South Africa

South Africa outperforms other global regions in several areas. More MCIPS professionals command higher salaries than those without MCIPS in this region than anywhere else in the world. South Africa also has the lowest reported gender pay gap and is a top performer in terms of its AI-preparedness.  

Similar to other regions surveyed, South Africa has experienced difficulties in hiring the right people. Its biggest challenge has been a lack of sector-specific skills and experience. Consistent with the global average, soft skills are in high demand in South Africa, particularly in the areas of critical thinking and curiosity. 

South African professionals are also consistent with global perceptions on bonus eligibility, in terms of how employers measure and provide bonuses, and how employees would like them to be calculated and awarded. Here, we see a similar disparity between these two viewpoints.  

Please note: Our survey sample for South Africa this year mostly focuses on those with lower base salaries. Roughly 78% of this year’s sample respondents were those at delivering and managing competency levels, with delivering level professionals accounting for 57% of the sample.

Salaries, bonuses and benefits

The average salary for procurement and supply roles in South Africa this year is R614,777 and the average reported salary increase is 7.6%.  

A smaller proportion of people in this region (63%) reported having a salary increase in the last 12 months.  

Professionals at a leading competency level within South Africa with MCIPS earn on average 36.1% more than those without it. 

The proportion of respondents eligible for bonuses in this region has fallen from 72% in 2023 to 67% this year. Our survey shows eligibility for bonuses generally increases with the seniority of an individual’s job role. For comparison, those at an influencing competency level were 74% likely to have been eligible for a bonus in the past year, vs 58% of people at a delivering competency level.     

76% of employers in the region say bonuses are awarded based on whole company targets; 50% by personal targets; and 31% by team targets.  

Employees in the region, however, would prefer their bonuses to be awarded based on personal targets (75%) rather than overall company targets (47%). 

The top three benefits offered by employers in South Africa are private medical insurance (44%), life assurance/death in service (42%), and provision of a work mobile phone (34%).

Skills

Soft skills are rated as important in South Africa, but communication skills are seen as less important here than elsewhere in the world. Procurement and supply professionals in the region say the top five skills are negotiation (54%), supplier relationship management (49%), sourcing (43%), communication (37%), and contract management (33%). Perception of the importance of soft skills varies by job level, with those at influencing and leading competency levels rating them differently to those at managing or delivering competency levels. For example, those at influencing level rank negotiation (35%), supplier relationship management (26%), sourcing (9%), communication (22%) and contract management (17%) as less important than other groups surveyed and procurement and supply professionals overall. Those at influencing level (9%) and leading level (24%) rank sourcing as less important than those at managing level (46%) and delivering level (52%). Overall, procurement and supply professionals should maintain a balance of soft and technical skills and be proficient in both.   

Critical thinking/curiosity is the most in-demand skill for employers in this region (43%).

Job moves

51% of this region’s employees expect to move to a new employer in the next six to 12 months. 

The top factors driving people to consider a new job are salary (85%) and job security (85%). 

Employees in the region say their top reason for remaining in their role is that they enjoy their current job (34%).