Good News for Supply Management: ISM® Survey Reveals Higher Than Average Wage Growth and Opportunities for the Profession

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Jun 06, 2018, 01:45 ET

Average Compensation Approaches $120,000, Reports Institute for Supply Management®

TEMPE, Ariz., June 6, 2018 /PRNewswire/ -- For individuals interested in a supply management career, or already pursuing one, a new survey from Institute for Supply Management (ISM) provides good news about the profession.

ISM's thirteenth annual Salary Survey reports that supply management professionals saw higher than average wage growth last year along with the opportunity for increased earnings through stock options and bonuses. On average, supply management salaries rose 4.1 percent over 2016 salaries, versus three percent for professionals generally. Moreover, their average overall compensation was close to $120,000, and for the top 10 percent of earners, salaries approached $290,000.

"In today's global economy, excellence in supply management improves both top- and bottom-line performance, and advances companies' leadership on the worldwide stage. Supply management professionals' higher-than-average wage growth reflects the significant value they add every day," said Paul Lee, Director of ISM Research & Publications.

ISM's salary survey included approximately 3,000 supply management professionals, segmenting results according to respondents' years of experience, titles, industry sectors, degrees, fields of study, certification, and more. Among additional findings:

Hefty bonuses: 66 percent of respondents earned a bonus, and the average was nearly $24,000. Among the highest five percent of bonuses paid, the average was close to $165,000.
Stock options: For the 12.6 percent who earned them, the average value of these stock options was about $35,000, and for the top five percent, it was over $263,000.
Certification provides a big boost: Those with the ISM Certified Professional in Supply Management (CPSM^®) certification averaged 14.7 percent higher salaries than those without any certification.
Earning power by industry: Supply management practitioners in real estate, rental and leasing saw the highest average salaries--more than $175,000--followed by nonmetallic mineral products (about $154,000) and finance and insurance (about $148,000).
Engineering/technology degrees highly valued: Those with degrees in these disciplines had the highest average salary (about $133,000).
Earning power by years of experience: Just entering the industry? Emerging professionals with four or fewer years of experience earned about $78,000 on average. That jumped to about $97,000 with five to eight years' experience.

Supply management executives and practitioners can read a more in-depth summary of the findings, and then download the full survey report, which is complimentary to ISM members. For more information, please go to https://bit.ly/2AVge3X.

About Institute for Supply Management^®Institute for Supply Management^® (ISM^®) is a not-for-profit organization serving as an independent, unbiased resource for the supply management profession, worldwide. Its 50,000 members manage about $1 trillion in corporate supply chain procurement annually. Founded in 1915 as the first supply management institute, ISM drives value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM Report On Business^®, its highly regarded certification and training programs, events, corporate services and the ISM Mastery Model^®. For more information, please visit: www.instituteforsupplymanagement.org.

Contact Dawn Ringel, Warner Communications
[email protected] or 781-449-8456

SOURCE Institute for Supply Management