Salaries jump 4.0 percent or higher for 16 surveyed logistics and materials management personnel positions, reports Watson Wyatt Data Services
Banking and Finance employees receive highest salary increases amongst all industry sectors surveyed. Utilities and Energy group tops all other industry sectors in prevalence of bonus awards for their employees.
ROCHELLE PARK, N.J., (November 13, 2007) – Watson Wyatt Data Services, a wholly-owned subsidiary of Watson Wyatt Worldwide, today announced the publication of its 2007/2008 Survey Report on Logistics & Materials Management Personnel Compensation, now in its eighth edition.
The report covers a full range of logistics and materials management personnel, including supply chain management, production/inventory management, inventory planning and control, fulfillment, distribution, operations, purchasing, contract administration and quality.Overall, salaries and total compensation increased 3.2 percent and 3.4 percent, respectively, within organizations responding to both this and last year’s survey. This compares to the three percent and 3.2 percent increase in salaries and total compensation experienced in 2006 vs. 2005.
A total of 23 individual positions (within the overall sample) received salary and/or total compensation increases that exceeded the overall salary/total cash compensation increase by 25 percent or more. A total of 16 positions received salary increases of four percent or more, as listed below:
• Top Total Quality Management Executive
• Contract Administrator
• Distribution Manager
• Operations Planning Manager
• Top Materials Management Executive
• Top Purchasing Executive
• Commodities Manager
• Purchasing Supervisor
• Materials Control Supervisor
• Production Planning and Control Supervisor
• Top Traffic/Transportation Executive
• Fleet Manager
• Traffic Supervisor
• Logistics Clerk
• Logistics Coordinator
• Import/Export Manager
Moderate industry differences existed regarding salary increases with the Utilities and Energy Sector and Insurance Sector (3.7 percent and 3.4 percent, respectively) showing the highest salary increases among the eight industry sectors. The largest total pay increase was experienced in the Banking and Finance Sector (six percent). Salary increases in all other industry sectors were 2.8 percent or greater. The North Central Region reflected the highest salary increase (3.3 percent) among the five regions. The Northeast Region experienced the lowest salary increases at three percent. Salary increases experienced this year match or exceed last year’s increases experienced in four of the five regions surveyed: Southeast Region (3.1 percent vs. 2.7 percent), North Central Region (3.3 percent vs. three percent), South Central Region (3.2 percent vs. 2.7 percent) and West Coast Region (3.1 percent vs. 2.8 percent).
Bonus Trends
For the entire survey sample combined, 38 percent of employees received some form of bonus/incentive payment in 2006, ranging from 17.4 percent with annual salaries less than $30,000 to 82.9 percent of those with salaries of $200,000 or more. The percentage of employees receiving awards from a variable pay plan range from 4.5 percent for incumbents with salaries less than $30,000 to 44.7 percent of base for incumbents with salaries of $2000,000 or more. Overall, awards averaged 8.8 percent of base salary. Bonus prevalence showed only a slight variation by region, with 39.8 percent of employees in the West Coast Region receiving bonuses at the high end (average bonus was 8.5 percent of salary), and 35.3 percent of Southeast Region workers receiving bonuses at the low end (bonuses averaging 8.5 percent of salary). Average bonus payments range from an average of 8.4 percent of salary in the South Central Region to 9.3 percent for Northeast Region employees.
Substantial differences in bonus prevalence exists among industry sectors, as just 10.5 percent of Health Care Sector employees received bonuses while 68 percent of employees in the Utilities and Energy Sector received bonuses in the 12-month period that ended May 1, 2007. Average bonus payments range from an average of 7.2 percent of salary for employees in the Services Sector to 10.7 percent for Non-Durable Goods Manufacturing Sector employees. The largest bonuses were paid to employees in the Durable Goods Sector with salaries of $200,000 or more. These employees received bonuses that averaged almost half (49.8 percent) of their salary.
This report is based on responses from 1,248 organizations encompassing 5,874 locations reporting data on 239,118 incumbents. A total of 185 geographic areas, including 125 metropolitan areas, are reported on in this year’s edition.
The 2007/2008 Survey Report on Logistics and Materials Management Personnel Compensation is available online, on CD or in a printed format.
About Watson Wyatt Data Services
Watson Wyatt Data Services (WWDS), a wholly owned subsidiary of Watson Wyatt Worldwide, is a leading provider of compensation, benefits, and employment practices information to the global employer community. From offices around the world, we solicit, analyze, and publish an extensive library of printed, interactive and online survey reports. Our compensation databases are recognized worldwide as the most reliable source of current data for compensation planning.
Global scope, local knowledge …
Covering more than 95 countries across six continents, our data centers in the U.S., Canada, Europe, Asia, and Latin America annually compile reports on the remuneration, benefits, and employment practices of local and multinational companies. Our “in-country” experts apply their local knowledge of the varied employment markets, practices, and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire institutions. Our international databases contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world’s largest conglomerates.
In addition to compensation surveys, WWDS also publishes references that help HR practitioners attract, retain, and reward exceptional employees. These guides cover a wide variety of subject areas, including variable pay, performance management, and personnel policies on a local, regional, and global basis. For more information, visit our Web site at WWDS.com.
For more information, contact:
MaryBeth Iannaccone
Watson Wyatt Data Services
Tel: (201) 843-1177, extension 3480
E-mail: Marybeth.iannaccone@watsonwyatt.com