16th annual Salary Survey: Materials handling professionals report satisfaction, stress

he outlook is looking rosy on the materials handling career front, where 67% of professionals saw their base salary increase this year and 75% expect to receive a bonus, commission or additional form of income in 2023. And while 90% of current materials handling professionals say they would recommend the career to others, the overall average turnover rate for the occupation crept up to 12% this year, compared to 9% in 2022.

These are a few of the key findings from Peerless Research Group’s (PRG) 16th Annual Salary Survey, which annually explores the compensation; job and career history; career satisfaction; education; and demographics of today’s materials handling professionals. Conducted in August 2023 and sent by e-mail to Modern Materials Handling subscribers, the survey attracted a solid cross section of supply chain professionals currently working in manufacturing (43%), retail (13%), wholesale trade (12%), third-party logistics (9%), and transportation/warehousing services (4%). Nineteen percent of this year’s survey respondents work in other, non-manufacturing sectors.

Most survey respondents (71%) are involved in transportation and logistics activities; 60% work with planning; 57% work in warehouse, distribution and order fulfillment; and 54% are involved with inventory control. More than half (53%) of the respondents manage supplier relationships, 52% are involved in sourcing and purchasing, and 46% work with technology solutions.

Who’s earning what?

This year, 19% of base salaries (before any deductions or additions) for materials handling professionals exceed $150,000, and 20% of survey respondents earn less than $50,000. Eleven percent of respondents say their base salary for 2023 falls between $125,000 and $149,999, and 10% are earning between $100,000 and $124,999. The remainder are earning anywhere from $50,000 to $99,999 per year.

In 2023, the average base salary for materials handling professionals dropped slightly to $102,787, compared to $103,422 in 2022 and $106,775 in 2021.

Compared to last year, 67% of respondents say their base salary has increased, while 28% says they’re earning the same amount of money. About 5% of readers say their base salaries declined in 2023. Of those professionals who are now earning more, 51% say the increase was less than 5%; 28% earn 5% to 9% more; and 21% say their base salary increased by more than 10%. In 2023, the average salary increase was 7.2%, compared to 8.1% in 2022.

This year, 75% of respondents expect to receive a bonus, commission or additional form of income. The size of these bonuses varies, but 22% are anticipating a $10,000 to $19,999 bonus, and 19% expect to get $5,000 to $9,999. Seventeen percent are banking on a bonus of $20,000 to $29,999; and 11% expect a bonus of over $50,000 this year. The average expected bonus for 2023 came in at $21,275, which is lower than 2022’s average $25,000 bonus.

Asked how their expected bonus or commission compares to last year, 24% say they are planning for an increase, 59% say it will remain the same, and 17% say it will decrease. Of those who expect an increase, the average increase is by 27%. Of those who expect a decrease, the average decrease is by 26% (down from 38% last year).

Professionals earn bonuses for different reasons, with 60% of professionals revealing their bonus depends on whether their companies achieve performance goals.

Forty-eight percent say the number is based on individual performance, and 30% say it’s based on increased sales. Twenty percent say their bonus depends on lower operational costs, and 15% say their bonuses are tied to inventory management improvements.

Careers materials handling

Nearly half (47%) of this year’s survey respondents have worked in materials handling for anywhere from 10 to 30 years. Twenty percent have been working in the field for 5 to 10 years, and 17% have been in the profession for more than three decades. About 17% of survey respondents have been in materials handling for less than five years. As a group, these readers have been in the field for 16.3 years on average.

As with past surveys, average salary does appear to correlate with time spent in a materials handling career. Individuals who have worked in the field for 30 years or more earn an average of $125,755, while those in the 20- to 30-year range earn $114,975 on average.

At the other end of the scale, individuals with 5 to 10 years under their belts earn an average of $82,190, and those who are in the early stages of their careers earn about $60,000 annually.

Most materials handling professionals have worked for 2.3 companies during their careers, with 17% working only for one company and 19% working for just one other organization (plus their current employer). About 10% of respondents have been employed by more than five different companies.

Job hopping appears to have direct, positive impacts on salary levels in materials handling, where respondents who have been employed by four different companies report the highest average salary of the group ($125,450). Those who have worked for more than five different companies report an average salary of $118,975, and those who have been employed at five companies earn an average of $114,875 annually. Those who have only worked for the same company earn the lowest average salary of $95,825.

Length of time at a specific employer also positively impacts salary levels. The survey found that those who have been with their present employer for 20 or more years earn the highest average salary of $117,980, followed by those who have been with their employer 10 to 20 years and who earn an average salary of $112,555. At the opposite end of the scale, materials handling professionals who have worked for their current company for less than three years reported an average salary of $103,785.

Most respondents (74%) handle supervisory responsibilities in their current roles, while 26% do not. Those with supervisor responsibilities earn $118,795 on average, while those without earn $88,210 on average. Over half (62%) of respondents say they have budgetary responsibilities, and 38% say they do not. The average salary for those with budgetary responsibilities is $117,550, while the average salary of those without is $98,710.

Managing employee turnover, layoffs

In terms of personnel changes over the last 12 months, 55% of respondents work for companies that have hired personnel (compared to 69% last year), and 32% say they experienced reduced overtime, and 21% experienced layoffs. In addition, 19% had to deal with hiring freezes and 8% saw reductions in benefits and/or healthcare.

High turnover continues to be an issue for warehouse and DC operators. Overall, the average turnover rate was 11.8% in 2023, compared to 9.1% in 2022. Forty percent of survey respondents experienced departmental turnover rates of less than 10% in the last 12 months while more than 30% of readers reported turnover rates ranging from 10% to 30%. Four percent of respondents say their turnover rate exceeded 40% over the last 12 months.

Layoffs have also been an issue for the 11% of respondents who say they have been personally affected by such actions in the past 12 months.

Tracking job satisfaction, stress points

Nearly all (90%) of survey respondents would recommend the career to others, which is consistent with past years. Seventy-one percent of professionals are either “extremely” or “very” satisfied with their careers and 25% are somewhat satisfied. Eighty-nine percent of readers say they like their current jobs, and 3% say they are dissatisfied with their career choices.

Asked whether they are in the market for a new job, 43% of professionals say they’re happy where they are currently, while 24% say they’re always open to other possibilities. Twenty-two percent say they are passively looking for another job, and 11% are actively looking for new career opportunities.

People who are happy in their current jobs report the highest average salary of $120,450, while those who are actively looking earn $115,225. Those who are always open report an average salary of $111,765, and those passively looking earn $107,475 on average.

According to the survey, 83% of materials handling professionals say their jobs are “extremely,” “very” or “somewhat” stressful. The 18% of readers who say their occupations are “not very” or “not at all” stressful reported the highest average salary of $108,855 for 2023.

Education and gender trends

Thirty-eight percent of respondents to this year’s salary survey completed an undergraduate college degree, while 22% have completed some college, and 11% hold an MBA degree. Nine percent of readers hold a two-year degree, 8% attended technical school, and 5% hold another type of graduate degree.

Respondents who hold an MBA earned an average salary of $128,560, followed by $119,225 for professionals who earned another type of graduate degree. This year, 80% of respondents were male and 20% were female.

The survey found that men continue to earn more than women in the materials handling field, where men reported an average annual salary of $115,290 and women earned an average of $101,625.