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Since money does not grow on trees, the Structural Engineer 7th annual Compensation Survey reports on the earnings of structural engineers; including annual salary, bonus, and raise. Additionally, this article will focus on the components that complement remuneration such as insurance, retirement, and fringe benefits, as well as paid time off and compensation for overtime.

This survey has established a baseline of data over the past three years by asking many of the same questions annually. For this year’s survey, we fine-tuned some of the quantitative questions, as well as included several qualitative questions to gauge employees’ satisfaction levels with their total compensation.

The compensation survey captures data from practicing structural engineers nationwide, at all experience levels, in a variety of firm types and sizes. Because we are limited to what we can report in print, I have included more data regarding the 2007 survey results here.

About the survey

Invitations to participate in Structural Engineer’s 7th annual Compensation Survey were e-mailed in February 2007 to more than 28,517 subscribers to Civil Connection (an e-mail newsletter that includes CE News and Structural Engineer subscribers, as well as others). Of the 7,824 e-mails that were opened (27 percent), 3061 people launched the online survey. The survey remained open for three weeks, and during that time we received 2,242 completed records. For this analysis, we separated the data provided by structural engineers (48 percent of the responses) from the civil engineers’ data, which is reported in the June issue of CE News.

After cleaning up the structural engineering data, 928 responses were analyzed.Specifically, the data presented in this article represents full-time employees who responded positively to the statement, "I primarily engage in the structural engineering profession, which includes design, analysis, management, and construction of projects such as buildings, bridges, and other structures."

Earnings

Mirroring the many economic reports touting strong growth in the construction market ast year, the data collected in this survey reveals that earnings at all levels has increased in 2007. We analyzed data for annual salary, bonus, and raise, and reported the median, first quartile (Q1), and third quartile (Q3) values by market sector, years of experience, and job title in Tables 1 (see Table 1), 2 (see Table 2), and 3 (see Table 3), respectively.

Salary—The most anticipated aspect of our survey report, the component of compensation likely to be the most important to many employees, is annual salary. The median salary reported in 2007 increased 6.25 percent to $80,000 from the 2006 median of $75,000. This is the first time in four years that the increase in median salary has exceeded the annual cost-of-living adjustment as reported by the Social Security Administration. (The 2007 adjustment is 3.3 percent; see www.ssa.gov/OACT/COLA/colaseries.html for adjustments dating back to 1975.)

Bonus—The median bonus received in 2007 was $5,350. While the percentage of respondents who received a bonus (65 percent) was the same as in 2006, the median dollar amount increased 25 percent from $4,000 in 2006. While the median bonus received in 2007 is 7 percent of the median annual salary, Table 2 (see Table 2) shows that the range of median bonuses received is from 3 to 10 percent of median annual salary, increasing with years of experience gained.

Raise—The median raise received for 2007 was 5.0 percent. This year, 83 percent of the respondents reported receiving a raise; this is slightly higher than the 4.5 percent median raise reported by 82 percent of the respondents in 2006. As in year’s past, the highest raises were reported by employees with fewer than seven years of experience.

Other compensation

As competition for talented staff remains difficult for employers, many firms are increasing and enhancing the benefits offered to employees as one means to attract and retain staff.

Benefits—Insurance, retirement, and fringe benefits make up the bulk of non-financial compensation. These employer offerings can be significant and can be a deal maker or breaker when comparing and contrasting new job opportunities. Table 4 (see Table 4) highlights the top benefits received.

The vast majority of practitioners who responded to the survey receive medical (96 percent) and dental (81 percent) insurance, which is virtually unchanged from last year’s findings. Life (74 percent) and long-term disability (63 percent) insurance benefits are essentially the same as last year, also. There were significant increases in the percentage of respondents who receive vision (63 percent), as well as short-term disability (61 percent) insurance—an increase of 7 and 5 percent, respectively, over the 2006 findings.

In 2007, there was a notable change in the distribution of retirement benefits. The good news is that the number of respondents who receive 401(k) or other retirement plan benefits to which the firm makes contributions is up 8 percent over 2006 data to 68 percent. The flip side is that the number of respondents that receive every other form of retirement benefit listed in Table 4 (see Table 4) has declined since 2006.

Finally, what we define as fringe benefits have seen a strong increase in 2007, including a 12-percent increase in respondents who receive paid training for continuing education units and professional development hours; and an 11-percent increase in employees who receive paid professional registration, as well as flexible schedule opportunities from their employers.

Paid time off— In addition to the traditional policy of paid vacation, sick, and personal days (received by 66 percent of respondents), and paid time off (PTO) plans (received by 28 percent of respondents), the survey also revealed that 5 percent of respondents indicated that there is no time-off policy established at their firms. Note that of this 5 percent, 3 percent are self-employed without an established policy.

Because this year we asked respondents for the number of sick and personal days they receive, the comparison of total paid days off for a traditional plan versus a PTO plan reveals that the median number of days off for employees with fewer than 15 years of experience is essentially the same at 15 days. Differences occur with increased seniority, as those with the most experience receive up to five days more (up to a median of 25 days) with a traditional plan; see Figure 1.

Overtime — Fifty-five percent of respondents receive additional compensation for hours worked in excess of 40 per week. This represents an increase of 7 percent over 2006, when only 48 percent of respondents received this benefit. Of those who are compensated, the majority (28 percent) receives hourly pay, while 11 percent receive their choice of compensation with hourly pay or an equivalent time off.

Compensation influences

Many factors influence the broad-based analysis for median earnings and benefits that define total compensation, including job responsibilities, education level, licensure, and regional markets.

Responsibilities—As one would expect, when responsibilities increase, compensation does too. Table 3 (see Table 3) details median earnings for various job titles. The biggest increases in annual salary in 2007 were for vice presidents (10 percent), principals (9 percent), and senior project managers (9 percent).

Since job titles can be quite different between firms, we asked respondents to define the duties included in their jobs—such as computer analysis, contract document production, and fee negotiations—in order to provide a bit of framework for the titles; a table reporting this data is below.

Education level—Education level has a significant effect on median annual earnings (which includes both annual salary and bonus) reported by respondents. While the median annual earning for the 53 percent of respondents with a bachelor’s degree is $82,500, the 43 percent of respondents who have obtained a master’s degree enjoy 6 percent higher earnings of $87,300. Furthermore, the 3 percent of respondents who earned a doctorate degree reported median annual earnings of $100,000 (a 15-percent increase over a master’s degree). However, the education level commanding the highest median annual earnings of $105,000 is reported by the 3 percent of respondents who have achieved a master’s in business administration.

Additionally, this year’s data indicates that respondents who have completed a master’s degree earn from 17 to 21 percent higher than those with a bachelor’s degree for those with fewer than seven years of experience.

Licensure—In this year’s survey, respondents with four to 10 years of experience who have earned a P.E. or S.E. license reported earnings 12 to 17 percent higher than those who did not. Additionally, employees with fewer than two years of experience who had passed the E.I.T or E.I. exam reported earnings 3 percent higher than those who were not licensed.

Location—Where an employee works is just as influential as his or her responsibilities and experience level when analyzing median salary across the nation. The statas reporting the highest mean annual salary are South Carolina ($101,000); New Jersey ($100,000); Texas ($95,000); California ($94,625); and North CaroliaSee the map showing median salary reported by state, as well as median salaries for 30 of the largest metropolitan statistical areas, below.

Median annual salary by U.S. State

ALABAMA = $81,000; ALASKA = $84,000; ARIZONA = $88,900; ARKANSAS = $76,000; CALIFORNIA = $94,625; COLORADO = $81,500; CONNECTICUT = $75,000; DELAWARE = $84,000; DISTRICT OF COLUMBIA = $68,616; FLORIDA = $82,100; GEORGIA = $82,000; HAWAII = $83,300; IDAHO = $87,000; ILLINOIS = $78,900; INDIANA = $71,200; IOWA = $75,800; KANSAS = $74,000; KENTUCKY = $81,250; LOUISIANA = $93,080; MAINE = $67,500; MARYLAND = $71,011; MASSACHUSETTS = $75,000; MICHIGAN = $75,000; MINNESOTA = $71,850; MISSISSIPPI = $88,850; MISSOURI = $72,900; MONTANA = $70,000; NEBRASKA $71,000; NEVADA $88,750; NEW HAMPSHIRE = $75,025; NEW JERSEY = $100,000; NEW MEXICO = $82,000; NEW YORK = $85,500; NORTH CAROLINA = $93,500; NORTH DAKOTA = $83,250; OHIO = $75,000; OKLAHOMA = $78,000; OREGON = $77,000; PENNSYLVANIA = $74,000; RHODE ISLAND = $62,354; SOUTH CAROLINA = $101,000; SOUTH DAKOTA = $74,283; TENNESSEE = $75,000; TEXAS = $95,000; UTAH = $63,940; VERMONT = $58,240; VIRGINIA = $85,350; WASHINGTON $70,000; WEST VIRGINIA = $78,500; WISCONSIN = $71,000; WYOMING = $50,000

Results of interest

New this year, we asked respondents several qualitative questions regarding satisfaction. While money does not grow on trees, and respondents are less satisfied with earnings than benefits, nearly three-quarters of respondents want for little else from their job (as far as benefits go). Asking separate questions for earnings and benefits, as well as for total compensation (which we defined as both earnings and benefits) revealed that while 60 percent of respondents are satisfied or very satisfied with their current earnings, even more—71 percent—are satisfied or very satisfied with their current benefit offerings. This combination brings the percentage of respondents who are satisfied or very satisfied with their current total compensation to 64; see Figure 2.

Interestingly, approximately 20 percent of respondents indicated they felt "neutral" when asked about satisfaction on earnings, benefits, and total compensation. Therefore, the highest percentage of respondents who were unsatisfied or very unsatisfied with their current earnings is 20. Findings indicate that those mostly dissatisfied with their compensation were those with two to seven years of experience. Read "Not getting what you want from your job? Change it!" below for more information on satisfaction levels reported by years of experience.

Conclusion

Structural Engineer facilitates the compensation survey each year to provide practicing structural engineers with some baseline compensation data. Our goal is to provide accurate and useful information. After reading this article, we hope that you feel well-informed about the value of your employer’s offerings. Please let us know your opinions, comments, or ideas about this year’s survey, or suggest ways to improve next year’s. Send me your feedback at jgoupil@zweigwhite.com.

 

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Not getting what you want from your job? Change it!
Examining employee satisfaction with earnings and benefits
By Jennifer Goupil, P.E.

The data collected from full-time, practicing structural engineers in the 2007 Compensation Survey revealed that although 71 percent of respondents were satisfied or very satisfied with their benefits, they were less satisfied with their earnings, which we define as annual salary and bonus (only 60 percent were satisfied or very satisfied with their earnings). Looking at earnings satisfaction reported by years of experience, it is apparent that those employees least satisfied with their earnings have two to seven years of experience; see the table below. Staff within this experience bracket report the highest level of dissatisfaction at 28 and 32 percent for two to four years of experience and four to seven years of experience, respectively. And they report the lowest levels of earnings satisfaction at 48 and 47 percent, respectively.

Since these same employees are also the least satisfied with their benefits, perhaps honest discussions regarding this issue would serve to gratify the employee’s compensation needs and, in the firm’s best interest, retain the employee.

Created by Structural Engineer’s publisher ZweigWhite, AECWorkforce.com is an Internet job board dedicated to the needs of architects, engineers, and construction professionals. Because the site is geared towards job seekers, there are several articles on the "Career Advice" page that offer guidance on negotiating salary and benefits—which may be useful for anyone negotiating or renegotiating compensation—including the following:

"Getting the offer you want!"
There are several important things to consider before you begin negotiating your salary and benefits. Planning your approach before you engage in discussions with the hiring manager can ensure that you get the offer you are looking for.

"Negotiating a salary with a potential employer"
Negotiating a salary can mean sweaty palms and a racing heart if you’re not prepared. What’s the best approach to ensure you receive the best compensation and benefits?

"Vacation benefits: still as good as gold?"
In-demand employees continue to make it clear to employers: "Don’t skimp on my paid free time." The competition for top talent is fierce; so many employers are prepared to address discrepancies between their vacation policies and what their top candidates expect to receive.

While compensation offerings vary greatly even within the AEC industry, many factors contribute to what is fair for each engineer and employer. Keep this in mind as you evaluate your offerings and if you are unsatisfied, discuss your needs with your employer.