Trending upwards

From the October 2016 print edition
The results are in: PurchasingB2B readers have seen a salary increase over the past year. The average salary for supply chain professionals who responded to our survey increased to $84,078, up 6.9 percent from last year’s average of $78,637.
That’s according to the 2016 Annual Procurement and Supply Chain Professional Survey, the first-ever survey conducted exclusively of PurchasingB2B readers. Previously, we participated in the Annual Survey of the Canadian Supply Chain Professional, alongside two of our previous sister magazines, as well as the Supply Chain Management Association (SCMA). Our revamped research study, fielded to PurchasingB2B readers over the summer, details what supply chain professionals make in every region and indutype-of-organizationstry across
This year, the average survey respondent has 19 years of experience—12 of which are at their current company and 8.4 in their current jobs. He or she supervises 5.3 people, and 33 percent report directly to the procurement department. Another 16 percent report to finance, while 30 percent said they reported directly to the C-suite.
According to the results, the majority of respondents have seen a salary increase over the past year, with 57 percent saying that they have seen some measure of an increase. A total of 41 percent had gotten an increase of two percent or less, while 38 percent received an increase between 2.1 and four percent. Overall, 61 percent said they expected to get a raise over the next year.
education-levelAs in past years, those in the Prairie provinces did especially well in terms of salary. The highest-earning province is Alberta, with an average salary of $92,562. Not far behind is Manitoba/Saskatchewan at $90,038. Ontario came in with the next highest salary at $86,061, followed by Quebec at $85,094. Only British Columbia ($74,433) and Atlantic Canada ($59,365) fell below the national average.
Where in the country people live wasn’t the only factor affecting salaries. Unsurprisingly, the size of the company an employee works for also influences what that person takes home. Those in a company with 500 or more employees earned the most, at $93,267. Those in somewhat smaller companies (from 100 to 499 employees) earned less, with an average salary of $82,543. Organizations with less than 100 people earned the least, at $71,
As in previous surveys that PurchasingB2B has performed, male employees average higher salaries than their female colleagues. The average salary for a man working in the field is $88,718, with women earning an average of $76,913. This trends bears out as people gain more experience. With five years of experience or less, a male procurement and supply chain professional earns an average of $62,225 while his female colleague earns $59,869. That gap is wider after 16 to 20 years, with men earning $79,868 and women earning $69,590. However, the gap narrows later, with men earning $98,739 after 21 to 25 years of experience, and women earning $93,882.salary-by-position
For both male and female respondents, age played a role in how much money they took home. Those in the 26- to 35-year age range earned an average salary of $75,748, while that increased somewhat for the 36- to 45-year-old crowd, hitting $79,086. As procurement and supply chain professionals continue to move up in their careers and in age they also move up in salary: those 46 to 55 earn $83,547 and those 56 to 65 take home $93,541. Perhaps surprisingly, the average salary falls off a bit after 65, with the average being $81,914.hours-per-week
As in other professions, the type of position a person holds dictates to some degree how much money they make. Perhaps to be expected, at the top of the heap are those holding an “executive” position. The average salary for that group came in at $124,050, followed by the “managerial” group, at $90,878. “Consultants” earned $87,873, while those in a “strategic” position earned an average of $86,239. An “engineering/professional” position earns $86,043. Become a supervisor, and you can expect an average salary of $79,682, while an “operations/tactical” position will yield $73,330.
Despite recent turmoil in oil and gas, natural resources remains the highest-paying sector in Canadian procurement and supply chain. That field has an average salary of $95,508, followed by the services sector, at $83,980. Trade/wholesale averages $72,372, while manufacturing boasts an average salary of $79,501. The average salary in public administration is $89,520 and $83,865 in educational services.
level-of-interactionOverall, 61 percent said that they felt their compensation has kept up with their job responsibilities, while 38 percent said they disagreed.
Who you’re working with
The fields of procurement and supply chain have enjoyed a higher profile within their organizations, a trend supported by our recent survey results. Overall, 81 percent of respondents said that the influence they hold with senior management has increased over the past year. The closer relationship between procurement departments and their companies’ finance departments has also continued. When asked about the frequency of interactions that they have with various departments within their organizations, 79 percent of respondents said they interacted frequently with the finance department. As well, just over half (51 percent) of respondents said they have influence with the C-suite, while 85 percent agreed that their companies have come to realize that the business couldn’t function without supply chain management professionals. A total of 33 percent of respondents reported directly to procurement, while another 30 percent reported directly to the C-suite. Another 16 percent reported to finance and 20 percent said “other.”
salary-by-genderAs it turns out, this heightened partnership is viewed as a positive development by most of those who answered the survey. The majority of respondents supported that increased collaboration with the finance department. Overall, 87 percent agreed that it benefited them or their department, while 13 percent disagreed. Most respondents also saw such collaboration as something that was likely to continue into the future, with 85 percent predicting an increase in the trend for working together.
Not surprisingly, people considered education as a useful tool in advancing themselves professionally. A total of 83 percent of respondents agreed that a professional designation was helpful in getting ahead, while 62 percent felt they needed no-company-employeesfurther education. At 98 percent, the vast majority of respondents felt that the SCMP designation is relevant to their professional advancement.
Many companies agree with the importance of education, as 75 percent of respondents said their organizations paid for education courses and continuing professional development. As well, 51 percent said their companies paid for professional certification programs while 58 covered membership in professional associations.
role-referred-to-asCost control is one of the main tenants of procurement’s function and that bears out in our survey responses. A total of 27 percent of respondents said cost control was the top issue they faced over the past year and 49 percent noted cost control as the top issue they expect to confront in the next 12 months. Over the past year, forecasting came in as the second-top issue they faced at nine percent, followed by supplier relations management at seven percent. In the coming year, SRM comes in as the second-top issue (30 percent) and forecasting is third at 25 percent.
All told, survey respondents seemed pretty happy with their professional situations. The majority of respondents—91 percent—said they were “very/somewhat satisfied” with their jobs. Among those, 37 percent were “very satisfied” while 54 percent said they were “somewhat satisfied.” Only nine percent said they were “not very/not at all satisfied” with only one percent saying they were “not at all satisfied.”salary-by-age
Salaries for procurement and supply chain professionals have increased, and respondents say they’re generally happy with their lot. It appears that much of the lingering affects of recent economic uncertainty have eased their effects on the field. Hopefully that’s a trend that will continue into the New Year.