Salary increases for procurement professionals reached 6.6%, with more than half of professionals receiving a raise in the last year, the CIPS Salary Guide has revealed.
More than three quarters of the profession (77%) added a bonus to their pay packets.
- 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
Average bonuses were reported as 12%, while the gap between males and females in procurement is 6% – a reduction on last year’s gulf of 17%.
The average salary for Down Under in procurement is $159,000.
Perception of procurement improving
The profession appears to be enjoying a “purple patch” in terms of recognition and value internally, suggestions point to the role of the function post pandemic.
About 70% of professionals feel the perception of procurement has improved the past year.
“The strategic significance of the function, and the role it’s played in mitigating the impact of a global supply chain crisis, has become increasingly visible and consequently much more valued,” says Procurement and Supply Chain Director, Scott Dance from Hays – supporting partner for the salary guide.
“As a result, salaries in procurement are continuing to rise.”
Underpinning the guide was a global survey of over 7000 professionals.
Challenges
The war on procurement talent is not slowing down. The metrics for attracting and retaining staff have jumped more than 10 per cent on 2021 results, with 46% this year citing recruitment as an issue.
“The pandemic has inspired job movement and it has become a candidate’s market. Attracting and retaining talent is always a challenge but strong career growth opportunities, the option to gain qualifications and competitive remuneration all mitigate the risk,” the guide says.
Top five challenges
- Managing risk in the supply chain – 56 %
- Being seen as a strategic partner to the business – 48%
- Attracting staff with the right skills – 46%
- Retaining staff – 46%
- Ensuring engagement with procurement at the outset of a project – 39%
When it comes to skills, supplier relationship management broke into the top three list of most important skills – needed in four of the job levels.
“As procurement professionals’ roles continue to evolve, so do the skills needed: soft skills dominate the top skills in demand across all levels. A strong procurement professional has technical ability mixed with fine-tuned soft skills,” the guide says.
Salaries on the rise
The breakdown of average salaries suggests one of the biggest salary-improving career moves is the transition from Operational to Managerial level, coming with an average $41,000 rise. The move from Professional to Advanced Professional sees an average increase of A$44,039 – 26%.
The salary story for New Zealand is similar to Australia, steady increases in salaries are reported from from Operational through to Advanced Professional level, indicating a healthy career progression.
Employee benefits
On work-life balance changes, respondents indicate it has improved than stayed the same or got worse. Almost half, 45%, of Public servants believe it has improved.
When it comes to work locations, a full office working life only appeals to 2% or 3%. Interestingly, fully remote working isn’t popular either. Just 5% in the private sector and 3% in the public sector interested were interested in fully remote working scenarios.
“It’s all about a balance: a hybrid existence with a tilt towards home working – or a straight even split of time – is most popular among respondents,” the guide says
Procurement people looking to jump ship
Nearly a third (31%) of respondents said they expected to move to new role in the next 12 months, 17% are looking for a sea-change in the next six months.
For those seeking a move, salary was the main consideration for 67%.
Download the CIPS 2022 Salary Guide.
