The 2011 Supply Chain Salary Survey

Michael Power reports on this year’s salary survey.

November 25, 2011
by Michael Power

Purchasingb2b: Print Edition – October 2011

For yet another year, it appears that many of you are making a bit more money. As Canada’s economy continues to pull out of recession, the average salary (including bonuses and incentives) of the country’s supply chain professional has hit $82,800. That’s up from $81,000 in 2010 and $78,100 in 2009.

Figure 1: Five-year salary overview

The survey revealed that 70 percent of PMAC members who responded have seen their base salaries increase (with the average at $78,100), while 60 percent of non-PMAC members have seen an increase. The average base salary for non-PMAC members was $73,600.
These are some of the results from the 2011supply chain salary survey which, for the fourth year in a row, Purchasingb2b and M&D magazines have produced in partnership with the Purchasing Management Association of Canada (PMAC). The survey questionnaire—fielded this summer to PMAC members and supply chain professionals who subscribe to Purchasingb2b and MM&D—drew 1,567 responses.

Sex and the salary
The average salary for men fell to $88,300 this year, down from $93,600 in 2010—a 5.7-percent drop. The drop comes a year after men’s average salary on average rose a whopping $10,000 (up from $83,600 in 2009). But women’s salaries continue to rise, with the average salary in 2011 topping $74,600. That represents a 4.6-percent rise from $71,300, reported last year. Overall, the average salary for men ($88,300) was 18.4-percent higher than that for women ($74,600).

Figure 2: Mean Salary by Sex and Years of Experience

Across the board, women had lower salaries on average than men regardless of years experience. Women with five or less years pulled in $60,600 (although up 9.7 percent from $55,200 in 2010), while men with the same experience earned $68,500 which is up slightly—just 0.1 percent—from $68,400 in 2010.

After 16 to 20 years on the job, women averaged $72,600, versus $76,900 in 2010 for a 5.6-percent difference. Men’s average salary towered over that at $90,800. That means men in that category earned 25.1-percent more than the women.

Salaries rose along with the education and position, respondents reported. Executives topped the list at $140,000—down 14.9 percent from the $164,600 reported in 2010—while managers pulled in $93,300 annually. Perhaps surprisingly, the average salaries of respondents with an MBA dropped 10.9 percent to $98,700 this year, down from $110,800 in 2010.

Figure 3: Mean Salary by Classification

Manufacturing lag
There was also a drop for supply chain professionals working in manufacturing. In 2010, those professionals earned $83,500, while this year saw them take home $75,400—a difference of $8,100 or 9.7 percent. Organizations with 5,000 or more workers saw supply chain salaries drop from $94,100 in 2010 to $93,800 this year, 0.3 percent. Also experiencing a drop were companies with 250 to 499 employees, with salaries falling 2.5 percent from $80,700 in 2010 to $78,700 this year.

Those working on a professional SCMP designation saw their salary jump 3.0 percent from $67,200 on average in 2010 to $69,200 this year. When asked about the importance of a professional designation, 77 percent of PMAC member respondents said it was important to get ahead in their jobs. For non-PMAC members, 62 percent said it was important.

PMAC members also took a more positive view of the availability of supply chain jobs. In total, 71 percent said there were more jobs in supply chain than five years ago (with 23 percent saying much more). That’s compared to non-PMAC members, 56 percent of which saw more jobs than five years ago.

Top Skills Needed to Do Your Job

Increased recognition
Supply chain professionals may also be getting even more recognition within their organizations this year. Among those asked, 76 percent said their companies have come to realize that business couldn’t function without supply chain management professionals. That’s up from 71 percent who responded the same last year.

Supply chain also seems to be attracting increased recognition from the C-suite, with 71 percent saying that during the last year the supply chain role has increased in influence with senior management. That’s up from 57 percent in 2010. For 2011, 45 percent said they have influence at the C-level, up from 39 percent in 2010.

The economy seems to have affected how recognized respondents felt within their organizations, with 76 percent saying they agree that the current economic environment has made their skills and experience more appreciated.

Comparatively, 20 percent said they disagree. However, 56 percent said they agree that their compensation hadn’t kept pace with their job responsibilities, and 40 percent disagreed.

This year, 39 percent said they planned to be working in the same job in the next two years, down from 43 percent in 2010. As well, 36 percent said they planned on getting promoted within the same organization while 25 percent said they would be working with another organization. Among those planning to get promoted within the same organization, 39 percent were PMAC members, while 30 percent were non-PMAC members. Six percent said they would be changing careers and five percent said they would be self-employed or consulting. When asked why they saw themselves working at another organization in the next two years, 54 percent said the availability of higher compensation, as compared to 52 percent in 2010 who said the same. Most of those who saw higher compensation elsewhere were PMAC members (55 percent) as compared to non-PMAC members (47 percent).

PMAC members also tended to get contacted by headhunters more often over the last year. Among respondents, 28 percent of PMAC members answered “more often,” while 20 percent of non-PMAC members answered the same.

The big issues
The top supply chain issue respondents faced during the last year was cost control, with a total of 61 percent mentioning it as their top concern, Going forward, 57 percent saw it as their main concern over the next 12 months. That’s a jump from last year, when 46 percent answered likewise.
A total of 39 percent said supplier relationship management would be their top concern in the next 12 months, up from 34 percent in 2010. Risk management came in third at 32 percent, a rise from last year’s 23 percent.

Environmental responsibility and sustainability was the top concern of 18 percent of respondents over the last 12 months, while 31 percent saw it as their primary supply chain concern over the next 12 months. In 2011, 80 percent said the sustainability practices of their organization were important to them.

Figure 5: Mean Salary by geographical region

Figure 6: Mean salary by Industrial Sector

Those with larger paycheques appear to be more satisfied with their salaries. For those who listed themselves as “Very/Somewhat

Satisfied” with their pay, the average salary was $90,700. Meanwhile, those who considered themselves “Not very/Not at all satisfied” had a salary of $64,500 on average.

FIgure 7: In the next two years do you plan to be…?

When answering about their levels of satisfaction regarding various elements of their jobs, 98 percent ranked competitive salary as important—the same as 2010—with 71 percent saying it was “very important.” As well, 27 percent ranked salary as “somewhat important.” Meanwhile, 69 percent of respondents said they were “satisfied” with their salaries. PMAC members (71 percent) ranked themselves as more satisfied with their salaries than non-PMAC members (65 percent).

Overall, 17 percent said they were “very satisfied” (18 percent for PMAC members, 14 percent for non-members) while 52 percent answered they were “somewhat satisfied.” A total of 22 percent said they were “not very satisfied” and eight percent were “not at all satisfied.”

Ninety-six percent said a healthy work/life balance was important, with 82 percent satisfied with that balance; 91 percent said support for career and professional development was important and 72 percent were satisfied with that support. Job security was important to 91 percent of respondents. The percentage of those who said they were satisfied with that security was 87 percent. Vacation time was important to 93 percent. Most of you also saw on-the-job influence as important, at 95 percent.

Relationships with one’s superiors ranked high among respondents, with 96 percent saying it was important and 63 percent saying “very important.”

Areas in which satisfaction differed between PMAC and non-PMAC members included support for career/professional development (75 percent for PMAC members, 64 percent for non-members); comprehensive benefits package (85 percent for PMAC members, 79 percent for non-members) and pension/RRSP contributions (80 percent for PMAC members, 71 percent for non-PMAC members).

Both PMAC members and non-PMAC members appeared equally satisfied with their jobs overall, with 87 percent of members ranking themselves as satisfied and 86 percent of non-members answering the same.

The skills you need

Figure 8: Do you have influence at the C-level?

To do well in supply chain, 28 percent ranked people skills at the top. But that’s down from 33 percent who said the same in 2010. Next in line were negotiation skills at 13 percent (down from 17 percent in 2010) and followed by a new category this year—strategic leadership—also at 13 percent. Decision making ranked at 12 percent and analysis was cited by nine percent of respondents.

In conclusion, salaries have gone up, along with the recognition supply chain professionals receive from their organizations. The majority—87 percent—said you were satisfied with your jobs overall. The future once again looks bright for supply chain professionals.               b2b