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SPECIAL FOCUS


the savings generated by supply chain in potentially one well-negotiated or imple- mented contract.”


Vance Moore, President, Business Inte- gration, Mercy, furrows his brow, too. “I was disappointed to see total compen-


sation being reasonably at for the last four or five years, even declining a little in the last three years,” Moore told HPN. “This could be due to younger leaders replacing more seasoned leaders that had a high base. That would correlate to the first finding of most leaders seeing an increase yet the total compensation falling slightly. Lower-cost leaders may be replacing higher-comped outbound leaders.”


Joe Colonna, Vice President, Supply Chain, Piedmont Healthcare, the 2018 Sup- ply Chain Department of the Year, points to the titles themselves as a possible culprit. “The challenge in aligning these sala- ries may be titles,” Colonna noted. “Our industry is far from standardized when it comes to titles.”


Donatelli contends that these survey data should serve as a clarion call to motivate the industry to action.


“The results of this survey validate the need for supply chain executives to pro- mote their role, their contribution and their value within their own organizations,” Donatelli told HPN. “Unfortunately, as in most professions we must make career changes to advance our worth as well as our salaries. The tendency in supply chain is internal promotions and little movement from locations. It is not uncommon to learn that a supply chain director started on the receiving dock, became a buyer and has been in the institution for over 25 years. This results in diminished value, both of the role and of the marginal in- crease in compensation. This pattern is also having a negative impact on new young professionals. They are seeing that the path to advancement is slow and tedious and that the salaries are not sufficient in relation to the overall impact on the work being performed.” Donatelli, who also serves as Chair-Elect of the Association for Healthcare Resource and Materials Management (AHRMM), reinforces investment in supply chain personnel on their contributions alone before the market forces the issue based on next-generation demands.


“An effective supply chain professional saves more than their salary in a single negotiation, yet seldom demonstrates this value to be recognized and accord- ingly compensated,” she said. “It would be suspected that when 50 percent of senior supply chain management [profes- sionals retire within the net five years,


organizations will be forced to increase the salary base to attract talent to fill these roles. Individuals waiting for their managers to retire to be promoted need to be prepared to demand fair adjustments and compensation in salaries based upon contribution margins they provide to their organizations.”


Moore questions the longevity factor. “I was surprised to some degree to see that time in supply chain meant very little,” he said. “Unfortunately, this could indicate a lack of respect for the expertise that is gained over time. Another conclusion could be that new leaders demand a higher premium, potentially due to education or just market [forces]. Unfortunately, it is very easy for a good supply chain leader to be quietly doing their job and only be provided small increases every [year] without advanced progression, based on contribution. Tenured supply chain lead- ers need to tell their story better and if not rewarded, consider making a move to a new environment that will appreciate their contributions.” Colonna concurs. “New team members are coming to organizations with a differ- ent set of expectations and more folks are coming from outside healthcare, which, in some cases pays better,” he added. “We are going to have to pay more for new, young talent. On the other hand, we should be able to expect more from that talent as well – more creative and strategic thinking.”


Moore hones in on the “salary by time at facility” statistic and posits a curious potential tren about tenure. “New leaders are making more than tenured leaders in the same facility,” he said. “This may indicate that leaders are being overlooked until they are gone, and then the facility has to pay market rate, which is higher than respecting the tenured leaders. There is not a huge spread in this category, but it clearly indicates that tenure is not respected.”


Regional revolving


Dividing the compensation composite index by region returns the overview to familiar refrains where the opposite coasts represent the most lucrative areas for earn- ings, according to survey results. From the overall lower CCI this year, all


five regional divisions posted declines from 2018 results. As part of its survey collection and analysis, HPN divides respondents into five geographic regions Northeast, outheast, entral, ountain and acific. The est oast or acific region returned atop its perch as the most lucrative area for compensation where it settled for a decade, save for last year’s slip to the No.


2 spot. Meanwhile, the Southeast bumped up to the second slot after spending half the previous decade as No. 3. What’s noteworthy is that the composite for the Northeast region continued for the second consecutive year in the fifth and final spot, and that area pulled the largest number of survey respondents.


What’s noteworthy is how some of the key titles break down, which also may be affected by location, size and type of facility.


Directors and Managers of Materials Management/Supply Chain based in the acific region reported earning the highest amount at $116,591, followed by those in the Central region at $97,115. Directors and Managers in the Southeast region reported earning the least of the five regions at $83,625, according to the survey. Purchasing Directors and Managers in


the Central region reported earning the most at $85.500, followed closely by those in the Northeast at $85,455. Those in the Mountain region reported earning the least at $73,500, the survey showed. Senior Buyers, Buyers and Purchasing gents in the acific region led reported salaries at $61,500, followed by those in the Northeast at $57,222. Those in the Mountain region reported earning the lowest at $39,167.


Lacking genderosity


Consistently, across the board, whether by title, region, education, facility type or duration one common theme continues to linger. The compensation span between the genders runs deep and wide.


In fact, according to composite index breakdowns by region, compensation for men squarely resides within the six-digit range, while compensation for women barely exceeds the $75,000 on average. Re- gional composite compensation differences between the genders spans nearly $31,000 to $52,000 with the overall composite dif- ference amounting to roughly $39,000. That sobering statistic doesn’t sit too well with Donatelli. The significant discrepancy between women’s and men’s salaries in the same role is deplorable,” Donatelli detonat- ed. “In 2019 this is inexcusable! “This information should serve as mo- tivation for all of us,” she continued. “We have a responsibility to promote our pro- fession and demonstrate our contributions. The industry needs to be more proactive in sharing the significant impact supply chain makes on our organizations operat- ing margins by reporting achievements. To attract the next generation of supply chain professionals we have a responsibil-


Page 14 hpnonline.com • HEALTHCARE PURCHASING NEWS • June 2019 13


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