Tag Archives: pay rise

Five Surprises From ISM’s 2017 Salary Survey

A double-digit increase in salaries over four years, a continuing gender pay gap and similarity in salaries across generations are just some of the insights to be found in ISM’s foremost annual research initiative, the Salary Survey.

To create the ISM Annual Salary Survey report, for the past 12 years Institute for Supply Management has asked its members thoughtful questions regarding their salaries, benefits, current employment and what they’re looking for in future employers. This report’s purpose is simple: to empower the professionals we serve, through the provision of insightful, actionable information. We believe this information is so important for individual professionals (and therefore the profession) that we take the time to carefully compile thousands of responses from around the United States. The information gathered is then diligently reported back, every May, in an article in Inside Supply Management and in a detailed report available on ISM’s website.

  1. Strong momentum for salaries

This year, the Salary Survey found that in 2016, salaries continued to grow strongly compared to the previous year. This may be due in part to a strong job market, continuing the forward momentum from 2015 into 2016 with the average compensation for responding professionals being $115,440, an increase of 5% compared to 2015 ($109,961). In 2015, there was a 7.9% increase. In the longer term, salaries for procurement and supply management practitioners increased 14% from 2013 to 2016, as released in the 2014 to 2017 ISM® Salary Survey reports.

  1. Widening gender gap

More saliently, the average salary reported by procurement/supply managers was $109,401 in 2016 — and when broken down by gender, male managers reported earning an average salary of $114,207 while female managers reported an average salary of $97,948. While overall salaries have increased over the years, in 2016 men earned an average of 31% more than women, a substantial increase from the 24% reported in 2015.

  1. Professional certifications pay off

The survey further found that those who invested in professional certifications made more in 2016 than practitioners who did not. Respondents who have a professional certification reported that their average salary was $121,523, whereas those who indicated they did not reported an average salary of $108,141.

  1. Generational differences and similarities

Professionals can also start to see year-over-year trends in the detailed report and use information from the inaugural Generational Report, which was released this month. The Generational Report looks at information collected from Salary Survey reports over the years, and follows baby boomers, Generation Xers, and millennials as they move through the profession, reporting salary and other changes. For example, while millennials are a distant third on the generational salary scale (an average of $93,555), Generation Xers aren’t far behind baby boomers ($121,512 and $122,880, respectively).

  1. Considering changing careers?

The Salary Survey report has a specific section dedicated to individuals who are thinking of changing careers or are considering getting a professional certification. In 2016, nearly half of respondents indicated that they transferred into procurement/supply management from another career or vocation, and reported that the change resulted in an average salary of $118,140, 2.3% more than the overall average reported for 2016. Director, manager and experienced practitioner respondents from another field earned 4.7% more, 6.6% more and 7.5% more, respectively, compared to peers who have always worked in supply management.

In just this article’s small recap of Salary Survey findings, practitioners can easily start to identify where they fall among their peers. Information is collected on salary not only by position, but years of experience, education, geographic region, industry and many other categories.

Information like this gives power and perspective to the professionals consuming it, and helps them map out their future. Confidence and knowledge work symbiotically, and in this case, it’s easy to have confidence when possessing facts to back your decisions — whether changing positions and/or careers, negotiating for increased benefits or motivating a professional to pursue a certification. The information ISM provides helps empower procurement and supply management professionals. It’s what we do best.

The ISM’s Twelfth Annual Salary Survey detailed report can be accessed here or you can access Inside Supply Management magazine here.

9 Tips For Negotiating A Pay Increase

The end of the financial year is approaching, which means many companies are preparing for performance reviews. Is this a good time to ask for a pay rise? 

If you’ve been thinking about asking management for a pay rise, you’re probably not alone. The end of the financial year provides the ideal forum to talk about your achievements and can also be an opportune time to raise the issue of a pay rise. However, your performance is only one of the considerations influencing a pay rise. The economy, your employer’s financial performance and what your department has contributed to the organisation’s bottom line will also all play a part in the decision-making.

According to a survey by Salary.com, more companies are planning for larger salary budgets in 2017 than smaller ones. In fact, more than twice as many survey respondents on average are planning to offer larger increases in 2017 than 2016. So you could be in with a shot.

However, bringing up the topic isn’t something most people are comfortable with. To help you prepare, consider these things.

  1. Verbalise your worth

Some people assume their manager is already aware of their achievements, so they shouldn’t really need to ask for a pay rise. But this isn’t necessarily the case.

Your boss will be looking to award a pay increase to staff who can demonstrate that they have gone above and beyond. So, in your meeting, give clear examples to demonstrate how you’ve delivered beyond what is expected of you. Structure this just like a CV and focus on actual outputs and achievements, rather than general statements about how hard you work.

This could include times when you’ve taken initiative or financially or tangibly contributed to the business. Be sure to also give details about any additional tasks or responsibilities you’ve taken on. Having a written pitch supporting your assertion for a pay rise could also help the negotiation.

  1. Demonstrate your value

Take the time to research what similar roles to yours pay in other companies, which can help you set realistic expectations of yourself and your employer. Take some time to look through online jobs platforms, the newspaper and perhaps even recruitment companies in your field might have some related pay information they could share.

Generally, if you’re asking for a higher salary, you’re not in a position of power. In face-to-face negotiations, research finds that the more powerful person will usually win out. So, if you’re negotiating with your boss, you might like to at least start the negotiations over email or phone before sitting down and discussing it together. 

  1. Don’t give an ultimatum

You might have kicked some goals for your company and feel confident about your place in the food chain, but giving them an ultimatum might get you want in the short term, but it could also damage your relationship or career in the long term. A good negotiation tool can be to find out your replacement cost to the company, particularly if you’re working on projects with tangible deliverables, and mention this during the meeting.

  1. Watch your body language

Pay attention to what your body language says during the meeting. Stay relaxed, speak slowly and have open body language during the meeting (no crossed arms). Avoid getting defensive and be confident and convincing by coming to the meeting prepared.

  1. Be a learner

Demonstrating your ability to learn will demonstrate dedication. Whether you attend courses to improve your skills a few times a year or develop a lifelong habit of daily learning or micro-learning (such as reading about a new topic related to your job description on the commute to work or in your lunch break), this is something that management will look upon favourably.

  1. Don’t name your price

Don’t be the first person to say how much you’re expecting in a pay rise. For all you know, your boss could be thinking of a figure far higher than you’re predicting, so let them speak first. If your efforts to ask them to name a number isn’t working, give a narrow range that you’d be happy with. 

  1. Be realistic about timeframes

Don’t raise the possibility of a pay rise and expect it to be introduced the following week. While your company should have money in the budget to financially reward key staff, it’s rare that a pay rise will be approved and implemented immediately.

  1. Make sure you listen

Choosing the right phrases and making sure you say enough but not too much is paramount. Making sure you’re not suggesting that you’re underpaid and that there’s no aggression in your meeting is vital. Once you’ve presented your thoughts, make sure you let your manager respond, and listen with an open mind. If your manager decides not to increase your salary, ask for feedback and for ways you can improve your performance over the next year. 

  1. Discuss more than just pay 

If you’ve been turned for financial remuneration for your hard work, consider alternatives to an increase, such as asking for more workplace flexibility or additional training. Have this idea ready so that if your initial request is rejected, you can ask for an alternative.