Procurement Market Report 2017/2018

0

Author: Tier 1 Procurement

Here are a few facts from our deep-dive analysis on LinkedIn from the past 12 months in the Procurement profession within Australia. These figures cover the range of roles from Procurement Analyst to Chief Procurement Officer – consulting firm candidates are not included. The figures from these LinkedIn findings are approximate, but provide the most accurate measure of the market available.

June 2017 to June 2018
* 2,550 procurement job moves occurred over the period
* 19,859 procurement professionals work in the field
* The biggest Australian Procurement organisations are: Telstra, Transport for NSW, Rio Tinto,
Commonwealth Bank of Australia, BHP Billiton, NAB, Queensland Health, ANZ Bank, IBM &
Lendlease.

Top 10 companies that hired:
* Telstra, Commonwealth Bank of Australia, NAB, BHP Billiton, Rio Tinto, Coles, Transport for NSW, AGL Energy, Lendlease and Woodside Energy.

Top 10 companies that had turnover:
* Telstra, BHP Billiton, IBM, Commonwealth Bank of Australia, Coles, NAB, Transport for NSW, Rio Tinto, Origin Energy and Downer Group.

Top universities attended by procurement professionals:
* RMIT University, Monash University, TAFE NSW, Swinburne University of Technology and University of Technology Sydney.

Top fields of study for this population
* Business, Logistics and Accounting.

Gender
* 29% of the Australian Procurement market are women.

Small Business Growth
* 22% of the procurement population are working in businesses with less than 500 staff.

Contractors
* 14% of the market is made up of Contracting professionals.

Active Candidates
*
12% of the market is made up of Active (available or actively looking) candidates.

Overseas Australians
As of June 2018. 3,474 Australian-educated procurement candidates are overseas. At least 790 of these candidates are open to new opportunities. Tier 1 Procurement monitors and engages these potential candidates in order to meet our client’s resourcing needs.

Growth
Industries expanding their procurement workforces include Energy, Infrastructure & Property. AGL Energy, Lendlease and Woodside Energy lead the way with the most improved head count.

Turnover
Mining, Banking and Telecoms saw the biggest drop in Procurement numbers. In fact, the top 7 employers of Procurement professionals in the last 12 months had the most significant drop in headcount. This has been the biggest year of “spill and fill” that we have witnessed in the last ten years. Change does bring opportunity, but it is fair to say that the profession is not growing at a massive rate at the moment.

Small business growth
Almost all the Procurement candidates joining smaller businesses in the last year have come from large corporates. This trend reflects the growing number of professionals becoming disenchanted with large corporate cultures.

The draw of a smaller corporate environment in providing more recognition and flexibility has been evident. The number of self-employed consultants hitting the market has also increased. This is partly due to these consultants having a niche capability or systems skill set, but it also reflects an oversupply of Procurement leaders versus the senior Procurement roles available to them.

Gender diversity
Gender diversity is 2018’s hot topic. Women make up around 29% of the market, showing that Procurement still has a way to go in terms of workplace gender equality. Industries most focused on hiring women in Procurement roles include Resources, Consulting and Engineering.

Active candidates
Candidates who LinkedIn’s new function defines as actively “open to opportunities” are sitting at 12% at the moment. In reality, this number is probably slightly higher, due to a lack of knowledge that the function exists. Nevertheless, this figure shows us that a large proportion of the market is currently “passive”. Passive candidates are not reactive to opportunities: they need to be engaged over a long period of time and with the right opportunity.

Internal recruitment teams are doing more and more to engage with Passive talent using their brand and internal processes, as well as advertising. However, in most cases this is not enough to capture sufficient high-calibre people into the organisation. As a result, a need remains for specialist recruitment services.

Procurement roles, outside Procurement
One issue (or growing pain) with the procurement profession is that many large corporates have professionals carrying out Procurement roles but operating outside the Procurement function. This is normal when the organisation has de-centralised procurement. However, a growing number of people are undertaking these roles within big businesses even when centralised procurement is in place. From Tier 1’s perspective, this is a positive – it gives us an additional talent pool to choose from.

If you are looking for assistance with your career, need help with any recruitment project or want to know more about our training and consulting packages for in-house recruitment teams, contact us via info@tier1procurement.com

 

About Author

Leave A Reply