Procurement salaries have rebounded strongly in Australia following last year’s decline, while New Zealand has experienced a reversal of fortunes, according to the CIPS Procurement & Supply Salary Guide 2026.
The annual guide, which is informed by regional responses and produced in partnership with Hays, shows the average procurement salary in Australia has climbed to A$169,833, up from A$157,102 in 2025 and A$162,625 in 2024.
However, across the Tasman, the average procurement salary has fallen from NZ$144,568 in 2025 to NZ$137,981 in 2026 as the country continues to grapple with sluggish economic conditions.
Despite the contrasting salary outcomes, procurement professionals across both countries continue to enjoy pay rises that comfortably outpace inflation.
The average salary increase sits at 5.1 percent, compared with inflation rates of 2.9 percent in Australia and 2.8 percent in New Zealand, with almost three-quarters of respondents (73 percent) receiving a pay rise over the past 12 months.
Professional accreditation continues to deliver a significant financial advantage, according to the report, with procurement leaders holding MCIPS earning an average salary of A$194,506 in Australia and NZ$176,026 in New Zealand, compared with A$157,932 and NZ$122,481 for non-MCIPS professionals.
However, the report suggests employers are not focused on professional qualifications, with just 34 percent saying they would prefer to recruit candidates who either hold MCIPS or are working towards it.
Bonuses also remain underutilised as a recruitment and retention tool, with just 37 percent of procurement professionals across Australia and New Zealand eligible for a bonus, which is the lowest proportion of any region surveyed.
In this respect, the divide between sectors is particularly stark, with 67 percent of private sector respondents receiving bonuses, while eligibility falls to just 9 percent in the public sector and 5 percent in the charity and not-for-profit sector.
“Employers in Australia and New Zealand should rethink how they use their remuneration strategies to attract and retain talent,” said Sam Achampong, regional director, Middle East, Africa and Asia Pacific, CIPS.
“Bonuses can be a very effective way of motivating procurement and supply teams to hit organisational targets, but many employers are not currently including them in remuneration strategies, particularly within the public and not-for-profit sectors.”
The report also highlights a notable shift in what procurement professionals value from their employers.
Flexible working hours have overtaken hybrid working arrangements as the most sought-after employee benefit, nominated by 59 percent of respondents.
Hybrid working remains highly desirable, and support for study and career development continues to be a valued benefit, even though it slipped slightly in this year’s rankings, overtaken by private medical insurance.
“Providing support for study or career development is an excellent way for employers to demonstrate that they are invested in the long-term success of their people,” said Jonathan Cheung, general manager, Asia, CIPS.
“It is also an effective strategy for attracting and retaining talent in a tight labour market.”
Elsewhere, career mobility remains high, with 39 percent of procurement professionals expecting to seek a new employer over the next 12 months.
While salary remains the biggest motivator for changing jobs, cited by 75 percent of respondents, workplace culture is becoming increasingly influential.
The quality of the management team ranked second at 61 percent, narrowly ahead of flexible working policies beyond statutory requirements at 60 percent.
Conversely, nearly half of respondents who intend to stay with their current employer say preserving their existing work-life balance is the primary reason.
Recruitment challenges also persist, although their nature appears to be changing, with almost two-thirds (65 percent) of employers struggling to recruit procurement talent during the past year.
Rather than simply facing candidate shortages, employers identify finding candidates who are the right organisational fit as their biggest challenge, rising from 48 percent in 2025 to 58 percent this year.
“Organisational fit refers to how well a candidate’s values, behaviours and work ethic align with those of the employer,” said Linda Todd, business director, Procurement Public Sector, Hays.
“In procurement, this often relates to communication and stakeholder skills, which are central to the role.
“Employers are finding it challenging to secure the right fit because expectations around work-life balance and working models vary widely between jobseekers and organisations.”
As AI reshapes procurement, the profession is leaning harder into strategic and interpersonal skills.
Internal stakeholder management is now viewed as the most important skill for procurement professionals, followed by influencing and communication skills.
Looking ahead, respondents overwhelmingly believe critical thinking and problem-solving will become the most valuable capability in the AI era, cited by 73 percent, alongside ethical and responsible AI use.
“Internal stakeholder skills enable procurement and supply professionals to act as trusted strategic advisers to their organisations,” said Chris Iliadis, acting general manager for CIPS Australia, New Zealand and the Pacific Islands.
“Those in Australia and New Zealand clearly see the opportunities this brings. By investing in developing these skills, they can bridge the gaps between departments and build the credibility to influence vital strategic decisions.”
Confidence in the profession also continues to grow, with almost seven in 10 respondents believing procurement’s standing within their organisation has improved over the past year.
Three-quarters say the profession has the ability to drive positive social change through equality, diversity and inclusion initiatives, alongside environmental and social outcomes.
The survey also points to growing confidence in AI’s role in procurement, with four in five respondents expecting AI to automate transactional processes.
Two-thirds (67 percent) believe it will improve operational efficiency and a similar number (65 percent) expect it to strengthen supply chain risk identification and decision-making.
The CIPS Procurement & Supply Salary Guide 2026 is based on responses from 7,130 procurement and supply professionals worldwide, including 353 respondents from Australia and New Zealand.
