Average procurement professional salaries are on the rise, up by more than 7% in Australia, CIPS’ 2023 Procurement Salary Guide reveals.
In Australia, an average of 72% of procurement professionals received a salary increase.
Advanced professionals Down Under are earning an average of $208k, while the average salary across the board is $155k. Average bonuses in Australia were 12.5%. In New Zealand, $182k is the average salary for advanced professionals, while the average salary is $130k, and bonuses are 8.4%.
CIPS CEO Nick Welby, CEO, CIPS says the reputation of the profession is rising within organisations. “Our skills are valued and our sense of the contribution we make to our organisations and economies is increasing,” he said.
“Salaries and bonuses awarded at all levels of the profession continue to rise and are again outstripping those across the wider economy.”
In the UK, the survey shows a 7.3% average procurement professional salary increase, outstripping the UK national average pay increase of 6.5%.
The average salary for all UK procurement and supply chain professionals has been revealed as £53,359 (AUD $102,138) in 2023. The average pay reported for a Procurement Manager is reported at £49.2k, £41.6 for a Procurement Specialist and £113k for a Procurement Director.
In Australia, the gap between salaries on offer in the private sector and the public sector has widened from a 1% disparity to 3%. In New Zealand the disparity between the two sectors is significantly wider, at 9%.
Challenges being faced
The biggest challenge across the board is retaining staff, more than half of survey respondents reported.
Talent attraction headaches are being felt by the majority, with 76% struggling with the issue.
“That’s a growing trend, rising from 46% last year and 34% in 2021, and indicates that professionals with the right skills are in an increasingly stronger position when it comes to finding the role they want,” the study found.
Skills most in demand include Internal stakeholder management, negotiation, Influencing skills, supplier relationship management and communication
Scott Dance, UK&I Procurement Engagement Director, Hays says remuneration is not the only factor driving employee movement.
“Remuneration is by no means the only factor driving employee movement, however. Organisations prepared to take a creative and tailored approach to talent attraction will be best placed to secure the skills they need, with flexible working practices, a strong organisational purpose, defined sustainability commitments and an open and transparent culture just some of the key aspects of a role candidates expect to see communicated to them at the initial point of contact,” he said.
