Is your salary keeping up? Our 2015 survey results paint the picture
Results are in for our 16th annual Survey of the Canadian Supply Chain Professional, and as usual they shed some interesting light on the state of compensation and satisfaction in the industry.
The survey was once again conducted in partnership with our sister publications MM&D and Purchasing B2B, as well as the Supply Chain Management Association, offering one comprehensive national survey which included responses from more than 1,200 supply chain professionals across Canada.
Once again this year we are breaking out all survey results to show the overall survey average and the results specific to Canadian Shipper readers. With a strong transportation management focus we feel it is more accurate to isolate their results. Some 53% of Canadian Shipper respondents this year work in transportation and warehousing. Over 91% of respondents work full time in supply chain.
The good news for Canadian Shipper readers is that 59% of respondents agreed, either somewhat or strongly, that their compensation level is keeping up with their job responsibilities.
Those who “somewhat disagreed” rang in at 29% while only 12% “strongly disagreed”.
Looking ahead to next year, 75% of Canadian Shipper respondents anticipate a salary increase of at least 2% while 45% anticipate their salary will rise between 2.1-4%.
The survey revealed some strong trends, many of which are positive for the supply chain sector.
Specifically, the value of education: 88% of Canadian Shipper respondents have completed tertiary levels of education and 64% said they would need further education or professional development to progress in their careers.
The top skills Canadian Shipper readers identified they’d need to do their job today were people skills (24%) followed by decision-making skills (18%).
Achieving professional designation status to get ahead in the job is something that 38% of Canadian Shipper’s readers agreed with. But 39% said they disagreed with the statement that “I should really have a professional designation to get ahead in my job”.
Industry-specific training, meanwhile, whether through courses, workshops, conferences and in-house training, is highly regarded by 55% of Canadian Shipper readers, with one-third also seeing the value of investing in a professional designation.
What kind of influence do those in a supply chain role have over their organization, at the C-level?
According to the survey, 46% of Canadian Shipper respondents say they have influence at the C-level, while 12% say they are at the C-level themselves.
And 88% of respondents in 2015 strongly agreed with the statement: “My company has come to realize our business could not function without supply chain management professionals”, another positive statement.
When looking at the influence the supply chain role has in the organization, in terms of importance to senior management, 27% of Canadian Shipper respondents “strongly agreed” that this influence is on the rise, while over 75% of respondents agreed that this was true.
If additional research and benchmarking were available, Canadian Shipper readers consider the most valuable top trend to be sales and operations planning (S&OP) (39%) followed by big data management (15%).
Narrowing down the top two supply chain issues faced over the last 12 months, 33% of readers pointed to cost control followed by transportation at 26%.
In terms of the overall list, 18%, as befits our readership, pointed to transportation, 15% said cost control, 14% reorganization, and 11% capacity shortages as the top issues they faced over the last year.
What do Canadian Shipper readers anticipate will be the top supply chain isues over the next 12 months?
The top issues are expected to be cost control (20% of respondents), capacity shortages (12% of respondents) and reorganization (11% of respondents).
Getting down to the nitty gritty, the overall average salary this year among total survey respondents came in at $92,182, with executive position salaries at $148,571 (up from $141,813 in 2014).
Overall average salary for males was $97,945 and $83,381 for females.
Three years ago we were hopeful that things were looking distinctly better when we found that 71% of our survey respondents received a salary increase, a marked improvement from dismal 2009 when only 39% received a pay increase. In 2015 however, only 62% of survey respondents reporting a pay increase, and only 46% of Canadian Shipper readers received an increase.
Looking at the size of increases received, 30% of Canadian Shipper respondents received an increase at 2% or less, while 43% received a salary increase in the range of 2.1-4% with 27% receiving increases above 6.1%.
The mean gross salary for 2015 was $91,761 for Canadian Shipper readers with 17% of our readers now pulling in base salaries of $80,000-$99,000 and 17% reporting six-figure base salaries.
Those in supply chain management positions enjoyed a mean base salary of $99,403. Those with transportation functions had a mean salary level of $88,620, up just slightly from last year’s $88,137.
When examining salary levels by position within the organization, what’s more informative than simply paying attention to the actual figures is paying attention to the gaps from one level to another. Those individuals working for companies sophisticated enough to consider supply chain as an executive-level function enjoy the greatest spread in salary levels. The mean compensation for a Canadian Shipper reader who is an executive level supply chain professional is $152,364. Understanding your company’s perspective when it comes to the value of supply chain management is critical.
Our survey also records differences in pay levels attributed to a variety of factors such as the sector you work in, the region of the country in which you are based and the size of company for which you work.
Company size makes a similar difference in base pay levels. Canadian Shipper readers working for companies with fewer than 100 people had a mean salary of $77,041. Those working for companies with 500 or more employees posted the largest compensation level at $114,079. That’s more than a $37,000 difference for those working for smaller companies.
What is the impact of personal factors such as years of experience and education? Our readers are in their top earning potential in the 21-25 year range of their career. Those in that bracket earned a mean compensation of $148,500 in 2015.