As per the global trends reported in our survey, the procurement and supply salary market in Australia and New Zealand is characterised by talent shortages, demand for skills and a desire for changing jobs.
The talent gap is particularly severe in Australia and New Zealand – a staggering 79% of employers in the region say they’ve struggled with hiring and cite communication as the most in-demand skill.
The region’s commitment to equality, diversity and inclusion (ED&I) is concerning. Australia and New Zealand have the lowest proportion of companies prioritising ED&I, at just 35%. The region’s gender pay gap is also worrying. Australia’s gender pay gap is 24% and New Zealand’s 22%, among some of the highest in our survey.
Professionals with MCIPS in Australia and New Zealand earn more than those without it and have a greater bonus eligibility. Other regional distinguishing factors include ANZ’s lower levels of AI-preparedness and its perception that AI will reduce headcount.
Please note: Roughly 50% of our survey sample for ANZ this year is mainly focused on those with lower base salaries (those at delivering and managing competency levels).
Salaries, bonuses and benefits
Average salaries have increased in both Australia and New Zealand. The average salary for procurement and supply roles in Australia this year is A$162,624, and the average salary for New Zealand this year is NZ$130,753.
The average reported salary increase for the region this year is 5.8%.
Slightly fewer people in this region (73%) reported having a salary increase in the last 12 months.
Those at a leading competency level in the profession in Australia with MCIPS earn on average 9.4% more than those without it. In New Zealand, the difference in average earning potential based on MCIPS is 6.5%.
The proportion of respondents eligible for bonuses in this region this year was 43%. Our survey shows eligibility for bonuses generally increases with the seniority of an individual’s role.
83% of employers in the region say bonuses are awarded based on whole company targets; 76% by personal targets; and 40% by team targets.
Employees in the region, however, say they would prefer their bonuses to be calculated and awarded based on personal targets (82%) rather than whole company targets (50%).
The top three benefits offered by employers in Australia and New Zealand are working from home (78%), flexible working hours (73%), and provision of a work mobile phone (60%).
Skills
Soft skills are still rated as important in this region, but less so than compared to elsewhere in the world. Procurement and supply professionals in the region say the top five skills are internal stakeholder management (39%), communication (38%), influencing (38%), negotiation (38%), and supplier relationship management (36%). Perception of the importance of soft skills varies by job level, with those at an influencing and leading competency level rating them differently to those at a managing or delivering competency level. For example, communication is ranked higher by those at delivering level (57%) than those at influencing level (31%). Overall, procurement and supply professionals should maintain a balance of soft and technical skills and be proficient in both.
Communication is the most in-demand skill for employers in this region (49%).
Job moves
36% expect to move to a new employer in the next six to 12 months.
The top two factors driving people in the region to consider a new role are salary (73%), and the content of the work (62%).
Employees in the region say their top reason for staying in their existing role is that they enjoy their current job (49%).