Sam Achampong, Regional Director of CIPS for Asia, Australasia, Middle East, and Africa (AMEA)
DUBAI, DUBAI, UNITED ARAB EMIRATES, October 22, 2024 /EINPresswire.com/ — The Chartered Institute of Procurement & Supply (CIPS), in partnership with Hays, has unveiled its latest 2024 Salary Guide and Survey, spotlighting key trends and challenges in the procurement and supply chain profession across the Middle East and North Africa (MENA) region. The findings provide a comprehensive overview of salary trends, employment dynamics, and benefit preferences among procurement professionals in the region.
With over 60% of MENA professionals considering a job change in the next 12 months, companies in the region need to urgently rethink their retention strategies. According to the report, professionals in the region are not only looking for competitive salaries but also opportunities for career growth, technical upskilling, and a clear alignment with corporate goals. Employers who fail to offer these elements risk losing top talent to competitors, both regionally and globally.
Sam Achampong, Regional Director of CIPS for Asia, Australasia, Middle East, and Africa (AMEA), commented on the findings: “The procurement landscape in MENA is evolving rapidly, and companies must ensure they are at the forefront of this transformation by offering competitive packages that go beyond pay. Investing in people through career development, inclusive hiring practices and meaningful benefits, will be key to sustaining growth in the sector.”
Significantly, employers across MENA are facing significant recruitment difficulties, with 66% reporting struggles in finding qualified procurement professionals. A key issue identified is the lack of technical skills among candidates, underlining the growing importance of formal procurement qualifications such as MCIPS. As the demand for specialised knowledge grows, employers will need to prioritise training and development programmes to close the skills gap.
As the MENA region faces continued economic pressures, the latest data also reveals that procurement professionals are navigating a period of stagnant pay and high job mobility. Despite a global increase in procurement salaries, over half of the professionals in MENA have not seen a pay increase in the last year.
Key Findings:
1. Job Mobility and Recruitment Challenges
The MENA region has the highest proportion of procurement professionals actively seeking to change jobs, reflecting dissatisfaction with current roles, pay stagnation, and limited career progression.
At the same time, 66% of employers in the MENA region are struggling to recruit talent. The report points to a fierce “war for talent,” as companies across the region face challenges in attracting and retaining the skilled professionals necessary to navigate complex supply chains.
2. Salary Stagnation and Modest Increases
In the past 12 months, 51.5% of procurement professionals in MENA reported no increase in their salaries.
Conversely, 39.4% of professionals did receive a pay rise, although the figures still reflect a lower-than-expected percentage considering the rising inflation and regional economic activity.
The average salary in the MENA region stands at $72,561, higher than in some other global regions, but overall pay stagnation is a critical issue.
3. Bonus Structures in MENA
The average bonus for professionals working in procurement and purchasing manager roles in MENA is approximately 15%, one of the highest globally.
Bonuses in the region are largely determined by the company’s success, with 45.5% of bonuses tied to company targets, 33.3% tied to personal performance, and 18.2% based on team targets. This emphasises the importance of organisational achievements in influencing compensation packages.
Achampong adds: “Procurement professionals in MENA are at a crossroads. While there are immense opportunities in the region due to its strategic importance in global supply chains, we are seeing dissatisfaction with pay progression and job satisfaction. Our data highlights the need for employers to rethink how they engage with talent, focusing not only on salary but also on creating robust career development opportunities.”
In terms of benefits, MENA procurement professionals express a different set of priorities compared to their global counterparts. Globally, working from home remains the most popular benefit. However, in MENA, this is less of a priority. Instead, career development opportunities and private medical insurance top the list of most desired benefits in the region. These preferences highlight a significant cultural and economic distinction, where career progression and personal health coverage take precedence over flexibility in work arrangements.
With pay stagnation, high job mobility, and increasing challenges in talent recruitment, companies must act swiftly to address these issues. Enhancing benefits beyond the standard offerings and focusing on career development are critical steps towards attracting and retaining the best talent.
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About CIPS
We are CIPS, the Chartered Institute of Procurement & Supply. A global membership organisation driving positive change across our profession. We are the voice and standard, defining and amplifying best practice across all our worlds. As the awarding body for the profession, we lead in education and training. Helping professionals advance their ambition. We provide insights, information, and tools. Enabling members to develop their own best practice. We help build capability within organisations. Interrogating, troubleshooting, and training. Through all our work, we build a community. A global network of professionals powering procurement and supply so our societies can thrive. Find out more at: www.cips.org
Sheila Tobias
Jola Chudy Consulting
sheila@jolachudy.net
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