CIPS/Hays North America Salary Survey Report Reveals New Procurement Challenges

The annual CIPS/Hays North America Salary Survey Report released today, found procurement professionals earned an average raise of 4.6% last year, while the national average for pay increases was only 3.3%.

The average salary for all procurement and supply professionals with job roles such as supply chain manager or senior category manager was $118,333 in the US. Across all the roles and levels of responsibility, it was an average of $96,361 for procurement professionals who responded to the January 2021 survey.

While salaries went up in 2020, talent also was hard to find, as 64% of recruiters reported they struggled to find staff.

The survey also reported that 71% of respondents said perception of procurement had improved in the last year.

“It is very gratifying to see the strong recognition of the value procurement teams bring to an organization,” said Bill Michels, vice president of CIPS Americas. “For more than a year, supply managers have overcome tremendous challenges to keep organizations safe and producing the goods and services the world needs. We can expect that recognition to continue as procurement pivots from a need to ‘keep us going, whatever the cost,’ to ‘keep us going, and manage our costs.’”

And while the survey had good news for working professionals it did reveal a persistent gender gap in salaries, with pay for men running 15% higher than pay for women in procurement. At the same time, however awareness of the value of equality, diversity and inclusion is very strong.

• 90% said that a diverse and inclusive environment is a more open and trusting place to work in and improves staff retention.
• 83% said inclusivity brings greater creativity and innovation in the team.
• 90% said this would be a more attractive environment for prospective candidates, ultimately increasing skills from a wider pool of potential staff.
• Soft skills, such as communication and relationship management are in high demand according to the skills ranking by employers.

1. Negotiation skills listed number one by 55%
2. Supplier relationship management - 47%
3. Internal stakeholder management - 41%
4. Communication - 49%

“The report once again highlights the need for soft skills. Although technical skills and procurement qualifications remain important for individuals and their career progression, it is the soft skills of leadership and stakeholder management that deliver on business goals,” said Malcolm Harrison, group CEO, CIPS.

“I firmly believe that an increased focus on ethical procurement is imperative. Great strides have been made to raise awareness around ethics in supply chains, but greater recognition of procurement’s impact on local communities, or the elimination of slavery in supply chains, would address unpalatable situations that continue to exist. A simple re-focus on issues of real value to society today.”

Michels added that he CIPS/Hays report is about much more than salaries.

“It’s a valuable read for any executive who leads a team, as it offers an insightful profile of the environment in which procurement professionals work,”  he says.

The findings from The CIPS/Hays Procurement Salary Guide and Insights Report: North America are based on research conducted in 2021 as thousands of procurement and supply professionals participated in a detailed survey. The North America report, for the second year running, gives insight into 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.

Scott Dance, director of Hays Procurement & Supply Chain, noted that the procurement function continues to evolve, organizations will not only need to re-examine its role, but how it operates and where its strategic focus needs honing.

“For example: at what points data is harnessed, where supplier relationships can be strengthened and how innovation can be driven in category management,” he says. “These are just a few of the trends we can expect to see transform the procurement function in 2021.”

SC
MR