Webinar Notes: How well are YOU paid?
This week we attended a webinar that intriguingly attempted to answer the question "How well am I paid?" with regard to procurement professionals. Our notes are below. The webinar was sponsored by Next Level Purchasing, SPSM certification providers and a BMP partner. You can access the event recording directly by clicking here, although we highly recommend that you join the Next Level Purchasing Association - it is free and you will gain access to a number of valuable resources - including the full length report that inspired the webinar.
The survey was conducted in late 2010, and 2100 procurement professionals from around the globe participated. This will hopefully be the first in an annual series that provides a tangible benchmark for one of the most important pieces of data most of us are concerned with at work. Before I get into the details, a great idea that came out near the end of the live webinar was what to do if you feel you are under compensated based on the findings. Obviously speaking with your manager is a start, but taking this report in with you provides validation for your request. Any reasonable procurement professional should recognize the value in that and want to reward it. If that doesn't work, well I know a few recruiters you might want to speak with...
The survey data was sliced in nine primary ways: overall average, continent, supervisory status, title, educational level, experience, SPSM certification status, industry and compay size. In all of them, a few fairly straightforward trends emerged. It is better to work in Europe or North American than anywhere else (although Australia is not far behind). People that are more highly educated, with management responsibility, more experience, and working for large companies (over $1B) make more money than those who do not.
For the following observations, I have used the North American slice of data, because Europe was not split out.
- You get a 31% increase in salary for becoming a supervisor.
- The best jump in salary as your position improves is from buyer (a.k.a. purchasing agent or procurement specialist) to purchasing manager at 29%. Usually that involves some kind of acquired expertise in a specific category or industry.
- I was surprised that procurement professionals with high school educations or less were making an average of $60K (I think I need to bring THAT up with one of my early managers) with a 42% bump from high school level to a graduate degree, and 21% bump from bachelors to graduate level.
- Also interesting is what happened to salaries over time. Ignoring the 31+ years experience category because tha must encompass such a wide range, the best increase (19%) took place between 6-10 years, with 3-5 years not trailing by much at 16% increase over 0-2 years. So if you are new to procurement, hang in there. If nothing else, the veterans that have been doing this for over three decades must be ready to move on soon.
The most fun part of the survey was the data by industry. As I have mentioned in other posts, I originally worked for procurement in grocery retail. That falls just a few spots up from the bottom, over farmers and hotel workers. At least I know it wasn't personal.
Check it out - you'll either be pleased or have ammunition for that next review meeting.