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The Chartered Institute of Procurement & Supply has released its annual guide on the latest trends in procurement and supply, and the results reveal the importance of trained professionals
The CIPS Procurement Salary Guide 2022: South Africa paints a clear picture of just how valuable procurement and supply professionals have become to organisations in an increasingly volatile and uncertain world.
As the war in Ukraine escalates, inflation spikes, energy and fuel costs rise, and new supply chain disruptions overshadow post-pandemic marketplace recovery, so the strategic function of procurement in mitigating the impact of these challenges has become greatly valued, the report indicates.
South Africa is no exception.
Managing Director of the Chartered Institute of Procurement & Supply (CIPS) for Southern Africa, Dr. Sara Bux, shared that 65 per cent of those surveyed for the 2022 Procurement Salary Guide believe the perception of procurement has improved in the past year, with 69% saying they feel valued within their organisation while being engaged from the time a project starts.
The Salary Guide published by CIPS in partnership with global and human resources multinational Hays, the report provides valuable insights into trends in the procurement profession based on survey findings of over 7,000 industry role players from around the world.
Notably, in South Africa the appreciation of procurement and supply chain management professionals’ role is increasingly reflected in their salaries, one of the factors monitoring how much the profession is valued in the country. This year, 57 per cent of respondents received a pay rise in the past 12 months – an increase on last year’s 47% – while 75% received a bonus.
The average annual salary for all procurement and supply professionals in the region is now R645 000, up from R605 000 in 2021. At the top end of the scale, advanced professionals are earning R1.5m a year.
Despite a challenging economic environment, such buoyancy and resilience in salaries is encouraging and reflects the increasing status and value of the procurement function.
Bux also points out that 67 per cent of respondents feel that directors and heads of departments understand the value procurement brings to their organisation, both at a strategic and talent level.
The positive sentiment in the sector means there has never been a more opportune time for procurement professionals to grow and flourish.
“The light the pandemic has shone on the strategic importance of procurement has also highlighted the skills needed to thrive in the role and drive further value,” Bux says.
“Excellent negotiation skills underpin successful procurement and are rated as key by employees. It is also the skill most in demand from hiring managers. Ensuring your organisation provides training in negotiation skills will not only be important for retaining talent but is also key to tackling the challenges that lie ahead for the profession.”
Procurement professionals are acutely aware of these challenges.
Forty-four percent of those surveyed believe managing risk in the supply chain will be crucial, while the same percentage considers budgeting restraints to be a potential hurdle. Managing costs while maintaining quality (42%), attracting staff with the right skills (34%) and recovery from the pandemic (33%) also feature among 2022’s challenges.
In terms of the profession itself, Bux is concerned about the gender pay gap. “While it is pleasing to see it has narrowed from 35% to 28%, there is still much work to be done towards addressing this.”
Other important takeouts from the 2022 CIPS Procurement Salary Guide include:
- 45 per cent of employers say lack of formal training is a challenge: Almost half of all organisations (47%) say they have struggled to find the right procurement talent over the past year;
- 92 per cent of respondents agree that a diverse and inclusive workplace helps improve staff retention: The same percentage agrees that an inclusive workplace helps employees reach their full potential, while 91% say it is a key factor in improving team productivity.
- 26 per cent believe their work-life balance has improved as a result of Covid-19: This is based largely on 40% of those in the public and private sectors saying they are happy to work remotely, whether fully or part-time.
“The end of the year is upon us and we are all looking forward to a well-deserved break. Make 2023 a year of growth by brushing up on essential skills for procurement professionals. View our 2023 Skills Training Calendar and start booking now,” advises Bux.
Chartered Institute of Procurement & Supply
The Chartered Institute of Procurement & Supply (CIPS) is the leading international body representing purchasing and supply management professionals. With over 64,000 members in 180 countries, CIPS is the worldwide centre of excellence on procurement and supply management issues. Our purpose is to inspire and empower procurement professionals to drive the transformation of supply chains for a more ethical and sustainable society. The activities of procurement professionals have a major impact on the profitability and efficiency of all types of organisations. CIPS offers corporate solutions packages to improve business profitability.
