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

July, 2023
Adam Richardson

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: 

  1. 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!
  2. 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.
  3. 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 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 increase 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 (see table below). Comparing this with the contractor sector salary survey we did 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 move50%38%

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 (32% receive at least 28 days holiday compared with 27% of contractors receiving at least 27 days); 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 I commented on earlier, 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. In comparison only 16% of contractors had no home working and 7% were limited to a day per week. Employers in the housebuilding sector who are able to offer 2+ days of remote working per week will find it relatively easy to attract talent.

If you would like to discussion any issues relating to recruitment or retention of procurement and supply chain professionals in the construction related industries then please contact me: 

E: adam.richardson@arresourcing.com  

T: 0330 174 6801 or 07795 148 182

About the author:

Adam Richardson - Managing Director

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

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