Report: Merchants Earn Highest Pay in Retail Organizations
There are multiple departments within a retail organization, so which are most important? If we’re equating worth to cost — i.e., the annual salaries of employees within each department — then supply chain executives are most critical (see chart below). This was just one of the findings of Total Retail's recently released 2018 Salary Benchmark Report, which included the results of an online survey sent to the brand's audience earlier this year.
Supply chain executives are tasked with partnering with buyers, planners and vendors to develop strategies to reduce supply chain expenses while also increasing sales, gross margin dollars, and profitability. Therefore, their average annual salary of $145,724, the most of any department, makes sense. In fact, supply chain execs are receiving a salary nearly 12 percent higher than the next closest department, merchandising. Merchants receive an average annual salary of $129,467.
In the chart above, respondents that identified their department as general management (e.g., presidents, CEOs, owners) received the most in non-salary compensation in 2017. This makes sense considering that employees responsible for management of the overall company are most likely to have bonuses tied to its performance. The better the company performs, the more those at the top of the org chart stand to benefit.
When analyzing total annual compensation (base salary plus any additional financial benefits received such as bonuses, commissions, stock options, etc.), employees on merchandising teams were found to be at the top of the pay scale. Their $215,835 average compensation is easily the highest of any department, and quite a gap between the lowest paid on the scale, customer service (average compensation of $52,729).
For more valuable retail salary data, both for employees looking to maximize their earning potential as well as for employers looking to attract and retain top talent at their organizations, Total Retail's 2018 Salary Benchmark Report is available to download for free.
