Procurement in MENA Faces Recruitment Challenges and Job Mobility in 2024
The rapidly evolving world of procurement in the Middle East and North Africa (MENA) presents both opportunities and significant challenges for professionals in the field. With the release of the Chartered Institute of Procurement & Supply’s (CIPS) 2024 Salary Guide, it has become apparent that recruitment difficulties and high job mobility are top concerns for the procurement profession in the region.
For those interested in the future of procurement, this article dives into the findings of the CIPS 2024 Salary Guide, highlighting the evolving landscape of procurement professionals in MENA and exploring strategies for companies to navigate this environment. From salary stagnation to the battle for top talent, the challenges are significant, but they offer a roadmap to improve recruitment, retention, and professional development.
Procurement Trends in 2024: A Landscape of Change in MENA
The procurement sector in MENA is undergoing significant shifts. As companies continue to integrate with the global supply chain, they face numerous internal and external challenges, from economic pressures to talent shortages. A staggering 60% of procurement professionals in the region are contemplating a job change within the next year. This trend points to a growing dissatisfaction with current roles, driven by stagnating salaries and limited career progression opportunities.
Recruitment challenges have compounded these issues. According to the CIPS 2024 report, 66% of employers in the region are struggling to find qualified procurement talent. This is not just an isolated issue in MENA but a global concern, exacerbated by a lack of formal procurement qualifications and specialized skills.
The rapidly changing procurement landscape requires professionals who are adaptable, technically proficient, and able to align with strategic corporate goals. Companies that fail to meet these criteria risk losing their top talent to competitors both within the region and globally.
The Recruitment Struggles in MENA: A “War for Talent”
The procurement profession in MENA is currently experiencing a fierce battle for talent, with more than half of procurement professionals having seen no salary increase in the past year. This pay stagnation, combined with limited career development opportunities, has led to a job mobility rate that is the highest among global regions.
Compounding the issue is the lack of qualified professionals in the region, making it difficult for employers to fill key positions. With over 66% of businesses reporting recruitment challenges, there is a clear disconnect between the available talent pool and the increasing demand for procurement specialists.
According to CIPS, one of the key challenges is the lack of technical expertise and formal procurement qualifications among candidates. This skill gap highlights the urgent need for more robust training and development programs. Procurement professionals with certifications such as the MCIPS (Member of the Chartered Institute of Procurement & Supply) are in high demand, yet their numbers remain insufficient to meet the needs of the region.
Salary Stagnation and Modest Increases: A Growing Concern
One of the most concerning findings from the CIPS 2024 Salary Guide is that 51.5% of procurement professionals in MENA did not see an increase in their salaries over the past year. This stagnation is particularly worrying when set against a backdrop of rising inflation and increased regional economic activity. On the other hand, approximately 39.4% of professionals did report receiving a salary increase, though these raises were modest and not reflective of broader global trends.
Despite the relatively high average salary in the MENA region—standing at $72,561 annually—many professionals are dissatisfied. This dissatisfaction stems not just from the lack of salary increases but from the limited opportunities for professional growth and technical upskilling. The procurement profession is becoming increasingly specialized, and employees expect their compensation packages to reflect their enhanced skills and responsibilities.
Bonuses: An Integral Part of Compensation in MENA
In addition to salaries, bonuses are a critical component of procurement professionals’ compensation in the MENA region. The average bonus stands at 15%, one of the highest globally. However, the structure of these bonuses varies, with 45.5% tied to company-wide targets, 33.3% linked to individual performance, and 18.2% based on team achievements. This structure emphasizes the importance of collective organizational success in determining bonuses, further tying compensation to the overall health of the company.
Sam Achampong, Regional Director of CIPS for Asia, Australasia, the Middle East, and Africa (AMEA), emphasized that the procurement profession in MENA is at a crossroads. While the region offers immense opportunities due to its strategic position in global supply chains, many professionals feel their careers are not progressing as they should.
How Employers Can Respond: Focusing on Retention and Development
To address the dual issues of salary stagnation and high job mobility, employers in MENA need to rethink their retention strategies. Offering competitive salaries is only one part of the equation. Professionals in the region are also looking for opportunities to grow their skills and advance their careers.
Investing in employees through career development programs, technical upskilling, and inclusive hiring practices will be critical for companies looking to attract and retain top talent. Additionally, providing meaningful benefits that go beyond basic offerings is crucial. While flexible working arrangements are a top priority for procurement professionals globally, in MENA, the focus is more on career development opportunities and private medical insurance.
The Importance of Career Development in MENA
One of the most significant distinctions between procurement professionals in MENA and their global counterparts is their priorities when it comes to benefits. While remote work and flexible hours are highly valued in other regions, professionals in MENA are more focused on career development and personal health coverage. This preference underscores a cultural and economic divide, where long-term career progression and stability are more critical than immediate flexibility.
Conclusion: Navigating a Complex Procurement Landscape in 2024
As the procurement profession in MENA continues to evolve, companies must adapt to the changing needs and expectations of their workforce. The findings from the CIPS 2024 Salary Guide clearly indicate that salary stagnation and recruitment challenges are pressing concerns that need immediate attention. Employers who fail to address these issues risk losing their top talent to competitors.
By investing in career development opportunities, addressing the skills gap, and offering competitive compensation packages, companies in MENA can successfully navigate the complex and ever-changing landscape of procurement. The future is full of potential, but only those who proactively address these challenges will thrive in 2024 and beyond.
FAQs
How is the procurement profession changing in MENA?
The profession is evolving rapidly, with more focus on technical skills, career development, and formal procurement qualifications. However, recruitment challenges and high job mobility remain significant concerns.
What are the top challenges facing procurement professionals in MENA?
Salary stagnation, limited career progression, and a lack of technical skills among candidates are among the top challenges facing the profession.
Why are procurement professionals in MENA seeking to change jobs?
Over 60% of professionals are seeking new opportunities due to dissatisfaction with stagnant salaries, limited career growth, and a lack of alignment with corporate goals.
What is the average salary for procurement professionals in MENA?
The average salary stands at $72,561 annually, although many professionals have not seen a pay increase in the past year.
How can companies address recruitment challenges in procurement?
Companies need to invest in career development programs, provide competitive salaries, and focus on upskilling employees to close the talent gap.
What benefits do procurement professionals in MENA prioritize?
Unlike their global counterparts, professionals in MENA prioritize career development and private medical insurance over flexible working arrangements.
