25424-DN 2010 Salary Survey

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April 2010

Conducted by

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An email survey was sent to subscribers ofDesign News during the month of April, 2010. Results of the

study were tabulated by Research Results, an independent research firm.

The survey evaluated compensation as well as job satisfaction:

The following areas were studied:

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

Methodology

April 20102

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

Companys major product line

Results are based on 1,672 usable replies. At a 95% confidence level, results are accurate and projectable

within a + or 2.8% margin of error.

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The Design Engineer

Average Salary:

$89,597

Average # of years incurrent position:

9 years

April 20103

Average Bonus:$9,025

Average # of years asan engineer :

18 years

Average # of years withpresent employer:

12 years

Average hours work perweek:

46

Education:

Degree in engineering, 75%Average Age:

49

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Section I Salary and Compensation

April 20104

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15%

13%

11%

9%

8%

-

$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 2010?(not including bonus, commissions, etc.)

April 20105

4%

5%

6%

7%

11%

$150,000 or more

$130,000 - $149,000

$120,000 - $129,000

$110,000 - $119,999

$100,000 - $109,999

, ,

Average Salary: $89,597

Median Salary: $85,000

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How does your base annual salary

compare with 2009?

Increased

40%

2%

6%

28%

4%

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: 4%

Median Salary Increase: 3%

April 20106

Decreased

9%

Stayed thesame

51%

1%increase

4%

2%

1%

1%

Over 10%

decrease

8-10% decrease

5-7% decrease

Less than 4%

decrease

Average Salary Decrease: 24%

Median Salary Decrease: 10%

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How much will you earn in bonuses, commissions, etc.?(not including base salary in 2010)

4%

16%

4%

7%

Over $50,000

$9,000 - $49,999

$7,000 - $8,999

$5,000 - $6,999

Average Expected Bonus: $9,025

April 20107

5%

10%

2%

51%

$3,000 - $4,999

$1,000 - $2,999

Less than $1,000

No

bonus/commission

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Sta ed the

Increased

13%

13%

12%

16%

7%

Over 10%

8-10% increase

5-7% increase

2-4% increase

Less than 2%

increase

How does your bonus, commission, etc.

plan compare with 2009?

If your bonus, commission, etc. plan increased/

decreased compared to 2009, how much?

Average Increase in bonus: 36%

Median Increase in bonus: 14%

April 20108

74%

8%

7%

8%

3%

Over 10%

decrease

8-10% decrease

5-7% decrease

2-4% decrease

Less than 2%

decrease

same72% Decreased

15%

51%increase

Average Decrease in bonus: 51%

Median Decrease in bonus: 50%

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Section II Careers in Engineering

April 20109

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How long have you been an engineer? Which is your primary engineering discipline?(i.e. mechanical or electrical design)

7%

9%

Less than 5

years

6 - 10 years

Average years: 18 % of respondents

Mechanical engineering 38%

Electrical/electronics engineering 26%

Manufacturing engineering 10%

April 201010

13%

14%

58%

11 - 15 years

16 - 20 years

Over 20 years

Software engineering 4%

Controls engineering 4%

Materials engineering 2%

Other 9%

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Less than 3years

16%

How many years have you worked in

your present position?

How many years have you worked in

your present company?

Average years: 9

16%

48%

1%

-

10-14 years

1-9 years

Less than 1 year

April 201011

5-10 years

19%

- years

14%

51%

4%

5%

6%

9%

35+ years

30-34 years

25-29 years

20-24 years

Average years: 12

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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

hours22%

28%

44%

6%

45-49

40-44

Under 40 hours

April 201012

Work less

hours

12%

of hours66%

5%

6%

12%

60 hours or more

55-59

50-54

Average hours: 46

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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

28%

100%

Less people 32%

April 201013

Neither

49%Only

supervisory15%

BudgetaryOnly

8%

0%

50%

More people 23%

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What is the number of employees that you are supervising today

and what is the number of employees you supervised two years ago?

40%

52%

Number of employees supervised in 2010

Number of employees supervised 2 yearsago

Average number of employees

supervised in 2010: 15

Average number of employees

supervised 2 years ago: 11

April 201014

2%

6%

13%

3%1%

8%

16%

10%

50 or more20 to 4910 to 195 to 9Fewer than 5None

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Please rate your level of agreement with the statements below

pertaining to your role as an engineer.

63%

59%

49%

19%

24%

33%

18%

17%

18%

Appreciated and respected

Role of the engineer is a respected

profession

Underpaid and overworked

Strongly A gree/ Agree Neutral Disagr ee/ Strongly Disagr ee

April 201015

44%

44%

26%

31%

30%

25%

Fully using engineering skills

Role that is too often outsourced to

China and/or other contries

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Section III Job Satisfaction

April 201016

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In general, how satisfied are you with your career in

design engineering?

Very Satisfied

41%

Extremely

Satisfied

10%

Not VerySatisfied

11%

Not At All

Satisfied

2%

51% are Extremely/Verysatisfied with their design

engineering career

Freedom to desi n

bad management blaming

engineering for badmanagement decisions

competing with offshore

manufacturers

politics, politics, politics

I feel well respected in a fieldthat is in demand (medical)

April 201017

Somewhat

Satisfied

36%Sense of accomplishment

Making a contribution

Contribution to the future of energy production

We keep outsourcing jobswithout recognizing thevalue of the employees welet go compared to themercenary attitude of

consultants

The industry is so volatile and the economy has not fully recovered fromthe recession yet, so another dip could mean more job losses

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What factors contribute to beingsatisfied with your job?

What factors greatly impact on yourdissatisfaction with your current job?

% of respondents

Technical challenges 75%

Problem solving 75%

Opportunity to be creative 67%

Salary 57%

Location 56%

Opportunity for new challenges 56%

Relationships with colleagues 55%

Benefits 54%

Variety of projects 54%

% of respondents

Company politics 73%

No room for advancement 68%

No recognition 61%

Salary 59%

Stress level too high 53%

Workload 50%

Not challenging enough 37%

Outsourcing 37%

Company unstable 33%

April 201018

Base: Extremely/Somewhat satisfied with

career in design engineering

Recognition from peers 44%Companys financial stability 43%

Recognition from management 41%

Relationship with boss 35%

Company size 28%

Relationships with subordinates 28%

Advancement opportunities 28%

Opportunity for job training 21%

Travel 18%

Managing people 12%

Other 3%

ac o ene s

Lack of adequate technology 29%Colleagues 21%

Location 12%

Other 14%

Base: Not Very/Not At All satisfied with career

in design engineering

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% of respondents

Workload 48%

Balancing work with home/ personal life 42%

Keeping up with technology 38%

Company downsizing 32%

Lack of career development 29%

Working with outdated equip./technology 28%

Company stability 26%

Need to learn more skill sets 24%

Global design teams 17%

Work conditions 16%

Poor relationships with co-workers 10%

Other 10%

Very

Challenging

39%

Not Very

Challenging

10%

Not At All

Challenging

2%

Extremely

Challenging8%

How challenging is your job?

What factors do you find most challenging?

47% Extremely/VeryChallenging

April 201019

51%

40%

9%

More Same amount Less

Somewhat

Challenging

41%

How stressful is your job compared to two years ago?

Base: Find job Extremely/Very/Somewhat challenging

More responsibility. More stress. The work atmosphere is:

If you cant do your job the way we want it, we will get

someone else and you can start looking for another one,

that is if you can find one.

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Not Very

Concerned

23%

Not At All

Concerned

6% Extremely

Concerned

11%

How concerned or secure do you feel about your job

in the current economic climate?

29% are Extremely/VeryConcerned with the security

of their position

The economy is not recovering and there are less and less engineeringopportunities due to outsourcing and lack of manufacturing jobs

Management attitudetowards engineering, theyseem to think they can assign

work with less thanappropriate time andresources and it will magicallyhappen. Lack of companyrespect and integrity.

April 201020

Very Concerned

18%

Somewhat

Concerned

42%Engineering is the one thing that helps drive thiscompany forward. We have enough projects to keepbusy during slow periods.

The company has had to shed jobs recently, and this happenedbecause there have been delays in contracts and some contractcancellations.

The religion of outsourcing is afalse one and is impactingeverything in our world fromcompetitiveness to ability toproduce. Outsourcing has killedmany jobs.

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Why do you feel this way about your job security?

Show More Concern Over Job SecurityThe Economy (N=106)

No company or position seems to be completely safe during the recession, and global competition continues to create pressure.

The economy is not picking up fast enough, which affects the bottom end of the company and therefore my chances of growth.

Retention of personnel is always based on available funding and funding in very insecure in the present economy.

I work for a small company, in a down economy it is very easy for a small company to go under.

Outsourcing (N=101) The global economy puts pressure on even the most stable companies/organizations. Competing with growing economies like

those of China and India means Americans standard of living (unsustainable in many cases) will diminish even as others rise.

Outsourcing our work to India or China, even though they do substandard work, but its cheap. Governmental regulations that arepushing business offshore.

Outsourcing to India and China is eliminating engineering opportunities within the U.S.

April 201021

y company s constant y mov ng o s overseas w t not ce. ta assum ng respons ty overseas ac a equate o s sand training and often fails at simple tasks, which calls for extraordinary efforts on our part. Additional effort is not appreciated nor

seen as a value.

Company Downsizing/Layoffs (N=46)

Due to rising cost of goods and materials, companies will downsize to reduce their expenses.

30% layoffs in this company; from 2,000 to 450 in 5 years.

Constant layoffs and outsourcing. Very few other opportunities to move into.

Government/Politics (N=33)

Current administration and congressional policies will severely undermine U.S. economic stability.

Government is spending money they dont have. Probable increased taxes and inflation.

Government needs to bail out private industry and stop allowing outsourcing of our engineering jobs.

Shift in the political philosophy from capitalistic republic to a socialist republic on the part of the U.S. Government.

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Why do you feel this way about your job security?

Show Less Concern Over Job Security

Companies are Stable (N=44)

My company has weathered the current financial situation quite well. Our business has continued to prosper. EPA regulationsinsure continued requirements for product development.

Business is good again. Even during downtime last year, upper management knew they had to hang on to the talented people theyhad, or suffer loss.

Our company seems to be in a good place financially and is in a market sector that is less affected my market downturns.

Business opportunities are on the upswing. Roll is key part of value offering we make to our customers. Experience is valued.

Unique/Experienced Skill Set (N=30)

My specialty is in high demand and my experience and abilities are understood to be key to the companys success.

I have a unique knowledge of a niche product.

April 201022

I have knowledge and mentoring skills that are needed to sustain the companys product.

Retired/Retiring Soon (N=18)

I will retire if job status changes negatively.

I can retire any time with 35+ years of service. Still a high need for materials engineers.

Some older design engineers are close to retirement which means more opportunities for younger engineers.

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41%

Layoffs/downsized

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%

80%

90%

100%

30 - 39% 8%

40 - 59% 11%

60% + 7%

April 201023

25%

23%

11%

Hiring freeze

Hiring/Adding

personnel

Other

0%

10%

20%

30%

40%

50%

60%

70%

20 29% 19%

1 9% 26%

10 19% 29%

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How did this downsizing affect your position?

How did your responsibilities change?

Unemployed

7%

Increased

workload/

responsibility

with less time/

pay

38%

Our group lost a larger percentage and we now have more

work with fewer people.

More work from less qualified people and expected to do it

in the same amount of time. Details handed off from those

leaving always need lots of information than what was in

the file.

More work and travel for the same compensation. I worry

that I will be the next on the chopping block.

I now have the work of two former employees; I have to

triage my work to determine what gets done the details

get overlooked because I dont have the time!

I am doing less of the engineering work I want to do and

more of the simple tasks.

April 201024

Other changes

22%

No change

33%

Lack of growth opportunities within the company.

Demoted from a supervisor roll to project engineering.

Projects delayed. Morale dropped for a time.

For me it had a positive effect. I was promoted.

Work was transitioned over to China and my

responsibilities were reduced. Less work = less people = more job security concern.

More focus on current products and less on advanced

design.

Insufficient staff and resources to properly support my

projects, leading to schedule delays, cut corners, and product

performance issues.

,

cohesion and efficiency have improved.

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Which of the following have you

experienced in the last 12 months?

69%

43%

40%

No raise in 2009

Reduction in benefits

package

No bonus

Over the next 12-18 months, will your

company be..?

Outsource

Layoff designengineers

9%

Other

7%

Keep the same

# of design

engineers

April 201025

21%

18%

8%

12%

Asked to take a pay cut

Increased time off

Laid off

Other

design work

14%

Hire more

design

engineers

22%

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How actively are you seeking another job?

64%

33%

28%

Word of

mouth/Peers/Colleagues

Job Search websites

Contact with peers

through social

Which approach(es) are you taking to

look for a new job?

Passively

19%

I'm always open

to better

opportunities

Actively

10%

April 201026

26%

15%

5%

16%

networ ng s tes

Searchfirms/Headhunters

Contacting

vendors/suppliers

Attend job fairs

Other

I'm happy

where I am

28%

LinkedIn (N=232)

Facebook (N=15)

N= number of mentions

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Yes

70%

Would you recommend this field to your son, daughter or to a friend?

April 201027

No

30%

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Section IV Demographics

April 201028

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How many people does your company employ and how

many work as engineers?

44%

55%

Number of Employees

Number of Engineers

Average number of people

employed at a company: 690

Average number of engineers

employed at a company: 393

April 201029

7%

25%24% 21%

6%

17%

> 1,000501 - 999101 -500< 100

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What is your companys major product line?

% of respondents

Automotive 9%

Medical 9%

Aerospace 9%

Defense Systems 6%

Industrial Controls 6%

Communication Systems 5%

April 201030

Consumer Electronics 3%Contract Manufacturing 3%

Semiconductors 3%

Computers/Peripherals 3%

Electronic Components 2%

Machine Tools 2%

Other 36%

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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)

36%

$82,740

4%

$96,524

3%

$82,593

14%

7%

$98,590

April 201031

South

(AL, MS, AR, LA, OK, TX)Southeast

(NC, SC, GA, FL)9%

$96,204

$106,756

7%

$86,746

$91,403

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55 - 64

28%

45 - 54

37%

61%

21%

17%

7%

6%

Bachelors degree in engineering

Masters degree in engineering

Two-year Associates degree intechincal field

Masters in business

administration

Bachelors in non-engineering field

Please indicate your educational background. What is your age group?

Average age: 49

April 201032

65+

5%18 - 25

1%

26 - 34

8%

35 - 44

21%

4%

3%

2%

6%

6%

Advanced degree in non-

engineering field

Ph.D in engineering

Current student

Other

No college degree

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Section V Salary Performance vs. Metrics

April 201033

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$7,428$6,410 $10,324

$11,164

Bonus, commission, etc.

Base salary

Company Size (Number of Employees)

Total Average Compensation(Salary + Bonus)

April 201034

$75,509$82,962 $82,503

$101,688

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$6,986

$11,876 $8,465$6,617


Base salary

Age


April 201035

$55,841

$72,707$82,807

$92,807 $96,679 $90,571

$5,820

$1,485

18-25** 26-34 35-44 45-54 55-64 65+

**Small base size, interpret with caution

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$15,525

$8,502$7,142


Base salary

Level of Education


April 201036

$100,938$92,756 $87,770

$70,135

,

Masters/PhD degree in

engineering

Bachelors degree in

engineering

Bachelors or Advanced

degree in non-

engr/Masters in BA

Two-year Associates

degree in a technical

field

T l A C i

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$8,408

$12,466

$8,068


Base salary

Number of Hours Worked


April 201037

$75,399$86,050

$105,401$97,303

$6,671

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$7,366$7,744 $6,561 $12,519

$11,499$13,091

$12,227


Base salary

Number of Years at Present Job


April 201038

$83,903 $88,860$91,334 $88,166

$95,551 $93,388$99,652

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$11,000$7,556

$5,534


Base salary

Satisfaction with job


April 201039

$92,148 $87,930 $83,900

Extremely/Very Satisfied Somewhat Satisfied Not Very/Not at allSatisfied

Total Average Compensation

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$11,784$8,137 $8,464 $5,788


Base salary

Seeking another job


April 201040

$92,210 $90,171 $87,990 $87,733

I'm happy where I am Passively I'm always open to

better opportunities

Actively


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$8,440

$11,241

$9,789

$4,705

Bonus, commission, etc.Base salary

Number of Years of Experience


April 201041

$56,641

$76,235 $79,811$86,614 $98,498

$4,238

20


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$9,725

$8,361 $10,934$8,584

$8,704 $8,601$6,503


Base Salary

Job Discipline (Engineering)


April 201042

$117,483$96,847 $93,095 $88,281 $84,445 $82,934 $76,746

Software Materials** Electrical/

electronics

Mechanical Electromechanical Controls Manufacturing

**Small base size, interpret with caution


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$106,756

$96,524

$94,204

$98,590

$9,898

$17,413

$12,366

6 762

South West

Moutain

South

Base Salary


Region


April 201043

$91,403

$86,746

$82,593

$82,740

$6,862

$7,790

$9,268

$8,374

Mid-Atlantic

South East

Pacific NW

Midwest


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$106,210

$106,077

$99,069

$99,852

$98,895

$10,489

$9,334

$10,835

$8,706

$3,578

Computer/Peripheral (N=46)

Semiconductor (N=50)

Communication System (N=81)

Aerospace (N=143)

Defense System (N=105)

Base Salary


Industry


April 201044

$92,657

$89,975

$84,248

$82,523

$77,792

$72,503

$70,949

$16,286

$8,819

$8,402

$4,428

$5,637

$4,828

$4,427

Industrial Control (N=91)

Medical (N=147)

Consumer Electronic (N=52)

Automotive (N=151)

Instrument/Test Equip. (N=57)

Machine Tools (N=31)

Contract Mfg (N=48)

Documents

25424-DN 2010 Salary Survey