Nationally, the position of staff pharmacist receives median total cash compensation (includes base salary and annual bonus) of $84,200. However, pay for this same position is much lower in cities like Omaha, Neb. ($74,300), Pittsburgh, Pa. ($74,000), Kansas City, Mo. ($76,800), and New Orleans, La. ($77,400), and rises to the $100,000 range in many California cities, such as Fresno ($99,300), Modesto ($106,100), Oakland ($98,000), Sacramento ($98,000), and San Francisco ($97,700). (See table for additional pay information by market.)
Median total cash compensation for other jobs in the 2003 survey includes pharmacy team manager ($89,400), clinical pharmacist ($82,900), and pharmacy technician ($20,600). Median pay for a staff pharmacist at a mail-order/online pharmacy firm is $79,800.
"Pharmacy operators want to ensure that their pay levels are competitive so they can attract and retain quality employees," says Michael Burniston, a senior rewards consultant based in Mercer´s New York office. "However, as our survey shows, the definition of ´competitive´ varies from market to market due to a number of possible reasons, including the level of demand for pharmacist skills in particular cities and regions. That´s why it´s so important to have reliable market data to use in making pay decisions."
Mercer´s survey contains detailed information on pay levels and pay practices for pharmacy personnel. Survey participants include major retail pharmacy operators (drug store and supermarket chains) as well as mail-order/online pharmacy firms and hospitals/health care systems. The survey reflects data submitted by 184 organizations covering more than 156,000 pharmacy employees in 16 different jobs. Survey data were collected for more than 380 metropolitan areas across the US.
The survey was launched in the spring of 2002 based on the interest expressed by the nation´s four largest pharmacy operators - CVS, Eckerd, Rite Aid, and Walgreens. These companies have committed their support and participation to make the survey a success. The survey also has the endorsement of PharmacyOneSource.com, an exclusive online resource for pharmacy professionals, and PharmacyWeek, a leading industry publication.
Other pay practices
In addition to reporting on pay levels, the 2003 Pharmacy Compensation Survey - Spring Edition also examines pay practices affecting pharmacy professionals. Among the findings:
- The survey shows that base pay for pharmacy professionals is rising at a steady rate, in line with overall salary increases for all jobs across all industries. Pharmacy personnel received average base pay increases of 3.6% to 3.8% in 2002, and their employers have budgeted similar pay increases for 2003.
- Most of the survey respondents offer both evening and overnight shift differentials to their pharmacy employees. For example, the average hourly shift differential for a staff pharmacist working an evening shift ranges from a low of $0.95 per hour to a high of $5.88 per hour. For an overnight shift, the differential ranges from a low of $1.07 per hour to a high of $7.49 per hour.
- Few of the organizations surveyed provide any type of short-term or long-term incentive plan to pharmacy employees. When such incentives are provided, they typically are offered to pharmacy team managers and staff pharmacists and are based on performance criteria such as pharmacy profits, pharmacy sales, and individual performance.
Geographic Pay Variations for Staff Pharmacists
