Nationally, the position of staff pharmacist receives median total cash compensation (which includes base salary and annual bonus) of $88,400 compared to $84,200 in 2003, an increase of 5.0%. Other jobs in the 2004 survey show similar year-over-year increases, including pharmacy team manager, clinical pharmacist, and staff pharmacist at a mail-order/online pharmacy firm. (See Table 1 for a year-over-year comparison of select pharmacy positions.)
"Several factors, such as a shortage of pharmacists, a growing elderly population, and rising use of medications has prompted many employers to increase pharmacy-related salaries ´more than usual,´" says Michael Burniston, a senior rewards consultant based in Mercer´s New York office. "In this fast-growing industry, employers want to retain quality employees."
Despite the fast-moving pace of the industry, pay levels vary significantly by geographic location. Compared to the national median for total cash compensation, pay for a staff pharmacist is much lower in cities like Omaha, Neb. ($79,000), Pittsburgh, Pa. ($75,100), Kansas City, Mo. ($80,600), and New Orleans, La. ($83,200). However, pay for this position is much higher in many California cities, including Fresno ($102,900), Modesto ($102,400), and San Francisco ($101,100). (See Table 2 for additional pay information by market.)
"To attract and retain the best pharmacy talent, pharmacy operators need to ensure competitive pay levels," says Mr. Burniston. "Since these pay levels vary from market to market due in part to demand for pharmacist skills, reliable market data is essential for 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 199 organizations covering more than 200,000 pharmacy employees in 16 different jobs. Survey data were collected for more than 380 metropolitan areas across the US.
The semi-annual 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 2004 Pharmacy Compensation Survey - Spring Edition examines pay practices affecting pharmacy professionals. Among the findings:
- The survey shows that base pay for pharmacy professionals is rising at a steady rate. Pharmacy employers granted average base pay increases of up to 4.0% in 2003.
- According to the survey results, the health care industry pays more for the positions of pharmacy team manager and pharmacy technician, up to $5,000 and $8,000 per year, respectively, than the retail industry. However, the retail industry pays approximately $3,000 more annually for the staff pharmacist position.
- Few of the organizations surveyed provide any type of short-term or long-term incentive pay 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.
