In a year like no other, procurement has been thrust into the limelight. But despite the many challenges the profession has faced, it has shown itself to be both resilient and adaptable to change. The CIPS/Hays Procurement Salary Guide 2021 evaluates how the profession has fared during this tumultuous time and what the future holds.
The CIPS/Hays Procurement Salary Guide 2021 explores the key trends, challenges and opportunities for the profession.
Now in its 7th year, the guide is an independent global survey of over 6500 professionals, delivering in-depth statistical analysis and expert insights to support procurement leaders and their teams.
The 2021 report focuses on:
- Perceptions, Challenges, and Opportunities for Procurement Including the Skills in Demand and the Value of MCIPS.
- Benchmark Data for Salaries, Bonuses, and Benefits.
- Talent Management.
- Equality, Diversity & Inclusion (ED&I) in the Workplace.
Here are five of the most surprising revelations from the report.
1. In Australia and New Zealand, procurement salaries increased by 5.5%
Despite the rising unemployment, disruption, and economic recession brought about by COVID-19, procurement salaries in Australia and New Zealand have increased by 5.5%. Almost 50% of professionals have received a pay rise in the past 12 months and 63% received a bonus.
This is perhaps reflective of the fact that procurement professionals have stepped up and proved themselves to be indispensable in 2021. As the report highlights, the profession has become more visible within organisations, and awareness and appreciation of procurement’s role has skyrocketed.
2. In Australia, the gender pay gap is 17%
In Australia, the average gender pay gap between men and women is 17%.
To address this significant pay gap, procurement leaders must address unconscious bias in both their hiring, salary, and promotion decisions. Accommodating flexible working is also crucial when it comes to closing gender pay gaps, as women are more likely to be juggling multiple responsibilities such as childcare.
3. Employee wellbeing has improved since the outbreak of COVID-19
COVID-19 has inflicted stress on many people, but there is a silver lining for procurement professionals. As many as 47% of survey respondents have seen an increase in their overall well-being. The freedom to embrace flexible working and the opportunity to spend more time with family is likely to have contributed to this.
If procurement leaders want to attract, recruit, and retain top talent in the coming months, they will need to accommodate different working preferences and establish hybrid working models – the survey found that just 2% of procurement professionals would like to return to the office full-time. Remote working is the most common benefit currently available, with 77% of procurement professionals awarded this option.
4. Procurement is more highly regarded by business leaders
More than 71% of respondents believe that there has been a positive change in business leaders’ perception of the procurement profession, with 63% stating that they feel the profession is truly valued within their organisation. The pandemic has certainly provided procurement with the respect and recognition it deserves, and this is something professionals should seek to leverage in the coming months and years to secure greater influence and drive positive change.
5. Internal stakeholder management is the top skill for procurement in 2021
Across all sectors, more than 50% of procurement professionals believe that internal stakeholder management is the top skill for procurement in 2021. With the profession taking on more responsibility than ever before, effective communication and influencing skills are crucial.
Download the CIPS/Hays Procurement Salary Guide 2021 in full here.