How much have procurement salaries increased in MENA?

Posted by Sino SCS

Procurement salaries rose in the last year as the reputation of the profession grew in response to ongoing disruptions.

Procurement professionals in the Middle East and North Africa have on average seen salary rises of 14% in the past year, according to the CIPS Salary Guide produced in partnership with Hays. The average procurement professional in the region is now paid $68,508.

Almost half (49%) of professionals have received a pay rise in the last 12 months, “a clear indication of the value attributed to the profession”, it said.

However, it noted that the gender pay gap in the MENA region remains prevalent, with the gap in pay between male and female professionals sitting at 16.3%. 

The report said: “To close the gender pay gap further, organisations will need to work towards putting comprehensive equality, diversity and inclusion policies at the centre of their talent attraction and retention strategies, with tailored flexible working options. Policies only go so far, however. To create an environment where everyone feels they can meet their full potential, organisations must embed an ED&I culture right at their core.”

Despite all the challenges of the past 12 months, most procurement professionals (73%) believe that perceptions of the profession have improved, and 69% said the function is valued within their organisation. 

More than two thirds of respondents (69%) said directors and heads of other departments in their business understand what procurement specialists can offer. The report said: “This kind of buy-in helps procurement to play a bigger and more strategic role in organisations, making operations more efficient, cost effective and sustainable.” 

Among the wider organisation, only 59% said that staff in other departments understand the benefits of procurement.

CIPS MENA general manager Sam Achampong said: “In the face of the economic uncertainty and market volatility we’ve experienced in the past year, it’s great to see procurement continuing to rise to the challenge. The profession has been front and centre again, helping organisations navigate each new pressure and challenge.

“Along with huge fluctuations in energy prices, we’ve seen high inflation, as well as more unforeseen effects of climate change. Procurement professionals, perhaps more than most, have to be ready to deal with whatever the next unexpected event is to come over the horizon.”

Looking ahead, 44% expected managing risk in the supply chain to be the biggest challenge in the next 12 months. This was followed by budget restraints (41%), managing costs while retaining quality (35%), market volatility (35%) and attracting staff with the right skills (27%). 

Building supply chain resilience was the top priority for the year ahead as procurement battles the ongoing impact of inflation and disruption. 

CIPS chief executive Nick Welby said: “The value of procurement and supply professionals continues to strengthen. After years of disruption they are now firmly established as gatekeepers for organisational resilience, continuity and ESG strategies. 

“Managing risk, volatility and supply chain visibility continue to be primary goals, but with global cost pressures weighing heavily on organisations, balancing budget restraints while delivering long-term value is paramount. Against this backdrop, perceptions of the profession continue to improve and the most highly qualified individuals are increasingly in demand.”

Author Sino SCS
中品供应链-Sino Supply Chain Service