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Size matters for only some in procurement salaries.

Talent and LeadershipBlog

Our latest salary survey details the relationship between company size and wages. Interestingly, for most people, salaries are unaffected by organisational size.

 

If the organisation annual turnover is less than €300 million, or over €10 billion, the earning of buyers or category managers remain the same. However, the difference for senior levels of management is significantly more profound.

 

For a company spending less than €300 million, CPOs would expect to chalk up an annual salary valued at a shade below €200,000 a year. At the opposite end of the spectrum, a head of purchasing earn more than double this figure in organisations over €10 billion.

 

This contrasts our data on the number of reports for which an individual is responsible. This shows a clear positive relationship – for all levels and job titles – between more subordinate staff and salary.

 

Although these mounting responsibilities are almost equivalent at the CPO-level (the link between the size of organisation and the procurement headcount) this relationship weakens at the lower levels. It’s not company size that impacts buyers’ salaries, but the size of their responsibilities.

 

Saying that, although company size may not directly impact salary in the short-term, an extended position at large, well-regarded institution may increase the likelihood of a buyer earning a reputation, and this is especially true when applying for a smaller organisation.

 

You can download a summary of the results of our Salary Survey here.

Jonathan Webb
Posted by Jonathan Webb