CIPS News


Survey* finds 87% of procurement professionals received a salary increase in 2018 up 7% on the previous 12 months as the battle for talent intensifies

CIPS 18 June 2019

56% of SA procurement professionals received a bonus in 2018, more than the other regions of the world CIPS surveyed

  • Highest salaries seen in the private sector but the public sector also had a buoyant year
  • There continues to be a talent shortage of procurement and supply professionals in the region as 71% of respondents struggle to secure talent, up 9% from 2018
  • Men continue to earn 22% more than women, but the gap narrows by 9% across all levels
  • 56% of procurement professionals received a bonus in 2018 more than the other regions of the world CIPS surveyed

 

Over 3000 global procurement professionals* contributed to the latest free salary guide from The Chartered institute of Procurement & Supply (CIPS) in partnership with recruiting experts Hays Procurement.  The CIPS/Hays Procurement Salary Guide and Insight 2018 report benchmarks salaries and bonuses for different roles and profiles, and offers insight into career paths in procurement for permanent and interim contracts and across sectors.

Recruiters were still finding it difficult to find the right people at the right time compared to previous years as the search becomes more challenging. 9% more respondents than last year said it was hard to find and retain talented individuals (71% up from 62% last year).

Average private sector salaries were the highest this year at ZAR524.193 compared to the public sector average of ZAR509.925 which dropped by 9% compared to 2018 as the country faced economic challenges. However, average salaries increased substantially by 24% on average at Professional level and marginally at Managerial and Operational levels, but there were falls at other levels. Advanced Professionals saw a drop of 28% and those working at tactical levels saw their salaries fall by 25%.

The gender pay gap showed some improvement where the survey found a 9% average improvement but men continued to earn almost a quarter more at 22%, compared to 31% in 2018. The disparity between the genders appears to have taken a strong hold.

Though inequality continued, there was good news for professionals and their rewards.

56% of procurement professionals reported receiving a bonus which is more than professionals in other regions of the world that CIP surveyed such as Australasia, MENA, Sub-Saharan Africa and the UK.  This is further evidence of the value businesses place on procurement as 77% of professionals agreed that procurement’s reputation has improved.

Hemant Harrielall, Head of CIPS Southern Africa said, “A lack of sector skills became even more of a concern and issue in 2019 than had previously been the case. However, this does present an opportunity for individuals and organisations who are committed to professionalising and upskilling via routes such as CIPS globally-recognised qualifications.

“But one of the most notable shifts we have seen in South Africa in recent years has been in the perception of procurement, with 77% of our survey respondents agreeing that procurement is valued within their organisation. That’s fantastic news.

“The profession is now seen as the strategic turnaround in many organisations and it is hoped that this is having an effect on the amount of influence procurement people are beginning to have at the highest levels.”

Scott Dance, Director Hays Procurement & Supply Chain, commented: “Creating a pipeline of talented procurement professionals with the right skills not only for the short-term, but for the long-term too, will stand organisations in good stead. It will help them to continue building positive perceptions, ensure they are better equipped to face the challenges and enable them to access the skills they need to drive growth.

We hope you find the insights covered in this report useful in your workforce planning, or as a guide for your own career development.

The full report reveals more information about salaries and the most valued bonuses for South African professionals.

Ends

Notes to editors:

The Chartered Institute of Procurement & Supply

The Chartered Institute of Procurement & Supply (CIPS) is the world’s largest procurement and supply professional organisation.  It is the worldwide centre of excellence on procurement and supply management issues.  CIPS has a global community of over 200,000 in 150 different countries, including senior business people, high-ranking civil servants and leading academics.  The activities of procurement and supply chain professionals have a major impact on the profitability and efficiency of all types of organisation and CIPS offers corporate solutions packages to improve business profitability. 
www.cips.org; @CIPSNews

About Hays

Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 31 December 2018 the Group employed 11,700 staff operating from 262 offices in 33 markets across 20 specialisms. For the year ended 30 June 2018:

 

– the Group reported net fees of £1.072 billion and operating profit (pre-exceptional items) of £243.4 million;

– the Group placed around 77,000 candidates into permanent jobs and around 244,000 people into temporary assignments;

– 19% of Group net fees were generated in Australia & New Zealand, 26% in Germany, 24% in United Kingdom & Ireland and 31% in Rest of World (RoW);

– the temporary placement business represented 58% of net fees and the permanent placement business represented 42% of net fees;

– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Chile, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA

www.hays.co.uk; @Haysnews

Press contacts:

Helen Flannery, Hays; helen.flannery@hays.com; +44 (0)20 3040 0282

Trudy Salandiak; CIPS PR Manager; trudy.salandiak@cips.org ; +44 (0) 1780 761576; 07554 400 731

*About the survey

The CIPS/Hays Procurement Salary Guide and Insights 2019 allows procurement professionals and employers to benchmark salaries and bonuses for different roles and profiles; highlight career aspirations; understand perceptions of procurement.

The findings in this report are based on research conducted in September 2018 via an online survey among professionals currently working in procurement. This year over 3000 professionals globally completed the survey.

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