Salary Considerations

Salary Considerations

What Factors Impact Salaries?

Although there's no perfect formula for estimating the offers that you will receive, the following issues impact an employer's starting salary offers:

Factor	What Drives Salary Offers Higher?
Education Level	Advanced degree such as an MBA produce higher salary offers than do Bachelor or Associate degrees.
Relevant Work Experience	Extensive supply chain work experience (even as an hourly associate) or participation in SCM internships gives you a strong foundation and the ability to command more money.
Grades and Accomplishments	Some companies pay a premium for students with high GPAs and related academic accomplishments.
Leadership Experience	SCM is a people business. If you have a demonstrated ability to effectively lead people, your stock will rise.
Scope of Responsibilities	The greater the responsibility (e.g., managing more people or controlling a larger budget), the higher the salary!
Company Type	Historically, the highest SCM salary offers have come from the manufacturing sector. However, retailers, carriers, and 3PL firms are working to close the gap.
Geographic Flexibility	Being open to relocation early in your work life will positively impact your career options and salary growth.
Geographic Location	Jobs in larger cities and geographic areas (Northeast and West) with a higher cost of living pay more to offset your added expenses.
Ability to Negotiate	Many SCM positions are pegged to a starting salary range rather than a single number. Your ability to sell your skills, motivation, and potential for success will determine what you are offered within that range.

Don’t Forget the Benefits

In addition, SCM positions typically offer a full range of benefits and you are likely to be eligible for bonus pay. The article Benefits and Bonuses provides an excellent discussion of the wide array of perks that employers offer to new hires. Although it specifically addresses another service industry, the themes are on target for SCM grads. The author wisely suggests: “you need to understand what benefits employers will dangle under your nose, which employers offer the best deals and how to bargain your way to a more inviting work environment.”