Salary Survey Results for Procurement and Supply Chain Professionals in the Housebuilding Sector

AR Resourcing Group Ltd; York; On-site; GBP 60,000 - 80,000; Full time

Job description

Salary Survey Results for Procurement and Supply Chain Professionals in the Housebuilding Sector

July, 2023

Firstly, thank you to all the procurement and supply chain professionals who completed our House Builders Salary Survey last month. It shows a market that continues to be very active, with a workforce that is highly valued.

It’s worth noting that the housing market is currently facing tremendous challenges. Increasing interest rates, falling new orders, and, more recently, increasing redundancies across procurement and commercial teams are all having a negative impact on the sector.

When considering this backdrop, our salary survey results make even more interesting reading.

Results Summary

The three most interesting statistics highlighted by the House Builders salary survey of procurement and supply chain professionals (PSCPs) were:

• PSCPs in house building are better remunerated (salary, car allowance, bonuses, holiday) than those in equivalent roles with Construction, Infrastructure, FM & M&E Contractors. Often significantly!
• Only 33% of procurement and supply chain candidates working for housebuilders aren’t considering a move in the year ahead, reflecting the salary uplift (average 16%) a move generally triggers.
• Flexibility (77%) and job security (50%) were the other two major ‘top 3 factors’ influencing a candidate’s decision whether or not to move in the year ahead. The very high flexibility figure reflects how limited working from home opportunities are in house building compared with those offered to those in the wider economy and even PSCPs working for contractors.

Further insight and analysis into the market

While 66% of respondents received a pay rise (average 6%) in the last twelve months, wage inflation continues to drive a game of musical chairs within the sector, with candidates finding on average they can achieve salary increases of 16% by moving company.

Such significant salary increases are clearly tempting in the face of continuing cost of living increases, and according to our salary survey, only 33% of procurement and supply chain candidates in the housebuilding sector have no intention of looking for a move in the next 12 months. Comparing this with the contractor sector salary survey from six months ago, it suggests candidates in housebuilding are more likely to move jobs in the year ahead.

House Builders (July 2023) Construction, Infrastructure, FM & M&E Contractors (Jan 2023)

Candidates NOT looking for a move in the next 12 months: 33% | 37%

Candidates unsure if they will look for a move in the next 12 months: 39% | 43%

Candidates looking for a move in the next 12 months: 28% | 20%

Candidates citing job security as a top 3 factor when considering a move: 50% | 38%

Any move is likely to see candidates stay within the same sector, as buyers, senior buyers, and procurement managers in house building earn anywhere from 8% to 29% more than those in equivalent roles for contractors. They also benefit from superior holiday allowances (32% receive at least 28 days holiday vs. 27% of contractors), better car allowances, and bigger bonuses.

While salary is a top 3 factor for 69% of respondents when considering a move, the unsettled market and increasing redundancies are likely reasons why 50% also cite job security as a top consideration. This suggests that employers who can instill confidence may attract and retain staff without needing to pay premiums.

One aspect of contractor employment arrangements that housebuilders likely envy is flexibility. “Commute, travel, and flexible working” was a top 3 factor for 77% of housebuilders considering a move. However, 30% had no home working option, and 20% could only work from home one day a week. In comparison, only 16% of contractors had no home working, and 7% were limited to a day per week. Employers offering 2+ days of remote work per week will find it easier to attract talent.

If you would like to discuss issues related to recruitment or retention of procurement and supply chain professionals in construction-related industries, please contact me:

Adam has over 20 years’ experience recruiting procurement and commercial professionals across the construction sector.

When it comes to shaping your career, there are two broad paths: a planned approach and an organic approach. Neither is right or wrong, but each suits different circumstances.

The shortage of procurement and commercial candidates in construction has been driving up salaries since COVID. Our salary survey guides show that each of the last three years, salary levels have increased accordingly.

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