The annual CIPS Salary Guide sponsored by Hays found employers are looking for more highly trained and skilled professionals in procurement and supply as challenges in supply chains continue.

The research conducted in early 2023 as thousands of procurement and supply professionals contributed to the report highlighting the skills, salaries, and rewards in the profession. The results from Europe includes the perceptions of procurement, and benchmarks salaries and bonuses for different roles. The survey also highlights what the career aspirations of procurement professionals are and offers guidance on how to attract the best talent in the profession across sectors and across the world.

As the perception of the value of strong procurement and supply chain management skills increased during the pandemic and the awareness of supply chains rose amongst boards and CEOs of organisations and businesses, talent acquisition remained a problem as the search for highly skilled staff intensified. A high proportion n(70%) of recruiters for procurement roles said that they struggled to find talent.

Recruiters did highlight some challenges in finding the right talented individuals for their organisation and some reasons why they were unable to find the right skills:

Candidate expectations – 53%
Budget restraints – 49%
Lack of formal procurement training – 43%
Lack of soft skills – 43%

The perceived value of fully trained professionals remained high as 65% of respondents said that the perception of what procurement could do has risen in their organisation in the last 12 months.

Turning to deciding on priorities by procurement in Europe in the next year, 25% said building resilience in supply chains was their top areas to focus on. 20% said improving stakeholder management was a priority with 16% said technology and new IT system would be an important area of focus for 16%.

Soft skills such as communication and relationship management remained in demand across all levels of seniority and roles. Employers were looking for negotiation skills as the top skill required across all roles in procurement (56%), followed by internal stakeholder management (48%), and communication skills at 46% Leadership skills were most important for higher level procurement roles such as directors and heads of.

Nick Welby, Group CEO, CIPS said, “Year after year the reputation of our profession is rising within organisations and across business. Our skills are valued and our sense of the contribution we make to our organisations and economies is increasing.

“Salaries and bonuses awarded at all levels of the profession continue to rise and are again outstripping those across the wider economy. Amongst the most highly qualified in our profession – individuals who have achieved MCIPS – are commanding significantly higher salaries than their non-MCIPS colleagues and are increasingly sought after across all sectors.

“However, it is worth highlighting that behind the positive headlines there is also another picture. Skills shortages, employee turnover, a scarcity of talent, difficulties recruiting and persistent imbalances in salaries measured by gender and ethnicity remain and have a significant and negative impact on society and economies around the world. “

Scott Dance, Director at Hays, specialising in Procurement & Supply Chain recruitment, said: “Simply put, there’s a supply and demand problem when it comes to talent. Employment levels are currently at their lowest since the 1970s, and recent economic volatility is creating nervousness in the market around moving or changing roles. This is creating a bidding war for talent, and the best candidates can expect multiple offers on the table at any one time. This is inevitably driving salaries up, and we expect them to continue to grow over the coming three to six months – or as long as the uncertainty lasts.”

Jonathan Morgan, General Manager, UK and Europe, CIPS
“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.”

The number of procurement and supply chain professionals in Europeis rising. Find out more and download a copy of the report from the CIPS website with a guide on how you can further your own career.