Edbury Daley Report – Performance-Related Pay on the Up

The latest report on the procurement recruitment market from Manchester-based recruitment firm Edbury Daley – now called “Procurement & Spend Management Insider” -  is well worth reading as ever (despite the scary picture of President Trump on the cover!).

The firm is strong on the solution provider side of our industry, doing a lot of recruitment for procurement software, outsourcing and consulting firms. That side is still looking pretty strong, according to this report. But in the software arena:

“… it’s not an entirely positive picture. There were redundancies at a couple of mid-tier players late in 2016 where sales were disappointing, and others where hiring is effectively on hold pending an increase in projects. We also know of two US owned spend management businesses that are thoroughly reviewing their European growth strategy before investing further in local talent”.

The consulting market is a “mixed picture varying according to market focus”. Edbury Daley perceive that firms with a mixed technology and consulting offer seem to be the most confident in their outlook. We might hazard a guess that this could include firms such as Efficio, GEP, maybe even Simfoni?  But the picture is less healthy in the outsourcing world.

“We see much evidence that procurement outsourcing seems to have declined. CPO's speak of disappointing results, high levels of risk and a desire to retain IP as some of the key reasons for their decline in appetite for this solution. Equally, many procurement functions are now more mature so they feel there is less need to look outside or can be found quickly in the expanded interim market”

The firm are still not seeing a huge post-Brexit vote effect, but “more recently with an increasing likelihood of the Government adopting a ‘hard Brexit’ strategy we are finding evidence of some nervousness. This may also be due to some less positive macro-economic indicators which taken together are beginning to unsettle the business world”.

There are interesting remarks also about the procurement interim market. The firm is seeing considerable confusion around the changes to IR35 legislation - or its interpretation anyway. The changes as we have commented are particularly affecting the public sector at the moment, and there is evidence that there could be an exodus of interims from some public sector organisations. That might of course be good news to the private sector if good people come onto the market.

The report also contains a piece covering salary and bonus trends in the solution provider markets, with case studies that demonstrate firms perhaps looking more to focus on performance-related pay rather than increasing core salaries. There is also a substantial article looking at the possible effects on global supply chains if tariffs and protectionism become a major issue.

Anyway, there is a lot of good reading and information in this well-written and well-presented report – worth downloading here.

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