Wondering about the average procurement manager salary by company size? We explain how salaries differ in small, medium, large, and enterprise-level companies. By the end, you’ll know what to expect based on the size of the company you work for.
Key Takeaways
Procurement manager salaries vary significantly by company size, with small companies offering $60,000 to $95,000, medium-sized companies $80,000 to $110,000, large companies $110,000 to $130,000, and enterprise-level companies $120,000 to $150,000 per year.
Total compensation for procurement managers includes base salary, bonuses, stock options, and comprehensive benefits packages, which can significantly enhance their overall earnings.
Various factors such as company budget, financial health, industry, and market conditions play critical roles in determining procurement manager salaries.
What does a Procurement Manager do?
Procurement managers are crucial to the smooth operation of any organization. Their role includes:
Ensuring cost-effective and timely acquisition of goods and services through their oversight of purchasing activities
Developing purchasing strategies to meet organizational needs and guarantee the efficiency of all procurement activities
Reviewing and processing purchase orders
Managing and supervising the purchasing team
Maintaining accurate records of goods ordered and received
Procurement managers have several key responsibilities, including:
Negotiating prices and contracts with suppliers
Building and maintaining strong relationships with vendors to ensure a reliable supply chain
Selecting prospective vendors based on assessments of quality, timeliness, and cost
By fulfilling these responsibilities, procurement managers help organizations maximize their value.
In addition to these tasks, procurement managers:
Keep abreast of market trends
Assess vendor offerings to compare pricing and services
Address any issues related to the quality of procured items, working promptly to resolve them and maintain the integrity of the supply chain
Research and implement new purchasing technologies, which can enhance efficiency and accuracy in the procurement process.
What are the qualities of a good Procurement Manager?
Key skills and qualities that distinguish a good procurement manager include:
Strong negotiation skills to secure favorable deals and prices from suppliers
Analytical skills to identify cost-saving opportunities and potential risks within the supply chain
Effective relationship management to maintain strong partnerships with suppliers and ensure smooth operations and reliable deliveries.
Procurement managers need to have the following skills:
Effective communication skills to convey their needs and negotiate terms with both internal stakeholders and external suppliers
Risk management skills to mitigate any disruptions in the procurement process and ensure seamless operations
Strategic sourcing skills to find the best mix of products and services that align with the organization’s goals.
For procurement managers who often supervise teams of procurement officers, the following skills are vital:
Leadership skills: They must inspire and guide their teams towards achieving the organization’s procurement goals.
Financial skills: Necessary for cost management and financial reporting, ensuring that procurement activities are within budget.
Attention to detail: Critical for ensuring accuracy in documentation and contracts.
Contract management skills: Essential for drafting and managing agreements effectively.
Common Pay Structure Explained
The compensation structure for procurement managers usually comprises:
Base salary: often ranging between $114,473 and $144,862, depending on factors such as company size, industry, and geographic location
Bonuses
Stock options
Benefits packages
In addition to the base salary, procurement managers can receive annual incentives that increase their total cash compensation to between $122,239 and $161,753.
Stock options are a common element in procurement manager compensation packages, aligning their interests with the long-term performance of the company. These options can provide significant financial growth opportunities if the company performs well. Benefits packages typically include health insurance, retirement plans, and paid time off, providing comprehensive coverage and security for procurement managers.
Bonuses, often linked to company performance and individual targets, provide procurement managers with extra financial incentives to excel in their roles. Some companies also provide additional perks such as company cars, work-from-home allowances, and professional development funds, further enhancing the overall compensation package.
Average Procurement Manager Salary in Small Companies

For small companies, procurement managers can expect an average salary ranging from $60,000 to $95,000 per year. These companies often face budget constraints that limit salary growth, making it challenging to offer higher compensation. Despite the lower salaries, procurement managers in small companies may take on additional responsibilities due to limited resources, which can influence their overall compensation.
Bonuses or profit-sharing arrangements can be part of the compensation package for procurement managers in small companies, potentially increasing their overall earnings. However, the financial limitations of smaller companies often mean that these additional incentives are modest compared to those offered by larger firms.
Average Procurement Manager Salary in Medium-Sized Companies

In medium-sized companies, typically those employing between 51-200 employees, procurement managers can anticipate salaries in the range of $80,000 to $110,000 per year. These companies strive to offer competitive salaries to attract and retain talent while balancing the financial constraints typical of their growth stage. Medium-sized companies may not offer salaries as high as large or enterprise-level firms, but they often compensate with a positive workplace culture and opportunities for career growth.
One of the advantages of working in a medium-sized company is the potential for career advancement. Many of these companies are in growth stages, offering procurement managers opportunities for promotions and salary increases as the company expands. Additionally, procurement managers in medium-sized companies often have the chance to take on more responsibilities, leading to role expansion and professional development.
Leadership roles may be more attainable in medium-sized companies due to less bureaucracy and closer interactions with senior management. This environment can provide procurement managers with a more direct path to higher positions and increased compensation.
Average Procurement Manager Salary in Large Companies

Procurement managers in large companies, those employing 201-500 employees, usually command higher salaries within the range of $110,000 to $130,000 per year. The increased complexity of operations and the scale of responsibilities in large companies justify these higher salaries. Procurement managers in these firms often need to:
Coordinate strategic efforts across multiple departments or product lines
Manage large budgets and negotiate complex contracts
Develop and implement procurement strategies to optimize cost savings and supplier performance
These demands require advanced skills and experience, which is why the salaries for procurement managers in Saint Paul-based large companies are higher.
In addition to competitive salaries, large companies usually offer comprehensive benefits packages, including health insurance, retirement plans, and paid time off. These packages enhance the overall compensation and provide a level of financial security and stability for procurement managers.
Robust bonus structures are also common in large companies, significantly enhancing the total compensation for procurement managers. These bonuses are often tied to the company’s performance and the individual manager’s achievements, providing strong financial incentives to excel.
Average Total Cash Compensation
Total cash compensation for procurement managers encompasses not just the base salary, but also annual incentives and bonuses. For Procurement Project Managers, the total cash compensation ranges from $87,708 to $113,238, with an average of approximately $99,480. This compensation structure ensures that procurement managers are rewarded for their performance and contributions to the organization.
For Regional Procurement Managers, the total cash compensation is higher, ranging from $123,730 to $163,800, with bonuses between $8,013 and $17,460. These figures illustrate the significant financial rewards available to procurement managers, especially those in regional roles with broader responsibilities.
Average Procurement Manager Salary in Enterprise-Level Companies

Procurement managers in enterprise-level companies, characterized by extensive resources and complex supply chains, can expect higher salaries, usually within the range of $120,000 to $150,000 per year. The complexity of operations and the need to manage multiple vendors and extensive logistics justify these higher salaries.
These companies can offer competitive salaries due to their substantial resources and the critical role procurement managers play in their operations. The higher pay reflects the increased responsibilities and the strategic importance of procurement in maintaining efficient supply chains.
Factors Affecting Procurement Manager Salaries by Company Size
Various factors influence procurement manager salaries by company size, including:
The company’s budget
Financial health
Industry
Market conditions
Effective procurement can significantly impact an organization’s financial stability and business operations, making it a crucial function.
Company Budget and Financial Health
A company’s financial health directly influences the salaries of procurement managers. Companies with healthier budgets and robust financial standing are more likely to offer higher salaries and better overall compensation packages. This financial capability allows them to attract and retain top talent, ensuring efficient procurement operations.
Conversely, companies with limited budgets may struggle to offer competitive salaries, impacting their ability to hire experienced procurement managers. Therefore, the financial status of a company is a critical factor in shaping the compensation landscape for procurement managers.
Industry and Market Conditions
Procurement manager salaries are also shaped by industry and market conditions. Industries with high demand for skilled procurement professionals often offer higher salaries to attract the best talent. For example, procurement managers in the tech or pharmaceutical industries may earn more than those in retail or manufacturing due to the specialized skills required.
Market conditions such as supply and demand dynamics can lead to salary variations. In markets where there is a scarcity of skilled professionals, companies are willing to pay a premium to secure the best candidates. Thus, understanding industry trends and market conditions is essential for procurement managers looking to maximize their earning potential.
What is the average Procurement Manager salary by company size: 2023?
In 2023, purchasing managers had a median annual wage of $136,380. This indicates a high level of earning potential in this field. This figure varies significantly depending on the size of the company. Smaller companies typically offer lower salaries due to budget constraints, while larger firms can afford to pay more due to their extensive resources and complex supply chains.
Procurement managers in medium-sized companies find themselves in a middle ground, earning competitive salaries that reflect their balancing act between financial constraints and the need to attract talent. Overall, the average procurement manager salary by company size in 2023 highlights the significant impact of company size on compensation levels.
What is the average Procurement Manager salary by company size: 2024?
Projected figures for 2024 suggest an average procurement manager salary of around $92,206. However, this figure varies widely across different company sizes, with the highest salaries reaching up to $131,000 per year. Smaller companies may offer salaries as low as $59,000, reflecting their financial constraints.
These projections indicate a continued trend of salary variation based on company size, with larger employers maintaining their ability to offer higher compensation due to their extensive resources and complex operational needs.
What is the outlook for Procurement Manager pay?
The future prospects for procurement manager pay look promising, with the average salary in the United States projected to hit $128,400 in 2024. The salary ranges are anticipated to fall between $114,500 and $144,900, reflecting a stable and competitive market for skilled procurement professionals.
Factors such as education, qualifications, and years of experience will continue to play significant roles in determining individual salaries. As industries evolve and the demand for efficient procurement processes increases, skilled procurement managers can expect their compensation to remain attractive and potentially grow.
Procurement Manager Salary: Men vs Women
Gender disparities remain a reality in procurement manager salaries, with women typically earning less than men. In 2023, women’s earnings were 83.6 percent of men’s across various occupations, and this trend extends to procurement roles as well. Women in procurement face a pay gap ranging from $12,000 to $23,000 compared to men over the age of 40.
Despite making up nearly half of the procurement profession, only 15% of women hold executive positions. This disparity is further exacerbated by factors such as reduced access to sponsorship and mentorship, misassumptions about their commitment, and the challenges of being heard in hybrid working models.
The pandemic has also influenced career trajectories, with one in four women considering leaving the workforce or downshifting their careers. Addressing these issues is crucial for achieving gender parity in procurement manager salaries and ensuring that talented professionals are retained and fairly compensated.
What are the US states with the highest Procurement Manager pay

Certain US states, boasting significantly higher salaries for procurement managers, prove to be appealing locations for professionals in this field. California leads with an annual mean wage of $159,470, reflecting its robust economy and high demand for skilled procurement professionals. New York offers an even higher annual mean wage of $176,350, driven by its large and diverse business landscape.
Massachusetts also ranks high, with procurement managers earning an annual mean wage of $163,560. New Jersey and Colorado round out the top-paying states, with annual mean wages of $181,120 and $170,900, respectively. These figures highlight the regional variations in procurement manager salaries and the influence of local economic conditions.
Total Compensation Package for Procurement Managers
The total compensation package for procurement managers includes:
Base salary
Bonuses, often tied to company performance and individual achievements
Stock options, providing potential for significant financial growth if the company performs well
These additional components can substantially increase overall earnings for procurement managers, especially when working with efficient distribution centers and potential suppliers.
Comprehensive health benefits, retirement plans, and additional perks such as employee discounts are commonly offered, particularly by larger firms. These benefits contribute to the overall attractiveness of the compensation package, ensuring that procurement managers receive comprehensive support and financial security.
Professional development opportunities, including advanced training programs, are also a critical part of the total compensation package. These opportunities not only enhance the procurement manager’s skills and career prospects but also demonstrate the company’s commitment to their long-term growth and success.
Comparing Procurement Manager Salaries with Similar Job Titles
Interesting differences in pay scales emerge when comparing procurement manager salaries with similar job titles. Supply chain managers have a median salary of $98,570, which is higher than the average procurement manager salary that ranges from $85,700 to $120,000. Logistics managers earn comparable salaries, ranging from $80,000 to $120,000, reflecting the similar skill sets required for both roles.
Buyer positions, on the other hand, have lower salaries compared to procurement managers, ranging from $64,000 to $83,162. This difference highlights the varying levels of responsibility and expertise required for each role. Supply chain directors earn significantly more, with compensation packages ranging from $125,184 to $180,000, underscoring the higher level of strategic oversight and leadership involved.
Production planners earn between $68,400 and $93,125, which is below the salary range of procurement managers. These comparisons provide a comprehensive outlook on how procurement manager salaries stack up against similar roles, helping professionals understand their earning potential across different positions and industries.
Summary
In summary, the average procurement manager salary varies significantly by company size, with larger and enterprise-level companies offering higher compensation due to the complexity and scale of their operations. Small companies face budget constraints that limit salary growth, while medium-sized firms offer competitive pay balanced with career growth opportunities. Industry and market conditions also play crucial roles in shaping procurement manager salaries, with high-demand sectors offering the best compensation.
Gender disparities and regional variations further influence salary levels, highlighting the need for ongoing efforts to achieve pay equity and attract top talent across all regions. The future outlook for procurement manager pay remains positive, with salaries expected to grow in response to increasing demand for skilled professionals. Understanding these factors can help procurement professionals navigate their career paths and maximize their earning potential.
Frequently Asked Questions
What is the average procurement manager salary in small companies?
The average procurement manager salary in small companies ranges from $60,000 to $95,000 per year, with budget constraints often affecting salary growth.
How do procurement manager salaries compare between medium-sized and large companies?
Procurement managers in large companies typically earn higher salaries, ranging from $110,000 to $130,000 annually, compared to medium-sized companies where salaries range from $80,000 to $110,000.
What factors influence procurement manager salaries?
Procurement manager salaries are influenced by company size, financial health, industry, market conditions, and regional economic conditions. These factors play a crucial role in determining salary levels.
Are there gender disparities in procurement manager salaries?
Yes, there are gender disparities in procurement manager salaries, as women generally earn less than men, facing a pay gap of $12,000 to $23,000 compared to their male counterparts over the age of 40.
Which US states offer the highest procurement manager salaries?
The US states that offer the highest procurement manager salaries are New Jersey, New York, California, Massachusetts, and Colorado, with salaries ranging from $159,470 to $181,120.