Maybe the word isn�t all good, but our readers are somewhat hopeful that the recent bad times in the electronics industry are subsiding.
The current soft economy has left many people uncertain about whether or not the bad times are really over. Is this the end of downsizing? When will there be salary increases again? Will jobs continue to go overseas? Will the company still be viable in the coming years? Respondents to the 2004 EE-Evaluation Engineering Salary Survey pondered these questions and offered insight on what appears to have been a questionable past year for the electronics industry.
A total of 936 professionals provided information about pay raises, job security and satisfaction, education, job function, experience, promotions and overtime, and downsizing. Unfortunately for the third year in a row, we are the bearer of bad news. Median salary dropped to $73,000 this year compared to the stagnant median salary of $75,000 in both 2003 and 2002. Median salary increased in 2000 by 8.3% and in 2001 by 4.6%. In 2002 and 2003, there was a 0% change, and 2004 saw a decrease of 2.7%.
“I have not received a raise, nor am I expecting one any time soon,” said a New Jersey electronics engineer at a company that manufactures electronics test instruments. “As the cost of living marches upward, it is important for me to try to maintain the same standard of living for my family as provided in previous years. A cost of living increase is more important to me than a performance bonus,” he said.
According to the survey, most respondents are anticipating little or no raise in pay this year. A total of 16% of the respondents do not expect any salary increase in 2004. A less than 2% raise is forecasted by 10% of the readers, and 54% of the survey takers predict a 2% to 4% pay increase. As many as 32% of those surveyed have not received a salary increase in more than a year, and 41% said it has been between seven and 12 months since their last raise.
“Salary and job security are equally important,” said the New Jersey engineer. “A company must recognize it has a responsibility to its employees as well as making a profit. The success of a company is directly related to the people they employ and how well these people do their job.”
The survey showed that 35% of the respondents said they were very secure in their job, 50% secure, and 16% not secure. However, 51% of those surveyed said they do not feel as secure in their job this year as they did last year. “I think the huge number of technical jobs being shipped out of the country has resulted in a general feeling that no job is secure,” said the New Jersey engineer.
Some professionals believe job security is not a responsibility limited to the employer. “Since we are part of the global economy, it has been very difficult for a company to provide job security even though it is more important than salary itself,” said an engineer who works for a company that manufactures electronic products for the automotive industry.
“As a company is not able to provide job security, it is up to the individual employee to keep up with the latest technologies, application tools, methods, and procedures. I believe that we have to be responsible for our own job security rather than depend upon the company,” he said.
Who Answered the Survey?
The majority or 85% of the respondents keep up with the latest technologies, tools, methods, and procedures by attending seminars and training programs. The typical person who responded to the survey is an engineer with the job function of design and development who supervises few or no employees and works for a company that employs more than 1,000 workers with approximate annual sales of more than $50 million.
Respondents typically earned a bachelor�s degree, most in electrical engineering, and are men at the median age of 45. The majority of those who took the survey have worked in the electronics industry for 20 years or more and at their current job for three to nine years.
Figure 1. Median Salary by Education
Who Made the Money?
Education equals salary (Figure 1). When you compare median salary with education, respondents with a Ph.D. showed the highest median salary of $95,000, and M.B.A. recipients came in second at $90,000. Third ranked were respondents with an M.S.E.E. degree earning a median salary of $86,000. Those with other master�s degrees and a bachelor�s degree in electrical engineering displayed median salaries of $84,000 and $74,000, respectively.
Respondents in R&D made the highest median salary of $87,000 with corporate management jobs right below that mark bringing in $85,000 (Figure 2). Incoming inspection test and design and development engineering ranked third and fourth with $78,500 and $77,500, respectively.
| Primary Job Function | Median Salary |
| Component Engineering/Evaluation | $71,000 |
| Corporate Management | $85,000 |
| Design Development Engineering | $77,500 |
| Engineering/Lab Support | $63,000 |
| Field Service | $68,000 |
| Incoming Inspection Test | $78,500 |
| Manufacturing/Production Engineering | $68,000 |
| Production Test | $65,000 |
|
QC/QA/Reliability/Product Assurance |
$70,000 |
| R&D/Scientific | $87,000 |
| Standards | $71,000 |
Figure 2. Median Salary by Job Function
Do Region and Experience Bring in More Pay?
Where you live does make a difference in how much money you make (Figure 3). Respondents to the survey who live in the Pacific region of the United States receive the highest median salary of $80,000. The Southeast region is second with $73,500, and the Northeast is in third with $72,000. Both the Mountain and Central regions are lower than the overall median salary for the survey with $70,000 and $68,250, respectively.
Figure 3. Median Salary by Geographical Region
When you compare median salary with years of experience in the electronics industry, it generally showed that the more years you�ve worked, the better the pay (Figure 4). Those who have 25 to 29 years of experience received a median salary of $82,000 and workers in the industry 15 to 19 years $80,000. If you have 20 to 24 years of experience, you brought in a median salary of $78,000, and if you have worked more than 30 years, your pay was around $77,500.
| Years in Industry |
Median Salary |
Median Salary B.S.E.E. |
| More than 30 | $77,500 | $75,000 |
| 25 to 29 | $82,000 | $75,000 |
| 20 to 24 | $78,000 | $74,000 |
| 15 to 19 | $80,000 | $75,000 |
| 10 to 14 | $70,000 | $73,000 |
| 6 to 9 | $62,000 | $72,000 |
| 3 to 5 | $55,000 | $72,500 |
| Less than 3 | $60,000 | $72,000 |
Figure 4. Median Salary by Years in Industry
Is Job Satisfaction Attainable?
In the current working environment, is it possible to have job satisfaction without commensurate pay or job security? “I go to work to make money,” said Michael Wolf, a manufacturing and production engineer for Cell Robotics, a company that builds laser-based instruments for biological research and medical uses. However, Mr. Wolf said satisfaction does not come from the salary he receives but from interesting work and job recognition. “Salary just pays the bills,” he said.
A total of 32% of those who took the survey said they were very satisfied with their current job, and 54% said they were only satisfied. Just 13% of the respondents acknowledged that they were not satisfied with their jobs.
“Salary is not as important to my job effectiveness as it is to my happiness. I always give my employer my best effort, and it is not affected by salary. But my time off the job is directly affected by my income, and lack of resources for off-time pursuits does affect my overall happiness,” said Alex Riell, a systems engineer for Textron Marine and Land, a company that manufactures armored vehicles, air-cushion vehicles, and a range of small craft for the U.S. Coast Guard. “To maintain my productivity, I need to have the necessary tools to do my job, company-provided training, an equitable salary, and a comfortable and clean environment.”
Jim Horn recently adopted four children and said earning a good salary is directly related to his job satisfaction. “If I have to worry excessively about bills during work hours, that can�t be good for productivity,” said the senior electrical engineer at Wescam, a company that makes gyro-stabilized camera systems. “Being paid competitively reassures me that my employer does value my contributions.”
The numbers are similar when it comes to overall career satisfaction for those who took the survey. Results showed that 36% were very satisfied with their career, 56% satisfied, and 8% not satisfied.
Professional opportunity is most important to Aviva Starkman, an ASIC designer and BIST expert for Northrop Grumman, a government defense contractor. “I want to learn as much as I can. I want to become a better engineer and enjoy the challenges that the profession can offer,” he said.
“I derive satisfaction from learning new things, seeing a job to completion, and receiving acknowledgement from my superiors that they appreciate my work,” the designer explained. Mr. Starkman also noted that recognition does not always have to be monetary or a promotion but can be verbal feedback or certificates of acknowledgement.
When Will the Downsizing End?
Last year, the salary survey added questions about company downsizing. Many respondents had much to say about that topic. “My company downsized in 2003 and early 2004, and it scares the heck out of me,” said a field sales engineer from Ohio. “I work today to make my bosses happy so I am not the one on the hot seat. I may not agree with them, but in today�s standards, that does not make a lot of difference.”
A manufacturer of semiconductors and microwave and RF subsystems also experienced downsizing in the past year according to a company software design engineer. “We�ve cut about as much as we can and still move product,” he said. “The downsizing usually dampens the mood of the engineers for a while, but if you�re still working, it�s not as bad as it could be. I�ve lost a lot of friends through downsizing, and the choices for layoffs seem capricious and arbitrary but management must have their reasons.”
A total of 46% of the survey�s respondents said engineers were laid off at their company in 2003. However, only 22% of those surveyed said they expected further downsizing in 2004.
“Industry-wise, I expect that most of the cuts have been made,” said David Crandall, a corporate manager at AZ Technology. The company performs engineering services for NASA, the Department of Defense, and government contractors. “We cannot cut much more without changing our business mix.”
Don Ehlers, manager of manufacturing at Teledyne Electronics Technologies, currently is experiencing downsizing at his company. “It is affecting the engineering department but to a lesser degree than other departments,” he said. Teledyne is a contract manufacturer that services the military and medical industries.
“Several people were laid off temporarily due to a slow work schedule but are expected to be resuming work soon,” said Patrick Harris, an EMC test engineer at ManTech International, a company that performs environmental testing and integration of spacecraft and spacecraft components for NASA and other customers. “But, it has affected the morale in all the groups,” he added.
Barry Baumgartner, an electrical engineer at Siemens Medical Solutions, said 9% of the employees at his company were downsized, and his engineering group lost 50% of its staff in 2001. “This definitely increased the amount of work for the remaining staff. As a result, we have been forced to work smarter,” he said. “Recently, business has taken an upswing, and we are hiring in some areas. I don�t think most people are nearly as concerned about getting laid off as they were a year or two ago.”
Is the Future Bright?
The state of business at Mr. Baumgartner�s company may predict a better future for most in the electronics industry. Economists today seem to be forecasting a healthier business environment more often than not. But nothing is certain, and EE readers must continue to be mindful of economic conditions not only at their companies, but also around the world.
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April 2004