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Survey* finds qualified MCIPS procurement and supply chain professionals in Australia receive 31% more in salary as challenges such as the pandemic highlight key procurement skills required by business

MELBOURNE / AGILITYPR.NEWS / June 30, 2020 /
  • Professional members of CIPS receive 31%  more in salary than their non-qualified counterparts 
  • Gender disparity in the profession remains  - men still earn more than women at most levels 
  • Employers struggle to find talent (67%)
  • 95% see technology as an enabler for procurement
  • 73% said perception of procurement has improved over previous 12 months
  • 65% said being seen as a strategic partner is top challenge

The findings from The Chartered Institute of Procurement & Supply Australia and & New Zealand (CIPS ANZ) are based on research conducted in September 2019 as 5135 respondents around the world contributed to the latest CIPS/Hays Procurement Salary Guide and Insights Report 2020 which evaluates a range of issues in procurement. The report gives insight on the perceptions of procurement, and benchmarks salaries and bonuses for different roles. The survey also highlights career aspirations and offers advice on how to attract the best talent in the profession across sectors and across the world, including Australia.

MCIPS professionals in Australia reported higher salary levels of 31% more than buyers without membership of CIPS. The average salary for all procurement and supply professionals was AUD $141,218 clearly demonstrating the strong value the designation offers businesses and organisations in the region.

As skills in procurement become increasingly valued and as the world’s supply chains have become disrupted, this value has also been reflected in procurement salaries overall. The average pay increase for all procurement professionals was 4.6% higher than the previous 12 months and compared to the national average of 2.2%.

The report also shows the breakdown by region in the country on average pay rises. For instance in Victoria and Tasmania, the rise for MCIPS professionals was 43% and 66% respectively.

The gender disparity in the profession remained in evidence, and in Australia the largest disparity was at senior level and Advanced Professional where men earned 13% more. At operational levels, men earned 18% more. All sectors across Australia evidently have more to do to address this gender bias, however, other benefits may have made up the shortfall in salary. The average salary across all levels for a man was AUD 150,660 but only AUD 128,166 for women.

In terms of bonuses, 32% of procurement professionals received a bonus in the previous month and the highest percentage of those receiving a bonus was in the private sector. Those with MCIPS were more likely to get a bonus (43%) and this was compared to 35% without the MCIPS designation. Perhaps unsurprisingly, professionals in the private sector saw higher levels of remuneration compared to other sectors.

With benefits, flexible working was the top requested benefit and the one most on offer to procurement professionals and this was across sectors and genders.

The challenges faced by procurement over the last 12 months are also highlighted in the report and though the perception of procurement is high, 65% still said that not being seen as a strategic partner to their business was the biggest challenge.

Employers of senior procurement professionals are increasingly looking for soft skills to solve the problems in their business and the survey bears that out. At advanced professional level, influencing and leadership skills came out top (89% and 84%) but at managerial (83%) and operational level (75%) it was negotiation skills employers were looking for.

Sharon Morris, General Manager, CIPS Australia and New Zealand said, ”The social, political and economic environment in which organisations are operating in is increasingly more complex, which has been compounded in recent months by the COVID-19 global pandemic. On top of this, the digital evolution is placing greater demands on procurement and supply chain management. Business leaders are progressively turning to procurement for solutions to reduce risks and find new opportunities. In fact, risk mitigation – whether continuity of supply, reputational risk caused by ethical and environmental issues, or ensuring the sustainability of sources of critical products and services – is fast becoming the prime focus of modern procurement.”

The number of procurement and supply chain professionals in Australia is expanding. Find out more from the CIPS website and to download the CIPS/Hays Procurement Salary Guide and Insights Report 2020.

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 membership of over 70,000 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; @CIPSANZ


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 2019 the Group employed 11,600 staff operating from 266 offices in 33 countries across 20 specialisms. For the year ended 30 June 2019:

– the Group reported net fees of £1,129.7 billion and operating profit (pre-exceptional items) of £248.8 million;
– the Group placed around 81,000 candidates into permanent jobs and around 254,000 people into temporary assignments;
– 18% of Group net fees were generated in Australia & New Zealand, 27% in Germany, 23% in United Kingdom & Ireland and 32% in Rest of World (RoW);
– the temporary placement business represented 57% of net fees and the permanent placement business represented 43% 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 
Giovanni Ferrante, CIPS Marketing Manager; giovanni.ferrante@cipsa.com.au; +61 3 8611 0320
*About the survey

The CIPS/Hays Procurement Salary Guide and Insights 2020 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 2019 via an online survey among professionals currently working in procurement and before the COVID19 pandemic. This year over 5000 professionals globally completed the survey.


Contacts

Trudy Salandiak

Ms

trudy.salandiak@cips.org

CIPS, Easton House

Phone: 01780756777

www.cips.org