- 64% of professionals received a salary increase and 43% received a bonus in the last 12 months
- MCIPS professionals In Australia earn 25% more
- The profession is now almost equal in senior positions for pay, though women in tactical roles earned more than their male counterparts
- 76% of those responsible for recruiting procurement staff have faced challenges finding talented staff
- Employers placing more emphasis on tertiary and CIPS qualifications
- Three-quarters of respondents in the region say perception of procurement improved in the last 12 months
MCIPS professionals in Australia earned AUD159,677 as an average salary, compared to non-CIPS earning AUD123,493. Those were the findings from over 4,000 procurement professionals from around the world, who 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 Report 2016 benchmarks different roles and profiles, and offers insights into career paths in procurement and supply management for permanent and interim contacts. Responses were received from the UK, Australia and Sub-Saharan Africa. Various levels of seniority completed the survey including advanced professionals (such as procurement director), managerial (senior buyer), operational (procurement specialist) and tactical (assistant buyer).
The guide is divided into sections relating to salaries and bonuses, procurement and supply management as a career, and the perception of procurement’s role in organisations.
Amongst the top five benefits for employees in the region was flexible working which was the single top benefit highlighted by 53% of respondents. The second benefit was support for study and/or career development at 43%.
Key skills to do the job were also uppermost in professionals’ minds. Communication and soft skills were highlighted as important to do the job well amongst 85-89% of respondents at all job levels, apart from tactical. At operational level, respondents cited relationship management (86%) and contract management (79%) as more important than communication and soft skills (64%). Employers also placed a stronger emphasis on CIPS qualifications.
One of the biggest positives from the survey found that 70% of respondents agreed that procurement is valued amongst Australian organisations and 75% said that perception of the profession had improved over the last 12 months. There was also an increased demand from employers in Australia seeking qualified professionals. Minority groups were also more integrated into supply chains, especially indigenous groups, with public agencies incorporating diversity policies, following the lead of the private sector.
David Noble, Group CEO, CIPS commented: “This year, in particular, it is obvious that there has been a significant rise in confidence. Businesses are becoming more confident that securing trained and professionalised staff is the route to success and the way to tackle some serious issues in the world. Over 35.8 million people are suffering from modern slavery and many are working in our supply chains.
“That 64% of professionals received a salary increase in the region comes as no surprise, as these are individuals with a high level of learning and experience. We see greater confidence amongst our professionals to demand higher salaries for excellence.”
Nicky Taberner, Director at Hays Procurement, commented: “The rising salaries shown by this year’s survey reveal the premium employers are prepared to pay for the best procurement professionals. It’s a competitive market, with demand outstripping supply of candidates, and employers are having to work hard to adapt their recruitment strategy and employee offering to attract and retain employees. Those employers who can embrace change and develop new hiring strategies will have the edge in what will remain a highly competitive market.”
John Glen, CIPS Economist and Senior Lecturer in Economics at Cranfield University said,
"This year’s report clearly indicates that the strong demand for procurement professionals has continued in the UK with demand consistently out-pacing supply, and is mirrored in Australia and Sub-Saharan Africa.
“In general the outlook for procurement professionals is good. Demand for their services outstrips supply and this is reflected in healthy wage appreciation. Perhaps just as important, is the increased desire on the part of employers to train and develop new entrants to the profession as well as seasoned professionals.”
Request a copy of the report from www.cips.org/hays #salary16