ISM 2014 Salary Survey Includes Updated Data on Supply Chain Compensation
A majority of respondents received a bonus
ISM certified professionals earn a higher salary
(Tempe, Ariz.)Â Â -- The Institute for Supply Management (ISM) released its 2014 Salary Survey that revealed a decrease in salary for the average professional, and the fact that compensation was the most important factor for job candidates evaluating job opportunities in the supply chain industry.
ISM’s Ninth Annual Salary Survey finds that the average base compensation for all participating supply management professionals was $101,608 in U.S. dollars, a decrease of 2 percent compared to the average for 2012 ($103,793).
A majority of respondents (62 percent) still received a bonus in 2013 (down from 68 percent in 2012). The median bonus was $8,300, up 4 percent from 2012. The study showed that total compensation package that includes bonuses and stock options significantly increases pay.
Meanwhile “Amount of Pay” emerged as the most important feature of a new position for supply chain related job candidates, followed by “Likely Job Satisfaction,” then “Prospect of Improved Work/Life Balance” and “Benefits Package Offered.”
“Overall it was a year where employers appeared to be careful in managing their expenses and many organizations may have cut back on salaries and bonuses,” said ISM Director of Research Paul Lee. “However we do not feel this will have an adverse effect on salaries moving forward as there are signs that supply management remains an industry where competition for the top talent remains fierce.”
Other findings included:
• Respondents who held ISM’s CPSM® certification earned $103,415 on average in 2013, compared to $96,655 for those who lacked any designation.
• Forty-five percent of respondents indicated that they moved into supply chain from another field. Most left their former profession after eight or fewer years in that other field.
• Supply management professionals working in the field for 15 or more years can expect to earn 56 percent more than those with four or fewer years of experience.
A total of 2,316 usable responses were received for the online survey from supply chain professionals primarily in the United States, as well as from other countries. The survey garnered a net response rate of 8 percent.
Graphical and tabular reports from the 2014 Salary Survey will be available at www.ism.ws under the ISM Career Center in early May. ISM Members can receive a detailed report at no charge while nonmembers can purchase it for $249. Contact ISM at www.ism.ws to learn more.
Institute for Supply Management® (ISM®) is the first supply management institute in the world. Founded in 1915, ISM's mission is to enhance the value and performance of procurement and supply chain management practitioners and their organizations worldwide. By executing and extending its mission through education, research, standards of excellence and information dissemination — including the renowned monthly ISM® Report On Business® — ISM maintains a strong global influence among individuals and organizations. ISM is a not-for-profit educational association that serves professionals with an interest in supply management who live and work in more than 80 countries. ISM offers the Certified Professional in Supply Management® (CPSM®) and Certified Professional in Supplier Diversity® (CPSD®) certifications.
