Annual salary survey shows that wages in SCM have kept pace

The 2011 Salary Survey continues to provide tangible proof that the SCMP delivers a healthy return on investment for PMAC’s accredited members

December 14, 2011
by Cheryl Paradowski

Purchasingb2b November/December 2011 print edition

In June and July of this year, PMAC and its partners Purchasingb2b and MM&D magazines conducted our annual salary survey of Canadian supply chain professionals. Beyond the usual economic indicators, salary survey results can also provide important information on the health of the economy. Rising numbers can indicate recovery or growth, stagnant numbers represent uncertainty and declining numbers obviously signal trouble in the economy.

I am happy to report that this year’s salary survey results show that Canada continues to pull its way out of the global recession. Supply chain salaries increased by 2.2 percent and the average wage reported in the 2011 Purchasing Management Association of Canada/Purchasingb2b/ MM&D Salary Survey was $82,800, up from the average $81,000 reported last year.

SCMP advantage
As in past surveys, those with PMAC’s leading Supply Chain Management Professional (SCMP) credential continue to enjoy higher salaries, on average, than their non-accredited peers. The average salary of respondents with an SCMP designation was $88,900 this year. Those without the designation who now are enrolled in the SCMP accreditation program earned, on average, $62,200.

Our accreditation holders have made a significant investment of time and money in earning their SCMP designations, so I am glad that our annual salary survey continues to provide tangible evidence that they are receiving a good return on investment.

Gender gap
The gender gap has also declined slightly from 23.9 percent in 2010 to an 18.4-percent disparity between male and female earnings this year. The resulting salaries are an average of $93,800 reported for men versus $74,600 for women.

The largest disparity in wages between men and women is found in those with 16 to 20 years of experience, with a difference of 20 percent. This is down dramatically from last year’s 41.7 percent gap in the same experience group. The gap is smallest (5.8 percent) in the group with six to 10 years of experience.

This is certainly encouraging news and while results are moving in the right direction, the disparity between male and female earnings remains too large. I am hopeful that surveys like ours that bring this discrepancy to the forefront can contribute to its ultimate eradication.

Regional differences
Gender wasn’t the only factor that played a role in salary differences. There were also distinct regional differences in average salaries. While the average salary increased across the country as a whole, Quebec and Ontario were the only provinces where average salaries did not increase. This mirrors the slower economic recovery in these two jurisdictions, particularly in the manufacturing sector.

The largest average increase in salary was found in British Columbia with an increase of 8.6 percent to $81,700, followed by Alberta with a 5.9 percent increase to $98,700. The highest average salaries in the country are found in Alberta, followed by Ontario, British Columbia and Manitoba/ Saskatchewan.

Sector differences
Those working in the government saw the largest jump in salaries, with the average climbing from $75,100 to $80,500. This was followed by the trade/ wholesale sector wages which grew from $76,400 to $80,500.

The largest decline in average salaries was reported by those in the manufacturing industry, where average salaries fell from $83,500 to $75,400.

Our salary survey also revealed many other areas of compensation, beyond salary, that are important to Canadian supply chain management professionals. Those hiring or managing supply chain professionals should consult our survey to ensure their recruitment and retention strategies are current and effective in attracting and retaining talent. PMAC members can obtain copies of the 2011 survey free of charge, as a benefit of membership. For more information, visit:      b2b