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Packaging salaries rise despite economic recession

An exclusive IoPP/Packaging World survey reveals that average 2008 total compensation tops $100,000. Advancement opportunities, economic factors challenge packaging pros.

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Unprecedented financial conditions so challenge the global economy that cost-cutting measures are commonplace and workers face mounting responsibilities with fewer resources on which to draw. Yet packaging continues to provide some financial security in today’s economic storm. For evidence look no further than the exclusive 2008 Salary Survey conducted by the Institute of Packaging Professionals (www.iopp.org) and Packaging World. According to the 1,188 respondents to a question about 2008 earnings, the average total compensation was $101,879.

Overall, 1,637 people responded to the online survey, which was developed in cooperation with Gros Executive Recruiters (www.plasticsjobs.com). Market research comes from Kane Consulting (847/934-7150). The survey was conducted between Jan. 13 and Feb. 13, 2009, reflecting the state of respondents and their work in 2008 (see “Survey Methodology” sidebar, page 46).

Sixty-five percent of the respondents to the question about earnings in 2008 indicated their compensation increased as compared to 2007 (see Table A). More good news: Fifty-nine percent of respondents to this question earned a bonus last year, with the average bonus equal to 10.2% of their total compensation.

Looking at compensation by job function (Table B), corporate management respondents reported the highest average earnings, at $146,171. At the other end of the earnings spectrum was packaging production at $70,991. Average compensation by job title was as follows: Company officer $151,169, vice president $142,038, division/department manager $111,772, supervisor $86,941, and staff member $87,111.

Average compensation figures by organization type (Table C) showed a noticeable difference between respondents who are end users and those who are suppliers. The end users reported a $97,017 average total compensation last year, while supplier respondents earned $109,073.

Interestingly, 149 survey respondents indicated they were both end users and suppliers, or others. An example of where a company might consider itself both an end user and supplier firm, according to Gros Executive Recruiters, may be a bag manufacturer that functions as a supplier, yet becomes an end user in that it orders zippers for its bags that are provided by a zipper supplier. On average, end-user firms tend to employ more employees (13,111) than supplier companies (4,021).

Experience, education pay

It’s important to recognize that age and experience factor into these seemingly healthy packaging compensation figures. Average compensation headed northward within each of six different age groups listed in the survey. For those 18 to 24, the average compensation was $59,571. That income reached an average of $120,263 for those 65 and older.

The average respondent was 43 years old, with males averaging 44 and females 41. The average respondent indicated 13.5 years of experience, with men averaging 2.5 more years of packaging experience than women. There continues to be a gap in compensation between the sexes, with women averaging $85,903 in 2008, about $20,000 less than the $105,948 earnings reported by men.

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