SUPPLY CHAIN COMPENSATION SURVEY
Earnings growth outpaces pandemic pressure again
by Rick Dana Barlow Photo credit: IRStone |
stock.adobe.com
at 65 miles per hour southeast across the Oklahoma plains during the Dust Bowl of the early 1930s, compensation levels for supply chain professionals continue to inch up in front of the ongoing pandemic aftershocks. Some 16 months into the COVID-19 pan-
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demic that dominated 2020 and threatens to push deeper into 2021 and residually linger into 2022, supply chain pros remain inexorably linked to the multiyear crisis. Yet even though unexpected demand spikes for hygienic and personal protective equipment (PPE) and logistics issues surrounding vac- cine development and distribution, among other concerns, illuminated the supply chain’s startling fragility, supply chain pros can heave a soft sigh of mild relief as the criticisms and doubts experienced during 2020 didn’t permanently damage the infra- structure so much as light a fuse for change. While pandemic-related compensation effects may not truly be realized until 2022 or 2023, particularly if little-to-no improve- ments are instituted from the analysis of the COVID-19 response, the results of Healthcare Purchasing News’ 2021 Supply Chain Com- pensation Survey once again offer some welcoming takeaways.
uch like barely scooting your Ford Model T ahead of the billowing 10-foot-high cloud chasing you
For the second consecutive year, the aver- age salary for a Director/Manager of Materi- als Management/Supply Chain surpassed the six-figure ceiling, according to the survey. Department leaders reported an average annual salary of $105,693, a 4.5% gain above 2020’s average of $101,174, which was itself a larger 7.5% increase over 2019’s statistic. Yes, the growth may be leaner and slower but nonetheless significant.
Meanwhile, Value Analysis Directors/ Managers/Coordinators joined the “six- digit club” for the first time, the HPN survey showed. Value Analysis leaders reported an average annual salary of $102,395, a 14.4% jump from the prior year. The question remains Does that reflect an amplification of value analysis’ importance during times of crisis or merely an indication of differing respondent pools? More sobering: Of the seven titles HPN rou- tinely surveys every year, only three reported year-over-year salary increases. Purchasing Directors/Managers represent the third title that recorded a rise in salary to $74,659, a more modest 3.9% increase above $71,875 listed in 2020, but still well above the level of inflation. See the chart below for the tally. Although not illustrated this year, the overall supply chain management compen- sation composite index (CCI), something of
SALARY BY TITLE AND GENDER Senior Buyer/Buyer/Purchasing Agent
Executive/Senior/Corporate VP, Materials/Supply Chain Management/Support Services
Value Analysis Director/Manager/Coordinator O.R. Materials Manager/Business Manager COO/Chief Purchasing Supply Chain Officer Administrator/President/CEO
2020
Director/Manager, Materials/Supply Chain Management $101,174 Purchasing Director/Manager
$71,875 $52,500 $206,000
$89,500 $70,938 $239,500 N/A
an unscientific salary stew of results derived by the average aggregate salary of all survey respondents) reached an all-time high this year at perhaps one of the industry’s lowest points (courtesy of the pandemic fallout). In fact, since 2005, HPN has recorded 10 CCI increases. Conservatively, if the momentum continues, the CCI should poke through the six-digit milestone within two to three years. This element, while more trivial than statisti- cally significant, measures more of a subjec- tive impression of attitude and direction. As a continuing customary cautionary caveat, HPN advises readers that survey data and trending perspectives hinge on a variety of demographic elements that include the number and mix of respondents by job title, facility type and location and gender. For example, more senior-level executives who lead centralized integrated delivery network (IDN) operations generally will elevate sal- ary data, while more buyers at community hospitals may push the salary data lower. Once again HPN monitors five key trend- ing areas, many of which are illustrated in the charts and graphs within this annual feature. Let’s start with prominence and proximity.
Pandemic punctuation
For the second year in a row, the average annual salary for Supply Chain leaders at
$105,693 $74,659 $50,592 $182,794
$102,395 $66,500 $209,583 $185,000
*3.7% of survey responders opted not to share their gender, but are include in the salary summaries. 54 June 2021 • HEALTHCARE PURCHASING NEWS •
hpnonline.com
2021 2021-FEMALE 2021-MALE $91,096
$63,199 $45,999 $123,750
$103,947 $59,423 $57,500 N/A
$115,450 $90,588 $62,000 $197,708
$90,833 $79,642 $240,000 $185,000
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