CIPS and Hays Unveil 2024 Salary Guide: Urgent Need for Retention Strategies in MENA Procurement Sector

Shahba Mayyeri -

The Chartered Institute of Procurement & Supply (CIPS), in collaboration with Hays, has released its 2024 Salary Guide and Survey, revealing critical insights into the procurement and supply chain landscape across the Middle East and North Africa (MENA) region.

The report highlights significant trends, challenges, and the urgent need for companies to reassess their employee retention strategies.

With over 60% of procurement professionals in MENA contemplating a job change within the next year, the findings underscore a pressing concern for employers. Professionals seek not only competitive salaries but also opportunities for career growth and alignment with corporate objectives. Failure to provide these elements could lead to talent loss to regional and global competitors.

Sam Achampong, Regional Director of CIPS for AMEA, emphasized the evolving procurement landscape, stating that companies must invest in their workforce through career development and inclusive hiring practices.

“Investing in people will be key to sustaining growth in the sector,”

he noted.

The report also reveals that 66% of MENA employers struggle to recruit qualified procurement professionals, primarily due to candidates lacking essential technical skills. This highlights the growing importance of formal qualifications such as MCIPS.

Despite a global increase in procurement salaries, over half of MENA professionals reported no pay increase in the past year, with the average salary in the region at $72,561. The average bonus for procurement roles is approximately 15%, influenced by company performance.

CIPS's data indicates a critical need for companies to enhance their benefits and career development opportunities to attract and retain top talent in an increasingly competitive environment. As procurement professionals in MENA face stagnant pay and high job mobility, immediate action is essential for organizational success.

Key Findings

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.

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.

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.