Next Level Purchasing Association Salary Survey – Not So Positive This Year

The Next Level Purchasing Association, independent provider of training, education and accreditation services to the procurement world, has issued their annual salary survey today.

We’ll start with the normal note of caution we tend to express around surveys. A sample size of over 1300 is not bad, but as it is global, and then the results are analysed by quite a range of factors (industry, country, length of time in procurement, indirect / direct), we worry that some of the more detailed analysis may come up with results that are not particularly statistically significant. Having said that, at the macro level at last, the findings are always interesting.

The big headline this year is that overall, procurement salaries are down a worrying 7.5% on 2014. But, - what is it they say about lies, damned lies and statistics? This is down really to the strengthening of the dollar last year, as the analysis converts salaries outside the US into dollar equivalents.

Take that out of the picture, and things look a bit different. Salaries still appear to be down in Africa, Australasia and Asia, but they are up by 1.6% in South America, 2.2% in Europe and 2.1% in North America. Still, that’s not very impressive, although not the disaster the headline suggests!

The findings on educational level are not as we might have expected – it appears that only having a “high school” level of education leads to a higher salary than a first degree and as much as folk with a Masters!  Years of experience does make a difference, although that is greater outside North American than indie – are our friends in the USA more inclined to promote on merit rather than experience?

You may not be surprised to learn that professionals with an SPSM or SPSM2 Certification form the NLPA earn significantly more than those without! It is quite significant too – 420K and almost $30K respectively. It would be interesting to see the comparison for CIPS and ISM as well, but that isn’t given.

There is more, including gender and role comparisons, so we will be back with more from the report next week – but you can download a copy in the meantime at the NLPA website.

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