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CIPS salary report: how do you measure up?

13 July 2017

Data from the latest CIPS/Hays Procurement Salary Guide and Insight 2017 report reveals that more than half of sub-Saharan professionals received a raise in the last year, but that men still earn more than women peers at senior level jobs. Where women hold their own salary-wise, however, tends to be in the areas of managerial, operational and tactical levels.
The report is co-ordinated by The Chartered institute of Procurement & Supply (CIPS) in partnership with recruiting experts Hays Procurement, and draws from reported information of over 4000 global procurement professionals. Responses to the survey were received from the UK, Australia, Middle East, as well as sub-Saharan Africa, and covered a wide range of professional levels including advanced professionals (for example, procurement director), managerial (such as a senior buyer), operational (buyer) and tactical (assistant buyer).
Andre Coetzee, managing director of CIPS Africa said in a release about the report that he was pleased to see the perceived value of procurement in the region rising. “With risk on the increase around the world ... procurement professionals have become the guardians of the enterprise to advise businesses on a range of issues,” he said.
Andre and the CIPS release also noted with pride that their MCIPS qualification continued to demonstrate value and have an affect on salary, arguing “MCIPS offers rewards and returns in equal measure as procurement managers earn on average, significantly more than non-members and are highly sought-after.”
Some top level insights included:

• Despite a downturn in the economy, 41% received a bonus in the last 12 months;

• 57% of Sub-Saharan professionals received a salary increase in the last 12 months;

• In a change from 2016 when the Private Sector reported the highest average salaries, last year's top performer was the Charity/Not For Profit sector;

• Men earn more than women at more senior levels, especially at Advanced Professional level where the pay gap is 26%;

• Unlike the UK and in line with last year, women tend to earn more than men at Managerial, Operational and Tactical levels;

• Procurement management professionals in Sub-Saharan Africa with MCIPS designation earn on average 38% more than non-MCIPS.


Chasing equality
The inequality between genders continues to be a cause concern. As highlighted above, the survey found that men were more likely to earn more at senior level, advanced level than women with a 26% gap. Specifically, men at an advanced professional level received the equivalent of around £31.9k, compared to women earning roughly £25.4k.

Climbing the (salary) ladder
Over half (57%) of respondents reported that they had received a salary increase in the last 12 months, and 41% received a bonus. In terms of benefits, pensions were the most common (55%). Interestingly, flexible working were highly reported by respondents in the UK and Australia, but did not even make the top five benefits list in sub-Saharan Africa. “Other benefits received by professionals in the region included private medical insurance (41%); death in service benefit (28%); free mobile (23%),” said the report.

Recruitment woes
Nearly half (48%) repondednts reported that they struggled to recruit the “right talent in procurement staff” within the last year. The challenges they faced therin included “budget restraints, candidate expectations, and a lack of sector skills and experience”.

A new set of skills
According to the study, “communication and soft skills were seen as crucial in job performance (75-89%) and could be seen as a reflection of how the profession has developed in the region in recent years”.

Perception of profession
The report also includes some revealing qualitative insights about the perception of the industry. Eight out of ten respondents agreed that “procurement was highly-regarded and valued in organisations”.
The report argues that “the most striking improvement” is the number of professionals who felt that peers and coworkers in other departments understood what procurement specialists can offer:

• 76% for directors/heads of other departments compared to 71% last year’

• and 70% for staff in other departments compared to 64% last year.


This, they suggest, “could be an indicator that the developing profession of procurement and supply is maturing in the region”.
You can request a copy of the report from www.cips.org/hays

Contributed by Kate Ferreira, the Contributing Editor of Bespoke Procurement Bulletin

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