2017 Salary Survey: E-commerce’s sweeping effect

First and foremost, the editorial staff would like to thank the 687 LM readers who took the time to complete the e-mail survey in January. Considering that 77% of this year’s respondents told us that the number of day-to-day duties they perform has increased over the past year, this impressive sample of readers certainly validates the importance they place on this annual report—a major reason that the market has identified this study as the most comprehensive salary data available.

Again this year, executive editor Patrick Burnson and PRG research director Judd Aschenbrand have done a terrific job of putting context around the findings. In fact, they were able to identify a few positive trends running in parallel with the current market environment, all of which point to how a younger, more diverse workforce is being lured into the market—and being paid to stick around.

But before I dig into the more refined details, let’s take a quick overview. When all of the data is rolled up, 2017 median salaries remained at $90,000, equal to last year’s level, with a majority of respondents reporting that they received a cost-of-living raise. Not surprisingly, the research team found that aggregate salaries inched up slightly in 2016, with middle-aged managers still earning more than their younger peers overall.

“Versatility and hands-on experience are always attributes that lead to higher salaries,” says Aschenbrand. “Results over the years have shown that those having more than 10 years of experience will almost always see consistent salary gains. So yes, commitment and loyalty in logistics still pay off.”

However, Burnson says that we’re finally starting to see a direct correlation develop between the growth of e-commerce and the salary scale that’s being established to match the skill sets needed to make companies competitive in this dynamic new marketplace.

He reports that survey respondents who have only been in their present position for three years to five years captured the greatest gains in income—rising to $97,000 from $87,000—in just the past 12 months. “These tended to be younger, more tech-savvy respondents who express a desire to grow into e-comm positions,” adds Burnson.

And when our team dug deeper into the data they found that respondents who consider themselves “highly knowledgeable” about e-commerce earn a median salary of $105,000 compared to the $73,500 earned by those who say they’re not as involved in e-comm processes. “This is a trend we first tracked last year, indicating that younger workers might be better positioned for advancement because they tend to be more comfortable with digitized commerce,” adds Aschenbrand.

But it’s also refreshing to learn that it’s not just about the money for these logistics professionals it their 20s and 30s. In fact, this group has made it clear that they’re looking for a work/life balance that was often elusive to older generations—and they’re not going to “jump ship” for a few bucks.

“I spoke with several middle-aged mangers who told me they’re ‘mentoring’ younger workers on the fine points of management that they need to grow,” says Burnson. “But overall, I think it’s clear that Millennials are seeking meaning in their work, and they’re genuinely passionate about logistics because they can see that it’s the foundation, the core of what makes e-commerce work—and that’s pretty cool.”