career salaries

COVER STORY Improve, CAREER GOALS Endure R&D Magazine’s annual career satisfaction and salary survey has few surprises but reveals consistent improvements in the state of researchers’ monetary and psychological well-being. SALARIES S cientists and engineers working in research labs saw their salaries improve by nearly twice the inflation rate on average in 2006, while receiving substantial bonuses over the same period for their work. From a career standpoint, most researchers’ opinions of their positions, their employers, and their career goals have remained both similar and strongly positive over the past three years. These and other conclusions were gleaned from R&D Magazine’s 10th Annual Salary and Career Survey. The 2007 edition of this report is based on 1) a Web-based reader survey on researchers’ job satisfaction and career goals—this survey was performed in January 2007 with more than 500 responses—and 2) a mail survey sponsored by R&D Magazine and performed by Abbott Langer & Associates, Crete, Ill., on U.S. researchers’ 2005/6 salary and total compensation levels. This survey was performed in August 2006 with more than 400 responses from more than 100 organizations. when researchers were asked where they would like to be in five years, the number of respondents who indicated they would be retired jumped from 19% in the 2004 survey to 27% in the 2005 survey. The response to that same question in this year’s survey dropped back down to 18%. These responses are further verified when the average age of the respondents is compared and found to be remarkably similar for all surveys. This data reflects well on data from other reports on expected retirement effects. Earlier data revealed that a severe shortage in researchers in mostly government agencies like NASA was expected primarily due to an aging researcher workforce. Up to 40% of the workforce in one government agency alone was expected to be lost due to retirement effects over a five to 10 year period. However, new data reveals that that shortage is, in fact, not occurring. Analyses of these effects credit researchers with extending their individual expected retirement dates, along with numerous organizations relaxing their mandatory retirement age limits. Changing attitudes In our last Salary and Career Survey (2005), it was noted that Length of Time with Current Employer More than 25 yr Do You Like Your Work? OK, but like other work Don’t like it Exactly what I like to do 20 to 25 yr 15 to 20 yr 10 to 15 yr 5 to 10 yr 2 to 5 yr 17.2% 6.6% 7.4% 11.8% 17.4% 20.1% 19.4% 10 15 % Respondents 20 25 Like it, but like other work more 2% 7% 3% 18% 60% 0 Source: R&D Magazine Less than 2 yr 5 Like it very much Source: R&D Magazine 22 R&DMagazine March 2007 www.rdmag.com Number of Companies Worked for Since Graduation More than five One 13% Five 20% 18% 23% Two Three 12% 14% Four Source: R&D Magazine Most Researchers Work More Than 40 Hours Less than 35 hr 35 to 40 hr 40 to 45 hr 45 to 50 hr 50 to 55 hr 55 to 60 hr 3% 12% 36% 27% 10% 8% 4% 15 20 25 30 35 40 % Respondents 10 The overall aging of the research workforce also may not be as much of a problem as once thought. A very recent increase in the number of non-U.S. students enrolling in U.S. universities supports the reversal of a decline since the terrorist attacks of Sept. 11, 2001, in the number of new researchers available to be hired from academia into government and industrial research labs. Native U.S. students are increasing their enrollments in academia as well. Minorities, especially women and Hispanics, are increasingly looking to careers in research. The number of female students in science and engineering courses in U.S. academia has exceeded the number of male students since 2000. And the growth rate of Hispanic students going into science and engineering careers exceeds even the growth rate of female students. These enrollment changes will have negligible effects on the current situation, but will work as “leveling agents” in future years to offset at least part of the retirement effects. An interesting note to the survey is reflected in the question asking researchers if they work in the same area in which they were educated. The results on this question have not changed statistically over the past three years—just under half work in the discipline in which they were educated. But that means that more than half work in areas in which they were not educated. About a quarter of the respondents employ a combination of disciplines in their work, reflecting the multidisciplinary aspect of modern R&D projects. The number of hours that researchers work per week was basically the same as in the last survey, 45.8 hrs/wk in 2007 vs www.rdmag.com More than 60 hr 0 5 Source: R&D Magazine 45.1 hrs/wk in 2005. But while the numbers show a slightly larger number of hours worked per week, researchers’ perception is contrary to the numbers. A slightly larger number of researchers in 2007 (25.6%) state that they work fewer hours per week now than they did five years ago. Only 21.6% of the respondents in the 2005 survey responded in the same manner. On the other side of this question—do you expect to work greater or fewer hours per week in five years—the number who said they would be retired in five years (reflecting on the previous item above) declined from 17.7% in 2005 to just 11.3% in 2007. These results are definitely out of the statistical variations and reflect credible differences in respondent expectations. When asked if their jobs interfered with their personal time, about 39% of the research respondents indicated that it did, either often or most of the time. About 54% of the respondents said that it only occurred every once in a while, and only 6% said that their jobs hardly ever interfered with their personal time. The results in this year’s study were identical to those in the previous 2005 survey. Filling vacant engineering or science research positions was more difficult in 2007 than it was in 2005. More than two-thirds of the respondents (69%) indicated that it was difficult or somewhat difficult to fill these positions in 2007, compared to only March 2007 R&DMagazine 23 More Receiving Benefits Medical insurance Paid vacation 401K plan Disability insurance Educational reimbursement Performance bonus Pension plan Profit sharing Stock options Company car Child care 0 89% 89% 84% 58% 52% 45% 44% 64% in the 2005 survey. 31% of the respondents said that it was easy or somewhat easy to fill the positions in 2007. More satisfied About 81% of the 2007 research respondents indicated that they were somewhat or very satisfied with their research positions, compared to 79% in 2005—statistically identical results. The ability to work independently was the main reason that researchers liked their jobs—64% picked that as their number one choice in 2007 compared to 60% in 2005, still the number one choice in that survey. The next three choices for why researchers like their jobs was again the same as in the 2005 survey—interesting/variety of work (52% in 2007, 50% in 2005); solving challenging problems (50% in 2007, 49% in 2005); and doing what I’m good at (48% in 2007, 46% in 2005). Overall, the two surveys were strikingly similar in both the most satisfying and the least satisfying aspects of the researchers’ jobs. In the least satisfying aspect of the researchers’ jobs, too much bureaucracy stood out as the largest response item (38%). Inadequate staff (31%), compensation/benefits (27%), operating budget (27%), no advancement opportunities (25%), and not enough appreciation by management were the follow-up least satisfying choices. When asked if researchers liked their work, about 13% said that it was exactly what they like to do, with 60% stating that they liked 22% 19% 6% 40 60 80 100 4% 20 % Respondents Source: R&D Magazine Small Improvement in R&D Interest No change in R&D Increase R&D What Are the Most Satisfying Aspects of Your Job? Ability to work independently 30% 64% 52% 50% 48% 36% 22% 44% 16% 10% Don’t know Source: R&D Magazine Interesting/variety of work Solving challenging problems Doing what I'm good at People I work with Decrease R&D Product/process development Compensation/benefits 19% 14% 14% Researchers Mostly Satisfied With Their Positions Somewhat dissatisfied Very dissatisfied Very satisfied Basic research 15% Appreciation by management Improving the quality of life 15% 4% 34% Stability 14% 10% 6% 40 50 60 70 80 Facilities/technologies 47% 0 Somewhat satisfied Source: R&D Magazine Advancement opportunities Travel 6% 10 20 30 % Respondents Source: R&D Magazine 24 R&DMagazine March 2007 www.rdmag.com What Was Your Salary Increase in 2006? More than 30% 25.01 to 30% 20.01 to 25% 15.01 to 20% 10.01 to 15% 9.01 to 10% 8.01 to 9% 7.01 to 8% 6.01 to 7% 5.01 to 6% 4.01 to 5% 3 to 4% Less than 3% 0 5 10 15 20 25 30 What Are the Least Satisfying Aspects of Your Job? Too much bureaucracy Inadequate staff Compensation/benefits Operating budget No advancement opportunities No appreciation from management No feedback from management Menial tasks Workload Lack of stability 2.4% 38% 31% 27% 27% 25% 24% 19% 0.5% 0.2% 2.2% 4.4% 2.2% 1.0% 3.7% 3.2% 2.0% 8.3% 35.7% 34.2% 35 40 % Respondents 18% 18% 17% 16% 9% 8% Inadequate facilities/technology Inability to keep up with technology Too many management duties People I work with Travel 6% 4% 20 25 30 35 40 Source: R&D Magazine 5% 5 10 15 it very much. About 18% of the researcher respondents were neutral about their jobs, and about 8% outright didn’t like it. The 2007 survey results were identical to those in the 2005 survey. Some of the improvement in researchers’ appreciation of their jobs was reflected in an increase in the level of their employers’ perceived commitment to R&D. About 83% of the respondents agreed or strongly agreed that their employers were committed to R&D. This commitment level was less than 75% in the 2005 survey. This commitment was further verified in the researchers’ responses to their outlook for their employers’ future. About 64% said that their employers will grow or expand in the future, up from just 54% in the 2005 survey. About the same level of response was seen in their opinions as to their employers’ expansion plans into Asia in the future (15% in 2007, 18% in 2005). Winding up the reasons for researcher job satisfaction, paid vacation (89%), medical insurance (89%), and 401(k) plans (84%) were the standouts in benefits that researchers receive from their employers—very similar results to the responses in the 2005 survey. The benefits that received the fewest number of responses included company car (6%), child care (4%), and sales commissions (1%)—the three lowest in the 2005 survey as well with identical response levels. Inability to work independently 0 Source: R&D Magazine % Respondents Salary improvements all around Scientists and engineers working in research labs in 2006 saw their salaries improve 4.7% on average over what they received in 2005, according to the R&D Magazine Web-based reader surveys. The researchers similarly received bonuses of between $5730 and $7335 on average in the same period. www.rdmag.com A small sample of the details from the Abbott Langer & Associates compensation survey is shown in the attached tables. The Langer report provides more details on salaries by the minimum and maximum ranges, cash bonuses, and total cash compensation. The statistics are further detailed by the mean, median, first and ninth decile, and first and third quartiles. The salaries shown in the attached tables reflect the current mean annual salary of the individual, without any cash bonus or profit sharing added into the compensation. The overall results, while often statistically skewed slightly due to outliers, are generally indicative of the demographic and geographic influences on compensation levels. The outliers generally influence the percentage changes from one survey iteration to the next. As such, the large changes (greater than 10%) should likely be considered statistically inaccurate. Pacific, Northeast, and Southern (which includes D.C., Maryland, and Florida) regions are historically the highest paying regions of the country for R&D directors, researchers, and technicians alike. They are where the action is, with the largest labs, the most prestigious universities, and the leading government research facilities. In addition, high population densities in these areas make them very cost competitive areas, while the North Central, Mountain, and Midwest regions tend to have consistently lower compensation levels for all categories of researchers. Similarly, Sunbelt and government center locations tend to draw March 2007 R&DMagazine 25 What Level of Extra Incentive Did You Receive in 2006? Less than $5,000 $5,000 to $15,000 $15,001 to $25,000 $25,001 to $35,000 $35,001 to $45,000 $45,001 to $60,000 More than $60,000 0 10 20 64% 22% 7% 2% 1% 2% 2% 30 40 50 60 70 80 % Respondents Source: R&D Magazine U.S. Bachelor’s Degrees Awarded in Science & Engineering 250,000 Female S&E Male S&E 225,000 200,000 175,000 150,000 1997 1998 2000 2001 2002 2003 2004 Source: National Science Foundation What Would You Like to do in Five Years? Move up in my organization Do what I‘m doing now Work at another organization Retire Own my own company Teach 38% 28% 19% 18% 14% 9% 10% 9% 25 30 35 40 Work in another section for my current employer Work in another part of the U.S. Work in a foreign country 0 5 10 15 5% 20 Source: R&D Magazine % Respondents higher compensation levels for researchers while Rustbelt and former industrial centers tend to draw lower compensation levels. There are specific trends in compensation levels for each of the research categories that take some explanation. For example, in the R&D director category, the compensation trend over time shows a sharp rise and fall, a plateau, and then a sharp rise again for directors with 25 or more years of experience. These trends are classical in that researchers with relatively little experience, but who become directors early on, are fast-track types who demand larger compensation packages. Similarly, directors with 25 or more years of experience have shown their capabilities and are proven performers, again demanding higher compensation packages. This trend contrasts with that of researchers over the same time span, where there is a steady improvement with few rises or falls. The scientists and engineers are proving themselves over time with steady, consistent improvements in compensation levels. These same comparisons between director-and researcherlevel individuals holds again when looking at the trends in educational level. For researchers moving from BS to MS to PhD levels, there is a consistent steady increase in compensation packages, as each improvement provides an incremental capability to the research organization. For the director level, those individuals who attain a director position with just an MS degree are likely again to be “fast-trackers” or “movers and shakers” who at this point in their careers are likely to outperform—and outdemand for compensation packages—those comparable directors with PhD credentials. It should be noted that the three research categories provided in the Abbott Langer compensation report—director, researcher, and technician—have basically no overlaps in compensation levels, regardless of specific experience, education, functional sector, or geographic location. The specific requirements and responsibilities for each of these groups are very distinct and compensated at levels that are very distinct as well, from the very entry to the very senior levels. This has not always been the case, and is not the case in other industries and disciplines. —Tim Studt www.rdmag.com 26 R&DMagazine March 2007