35th Annual Salary Survey: Overwhelmingly positive results

This month we roll out the findings of Logistics Management’s 35th Annual Salary Survey, a research project conducted by Peerless Research Group (PRG) that serves as the foundation of our best-read editorial feature of our publishing year. And it’s no surprise that the full study is also the most downloaded PRG report.

This marks the 10th year that executive editor Patrick Burnson has teamed up with PRG research director Judd Aschenbrand to put context around the findings. Aschenbrand, the best in the business at making sense of data, and Burnson again offer shippers the clearest, most comprehensive snapshot available of logistics and supply chain salaries and employee development needs—insight that comes straight from the mouths of professionals in the industry.

And of course we’d be remiss if we didn’t thank those 500 LM readers who took the time to complete the e-mail survey this January. Year after year we continue to hit this impressive response level, a fact that highlights the importance that shippers place on this report.

While Aschenbrand and Burnson always dig to find trends from the data, I like to start with the brass tacks here: Where are salaries heading?

Over the course of 2018 the average salary ticked up about 2.7% to $117,400, while the median salary was up 3.3% to $96,000. These are not monumental hikes, but it’s markedly better than what we saw in 2016 and 2017 when numbers across the board were stagnant.

More positive news: 62% of respondents report that their salary level increased over the course of 2018 by an average of about 7%—a jump that should make any industry jealous. And, it’s refreshing to see that salaries for women in logistics and supply chain positions are finally beginning to show impressive growth: This year the average salary for women was $102,535—a whopping 27% increase over last year’s number; though still below the average salary.

“That’s a significant jump,” says Aschenbrand, “and the good news is that we’re seeing more women in high-level positions and more women participating in our survey. This bodes well for the industry overall, so let’s hope this trend continues.”

Another optimistic result in this year’s report: “job satisfaction.” This year, the number of respondents who told us they’re “very satisfied” with their job jumped up to 56% from 47% last year, with 82% saying that they would recommend a logistics and supply chain position to friends and family.

“The satisfaction numbers are astounding,” says Burnson. “And as I interviewed respondents for this feature, the old fashioned virtue of ‘loyalty’ was a constant. While many expressed an interest in seeking better compensation in the future, they remain fiercely dedicated to their current organizations, and more importantly, to their colleagues.”

On the whole, this year’s findings are overwhelmingly positive. But, Aschenbrand notes a possible red flag about the pace of salary growth as it pertains to younger employees that the market needs to attract and retain.

“An annual raise of 2.7% works for more experienced managers because they tend to have a more complicated bonus agreement with their companies,” he says. “But to that younger employee, 35 years old or younger, a 7% bump is more acceptable. With average salaries in the market just keeping pace with inflation, let’s hope we see some acceleration so that we can keep this younger talent engaged and firmly in place for the long term.” •