Electronic Design has once again surveyed its audience of design engineers and engineering managers and presents the results here. As in past surveys, we collected information from more than 2500 engineers representing a cross-section of industries, job functions, and company sizes.
Information like this is especially important during times of uncertainty. Just ask a pilot flying through a fog—or an investor trying to make a profit in today’s volatile markets.
The same holds true for engineering professionals. With all the uncertainty in the industry and the employment outlook, it’s more important than ever to get solid information about current salary and compensation trends. That way, you can make informed career decisions and get an accurate perspective on your present job situation.
That’s why We also expanded our survey this year to include questions about component shortages, so we could assess the extent of the shortage problem in different corners of the industry—as well as which particular components are especially problematic, the effect that shortages are having on your company’s ability to launch new products, and whether the situation is improving or getting worse.
In addition, we asked you about your experience with counterfeit parts, including where they were purchased, how the problem was discovered, and any safeguards your organization has put in place to prevent similar incidents.
Finally, for the first time we extended our survey across the Atlantic to include our readers in leading design centers in Europe (see “Engineering Employment—The European View”). We think you’ll find some of the responses of your European colleagues fascinating.
We thank everyone around the globe who participated in this year’s survey. We think this is our most ambitious survey yet, and we hope the results are helpful to you.
Back from the bottom
The news this year on compensation isn’t very good, but at least it’s not very bad. The pay increases that electronic OEMs are doling out to their engineering employees are paltry, averaging just 1.2%. That’s certainly a lot better than the 3.6% decrease that the average engineer saw last year.
But with persistent unemployment, HR managers seem to believe they can pay new hires less than those they laid off during the recession. Of course, many companies expect to end this year better off than they were in 2009. Yet they still tend to budget salaries based on last year’s economic conditions, rather than on the current year’s promise.
If stock options were the sign of the times 10 years ago, the salary freeze appears to be emblematic of today’s economy. Employers are being tightfisted with base salaries for engineers, because they believe they can be. Like housing, engineering is a buyer’s market.
What little gains in total wages occurred this year were often the result of increases in stock options, bonuses, and other sources of income. Bonuses made a comeback in 2010, representing 3% of the average design & development engineer’s compensation and 4% of take-home pay for engineering managers and executives. In fact, since salaries have flatlined, compensation other than base pay now accounts for 8% to 9% of the average engineering professional’s paycheck.
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