2018 Pharmacy Compensation Survey -- Staff Pharmacist-Retail DROPPED, 1st time ever / Healthcare Retail-Satellite Pharmacist increased 23% 2016-2018 / Hospital Technicians earn 54% more than Retail Technicians

June 26, 2018

2018 Pharmacy Compensation Survey — Staff Pharmacist-Retail DROPPED, 1st time ever / Healthcare Retail-Satellite Pharmacist increased 23% 2016-2018 / Hospital Technicians earn 54% more than Retail Technicians 

Welcome to PharmacyThisWeek!

Record breaking survey results to report! We had 303 participating organizations and a record number of pharmacy professionals at 346K+, highest ever!! Several exciting developments, here are just a few survey highlights…

  • 303 Organizations (7.1% decrease)
  • 346,115 Incumbents (8.5% increase)
  • 54 Positions surveyed (1.9% increase)
  • 395 Metropolitan Areas
  • 17 Pay, Human Resources, & Benefits  Policy Topics Including: Pay Increases, Pay Differentials, Holiday Pay, Sign-on Bonuses, and Market Pricing  Philosophy
  • Total Pharmacy Operations experienced an increase in total turnover for 2017 compared to 2016 (15%), but still lower than General Industry.

    17% Total Pharmacy Operations
    10% Pharmacy Team Managers
    9% Staff Pharmacists
    7% Clinical Pharmacists
    21% Pharmacy Technicians

  • 22% Total Average General Industry Turnover Rates

    7% Involuntary
    14% Voluntary

  • COMPENSATION PLANNING / PAY INCREASE PRACTICES FOR THE PHARMACY INDUSTRY

    2.9% The mean projected value for 2018 was the same as the actual increases given out in 2017 for key pharmacy roles, which is slightly higher than last year’s projections of 2.8%.
    87.1% of survey incumbents work in the Hospital/Healthcare industry
    4.3% Supermarket
    1.7% Managed Care/Health Plan
    3.3% Mail-Order/PBM
    1.0% Specialty Services
    0.7% Mass Merchandiser
    1.7% Chain Drug Store
    0.3% Other

  • BASE PAY INCREASES LOWER THAN MERIT INCREASES Across all positions, the average median base pay increase was 0.2%, which is lower than the merit increases reported along with last year’s average median base pay increase of 3.2%.
  • BONUS PAYOUTS INCREASED COMPARED TO 2017 Average bonuses increased as a percentage of base pay compared to 2017. The average actual short-term incentive increased by 17% and the median actual short-term incentive increased by 39% from 2017 to 2018.
  • TOTAL CASH WAS IMPACTED BY THE SHORT-TERM INCENTIVES On average, the median total cash for all jobs increased 0.6% from 2017 to 2018. This is higher than base pay increases due to the higher average amount in bonuses paid, although considerably lower than last year’s average median total cash increase of 4.3%.
  • BASE PAY TRENDS – YEAR-OVER-YEAR INCREASES OVERALL Overall, marginal change between 2017 and 2018 for leadership positions compared to growth for Pharmacist and Pharmacy Technician positions. Retail positions appear to be trailing.

    -1.4% Regional Pharmacy Operations Director (4.9% 2017)
    0.5% District Pharmacy Operations Manager (3.7% 2017)
    0.7% Pharmacy Team Manager (0.9% 2017)
    6.1% Staff Pharmacist – Healthcare Retail/Satellite (16.7% 2017)
    -0.5% Staff Pharmacist – Retail (1.0% 2017)
    3.5% Clinical Pharmacist (3.1% 2017)
    4.1% Staff Pharmacist – Hospital (0.8% 2017)
    3.3% Staff Pharmacist – Mail-order/PBM (1.3% 2017)
    10.6% Pharmacy Tech Supv (4.3% 2017)
    3.6% Lead Pharmacy Tech (2.6% 2017)
    0.4% Pharmacy Tech – Retail (5.2% 2017 but this was combined retail/hospital, now separated going forward)
    7.3% Pharmacy Svc Assoc (6.4% 2017)

  • BASE PAY TRENDS – DIRECTORS AND MANAGERS Regional Pharmacy Operations Directors decreased $2K after having experienced a steady increase year-over-year with a 8% increase from 2015 to 2017.

    $138K Pharmacy Team Manager ($136K 2016, $137K 2017)
    $180K Pharmacy Director ($178K 2016, $171K 2017)
    $154K District Pharmacy Operations Manager ($148K 2016, $155K 2017)
    $178K Regional Pharmacy Operations Director ($172K 2016, $180K 2017)

  • DETERMINANTS OF PAY AND RECOGNITION AWARDS – PHARMACY TEAM MANAGER Not only do your organizations provide tenured service awards, but for Pharmacy Team Managers, experience is the key driver of pay.
  • GEOGRAPHIC PAY DIFFERENTIALS BY CITY – PHARMACY TEAM MANAGER Yuma, AZ has the largest differential from the national median base salary for Pharmacy Team Managers at 18.2%.

    18.2% Yuma, AZ
    15.0% Brownsville, TX
    13.1% Redding, CA
    11.1% Chico, CA
    10.7% Anchorage, AK
    9.9% San Luis Obispo, CA
    9.6% Stockton, CA
    9.3% Salinas, CA
    9.1% Santa Barbara, CA
    8.7% Bangor, ME

  • DETERMINANTS OF PAY – STAFF PHARMACISTS Years of total pharmacist experience is still the dominant driver for determining Staff Pharmacist’s pay.
  • BASE PAY TRENDS – PHARMACISTS Pay for the Healthcare Retail/Satellite Pharmacist has increased significantly over the last several years with a 23% increase from 2016 to 2018 and a 27.4% increase from 2015 to 2017. (However Regional Pharmacy Operations Director & Retail Staff Pharmacist have both dropped. This is the first drop recorded since we started the original survey back in 1995!)

    Median Hourly Pay

    $59.09 Pharmacist – Mail-order/PBM ($56.40 2016, $57.37 2017)
    $61.92 Clinical Pharmacist ($58.89 2016, $59.97 2017)
    $63.24 Pharmacist – Hospital ($59.91 2016, $60.51 2017)
    $60.95 Pharmacist – Retail ($60.80 2016, $61.35 2017)
    $81.13 Pharmacist – Healthcare Retail/Satellite ($65.52 2016, $76.47 2017)

  • BASE PAY TRENDS – RETAIL PHARMACISTS BY INDUSTRY SPECIALIZATION Across companies who participated 2016-2018, Supermarket Pharmacists are seeing a greater increase in pay than those in Chain Drug Stores. Last year it was a different trend, it’s now reversed itself. Across the three year sample 2015-2017, Supermarket Pharmacists saw the smallest increases in pay.

    Median Hourly Pay

    $60.00 Chain Drug Store ($60.60 2016, $60.90 2017)
    $62.05 Supermarket ($60.50 2016, $61.25 2017)

  • GEOGRAPHIC PAY DIFFERENTIALS BY STATE– RETAIL PHARMACIST The regional pay trends for Retail Pharmacist is similar to the Pharmacy Team Manager. Geographic increases: (Colorado, Vermont) & decreases (Missouri, New Mexico, Rhode Island, Tennessee).
  • GEOGRAPHIC PAY DIFFERENTIALS BY CITY – RETAIL PHARMACIST Yuma, Arizona pays higher than other cities nationwide for Retail Pharmacists. Top geo-differentials can also be found in California, Alaska, Maine and New York.

    14.8% Yuma, AZ
    13.2% Redding, CA
    12.9% Anchorage, AK
    12.3% Bangor, ME
    12.1% Elmira, NY
    11.7% Ukiah, CA
    11.2% Fresno, CA
    10.6% Oakland, CA
    9.9% Bakersfield, CA
    9.9% San Luis Obispo, CA

  • BASE PAY TRENDS–PHARMACY SUPPORT ROLES Steady increase for Pharmacy Service Associates as well as Pharmacy Technician Leads and Supervisors over the period from 2016 to 2018. Although Lead Pharmacy Technician pay decreased in 2015, over the period from 2015 to 2017, it had a 10.7% increase.

    Median Hourly Pay

    $11.70 Pharmacy Service Associate ($10.00 2016, $11.00 2017)
    $17.48 Lead Pharmacy Technician ($16.48 2016, $16.93 2017)
    $25.28 Pharmacy Technician Supervisor ($21.82 2016, $22.84 2017)

  • BASE PAY TRENDS – PHARMACY TECHNICIANS BY INDUSTRY SPECIALIZATION Pay for Pharmacy Technicians has generally increased. Splitting up the General Pharmacy Technician position demonstrates a clear distinction in pay between Retail and Hospital. Pharmacy Technicians in hospital/health care systems receive a significantly higher hourly wage than those in other industries.

    Median Hourly Pay

    $13.00 Pharmacy Technician – Retail ($12.50 2016, $12.89 2017)
    $20.00 Pharmacy Technician – Hospital (Hospital Pharmacy Technicians earn 54% more than Retail Pharmacy Technicians)
    $15.53 Pharmacy Technician – PBM/Managed Care ($15.00 2016, $16.80 2017)
    $19.22 Specialty Pharmacy Technician ($21.22 2016, $17.62 2017)

  • GEOGRAPHIC PAY DIFFERENTIALS BY CITY – RETAIL PHARMACY TECHNICIANS Huge difference in geographic differentials prevalent for Retail Pharmacy Technicians. San Francisco, California pays the highest nationwide for this position.

    Percent Difference from National Median Base Salary

    68.6% San Francisco, CA
    53.8% Ukiah, CA
    50.3% Vallejo, CA
    50.0% Oakland, CA
    49.2% Santa Rosa, CA
    47.2% Tacoma, WA
    43.4% Sacramento, CA
    42.3% Longview, WA
    40.1% Seattle, WA
    39.9% Bremerton, WA

  • BASE PAY TRENDS – NEWLY LICENSED PHARMACISTS Marginal change in pay from 2016 to 2018 for Pharmacy Residents and Pharmacy Graduates.

    Median Hourly Pay

    $23.56 Pharmacy Resident ($22.00 2016, $23.32 2017)
    $29.00 Pharmacy Graduate ($29.00 2016, $30.00 2017)

  • SHORT-TERM INCENTIVE PLAN MEASURES Short-term incentive plan measures are similar for Pharmacy Team Managers and Pharmacists.
  • SHORT-TERM INCENTIVE ELIGIBILITY Pharmacist short-term incentive eligibility varies widely by role. District Pharmacy Operations Managers are 99% eligible for short-term incentives. Pharmacy Service Associates are 3% eligible for short-term incentives.
  • SHORT-TERM INCENTIVE ELIGIBILITY Across all positions highlighted, 53% – 83% of the eligible population received a short-term incentive.
  • TARGET VS. ACTUAL INCENTIVES Actual short-term incentive payouts in 2018 were higher than 2017, except for Pharmacy Team Managers, and aligned closely to 2018 short-term incentive targets.

I hope everyone has a great week, you can always reach me at my email or cell number below, thanks!

Kevin Mero
President
kevin@pharmacyweek.com
cell: 210 872-6160

 

 

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SPOTLIGHT EMPLOYER: Comprehensive Pharmacy Services, Inc
SPOTLIGHT EMPLOYER: Cardinal Health

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