2013-2014 psd procurement interim report 2013-14

INTERIM REPORT2013/14Procurement & Supply Chain

Interim Report 2013/14

The PSD Interim Report is now firmly established as one of the leading documents of its kind in the Procurement arena.

Interims continue to have an invaluable place across many sectors as they add considerable worth for a variety of reasons and this is reflected in the fact that nearly 60% of PSD’s database are contractors or would consider interim assignments. The findings of this report were a result of an online annual questionnaire which involved over 2500 professional procurement contractors.

Looking back at 2013, it has been a year of two halves, the first being a tricky navigation through continued uncertainty, budget restriction and mirroring the second half of 2012. But then coinciding with the temperature rises we enjoyed during this summer, we started to see signs of a return to confidence in recruitment which brought with it some of the healthiest rates we have seen in years.

Comparing the figures to 2012/13, the report has revealed that there is an increase of 6.5% on day rates between £400-£499 and an 5.5% increase in the £600-£699 bracket. This is a positive sign that overall day rates are improving and the need to secure the best talent is returning to what has been a flat market.

Whilst the current market cannot be described as buoyant, there are encouraging signs, with 46% of interims experiencing an increase in rate this year with that rate rise being on average 4-6%. The most popular interim roles for organisations in 2012/13 included Supplier Relationship Managers, IT Sourcing Managers and Hard & Soft FM Procurement Consultants. Reasons for the popularity of these contracts can be attributed to several factors including demergers, divestment, legislative changes, a reinvigoration of teams and the relocation of Procurement functions.

The duration of contracts for interims generally reflected the 2012/13 findings. However there was an 11% increase in

contract lengths between 8-11 months, highlighting again that the interim market has not been awash with an abundance of roles, but contracts have either been extended or have lengthened slightly. In contrast there was a considerable drop in contract lengths of 12 months and over.

The periods of time in between contracts has generally reduced compared to 2012’s findings, highlighting the fact that there has been slightly more confidence in the market & more budgeted roles in 2013. There was also encouraging news that interims who had experienced no time out of work had risen by 6%

There has been a small decrease in the amount of Interims operating through their own limited company, but an increase in the use of operating through an umbrella. This could be indicative of the fact that individuals have joined the interim market as a “stop gap” before securing a permanent role or a reflection of an unpredictable market. Another noticeable shift is that those interims engaged on PAYE basis had decreased on 2012’s findings, highlighting the changes in legislation that have taken place.

The social media choice of those that responded was again Linked-in (91.3%), up by 8.1% on last year. In contrast Google+ and Facebook showed a decline in those that use it, highlighting the fact that they are not seen as business tools. An interesting finding was that Twitter has shown only a moderate rise in usage as a business tool and still lags behind Linked-in by a considerable margin.

Recruitment Agencies remained the most popular way for contractors to secure their next assignment as 75.5% (a 3% increase on 2012) used this as their preferred method of securing a new role. There was however, a decrease (8.2%) in those securing a role through their own network. The other notable change in the results from last year was an increase in those securing their next assignment by recommendation or direct approach (6.6%).

Foreword

Interim Contacts

Principal Consultant:

Stuart Waltersstuart.walters@ psdgroup.com

0161 234 0310

Senior Consultant:

Jane Morganjane.morgan@ psdgroup.com

0161 234 0316

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Welcome to the annual PSD Procurement & Supply Chain Interim Report 2013/14.

0%£300-£399

£400-£499

£500-£599

£600-£699

£700-£799

£800-£899

5%

10%

15%

20%

25%

Q1 Q2Which of the following describes your job title?

What is your current day rate?

PSD actively works to identify the most talented Procurement professionals and deliver outstanding customer service


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y Procurement / Category Manager ...................................35.90%y Head / Director of Procurement / Category ....................23.40%y Other (please specify) ......................................................11.90%y Head / Director of Supply Chain ........................................5.60%y Chief Procurement Officer / Director ..................................5.60%y Buyer ................................................................................3.90%y Supply Chain Manager ......................................................3.60%y Head / Director of Supplier Relationship Manager ..............2.70%y Change / Transformation Manager ....................................2.40%y Contracts Manager ............................................................2.10%y Program Director / Lead ....................................................1.80%y Supplier Relationship Manager ..........................................1.20%

y £300-£399 .......................................................................19.6%y £400-£499 ........................................................................26.8%y £500-£599 ........................................................................16.1%y £600-£699 ........................................................................20.5%y £700-£799 ..........................................................................8.0%y £800+ .................................................................................8.9%

Our reputation has been built upon our ability to deliver highly effective recruitment solutions to our clients

Q3 Q4How much has your daily rate increased over the past twelve months?

Do you expect your daily rate to increase over the next twelve months?


y 0% ....................................................................................53.2%y 10%+ ................................................................................18.0%y 8-10% ...............................................................................12.6%y 4-6% ...................................................................................7.2%y 2-4% ...................................................................................4.5%y 6-8% ...................................................................................3.6%y 1-2% ..................................................................................0.9%

y Yes ....................................................................................40.0%y No .....................................................................................34.5%y Don’t know ........................................................................25.5%

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Q5 Q6What is the current duration of your contract?

What is the longest period in the last 12 months that you have been out of work?

We have over 10,000 professional Interims UK wide, offering a wide and diverse range of specialist skills

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y 0-3 months .......................................................................22.7%y 4-7 months .......................................................................35.5%y 8-11 months .....................................................................22.7%y 12-18 months ...................................................................13.6%y 19-24 months .....................................................................4.5%y 25 months + ........................................................................0.9%

y No time out of work ...........................................................50.9%y 2-4 months .......................................................................32.7%y 5-7 months .........................................................................7.3%y 8-11 months .......................................................................4.5%y 12 months + ........................................................................4.5%

0%0-3

months4-7

months8-11

months12-18

months19-24

months25+

months

10%

20%

30%

40%

Our reputation and continuous improvement produces strong relationships with talented Interim professionals and therefore our matching process between client and candidates is unrivalled

Q7 Q8What is the main reason for being an interim?

How do you secure assignments?

y Flexibility of role .................................................................23.6%y Lifestyle balance ................................................................23.6%y Financial ............................................................................20.0%y Lack of permanent job opportunity ....................................20.0%y Broaden Skills ...................................................................11.8%y Other ...................................................................................1.0%

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y Recruitment Agency ..........................................................72.5%y Own Network ....................................................................60.1%y Recommended/approached ..............................................37.9%y Direct by employer ............................................................14.4%y Other ...................................................................................3.3%

0%Own

NetworkRecruitment

AgencyRecommended/approached

Direct to client

Other

20%

40%

60%

80%

100%

Which new media/ social media do you use to support your career?

y Linkedin .............................................................................91.6%y Twitter .................................................................................7.2%y Facebook ............................................................................4.2%y Google+ ..............................................................................3.6%y Do not use Social Media ......................................................8.1%

Q9 Q10How do you operate as an interim consultant?

Interim professionals bring specialist expertise to major projects during corporate and cognitive restructuring, systems implementations and planned or unplanned strategic change

y Limited Company ..............................................................75.5%y Umbrella ............................................................................17.3%y PAYE ...................................................................................7.3%

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0%Linkedin Twitter Facebook Google+ Don’t Use

20%

40%

60%

80%

100%

PSD encourages Interim consultants to have a professional, up to date and business focused social media presence

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Social media is rapidly revolutionising the way interims secure contracts because it broadens their access to an enormous network. Networking is a fundamental part of every successful contractor’s career. Ensuring warm relationships with recruitment partners, which from the findings of this report, is still the favoured method of securing assignments.

As growth and positivity gains momentum, there will be a considerable need to guarantee that interim recruitment processes are robust and efficient, to ensure contracts are budgeted for and that the authority is there to hire. Only then will the strongest companies reap the rewards of securing the very best the interim market has to offer.

Summary

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2013 can best be described as very much “as we were” in 2012, however there are genuine signs of new projects, rate increases and more demand for the very best talent.


Interim Contacts

Stuart WaltersPrincipal [email protected] 234 0310

Jane MorganSenior [email protected] 234 0316

PSD Manchester2nd Floor, Abbey House74 Mosley Street, Manchester M2 3LW+44 (0)161 234 0300

2013-2014 psd procurement interim report 2013-14

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