came from another profession
report salaries 2. 8 percent higher
on average. Director, manager and
experienced practitioner respondents
from another field earned 4. 7 percent
more, 6. 6 percent more and 7. 5
percent more, respectively, compared
to peers who have always worked
in supply management. On the
other hand, emerging professionals
(those with eight or fewer years of
experience) from another field earned
8. 7 percent less on average compared
to career supply management
Supply management professionals
who were previously scientists/
engineers or in the military reported
the highest average base salaries.
Former military professionals
earned $155,146, and former
scientists or engineers $148,788.
The lowest average salary for supply
management converts was $80,913
for those previously artists/artisans.
A PROMISING FUTURE
This year, we report a strong increase
in overall average salary, year-over-
year ( 5 percent). The 2017 Salary
Survey suggests that organizations are
focusing on employee recruitment
and retention while delicately
balancing administrative, direct and
indirect expenses. With the end of
the “jobless recovery” in sight —
harkened by unemployment rates
similar to pre-recession figures —
organizations are enticing younger
generations to join the profession.
External pressures continue to impact
the value organizations place on
effective supply management and
will hopefully continue to raise the
importance of supply managers in
the future — translating into higher
salaries and more employment
This article contains highlights of
ISM’s comprehensive Twelfth Annual
Salary Survey. A more detailed report
is available on the ISM website at
Ashley A. Peightal is a research analyst at
Institute for Supply Management®.
For the 12th straight year, Institute for Supply Management® (ISM®) collected salary and job information from supply management
professionals. The survey was administered in late
February through mid-March.
A random sample of customers (including both
members and nonmembers) was pulled from ISM’s
database. An email invitation requesting participation
in the survey was then sent to these customers. As
many as six reminders were sent to individuals this
survey cycle. To encourage participation, individuals
were offered an opportunity to win a US$50 gift card
( 20 available).
Respondents were asked to report compensation
information for the 2016 calendar year. Compensation
included (reported separately) wages, bonuses and
stock options received before taxes and deductions.
In all, 3,808 usable responses were received, for
a response rate of 4. 9 percent. For the sixth time,
respondents were asked if they were employed for the
full year. A total of 142, or 3. 6 percent, of respondents
indicated they were not (compared to 4. 2 percent in
2015). The posted results exclude those not employed
for the full 2016 calendar year.
Graphical and tabular reports on the survey results
are available at ISM’s website. A brief summary
of the results is available to the general public,
while a detailed report is available at no charge
to ISM members. Nonmembers may purchase
the detailed report for $299. The reports can
be accessed at the ISM Career Center at www.
How the Survey Was Conducted
**NOTE: ISM asked participants about their base salary, and then, separately, how much their salary changed between
2015 and 2016. Asking two questions (rather than computing one from the other) allows ISM to analyze both separately.
However, this can yield apparently inconsistent results when the average of the base salary variable changes at a rate
different from the average change in salary as reported by respondents, as was the case this year and last year.