Increased Diversity Brings Pay Hikes - Statistical Data Included

NEWCOMERS TO THE INDUSTRY ARE DEMANDING--AND GELLING--HIGHER SALARIES, WHILE THE INDUSTRY IN TURN IS DEMANDING A WIDER BASE OF RESPONSIBILITIES AND SKILLS.

Circulation jobs have never been I more challenging. With stamp-sheet reform, wholesaler consolidation and declining newsstand sales, plus increased responsibilities associated with Internet marketing, circulation pros are being challenged and stretched. Add that the available pool of experienced talent seems to be shrinking, and it's no wonder that circulation salaries continue their steady rise.

FOLIO:'s 2000 circulation salary survey found that base pay for circulation directors rose 6.6 percent this year, to an average of $77,774. Circulation managers saw more than twice that gain; their salaries increased 13.8 percent, to $45,915. Those healthy increases brought five-year compound annual growth to 6.2 percent for directors and 6.4 percent for managers.

What's responsible for the steady salary growth? "I think it's pressure from the ever-proliferating number of titles, and the pool of talent growing arithmetically while the titles grow exponentially," says James Forsythe, circulation director for Essence.

There's no discounting the effect that mergers and acquisitions are having on the job market, but whether that effect is positive or negative is open to debate. "It's created opportunities at higher levels," points out Nick Cavnar, vice president of circulation for Intertec Publishing, publisher of FOLIO:. "But I think it's worsening the problem of keeping people in circulation careers." The reason, Cavnar says, is twofold: First, circulation jobs are frequently at risk during consolidations. Second, there are not as many companies for circulation workers to go to, and therefore fewer options.

But Bea Hanks, director of circulation and database marketing for Individual Investor, looks at it differently. "I know there's been a lot of churn," she says, "and I think that's positive for circulation directors."

This year, circulation managers seemed to benefit the most from industry demand. Not only did they receive a double-digit pay raise--a whopping 17.7 percent in the case of consumer managers--they are starting out with higher salaries. According to the survey, managers with fewer than three years at their present companies are earning comparable money ($47,829) to those with more than seven years of experience ($48,552).

The limited-service-higher-pay oddity also extends to directors: Those with less than two years at their present companies average more ($76,484) than those with five to eight years ($74,891).

"That tells me that people entering the field today are expecting more money, and companies are paying more than in the past. There aren't that many people with circulation experience, so it becomes an issue of supply and demand," says Diane Russo, circulation director for Miller Freeman.

In the breakdown of business type, trade pay has virtually drawn even with consumer compensation after years of lagging behind. "Traditionally, consumer pay has been higher because consumer circulation in general has generated a lot of revenue," notes Cavnar. "But the level of expertise has grown with business magazines as the b-to-b database has grown more important to the company."

Circulators report that their jobs are becoming increasingly diverse, with some dabbling in everything from ad promo and tradeshow marketing to Web site development and print buying. Perhaps that versatility is making workers more employable. "I have seen more and more circ managers going into database marketing," Russo says. "That area is expanding, and circulation people know their databases."

But in light of the recent press coverage of dot-com layoffs, at least one circulation director feels there will be a slowdown of people moving from job to job. "People were lured to dot-coins," notes Wendy Frank, circulation director for Crain Communications. "Many of us were approached by executive searches that were throwing high numbers around."

METHODOLOGY: On July 26, 2000, FOLID: mailed questionnaires for the 16th annual circulation salary survey to a disproportionate sample of 1,472 circulation professionals as follows: circulation director at business magazines, 375; circulation managers at business magazines, 375; circulation directors at consumer magazines, 347; and circulation managers at consumer magazines, 375. A follow-up mailing was sent on August 8 as a reminder to participate. A total of 266 usable surveys were returned, resulting in an 18.1 effective response rate. Data were collected between July and August 2000, and analyzed by the Intertec Publishing Planning and Research Department. The main objective was to determine compensation levels among circulation professionals in the publishing industry. Results have been weighted to reflect the following industry makeup: business magazines with more than 100,000 circulation, 16 percent; business magazines with under 100,000 circulation, 34 percent; consumer magazines with more than 100,00 0 circulation, 34 percent; and consumer magazines with under 100,000 circulation, 16 percent. Results based on fewer than 20 respondents are not reported in the article, because they are not a valid sampling. These results are designated by asterisks in the charts.

Circulation Director

HIGHEST SALARY REPORTED: $205,000

LOWEST SALARY REPORTED: $17,000

TOP CIRCULATION EXECUTIVE. PLANS, DIRECTS AND COORDINATES CIRCULATION-MARKETING EFFORTS. DIRECTLY RESPONSIBLE FOR BUDGETING AND ANALYSES OF SINGLE-COPY SALES AND ALL SUBSCRIPTION PROGRAMS, LIST RENTALS AND DATABASE PLANNING AND MAINTENANCE.

AVERAGE BASE SALARIES FOR THE LAST FIVE YEARS

1996

Average: $57,642

Business: $54,875

Consumer: $59,805

1997

Average: $61,512 (+6.7%)

Business: $57,993 (+5.7%)

Consumer: $64,458 (+7.8%)

1998

Average: $65,327 (+6.2%)

Business: $62,892 (+8.4%)

Consumer: $87,530 (+4.8%)

1999

Average: $72,992 (+11.7%)

Business: $70,430 (+12.0%)

Consumer: $75,311 (+11.5%)

2000

Average: $77,774 (+6.6%)

Business: $77,910 (+10.6%)

Consumer: $77,638 (+3.1%)

Average salaries for circulation directors, which jumped 11.7 percent in 1999 after two consecutive years of increases in the 6 percent range, dropped this year to 6.6 percent. For those at consumer magazines, however, there was a precipitous drop from an 11.5 percent increase last year to just 3.1 percent this year.

Circulation Manager

HIGHEST SALARY REPORTED: $90,000

LOWEST SALARY REOPORTED: $16,350

GENERALLY, THE SECOND LEVEL OF MANAGEMENT IN THE CIRCULATION DEPARTMENT.

ADMINISTERS CIRCULATION PROGRAMS FOR SUBSCRIPTIONS AND SINGLE-COPY SALES. HANDLES ALL FACETS OF CIRCULATION FOR ONE OR MORE TITLES.

AVERAGE BASE SALARIES FOR THE LAST FIVE YEARS

1996

Average: $33,718

Business: $32,338

Consumer: $35,164

1997

Average: $35,497 (+5.3%)

Business: $34,041 (+5.3%)

Consumer. $37,192 (+5.8%)

1998

Average: $37,040 (+4.3%)

Business: $37,430 (+10.0%)

Consumer: $36,587 (-1.6%)

1999

Average: $40,354 (+ 8.9%)

Business: $40,807 (+9.0%)

Consumer: $39,841 (+8.9%)

2000

Average: $45,915 (+ 13.8%)

Business: $44,935 (+10.1%)

Consumer: $46,897 (+17.7%)

In sharp contrast to circulation directors, 2000 was a banner year for circulation managers. The average salary increased 13.8 percent, or 4.9 percentage paints over last year. For those at consumer titles, who saw their salaries increase 17.7 percent, the percentage point increase over last year was 8.8.

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