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SUPPLY CHAIN SALARY SURVEY Surfing Supply Chain’s salary wave


Pandemic, product shortages not yet point break for upward momentum by Rick Dana Barlow


f there’s one bit of positive news Health- care Purchasing News readers can take to the bank while battling a pandemic and navigating through product shortages and sourcing options it’s this: Compensation levels – at least for now – by and large, offer an affirmation of value. Here are some welcoming takeaways


I


from HPN’s 2020 Supply Chain Compensa- tion urvey.


The overall compensation composite index rebounded this year after slipping in 2019, erasing last year’s losses and exceed- ing even the previous years gains. (CCI is derived by the average aggregate salary of all survey respondents.) ut against the backdrop of the COVID-19 pandemic in 2020 will this turn out to be a ricochet next year? Well see.


This year’s survey achieves a bit of his-


tory as the average salary for a Director and Manager of Materials Management/ Supply Chain punched through the six- figure ceiling for the first time in all the decades HPN has conducted this survey. Department leaders reported an average annual salary of 11,1, a whopping . percent gain over 19s average of 9,9. Not to be outdone, the higher-level Sup-


ply Chain leaders also recorded impressive gains. ExecutiveeniorCorporate Vice Presidents reported an average $206,000 this year, compared to 13,1 in 19. At the top of the leadership chain, the Chief Purchasingupply Chain Officers recorded 39, on average in , up from 1, last year, according to the survey. wo other titles  Value Analysis Di- rectoranagerCoordinator and O.R. aterials anagerusiness anager – reported respectable gains in the four- digit realm. he formers compensation


increased to 9, in  from ,1 last year the latter rose to ,93 this year from ,1 in 19. Another noteworthy result with these two titles? Females out- paced males in average compensation, the survey showed.


Of the eight titles that HPN typically sur-


veys for compensation data, three reported decreases. Purchasing Directorsanagers saw


their compensation sink to 1, this year from , in 19. Compensation for enior uyersuyersPurchasing Agents slipped to , in  from , last year, according to the survey. eanwhile, compensation for those with Iup- ply Chain Informatics anager titles slid to , from ,.


As an ongoing customary cautionary ca-


veat, HPN advises readers that survey data and trending perspectives hinges on a vari- ety of demographic elements that include the number and mix of respondents by job title, facility type and location and gender. For example, more senior-level executives who lead centralized integrated delivery network (ID) operations generally will elevate salary data, while more buyers at community hospitals may push the salary data lower. Still, HPN continues to monitor five key


trending areas that make this more than just a numbers game.


Let’s start with the most overt statistic.


Gender


Men still make more than women across the board. This has been consistent for decades even as the gap be- tween the two periodically narrowed then widened.


SALARY BY TITLE AND GENDER COO/Chief Purchasing Supply Chain Officer


Director/Manager, Materials/Supply Chain Management


Executive/Senior/Corporate VP, Materials/Supply Chain Management/Support Services


MMIS/Supply Chain Informatics Manager O.R. Materials Manager/Business Manager Purchasing Director/Manager


Senior Buyer/Buyer/Purchasing Agent Value Analysis Director/Manager/Coordinator 54 June 2020 • HEALTHCARE PURCHASING NEWS • hpnonline.com


Deborah Petretich


Templeton 2019


$187,500 $94,096 $153,421


$78,750 $67,167 $76,484 $54,868 $87,045


$239,500 $101,174 $206,000


$62,500 $70,938 $71,875 $52,500 $89,500


2020 2020-FEMALE 2020-MALE $112,500


$86,956 $138,333


n/a


$72,955 $61,731 $52,000 $97,083


Deborah Petretich empleton, R.Ph., Chief Administrative Officer, System upport ervices, eisinger ealth, finds this data point to be puzzling and disap- pointing.


“One thought is that maybe a larger majority of women come in as entry level versus males that may have an edge on experience  longevity in the field  when they advance, she observed. he dispar- ity is more evident at higher level positions. The concentration of males at higher level positions could be influencing the statistic. Interestingly, the trend is reversed in the value analysis positions. ecause of the clinical knowledge desired, many of these positions are filled by nurses whose obs in nursing probably commanded a higher salary before they moved in to the role, and because there are many more female nurses than male, the females in these positions are seemingly compensated better. Templeton’s organization earned HPN’s upply Chain Department of the ear Award in . Ed ardin, Vice President, upply Chain,


Froedtert Health, laments the indication of gender disparity in healthcare sup- ply chain compensation. In all the organiations


Ive worked in, it seems that gender neutrality when it comes to [compensation] decisions remains a priority, he noted. Id never want to work for an organia- tion and/or be a leader that allowed this sort of thing. Unfortunately, the data doesn’t prove this out as an industry-wide practice.


Ed Hardin


Hardin argues that education foreshad- ows change, leaning toward parity.


$271,250 $107,885 $212,500


$62,500 $71,250 $78,750 $54,643 $59,167


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