Salary Survey

2011 Insights 2011 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%
decrease
Decreased
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 more 20 to 49 10 to 19 5 to 9 Fewer than 5 None
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 2011 22
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 2011 23
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 2011 24
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%
> 1,000 501 - 999 101 -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 2011 43
$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 2011 44
$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.