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

Since forecasting is a fairly young function, people often ask the question: What is the going salary in this function at the entry level as well as at other levels? To attract the new forecasting caliber or retain the old one, you have to offer salary that is fair and competitive. With increasing awareness about the importance of forecasting in business planning, more and more companies are now building up their forecasting staff. Our most recent survey shows that 87% of mid-size and large-size companies now have one or more full-time forecasters. It is true how much you should pay to an individual varies from one individual to another and from one geographical area to another. One individual may be more talented and hard working than the other. Again, the cost of living in one area may be much higher than the other. Even though the survey does not account for these elements, it provides some benchmarks, which can be used as a guide in determining the fair compensation.

OVERALL SALARY

The survey categorized forecasting positions into five: (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 comes to $54,000; Senior Forecast Analyst, $68,000; Forecast Manager, $79,000; Director of Forecasting, $111,000; and Vice President of Forecasting, $158,000. (See Figure 1) The median is the point that divides the group: half of the group makes more than the median salary and the other half less. The median salary is preferable over the mean (average) because the mean can be distorted by extreme values.

SALARY BY INDUSTRY

Although salaries within each position vary from industry to industry, forecasting salaries, by and large, are the lowest in Apparel & Footwear and Retail and the highest in Pharmaceuticals. …

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