketing, IT and finance.
This year pay for junior managers is slightly ahead of the all function average but falls
behind IT and sales. Purchasing directors are still well ahead of the national average and
ahead of all other functions.
PURCHASING PAY COMPARED WITH NATIONAL AVERAGE
FOR ALL FUNCTIONS
1992 1995 2005 2007 2008 2009
% % % % % %
Director -18.0 -5.1 +5.7 +9.1 +4.5 +11.2
Head of Function -6.7 -2.2 +12.1 +16.4 +17.6 +17.3
Senior Manager -10.8 -6.8 +8.7 +6.6 +10.7 +11.1
Middle Manager -8.0 -10.1 +0.3 +5.0 +2.4 +5.9
Junior Manager -9.3 -8.6 -2.1 +2.6 -2.5 +0.6
Assistant Manager -9.4 -7.7 -2.5 -1.7 -4.6 =
Senior Clerical -2.1 -5.5 -5.7 -2.5 = +2.6
Clerical -4.4 -4.9 -2.3 -4.9 +4.6 +0.3
Equal Pay Gap
The pay gap between male and female senior purchasing professionals improves
slightly.
Pay for female purchasing professionals is now between 3% and 22% below that of their
male counterparts. 16% of purchasing directors who responded to the survey were female,
but their pay was 22% below that of their male counterparts (25% last year). The
proportion of women who responded to the survey has increased for all senior job levels.
CIPS Membership adds value
Directors and heads of function who are fellows of CIPS can expect to earn between Ł11,000
and Ł22,000 more than non-members in similar roles. Middle and junior managers who are
members of CIPS can expect to earn around Ł2,000 more than non-members in similar
roles.
Croner Reward xiii Tel: 01785 813566
Pay Variations by Sector
Average pay for purchasing professionals is generally higher in the private sector.
Pay levels in the service sector are higher than in the public sector for all ranks of
purchasing professional except director and senior clerical. However, the pay gap has
reduced significantly from last year to between Ł1,000 and Ł6,000.
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 Ł37,000, 15% above the national
average. In the North East, the average purchasing professional is paid Ł28,000, 12%
below the national average. Other regional variations show South West -9%, North West
-6%, West Midlands -3% and Eastern Counties +20%.
Median Basic Pay
- compared with national average
50
40
30
20.4
15.6
20
9.4
%
10
2
0
-3.1
-10
-6.3
-9.4
-12.5
-20
Bonuses and Incentives
The average bonus payment for purchasing professionals is Ł2,100.
29% of purchasing professionals received a bonus last year averaging Ł2,100, but their
bonus earning potential was Ł3,500. This varies by job level with 30% of middle managers
receiving a bonus with an average value of Ł3,000. Around one in four buyers will receive a
bonus averaging Ł1,000.
Croner Reward xiv Tel: 01785 813566
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Hours of Work and Holidays
Typical hours worked by purchasing professionals have again risen significantly
compared with last year s survey.
The average purchasing director works 51 to 60 hours per week. Senior and middle
managers typically work 40 to 45 hours a week. More junior managers now work 40 to 45
hours a week (60%) than work 39 hours (17%). Overall, the proportion of those working up
to 39 hours has halved by a third compared to last year (15% vs 30%). The proportion
working 40 to 45 hours has risen by a third (from 24% to 31%), and the proportion working
51 to 60 hours, has almost trebled compared to last year (16% vs 6%). There is a tendency
to work fewer hours in the public sector and longer hours in the private sector, but the gap
is closing.
HOURS PER WEEK
Sector Up to 39 40 41 to 45 46 to 50 51 to 60
% % % % %
Private 15 (24) 16 (17) 23 (32) 20 (18) 25 (9)
Public 16 (37) 46 (27) 17 (31) 10 (3) 11 (1)
ALL 15 (30) 31 (24) 24 (28) 14 (12) 66 (6)
Last year s figures in brackets
Generally hours have increased in the private sector with fewer purchasing professionals
working 39 hours or less. The proportion working 46 to 50 hours or 51 to 60 hours has
risen. In the public sector, there has been a significant move away from 39 hours, and the
proportion working 40 hours has almost doubled compared to last year. 33% of purchasing
professionals are reporting an increased requirement to work outside normal hours.
Typically, purchasing professionals receive 25 days basic holiday entitlement a year.
Purchasing Professionals satisfied and secure
57% of purchasing professionals reported that they had good or excellent job satisfaction.
60% said their job security was good or excellent and a further 30% said it was fair. 69%
felt their total pay was equal to the market and 20% felt it was above. But 7% felt their pay
was well below the market. Around a quarter said they had no promotion prospects in their
current organisation. 34% of purchasing professionals said they were actively seeking to
move job. 23% of purchasers in the public sector felt their job security was excellent
compared with 9% in the private sector. 31% of purchasing professionals in the private
sector felt their promotion prospects were good or very good compared with 24% in the
public sector.
Croner Reward xv Tel: 01785 813566
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