This report presents the results of a survey of supply management practitioners and professionals conducted by

Transcription

1 ISM s 213 Introduction This report presents the results of a survey of supply management practitioners and professionals conducted by Institute for Supply Management (ISM) during January and February 213. Respondents were asked to report salary information for the 212 calendar year. The information collected from the survey is reported here. The data are broken down into various categories where that information was thought to be of interest. Caution should be taken when examining the various breakdowns, as low response rates in some categories may make the information less reliable. Items marked with a (*) indicate that three or fewer responses were received for this category and are not reported. Demographic information for all respondents is provided at the end of this report. Salary Data The average annual compensation for supply management practitioners who responded to the survey was US13,793 (which includes wages, bonuses and other income received before taxes and deductions). The average salary for the men who responded was 113,716, compared with 86,35 for women respondents. The median salary was 89,, with the highest salary reported at 65, and the lowest at 24,96. In all, 4 percent of respondents reported earning 1, or more. The average salary is broken down by a number of different variables in the tables and charts that follow. 2, 18, 16, 14, Average Salary Average 13, ,716 86,351 High Salary 65, 65, 362, Median 89, 198, 76,732 12, 1, 8, 6, 4, 2, Average Median Institute for Supply Management 1

2 ISM s 213 SALARY SURVEY Average Salary by Position 4, 35, Chief, Purchasing/ Supply Management/Sourcing 272,979 33, 122,875 Vice President, Purchasing/ Supply Management/Sourcing 217,99 226, ,125 Director, Purchasing/ Supply Management/Sourcing 144, , ,128 Manager, Purchasing/ Supply Management/Sourcing 12,339 16,183 95,15 Experienced Supply Management Professional 77,621 82,885 7,96 Entry-Level Supply Management Professional 51,578 53,173 5, ,48 146,915 72,599 3, 25, 2, 15, 1, 5, Chief Director Vice President Experienced Professional Manager Entry-Level Professional Average Salary by Years of Work Experience 1-2 years 62,499 67,899 54, years 84,274 94,568 67, years 89,371 1,671 73, years 16, ,386 9,35 More than 2 years 117, ,131 99,874 15, 12, 9, 6, 3, 1-2 years 3-5 years 6-1 years 11-2 years 21 years or more How the Survey Was Conducted For the eighth year in a row, ISM has collected information from various supply management practitioners and professionals. The survey was conducted during January and February of 213. Random samples of customers were pulled from an ISM database that included both members and nonmembers. An message requesting participation was then sent to these customers. In all, a total of 885 responses were received, representing a response rate of 6 percent. ISM staff tabulated the responses and set the confidence interval for the overall mean salary as plus or minus approximately 4 percent. Respondents were asked to report salary information for the 212 calendar year. Salary included wages, bonuses and other income received before taxes and deductions. For the third time, we asked 2 if respondents were employed the full year. Thirty-six, or 4.1 percent, of the respondents indicated they were not employed the full year (compared with 2.9 percent in 211 and 2.4 percent in 21). The results posted exclude those not employed for the full calendar year of 212. More detailed data from this survey are available on the ISM website. A brief summary of the results is available to the general public, while a detailed report is available at no charge to ISM members. Nonmembers may purchase the detailed report for US199. The reports can be accessed in the ISM Career Center at *Note: Not all of the percentage of respondents adds up to 1 percent, as every respondent did not answer every question on the survey. Institute for Supply Management

3 ISM s 213 SALARY SURVEY 2, Average Salary by Highest Level of Education Completed 15, 1, 5, High school 76,526 82,32 72,193 Some college 82,989 99,395 69,864 Associate s degree 83,67 88,282 79,748 Bachelor s degree 95,931 11,953 83,844 Master s degree 128, ,239 16,83 Doctorate degree 175, ,3 18,5 High School Some College Associate s Degree Bachelor s Degree Master s Degree Doctorate Degree 15, 12, 9, 6, 3, Average Salary by Major of Those With a College Degree Liberal Arts 92,849 12,81 81,644 Business, other than Supply Management 18,51 115,138 94,635 Supply Management/ Supply Chain Management 13, ,71 74,919 Technical/Engineering 12,78 125,84 91,81 (please specify) 9,753 13,612 78,233 Liberal Arts Business (other than Supply Management) Supply Management Technical/ Engineering Average Salary by Certification Status 15, 12, 9, 6, 3, One or Not more certified certifications CPSM CPSD C.P.M. A.P.P. CPIM One or more certifications 19,18 12,923 89,79 Not certified 97,418 15,344 83,12 Certified Professional in Supply Management (CPSM ) 16, ,857 93,952 Certified Professional in Supplier Diversity (CPSD ) 11,44 19,984 92,13 Certified Purchasing Manager (C.P.M.) 112, ,522 78,42 Accredited Purchasing Practitioner (A.P.P.) 95, ,917 67,369 Certified in Production and Inventory Management (CPIM) 112, ,522 78,42 (continued next page) Institute for Supply Management 3

4 ISM s 213 SALARY SURVEY Average Salary by Certification Status (cont.) 2, Certified Professional Contracts Manager (CPCM) 149,522 * * Certified Professional Public Buyer (CPPB) 77,573 85,31 72,6 Certified Public Purchasing Officer (CPPO) 85,447 87,733 8,875 Certified Professional Purchaser (CPP) 72, * 61,75 Certified Supply Chain Professional (CSCP) 117,64 124,3 * Member of the Chartered Institute of Purchasing and Supply (MCIPS) 111,98 111,98 * Project Management Professional (PMP) 113, ,694 * Supply Chain Management Professional (SCMP ) * * * 19,49 117,867 97,179 15, 1, 5, CPCM CPPB CPPO CPP CSCP MCIPS PMP SCMP Average Salary by Position and Spend Category Responsibility (Thousand ) Capital Equipment Chemicals Construction Experienced Pro Manager Director V.P. Chief Capital equipment Chemicals Construction Electronics, electrical components Food/beverages/ perishables Fuel/energy/utilities Healthcare and related Indirect goods Information tech Machinery Manufacturing components/materials Metals Office equipment/ supplies Packaging Services Telecommunications Transportation/ logistics Electronics Electrical Components Food/Beverages/Perishables Transportation/Logistics Experienced Professional Manager Director V.P. Chief Fuel/Energy/Utilities Healthcare and Related Indirect Goods Information Technology Machinery Manufacturing Components/Materials Metals Office Equipment/Supplies Packaging Services Telecommunications Thousand Items marked with a (*) indicate that three responses or less were received for this category and were not reported. 4 Institute for Supply Management

5 ISM s 213 SALARY SURVEY Manager Director V.P. Chief Business Planning Cost/Price Management Disposition/Investment Recovery Inventory Control Market Intelligence Materials Management Outsourcing Performance and Measurements Product/Service Development Purchasing/Procurement Quality Receiving Relationship Management Risk Management Strategic Sourcing Strategy Development Supplier Diversity Supplier Relationship Management Sustainability/Social Responsibility Transportation/Traffic/Shipping Warehousing/Stores Experienced Professional 5 4 Distribution Finance Logistics Operations Packaging Thousand Average Salary by Position and Business Processes/Components of Supply Management Responsibility (Thousand ) Experienced Pro Manager Director V.P. Chief Business planning Cost/price management Disposition/ investment recovery Finance * Inventory control Logistics Market intelligence Materials management Operations Outsourcing Packaging * Performance and measurements Product/service development Purchasing/procurement Quality Receiving Risk management Strategic sourcing Strategy development Supplier diversity Supplier relationship management Sustainability/social responsibility Transportation/ traffic/shipping Warehousing/stores Average Salary by Position and Dollar Amount of Annual Spend for Which They Are Responsible (Thousand ) Thousand Manager Director V.P. Chief Under 5, 5,1-1.9 million Experienced Professional 11 million million 4 million - 1 million More than 1 million Experienced Pro Manager Director V.P. Chief Less than 5, * * * 5,1-1.9 million * 11 million million * * 4 million - 1 million * * More than 1 million Items marked with a (*) indicate that three responses or less were received for this category and were not reported. Institute for Supply Management 5

6 ISM s 213 SALARY SURVEY Average Salary by Industry Accommodation and Food Services (Hotels, Food and Drinking Places) 71,782 Agriculture, Forestry, Fishing and Hunting 88,89 Arts, Entertainment and Recreation (Performing Arts, Museums, Amusement Industries) 125,35 Construction 13,269 Educational Services 97,834 Finance and Insurance 132,813 Government/Public Administration 85,276 Healthcare and Social Assistance 111,81 Information (Publishing, Motion Picture & Sound, Broadcasting, Telecommunications, Internet Publishing and Service Provider Industries) 119,679 Management and Administrative Services 16,774 Manufacturing 99,855 Mining (Includes Oil and Gas Extraction and Mining) 131,27 Professional, Scientific and Technical Services 13,511 Real Estate, Rental and Leasing * Retail Trade 95,71 Transportation and Warehousing 91,668 Utilities 13,258 Wholesale Trade 92,569 Services 11,318 Accommodation and Food Services Agriculture, Forestry, Fishing and Hunting Arts, Entertainment and Recreation Construction Educational Services Finance and Insurance Government/Public Administration Healthcare and Social Assistance Information Management and Administrative Services Manufacturing Mining Professional, Scientific and Technical Services Real Estate and Rental and Leasing Retail Trade Transportation and Warehousing Utilities Wholesale Trade Services 5, 1, 15, 2, Average Salary by Annual Gross Revenue of the Organization Under 5 million 81,259 5 million - 5 million 89, million - 1 billion 12, billion - 4 billion 117, billion - 1 billion 16,987 More than 1 billion 115,143 12, 1, 8, 6, 4, 2, Under 5 million 5 million million - 5 million 1 billion 1.1 billion - 4 billion 4.1 billion - 1 billion More than 1 billion Average Salary by Employees in the Organization Under 1 88, , , 95,787 2,1-5, 123,836 5,1-1, 97,17 1,1 or more 114,498 12, 1, 8, 6, 4, 2, Under , 2,1-5, 5,1-1, More than 1,1 6 Institute for Supply Management

7 ISM s 213 SALARY SURVEY Average Salary by Geographic Region 98,389 93,857 87, ,42 11,368 86,851 15,86 16,7 114,783 Pacific (AK, CA, HI, OR, WA) 98,389 Mountain (AZ, CO, ID, MT, NM, NV, UT, WY) 93,857 West North Central (IA, KS, MN, MO, ND, NE, SD) 87,725 West South Central (AR, LA, OK, TX) 112,42 East North Central (IL, IN, MI, OH, WI) 11,368 East South Central (AL, KY, MS, TN) 86,851 South Atlantic (DC, DE, FL, GA, MD, NC, SC, VA, WV) 16,7 Middle Atlantic (NJ, NY, PA) 15,86 New England (CT, MA, ME, NH, RI, VT) 114,783 Average Salary by State 98,157 89,824 78,74 86,24 7,973 12,269 98, ,43 73,17 84,3 68,199 87,57 116,884 12,175 8,933 9,215 92,744 93, ,147 98,937 16,45 98,49 62,395 18,875 17,873 16,689 84,56 1,218 93,247 88,3 14,219 19,747 97,75 166, 142, ,842 Alabama * Alaska * Arizona 98,795 Arkansas * California 12,269 Colorado 115,43 Connecticut 166, Delaware * District of Columbia * Florida 19,747 Georgia 16,689 Hawaii * Idaho 78,74 Illinois 16,45 Indiana 98,49 Iowa 8,933 Kansas 68,199 Kentucky 62,395 Louisiana 93,766 Maine * Maryland 111,842 Massachusetts 97,75 Michigan 111,147 Minnesota 12,175 Mississippi * Missouri 9,215 Montana * Nebraska 84,3 New Jersey 142,238 Nevada 84,514 New Hampshire 84,56 New Mexico 73,17 New York 1,218 North Carolina 14,219 North Dakota * Ohio 98,937 Oklahoma 87,57 Oregon 89,824 Pennsylvania 93,247 Rhode Island * South Carolina 17,873 South Dakota * Tennessee 18,875 Texas 116,884 Utah 7,973 Vermont * Virginia 88,3 Washington 98,157 West Virginia * Wisconsin 92,744 Wyoming * Items marked with a (*) indicate that three responses or less were received for this category and were not reported. Institute for Supply Management 7

8 ISM s 213 SALARY SURVEY Bonuses Bonuses were earned by 69 percent of all respondents. The average bonus received was 18,571, which represented about 18 percent of the total gross salary received. The highest reported bonus was 25,. Respondents were instructed to include any bonuses earned as part of their gross salary. The value of any stock options received is reported separately. Information on bonuses received is broken down by different variables in the tables and charts that follow. Average Amount of Bonus (before taxes and deductions, excluding stock options) 25, 2 Amount of Gross Salary Average 18, High 25, 18 Median 8, 7.8 2, 15 15, 1 1, 5, 5 Average Median Amount of Gross Salary of Respondents Who Received a Bonus of Gross Salary of Gross Salary Bonus by Position 1 of Gross Salary Chief, Procurement/ Supply Management/Sourcing Vice President, Procurement/ Supply Management/Sourcing Director, Procurement/Supply Management/Sourcing Manager, Procurement/Supply Management/Sourcing Experienced Procurement and Supply Management Practitioner Entry-Level Procurement and Supply Management Practitioner Chief Director Vice President of Gross Salary Experienced Practitioner Manager Entry-Level Practitioner 8 Institute for Supply Management

9 ISM s 213 SALARY SURVEY Bonus by Years of Experience of Gross Salary 1-2 years years years years years or more years 3-5 years 6-1 years 11-2 years 21 years or more of Gross Salary Individual Results Criteria Bonus Is Based On Company results 57.8 Department/team results 13.9 Individual results Department/Team Results Company Results Stock Options While stock options were not included as a part of salary, they were earned by 1.5 percent of the respondents. The average estimated dollar value of the stock options received was 31,26. The median was 15,. Information on stock options received is broken down by different variables in the tables and charts that follow. Average Estimated Value of Stock Options Received 3, 25, Average 31,26 High 5, Median 15, 2, 15, 1, 5, Average Median Institute for Supply Management 9

10 ISM s 213 SALARY SURVEY of Respondents Who Received Stock Options 35, 2. Average Estimated Value , , ,541 3, , 2, 1. 15, 1, 5. 5,. Average Estimated Value Stock Options by Position 12, 5 Chief, Purchasing/ Supply Management/Sourcing 45 74,6 Vice President, Purchasing/ Supply Management/Sourcing ,71 Director, Purchasing/ Supply Management/Sourcing 21 32,1 Manager, Procurement/Supply Management/Sourcing 1 12,989 Experienced Procurement and Supply Management Practitioner 5 17,122 Entry-Level Procurement and Supply Management Practitioner 4 4,25 4 6, 96, 72, 48, 24, Chief Average Estimated Value Vice President Director Experienced Practitioner Manager Entry-Level Practitioner Stock Options by Years of Experience 5, years 6 * 3-5 years 8 24, years 9 47, years 11 2, years or more 11 35,368 4, 4 3, 3 2, 2 1, years 3-5 years 6-1 years 11-2 years 21 years or more Average Estimated Value Items marked with a (*) indicate that three responses or less were received for this category and were not reported. 1 Institute for Supply Management

11 ISM s 213 SALARY SURVEY Additional Benefits Received Accounting/Tax Services Association Membership Dental Insurance Health Club Membership Health Insurance Identity Theft Protection Life Insurance Long-Term Care Long-Term Disability Paid Maternity/Family Leave Paid Training/Professional Certification Personal Communication Device Personal Legal Services Pension/Retirement Plan Sabbatical Short-Term DIsability Tuition Reimbursement Vehicle/Vehicle Allowance Vision Insurance Advancement Opportunities Benefits Package Childcare Elder Care Bonuses Educational Opportunities Financial Stability of the Organization Job Satisfaction Organizational Commitment to Social Responsibility Programs Organizational Culture/ Work Environment Wages Work/Life Balance Work Location Respondents were asked to indicate the additional benefits they received beyond wages, bonuses and stock options. The percentage of respondents who selected each option is reported below. Accounting/tax services 2 Association membership 44 Childcare 4 Dental insurance 91 Elder care 3 Health club membership 23 Health insurance 94 Identity theft protection 2 Life insurance 87 Long-term care 3 Long-term disability 74 Paid maternity/family leave 44 Paid training/professional certification 56 Personal communication device (cellphone, laptop, PDA, etc.) 54 Personal legal services 11 Pension/retirement plan/41(k) or similar plan 86 Sabbatical 3 Short-term disability 7 Tuition reimbursement 69 Vehicle/vehicle allowance 9 Vision insurance 75 Importance of Various Items in the Employment Decision Respondents were asked to indicate the importance they place on the following items as they relate to their choice of job and employer. A 5-point scale was used, with 1 meaning not important and 5 meaning very important. Job satisfaction was the highest-rated option, with an average score of The average scores for each item are reported. Advancement opportunities 4.22 Benefits package 4.54 Bonuses 3.8 Educational opportunities 3.59 Financial stability of the organization 4.56 Job satisfaction 4.57 Organizational commitment to social responsibility programs 3.21 Organizational culture/work environment 4.16 Wages 4.45 Work/life balance 4.4 Work location 4.6 items of importance mentioned multiple times include profit sharing, transportation/parking support, employee stock ownership programs and flexible spending accounts. Institute for Supply Management 11

12 ISM s 213 SALARY SURVEY Demographics of Respondents Respondents by Position Chief, Procurement/ Supply Management/Sourcing Vice President, Procurement/ Supply Management/Sourcing Director, Procurement/ Supply Management/Sourcing Manager, Procurement/ Supply Management/Sourcing Experienced Procurement and Supply Management Practitioner Entry-Level Procurement and Supply Management Practitioner position titles mentioned multiple times include materials manager and intern. Respondents by Who They Report Chief Director Vice President 35 Experienced Practitioner Manager Entry-Level Practitioner Chief Executive Officer or President 7 Chief Financial Officer 7 Chief Procurement/ Supply Management Officer 5 Vice President, Procurement/ Supply Management/Sourcing 11 Director 27 Manager 34 1 Multiple responses given for include: chief operating officer (COO), senior vice president/vice president operations, vice president support services, senior director and vice president finance Chief Executive Officer or President Chief Purchasing/ Supply Management Officer Director Chief Financial Officer Vice President Manager Respondents by the Dollar Amount of Annual Spend for Which They Are Responsible Less than 5, 6 5,1-1.9 million million million 26 4 million - 1 million 2 More than 1 million Less than 5, 5,1-1.9 million 11 million million 4 million - 1 million More than 1 million 12 Institute for Supply Management

13 ISM s 213 SALARY SURVEY Respondents by Years of Work Experience 1-2 years years years years years or more years 3-5 years 6-1 years 11-2 years 21 years or more 9 Respondents by Highest Level of Education Completed High school Some college Associate s degree Bachelor s degree Master s degree Doctorate High School Some College Associate s Degree Bachelor s Degree Master s Degree Doctorate Degree Supply Management/ Supply Chain Management Business, other than Supply Management Liberal Arts Technical/ Engineering Respondents With a College Degree by Major Liberal Arts 8 Technical/Engineering 9 Business, other than Supply Management 51 Supply Management/ Supply Chain Management 9 23 Multiple responses given for include: accounting, communications, education, finance and international business. Institute for Supply Management 13

14 ISM s 213 SALARY SURVEY Respondents by Certification Overall, 56 percent of respondents reported that they held one or more certifications. The percentage of men with one or more certifications was 63 percent, and the percentage of women with one or more certifications was 37 percent. The percentage of respondents holding various certifications and the breakdown by gender is reported below. Certified Professional in Supply Management (CPSM ) Certified Professional in Supplier Diversity (CPSD ) Certified in Supply Management (CSM ) Certified Purchasing Manager (C.P.M.) Accredited Purchasing Practitioner (A.P.P.) Certified in Production and Inventory Management (CPIM) Certified Professional Contracts Manager (CPCM) Certified Professional Public Buyer (CPPB) Certified Public Purchasing Officer (CPPO) Certified Supply Chain Professional (CSCP) Member of the Chartered Institute of Purchasing and Supply (MCIPS) 1 Project Management Professional (PMP) 1 1 Supply Chain Management Professional (SCMP ) Multiple responses given for include: Certified Management Accountant (CMA), Certified Public Accountant (CPA) and Professional Engineer. Capital equipment 43 Chemicals 29 Construction 26 Electronics, electrical components 41 Food/beverages/perishables 17 Fuel/energy/utilities 18 Healthcare and related 9 Indirect goods 37 Information technology 25 Machinery 28 Manufacturing components/materials 46 Metals 25 Office equipment/supplies 25 Packaging 32 Services 38 Telecommunications 19 Transportation/logistics 3 Multiple responses given for include: fleet, print and MRO items. 14 Respondents by Spend Categories for Which They Are Responsible CPSM CPSD CSM C.P.M. A.P.P. Capital Equipment Chemicals Construction Electronics, Electrical Components Food/Beverages/Perishables Fuel/Energy/Utilities Healthcare and Related Indirect Goods Information Technology Machinery Manufacturing Components/Materials Metals Office Equipment/Supplies Packaging Services Telecommunications Transportation/Logistics CPIM CPCM CPPB CPPO CSCP MCIPS PMP SCMP Institute for Supply Management

15 ISM s 213 SALARY SURVEY Business Planning Cost/Price Management Disposition/Investment Recovery Distribution Finance Inventory Control Logistics Market Intelligence Materials Management Outsourcing Packaging Performance and Measurements Product/Service Development Purchasing/Procurement Quality Receiving Risk Management Strategic sourcing Strategy Development Supplier Diversity Supplier Relationship Management Sustainability/Social Responsibility Transportation/Traffic/Shipping Warehousing/Stores Respondents by Business Processes/ Components for Which They Are Responsible Business planning 12 Cost/price management 65 Disposition/investment recovery 13 Distribution 14 Finance 6 Inventory control 37 Logistics 29 Market intelligence 2 Materials management 39 Outsourcing 17 Packaging 18 Performance and measurements 34 Product/service development 1 Purchasing/procurement 86 Quality 19 Receiving 19 Risk management 25 Strategic sourcing 66 Strategy development 31 Supplier diversity 37 Supplier relationship management 71 Sustainability/social responsibility 17 Transportation/traffic/shipping 21 Warehousing/stores 19 Multiple responses given for include contracts and training. Respondents by Gender Pacific Islander Hispanic American Indian Asian Black Respondents by Race American Indian.5 Asian 2.6 Black 3.3 Caucasian 87.6 Hispanic 3.2 Pacific Islander Caucasian Institute for Supply Management 15

16 ISM s 213 SALARY SURVEY Respondents by Industry Accommodation and food services (hotels, food and drinking places) 1.5 Agriculture, forestry, fishing and hunting.6 Arts, entertainment and recreation (performing arts, museums, amusement industries).7 Construction 3.7 Educational services 4.1 Finance and insurance 3.7 Government/public administration 5.2 Healthcare and social assistance 4.7 Information (publishing, motion picture and sound, broadcasting, telecommunications, Internet publishing and service provider industries) 2.1 Management and administrative services.4 Manufacturing 43.7 Mining (includes oil and gas extraction and other mining) 5.6 Professional, scientific, and technical services 3.2 Real estate, rental and leasing.4 Retail trade 1.7 Transportation and warehousing 2.2 Utilities 6.5 Wholesale trade 2.1 services, except government 8. Accommodation and Food Services Agriculture, Forestry, Fishing and Hunting Arts, Entertainment and Recreation Construction Educational Services Finance and Insurance Government/Public Administration Health Care and Social Assistance Information Management and Administrative Services Manufacturing Mining Professional, Scientific and Technical Services Real Estate and Rental and Leasing Retail Trade Transportation and Warehousing Utilities Wholesale Trade Services, Except Government Respondents by Annual Gross Revenue of the Organization Under 5 million 12 5 million - 5 million million - 1 billion billion - 4 billion billion - 1 billion 14 More than 1 billion 27 More than 1 billion 4.1 billion - 1 billion 1.1 billion - 4 billion Under 5 million 5 million - 5 million 5.1 million - 1 billion Respondents by Employees in the Organization Under , 18 2,1-5, 12 5,1-1, 12 1,1 or more Under 1 1,1 or more , 5,1-1, 2,1-5, Institute for Supply Management

17 ISM s 213 SALARY SURVEY Under 1 51 or more Respondents by the Number of Employees in the Supply Management Organization Under or more 14 Institute for Supply Management 17