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Introduction
T
120,000 100,000 80,000
his report presents the results of a survey of supply management professionals conducted by Institute for Supply Management (ISM) during January and February 2012. Respondents were asked to report salary information for the 2011 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 professionals who responded to the survey was $102,218 (which includes wages, bonuses and other income received before taxes and deductions). The average salary for the men who responded was $112,404, compared with $85,433 for women respondents. The median salary was $90,000, with the highest salary reported at $682,000 and the lowest at $11,000. In all, 41 percent of respondents reported earning $100,000 or more. The average salary is broken down by a number of different variables in the tables and charts that follow.
Average Salary
Total Average High Salary Median Men Women $85,433 $682,000 $75,057 $102,218 $112,404 $682,000 $452,000 $90,000 $100,000
Average
Median
200,000 150,000 100,000 50,000 0 Chief Director Vice President Total Men Women Experienced Other Professional Manager Entry-Level Professional
150,000
120,000
90,000
$
60,000
30,000
1-2 years
3-5 years
6-10 years
11-20 years
21 years or more
or the seventh year in a row, ISM has collected information from various supply management professionals. The survey was conducted during January and February of 2012. Random samples of customers were pulled from an ISM database that included both members and nonmembers. An email message requesting participation was then sent to these customers. In all, a total of 826 responses were received, representing a response rate of 6.6 percent. ISM staff tabulated the responses and set the confidence interval for the overall mean salary as plus or minus approximately 3.8 percent. Respondents were asked to report salary information for the 2011 calendar year. Salary included wages, bonuses and other income received before taxes and deductions. For the second time, we asked if respondents were employed the full year. Twenty-four,
F
2
200,000
150,000
100,000
50,000
150,000
120,000
$97,201 $109,088
90,000
$
60,000
30,000
Business
Other
Total
120,000
90,000
$
60,000
30,000
CPSD
C.P.M.
A.P.P.
CPIM
One or more certifications Not certified Certified Professional in Supply Management (CPSM) Certified Professional in Supplier Diversity (CPSD) Certified Purchasing Manager (C.P.M.) Accredited Purchasing Practitioner (A.P.P.) Certified in Production and Inventory Management (CPIM)
200,000
150,000
* * $59,859 $76,025
0
100,000
50,000
Capital Equipment Chemicals Construction Electronics Electrical Components Food/Beverages/Perishables Fuel/Energy/Utilities Healthcare and Related Indirect Goods Information Technology Machinery Manufacturing Components/Materials
Capital Equipment 106.1 Chemicals 104.9 Construction 105.6 Electronics, Electrical Components 102.5 Food/Beverages/ Perishables 120.7 Fuel/Energy/Utilities 110.6 Healthcare and Related 115.8 Indirect Goods 112.8 Information Technology 108.5 Machinery 104.2 Manufacturing Components/ Materials 100.2 Metals 103.3 Office Equipment/ Supplies 103.1 Packaging 107.8 Services 108.7 Telecommunications 114.5 Transportation/ Logistics 108.5
66.8 63.9 72.4 69.2 68.8 71.1 80.2 68.8 73.5 63.8
97.8 96.7 102.9 95.5 87.1 92.7 90.0 99.1 94.8 98.3
141.2 136.4 135.9 135.3 149.6 139.3 136.2 148.1 132.8 132.4
213.4 409.0 185.5 272.5 281.2 272.5 212.5 409.0 206.1 330.0 194.7 409.0
231.9 312.6 220.7 230.0 198.8 227.7 206.5 209.7 195.1 330.0 343.0 351.2 409.0 343.0
Transportation/Logistics 0 Total Experienced Professional Manager Director V.P. Chief 100 200 300 400 500
Thousand $
Items marked with a (*) indicate that three responses or less were received for this category and were not reported.
Business Planning Cost/Price Management Disposition/Investment Recovery Distribution Finance Inventory Control Logistics Market Intelligence Materials Management Outsourcing Performance and Measurements Product/Service Development Purchasing/Procurement Quality Receiving Relationship Management Risk Management Social Responsibility Strategy Development Supplier Diversity Sustainability Transportation/Traffic/Shipping Warehousing/Stores 0 Total Experienced Professional Manager Director V.P. Chief 100 200 300 400 500 600 700
Average Salary by Position and Business Processes/Components of Supply Management Responsibility (Thousand $)
Total Experienced Pro Manager Director V.P. Chief
Thousand $
Business Planning 116.6 Cost/Price Management 104.5 Disposition/ Investment Recovery 117.8 Distribution 114.4 Finance 105.6 Inventory Control 97.1 Logistics 106.9 Market Intelligence 125.6 Materials Management 104.0 Outsourcing 108.5 Performance and Measurements 106.5 Product/Service Development 109.6 Purchasing/ Procurement 100.2 Quality 97.2 Receiving 94.6 Relationship Management 104.9 Risk Management 112.2 Social Responsibility 109.1 Strategy Development 119.1 Supplier Diversity 109.1 Sustainability 109.1 Transportation/ Traffic/Shipping 110.0 Warehousing/Stores 98.8
77.1 71.5 74.0 69.1 79.0 65.0 70.1 81.3 65.2 69.8 74.7 69.9 71.5 67.0 59.0 72.6 75.9 64.2 81.7 75.0 64.2 72.4 59.7
101.8 101.9 101.6 95.6 81.5 93.7 97.4 113.5 98.5 102.2 103.0 98.7 97.7 103.2 85.6 104.9 109.5 100.7 112.0 102.4 100.7 90.0 89.8
141.8 141.8 142.0 126.4 132.1 126.7 129.5 158.6 137.9 143.6 132.6 119.7 138.3 128.8 119.5 139.4 152.5 146.8 158.4 143.8 146.8 124.7 122.0
187.6 349.5 218.7 308.6 189.0 170.6 * 180.3 163.4 226.8 196.4 218.4 182.8 178.3 256.0 293.0 682.0 215.2 362.5 352.3 309.6 204.0 293.0 456.0
211.8 290.8 203.0 230.0 186.5 230.0 205.7 286.8 188.0 167.0 205.0 230.0 222.0 295.7 197.8 456.0 205.0 230.0 200.3 186.5 311.5 156.0
500
400
Average Salary by Position and Dollar Amount of Annual Spend for Which They Are Responsible (Thousand $)
Total Experienced Pro Manager Director V.P. Chief
Thousand $
300
200
100
Under 500,000
Less than $500,000 $500,001 $10.9 million $11 million $39.9 million $40 million $100 million More than $100 million
Items marked with a (*) indicate that three responses or less were received for this category and were not reported.
Under 50 million
Under 100
101 500
501 2,000
2,001 5,000
5,001 10,000
$105,154
Pacific (AK, CA, HI, OR, WA) Mountain (AZ, CO, ID, MT, NM, NV, UT, WY) West North Central (IA, KS, MN, MO, ND, NE, SD) West South Central (AR, LA, OK, TX) East North Central (IL, IN, MI, OH, WI) East South Central (AL, KY, MS, TN) South Atlantic (DC, DE, FL, GA, MD, NC, SC, VA, WV) Middle Atlantic (NJ, NY, PA) New England (CT, MA, ME, NH, RI, VT)
$88,636
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri
$67,625 $93,559 $102,316 * $114,736 $104,171 $108,401 $97,267 $84,875 $85,403 $106,604 * * $115,149 $88,996 $89,690 $87,600 $103,923 $86,968 * $165, 756 $109,750 $97,573 $94,165 * $95,438
Montana Nebraska New Jersey Nevada New Hampshire New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
* $88,636 $114,683 $86,240 * $60,827 $111,657 $104,410 * $114,118 $77,655 $103,372 $101,513 * $85,981 * $97,874 $105,306 $73,644 * $108,488 $85,349 * $93,945 *
Items marked with a (*) indicate that three responses or less were received for this category and were not reported.
Bonuses
Bonuses were earned by 63.6 percent of all respondents. The average bonus received was $20,471, which represented about 20 percent of the total gross salary received. The highest reported bonus was $357,000. 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)
$ Amount Average High Median $20,471 $357,000 $17,749 % of Gross Salary 20.0% 52.3% 19.7%
25,000
20
20,000
15
15,000
$
10,000
10
5,000
Average
Median
80 70 60 50
Bonus by Position
Percentage Chief, Purchasing/ Supply Management/Sourcing Vice President, Purchasing/ Supply Management/Sourcing Director, Purchasing/ Supply Management/Sourcing Manager, Purchasing/ Supply Management/Sourcing Experienced Supply Management Professional Entry-Level Supply Management Professional Other 66.7% 90.9% 70.4% 60.7% 52.6% 30.8% 46.4% % of Gross Salary 31.2% 26.1% 19.7% 16.1% 10.4% 4.7% 13.3%
100
80
60
%
40
20
Chief
Percentage 1-2 years 3-5 years 6-10 years 11-20 years 21 years or more 33% 73% 63% 64% 63%
40 30 20 10 0 1-2 years 3-5 years 6-10 years 11-20 years 21 years or more
Department/Team Results
Stock Options
While stock options were not included as a part of salary, they were earned by 16 percent of the respondents. The average estimated dollar value of the stock options received was $26,533. The median was $10,000. Information on stock options received is broken down by different variables in the tables and charts that follow.
Average
Median
20.0
15.0
Chief, Purchasing/ Supply Management/Sourcing Vice President, Purchasing/ Supply Management/Sourcing Director, Purchasing/ Supply Management/Sourcing Manager, Purchasing/ Supply Management/Sourcing Experienced Supply Management Professional Entry-Level Supply Management Professional Other
96,000
40
72,000
30
$
48,000 20
24,000
10
Chief
50,000
50
40,000
40
30,000
30
$
20,000 20
10,000
10
1-2 years
3-5 years
6-10 years
11-20 years
21 years or more
10
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 3% Association Membership 35% Childcare 5% Dental Insurance 89% Elder Care 4% Health Club Membership 20% Health Insurance 92% Identity Theft Protection 3% Life Insurance 86% Long-Term Care 33% Long-Term Disability 73% Paid Maternity/Family Leave 46% Paid Training/Professional Certification 54% Personal Communication Device (Cellphone, Laptop, PDA, etc.) 51% Personal Legal Services 11% Pension/Retirement Plan/401(K) or Similar Plan 85% Sabbatical 2% Short-Term Disability 69% Tuition Reimbursement 70% Vehicle/Vehicle Allowance 9% Vision Insurance 72%
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 4.60. The average scores for each item are reported. Advancement Opportunities Benefits Package 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 4.19 4.54 3.86 3.64 4.56 4.60 3.32 4.14 4.44 4.39 3.97
Other items of importance mentioned multiple times include flexible work schedule and telecommuting options.
11
Demographics of Respondents
Respondents by Position
Total Chief, Purchasing/ Supply Management/Sourcing Vice President, Purchasing/ Supply Management/Sourcing Director, Purchasing/ Supply Management/Sourcing Manager, Purchasing/ Supply Management/Sourcing Experienced Supply Management Professional Entry-Level Supply Management Professional Other 1% 3% 17% 36% 36% 2% 5% Men 71% 77% 77% 65% 45% 50% 49% Women 29% 23% 22% 35% 54% 50% 51%
80 70 60 50
40 30 20 10 0 Chief Director Vice President Experienced Other Professional Manager Entry-Level Professional
None of the responses given for Other was cited more than once.
35 30 25 20
15 10 5 0
Multiple responses given for Other include: chief operating officer (COO), executive director, executive vice president, general manager and vice president of operations.
Director
Other
Manager
Respondents by the Dollar Amount of Annual Spend for Which They Are Responsible
Less than $500,000 $500,001 - $10.9 million $11 million - $39.9 million $40 million - $100 million More than $100 million 6% 26% 22% 20% 24%
30 25 20
15 10 5 0
$
12
Institute for Supply Management
80 70 60 50
40 30 20 10 0 Total Men Women 1-2 years 3-5 years 6-10 years 11-20 years 21 years or more
80 70 60 50
40 30 20 10 0 High School Some Associates Bachelors Masters College Degree Degree Degree Doctorate Degree
Other
Multiple responses given for Other include: accounting, biology, communications, economics, finance and international business.
13
100
80
60
%
40
20
C.P.M.
CPIM
CPCM
CPPO
MCIPS
SCMP Other
CPSD
A.P.P.
CIRM
CPPB
CSCP
PMP
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 0 10 20 30 40 50
14
Business Planning Cost/Price Management Disposition/Investment Recovery Distribution Finance Inventory Control Logistics Market Intelligence Materials Management Outsourcing Performance and Measurements Product/Service Development Purchasing/Procurement Quality Receiving Relationship Management Risk Management Social Responsibility Strategy Development Supplier Diversity Sustainability Transportation/Traffic/Shipping Warehousing/Stores 0 10 20 30 40 50 60 70 80
Multiple responses given for Other include: category management and strategic sourcing.
Women
Respondents by Gender
Women Men 40% 60%
Men
Respondents by Race
American Indian Asian Black Caucasian Hispanic Pacific Islander Other 0.6% 3.2% 5.6% 83.5% 4.5% 0.1% 2.0%
Caucasian
15
Respondents by Industry
Accommodation and Food Services (Hotels, Food and Drinking Places) 1.5% Agriculture, Forestry, Fishing and Hunting 0.6% Arts, Entertainment and Recreation (Performing Arts, Museums, Amusement Industries) 0.5% Construction 1.8% Educational Services 4.1% Finance and Insurance 3.1% Government/Public Administration 5.9% Healthcare and Social Assistance 6.5% Information (Publishing, Motion Picture & Sound, Broadcasting, Telecommunications, Internet Publishing and Service Provider Industries) 2.5% Management and Administrative Services 0.8% Manufacturing 46.4% Mining (Includes Oil and Gas Extraction and Other Mining) 3.8% Professional, Scientific and Technical Services 3.0% Real Estate, Rental and Leasing 0.1% Retail Trade 2.1% Transportation and Warehousing 2.0% Utilities 5.8% Wholesale Trade 2.3% Other Services, Except Government 5.4%
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 WholesaleTrade Other Services, Except Government 0 10 20 30 40 50
Under 50 million
10,001 or more
501-2,000
5,001 - 10,000
2,001-5,000
16
151 or more
Under 10
81-150 31-80
11-30
17