Academic journal article The Journal of Business Forecasting

Benchmarking Salary of Forecasting Professionals

Academic journal article The Journal of Business Forecasting

Benchmarking Salary of Forecasting Professionals

Article excerpt

As more and more businesses recognize the need for forecasting in decision making, the demand for forecasters is growing. At present, 86% of mid-size and large-size companies have one or more full-time forecasters. This raises a question of what is a fair and competitive compensation for a qualified professional forecaster. This survey provides the answer.

OVERALL SALARY

The survey categorized forecasting positions into five distinct positions: (1) Forecast Analyst, (2) Senior Forecast Analyst, (3) Forecast Manager, (4) Director of Forecasting, and (5) Vice President of Forecasting. When all the industries are combined, the median salary of a Forecast Analyst is $52,000; Senior Forecast Analyst, $68,000; Forecast Manager, $78,000; Director of Forecasting, $109,000; and Vice President of Forecasting, $156,000. (see Figure 1) The median is the point that divides the group in half: half of the group makes more than the median salary and the other half less. When analyzing salaries, the use of median is preferable over the mean (average) because the mean can be distorted by extreme values.

SALARY BY INDUSTRY

Although salaries within each position varies from industry to industry, by and large, forecasting salaries are the lowest in Apparel & Footwear and Industrial Products and the highest in Chemical, Electronics, and Pharmaceuticals.

The Institute of Business Forecasting has been tracking salaries since 2001. The data show that, over the period, the salaries of lower level positions (Forecast Analyst, Sr. Forecast Analyst and Forecast Manager) have risen steadily, though at a lower pace. …

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