In this issue, the editors of Electronic Design once again
present the results of our annual salary and opinion
survey. Nearly 3000 of you answered our wide-ranging
questions and shared your insights. Based on that
research, this report provides a clear perspective on how
you and your colleagues are doing and where salaries
are headed.
As in our previous surveys, we took a close look at
how compensation (salaries, bonuses, and benefits) varies
across several parameters—including company size
and type, job functions and titles, geographic region,
and engineering experience, as well as age, gender, and
level of education.
This year we also included questions about retirement
planning—the age at which you plan to retire,
how those plans may have changed, how you plan to
spend your retirement years, the likelihood of accepting
another engineering job out of retirement, your experience
with financial advisors in planning for retirement,
your retirement sources of income, and your retirement
savings goals.
And with the presidential campaigns in full swing, we wanted
to know your views about the upcoming election, which party
best represents the engineering community, and your views on the
most critical issues facing the country today.
SALARY ISSUES
The average U.S. engineer now makes $106,271 in salary and
bonuses. Salaries in 2008 edged up 3.6%, while bonuses were
up 2.8% and stock option compensation grew 4.4%. Engineers
expected their total compensation (base salary, bonuses, stock
options, and other income sources) to grow 2.6% this year, but
average increases across the industry came in at 3.6%.
But the wealth isn’t being spread around equally. According
to our 2008 survey, barely 64% of engineering professionals saw
an increase in their paychecks this year, while 26% saw their
compensation remain the same. Only 60% of engineers feel
adequately compensated for the work they do—down slightly
from last year—and just 56% believe their pay package is equal to
or more competitive than what’s being offered by other employers
(again down slightly from a year ago).
Still, better than four out of five engineers are willing to promote
their chosen profession to students considering an engineering
career. “Aside from the intrinsic reward of exercising one’s intellect,
our country requires our young people to be competitive in
terms of education and ability in the global market,” commented one engineer. “I feel that this is the last area of economic dominance
the U.S. maintains and that it is vital for us to preserve it.”
Another engineer put it this way: “Design is rewarding, the salary
is decent, and it’s one of only a handful of university programs that
lead to a ‘real job.’”
2008 increases in specific job categories fared better, particularly
for those in management positions. Executives that typically take
part in our annual surveys usually range from heads of large corporations
to owners of small engineering firms. On average, tech
executives saw the biggest bump in income this year, pulling down
$134,771 in 2008—or 7.4% more than in 2007. Engineering
managers saw their pay stubs grow 2.1% in 2008 and now bring in
$127,315 annually. Engineers involved in design and development
average $102,376 in annual income, up 1.2% from a year ago.
Semiconductor houses lead all electronics industries in compensating
engineers (averaging $131,859), followed by computer
manufacturers ($121,319), medical electronics firms ($118,802),
software firms ($110,826), communications systems manufacturers
($109,981), avionics companies ($109,814), automotive
electronics companies ($107,594), and test & measurement organizations
($106,377).
Nearly half of our readers said that a headhunter or recruiter
had contacted them at some point during the past 12 months. So
it was surprising to learn that only 33% of survey respondents said
they believe their company is more focused on employee retention
this year—down from about 40% two years ago. “Companies
are treating engineers like furniture—totally replaceable and
cheaper from abroad,” mentioned one engineer. “They continue to
demand extra time for free since you are an at-will employee and
are replaceable.”
Two factors that are inextricably linked to higher wages are
company size and geographic region. As we’ve seen in our previous
surveys, larger companies tend to dish out bigger salaries,
bonuses, and raises. They’re also more generous when it comes to
non-cash rewards and benefits such as stock options, 401(k) plans,
pensions, patent awards, continuing education opportunities, and
health coverage.
According to the survey, geographic location, not surprisingly,
also plays a big role in income levels, For instance, locations
around Silicon Valley, the Pacific Northwest, and Boston saw
higher salary increases in 2008 than others. As a group, the Pacific
states (California, Washington, Oregon, Alaska, and Hawaii)
retained the top spot as the best place for engineers to earn a living
by averaging $124,757.
In the Mountain states (Arizona, Colorado, Montana, New
Mexico, Nevada, Idaho, Utah, and Wyoming), incomes averaged
$111,923. Following closely were the West South Central states
(Arkansas, Louisiana, Oklahoma and Texas) at $110,604 and New
England (Massachusetts, Connecticut, Maine, New Hampshire,
Vermont, and Rhode Island), where totals averaged $109,524.
Average Salaries By
Geographic Region Table
Average Salaries By Job Function Table
Average Salaries By Gender Table
Average Salaries
By Engineering Title Table
Average Salaries By Years
Of Engineering Experience Table
Average Salaries By Type
Of Design Work You Do Table
Average Salaries
By Size Of Company Table
Average Salaries
By Level Of Education Table
Average Salaries By Age Table
Average Salaries By Industry Table
YOUR RETIREMENT PLANS:
At Approximately What Age Will you Retire?
Is This the Same Age at Which you had Planned to Retire?
Which of the Following Options Best Represent
Your Plans for Retirement?
What is the Likelihood That you Would Accept
Another Engineering Job if it Were Offered to You?
Do you Have a Professional Financial Advisor
Helping You Plan Your Retirement?
What Source of Income Will Help Fund Your Retirement?
What is Your Retirement Savings Goal?
How You Think Your Compensation Compares
With What’s Being Offered by Other Employers
THE POLITICS OF ENGINEERING:
Which Political Party do you Belong to?
In Your View, Which Political Party Best Represents the Interests of the Engineering Community?
Continue on Page 2