Increase in Compensation within Supply Chains!
In a significant development for the Supply Chain industry, the Institute of Supply Management (ISM) published its annual salary and compensation survey this week. As a recruitment firm specializing in the sector, we find it imperative to share insights about salaries in the field and learn more in the process.
The demand for Supply Chain professionals has been steadily increasing, driven by the retirement of baby boomers and the growing strategic importance of the function in businesses. Companies are working hard to secure top talent, with better compensation packages and lawsuits becoming common tactics to retain high performers. The prolonged economic expansion has further fueled a candidate's market, possibly offering unprecedented opportunities for rising Supply Chain stars.
Curious to see this year's survey findings, we looked closely at the results of ISM's survey, which collected data from 2979 professionals in the field. Covering American data, the survey found that the average compensation for Supply Chain professionals rose by 2% to reach $100,000, while median compensation increased by the same percentage from $96,000 in 2016.
While the top-line results demonstrate strong compensation and growth, female practitioners continue to earn less, on average, than their male counterparts. This disparity is a matter that this field should seriously address in order to create a more equitable work environment.
Other notable findings from ISM's summary results include:
- The average compensation for CPOs (including Supply Chain, Procurement, and Sourcing) was $263,578.
- The average compensation for VPs was $208,959, followed by Directors at $160,579, Managers at $114,170, Experienced/Sole Contributing professionals at $96,685, and Emerging practitioners at $77,595.
- Roughly 4% of those surveyed were unemployed, signifying a stronger job market for Supply Chain professionals than the wider US economy.
The US salaries reported in the survey are generally higher than the average salary in Canada, where prolonged job growth and a high demand for Supply Chain talent have produced competitive wages.
In conclusion, the Supply Chain salary picture is generally favorable, but addressing persistent issues such as the gender pay gap remains essential. We invite our fellow Supply Chain professionals to weigh in on their experiences in the market and offer their perspectives on the field's future.
- Companies are intensifying their efforts in logistics and supply chain management, offering competitive compensation packages and utilizing strategies like better wages and lawsuits to retain high-performing Supply Chain professionals.
- Innovation in the supply chain sector is not limited to operational improvements; it also includes finance, as the average compensation for Chief Procurement Officers (CPOs) reached a substantial $263,578, highlighting the financial importance of this role in business.
- The demand for Supply Chain professionals is not fluctuating in Canada; it matches the American market, as prolonged job growth and a high demand for Supply Chain talent have resulted in competitive wages, making Canada a competitive market for Supply Chain recruitment.
