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2024SUPPLYMANAGEMENTSALARYSURVEY

Presentedby

TableofContents

Introduction

2

High-LevelSalaryFindings 2

AverageSalariesbyPosition,AgeGroup,Gender 2

BonusesandLong-TermIncentives 5

CompensationChangesbyTypeandDegree 5

SupplyChainSpendResponsibility 6

EmployeeBenefitsandJobEnvironment 6

Competencies,TrainingandCertification 7

DemandforSkills 9

ThisreportrepresentstheresultsofasurveyofsupplymanagementprofessionalsconductedbyInstituteforSupplyManagement?(ISM?).Respondentswereaskedtoreportsalaryinformationforthe2023calendaryear.Theinformationcollectedfromthesurveyisreportedhere.Thedatahasbeenbrokendownintovariouscategories;cautionshouldbetakenwhenexaminingthevariousbreakdowns,aslowresponseratesinsomecategoriesmaymaketheinformationlessreliable.

ThispublicationcontainsgeneralinformationonlyandInstituteforSupplyManagement?,Inc.(ISM?)isnot,bymeansofthispublication,renderingaccounting,business,financial,investment,legal,tax,orotherprofessionaladviceorservices.Thispublicationisnotasubstituteforsuchprofessionaladviceorservices,norshoulditbeusedasabasisforanydecisionoractionthatmayaffectyourbusiness.Beforemakinganydecisionortakinganyactionthatmayaffectyourbusiness,youshouldconsultaqualifiedprofessionaladvisor.

?InstituteforSupplyManagement?.Allrightsreserved.Reprintedwithpermissionfromthepublisher,InstituteforSupplyManagement?.

M?

INSTTUTEFORSUPPLYMANAGEMENT

AboutInstituteforSupplyManagement?(ISM?)

InstituteforSupplyManagement?(ISM?)isthefirstandleadingnot-for-profitprofessionalsupplymanagementorganizationworldwide.Itscommunityofmorethan50,000inmorethan100countriesmanageaboutUS$1trillionincorporateandgovernmentsupplychainprocurementannually.Foundedin1915bypractitioners,ISMiscommittedtoadvancingthepracticeofsupplymanagementtodrivevalueandcompetitiveadvantageforitsmembers,contributingtoaprosperousandsustainableworld.ISMempowersandleadstheprofessionthroughtheISM?ReportOnBusiness?,itshighly-regardedcertificationandtrainingprograms,corporateservices,events,theISMSupplyChainCapabilityModel?andassessments.TheISM?ReportOnBusiness?,Manufacturing,ServicesandHospital,arethreeofthemostreliableeconomicindicatorsavailable,providingguidancetosupplymanagementprofessionals,economists,analysts,andgovernmentandbusinessleaders.Formoreinformation,pleasevisit:

HowtheSurveyWasConducted

Forthe19thstraightyear,InstituteforSupplyManagement?(ISM?)collectedsalaryandjobinformationfromsupplymanagementprofessionals.ThesurveywasadministeredfromJanuary17throughFebruary29,2024.

Arandomsampleofcustomers(includingISMmembersandnonmembers)waspulledfromISM’sdatabase.Additionally,asubstantialproportionofnon-ISMaffiliatedpractitionerswereincludedinthedataset.Anemailinvitationandfiveremindersweresentduringthesurveycycle.Toencourageparticipation,individualswereofferedanopportunitytowinaUS$50giftcard(20available).

Inall,410usableresponseswerereceived.ThedatasetincludesU.S.(85percent)andinternational(15percent)respondents.Respondentswereaskedtoreportcompensationinformationforthe2023calendaryear.Compensationincluded(reportedseparately)wages,bonusesandstockoptionsreceivedbeforetaxesanddeductions.

In2023,asinpreviousyears,ISMaskedparticipantsabouttheirgrosssalary,andthen,separately,howmuchtheirsalarychangedbetween2022and2023.Askingtwoquestions(ratherthancomputingonefromtheother)allowsISMtoanalyzechangeinsalarydirectlyandspecificallyandestimatethemagnitudesofpositiveandnegativechanges.Forthe12thtime,respondentswereaskediftheywereemployedforthefullyear.Atotalof11respondents(3percent)indicatedtheywerenotemployedforallof2023,adecreasefromthe

4percentofrespondentsreportingsameinlastyear’sSalarySurvey.

ContactUs

InstituteforSupplyManagement

309W.ElliotRoad,Suite113

Tempe,AZ85284-1556

P:+1480.752.6276

E:membersvcs@

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1

2

2024SUPPLYMANAGEMENTSALARYSURVEY

Introduction

Inanever-evolvinggloballandscape,where

economicfluctuationsandmarketdynamics

continuallyimpactcareertrajectories,

understandingprevailingsalarytrendshelpsinformprofessionalswhoarenavigatingthecomplex

terrainofsupplymanagement.

TheNineteethAnnualSalarySurveyconductedbyInstituteforSupplyManagement?(ISM?)servesasasourceofinsight.Thefindingsofthiscomprehensivesurvey—keyhighlightsareincludedhere—showthatcompensationforsupplymanagementisbothdynamicandpromising.

Asinpreviousyears,weaskedparticipantsabout

theiroverallearnings(salary,bonusandother

income,excludingstockoptions)and,separately,howmuchtheirsalarychangedbetween2022and2023.Amongthenotablehighlights,thereportedaveragesalaryhasgrowntoUS$131,049,indicativeofarobustandresilientmarket.Overthepast

eightyears,withtheexceptionof2021,thesurveyunveilsaconsistentupwardtrajectoryinaveragesalariesforbothwomenandmen,reflectinga

trendofgrowthandequitywithintheindustry.

Respondentsreportedthattheaveragechange

insalarywasanincreaseof5percent.Thisis1

percentagepointlowerthanthegainreportedfor2022(6percent).Inthisyear’ssurvey,85percentofrespondentsindicatedthattheir2023basesalariesincreased,whichis2percentagepointslowerthanthe2022figure(87percent).Alargerproportion(6percent)reportedsalaryreductionscomparedto2022(4percent).Aswasthecaselastyear,wages

andexpectedjobsatisfactioncontinuetobemostimportantinevaluatingemploymentopportunities.

TheSalarySurveyfindingsshowthatthesupplymanagementlandscapeischaracterizedby

resilience,growth,andatrackrecordofrecognizingandrewardingexcellence.Throughtheseinsights,professionalscangleanvaluableperspectivesto

helpnavigatetheircareerpathseffectively.

High-LevelSalaryFindings

Surveyrespondentsreportedthat2023salariesandoverallcompensationincreasedcomparedto

2022.Theaveragesalaryincreaseto$131,049is

6percentabovethe2022resultof$123,523.Thisisaslightturnaroundfromtheminisculedips

reportedin2022and2021.Reportedannual

changesaverageslightlyabove5percentoverthepastthreesurveysafteronlynominal2020gains,thefirstyearofthecoronaviruspandemic,and

someupanddownvolatilityinreportedchangesinthelate2010s.

Mediancompensationin2023increased5percentto$111,000from$105,795in2022.Theaverage

ofthetop10percentofearnerswas$335,921,up15percentfrom$291,226in2022.Alsoincreasingwastheaveragebasesalaryofthetop5percentofearnersin2023:$418,990,up20percentfrom$348,566in2022.

AverageSalariesbyPosition,AgeGroup,Gender

Intermsofsalariesbylevel,CPOssurveyed

reportedsignificantfluctuationswiththeirsalaries,peakingin2019at$251,729beforedeclining

sharplyto$126,042in2021,andthenreboundingto$196,844in2023.Manyfactorscouldhave

contributedtothedropsandvolatilityevidentinthedatafrom2020to2023,includingthemanyearnings-impactingchallengesacrossindustriesfacedbythetopexecutivesultimatelyresponsibleforsupplychainresultsduringthecoronavirus

pandemicandthedisruptionsitcaused(seeFigure1).

Figure1:AverageSalarybyPosition,Years2016-2023

Incontrast,vicepresidents(VPs)haveseenafairlyconsistentupwardtrend,startingat$135,757in

2016andnearlydoublingto$265,942in2023,

withanotablejumpbetween2016and2017.While2018to2021sawmostlyflatnessandslightoveralldecline,theannualgrowthrateforVPs’salaries

exceededanimpressive10percent.Directors

maintainedmodestlygrowingsalariesthroughouttheperiod,rangingfrom$153,347to$186,773.

Managers’salariesremainedconsistentlyaround$110,000;thisgroupmadeup36percentof

respondents.

Forexperiencedandemergingprofessionals,salarytrendsaremodestlycorrelatedto

theoveralleconomyduringthistimeframe.

Experiencedprofessionals’salariesfluctuated

between$78,937and$100,251,showinga

generalincreaseovertheyears.Emerging

professionals’salariesvariedbetween$63,653and$88,729,includinga2021dip,butportrayanoverallincreasefrom2016to2023.

Intermsofagegroups,perhapsunsurprisingly,thehighestaveragesalaryoccursamong

professionalsbetweenages45and54,withthis

Figure2:SalarybyAgeGroup

Age

RespondentPercentage

AverageSalary

25-34

12%

$95,818

35-44

29%

$126,418

45-54

29%

$152,264

55-64

27%

$136,240

65+

3%

$133,398

3

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Figure3:AverageSalariesbyGenderfor2023

ReportedSalaries

Total

Men

Women

Average

$131,049

$140,559

$112,761

Median

$111,000

$115,400

$91,549

Top5Percentile

$418,990

$431,276

$368,429

cohortyielding$152,264.Thepercentagedifferenceinsalarybetweenthishighest-paidgroupandthesecond-highestpaidgroup(ages55-64)is11.76

percent.Thesetwohighestsalariedbandstogetherrepresentnearly60percentofallrespondents.

Thedatasuggestanexpectedcorrelationbetween

ariseinageandinsalaryforthesector,thoughthis

relationshipcrestsaroundprimeearningyears(ages45-54)andthendiminishesslightlythereafter.Itis

usefultonotethatthesamplesizeforthe65-olderagegroupismuchsmallerthantheothers.

Bothwomen’sandmen’scompensationgrewin2023

asamajority(57percent)ofsupplymanagement

practitionersearned$100,000ormore,upfrom55

percentin2022.Theaveragesalaryforwomeninthe

fieldincreased5percentin2023to$112,761,upfrom

$107,583in2022.Menalsosawa5-percentincreaseto$140,559from$134,099(seeFigure3;2022notshown).

Mediancompensationforwomendecreased5percentto$91,549,downfrom$97,000theyearbefore(not

shown).Men’smediansalariesincreased0.3percentto$115,400(from$115,000).Atthetopend,averagesalariesforthetop5percentileofwomensurged26percentto$368,429(from$291,679).Averagesalariesforthetop5percentileofmenincreaseddramatically,up18percent,to$431,276(from$365,806).

Disaggregatingsalariesfor2023intothoseformen

andwomenbylevelrevealsalingeringpaygap.GraceZacharek,interimCPOatU.S.SteelviaBusinessTalentGroup,saysingeneralofsalarystudies,“Ifyougobackeveryfiveyears,every10years,thatgapisclosing,

whichisagoodtrend.Basically,theconclusioniswearetrendingup.”Butdiscrepanciesinthedataprove“westillhavemoreworktodo,”shesays.

Onpracticesthatmayhaveapositiveimpactonsalarydifferencesovertime,Zachareksharesacustomshe’sseenamongyoungergenerationsintheworkforce.

“Theycomparetheir(compensation)numbersallthetime,”shesays.“Whentheygetapromotion,theytelleachother,”indicatingthatmoretransparencyamongco-workerscouldpotentiallyleadtomoreequity.

Figure4:AverageSalarybyPositionandGender

2023AverageSalaries

Total

Men

Women

GenderDifference

VP&Above

$229,740

$223,853

$219,112

2.2%

Director

$186,773

$190,281

$180,491

5.4%

Manager

$108,525

$110,137

$105,639

4.3%

ExperiencedPractitioner

≥9years

$99,738

$108,623

$90,613

19.9%

EmergingPractitioner≤8years

$87,668

$86,560

$77,434

11.8%

4

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BonusesandLong-TermIncentives

Reviewingbonusesin2023,VPshadthehighestpercentageofemployeesearningabonus(80

percent)aswellasthehighestaveragebonus

amount($67,422).Thecorrelationbetweenlevelsandtheamountofbonushassomepredictabilityintermsoftheimpactofseniority,exceptforthechieflevel.Thereisafaircorrelationbetweenthepercentofrespondentsateachlevelreceiving

abonusandthevalueofthebonus,whichmayspeaktotherelativeinfrequencyoffunding

significantbonuspoolsformorejuniorpositions(seeFigure5).

AccordingtoMiguelGonzalez,CPOatDuPont,

bonusesintheprofessionappeartobe

trendingup.“Intalkingwithotherprocurement

professionals,therearemore(frequent)and

biggervariablecompensation(awards),”hesays.“Ithinkithasbecomemorecompetitivecomparedtosimilarrolesoutsideofprocurement,mostly

comparedtothecommercialfunctionslike

sales,marketing…theytraditionallyhadhigher

compensationpackagesandnow…companiesareseeingsupplychainmanagementasacommercialstrategicfunction.”

Forcompaniesawardingequitytoemployees,

time-basedrestrictedstockwasthemostcommonformoflong-termincentivereported.Thisasanupwardtrend,Gonzalezsays:“Morecompanies

aregoingtobelookingatprovidingequity,notjuststockoptions,butrestrictedstockunits,orperformancestockunits.”

Gonzalezgoesontodescribethatthisapproach“isnotonlyperformancerelated,likebonuses,buthaslonger-termimpact,usuallyvestingoveraperiodofthreeyears,”hesays.Expandingonthedualprongnatureofequitygrants,henotes,“Thiswillactbothascompensationandretention,becausethebattle(employers)needtofightinthenextfewyearsis,‘Howdoyouretainyourtoptalent?’”

CompensationChangesbyTypeandDegree

Exploringthetypesandamountsofearnings

modificationsexperiencedinthemarket,

respondentswerepolledabout10specifictypesofchangestobasepayandbonusesandthedegreeofincreaseordecrease.Meritincreaseswere

mostabundant,with62percentofrespondents

experiencinganaverageofa6.1percentincrease,1percentagepointlowerthanlastyear(seeFigure6)

Figure5:Bonusesfor2023Work

80%

78%

69%

63%

$67,422

53%

52%

$42,998

$31,208

$14,587

$12,776

$7,366

Chief

VicePresident

Director

Manager

Experienced

Practitioner

Emerging

Practitioner

AverageBonusEarnedBonusfor2023

5

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Figure6:RespondentSalaryChangesbyTypeandDegree,2022to2023

Meritincreasesin2023forsupplychainprofessionalsweremostcommonlybetween1percentand5percent,with52percentofrespondentsreportingthisrange.

Promotionsresultedinthehighestcompensation

increases,anaverageof11.5percent,comparedtoanaverageincreaseof7percentforthosechangingjobs.Paycutswererare,withonly3percentofrespondentsreportingtakingonein2023.

SupplyChainSpendResponsibility

Surveyingdegreeofspendresponsibility,thecorrelationofvolumetopositioninthehierarchyisevidentthoughtheheaviestconcentrationofspendatthedirector

level.Eighty-twopercentofdirectorsareresponsibleforamountsof$40million,while65percentofVPsand51percentofCPOsareresponsibleforsame(seeFigure7).

EmployeeBenefitsandJobEnvironment

Inadditiontocompetitivesalaries,professionals

evaluatingcareeropportunitiesprioritizejob

characteristicslikewages,jobsatisfactionandbenefits.Thesefactorsplayapivotalroleinshapingcareer

decisions,reflectingtheholisticapproachindividualsadoptwhenassessingjobopportunitieswithinthesupplymanagementsector.

Healthinsurance,paidtimeoff(PTO),andretirementplanningoptionsemergeasthecornerstoneof

benefitspackagesofferedbyemployers,asindicatedbyrespondentsinthelatestsurvey.Thesebenefitsarevaluablenotonlyforattractingtoptalentbut

alsofornurturingasupportiveandsustainableworkenvironment(seeFigure8).

Figure7:SpendResponsibilitybyPosition

6

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Figure8:BenefitsOfferedbyRespondents’Employer

(Rankedbyimportance,“mostimportant”=1.0)

3.1

Healthinsurance

3.9

4.0

4.94.9

5.6

6.9

Paidtimeoff RetirementplanRemoteworkoptionsPerformancebonuses DentalinsuranceVisioninsurance

7.5

Lifeinsurance

8.2

8.5

8.5

LongtermdisabilityShorttermdisabilityLaptopcomputer

9.4

9.7

Paidtraining/professionalcertificationWellnessprograms

9.8

10.1

10.5

Paidmaternity/familyleavePersonalcommunicationdeviceTuitionreimburstment

10.5

11.0

14.0

6.9

Remoteworkhardware(otherthanlaptop) AssociationmembershipDisinfectingorPPEsuppliesOther

IntermsPTO,“anewtrendthat’sbeenpoppingupisemployersnotpayingforany[pre-determined]accruedvacationtime,”saysStevenWelsh,CPOofMerative,adata,analyticsandtechnologypartnerforthehealthindustry.Rather,hesays,“employeescanworkwiththeirmangerstotakeasmuchas

theyneed.”P(pán)otentiallycontrarytotheintentofthisnewapproach,someemployeebenefitsobserverswonderifrequiringaconversationwithamanagercouldpotentiallylowertheamountofannual

vacationtimepursuedbyemployees.

Among17compensationplanrelatedfeatures

evaluated,respondentsdeclaredwagesasmost

important,withanaveragerankof2.8,followedbyjobsatisfaction(averagerank4.4),benefitspackage(4.8),work/lifebalance(4.8),andfinancialstabilityoftheorganization(5.6)(seeFigure9).

Thethreeleastimportantfactorswerethecompany’sactionsaddressingCOVID-19

intheworkplace(13.9),nowthatmost

companieshavedeclaredthepandemicover,

organizationalcommitmenttoenvironmental,

socialandgovernance(ESG)programs(12.3)

andreimbursementfortraining/certification

(10.9).Thefactthatreimbursementfortraining

andcertificationprogramsreceivedsuchalow

desirabilityrankingmayspeaktothehighvaluepractitionersassigntosuchtrainingregardlessofreimbursement.

Competencies,TrainingandCertification

Thesurveyrevealsthatnearlyeightoutof

10respondentsacknowledgethepresenceoforganizationaland/ordepartmentaljobcompetencieswithintheirworkplaces.

7

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Figure9:DesirableJoborEmploymentCharacteristics

(Rankedbyimportance,“mostimportant”=1.0)

2.8

4.4

4.8

4.8

Wages jobsatisfactionBenefitspackageWork/lifebalance

5.6

5.6

5.7

FinancialstabilityoftheorganizationPension/retirementplan/401(K)orsimiarplanBonuses

5.9

6.0

6.2

AdvancementopportunitiesOrganizationalculture/workenvironmentRemoteworkoptions/support

8.3

9.8

PhysicalworklocationHealthandwellnessprograms

10.6

10.7

10.9

Educationalopportunities CompanyprovidedtrainingReimbursementfortraining/certification

12.3

13.9

6.8

OrganizationalcommitmenttoESGprogramsCompany’sactionsaddressingCOVID-19intheworkplaceother

Thewidespreadadoptionofsuchstructured

approachesisoftenintendedtoenhanceclarityinjobrolesandfosterprofessionaldevelopmentbyclearlyaligningindividualskillswithorganizationalgoals.

Regardingskilldevelopment,on-the-jobtraining,professionalcertificationprograms,formal

mentoringprograms,andcompany-developed

onlinetrainingwererankedasthemosteffectivemechanismsforskilltransfer,thoughmentoringwasalsotheleastpresentinorganizationsamongthe12programtypessurveyed.Generallypositivescoresfromrespondentsabouteffectiveness

wererecordedrelativelyconsistentlyacrossthefullsetofinitiatives.Theprofession’scommitmenttocontinuouslearningandskillenhancement

improvesthelikelihoodthatprofessionalsremainadeptinaconsistentlyevolvingenvironment.

Morethanhalfofrespondentsinoursurveyare

certifiedinadesignatedareaofexpertise.Thedatasuggeststhatsupportingcertificationencourages

highernumbersofprofessionallycredentialledstaff.

Youaremorelikelytobecertifiedorencountercertifiedcolleagueswithinanorganizationthatsupportscertification.(seeFigure13).

Amongthecertificationsavailable,ISM’sCertified

ProfessionalinSupplyManagement?(CPSM?)

andCertifiedPurchasingManager(C.P.M.)stand

outasthemostwidelyrecognizedandsought-

aftercredentials.Thisrecognitionhighlightstheir

relevanceandinfluenceinvalidatingexpertiseand

proficiencywithinthesupplymanagementprofession.RespondentswithaCPSMearnedanaveragesalaryof$160,316(15percentmorethantheaverageof

$139,730reportedin2022and41percentmorethanrespondentswithnocertifications).ThosewhohaveearnedaCertifiedProfessionalinSupplierDiversity?(CPSD?)earnedanaveragesalaryof$227,887(40

percentmorethantheaverageof$163,038reportedfor2022and100percentmorethanrespondents

withnocertifications).

8

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Figure10:TrainingEffectiveness

Welshsays,“Credentialingpaysoff,youcanseeitin

DemandforSkills

thestatisticalnumbers.Youcanseeitinthehiring.”

Regardingskillsthathelpprofessionalsstandout,

Welshshouldknow.HeisaDoctorofBusiness

Welshsaysemotionalintelligence,negotiation,

Administrationwithafocusonsupplychain,

andbeingunafraidtoaskaquestionarecritical.In

employeeretention,credentialingandcertification.

termsofembracingtechnology,“oneskillisearly

Welsh’sdoctoralthesisincludedacorehypothesis,

adoptionbyyourpersonalself,”Welshsays.“The

validatedbyhisresearch:“Credentialinghelpsyouin

peopleinthedepartmentthatgrabholdofthetools

findingyournextjob.”

firstaretheonesthataregoingtohavethegreaterchancetomoveforward.”

Whileitisuncleartowhatdegreeemployers

rewardcertificationexplicitly,thecompetencyand

Zacharekagreeswithalearning-centricdisposition.

confidencegainedfromsuchtrainingtendsto

“Ithinkitstartswiththepersonwhowantstolearn

becomeevident.AsZacharekputsit,