DN_CompleteFnl_Salary_Survey71411

Salary Survey 2011 Insights2011 Insights An email survey was sent to subscribers of Design News during the month of June 2011. Research Results, an independent research firm, tabulated the completed survey data. The survey evaluated compensation as well as job satisfaction, including a look at the following areas: • Current salary and bonus and how that compares to a year ago • Length of employment • Engineering disciplines • Level of job stress compared to previous year • Reasons for job stress • Impact of economy • Level of supervisory and/or budgetary responsibility compared to previous year Methodology 2 • Level of supervisory and/or budgetary responsibility compared to previous year • Average work hours weekly • Level of satisfaction as a design engineer • Reasons for job satisfaction and dissatisfaction • Challenges of job • Size of company • Company’s major product line Results are based on 1,513 usable replies. At a 95% confidence level, results are accurate and projectable within a + or – 2.5% margin of error. Interpret base sizes of <30 with caution. June 2011 The Design Engineer Average Salary: $93,465 Average # of years in current position: 9 years 3 Average Bonus: $9,440 Average # of years as an engineer : 18 years Average # of years with present employer: 13 years Average hours worked per week: 46 Education: Degree in engineering, 75% Average Age: 49 June 2011 Section I Salary and Compensation 4 June 2011 12% 14% 12% 11% 6% 9% $90,000 - $99,999 $80,000 - $89,999 $70,000 - $79,000 $60,000 - $69,999 $50,000 - $59,999 $50,000 or less What is your current base annual salary for 2011? (not including bonus, commissions, etc.) 5 5% 7% 6% 7% 11% 12% $150,000 or more $130,000 - $149,000 $120,000 - $129,000 $110,000 - $119,999 $100,000 - $109,999 $90,000 - $99,999 Average Salary: $93,465 Median Salary: $88,000 June 2011 How does your base annual salary compare with 2010? Increased 65% Stayed the 4% 3% 8% 44% 5% Over 10% 8-10% increase 5-7% increase 2-4% increase Less than 2% increase If your base salary changed over the past 12 months, by how much? Average Salary Increase: 5% Median Salary Increase: 3% 6 Decreased 4% Stayed the same 31% 4% Over 10% increase 6% 1% 0% 0% Over 10% decrease 8-10% decrease 5-7% decrease Less than 4% decrease Average Salary Decrease: 27% Median Salary Decrease: 15% : June 2011 How much will you earn in bonuses, commissions, etc.? (not including base salary in 2011) 3% 11% 8% 8% Less than $1,000 $1,000-$2,999 $3,000-$4,999 $5,000-$6,999 $7,000-$8,999 Average Expected Bonus: $9,440 7 5% 20% 4% 41% $7,000-$8,999 $9,000-$49,999 Over $50,000 No bonus/commission … June 2011 Increased 18% Stayed the same 52% 8% 11% 22% 8% Over 10% 8-10% increase 5-7% increase 2-4% increase Less than 2% increase How does your bonus, commission, etc. plan compare with 2010? If your bonus, commission, etc. plan increased/ decreased compared to 2010, how much? Average Increase in bonus: 40% Median Increase in bonus: 15% 8 68% 9% 12% 8% 2% Over 10% decrease 8-10% decrease 5-7% decrease 2-4% decrease Less than 2% decreaseDecreased 10% same 71% 52% Over 10% increase Average Decrease in bonus: 51% Median Decrease in bonus: 50% June 2011 Section II Careers in Engineering 9 June 2011 How long have you been an engineer? Which is your primary engineering discipline? (i.e. mechanical or electrical design) 9% 8% Less than 5 years 6 - 10 years Average years: 18 % of respondents Mechanical engineering 37% Electrical/electronics engineering 24% Manufacturing engineering 11% Electromechanical engineering 5% 10 13% 14% 56% 11 - 15 years 16 - 20 years Over 20 years Electromechanical engineering 5% Software engineering 4% Controls engineering 4% Materials engineering 2% Other 11% June 2011 10 + years Less than 3 years 14% How many years have you worked in your present position? How many years have you worked in your present company? Average years: 9 12% 17% 44% 1% 15-19 years 10-14 years 1-9 years Less than 1 year 11 10 + years 53% 6-10 years 17% 3-5 years 16% 14% 3% 6% 7% 10% 12% 35+ years 30-34 years 25-29 years 20-24 years 15-19 years Average years: 13 June 2011 In an average week, how many hours do you work? How has the number of hours you work each week changed over the past year? Work more hours 23% Work less Same # 27% 45% 5% 45-49 40-44 Under 40 hours 12 Work less hours 10% Same # of hours 67% 4% 5% 14% 60 hours or more 55-59 50-54 Average hours: 46 June 2011 Do you have supervisory and/or budget responsibility? If you are supervising people, how has this changed during the past 2 years? Both Supervisory/ Budget 25% Budgetary Only 100% Less people 18% Same 48% 13 Only 8% Only Supervisory 16% Neither 52% 0% 50% Same 48% More people 34% June 2011 What is the number of employees that you are supervising today and what is the number of employees you supervised two years ago in 2009? 30% 26% 39% 43% Number of employees supervised in 2011 Number of employees supervised in 2009 Average number of employees supervised in 2011: 26 Average number of employees supervised in 2009: 11 14 3% 9% 13% 2% 3% 7% 14% 12% 50 or more20 to 4910 to 195 to 9Fewer than 5None June 2011 Please rate your level of agreement with the statements below pertaining to your role as an engineer. 68% 65% 47% 18% 23% 34% 14% 12% 19% Appreciated and respected Role of the engineer is a respected profession Underpaid and overworked Strongly Agree/Agree Neutral Disagree/Strongly Disagree 15 45% 40% 26% 30% 28% 30% Fully using engineering skills Role that is too often outsourced to China and/or other countries June 2011 Section III Job Satisfaction 16 June 2011 In general, how satisfied are you with your career in design engineering? Extremely Satisfied 10% Very Satisfied 42% Not Very Satisfied 8% Not At All Satisfied 2% 52% are Extremely/Very Satisfied with their design engineering career“Motivating students to go into engineering” “Cool product line” “Impact of my work on the world” 17 42% Somewhat Satisfied 38% “Designs save lives.” “Opportunity to develop meaningful products” “Build stuff in a lab, not just sitting in a cubicle all day” “Once in awhile I get PAID to put on waders and mess about in a creek!” June 2011 What factors contribute to being satisfied with your job? What factors greatly impact on your dissatisfaction with your current job? % of respondents Problem solving 75% Technical challenges 71% Opportunity to be creative 65% Salary 62% Benefits 56% Location 55% Opportunity for new challenges 54% Relationships with colleagues 54% Variety of projects 54% Job security 54% % of respondents Company politics 76% Salary 70% No room for advancement 68% No recognition 64% Stress level too high 55% Workload 52% Not challenging enough 36% Lack of benefits 36% Lack of adequate technology 34% 18 Base: Extremely/Somewhat Satisfied with career in design engineering Job security 54% Company’s financial stability 43% Recognition from management 43% Recognition from peers 42% Relationship with boss 36% Advancement opportunities 31% Company size 27% Relationships with subordinates 25% Opportunity for job training 22% Travel 20% Managing people 12% Other 3% Lack of adequate technology 34% Company unstable 32% Outsourcing 29% Colleagues 22% Location 15% Other 16% Base: Not Very/Not At All Satisfied with career in design engineering June 2011 % of respondents Workload 51% Balancing work with home/ personal life 43% Keeping up with technology 39% Lack of career development 30% Working with outdated equip./technology 29% Need to learn more skill sets 25% Company downsizing 22% Company stability 19% Global design teams 16% Work conditions 14% Poor relationships with co-workers 12% Other 8% Extremely Challenging 9% Very Challenging 38% Not Very Challenging 8% Not At All Challenging 1% How challenging is your job? What factors do you find most challenging? 47% Extremely/Very Challenging 19 46% 41% 13% More Same amount Less Somewhat Challenging 43% How stressful is your job compared to two years ago? Base: Find job Extremely/Very/Somewhat Challenging June 2011 Extremely Concerned 8% Very Concerned 17% Not Very Concerned 28% Not At All Concerned 8% How concerned or secure do you feel about your job in the current economic climate? 25% are Extremely/Very Concerned with the security of their position “Company is replacing US engineers with Best Cost Country engineers.” “US manufacturers do not need US workers, it’s cheaper to build it in China.” 20 Somewhat Concerned 40% “Start-up company, no job security, but more challenge!” “The company is dependent on government contracts that may be cancelled.” “Company history of stability. I do my job well. There is a history of more work than we have time for.” June 2011 Why do you feel this way about your job security? Reasons are a function of: % of respondents Concerned (Net) 56% Concern is a function of: Company 32% Economy 15% Individual’s situation 10% Industry 7% Politics 3% 21 Unconcerned (Net) 44% Lack of concern a function of: Company 22% Individual’s situation 21% Industry 11% Economy 3% Politics 0% June 2011 28% Layoffs/downsize d during the last 6 months Has your company experienced any of the following during the last 12 months? What percent of your engineering workforce was reduced? Average % of workforce reduction: 21% 70% 80% 90% 100% 30 - 39% 5% 40 - 59% 11% 60% + 7% June 201122 18% 45% 8% Hiring freeze Hiring/Adding personnel Other 0% 10% 20% 30% 40% 50% 60% 70% 20 – 29% 16% 1 – 9% 35% 10 – 19% 26% 28% Layoffs/downsize d during the last 6 months Has your company experienced any of the following during the last 12 months? What percent of your engineering workforce was increased? Average % of workforce increase: 15% 70% 80% 90% 100% 30 - 39% 3% 40 - 59% 3% 60% + 4% June 201123 18% 45% 8% Hiring freeze Hiring/Adding personnel Other 0% 10% 20% 30% 40% 50% 60% 70% 20 – 29% 11% 1 – 9% 50% 10 – 19% 29% How did this downsizing affect your position? How did your responsibilities change? Unemployed 7% Increased workload/ responsibility with less time/ pay 38% • “More work/responsibility without salary increase/bonus. Increased number of hours worked after 40.” • “Fewer new projects with less budget and company is looking at more productivity in cost reduction through VAVE.” • “More work from others no longer with the company, [is] now my responsibility.” • “Responsibilities increased, stress increased. Salary frozen for 1 year. And am constantly being told to work more hours June 201124 No change 33% Other changes 22% • “Two-thirds of engineering has changed. More a matter of turnover than a change in the numbers.” • “Scheduling factory activity is more challenging with fewer workers but the same published load times.” • “I'M THE ONLY ONE LEFT.” • “I had to soak up as much knowledge from outgoing engineers as possible so as not to lose corporate knowledge.” • “I lost several engineers that worked for me on one of my projects. One was laid off and two left the company on their own to find better opportunities.” for 1 year. And am constantly being told to work more hours for no money.” Which of the following have you experienced in the last 12 months? Top Responses 52% 36% 33% 31% Increase in pay Reduction in benefits package Contacted by recruiters No raise June 2011 25 25% 17% 8% 6% No bonus Increase/added bonus Asked to take a pay cut Increased time off How actively are you seeking another job? Always open to better opportunities 33%Not actively seeking 25% 26 Happy where I am 19% Passively 14% Actively 9% June 2011 Yes 78% Would you recommend this field to your son, daughter or to a friend? 27 No 22% June 2011 Section IV Demographics 28 June 2011 How many people does your company employ and how many work as engineers? 48% 52% Number of Employees Number of Engineers Average number of people employed at a company: 732 Average number of engineers employed at a company: 449 29 6% 22%23% 26% 6% 15% > 1,000501 - 999101 -500< 100 June 2011 What is your company’s major product line? % of respondents Aerospace 11% Automotive 10% Medical 8% Defense Systems 7% Industrial Controls 6% Communication Systems 4% Instruments/Test Equipment 4% Electronic Components 4% 30 Consumer Electronics 3% Contract Manufacturing 3% Computers/Peripherals 3% Semiconductors 2% Machine Tools 2% Other 33% June 2011 In which region do you work? (Average salaries for each region are shown) Pacific NW (WA,OR) Midwest (MI, OH, KY, TN, IN, WI, IL, IA, MO, ND, SD, NE, KS) Mid-Atlantic (NY, PA, NJ, DE, MD, WV, VA, D.C.) New England (ME, NH, VT, MA, RI, CT) Southwest (CA, NV, AZ) Mountain (MT, ID, UT, WY, CO, NM) 35% $86,406 5% $109,853 13% 4% $94,422 13% 7% $96,393 31 South (AL, MS, AR, LA, OK, TX) Southeast (NC, SC, GA, FL) 8% $91,061 13% $107,407 8% $86,076 $97,904 June 2011 45 - 54 38% 55 - 64 26% 61% 21% 20% 7% 7% Bachelor's degree in engineering Two-year Associate's degree in technical field Master's degree in engineering Master's in business administration Bachelor's in non-engineering field Please indicate your educational background. What is your age group? Average age: 49 32 18 - 25 1% 26 - 34 9% 35 - 44 21% 65+ 5% 3% 3% 2% 7% 6% field Advanced degree in non- engineering field Ph.D in engineering Current student Other No college degree June 2011 Section V Salary Performance vs. Metrics 33 June 2011 $7,121 $9,491 $6,857 $10,781 Bonus, commission, etc. Base salary Company Size (Number of Employees) Total Average Compensation (Salary + Bonus) 34 $79,473 $85,020 $89,769 $102,794 <100 101-500 501-999 1,000+ June 2011 $8,083 $9,666 $10,237 $9,511 $6,087 Bonus, commission, etc. Base salary Age Total Average Compensation (Salary + Bonus) 35 $53,836 $89,335 $91,388 $95,452 $94,971 $94,627 $2,908 18-25** 26-34 35-44 45-54 55-64 65+ **Small base size, interpret with caution June 2011 $10,121 $9,918 $7,588 $8,396 Base salary Bonus, commission, etc. Level of Education Total Average Compensation (Salary + Bonus) 36 $109,350 $96,091 $84,386 $79,487 Master's/PhD degree in engineering Bachelor's degree in engineering Bachelor's or Advanced degree in non- engr/Master's in BA Two-year Associate's degree in a technical field June 2011 $2,636 $8,458 $14,170 $13,638 Bonus, commission, etc. Base salary Number of Hours Worked Total Average Compensation (Salary + Bonus) 37 $78,756 $91,218 $97,901 $133,121 $2,636 <40 40-49 50-59 60+ June 2011 $9,002 $7,418 $10,589 $9,659 $8,300 $9,713 $14,126 Bonus, commission, etc. Base salary Number of Years at Present Job Total Average Compensation (Salary + Bonus) 38 $92,113 $89,475 $87,702 $90,415 $104,296 $98,462 $105,598 <5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30+ June 2011 $12,145 $6,815 $5,597 Bonus, commission, etc. Base salary Satisfaction with Job Total Average Compensation (Salary + Bonus) 39 $100,810 $87,316 $79,169 Extremely/Very Satisfied Somewhat Satisfied Not Very/Not at All Satisfied June 2011 $6,201 $7,772 $8,708 $8,401 $10,639 Bonus, commission, etc. Base salary Number of Years of Experience as an Engineer Total Average Compensation (Salary + Bonus) 40 $63,172 $86,663 $91,403 $88,048 $101,202 $6,201 <5 6 to 10 11 to 15 16 to 20 > 20 June 2011 $102,143 $103,416 $98,244 $11,286 $8,339 $9,571 Controls Materials Software Base Salary Bonus, commission, etc. Job Discipline: Engineering Total Average Compensation (Salary + Bonus) 41 $96,369 $94,843 $80,424 $82,907 $10,663 $8,677 $9,737 $6,745 Electrical/Electronics Mechanical Manufacturing Electromechanical June 2011 $107,407 $109,853 $96,393 $97,904 $15,868 $9,326 $10,833 $7,315 Southwest Mountain New England Mid-Atlantic Base Salary Bonus, commission, etc. Region Total Average Compensation (Salary + Bonus) 42 $97,904 $94,422 $91,061 $86,076 $86,406 $7,315 $8,273 $7,637 $9,412 $8,811 Mid-Atlantic Pacific NW South Southeast Midwest June 2011 $105,051 $104,990 $104,843 $28,145 $10,044 $8,940 Semiconductor (N=36) Industrial Controls (N=81) Defense System (N=103) Industry Total Average Compensation (Salary + Bonus) June 201143 $100,208 $103,569 $99,128 $94,207 $13,407 $6,663 $9,553 $13,325 Communication System (N=58) Aerospace (N=166) Computer Peripheral (N=46) Instrument/Test Equip (N=52) Base Salary Bonus, commission, etc. $95,236 $94,407 $86,327 $11,075 $7,307 $9,378 Medical (N=117) Consumer Electronics (N=43) Automotive (N=139) Industry, cont’d Total Average Compensation (Salary + Bonus) June 201144 $81,866 $67,291 $72,068 $4,188 $7,566 $2,707 Electronic/Components (N=53) Contract Mfg (N=49) Machine Tools (N=35) Base Salary Bonus, commission, etc.