Supply Excellence — 7 Ways to Boost Your Salary

7 Ways to Boost Your Salary

May 23rd, 2008 · by Tim Minahan · No Comments · skills rectruitment and development, supply management

ISM just released the 2008 edition of its salary survey (which, is a misnomer considering it’s based on 2007 salaries and benefits). And there’s good news and bad news.

The good news: according to the survey, the average salary for a supply management professional climbed 4.3% last year, continuing its upward climb. In addition, about two-thirds of supply managers also received bonuses in 2007.

The not-so-good news: the increase is only slightly ahead of the rise in inflation we’ve seen here in the U.S. over the past year.

ISM reported that the average salary for supply management professionals rose to $88,380. (That figure was slightly higher than the average salary of $84,611 reported in Purchasing Magazine’s annual salary survey.) But who wants to be average? Certainly not Supply Excellence readers.

Both the ISM and Purchasing Magazine surveys provide some great insights into what ambitious procurement and supply managers must do to climb the corporate ladder and boost your take-home pay:

Stay in school: ISM reported that supply managers with a master’s degree can expect to earn 26% more than those with only a bachelor’s degree. And those with a doctorate degree report 36% higher salaries, on average, than those with a master’s degree. Degrees within a technical or engineering field yield the highest payback, regardless of the level. (Ironically, those with a supply management degree, while earning higher than the average, earned less than those with technical/engineering, business, or liberal arts degrees.)
Get your street creds: ISM reports that the average salary of supply managers who hold at least one credential — such as ISM’s own Certified Professional in Supply Management (CPSM) or the Senior Professional in Supply Management (SPSM) Certification from NextLevel Purchasing — is 6% higher than those who do not.
Get experienced: The ISM survey also saw salaries climb with experience. For example, those with three to five years experience earn almost $12,000 more annually than those with less experience.
Manage more (and different) spend: Not surprisingly, ISM found that a supply managers’ salaries rose in proportion with the amount of spend they managed. What’s more intriguing is that Purchasing found that salaries were highest for those managing non-traditional spend categories, such as business services, IT, and logistics.
Go corporate: Purchasing’s salary survey found that supply managers working at corporate boast 44% higher salaries, on average, than their counterparts working in the plants.
Think big: Purchasing reports a direct correlation between the size of company you work for and your take home pay. Supply managers working for companies with annual sales above $500 million earn 52% more than those working at companies with annual sales below $125 million.
Choose the right industry: ISM reports that average supply management salaries were highest in the following industries: Arts, Entertainment, and Recreation; Healthcare and Social Assistance; and Hotel and Food Services. Interestingly, Purchasing found the highest average salaries for supply management professionals in completely different industries: financial services; energy/mining/utilities; and computers and related equipment.