Trends

According to Purchasing's 28th annual salary survey, compensation for purchasing professionals in 2008 rose on average 4%. That's a little more than the average for most other workers. And although recruiters and other compensation experts who specialize in placing purchasing pros say companies plan to keep pay increases steady next year, the job outlook for purchasers is bright and there is plenty of opportunity for raises in 2009.

Average annual compensation-salary plus bonus-for purchasing professionals in 2008 is $88,206, according to survey results. Among the highest earners this year are respondents with responsibility for managing categories of indirect spending, logistics and some commodities such as chemicals and metals.

Purchasers responsible for sourcing indirect spend categories such as travel services earn some of the biggest salaries reported by survey respondents: the average is $101,962. This figure reflects the value companies put on purchasing expertise at managing the category and controlling not only the rising costs of, but also spending on, travel.

About 10% of respondents say management added travel to purchasing's responsibilities in the past three years.

Those who buy commodities such as chemicals and metals have had a busy year, thanks to the volatility of prices. The Purchasing Chemicals Price index through October of 2008 was 32.5% higher than the index for all of 2007. The metals price index was 48% higher. But management has recognized purchasing's challenges in those markets and rewarded buyers with higher-than-average salaries. Survey respondents who source chemicals now make an average $96,713, while metals buyers are seeing paychecks on average of $90,468. The survey respondent with the highest compensation package this year lists metals as the commodity he's mainly responsible for sourcing. He earns $800,000.

Purchasing pros with responsibility for chemicals and metals typically make up a good share of the survey's pool of respondents (25% say they buy metals, 10% buy chemicals).

Likewise, purchasing pros with responsibility for transportation and logistics, another spend category affected by higher costs recently, earn more than the average survey respondent this year ($95,804). Managing logistics-and complex supply chains-has taken on new importance for most companies operating in an increasingly competitive global environment. More and more, they are asking the purchasing operation to manage the category. In fact, 25% of respondents say their companies have added transportation and logistics to their responsibilities in the past three years.

"Logistics is hot," says Tonia Deal, president of Tonia Deal Consultants in Hudson, Ohio, adding that opportunities for purchasing professionals have opened as companies rethink their strategies surrounding low cost country sourcing efforts. "It's not going away, but because of higher fuel costs and some problems with quality, companies are taking a hard look at bringing some sourcing back to North America and they are looking to procurement for expertise at helping them do this."

And, in general, companies are looking for purchasing professionals now with strong negotiation skills, says Deal. Further underscoring procurement's value, she says, is that "They are saying, 'Purchasing we need you to come in and manage these contracts, and do what you do best. Help us create win-win contracts in a down economy.'"

Kevin Rohan, director of procurement recruiting at J.P. Canon Associates in New York, agrees. "One of the positive outcomes of an economic downturn is that purchasing becomes a priority in terms of visibility and resources."

Source: http://www.purchasing.com