- Professional members of CIPS receive 78% more in salary than their non-qualified counterparts
- A high proportion of employers struggled to find talented individuals in supply chain management (50%)
- 63% of employers would request MCIPS or study towards these qualifications for potential candidates
CENTURION, 15 November 2023 – The annual CIPS Salary Guide sponsored by Hays found procurement professionals earned substantially more than their non-trained counterparts. The research was conducted in January 2023 as thousands of procurement and supply professionals contributed to the report highlighting the skills, salaries, and rewards in the profession. The results from South Africa include the perceptions of procurement and benchmarks of salaries and bonuses for different roles. The survey also highlights the career aspirations of procurement professionals and offers guidance on how to attract the best talent in the profession across sectors and the world.
As the perception of the value of strong procurement and supply chain management skills increased during the pandemic and the awareness of supply chains rose amongst boards and CEOs of organisations and businesses, talent acquisition remained a problem as the search for highly skilled staff intensified. 50% of recruiters for procurement roles said that they struggled to find talent.
The perceived value of fully trained professionals remained high as 63% of employers stated they preferred someone with the MCIPS designation (fully qualified members of CIPS or studying towards becoming fully qualified).
The average salary for all procurement and supply professionals at a professional level, in job roles such as supply chain manager or senior category manager, was R637K in South Africa.
In line with previous years, there remains a substantially large difference between the pay of women and men; a gap of 20.2%, with men receiving the higher uplift in salary.
Turning to challenges faced by procurement in South Africa in the next year, 45% said budget constraints and 48% said managing risk in the supply chain.
In terms of skills, 67% said that leadership skills were the most important for Chief procurement officers or other senior positions. At the professional managerial level, 59% said contract management, 52% managing relationships with suppliers and 48% said negotiation skills.
Craig O’Flaherty, Head of CIPS for Business, South Africa, said, “Whether you’re looking at how best to develop your team, or seeking the best move for you as an individual, I hope this year’s guide will provide you with the information and insights you need to make a well-informed choice.”
Nick Welby Group CEO, CIPS said, “Year after year the reputation of our profession is rising within organisations and across the business. Our skills are valued and our sense of the contribution we make to our organisations and economies is increasing.
“Salaries and bonuses awarded at all levels of the profession continue to rise and are again outstripping those across the wider economy. Amongst the most highly qualified in our profession – individuals who have achieved MCIPS – are commanding significantly higher salaries than their non-MCIPS colleagues and are increasingly sought after across all sectors.
“However, it is worth highlighting that behind the positive headlines there is also another picture. Skills shortages, employee turnover, a scarcity of talent, difficulties recruiting and persistent imbalances in salaries measured by gender and ethnicity remain and have a significant and negative impact on society and economies around the world.”
Scott Dance, Director at Hays, specialising in Procurement & Supply Chain recruitment, said: “Simply put, there’s a supply and demand problem when it comes to talent. Employment levels are currently at their lowest since the 1970s, and recent economic volatility is creating nervousness in the market around moving or changing roles. This is creating a bidding war for talent, and the best candidates can expect multiple offers on the table at any one time. This is inevitably driving salaries up, and we expect them to continue to grow over the coming three to six months – or as long as the uncertainty lasts.”
The number of procurement and supply chain professionals in South Africa is rising. Find out more and download a copy of the report from the CIPS website with a guide on how you can further your career.