According to a new survey, salaries and influence within organizations are rising. So is the difficulty of finding the right candidates to hire.
The latest issue of Supply Professional Magazine saw the release of its annual Survey of the Canadian Supply Chain Professional. Conducted by the trade magazine alongside industry association Supply Chain Canada, the survey gives the salary outlook for the field (always a hot topic), and also shines a light on job satisfaction, emerging trends, as well as where Supply Chain sits in organizations – and the influence it wields.
As a recruitment company specialized within Supply Chain and Procurement, we at Argentus are always keen to see the results of the most important Supply Chain survey in Canada. This is the first year that Supply Professional has partnered with Supply Chain Canada (formerly SCMA), which gives them some extended scope and makes us especially interested in the results.
As for those results: they paint an optimistic picture of the field in 2019.
Here are a few of the key takeaways:
Salaries and influence are rising considerably:
Average Supply Chain salaries increased from $89,334 to $97,183, which represents a boost of almost 9%. It’s a strong level of salary growth that shows what we’ve been seeing and hearing on the ground: the increased demand for Supply Chain talent in the field, and lack of supply. A salary increase was reported in every province in Canada.
76% of respondents agreed that Supply Chain has increased influence with senior management within their organization. To our eye, this shows that efforts within the field to showcase and advocate for its strategic value are paying off.
The gender pay gap persists, but it’s narrowing:
Sadly, the gender pay gap in Supply Chain has persisted. Supply Chain used to be a traditionally male-dominated industry, but associations and organizations have made new efforts to champion women, especially when it comes to leadership. In May, Supply Chain Canada unveiled its list of the Top 100 Women in Canadian Supply Chain, seeking to highlight all the women driving strategic impact at their organizations. The good news is that this and other efforts seem to be paying off. In 2018, men made about $12,000 more per year than their female counterparts. In 2019, this gap declined to $9,100. There’s progress, but still more work to be done.
Interesting findings for contingent staffing:
At Argentus, we’ve been writing about the rise of contingent staffing in Supply Chain over the past number of years. More companies are using a consultant-based approach to business transformation in Procurement, Logistics and Distribution, as well as overall Supply Chain strategy. Demand for these strategic consultants is rising, and more senior people are getting into the game – these trends were born out with some interesting salary findings. On average Supply Chain consultants earned $104,664 on average in 2019, which represents a staggering 22% increase over the $80,697 they reported taking home on average in 2018.
It’s a candidates’ market, and companies are finding it harder than ever to source the best talent:
According to the data, small and mid-sized organizations tend to have slightly lower salaries, on average, than larger organizations, but they’re catching up rapidly. It’s another indication of the immense and rising demand for strategic Supply Chain professionals with the right mix of digital, analytical and soft skills needed to thrive in 2019. The survey references estimates that there are six open Supply Chain positions to fill for each graduate with Supply Chain skills – which represents the tremendous challenge companies are having attracting the right talent. As Supply Professional puts it, the market is more candidate-driven than it has been at any point since the financial crisis in 2008.
In short, the survey’s findings back up what we’re seeing on the ground in our recruitment practice: The greatest areas of growth are within indirect Procurement in the services sector, the manufacturing industry, as well as public sector. Salaries are rising, especially for strategic consultants, to match the increased skills profile and business influence of professionals in the field. And maybe most importantly for companies looking to augment their talent strategies, the right candidates are in higher demand than any time since 2008.
We recommend everyone go check out the survey itself. It provides a great picture of the world of Supply Chain from a talent perspective. Supply Professional’s feature on the survey is recommended reading as well.