CIPS has released its global Procurement & Supply Salary Guide in partnership with Hays, revealing ANZ procurement professionals received the lowest pay rise over the past 12 months.
Despite the disappointing 5.8 percent increase – which fell short of the 8 percent global average – the region reported the highest proportion of professionals receiving a pay rise (alongside Asia), with 74 percent of respondents claiming their wage has been boosted.
Across the board, men reported higher average pay increases than their female colleagues, with the gender pay gap widening as procurement professionals move higher up the career ladder.
Australia reported the second highest gender pay gap globally, with men earning 24 percent more than women, alongside Sub-Saharan Africa (39 percent) and New Zealand (22 percent).
Equality, diversity and inclusion (ED&I) appears to be an area that needs improvement in Australia and New Zealand, with the lowest proportion of companies prioritising this (35 percent), in contrast to 44 percent of companies in Europe who place ED&I at the top of their list.
Scott Dance, UK&I Procurement Engagement Director at Hays said the ability to leverage differences in order to improve business outcomes has never been more essential, with research now consistently showing that diverse organisations are more likely to financially surpass their less diverse contemporaries.
“If they’re to perform at a competitive level, organisations need to ensure their workforce represents the communities they operate in, and if we’re to benefit from the combination of unique experiences that different people bring, then diversity of representation in procurement is crucial,” he said.
A significant 58 percent of ANZ procurement professionals state working from home is their top favoured benefit, ahead of global employees (50 percent).
This is followed by flexible working hours (56 percent in ANZ vs. 46 percent globally) and private medical insurance (42 percent in ANZ vs. 46 percent globally).
Support for study/career development featured globally at 37 percent, followed by car allowance/company car (32 percent).
Across the board, 58 percent of those responsible for hiring procurement and supply professionals say they have struggled to find the right talent.
However, this was pronounced in Australia and New Zealand, with 79 percent of respondents revealing they have experienced difficulties in hiring over the past 12 months.
“A consequence of the disruptions of the past five years and ongoing pressure on the procurement and supply chain function is that competition for talent is fierce,” said Dance.
“Employers will need to act fast to secure the professionals they need to help their organisations navigate the challenges still to come, meaning hiring managers should be briefed as a matter of priority as soon as a vacancy is identified. With many candidates often having up to four or five job offers to choose from, speed to hire is more important than ever.”
On the flip side, only 39 percent of ANZ procurement professionals are looking to change jobs in the next 6-12 months, which is the second lowest figure behind the UK (29 percent).
“The ongoing political and economic volatility against which the procurement sector is operating is creating some reticence among professionals when it comes to moving jobs, many of whom are reluctant to leave what they perceive as a secure position. This reduced pool of active candidates is naturally piling additional pressure on employers looking to hire,” added Dance.
Globally, the most important factors that individuals consider when weighing up new roles include salary (81 percent), career progression (72 percent), reassurance about job security (69 percent), whether a company is committed to staff training and development (67 percent) and the content of the work (66 percent).
Commenting on the findings, CIPS Chief Executive Officer Matt Howell said his views as a leader are pretty consistent with those shared in the report.
“First, your people will want to know the organisation’s direction of travel and believe that it is being run in a way that will deliver on that strategy. Second, your people want to feel valued. That will come partly through their salary, benefits and bonuses. But it is also about knowing that the organisation you work for has a positive societal and environmental purpose,” he said.
“And third, your people will want to grow personally and professionally. It is heartening to see how much individuals and employers value professional procurement and supply qualifications and MCIPS.”
To learn more, download the report here.
