Many factors go into deciding how much an employee is worth
Purchasingb2b: October 2011
Many factors go into deciding how much an employee is worth. Skills, overall experience, tenure at a company and education are all considered. Another factor that plays a role in deciding how valuable procurement people are to their organizations is a professional designation. This issue features the 2011 PMAC/Purchasingb2b/MM&D Salary Survey, starting on page 12. You may notice that salaries have indeed increased. Overall, the average salary for the supply chain professional hit $82,800 this year. That’s up from last year’s $81,000—not an enormous increase, but in line with a cost-of-living adjustment.
A large number of you reported that you were happy with what you do for a living. Among respondents, 87 percent said they were “satisfied” (and 27 percent reported “very satisfied”) with their work overall. Most likely, this reflects the increased recognition procurement and supply chain functions get at the top rungs of many organizations, as the C-suite realizes the importance of those functions.
I also suspect competition for good procurement positions is stiff, putting more emphasis on higher education and professional designations. In the survey, 73 percent of you said you agreed with this statement: for me to get ahead in my job I should really have a professional designation. Over half of respondents (56 percent) held the SCMP designation. As well, 18 precent of you reported that you were currently enrolled in the PMAC accreditation program, while another 18 percent said you planned to enroll.
The number of companies that support higher education and memberships in professional organizations also seemed impressive. Among those of you who participated in the survey, 79 percent said your organizations pay for educational courses, while 71 percent said they pay for memberships in professional associations. As well, 63 percent of you responded that your organizations paid for professional certification programs.
From these results, I see a few interesting points emerge. For one thing, the importance placed on education and professional development points to the fact procurement and supply chain continue to be recognized as more complex—and therefore more important—functions within the organizations they serve. That the majority of respondents said their organizations are willing to pay for courses and professional designations shows an acknowledgement of that importance. Of course, salary is an important factor in any career. But professional recognition and the chance to develop professionally, in my opinion, are equally important.
What are your thoughts on the results of the salary survey? Feel free to drop me a note at email@example.com, or give me a call at 416-442-5600, ext. 3259.