Salary Survey: Weathering the economic storm
The results are in: Materials handling professionals are satisfied and salaries are stable, but budgets are tight in this challenging economy.
By Lorie King Rogers, Associate Editor -- Modern Materials Handling, 6/1/2009

Few of us want to think of ourselves as average. But when it comes to salaries in the materials handling field, the average annual salary (plus bonus) of $78,500 isn't too shabby, especially when you consider the times.
That's the result of Modern's second reader salary survey designed to help us understand not only the overall compensation of our readers but also their job satisfaction.
Last year's results clearly showed that a majority of respondents (54%) were very satisfied with their career choice and even more (87%) liked their jobs. The icing on the cake: People were being paid well to do jobs that they enjoyed.

Surprisingly, this year looks even better: 60% of the professionals in the materials handling industry are very satisfied with their chosen field and 90% say they like their current jobs. And according to the results, the median salary for materials handling professionals in 2009 is $75,500, an increase of 3% over 2008. (The median is the midpoint used when extreme high and low numbers skew the average.)
Factor in the median $3,000 worth of bonuses and commissions that most readers say they still expect to earn this year (61% expect to receive a bonus; the average is $14,000), and the total median income for people in this field climbs to $78,500.
How do materials handling professionals' salaries compare in similar industries?
- The December 2008 issue of Purchasing reported that even in a challenging economy, the average pay raise in 2008 for purchasing professionals was 4%, bringing the average annual compensation—salary plus bonus—to $88,206.
- The March 2009 issue of Logistics Management revealed that the median salary for logistics professionals is up for the first time in four years, coming in at $85,000.
- And, Design News figures the median salary for a design engineer in 2009 is $84,417, which represents a 3% increase over 2008.

Happily, 87% of Modern's readers are satisfied in the materials handling field and would recommend it to others. Key components of readers' level of career satisfaction include salary and benefits, but relationships with colleagues and the ability to influence decisions that impact their department also contribute. Another important common denominator for job satisfaction is the opportunity to tackle new challenges and find solutions and improvements to current methodology for their company and their clients.
Kim Messer, vice president of distribution for RepairClinic.com, a Detroit-based Web site business for home appliance repair do-it-yourselfers, is very happy where she is. Her work experiences encompass a number of factors that build a satisfying situation—professional challenges, support from management, and the flexibility and autonomy to implement improved processes. She explains, "I came on board 10 years ago when we were a start-up. We were faced with challenges from the beginning and now that approach is simply part of our culture. Working with people on day-to-day production work, plus meeting demands of increasing sales and product lines has been very satisfying. I'm able to come up with solutions that require capital expense, but produce required savings to support the expense."
"We have a very caring environment that starts from the top with our CEO, Larry Beach," Messer adds. "Decisions aren't always based on the bottom line, but also on how they will affect our people and our customers."
That sounds like nice work if you can get it.

What about the economy? We couldn't write this article without talking about it and its influence on wages and worry. Just about everyone, everywhere has been affected in some way by Wall Street's blues. Unfortunately, the materials handling industry is no exception. The fallout of the financial fiasco for some companies today is the challenge of trying to achieve business goals with fewer resources—budget and staff.
The seeds of discontentment in 2008 are the same in 2009, with most complaints focused on company politics, management style and levels of pay. This year, some disappointing levels of pay are exacerbated by cuts, wage freezes and shrinking bonuses.
Overall, 39% of respondents reported an increase in salary over 2008, 51% say their pay stayed the same, and 10% say their base salary decreased. The median salary decrease among those reporting a downward turn is 10%.
Bonuses based on lower operating costs, increased sales and better inventory management have also taken a hit. Those readers experiencing reductions in bonuses and commissions report the median decrease to be 30% this year.

Jeff Heath has been in materials handling for 20 years and has been a distribution center senior manager for Obagi Medical (headquartered in Long Beach, Calif.) for the past three. Despite the fact that he and his staff haven't received pay increases this year, he's still very satisfied with his job and what's happening at his company. "True, we haven't taken pay increases, but our people are OK with it because we also haven't had to have cuts or layoffs," Heath says. "We understand this is a short-term economic environment, so we're using this slowdown as an opportunity to retrain our people and research processes improvements—all things that we don't have the time to do when things are very busy."
He adds, "It's not always about money. This is a challenging profession and the field continues to evolve with technology and process improvements. There are always continuous learning opportunities."
Others haven't been so lucky: 13% of respondents have experienced layoffs. During the last 12 months, 65% of the companies represented by respondents have experienced layoffs and another 65% have a hiring freeze in place.
That could explain why many respondents say their jobs are stressful. Compared to two years ago, 53% say the stress level is the same or lower, but 47% say it's higher. One plant supervisor at a Michigan-based forklift company is feeling the pressure of pay cuts coupled with loss of personnel. He feels the expectations from upper level managers and customers to handle more work with fewer people have become unreasonable.

Most materials handling professionals clearly think they're worth what they're earning and are reluctant to take a cut in pay, even if they were to lose a job. TopGrading Solutions (772-871-1100, www.topgradingsolutions.com), an executive search firm, recently surveyed candidates from the supply chain planning and purchasing sector to determine how long they would wait before taking a new job at a lower salary, if they lost their job today. Results indicate that despite the unstable economy, people are still willing to wait for better or equal compensation.
Who is willing to wait?
- 29.7% claimed they would wait 120 days before considering a cut in their annual salary,
- 20.3% said they would wait 60 days,
- 16.9% would wait 90 days,
- 12.8% would consider it after the first 30 days, but
- 20.3% said they would not take a pay cut.
Those willing to wait, of course, are seasoned professionals. The landscape for the newly graduated is a little tougher. "New graduates are coming into the workforce at a time when 37% of U.S. companies have frozen wages and 10% have halted promotions," says Tom McMullen, who designs compensation programs for corporate clients at the consulting firm Hay Group (312-228-1800, www.haygroup.com).
Not everyone is having difficulty, however. Graduates in information management and supply chain strategy are in demand because they cut costs and improve efficiencies, says Jamie Belinne, assistant dean for the University of Houston's Bauer College of Business (713-743-4600, www.bauer.uh.edu).

The tough economy may explain why only a small percentage of respondents are pursuing other interests and many more are trying to keep dry and weather the storm where they are. When asked if they are actively seeking other jobs, 32% of Modern's readers say they're happy were they are, 47% are always open to new possibilities, 14% are passively looking, but only 7% are actively looking.
Last year was a good year to make a move. This year, maybe not.
Mike Flamer, vice president of The Dorfman Group (480-860-8820, www.thedorfmangroup.com), told Modern last year that taking a risk on a new employer usually pays off financially. The idea was that by changing jobs, a person could increase salary faster than those who stayed put and accepted an average annual increase. This year, however, Flamer says, "My philosophy hasn't changed, but the reality of the environment has changed. Today, people are nervous about making a move for fear that the next company might not be financially solvent."
For those who are on the market not because they want to be, Flamer recommends that they "be prepared to look at all options. A lot of companies are still doing well, so get your name out there and create a strong social network."
Larry Johnson, a partner with The Search Group (847-854-6322, www.search-one.com), a recruiting company focused on the materials handling industry, also offers some advice for professionals looking for employment and for those just looking to stay on top of their game. "Stay flexible. If you're looking for a job, honestly evaluate your skill set and see if you can align yourself in other areas that might be able to utilize your talent." He adds, if you can sell lift trucks, maybe you can sell software or conveyors.
Flamer's advice to working professionals is to remain vigilant for the strength of the company you're working at. "Don't be lulled into a false sense of security, and do whatever you can to keep your company successful."

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