Recruiters are still finding it difficult to find the right people at the right time compared to previous years as the search becomes more challenging.
A survey indicates that 9% more respondents than last year said it was hard to find and retain talented individuals (71% up from 62% last year).
More than 3 000 global procurement professionals 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 2018 report benchmarks salaries and bonuses for different roles and profiles, and offers insight into career paths in procurement for permanent and interim contracts and across sectors.
Average private sector salaries were the highest this year at R524.193 compared to the public sector average of R509.925 which dropped by 9% compared to 2018 as the country faced economic challenges.
However, average salaries increased substantially by 24% on average at Professional level and marginally at Managerial and Operational levels, but there were falls at other levels. Advanced Professionals saw a drop of 28% and those working at tactical levels saw their salaries fall by 25%.
The gender pay gap showed some improvement where the survey found a 9% average improvement but men continued to earn almost a quarter more at 22%, compared to 31% in 2018. The disparity between the genders appears to have taken a strong hold.
Although inequality continued, there was good news for professionals and their rewards: 56% of procurement professionals reported receiving a bonus which is more than professionals in other regions of the world that CIP surveyed such as Australasia, MENA, sub-Saharan Africa and the UK.
This is further evidence of the value businesses place on procurement as 77% of professionals agreed that procurement’s reputation has improved.
Hemant Harrielall, head of CIPS Southern Africa, comments: “A lack of sector skills became even more of a concern and issue in 2019 than had previously been the case. However, this does present an opportunity for individuals and organisations who are committed to professionalising and upskilling via routes such as CIPS globally-recognised qualifications.
“But one of the most notable shifts we have seen in South Africa in recent years has been in the perception of procurement, with 77% of our survey respondents agreeing that procurement is valued within their organisation. That’s fantastic news.
“The profession is now seen as the strategic turnaround in many organisations and it is hoped that this is having an effect on the amount of influence procurement people are beginning to have at the highest levels.”
Scott Dance, director of Hays Procurement and Supply Chain, says: “Creating a pipeline of talented procurement professionals with the right skills not only for the short-term, but for the long-term too, will stand organisations in good stead. It will help them to continue building positive perceptions, ensure they are better equipped to face the challenges and enable them to access the skills they need to drive growth.
“We hope you find the insights covered in this report useful in your workforce planning, or as a guide for your own career development.”