1 North-American Design Engineers: A Success Story 2013 Salary Survey Insights Sponsored by:

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North-American Design Engineers: A Success Story

2013 Salary Survey Insights

Sponsored by:

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In June 2013, the Design News team sent an email invitation to 190,341 North American members of the design-engineering community of Design News. Explorations and Insights,LLC designed and executed the study and Research Results, an independent research firm, tabulated the survey data.

The survey evaluated compensation, job satisfaction and investigated 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• 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 2,125 usable survey responses. At a 95% confidence level, results are accurate and projectable within a + or – 2.1% margin of error.

Methodology

June 2013

3

The Design Engineer

Average Salary:$100,664

Average Bonus:$10,537

Average # of years as an engineer :

18 years

Average # of years in current position:

9 years

Average # of years with present employer:

13 years

Average hours work per week:

46

Education:Degree in engineering, 90%

Average Age:49

June 2013

4

Section I Salary and Compensation

June 2013

5

9%

10%

8%

7%

11%

13%

13%

10%

10%

5%

4%

$150,000 or more

$130,000 - $149,000

$120,000 - $129,000

$110,000 - $119,999

$100,000 - $109,999

$90,000 - $99,999

$80,000 - $89,999

$70,000 - $79,000

$60,000 - $69,999

$50,000 - $59,999

$50,000 or less

Current Base Annual Salary for 2013

(excluding bonus, commissions, etc.)

Average Salary: $100,664

Median Salary: $95,097

Average Salary: $100,664

Median Salary: $95,097

June 2013

6

How does your base annual salary compare with 2012?

Increased 69%

Decreased 2%

Stayed the same29%

3%

3%

8%

51%

4%

Over 10%increase

8-10%increase

5-7%increase

2-4%increase

Less than 2%increase

Over 10% decrease

8-10% decrease

5-7% decrease

Less than 4% decrease

1%

0%

0%

0%

If your base salary changed over the past 12 months, by how much?

Average Salary Increase: 4%Median Salary Increase: 3%

Average Salary Increase: 4%Median Salary Increase: 3%

Average Salary Decrease: 25%Median Salary Decrease: 10%

Average Salary Decrease: 25%Median Salary Decrease: 10%

:

June 2013

7

How much will you earn in bonuses, commissions, etc.?

(not including base salary in 2013)

Less than $1,000

$1,000-$2,999

$3,000-$4,999

$5,000-$6,999

$7,000-$8,999

$9,000-$49,999

Over $50,000

No bonus/commission received

3%

11%

9%

8%

5%

22%

6%

36%

Average Expected Bonus: $10,537Average Expected Bonus: $10,537

June 2013

8

68%

10%

10%

8%

4%

Over 10%decrease

8-10%decrease

5-7% decrease

2-4% decrease

Less than 2%decrease

Increased16%

Decreased 12%

Stayed the same72%

37%

10%

11%

35%

7%

Over 10%increase

8-10%increase

5-7%increase

2-4%increase

Less than 2%increase

How does your 2013 bonus, commission, etc. plan compare

with 2012?

Bonus, commission, etc. plan increase/decrease compared to 2012

Average Increase in bonus: 27%Median Increase in bonus: 5%

Average Increase in bonus: 27%Median Increase in bonus: 5%

Average Decrease in bonus: 37%Median Decrease in bonus: 25%

Average Decrease in bonus: 37%Median Decrease in bonus: 25%

June 2013

9

Section II Careers in Engineering

June 2013

10

How long have you been an engineer? Primary Engineering Discipline

(i.e. mechanical or electrical design)

Less than 5 years

6 - 10 years

11 - 15 years

16 - 20 years

Over 20 years

10%

9%

11%

14%

55%

Average years: 18Average years: 18

% of respondents

Electrical/electronics engineering 33%

Mechanical engineering 30%

Manufacturing engineering 8%

Software engineering 8%

Controls engineering 5%

Electromechanical 4%

Materials engineering 2%

Other 10%

June 2013

11

10 + years53%

6-10 years18%

3-5 years13%

Less than 3 years16%

Years Worked in Present Job

Years Worked in Present Company


35+ years

30-34 years

25-29 years

20-24 years

15-19 years

10-14 years

1-9 years

Less than 1 year

4%

4%

7%

8%

11%

17%

48%

1%


June 2013

12

18 - 252%

26 - 3413%

35 - 4419%

45 - 5433%

55 - 6428%

65+6%

Bachelors degree in engineering

Masters degree in engineering

Two-year assoc. degree in tech. field

Masters in business administration

Bachelors in non-engineering field

Advanced degree in non-engineer-ing field

Ph.D. in engineering

Current student

Other

No college degree

63%

24%

16%

6%

6%

3%

3%

2%

5%

5%

Educational Background Age Group

Average age: 48Average age: 48

June 2013

13

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 hours18%

Work fewer hours10%

Same # of hours

71%

60 hours or more

55-59

50-54

45-49

40-44

Under 40 hours

4%

5%

12%

26%

49%

4%

Average hours: 46Average hours: 46

June 2013

14

Do you have supervisory and/or

budget responsibility? If you are supervising people, how has this changed during the past

two years?BothSupervisory/

Budget 22%

Budgetary Only8%

Only supervisory17%

Neither53%

0%

50%

100%

Fewer people 17%

Same 52%

More people 31%

June 2013

15

Number of employees supervising today vs. the number supervised in 2011?

2%

7%

13%

25%

2% 2%

7%

12%

26%

42%

11%

50%

50 or more20 to 4910 to 195 to 9Fewer than5

None

Number of employees supervised in 2013

Number of employees supervised in 2011

Average number of employeessupervised in 2013: 9




June 2013

16

Please rate your level of agreement with the statements below pertaining to your

role as an engineer.

Appreciated and respected

Role of the engineer is a respected profession

Fully using engineering skills

Underpaid and overworked

Role that is too often outsourced to China and/or other contries

74%

72%

52%

41%

34%

17%

18%

25%

37%

32%

9%

9%

23%

23%

33%

Strongly Agree/Agree Neutral Disagree/Strongly Disagree

June 2013

17

June 2013

Do you have hiring responsibilities?

Yes28%

No72%

18

Section III Job Satisfaction

June 2013

19

What factors contribute to being satisfied with

your job?

What factors greatly impact on your

dissatisfaction with your current job?

Base: Extremely/Somewhat satisfied with career in design engineering

% of respondents

Problem solving 73%

Technical challenges 71%

Opportunity to be creative 63%

Salary 62%

Location 58%

Benefits 57%

Opportunity for new challenges 54%

Relationships with colleagues 54%

Variety of projects 54%

Job security 52%

Recognition from peers 45%

Company’s financial stability 42%

Recognition from management 42%

Relationship with boss 36%

Advancement opportunities 30%

Company size 26%

Relationships with subordinates 26%

Opportunity for job training 21%

Travel 20%

Managing people 10%

Other 2%

% of respondents

No room for advancement 73%

Company politics 66%

Salary 62%

No recognition 60%

Not challenging enough 43%

Stress level too high 42%

Workload 36%

Lack of benefits 34%

Lack of adequate technology 32%

Company unstable 28%

Outsourcing 21%

Colleagues 15%

Location 9%

Other 9%

Base: Not Very/Not At All satisfied with career in design engineering

June 2013

20

In general, how satisfied are you with your career in design

engineering?

Extremely Satisfied11%

Very Satisfied45%

Somewhat Satis-fied36%

Not VerySatisfied

6%

Not At AllSatisfied

1%

56% are Extremely/Very satisfied with their design engineering

career

“Engineering freedom”

“Opportunity to be FIRST robotics mentor”

“Relationships with clients”

“GM hiring engineers with no degrees.”

“Mucky mucks only want money.”

“Importance of my work in the defense sector”

“Develop medical advancements

June 2013

21

MoreSame amount

Less

41% 46%

13%

% of respondents

Workload 46%

Balancing work with home/ personal life

41%

Keeping up with technology 34%

Lack of career development 27%

Working with outdated equip./technology

26%

Need to learn more skill sets 23%

Company stability 19%

Company downsizing 18%

Global design teams 16%

Work conditions 12%

Poor relationships with co-workers 10%

Other 7%

Extremely Challenging9%

Very Challenging42%

Somewhat Challeng-ing

41%

Not Very Challeng-ing8%

Not At All Challeng-ing1%

How challenging is your job?

What factors do you find most challenging?

How stressful is your job compared to two years ago?

Base: Find job Extremely/Very/Somewhat challenging

51% Extremely/Very Challenging

June 2013

22

Extremely Concerned6%

Very Concerned14%

Somewhat Concerned39%

Not VeryConcerned

34%

Not At AllConcerned

7%

“Construction market is weak.”

“Too few young grads to fill the positions for the $ offered by co.”

How concerned or secure do you feel about your jobin the current economic climate?

20% are Extremely/Very Concerned with the

security of their positions

“Cannot even find part-time work”

“Plastics industry is booming and looks to be almost recession proof.”

“Government funded – enough said”

“Company is getting new business every week.”

June 2013

“Foreign competition and rumors of downsizing”

23

Why do you feel this way about your job security?Reasons are Primarily a Function of:

% of respondents

Concerned (Net) 55%

Concern is a function of:

Company 28%

Economy 15%

Politics 8%

Industry 8%

Individual’s situation 7%

Unconcerned (Net) 42%

Lack of concern a function of:

Individual’s situation 22%

Company 17%

Industry 9%

Economy 4%

Misc. 4%

June 2012

24

Other

Hiring Freeze

Layoffs/Downsizing

Hiring/Adding Personnel

7%

21%

32%

40%

Has your company experienced the following in the last 12

months?

What percentage of your engineering workforce was

reduced?

60+%

40-59%

30-39%

20-29%

10-19%

1-9%

4%

6%

5%

11%

29%

45%

Average reduction: 15%

Average reduction: 15%

June 2013

25

Other

Hiring Freeze

Layoffs/Downsizing

Hiring/Adding Personnel

7%

21%

32%

40%

Has your company experienced the following in the last 12

months?

What percentage of your engineering workforce was

increased?

60+%

40-59%

30-39%

20-29%

10-19%

1-9%

2%

4%

4%

12%

32%

46%

Average increase: 13%

Average increase: 13%

June 2013

26

5%

3%

3%

4%

6%

14%

23%

27%

28%

37%

57%

Other

Added benefits

Laid off

Asked to take pay cut

Increased time off

Increased/added bonus

No bonus

Redux in benefits

No raise

Contacted by recruiters

Increase in pay

Which of the following have you personally experienced in the last 12 months?

June 2013

2727

How actively are you seeking another job?

Actively8% Passively

16%

Always Open to Better32%

Happy where I Am21%

Not Actively Seek-ing

23%

June 2013

28

Yes84%

No16%

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

friend?

June 2013

29

Yes49%

No51%

Do you subscribe to the print edition of Design News?

June 2013

30

Section IV Demographics

June 2012

31 31

How many people does your company employ and how many work as engineers?

<100101-500

501-999>1000

46%

17%7%

30%

21%21%

6%

52%

Number of Engineers

Number of Employees

Average number of peopleemployed at a company: 768

Average number of engineersemployed at a company: 497

Average number of peopleemployed at a company: 768

Average number of engineersemployed at a company: 497

June 2013

32

What is your company’s major product line?

% of respondents

Aerospace 12%

Medical 9%

Automotive 7%

Defense Systems 7%

Semiconductors 6%

Industrial Controls 5%

Instruments/Test Equipment

5%

Communication Systems 4%

Consumer Electronics 4%

Contract Manufacturing 3%

Computers/Peripherals 3%

Electronic Components 3%

Machine Tools 2%

Other 30%

June 2013

33

In which region do you work?(Average salaries for each region, excluding

Alaska, Hawaii, Canada, Mexico)

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)

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

(NC, SC, GA, FL)

Mountain(MT, ID, UT, WY, CO,

NM)

31%$91,533

9%$109,985

5%$106,881

16%$116,227

5%$97,232

6%$99,730

13%$100,102

8%$104,708

June 2013

34

Section V Salary Performance vs. Metrics

June 2012

35

<100 101-500 501-999 1,000+

$93,974 $91,816 $98,503 $107,088

$10,347 $6,659

$8,801

$12,330

Bonus, commission, etc.

Base salary

Company Size (Number of Employees)

Average Total Compensations(Salary + Bonus)

June 2013

36

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

$58,142

$81,104 $95,504

$109,430 $103,958 $110,884 $6,118

$7,844

$10,315

$12,436 $10,388

$8,576

Bonus, commission, etc.Base salary

Years of Age

Average Total Compensations (Salary + Bonus)

**Small base size, interpret with caution

June 2013

37

Masters/Ph.D. degree in engi-

neering

Bachelors or ad-vanced degree in non-eng./Masters

in BA

Bachelors degree in engineering

Two-year Asso-ciates degree in a

technical field

$115,800 $101,710 $102,663

$80,650

$13,036

$11,282 $10,925

$6,214

Base salaryBonus, commission, etc.

Levels of Education


June 2013

38

<40 40-49 50-59 60+

$92,726 $97,840 $108,357

$130,938

$5,629 $8,968

$16,784

$19,646


Number of Hours Worked


June 2013

39

<5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30+

$94,104 $97,890 $101,132 $101,907 $107,209 $110,018 $111,795

$7,937 $10,697 $11,103 $14,223

$11,503 $9,844 $11,674


Number of Years at Present Job


June 2013

40

Extremely/Very Satis-fied

Somewhat Satisfied Not Very/Not at all Sat-isfied

$106,430 $94,479 $86,668

$12,298

$8,228 $8,456


Job Satisfaction


June 2013

41

<5 6 to 10 11 to 15 16 to 20 > 20

$70,002 $81,791

$93,086 $97,927 $111,973

$8,225

$7,132

$7,256 $11,615

$11,987


Number of Years of Experience as an Engineer


June 2013

42

Controls

Electrical/Elect.

Software

Mechanical

Electromechanical

Materials

Manufacturing

$108,357

$105,767

$104,550

$97,777

$94,940

$98,746

$80,909

$12,538

$11,266

$12,055

$10,447

$12,826

$5,398

$5,487

Base Salary


Job Discipline: Engineering


June 2013

43

Southwest

South

Mountain

New England

MidAtlantic

Southeast

PacificNW

Midwest

$116,227

$109,985

$106,881

$104,708

$100,102

$99,730

$97,232

$91,533

$14,015

$10,434

$10,883

$11,284

$9,180

$9,814

$9,683

$9,666

Base Salary


Regions


June 2013

44June 2013

Semiconductor (N=130)

ComputerPeripheral (N=68)

CommunicationSystem (N=87)

DefenseSystem (N=148)

Aerospace (N=244)

Medical (N=197)

ConsumerElectronic (N=82)

$115,290

$113,370

$109,011

$114,436

$110,046

$103,512

$100,870

$17,990

$16,799

$14,649

$8,197

$11,453

$10,240

$11,307

Base Salary


Industries


45June 2013

IndustrialControl (N=110)

Instrument/Test Equip. (N=97)

Automotive

ElectronicComp (N=53)

Machine Tools (N=37)

Contract Mfg. (N=63)

$94,723

$95,609

$92,294

$89,811

$82,179

$72,479

$7,952

$6,832

$8,689

$9,488

$12,123

$6,261

Base Salary


Industries, cont’d


46

Thank YouTo learn more please contact: Rich Nass, Design News Brand [email protected](201) 288-1904

Or visit us online at www.designnews.com

1 North-American Design Engineers: A Success Story 2013 Salary Survey Insights Sponsored by:

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