Sir Isaac Newton was not speaking about salaries when he uttered the oft-repeated phrase "what goes up must come down," but for 22% of respondents to the
IndustryWeek 2010 Salary Survey, that's exactly what happened -- their base salaries dropped over the past year. And nearly half of respondents, or 49%, reported having their base salaries frozen over the past year. These numbers are particularly ugly when compared with results of the previous year's survey, when just 4% of respondents reported that their salaries had decreased, and 27% said their salaries had been frozen.
Clearly the economy has taken a toll. Indeed, asked to name the biggest challenge facing the manufacturing industry, one respondent's answer -- "pure and simple, it's the economy" -- echoed the sentiments of many. Garnering even greater attention was the impact of global competition. For example, said another respondent about manufacturing's greatest challenge: It's "how to maintain profitability on the world stage and still properly compensate the average worker so that [his] quality of life does not deteriorate." Still others cited government regulation, poor economic policy, material costs and finding qualified employees as among the leading challenges.
It is in this environment that
IndustryWeek conducted its 2010 salary survey, which was completed by 1,259 U.S. manufacturing managers in December 2009 and January 2010. The survey data revealed that managers earned an average salary of $98,120 over the past 12 months. The median salary was significantly lower at $81,000.
But despite a landscape of poor business conditions, a salary that for many did not advance, a continuing erosion of manufacturing jobs in the United States and overbearing government regulations (at least in some executives' views), the survey also showed by and large, most manufacturing managers were satisfied in their jobs. To illustrate, 25% of respondents reported they were "very satisfied" with their current job, with another 45% saying they were "satisfied" with their job. These percentages are down from the previous year's survey, but not by much given the significant change in the compensation landscape between those two years. In the 2009 survey 30% of respondents said they were "very satisfied" and 46% reported they were "satisfied" with their current job. Additionally, when asked, "How satisfied are you with manufacturing as a career path?" Eighty percent were either "satisfied" or "very satisfied," a percentage that remained even with the previous year's survey.
That skidding salaries failed to drive widespread dissatisfaction drew a ready response from Loree Griffith, a principal with the rewards consulting business of global consulting firm Mercer. (Mercer conducts an annual U.S. compensation survey.) "I think employers and employees might be focused more on the total value proposition," says Griffith. The total value proposition, which includes such components as benefits, career advancement opportunities and workplace flexibility, may help offset the sting of a pay freeze or cut, she suggests. Her suggestion is backed by comments from several respondents. For example, when asked "What matters most to you about your job?" a manufacturing manager in the food and beverage industry could not settle on a single choice among a list of options. Instead the respondent replied, "Salary, benefits, advancement opportunities, and job stability all about equal." Approximately 44% of respondents also received bonuses.
Griffith also offered a more prosaic explanation of the relatively high levels of job satisfaction despite a lack of salary increases: "Some may have felt lucky to have a job if [their company] had a layoff," she says.
There is reason to believe that base salaries will improve in 2010, at least for some. But before venturing down that line of thought, let's review some of the data collected in the latest
IndustryWeek salary survey, along with responses from U.S. manufacturing managers.
Who We Are, Where We Are I lost my job in Kentucky in March 2009. I took a significant pay cut and relocated to Texas just to get back in the job force. -- supply chain and logistics manager in the chemicals industry with 21 to 25 years of experience, living in the South Central region and earning $75,000
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