How Have Salaries Changed Over the Past 12 Months?
We recently released our 2025 Salary Survey and Market Report for the Supply Chain industry, and through the process, we've uncovered some fascinating insights into how salaries have shifted over the past year—from entry-level roles to executive leadership.
One of the most significant findings? Salaries have decreased by an average of 7% across the board in the past 12 months.
The most substantial drop was observed in roles paying over $200,000, where we saw a 15–20% decrease in salary ranges in some cases. This shift is consistent across multiple sectors within the supply chain and logistics space.
What’s Driving This Downward Trend in Salaries?
We believe several key factors are contributing to this market correction:
1. Increased Competition for Roles
The supply chain job market has become more competitive, especially at the non-management and specialist levels. More candidates are applying for fewer open roles, giving employers more options and, in turn, reducing the pressure to offer top-end salaries.
2. Demand for Flexibility
There is particularly high competition for roles offering hybrid or remote working arrangements. These positions attract a broader talent pool, and candidates are sometimes willing to trade off salary for flexibility, inadvertently driving down salary expectations in these categories.
3. Performance Pressure and Rising PIPs
We've noticed an uptick in employees being placed on performance improvement plans (PIPs)—fairly or unfairly. This can often lead to involuntary exits and candidates returning to the market with compromised negotiating power, particularly if they are under pressure to secure employment quickly.
What Does This Mean for Supply Chain Leaders?
While the reality of decreasing salaries may paint a negative picture, it also presents a unique window of opportunity—if you're in a position to hire or restructure.
Here are a few ways to capitalise on current market conditions:
Use the Salary Survey as a Benchmark
If you're paying mid-market or above, our 2025 Salary Survey can give you the confidence that your team is being compensated fairly. This can be a powerful retention tool—especially when paired with non-monetary benefits like flexibility, upskilling, or career progression pathways.
Strategically Position Roles at the Lower End of the Market
If your salary bands are closer to the lower end, it's essential to position roles in a way that highlights your value proposition. Consider showcasing other benefits like flexible hours, culture, team stability, or career growth opportunities.
Stretch Workforce Budgets Sustainably
If you're growing your team, now is a great time to maximise your workforce budget. With more quality candidates available at adjusted salary expectations, you may be able to build capability while remaining under budget.
Align Salary Bands When Replacing Roles
When backfilling positions in 2025, there's an opportunity to realign salary bands with current market expectations. This ensures internal equity and helps create sustainable salary structures going forward.
Final Thoughts
The shift in salaries can be confronting, especially for candidates experiencing downward adjustments. However, for businesses and hiring managers, it also opens a strategic opportunity to hire exceptional talent, realign internal structures, and prepare for the next wave of market change.
If you'd like a copy of our full 2025 Salary Survey & Market Report or want to chat about how to position your team in the current landscape, get in touch—we're here to help.