Survey: Salaries Are Movin’ on Up

The economy may be down, but for a large portion of show management, salaries still are going up.

According to Tradeshow Week’s 2008 Show Management Salary Survey, for-profit exhibition organizers’ average salaries jumped to $79,615 this year, from $64,993 in 2007. And association management saw an even bigger increase, climbing from an average of $58,395 last year to $79,914 in 2008.

Although one year does not make a trend, said Michael Hughes, TSW associate publisher and director of research services, an explanation for the jumps may be the growing importance of conventions and exhibitions to their associations.

“Association shows – like tradeshows – are becoming more complex, with more revenue streams, different marketing mediums to master and the Internet as a revenue stream and marketing tool,” he added.

But it must be kept in mind that there are two types of association shows, Hughes said, adding that the first group is larger and more sophisticated and is able to match the for-profits when it comes to adhering to best practices.

“Then (there is) a secondary group that may not utilize the leading techniques in terms of marketing, pricing and technology usage,” he added, pointing out that the survey mostly was completed by the first group.

And, with both associations and for-profits, Hughes said, supply and demand is a factor, with inflation driving salaries and benefits.

“The demand for high-quality event and meeting executives (who) can run major, high-profile association events is greater than the supply,” he added. “The skills of major convention and tradeshow producers that (are able to) work in an association environment are in demand.”

But how did association show managers’ average salaries rise so much in one year?

Hughes said there are a number of possible reasons, starting with the increased use of best practices in the event space – especially among larger associations that hold major events – because more information easily is available online.

“The expansion of the federal government has also driven more lobbying by associations, and often, tradeshow revenues pay for these efforts,” he added. “Another reason is that for-profits are quicker in terms of cutting costs and jobs; they are more bottom-line driven.”

With the recession in full force as 2009 begins, 2008 salary increases take on new meaning. In 2007, salaries increased by an average of 2.8 percent, with expectations for 2008 increases at 3.1 percent. But 2008 raises exceeded those expectations, as salaries increased an average of 3.6 percent. Hughes said much of this has to do with the fact that, even through this past summer, unemployment historically was low.

“Also, events are a lagging indicator, so it is not surprising that 2008 was a good year for event management salary increases,” he added. “Even with a slowdown for both associations and for-profits, top event management talent is still rather scarce and will command good pay packages from their organizations.”

The 2009 salary increase forecast isn’t as bright, but it’s not bleak either. Respondents said they planned to increase 2009 salaries an average of 2.9 percent.

It wasn’t just association show managements’ pay that increased. In 2008, the average value of other compensations, such as bonuses and perks, shot up, from $8,094 last year to $13,676. The year wasn’t as kind to for-profit organizers; their packages dropped to $13,838 from $19,318 in 2007.

“(It) may be that associations are using more incentive compensation plans tied to event performance than previously,” Hughes said. “In general, association shows are not as volatile in terms of growth than for-profits. They tend to not grow as fast, but they are more stable in a slowdown.”

And growth is an important factor in salaries. This year’s survey stated that exhibition managers with showfloor space of more than 200,000 net square feet earned an average of $104,278, while those with showfloors less than 200,000 net sq. ft. averaged $68,971.