Which Supply Chain roles have seen salary increases in 2023?

An Everchanging Landscape: Impact on the Professional Landscape

Despite the ongoing challenges posed by the conflict in Ukraine and other factors, it's important to recognise the resilience and adaptability of businesses worldwide. While the surge in energy and raw material costs has created obstacles in logistics and digital services, it has also spurred innovation and the exploration of alternative solutions.

The continuation of Russia's ware in Ukraine has driven a surge in the cost of energy and raw materials, affecting logistics and digital services. Oil and gas prices have skyrocketed, indirectly augmenting manufacturing costs worldwide. This surge has inadvertently contributed to a widespread cost-of-living crisis.

Closer to home, UK companies are grappling with the aftermath of Brexit and the long road to recovery from the Covid-19 pandemic. The volatility in government policy, exemplified by the repeal and reinstatement of IR35 regulations, has added another layer of uncertainty to economic plans and regulations.

The Hiring Challenge: Walking a Tightrope

In light of these challenges, the task of hiring managers has been far from straightforward. The skills shortage and a major shift in working arrangements have further amplified the pressure to attract and retain the best candidates.

The requirement for quick action and agile decision-making in the candidate market has never been more pressing. To support the hard-working hiring managers, we have compiled candidate experiences and salary survey information. Here we focus on roles that have observed year-on-year salary increases, providing invaluable insights for informed decisions.

Unpacking Salary Trends: Supply Chain Specialisms

Procurement and Purchasing:

In the realm of procurement and purchasing, changes have been distinct and noteworthy. While Senior Buyer salaries have maintained a steady pace, with no significant shifts in the pay scale, year-on-year increases have been enjoyed by Buyers (+5.88%) and Junior Buyers (+7.69%). This could reflect a shift in organisational focus towards nurturing junior employees for more significant future career moves due to a shortage of experienced skilled candidates.

Procurement Analysts, pivotal to the informed decision-making process in the businesses, have also seen a 5% rise in their benchmark salaries, now between £28k and £35k. Likewise, Procurement Managers, who play a key role in managing procurement tasks and strategies, have experienced a 16.67% salary increase, with their benchmark ranging from £50k to £90k.

Supply Chain:

In supply chain, there has been a recognisable uplift in salaries. Supply Chain Coordinators, who oversee and coordinate supply chain operations, are now earning between £25k and £30k which is a 17.02% increase in comparison to 2022. Production/Material Planners, critical in ensuring smooth manufacturing processes, have experienced an 8.33% increase in salary, now betwen £30k and £35k. Meanwhile, Demand Planners, key to managing and forecasting product demand, now command a salary range from £35k to £45k an increase of 6.67%.

Logistics and Transport:

Meanwhile in the logistics and transport function, we have seen a marked increase in salaries. Logistics/Transport Analysts, whose responsibilities involve optimising logistical processes and transportation methods, have seen a 7.69% increase in their benchmark salary range of £25k to £45k. Directors for Distribution, Logistics or Fleets, responsible for overseeing and managing all logistical operations, now command salaries of £110k and above a 22.22% increase.

Buying:

The buying specialism has observed significant shifts. Almost every role, from Junior Buyers to Buying Managers, has seen a significant increase in benchmark salaries, reflecting perhaps the growing complexity of buying decisions amid evolving market dynamics. Only Buying Director's salaries have remained static, possibly due to the limited demand from high street retailers for every senior buying talent.

HR and People:

Reflecting the changing work environment and the growing importance of work-life balance and diversity, HR have seen the most significant increase in benchmark salaries in our latest salary survey for 2023. From HR Assistants to HR Directors, ten typical HR roles have seen an upswing in their salary benchmarks. It seems businesses are now more than ever recognising the importance of effective human resource management in fostering a productive and engaged workforce.

The shifting tides of the global professional landscape have led to considerable changes in 2023. Understanding these shifts and being able to adapt to them is vital for businesses aiming to attract and retain the best talent.

As we move forward, maintaining competitive salaries will be crucial in ensuring employee satisfaction and engagement. It's also essential for businesses to recognise the importance of offering and comprehensive range of employee benefits. These benefits, such as flexible work arrangements, professional development opportunities, and robust healthcare packages, play a significant role in attracting and retaining top talent. By prioritising employee well-being and providing a supportive work environment, businesses can cultivate a motivated and loyal workforce, even in the face of external challenges. But, beyond that, it is also about understanding the nuances of these changes, allowing businesses to make informed decisions.

To discover more insights into salary benchmarks and employee benefits, download our free 2023 Salary & Benefits Guide to ensure you're offering what candidates want in the competitive talent landscape.