Growing concern over demand and supply gap in the supply chain profession has had people grumbling for years. Latest research, however, may help bring new workers if we get the news out: Supply chain professionals earn more than many business people.
"In today's global economy, excellence in supply management improves both top- and bottom-line performance, and advances companies' leadership on the worldwide stage. Supply management professionals' higher-than-average wage growth reflects the significant value they add every day," said Paul Lee, director of ISM Research & Publications said in a written statement.
The 13th annual Salary Survey from Institute for Supply Management (ISM) found that supply chain management professionals had higher than average raises, along with the opportunity to get stock options and bonuses. The average raise in supply chain management salary rose 4.1% last year compared to 2016, the survey found. General professional raises were only 3% by comparison. Further, average overall compensation for supply chain professionals was $117,425 while top earners (in the top 10%) earned nearly $290,000.
There’s more good news… Not only do supply chain professional’s salaries reflect their value to the organization, these workers have plenty of opportunity to maximize their earning by picking the right company, training and more. For example:
- Bonus bucks: Two thirds of those surveyed reported that they had received a bonus, with the average reaching an average of $23,603. Bonuses depended on a variety of factors, including: a combination of company results (52%), department results (15%), individual results (29%) and other results (4%). For top 5% earners, the average topped out at $165,258.
- Taking stock: Stock options were earned by 12.6% of those surveyed, with the average value of $35,000. For the top 5%, the average was more than $263,000.
- Added education: Those with certifications, such as the ISM Certified Professional in Supply Management (CPSM), earned, on average 14.7% more than those without cortication. Supply chain managers with engineering and technology degrees were also highly valued earning the highest average salary ($133,000).
- Time served: Starting salaries for procurement professionals start solid and get better with experience. Those with four years or less work experience averaged $78,000 annually, but five to eight years work experience boosted that figure to $97,000.
Smart organizations will work to attract the cream of the supply chain crop by offering clear benefits to potential candidates. “Wages and job satisfaction continue to be important to supply management practitioners, who are experiencing a higher growth in salaries and overall compensation than professionals in general,” says ISM CEO Thomas W. Derry. “A number of factors, including level of education and attaining supply management certification, such as ISM’s CPSM, can positively impact salaries.”
Employers offer a variety of benefits, including health insurance (offered by 93% of respondents' employers), dental insurance (89%), pension/retirement plan/401(k) or similar plan (88%), life insurance (85%), vision insurance (81%), short-term disability insurance (75%), long-term disability insurance (72%), tuition reimbursement (67%), wellness programs (65%), paid training/professional certification (57%), personal communication device (56%) and paid maternity/family leave (55%).
Less popular were these benefits: performance bonuses (46%), association membership (41%), long-term care insurance (36%), health-club membership (27%), legal services (21%), personal legal services (21%), stock options (18%), identity-theft protection (12%), vehicle/vehicle allowance (10%), child care (8%), elder care (6%), accounting/tax services (5%), and sabbatical (5%).
These findings are in stark contrast to today’s business world. A recent OfficeTeam survey found that 39% of employers commonly award promotions without a salary bump, compared to 22% in 2011. Two thirds of workers say that they would accept a better title without more pay, the survey reported.
Take a look at the infographic below to see more results from this survey. Then let us know in the comments section below: As a supply chain professional, what has your experience been? Is your organization recognizing your efforts with a bigger paycheck or just a better title?
— Hailey Lynne McKeefry, Editor in Chief, EBN