Supply managers in high demand despite economic conditions
Institute for Supply Management reports average compensation for supply management practitioners exceeds US$120,000
Salaries for supply chain mangers appeared to be accelerating in early 2020 according to the fifteenth annual Institute for Supply Management® Salary Survey.
Conducted between mid-January and mid-February 2020, the survey highlights that average wage growth for supply management practitioners continued a three-year trajectory, with average overall 2019 compensation reaching US$123,226, a 3.3% increase compared to 2018 (US$119,271). This increase is double the 1.6% bump reported for calendar year 2018 compared to 2017 (US$117,425). In 2019, 87.6% of respondents indicated their base salaries increased, and of those, the average increase was 5.5%.
"In today's global economy, excellence in supply management improves both top- and bottom-line performance and advances companies' leadership on the worldwide stage," said ISM CEO Thomas Derry. "Supply management professionals' higher-than-average wage growth reflects the significant value they add every day."
Additional key findings include:
- Certification edge: Respondents with a Certified Professional in Supply Management® (CPSM®) designation earned an average of $125,996, up 5.4% from the previous year, and those with Certified Professional in Supplier Diversity® (CPSD™) status earned $130,441, a 3.9% increase.
- Demographic gaps persist: In 2019, the gap in average compensation between male ($131,153) and female ($106,935) supply management professionals was 22.6%. For respondents who disclosed race, those identifying as Caucasian reported an average compensation of $127,169, compared with $111,311 for Black respondents and $99,807 for Asians.
- Healthy bonuses: Sixty-six percent of respondents received a bonus in 2019, with an average bonus of $25,179, or 20.4% of average base salary (up from 18.2% in 2018).
- Industry earning power: Supply management practitioners in mining saw the highest average salaries--more than $177,000--followed by arts, entertainment and recreation (about $155,000) and petroleum and coal products (about $150,000).
Among 17 factors ranked when evaluating job opportunities, wages were the most important consideration, followed by job satisfaction, work/life balance, health-care benefits package, and pension, 401(k) or other retirement plans, respectively.
ISM's 2020 Salary Survey included more than 2,700 supply management professionals, segmenting results according to respondents' years of experience, titles, industry sectors, degrees, fields of study, certification, geography, benefits and more.