Salary Survey: Youth movement afoot

This marks the 32nd year that Logistics Management (LM) has published the results of our “Salary Survey,” a research project conducted by Peerless Research Group (PRG) that serves as the fuel to our best-read editorial feature (page 18) and the foundation of the most downloaded report that PRG produces over the course of our publishing year.

First and foremost, the editorial staff would like to thank the 824 LM readers—a new record—who took the time to complete the e-mail survey back in February. When you consider that 78% of this year’s respondents told us that the number of roles they fill has actually increased over the past 12 months, this record-breaking sample validates the importance they place on this annual report.

According to Patrick Burnson, our executive editor who put this year’s results into context, there are several noteworthy trends that emerge this year—all revolving around a much overdue “youth movement.” First, inside this huge sample, only 28% of respondents are 55+ years old compared to the 43% we gathered last year. We also see the under-45 group jump up to 31% from last year’s 20% as well as a small, but significant jump in the under-35 group.

“On top of that good news, we received a record number of verbatim responses, and most of those came from readers in their early 30s and late 20s—the crowd that’s most apt to put mobile computing and social networking tools to work,” says Burnson. Refreshing indeed, because this trend toward a younger workforce is one that we’ve been waiting to see unfold over the past 10 years. “It’s become clear that the steady rise of e-commerce and a variety of macroeconomic and social developments are changing the poplar perception of logistics and transportation management—and may even be bringing some glamour to it,” adds Burnson.

According to PRG research director Judd Aschenbrand, this rise of the millennial workforce can only mean a push toward the technology adoption that’s needed to keep up with the evolution of the digitized supply chain. “Smart phones, tablets and the use of Cloud-based software tools are second nature to this group—tools that just happen to be the foundation of the best e-commerce logistics and fulfillment operations,” he says.

But while this emerging group is well prepared to put more mobile computing power to work, this same set tells us that many of their logistics operations aren’t yet supplying the critical “tools” they expect—or need.

“The level of frustration in this regard is palpable,” says Aschenbrand. “So, while companies expect logistics managers to take on ever more responsibilities, it’s going to be up to this younger group to push for the technology that will make them faster and more efficient, and they will—and that’s a great thing.”

On top of this predicted wave of what Aschenbrand calls “technology upgrade pressure,” this younger group will also be pushing to see pay rise faster than we have over the past several years. “This year, overall compensation dropped off a bit, but new professionals entering the workforce are probably going to change that,” he says, adding that the drop off in earnings—especially in the 55-64 year-old range—signals the changing demographics, as baby boomers plan to retire and millennials move in to fill the gap. For sure, the sweet spot is in the silo comprising young managers who may expect to see earnings rise from $58,00 at age 35 to $87,800 by the time they reach age 44—if they choose to commit.

“What we want to see next is this younger set bucking the trend and staying put in a position to see real growth and development,” adds Aschenbrand. “And quite frankly, if they get the proper technology tools, treatment and pay they will be spreading the word to their peers, and that can only bode well for improved retention and recruitment.”