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

Salary Survey Results for Procurement and Supply Chain Professionals in the Housebuilding SectorJuly, 2023Firstly, 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 SummaryThe 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 significantlyOnly 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’ that influence 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 marketWhile 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 a tempting proposition 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.Candidates in the housebuilding sector and the contractor sector have different views on moving jobs: Candidates NOT looking for a move in the next 12 months: 33% (housebuilding), 37% (contractor sector)Candidates unsure if they will look for a move in the next 12 months: 39% (housebuilding), 43% (contractor sector)Candidates looking for a move in the next 12 months: 28% (housebuilding), 20% (contractor sector)Candidates citing job security as a top 3 factor when considering a move: 50% (housebuilding), 38% (contractor sector)Any move is likely to see them stay within the same sector however as buyers, senior buyers and procurement managers in the house building sector earn anywhere from 8% to 29% more than those working in equivalent roles for contractors. Furthermore, they benefit from: superior holiday allowances; better car allowances; and bigger bonuses.While basic salary is a top 3 factor for 69% of respondents when considering a move, the unsettled nature of the market and increasing occurrences of redundancies are likely the reasons 50% of respondents to the house builders survey also cited job security as a top 3 factor when considering a move.This suggests that employers who are able to instil confidence around their business may be able to attract and retain staff without paying the same premiums that less successful or more highly leveraged firms may need to offer.One aspect of the contractors’ employment arrangements that housebuilders likely envy is the flexibility. “Commute, travel and flexible working” was a top 3 factor for 77% housebuilders considering a move, however 30% of respondents had no home working option, with a further 20% only able to work from home one day a week.If you would like to discuss any issues relating to recruitment or retention of procurement and supply chain professionals in the construction related industries then please contact Adam, who has over 20 years’ experience recruiting procurement and commercial professionals across the construction sector. #J-18808-Ljbffr