37th Annual Salary Survey: Salaries level-off

Nearly 400 logistics professionals made the time to participate in our annual salary survey this year, with many of them still working virtually from home offices. Our analysts at Peerless Research Group (PRG) note that while career paths may have been diverted due to pressures of quarantine, most survey respondents remained upbeat about the future.

“Thanks to unemployment benefits and government relief checks, most managers seemed reconciled to the flattening salary picture,” says Brian Beaudette, director of research at PRG. “What impressed us most was the confidence reflected in a rebound.”

Almost half of this year’s respondents reported increased salaries, but in keeping with the previous salary observations, this is less than the previous year, when 62% reported a salary increase. Only 9% experienced a decrease, which is good news in a tough year.

As might be expected, there’s a steep slope upwards for age of survey respondents. This year, 71% of respondents are age 45 and over and only 25% of respondents were women. Given the age of the sample, this is no great surprise, observes Beaudette.

“There also no surprise that the number of functions performed by survey respondents increased over the past two years to three years,” says Beaudette. “This trend will continue. Logistics management is in the news every day, and for good reason. Economic shifts toward more efficient distribution and traceability, and a realization of the importance of taking a more holistic, systems-level perspective on the whole ecology of businesses has only just begun.”

More for less

Technology makes it easier for companies to put more functions under fewer managers, and few leaders have the insights into the overall business that logistics managers have.

This year, the number of respondents who considered themselves “highly knowledgeable” in e-commerce and e-fulfillment has actually gone down, albeit slightly—38% and 39% in 2019 and 2020, respectively, and 35% in 2021. The percentage of respondents who consider themselves “somewhat knowledgeable” has slightly increased from 52% in 2019 to 54% in 2021.

“This no doubt reflects some the harsh realities of a year that witnessed an unprecedented growth in e-commerce and e-fulfillment,” says Michael Gravier, associate professor of marketing and supply chain management at Bryant University. “There’s nothing like being thrown into the deep end of the pool to make you doubt your swimming skills.”

Gravier adds that as e-commerce and e-fulfillment become more competitive and sophisticated, we might see the percentage of “highly knowledgeable” go down for another few years. Despite these new fulfillment challenges and the fact that many are doing more for less, most respondents are happy with their jobs. In fact, 38% say they’re happy where they are, while 32% say they’re always open to opportunities.

“The level of satisfaction with the career in logistics is very high, with 44% very satisfied and 45% somewhat satisfied,” Gravier notes. “This would be expected given the demographics of the respondents. We find a lot of career professionals who have been in the industry for decades, and even in a challenging year, there must be some satisfaction derived from the fact that logistics management is now in the news, and society realizes more than ever its importance.”

Intrinsic motivation

By a significant margin, the root of the sense of satisfaction with the job seems to be intrinsic motivation, with most respondents citing “feeling of accomplishment” as the factor that most greatly affects their satisfaction with their job. Next come the practical—and required—benefits, job security and salary, followed closely by relationship with colleagues.

Curiously, only 22% cited advancement opportunities as a factor in job satisfaction, although this might reflect the seniority of most respondents who are close to reaching the end of upward mobility. Job dissatisfaction factors include “politics” and lack of adequate technology.

Jim Baehr, a partner with the supply chain consultancy Sourcing Strategies Group, notes that the “somewhat satisfied” response may indicate that managers may be uncertain as to what the future holds for careers as well as salaries.

“Job security seems to be the overriding concern,” says Baehr. “This may be made worse by remote working where managers are even more removed from corporate leadership. When you are out of sight, you may be out of mind. And this causes some anxiety about being politically engaged while working in a virtual environment.”

Sara Gordon, head of customer success at Adecco USA, a division of a global human resources firm, says compensation often ranks among the top three for employee satisfaction and retention. “Logistics management roles are in high demand and crucial, not just to organizations, but also to the U.S. economic recovery,” she says. “Employers should be prepared to offer a competitive salary and consider total compensation options, like bonuses and relocation packages, in order to attract top logistics talent.”

Because PRG data shows that only 5% of respondents are actively searching for a new role, employers may need to work hard to entice logistics managers to explore new job opportunities. “Today’s logistics talent wants to work for a leader or company they believe in,” says Gordon. “So, employers need to evaluate their employee value proposition and make sure their mission and values are clear and consistently communicated across the organization.”

Based on this year’s survey, 57% maintain that the “feeling of accomplishment” is what most greatly affected their satisfaction at their current job. Gordon says that employers can appeal to this group—that tends be a little younger—by speaking to their company’s greater contributions, such as how they deliver social impact in their community. In fact, 82% of respondents say that they’re seeing or expect to see younger managers enter the logistics management workforce over the coming year.

“With this in mind, employers should consider investing in ‘upskilling’ programs in order to attract high-potential talent and train them on the job,” observes Gordon. “It’s clear that this year’s respondents feel that boosting their knowledge of technology and related skills will help them attain a higher salary. As continuous learning will be crucial to managers at all tenures, organizations can retain workforce talent and meet their future needs by equipping them with these skills.”

Career advancement

As might be expected for a career field that has a history of respect for experience and hands-on expertise, remarkably few survey respondents have college degrees.

Only about half have a bachelor’s degree or graduate degree, while only about a third of respondents have completed any formal education in logistics. According to Gravier, this is the pioneering generation of logistics leaders that came before most degree programs existed. “And no doubt this generation will replace itself with the up-and-coming generation of college graduates who have discovered the challenges and promise of a career in logistics management,” he says.

The factors most important to advancing their careers reflect the low emphasis on education, with 49% citing their “personal and social network” compared to 28% citing “taking classes” or “getting a degree.” This doesn’t mean that education doesn’t matter, as those with MBAs are the highest paid, but rather reflects the importance of personal relationships and interpersonal collaboration in logistics management.

This year, 75% of respondents say they’ve completed job-related training, and another 54% got education through industry conferences, seminars and workshops. Our analysts expect this trend to continue, as more companies are developing training and even in-house universities. Workforce development has become a key competitive advantage, and technology is only as useful as the hands that are putting it to use.

None of the preceding indicates that logistics managers fail to appreciate training and education. Indeed, 42% plan to take a continuing education program or class, despite the fact that 36% think it won’t lead to a better salary. They are clearly professionals committed to learning new skills and refining existing skills for their field.

As salaries go up, naturally the more strategic the skills become. Everyone making more than $50,000 cited the need for financial understanding and analysis, as logistics managers justify their initiatives based on the numbers.

Social networking

In light of the emphasis on personal and social networking, it’s interesting that electronic social networks dominate the sources most helpful for learning more about opportunities for better paying jobs—63% compared to only 48% for word of mouth.

And as job searches continue to shift to online, one might expect other aspects of job seeking to also move in order to make the whole process more efficient. For this reason, industry experts expect more certifications and credentials that are verified via electronic social networks to become more important in the future.

However, it’s important to note that not everyone is looking, says Farrah Salim, senior principal analyst at Gartner. “Approximately 72% of respondents have had three or less employers throughout their careers,” she says. “This indicates to me that organizations are making headway in retaining logistics management talent. Companies have numerous strategies, but to see this type of response indicates that those efforts are quite effective.”

On a final note, analysts agree it’s encouraging that 75% of survey respondents would recommend the logistics management field to their son, daughter or to a friend. There can be no stronger endorsement of this vibrant, thriving career field.