SUPPLY CHAIN COMPENSATION SURVEY
county other program. Do job descriptions in Supply Chain, Value Analysis, Purchasing say ‘prefer’ or ‘must have,’ and do those with CMRP, CVAHP and other designations get the job and/or earn more?
“A Supply Chain trend that started as a groundswell in the mid-2000s was a deliber- ate hiring of individuals from outside health- care who have advanced degrees/training/ certifications in Process Improvement, Project Management, Analytics, LEAN/Six Sigma, to elevate how Supply Chain can remove waste and quickly contribute to improving the delivery of care,” she reflected. “These hires come with a salary to assure they stay long enough to affect your business strategy.”
Age, experience, longevity Logic states that the more experience you gain over time (think age now) and the longer you remain with an organization, the more dollars, influence, perks and power you can earn. Yet, some seem to achieve similar outcomes by hopping around facilities in one segment (provider) or even multiple segments (GPO, supplier).
The consensus? No sure thing either way. “My experience is that moving periodi- cally is the trigger to higher salary gains,” Starr indicated. “It is unfortunate that strong employees are not rewarded as highly for staying at an organization as they are for moving to another. I think much of this situ- ation is caused by budget or human resource policies related to annual increases. On the other hand, changing jobs too frequently will impact your reputation, and doesn’t allow an individual to demonstrate that they can make big, strategic changes [that] have a lasting impact on an organization’s success.” Dolan agrees somewhat. “Salary and compensation tend to increase when you transition roles,” he acknowl- edged. “Most organizations adopt a stan- dard promotional rate for internal team members. These rates can be significantly lower than those moving to different employ- ers. You can see an offer that is substan- tially higher depending on the applicant’s role. There may be some variations in internal equity that play into the salary point. Employers want to ensure that hir- ing someone into a role does not go over a particular percentile within the pay scale, so an applicant does not max out too quickly for compensation.
From a team and organizational stand-
point, I would instead incentivize stability and longevity as with transitioning of leaders comes the counter to stable and productive environments,” Dolan countered. “Teams feel it with changing leadership direction. The organization feels it with a shifting tone of the department’s service. A professional may
seek alternative employment if their current organization is either not prepared for the role they want (i.e., chief supply chain officer) or held tightly to the compensation manual.” Clinton, on the other hand, flips the senti-
ment.
“Personally, I’ve been fortunate enough to be able to get promoted without having to move around,” he chimed. “Which is how I like it. There is a lot to be said for staying put, embracing the hard tasks, and taking a long- term view of your career. Granted, no one should ever have to remain in an untenable situation, but the ability to learn the culture of a place is not something you can do quickly.” Strain looks at it from economic and human resource perspectives. “Through personal experience, there is a disadvantage to longevity at one organiza- tion either after a certain number of years or when there are economic changes overall, e.g., late 1970s or the 2007-2009 era when recession affected markets,” she explained. “If it is the former reason, when new hires are made into similar roles the salary is com- mensurately higher. Those who have been in an organization longer can sour the environ- ment, talk behind their back to others or may force them to leave so they can have another go at a salary/title bump.
“Reasons again can be economics,” she continued. “Pay range changes that may not affect incumbents, or the new hire’s salary at their previous place of employment may not be matched, and they settle at a lower value because of the role itself. Also, the education/
SALARY BY REGION, TITLE & GENDER PACIFIC
Director/Manager, Materials/Supply Chain Management
Purchasing Director/Manager
Senior Buyer/Buyer/Purchasing Agent MOUNTAIN
Director/Manager, Materials/ Supply Chain Management
Purchasing Director/Manager
Senior Buyer/Buyer/Purchasing Agent CENTRAL
Director/Manager, Materials/ Supply Chain Management Purchasing Director/Manager
Senior Buyer/Buyer/Purchasing Agent NORTHEAST
Director/Manager, Materials/ Supply Chain Management Purchasing Director/Manager
Senior Buyer/Buyer/Purchasing Agent SOUTHEAST
Director/Manager, Materials/ Supply Chain Management Purchasing Director/Manager
Senior Buyer/Buyer/Purchasing Agent
trainingcertification qualifications may be equal but the total number of years of expe- rience may account for salary differences within a pay range.”
Strain points to HR policies that can exert
pressures on the hiring and compensation process through role and salary assessments they perform based on four factors: time frames that fit their organization, state, or federal established schedules
• when there appears to be a disparity in those filling a role
• a new role is required • a case-by-case basis when asked by a department or service-line management. “These surveys are customarily performed by geographic region by role type based on the marketplace in which these positions occur, e.g., healthcare,” she continued. “This factor is important when establishing your department organization structure, the roles that will fill out the positions and most importantly what title you give these roles. Employees may feel a vote of confidence and importance by their new title, but if HR cannot find a role match when performing the human resource assessment and can only slot in a close match, you and the employee may be caught in a salary vortex. This could be another pain point that may be influencing the HPN Salary Survey.” HPN
Visit
hpnonline.com/21222439 for additional
charts and expanded coverage. References: 1.
https://hbr.org/2021/02/research-to-reduce-gender-bias-in- hiring-make-your-shortlist-longer 2.
www.aauw.org/app/uploads/2020/12/SimpleTruth_2.1.pdf
MALE 2021 2020 FEMALE 2021 2020
$160,937 $140,625 $126,250 $67,500 $90,000 $117,500 $75,000
N/A
$37,500 $52,500 $52,500 $56,250 2021
2020 2021 2020
$109,000 $96,250 $86,875 $78,750 $65,000 $82,500 $24,999 $52,500
2021
N/A $62,500 $52,500 $52,500 2020
2021 2020
$94,062 $90,500 $94,500 $93,929 $58,333 $70,000 $89,166 $45,357
$62,500 $52,500 $36,666 $52,500 2021
2020
$66,500 2021
2021 2020
$121,944 $111,471 $82,833 $90,500 $96,666 $64,167 $73,500 $80,000
2020
N/A $51,388 $52,500 2021
2020
$107,222 $115,000 $86,000 $72,500 $92,500 $97,500 $62,500 $90,000
N/A $54,167 $40,999 $44,167
hpnonline.com • HEALTHCARE PURCHASING NEWS • June 2021 57
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