Procurement professionals across Australia continue to significantly out-earn workers in other regions, despite Australia recording a drop in salary and the lowest average pay rise for the second year running, according to the 11th edition of the CIPS Procurement & Supply Salary Guide.
Where do you sit on the salary scale?
Produced in partnership with Hays, the report reveals the average procurement salary in Australia has fallen to A$157,102 in 2025, down from A$162,625 in 2024. Despite this dip, procurement roles still command around 1.5 times the average Australian full-time wage (A$102,742).
Over the ditch, market pressures have pushed average New Zealand salaries up, from NZ$130,753 in 2024 to NZ$144,568 in 2025, meaning procurement professionals in New Zealand now earn approximately 1.7 times the average NZ salary (NZ$86,632).
Nearly two-thirds (63 percent) of procurement and supply professionals globally have received a salary increase over the past 12 months (72 percent in Australia and New Zealand), according to the Salary Guide 2025, with the average salary increase sitting at 7.2 percent.
Sub-Saharan Africa leads the way recording a 14 percent salary boost, followed by MENA at 12.7 percent and Asia at 9.5 percent. However, Australia and New Zealand sit at the bottom of the pile and below average at 5.1 percent, behind the UK (5.75 percent), Europe (5.9 percent) and South Africa (6.5 percent).
Possessing MCIPS appears to be a game-changer, according to the report, with MCIPS earning 59 percent more, on average, than their non-MCIPS peers.
“Employers should always align salaries with the level of experience they require. When an employee leaves a job, they are often at the higher end of their pay band, meaning a replacement with similar expertise is likely to require equal or higher compensation,” said Kate Langham, Business Director, Procurement Private Sector, Hays.
“Employees rarely leave a position for the same salary, so offers must be competitive to attract talent and retain them long-term.”
In every region, there was a gender gap in terms of salaries, with women earning less than men on average – sometimes significantly so.
Langham says employers can play an important role in addressing the gender gap.
“Steps that organisations can take to help understand and reduce gender pay gaps include ensuring inclusive recruitment processes are in place, undertaking regular salary benchmarking exercises, and building formalised and structured approaches to training and promotions,” she said.
Bonuses and benefits
When it comes to bonuses, just 36 percent of respondents in Australia and New Zealand report that they are entitled to a bonus, which is down from 43 percent in 2024.
This is the lowest percentage of any region, with the global average sitting at 54 percent. However, those who do receive bonuses align with the global monetary average of 11 percent of annual salary.
Worldwide, there continues to be a mismatch between how employers define whether an individual receives a bonus and how employees would like their bonuses to be decided, says CIPS.
Working from home is the benefit that is most received and desired in Australia and New Zealand (66 percent), which is shared with Europe and the UK, while those in Asia, MENA and Sub-Saharan Africa seek support for study and career development.
ANZ procurement professionals also value flexible working hours (62 percent) and support for study/career development (37 percent), ahead of other benefits such as private medical insurance and car allowance/company car.
Almost three-quarters of procurement and supply professionals (74 percent) said they are conscious of the need to enhance and develop their skill sets, believing that procurement and supply chain qualifications will become more valued over the next 10 years.
“In a talent-short market, it’s vital that employers offer varied and attractive benefits. Many professionals prioritise work-life balance and flexible working arrangements – sometimes even more than salary. While some employees are open to returning to the office, they often value flexibility around what that looks like,” said Linda Todd, Business Director, Procurement Public Sector, Hays.
Talent shortages and employee mobility
Continuing last year’s theme, employers have reported severe hiring challenges, with 66 percent in the ANZ region struggling to find the right candidates (compared to 59 percent globally) but, on the bright side, this is lower than last year (79 percent).
In Australia and New Zealand, the primary challenge is a lack of available candidates (72 percent), which is mirrored by employers in the UK (59 percent) and Europe (52 percent).
Overall, 40 percent of respondents globally (and in Australia and New Zealand) are looking to switch employers within the next 12 months, motivated primarily by salary (81 percent), career progression (73 percent) and reassurance about job security (69 percent).
The five top reasons why procurement and supply professionals are looking to move jobs in 2025 are the same as in 2024.
“A significant barrier to hiring is the misalignment between expected experience and salary levels. Employers that are flexible with requirements, such as considering transferable skills, are often more successful in hiring,” said Todd.
“Another challenge is that many procurement teams are not large enough to hire frequently, meaning hiring managers may lack up-to-date market insights on salaries and skills. Employers should seek free benchmarking advice – regardless of whether they’re planning on using an agency to hire – to ensure their salary expectations align with current trends.”
Perceptions and diversity
Globally, 68 percent of respondents say that procurement and supply is very much valued within their organisation (up from 66 percent in 2024), with 70 percent agreeing that the perception of procurement and supply has improved in the past 12 months.
“These findings should come as no surprise given the critical role of procurement and supply in driving organisational success,” says CIPS.
“Recent trends and developments – including economic uncertainty and the widespread turmoil over tariffs – have certainly underlined the importance of the profession.”
Elsewhere, nearly three-quarters (72 percent) of respondents globally say that directors and heads of departments within their organisations understand what procurement and supply specialists can offer, but there is still work to be done at team level, with 41 percent saying staff in other departments don’t understand procurement and its benefits.
A huge 81 percent of global respondents believe that procurement and supply can enable positive social change through its ability to influence equality, diversity and inclusion (ED&I), as well as environmental, social and governance (ESG) issues.
“The procurement and supply function can showcase social good through supply chains, sustainability and social value,” added Langham.
“This is more important than ever, as the younger generations entering the workforce tend to be more attracted to organisations with strong social values. By driving meaningful change, the procurement and supply function can support talent attraction and retention efforts for businesses.”
Commenting on the findings, Ben Farrell MBE, CIPS Chief Executive Officer said the guide highlights that salary is the main consideration for those looking to move jobs, while skills development is another crucial factor.
“As an employer, you face the challenge of attracting and retaining talented people in an era of disruption, uncertainty and ongoing skills shortages,” he said.
“Procurement and supply professionals want to futureproof their skills, so they can thrive in the workplace of both today and tomorrow. What’s more, it’s in their employers’ interests to support them, since skilled employees can significantly boost organisational performance.”
CIPS received feedback from 5,786 global procurement and supply professionals, spanning seven key regions. Respondents were grouped into different job levels according to their job titles: Influencing (16 percent), Leading (14 percent), Managing (27 percent) and Delivering (36 percent).
