From SCDigest's On-Target e-Magazine
- July 24, 2013 -
Supply Chain News: Women in Procurement Continue to be Paid Much Less than Men
Annual Pay Study from ISM Shows Modest Growth in Pay, while Gender Gap Remains Strong
SDigest Editorial Staff
The results of the annual salary survey from ISM for supply management professionals is just in, and like the economy the news is that wages are generally rising, but slowly, while the large pay gap between men and women in procurement continues on.
SCDigest Says: |
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ISM notes that "Unlike the past few surveys, there are no areas in job position or years of experience in which the gender gap is closing." |
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What Do You Say?
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The results reflect data for 2012, from a survey of some 885 supply management professionals culled from the ISM member list earlier this year. "Salaries" were defined as regular annual pay plus any bonuses, but do not include the value of benefits.
For 2012, overall salaries in supply management averaged about $103,700, up 1.5% from the previous year but almost the same as 2010, which seems to indicate overall the salary levels have been flattening.
But that average is across all respondents, and has to be compared to the fact that respondents indicated they averaged salary increases of 4.6% in 2012, down from the 6.7% rise seen in 2011. That was among the 78% who reported receiving a salary increase. 17% said their salaries were flat, and 5% reported pay decreases, averaging -5.5%.
SCDigest will note those pay decreases could come from several scenarios: an actual decrease in salary at a current employer; a decline in the bonus component of pay for a year; taking a job at a new employer at a lower pay level, etc.
The more interesting data is really in the details beneath the high level averages.
The chart below from ISM shows salaries by position level, from Chief Procurement Officer to entry-level slots. The greenish-colored bars represent total average for each level, while the red indicates average salaries for men and the purple salaries for women.
Source: ISM Salary Survey
As can be seen, the average salaries for each level are as follows:
• Chief Procurement Officer or Equivalent: $272,979
• VP of Procurement or Equivalent: $217,099
• Director of Procurement: $144,782
• Manager of Procurement: $102,339
• Experience Procurement Specialist: $77,621
• Entry-Level Procurement Specialist: $51,578
The cause is unclear, but the survey consistently shows a sharp disparity between the salaries men and women make at each level, from almost a $180,000 gap
at the CPO level to about $12,000 at the experienced procurement specialist level. This is consistent with past ISM salary studies.
(Sourcing and Procurement Article Continues Below)
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The discrepancy is also found when salaries are viewed by years of experience, as shown in the graphic below.
Source: ISM Salary Survey
So experience appears not to be a factor in differences between in compensation between men and women. Is this evidence of real gender discrimination, or could it possibly be some other factor, such as that women tend to work in smaller companies that offer less generous pay?
ISM notes that "Unlike the past few surveys, there are no areas in job position or years of experience in which the gender gap is closing."
This seems to SCDigest as a real issue that needs further exploration, and we would be curious to see if this dynamic would be true in broader supply chain positions outside of procurement.
Finally, the survey again showed significant differences in average pay across industries, though it should be noted that the mix of respondents for each sector could greatly affect the average. In other words, if several Chief Procurement Officers with high salaries were respondents in one sector, and little no CPOs from another sector participated, that could be the real driver of average salary differences rather than true compensation levels.
That said, the highest average was in the Finance and Insurance sector, with average salaries of over $132,000. The lowest was in the Hotels and Restaurants, at about $71,000.
Other sectors of note and their averages:
• Government: $85,000
• Manufacturing: $99,000
• Retail: $95,000
• Transportation and Warehousing: $91,000
More data from the study can be found here: ISM's 2013 Salary Survey
Any reaction to this year's ISM salary survey? What the heck is going on in terms of different pay levels for men and women? Let us know your thoughts at the Feedback button (email) or section (web form) below.
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