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Category: Procurement and Sourcing

 Supply Chain News: Annual ISM Procurement Salary Report Released


How does Your Compensation Stack Up?

June 17, 2020
SCDigest Editorial Staff

For the 15th year, the Institute for Supply Management is out with its annual salary report for procurement professionals, this year based on survey results from some 2700+ supply managers from those new to the profession to chief procurement officers.

The survey was conducted between mid-January and mid-February 2020, and based on 2019 compensation data. Salary levels include both base pay and any bonus payments.

Supply Chain Digest Says...

66% of respondents received a bonus in 2019, with an average bonus of $25,179, or 20.4% of average base salary.

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The headline news is that average compensation growth for supply management practitioners rose for the third straight, with average overall 2019 compensation across all levels reaching $123,226, a 3.3% increase compared to 2018, when the average was $119,271.

The increase in 2019 is double the 1.6% rise reported for 2018 versus 2017. This year, 87.6% of respondents indicated their base salaries increased in 2019, and of those, the average increase was 5.5%.

The numbers look somewhat different when viewed from median levels (half above, half below) versus average compensation.

The median compensation in 2019 increased 3.6% to $106,000 - quite a bit lower than the average of $123,000 – but it was up from $102,352 in 2018.

At the high end, the average compensation of the top 10% of procurement pros was $286,211, up 2.5% from $279,139 in 2018. Also increasing was the average base salary of the top 5% of earners in 2019: $344,909, up 1.2% from $340,956 in 2018.

As usual, ISM also calculated average pay across different levels in the respondents’ organizations, and then broke that down by pay for men versus women, as shown in the graphic below.



Source: ISM

"Emerging practitioners" pulled in almost $79,000 annually, while managers about averaged over $116,000 and directors about $161,000.

However, continuing a trend found from the start of the annual survey, at all levels men make substantially more than women – about $65,000 less at the CPO level.

(See More Below)



The reason for this gender pay delta remains unclear.

Additional key findings include:

• Certification edge: Respondents with a Certified Professional in Supply Management designation earned an average of $125,996, up 5.4% from the previous year, and those with Certified Professional in Supplier Diversity status earned $130,441, a 3.9% increase.

• Demographic gaps persist: In 2019, the gap in average compensation between male ($131,153) and female ($106,935) supply management professionals was 22.6%. For respondents who disclosed race, those identifying as Caucasian reported an average compensation of $127,169, compared with $111,311 for Black respondents and $99,807 for Asians.

• Healthy bonuses: 66% of respondents received a bonus in 2019, with an average bonus of $25,179, or 20.4% of average base salary (up from 18.2% in 2018).

• Industry earning power: Supply management practitioners in mining saw the highest average salaries - more than $177,000 - followed by arts, entertainment and recreation (about $155,000) and petroleum and coal products (about $150,000).

Among 17 factors ranked when evaluating job opportunities, wages were the most important consideration, followed by job satisfaction, work/life balance, health-care benefits package, and pension, 401(k) or other retirement plans, respectively.

The full report is available at no cost to ISM members, and for $299 for non-members.

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