Travel management and procurement salaries are up again this year, with an average annual increase higher than in 2013 and higher than overall workforce compensation growth recently measured by the U.S. Bureau of Labor Statistics. Yet more than four in 10 respondents to BTN's 31st annual Travel Manager Salary & Attitude Survey aren't satisfied with their salary relative to their responsibilities, and nearly three in 10 feel their efforts within their organizations aren't well-recognized. Perhaps that's because they're being asked to take on ever more responsibilities.
[Please click here to view the digital edition of BTN's 2014 Travel Manager Salary & Attitude Survey, featuring all charted data, downloadable as a pdf.]
First, the bottom-line results: Across all 248 respondents, including those with varying job titles and functions, from a wide range of industry sectors and company sizes, average total compensation for 2014 is $108,311. That's up 4.3 percent from respondents' average 2013 total compensation. Among the four subsets based on job titles that had sufficient samples, travel directors' total compensation is highest at $157,690, up 3.5 percent. Among travel managers and supervisors, the largest of those subsets, the average is $105,787, up 4.1 percent.
The familiar differences by company size and gender again were very apparent (including the typical disparity in the survey's respondent make-up, in which women this year represented nearly 70 percent of those polled). The gap between the average total compensation for men ($121,044) and women ($99,587) was 22 percent, marginally narrower than the gap derived from last year's respondent sample. But for 2014, women on average reported a 4.1 percent compensation increase versus last year, while men on average enjoyed a 4.6 percent increase. Perhaps that's one reason why nearly half of all women surveyed said they felt their salary is low for the job they are asked to do, compared with about a third of male respondents who said they felt that way. But based on respondents' commentary, there's more to it.
'Doing More With Less'
Across the entire survey base, 14 percent indicated that within the past two years they began to manage, negotiate or supervise aspects of their organizations' lodging program. In those same two years, 12 percent indicated they picked up responsibilities related to online booking and 11 percent cited new strategic meetings management tasks.
Travel advisories and travel security each are areas in which 10 percent of respondents now are involved but weren't two years ago. Other new travel management or procurement duties among respondents relate to car rental, T&E charge card programs, meeting planning/logistics, rail and corporate travel intranet sites (each cited by 9 percent), as well as air travel and travel data warehouses (each 8 percent).
When asked about the biggest changes in their jobs during the past year, those respondents offering replies overwhelmingly were negative, or at least alluded to more challenges. Several noted new responsibilities and increased workloads, with specific mentions of globalized travel programs, meeting planning and conference attendance management, a corporate card program, relocation and fleet management and several more mentions of new non-travel tasks, including property management.
One respondent noted "more complicated contracting challenges and pricing decisions," while another wrote that "the amount of paperwork and administrative tasks has increased."
Some of those polled also referenced such internal challenges as "less support," "working with consultants who do not know travel" and "new bosses who haven't managed a travel department before." One respondent indicated that "senior management has changed and devalued the role of managed travel."
Wrote another: "I report into purchasing/operations, and one major issue is providing the right (substantiated) metrics to demonstrate value to my position with my direct upper management; other divisions recognize the value so it's very political. Every activity has to be quantifiable. I believe I should be reporting into another division that recognizes savings, cost containment and traveler comfort as added value to the entire company, not just the division."
Yet another respondent summed up the sentiments of many: "Doing more with less."
Put it all together and this year's respondent base isn't overly thrilled. Thirteen percent of all respondents (11 percent of women and 18 percent of men) said they are paid well for their responsibilities. Those at smaller-spending companies (less than $2 million annual U.S.-booked air volume) were slightly more likely to say as much (17 percent), than those working at larger spenders. Respondents representing organizations spending between $13 million and $20 million annually on U.S.-booked air travel are, in relative terms, the least put off: 38 percent believe their salary is low for their responsibilities (the smallest of any subsets based on spending) and 52 percent believe it's equitable (the largest among subsets).
Respondents at smaller-spending companies, however, are more likely to feel that their efforts are very well-recognized: Twenty-seven percent of all those at companies with U.S.-booked air volumes of $12 million and less indicated as much, compared with 14 percent of all those from organizations spending more.
Despite levels of dissatisfaction, respondents' aggregate increase in total compensation of 4.3 percent outpaced last year's measured 3.8 percent average increase. Meanwhile, the U.S. Bureau of Labor Statistics for the 12 months through the first quarter of 2014 reported overall compensation growth of 1.7 percent for private workers, 1.8 percent for civilian workers and 1.9 percent for state and local government workers.
Bonus Points
For the travel management and procurement crowd, bonuses and incentives account for about 12 percent of total average compensation, according to survey results. That number generally was lower among those working at smaller-spending organizations compared with peers at larger spenders, and lower for women (11 percent) than men (15 percent).
Similarly, more women (48 percent) than men (30 percent) indicated that they receive no bonus, incentive or stock options based on how well their department performs. Across both genders, the likelihood of such performance-based compensation boosters increases along with the size of company spend.
Of the polled travel professionals who do earn incentives, they do so most frequently due to savings/cost avoidance (cited by 29 percent of survey respondents). That's followed by some formula that considers savings, satisfaction, reporting and strategic initiatives (23 percent), the travel department's contribution to the organization's value (21 percent) and year-over-year program improvement statistics (21 percent). Traveler satisfaction ranked lower on the list, with good performance in that area earning incentives for 11 percent of respondents.
Additional Findings
• If travel management professionals aren't happy with their salaries, at least the overwhelming majority expect them to stay the same in the coming year (59 percent) or increase (39 percent).
• Looking two years ahead, about three-quarters of respondents expect to be employed by their current employers (with most of these anticipating they'll have the same or a more advanced travel-related position, and very few expecting to move into a largely non-travel position). About 20 percent think they will be working elsewhere.
• The proportion of BTN survey respondents holding industry certifications continues to dwindle. This year, 60 percent indicated they have no such certifications, up from 57 percent last year. The Global Business Travel Association's Global Travel Professional designation, its Certified Corporate Travel Executive designation and the Institute of Supply Management's Certified Purchasing Manager certification were the most cited, each at 7 percent. No other certification received more than a 5 percent response rate.
• Several areas tangential to travel management—some of which are gaining prominence within some managed travel programs—remain the domain of few respondents. At least six in 10 said they neither are now involved in nor expect within two years to be involved in procurement card programs, corporate housing and relocation, traveler insurance and mobility technology/services. At least seven in 10 said as much for incentive planning, business aircraft or charter, corporate car fleet or leasing, leisure travel for employees, mobile phone contracts and videoconferencing.
This report originally appeared in the July 28, 2014, edition of Business Travel News.