CIPS News


Survey* finds sufficient numbers of talented procurement and supply chain professionals are difficult to find in South Africa, and MCIPS professionals can demand higher salaries

CIPS 12 June 2018
  • Professional members of CIPS receive 49% more in salary than their non-qualified counterparts
  • There continues to be a talent shortage of procurement and supply professionals in the region
  • A huge number of South African professionals received a salary increase in the last 12 months (80%)
  • Men earn more than women at advanced levels, except managerial and operational level where women earn more
  • SA is the only region in the world with higher than average salaries in the public sector
  • Professional members of CIPS receive 49% more in salary than their non-qualified counterparts
  • There continues to be a talent shortage of procurement and supply professionals in the region
  • A huge number of South African professionals received a salary increase in the last 12 months (80%)
  • Men earn more than women at advanced levels, except managerial and operational level where women earn more
  • SA is the only region in the world with higher than average salaries in the public sector

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.

MCIPS professionals are greatly valued in South Africa as 49% reported higher salary levels than their non-MCIPS colleagues. MCIPS professionals received an average of ZAR 778,950 compared to ZAR 778,950 for non-professionals. Despite this and because MCIPS is in high demand, recruiters were finding it difficult to find the right people at the right time, as 62% reported finding it challenging to find and retain talented individuals for their organisation.

South Africa is the only region that reported higher salaries in the public sector compared to other regions in the world and with the private sector. The average was ZAR 560,757 compared to the private sector at ZAR 543,018 which is encouraging news for public servants and government making the most of the public purse.

However, the disparity in salaries between genders still causes consternation. The largest pay gap is at advanced level with men earning almost half more (49%). But this is not all gloomy news as the situation improves at lower levels with women earning more at managerial level (8%), and at operational level (26%) but there is still a long way to go to bring gender equality to the profession.

Despite this, a huge number of all professionals (80%) received a salary increase, and 61% reported receiving a bonus. These are significantly higher figures than in other regions and is likely to increase over the coming years as 81% said good procurement and supply chain management was valued in their organisations.

Adbul Mahomed, Head of SA Professional Body at The Chartered Institute of Procurement & Supply, South Africa said, “It is a concern that the large gender pay gap has been identified by our survey.

“To help address this there is a huge drive within the South African Public Sector to appoint more women in senior leadership positions, thereby attempting to bridge gender inequality and promote diversity. However, the Private Sector, excepting those companies focused on conducting work with the Public Sector, continue to lag.

“In addition, we have seen a very high percentage of employers struggling to recruit talent. This is within the context of an unemployment rate that increased sharply due to several job cuts in 2017. Procurement, along with industries such as manufacturing and construction, was one of the hardest hit professions and we must all join together to address this and find a solution. By supporting more development of individuals and teams, we will strengthen good procurement practice, supporting public sector and private sector success.”

Scott Dance, Director Hays Procurement & Supply Chain, commented: “Finding the right people is of paramount importance to be able to build the best team. I therefore encourage both procurement leaders and professionals to review the CIPS Global Standard for Procurement and Supply 2018, a comprehensive competency framework which sets the benchmark for what good looks like in the industry. Only then can governments and business develop a plan of training and capacity building.

“Our report also highlights the ongoing issues that employers face when recruiting. Professionals with the right soft skills are of great importance, however can be difficult to find. This can be especially challenging when seeking talented senior procurement professionals, who are all the more important to bring about the change which is high on the agenda for many organisations.”

The full report also reveals more information about salaries and the most valued bonuses for Sub-Saharan professionals.

Request a copy of the report from www.cips.org/hays

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