According to a 2024 report by Pew Research, workers – by and large – felt fairly secure in their careers, and widely held rumors about rampant job-hopping were just that: rumors not backed up by data.
But Pew’s report did point out an issue that’s proven challenging for workers and their employers alike: talent shortages brought on by the pandemic have forced businesses to pay more for their workers, yet those wage rates have still generally failed to keep pace with inflation. This phenomenon has led to a frustrating impasse for all — businesses are tapped out, and their workforces still struggle with cost-of-living increases.
Take, for example, the decline in buying power that’s occurred in the last few years. The median 2021 salary for a full-time adult exceeded $64,000 when adjusted for inflation; today, that figure is $60,000.
But does this trend extend into industrial distribution — including ID’s audience, where salaries tend to far exceed the national average?
As is so often the case, the results of our latest annual survey show a mixed bag of compensation satisfaction. In the following pages, we explore the pay and benefits of our readers and report on their biggest concerns — or, for many, lack thereof.
The 2025 ID Salary Report is based on a survey distributed via email and conducted throughout the month of June. The results are divided into three categories based on how respondents classified their specific job functions.
The following results are based on separate sets of data from Executives (Owner, Chairman, CEO, CFO, CIO, COO, President or VP); Mid-Level (non-sales) Management (Product, Operations, Branch and/or Purchasing); and Sales Representative/Manager. This year’s split of respondents came in at 35% executives, 36% mid-level management and 28% sales rep or sales management. Overall, 84% of respondents were male, and the pool’s age breakdown was split at 14% under 40 years old; 23% at 41-50; 28% between 51-60; and 35% above age 60.
Executives
The group of survey respondents that serves in an executive function is generally the oldest and, also, the most well-compensated. These characteristics held true in 2025, with 38% of the group in the 60 or older age category, and salaries to match those tenures.
This group also tends to be the most satisfied with their compensation — a result, most likely, of higher pay packages, as well as the fact that many hold the purse strings within their respective companies. They are also well-educated: 86% hold either a college bachelor’s or advanced degree.
Other important characteristics include:
Company longevity: The average survey respondent in this category says they’ve been with their respective companies for 16.5 years.
Consistency of job function: When it comes to the specific role they perform, the average length of tenure was reported to be 11 years.
Supervisory roles: Two-thirds report supervising more than five employees, with a third of them overseeing 20 employees or more.
Nearly two-thirds of this group’s respondents believe the cost of living in their area to be “higher than average,” a shift that we’ve seen across all groups over the years as inflation hit urban, suburban and rural regions alike. Despite this, our group of executive survey respondents reported general satisfaction with their financial situations. In fact, this group was rather emphatic: for the first time in recent history, all survey respondents in this category told us they believed their current compensation was fair. That compares to 83% who said the same last year.
So what does fair look like? For this group, it’s an average base salary of $175,000 — a figure that’s nestled between what was reported last year ($189,000) and the year prior ($167,000), suggesting general year-over-year consistency. When this group adds compensation dollars from stocks, bonuses and the like, it’s enough to push the full tally to $293,000, close to the $300,000 sum reported in 2024.
Fifty-eight percent of this response pool reported receiving a raise last year, a substantial figure when you consider 28% of last year’s group said they were either concerned or unsure that they’d see a reduction in their pay in the coming year. Fears there seem to have been, fortunately, overblown; in reality, just 3% reported having received a pay cut this year.
For those who did receive a raise, increases were characterized by the following:
- A cost-of-living increase based on inflation (30%)
- A standard, merit-based pay raise (25%)
- A sizable merit-based pay raise (15%)
- A stronger benefits package (15%)
- More incentive-based opportunities for cash awards/bonuses (25%)
And while just 3% conveyed concern that the next 12 months would bring a pay cut, one in five expressed being “unsure” what changes the next year could bring.
It’s generally true in our annual survey that respondents – no matter their job function, age or salary range – tend to believe that the job responsibilities they carry increase yearly. This year, 60% of executives say that’s true, a drop from 76% who said the same last year. Meanwhile, 37% say their job’s demands have remained the same.
And if hiring helps them delegate responsibilities, then the executive group believes their firms are well-positioned to capitalize on available talent: 84% believe their companies pay well enough in order to hire top talent.
Mid-Level Management
This next readership segment, generally considered to be in product, purchasing or branch management-type positions, features a varied demographic range. Specifically:
- More than one in five respondents in this category is female.
- A diverse age range brings representation from the under-40 set (15%), ages 41-50 (15%), 51-60 (35%) and 61+ (35%).
- Formal education varies widely, with 28% possessing some college experience, 43% with a college degree and 18% with an advanced degree.
- They represented businesses mainly in the Midwest (40%), Northeast (20%) and Southeast (20%).
The mid-level managers tend to be well-established within their companies. The respondents report an average company tenure of just over 12 years, and they’ve held their current positions for an average of 7.5 years. It’s perhaps because of this that they bring in an average salary that’s well above that of the typical American.
The mid-level survey respondents reported an annual average base salary of around $102,000. Though it’s slightly lower than the number reported last year ($109,000), this category reported increases in the bonus and variable pay category — bumping up from $27,000 last year, on average, to $35,000 this year. This brings the overall pay package to an average of $137,000 — a negligible bump from the $136,000 total reported last year. But while this increase is mild, it is notable that this group’s base pay was at $88,000 just four years ago — meaning this segment saw 17% in base gains alone over just four years.
The mid-level managers were also the group in our report that was most likely to report having received a raise in the past year, with 72% saying that was the case (compared to 58% of executives and, as we’ll elaborate on in our next segment, just 39% of salespeople). There were also zero respondents to this survey who said they’d received pay or benefits cuts in the past 12 months. Interestingly, this group reported the same consistency in last year’s survey.
Perhaps it’s this consistency that’s contributing to the mid-level management group’s general satisfaction with their pay rates. In 2023, 63% believed they were not fairly compensated. That number slid to 52% who said the same last year, and declined further this year: 41% now say they believe they are not fairly compensated. This is noteworthy when you consider that pay satisfaction has shifted into the majority for this group for the first time in recent history. Long the most unsatisfied group in our survey, the mid-level managers are now tied with the sales group with more than half feeling happy with where they are.
While this is good news, company leaders can also look to the survey’s commentary for insights into the reasons that 41% remain unhappy.
As far as a general vibe goes – at least among those who wished to comment – there is a mix of anecdotal evidence as to why their pay does or does suit their specific circumstances. Specifically, they said:
- “I think it’s lower than average for my experience level.”
- “The role in supply chain is undervalued.”
- “Past manager (male) was paid more.”
- “Commission does not match the personal efforts.”
Speaking of commission, 5% of this group said that the commission they earn comprises a large part of their earnings, while 20% said they rely on commission as a small percentage of income. One in five said that their commission goals feel unattainable and are a source of stress, compared to 30% who said their commission targets motivate them.
With all that said, it’s possible they’re preparing for a bumpier year ahead. While no survey respondents in this group expressed overt concerns that they will receive a pay cut in the coming year, 42% said they are “unsure” about that prospect.
Looking back to August of 2024, the mid-level managers appeared to have fewer questions about the future: 12% expected a pay cut – which, luckily, seems to have not materialized – and another 12% said they were “unsure.”
Sales & Sales Management
Sales can be a tough category to track in this industry; distribution organizations can vary widely in how they compensate these employees, especially based on the specifics of their function within the sales category. Our survey respondents, this year, classified themselves in the following roles:
- Outside sales (50%)
- Inside sales (25%)
- Independent rep (9%)
- None of the above (16%)
Sales is also a category in which top performers might generate far different take-home pay than their counterparts who are newer to the industry. Perhaps this is why we can get some varying feedback when we allow respondents to elaborate on their specific situations.
Let’s start with the background: generally speaking, these distribution salespeople generally hail from:
- Companies in the Midwest (43%), Southeast (35%) and Northeast (17%).
- Firms with annual revenues of >$25 million (35%), $25-$100 million (30%) and $100-$500 million (22%).
- Communities with a cost of living characterized as “average” (48%) or “above average” (39%).
Overall, our survey results reveal a sales workforce that’s a bit more on edge when it comes to its compensation. This group was the least likely to have received a raise in the past year, with just 39% saying that was the case for them.
The pay rate averages were generally in line with what’s been reported in the past few years, with a small increase in the weight at which commission played a role. 2023’s total compensation package average for salespeople and sales managers was $128,000, compared to $119,000 in 2024. This year, the total came in at $127,000, but the base salary was lower than 2024 ($86,000 in ‘25 compared to $92,000 in ‘24) and the commission was higher ($41,000 in ‘25 compared to $27,000 in ‘24).
We can see that, generally speaking, the past few years have offered very little movement for salespeople, though this year’s pay package represents a 10% increase from that of 2022, a figure we captured mid-way through a heavy year for inflation increases.
Do salespeople feel they are owed more wage hikes? Fifty-nine percent of this survey pool said they believe they are fairly compensated, leaving a large, unhappy chunk of customer-facing workers who feel otherwise.
And there may be a reason for it.
This group is the most likely of all of our job categories to have received a pay cut in the past year, with 9% attesting to this experience. Meanwhile, 61% say the demands of their job have increased in the past year.
And when it comes to their forward-looking sentiment, this group is also the most worried. More than a quarter say they are concerned that they might see a decline in compensation in the coming year, with another 9% saying they are “unsure.” This is dramatically higher than the other two groups, and may be reflective of general market inconsistencies that are resulting in pullback in certain categories and tough conversations with customers.
But although this group sits lower on the satisfaction scale than its executive counterparts, it’s important to note that salesperson wage satisfaction has generally been creeping up for a few years. While the number last year who expressed satisfaction was slightly higher at 61%, that group was far smaller in 2023, when just 44% said they were satisfied with their compensation.
But with a fairly even split, we have feedback from salespeople and sales management that spans a range from griping to gratitude:
- “I am responsible for a greater percentage of the profit than I am compensated for.”
- “I’ve replaced people earning twice as much.”
- “The conversation has stalled.”
- “Our team is still paid better than competitors pay.”
Perhaps in a nod towards general faith in their organizations, nearly 70% of sales and sales management personnel believe their companies pay enough to be competitive when it comes to recruiting top talent. This vote of confidence comes from a group that’s been working for their current employer for an average of 10 years, and held their roles for more than eight years.
Conclusion
This year’s report reflects an industry that’s been able to remain largely steady with pay rates, and workers’ satisfaction with their compensation has been stable – improving, even – in all categories.
But don’t risk the takeaway that treading water is the best course. Distributors have been clear that their key concerns in today’s economic environment relate to a need for consistency and clarity. Because of the uncertain outlook that comes with the evolving trade environment, it’s likely that many companies will take a measured approach to their expenses — and wages will more than likely stagnate until a clearer picture emerges.
But we’d encourage you to consider the impact of a lack of transparency on your workforce, as well. According to our report, salespeople are feeling this the most — 27% expressed concerns that they might lose money next year. Putting their minds at ease, if possible, could go a long way toward bolstering their happiness in their posts.
Comments? Email me at [email protected].
