Hanging in there
Take heart—even in a recession, logistics professionals have seen their paychecks grow by 2 percent.
By John Shanahan Associate Editor -- Logistics Management, 4/1/2003
The numbers are in for our 2002 Salary Survey, and they look suspiciously familiar. Hold them up against the figures from 2001, and they are virtually the same. There are some differences, of course, but they are slight. The average salary, for example, inched up by just 2.2 percent to $77,700. (See Figure 1.) The number of employees supervised by managers stayed essentially the same, and most people once again reported that yes, they're doing more—and for about the same pay.
One thing that is different is the makeup of respondents to this year's survey. Of the nearly 700 respondents, more than 60 percent said they did not participate in last year's survey. Admittedly, that could skew the figures in a direct comparison to last year. But the fact that survey results both years were nearly identical despite the difference in the pool of respondents appears to confirm how widespread today's difficult employment conditions really are.
Clearly, readers are still in the grip of the same bad economy that led companies to slash their workforces last year while demanding more from their employees. "Companies have had massive layoffs and reductions in force, and yet they still have to continue to produce," says Alex Metz, president of Hunt Ltd., a search firm in Lyndhurst, N.J., that specializes in logistics. "The output has to be there. Departments have gotten smaller but their expectations have not shrunk."
Is this a trend that's going to continue? "I'd like to say I hope not," Metz says. "How long can these people continue to [work this way]? You talk to some people about the hours they put in, and they're prohibitive. You can do it for a short time, but not for the long haul."
In other words, you're doing more work for about the same money. For the time being, at least, it looks like that's the way things are going to stay.
Some Were Up, Some Were DownIncome levels for logistics professionals wobbled a bit in 2002. Some survey respondents reported that their paychecks dipped by a percentage point or so, while others saw them rise by about that much.
Still leading the earnings pack were vice presidents and general managers, who reported average salaries of $121,800, followed by corporate and divisional managers ($109,300), supply chain managers ($86,800), logistics managers ($73,800), and operations managers ($70,500). Other titles fell well below that level. (See Figure 2.) Corporate/division, supply chain, operations, purchasing, and assistant traffic managers all saw slight increases last year, while average salaries for all other titles were lower than they were in 2001.
Individual respondents reported getting raises averaging 4.3 percent. This was one of the few places where both sexes were treated equally. The average increase for men was 4.3 percent; for women, 4.2 percent. Nearly half (48 percent) of respondents reported getting raises of 3 percent or less, and of that number, 23 percent said they got no increase whatsoever. Two percent actually saw their salaries decrease.
The gender gap narrowed a bit in 2002, according to the numbers. On average, men made $81,200, compared to women at $59,700. That's a difference of $21,500, down very slightly from the $22,200 difference in the 2001 survey. In a salary breakdown by gender, three-fourths of male respondents reported earning more than $50,000 per year, compared to 46 percent of female respondents. Additionally, although 48 percent of the male respondents said they made more than $75,000, just 21 percent of the women achieved that same salary bracket. The differences are all the more striking considering that on average, women respondents are just a little younger and have just four fewer years of experience. The biggest difference between men and women was in the number of subordinates they supervise—about 15 for men and 6 for women. (See Figure 3.)
Money continues to flow toward the educated and experienced. Logistics professionals who hold MBAs now average $103,000 per year, up from $96,000 in 2001. Sixty-six percent of respondents have a college diploma, and the average salary for the 44 percent who only have an undergraduate degree is $79,000. The numbers aren't bad, though, even if you don't have a degree. Respondents with some college education average $65,000 per year, and high school graduates still command a respectable $60,000. The chances of getting above the $75,000 mark are low in those categories, however. Just 23 percent were able to clear that bar, compared to 69 percent of respondents with undergraduate or graduate degrees. And of that 23 percent, only 3 percent never went further than high school.
The average respondent has 17.8 years of experience under his or her belt, which typically translates into a salary between $50,000 and $74,900. Respondents who make more than that have been working in the field for 20 years or better; those who have been around for 30 years or more now make $85,000 on average.
In an economy where there aren't many jobs to be had, it comes as no surprise that respondents are staying with their employers longer than they have in the past. The average male worker in the survey has stayed with his company for 10.5 years compared to a flat 10 percent in 2001. Likewise, the average female worker has been there for 12 years, compared to 10.5 years in 2001. Twenty-four percent of those surveyed have been with the same company for 6 to 10 years; another 22 percent have logged 3 to 5 years. Only 10 percent of respondents said they have been with the same company for 25 years or more.
Location Matters Sometimes, of course, where you live and what you do influence how much you make. The Pacific region holds sway when it comes to getting top dollar, offering an average salary of $88,600. The South Atlantic, Middle Atlantic, East South Central, and West South Central regions all fall between $81,800 and $82,900—just $1,100 apart. The remaining regions were far behind, with $71,000 or less. (See Figure 4.)
The nitty gritty of your job responsibilities, beyond what your title suggests, also factors into your paycheck. Respondents whose job functions focus on strategy and technology make the most. For example, corporate officers and those whose primary responsibilities include supply chain management, computer systems, and planning made more than $100,000 on average. More narrowly focused operations areas like materials handling and traffic were at the lower end of the scale. (See Figure 5.)
Regardless of what you do, chances are good that in 2002, you did even more of it—and then some. As was the case in our 2001 survey, an average of 81 percent of respondents said that the number of functions they perform has increased over the past two to three years. That represents a range from 75 percent of those with vice president and general manager titles to a high of 90 percent of private-fleet managers. (See Figure 6.) The same pattern appears when you look at job functions. For example, 91 percent of those involved in supply chain management and 94 percent of those whose primary job function is materials handling said they are shouldering more responsibilities.
Logistics Management' s readers may be taking on a lot of extra work, but they're doing so with the same size staffs reporting to them. In 2001, the average number of people working under respondents was 13.4; in this latest survey, that dipped by just a tenth of a point to 13.3 subordinates.
More of the Same? Throughout the 19-year history of our annual salary survey, the numbers have reflected the nation's job market and the U.S. economy. When times were good, salaries jumped—witness the five-grand leap between 2000 and 2001 at the height of the dot-com boom. It's not surprising, then, that respondents reported flat salaries this year, reflecting the impact of a lingering economic recession.
Will it be more of the same next year? If the economy picks up again, logistics professionals can look forward to more money in their pockets—and perhaps more staff to help get the job done. But if the economy continues to wallow in recession, it's a good bet that they'll be singing the same tune again next year.
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