- MCIPS professionals continue to earn more than non-MCIPS counterparts at 22% up from last year’s 16% with average salary of AUD161,756
- 66% of Australasia procurement professionals received a salary increase in the last 12 months same as 2017
- More women reported to be working in the profession and the pay gap reduces, but women earn less at every level apart from tactical
- 58% faced challenges in finding the right talent, up from 5% last year
Over 4000 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.
Since last year’s survey, the region has experienced some economic and socio-political changes that have had knock-on effects in the region. Higher immigration, and weaker economic growth, feeble salary growth and a struggle for talented staff, has businesses looking for value for money and quality more than ever before. Australia’s move from a resource to a service economy has affected access to skilled resources but once again the survey has proved that those professionals with MCIPS are the cream of the crop. Now a larger number of MCIPS members than last year, 22% against 2017’s 16% earn more than non-MCIPS qualified professionals, even in this challenged economy.
The search for talent continued to be fierce as 58% of procurement professionals responsible for recruitment said they struggled to find talented individuals in the last 12 months which was 5% more than the previous year. With less than buoyant economic conditions, more people are playing safe, and staying in their current roles. As businesses cite a tightening of purse strings, there was also less money for training and development of staff.
More disappointing news came in the form of continued gender inequality. Men continued to earn higher salaries than women at every level apart from tactical with a 16% gap at professional level. However at managerial level, the disparity has dropped from 27% last year to 9% and at professional level from 17% to 12% so there’s hope that improvement will continue in the following year.
Again, 66% of procurement professionals received a salary increase (same as last year) and 34% received a bonus which is an improvement on 31% last year. The bonus figure is still significantly lower than 2016 however, where 43% received a bonus. This highlights that there are still struggles and challenges for companies and their margins.
The demand for soft skills continued to rise with 80% of respondents at each level saying they were crucial for professionals to do their jobs well. Leadership and influencing levels were among the top five skills at advanced professional level, and influencing skills were highlighted at professional and managerial levels, with negotiation skills crucial at professional, managerial and operational levels.
Flexible working (57%) is on the increase as a benefit and was higher compared to last year’s 54%, along with a work cell phone (50%), and 30% for long-service awards. The support of professional membership took a small drop as fees paid by employers fell by 9% and career development by 7% largely due to the challenging economic environment.
The reputation of the profession took a small hit as 75% of respondents said the perception of procurement had improved compared to 77% last year but procurement still remained valued in their organisation. On the plus side 5% said that senior leaders such as directors and heads of had a greater understanding around what procurement could offer.
Mark Lamb, General Manager of CIPS Australasia said: “We are pleased to report an increased number of MCIPS female professionals and a reduction in the gender pay gap. This signifies a growing focus within the profession on relationship management skills and growth in the number of women making their way to senior leadership roles.
“And once again MCIPS is recognised in the region as valuable, and a sought-after designation across all sectors in the public and private sectors as talent is more important than lower salaries and companies want to procure sustainably, ethically and well with an eye on eliminating slavery in supply chains.
Tim James, Managing Director, Hays Procurement, Australia said, “Heightened skill shortages have been a key feature of Australia’s procurement recruitment market over the past year. With cost and efficiency improvements a focus, and technological advances offering decision makers greater visibility and control of their costs and contracts, procurement professionals are in solid demand.
“In response, private sector employers now elect to secure top talent long-term in permanent positions. Meanwhile temporary and contract recruitment remains the focus in the public sector.”
Jason Walker, Managing Director, Hays Procurement, New Zealand said, ”Across New Zealand we’re seeing demand for procurement professionals with end-to-end procurement experience and those with relationship building and stakeholder management skills. Procurement experts with strong category management experience are needed too, particularly if they possess an IT, property or construction background.
Meanwhile, the automation and digitisation of the supply chain will see demand rise for professionals with e-commerce experience. Another trend is the increasing number of long-term contract roles. Contract lengths have increased too, with 12 month and two-year contracts more common.”