Procurement professionals who are changing companies are seeing salary increases of between 10 to 25%, procurement recruiters Pragma Resourcing reveals.
The team at Pragma Resourcing released its observations, opinions and predictions on the Australian Procurement employment market recently.
Pragma Resourcing says many companies are benchmarking 2019 salary levels, thus creating a “mismatch” and some are constraining existing employees to these figures. But, the firm, says “there is now genuine evidence of candidates getting 10-25% or more salary increases by changing companies.”
“The market will resolve this impasse and indeed the high demand for Contractors and associated inflating day rates is the best evidence we have to demonstrate this reality is coming,” it said.
In releasing the report on Linkedin, Mike Ward Managing Director for Pragma, said the Sydney procurement workforce is gradually returning to the office.
“One consistent theme is the speed at which Sydney is moving back to pre-covid office vs work from home practices, whereas Melbourne appears slower to bounce back,” he said.
“Acknowledging the sweeping generalisation, Sydney likely represents the future norm but it will be (quite understandably) a longer road out of the lockdown mindset for Melbournians.”
See the procurement recruitment report
Caution with procurement leadership recruitment
At the top end of the profession, permanent leadership-level recruitment commands a $200-$350,000 + (base salary) package but remains challenging due to cautious corporate hiring confidence, Pragma Resourcing says.
Talent shortages continue in the individual contributor level of $150,000 to $180,000 bracket.
This is consistent with fellow procurement recruitment firm Cozens Mabel a few weeks earlier said it expects demand for procurement and supply chain talent to remain strong over the next 12 months.
Procurement contractor rates which used to be up to $1200 per day are now reaching between $1000-$1350 per day, the paper says.
Hays spoke to PASA in January and said seven in 10 procurement professionals believed they would be financially better off by switching jobs.
Economic uncertainty impacting hiring decision-making
Hiring activities are met with an air of caution still though, says Mike. “due to the economic uncertainty (not Covid) is now the main driver of somewhat cautious hiring behaviours across corporate Australia.”
What now for flexible working?
Mike believes “Working from Home” regimes remain a significant limiting factor to the ‘churn’ of
talent between roles. “But this will begin to change in earnest in 2023,” he said.
“Corporate Australia will eventually move to mandate working back in the office for most roles requiring a high level of stakeholder engagement and collaboration, that is the reality many employees don’t want to acknowledge,” he said.
What can we expect this year
- permanent hiring will return to normal levels in 2023
- hybrid resourcing models are becoming more popular, with an increasing demand for flexible resourcing/contractors
- return to office work will likely be necessary for the resumption of normal permanent hiring volumes
- three days per week in the office will likely become the “new normal”
- salary inflation has occurred but has not been fully acknowledged in the market
- mismatch in salary expectations may result in increased job churn
- High demand for contractors is evidence of increasing salary inflation and market resolution