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Editorial
NANCY K. FRIEDRICH
Content Director
nancy.friedrich@penton.com

How Do You Stack Up?

elcome to this years annual compensation survey. In surveying our

audience across our family of brands,
we found similar findings from Electronic Design to Microwaves & RF, Machine Design, Hydraulics & Pneumatics, and Global Purchasing. Among the major
trends were more focus and interest on the Internet of Things
(IoT) and Industrial Internet of Things (IIoT)/Industry 4.0.
Engineers are increasingly working on products and solutions
for the IoT, while they and procurement professionals and
management are also looking at how the IoT will impact the
way they do their jobs.
Job satisfaction is currently very high. Engineers, for example, feel well compensated for their work and are generally
happy with their career paths. They also feel optimistic about
the state of the engineering industry, although some concerns
remain about the economy, outsourcing, and IoT adoption.
Among our Machine Design and Hydraulics & Pneumatics
audiences, for example, there is some concern over manufacturing jobs being minimized or even phased out with IoT
adoption.
For engineers, one of the biggest challenges remains staying
up to date on the latest technologies. To accomplish this goal,
our audience cites many online resources, ranging from white
papers and e-books to webcasts and videos. They of course
contend with time-to-market challenges and other job pressures, but by and large, they get a lot of satisfaction from overcoming those challenges. Interestingly, when they need to take

a break and clear their heads, they most commonly shared that
they go for a walk.
Across the industries we reach, more individuals are relying
on smartphones to tie up business at the end of the day or prepare for what faces them in the morning. They also are paying
more attention to social-media outlets like LinkedIn, Twitter,
and Facebook. Some cite that they use Twitter (and Facebook,
but to a lesser extent) to stay updated, while LinkedIn continues to reign as the career-networking resource.
What about the future? Across the board, we continue to
see the majority of responses pointing to concern over the
next generation. The consensus is that, despite todays efforts
to bring more students into technology fields of study and
careers, were facing an engineering shortage. It follows that
specialized areas, like the microwave and radio-frequency
(RF) market, are facing an even bigger chasm as companies
look to the next generation. Many of the people that laid the
groundwork for todays technical breakthroughs have retired
or are nearing retirement. While they brought in talent behind
them, most do not think it is enough to bridge the gap.
Hopefully, all of todays technical-outreach efforts will
increasingly produce interest from the next generation. In
the meantime, dont forget to evangelize engineering and
technology-related fields in your own circles. The majority
of survey respondents said that they would recommend their
professions, so why not start if you havent already? And dont
forget to take a deeper look at how people in your industry are
compensated to see where you stand.

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2O15 MACHINE DESIGN

SALARY SURVEY
The numbers are in and we take a look at what they mean for the industry
and the engineers who work in it.

he engineering field is an ever-changing environment. To better understand the world our readers
live inand to help you better understand the
state of the industryMachine Design presents
its 2015 Salary Survey. More than 2,000 engineers responded
to the annual survey regarding salary, work environment,
benefits, and their views on where the field of engineering is
going next.

Staying current with new and emerging technologies is

one of the main concerns engineers have, cited by 27.8% of
respondents. According to one of the respondents, they
need to benchmark to stay competitive, but innovation is
what allows us to create new markets and products. We have
to look outside our industry and there is an awful lot outside
our industry.
THE ENGINEERING OUTLOOK

THE TYPICAL ENGINEER

According to our survey, 54.3% of our readers are 55 years

old or over and predominantly male. Just over three-quarters
are college graduates with a bachelors degree or higher. The
most common principal job function is in design and developmental engineering at 61.7%, and a much smaller percentage
(11.8%) work in engineering management. The most common
job title is design/project/R&D engineer at 24.7%. Others
include manufacturing/product engineer and chief/senior/
lead/principal engineer at 6.0% and 12.9%, respectively.
THE CURRENT WORKPLACE ENVIRONMENT

Our readers ranked their most pressing concerns on a scale

of 1 to 10, and the majority of their concerns focus on design
resources. Finding optimal components scored an average
of 6.72, while insufficient funding for design projects scored
an average of 6.28. Dealings with management also affect the
engineering work environment, such as compromising of
design approaches and the politics of the workplace. When
asked what would cause them to consider leaving their position, 39.3% said it would be to pursue other interestswhether it was to become an independent inventor, teach, or explore
a different industry.
Free time is a major factor in continuing education and 55%
said that finding the balance of work and free time hinders
their ability toward educational pursuits. Some ways to pursue
continuing education are in the forms of engineering/technology websites, white papers, webcasts, and seminars.

Outsourcing of engineering talent, while a concern, was

cited by only 14.8% of respondents. The most common engineering work outsourced is design work at 49.1%, with manufacturing and assembly work coming in second at 38.1%. Most
of the outsourcing work occurs within the United States, with
61.9% of the outsourced work sent to external contracting
firms or engineering workhouses. China and India are the
second and third most common outsource locations, at 20.6%
and 15.9% respectively.
While some engineers feel that outsourcing diminishes
morale and hurts efficiency, for small facilities and testing
purposes, outsourcing could be an asset. For testing, it is
crucial as the capital expense for specialized equipment is prohibitive and specialized expertise speeds the process up, said
one respondent. Smaller firms outsource work to machine
shops since we dont have the capabilities in-house beyond 3D
printing.
Perhaps most telling is that the current engineer still recommends it as a profession. An impressive 92.1% would recommend engineering to the next generation of students entering
college. In addition, 69% believe salary advancement is still as
promising today as it was five years ago. When asked why, many
engineers believe that engineering offers solid employment
and, as one respondent noted, offers broad opportunities for
advancing in technical or business management roles.
TECHNICAL EDITOR Carlos M. Gonzalez wrote this report. Survey
conducted and data compiled by Jay McSherry.

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THE TYPICAL ENGINEER

Work locations

Highest education level

28%

CA

OH

IL

14%

9%

TX

4.5%

3.5%

Doctoral
Degree

Master's
Degree

Graduate
Studies

Bachelor
Degree

Associates
Degree

More people going back to school have

graduated or taken a position with an
employer based on certification of skills.
Jobs are harder to come by that don't
require a BA/BS degree in Engineering.

Years at present company

Age

4%

FL

6%

1-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40 +

4%
PA

4%

5%

18%
9%

5%

3.5%

MA

NY

MI

WI

27%

18.2%
14%
11%
8%
6%
5%
4%
3%

Years in the
profession

40+

1-4 5-9 10-14

<1
year

15-19

4% 5% 6%
1
8.5%
%

As technology
advances, engineers
continue to be in
demand. That will
continue into
the future.

19%

22%

14%

11%

20-24

13%

25-29

17%

30-34

35-39

The average engineer age has gone up from last year. This is a rising concern for those currently in
the industry. As one respondent stated, With the graying of engineering staff and the benefits cost
associated with our years of experience, 50 has become the new retirement age. My students are
receiving employment opportunities through their internships, but my peers and I
are no longer considered for the same opportunities.

2534
6.5%

3544
11%

4559

45%

60+

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38%

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Average Compensation

97,530

COMPENSATION

MORE

36%

EQUALLY

SAY
HIRING
WILL
GROW

11%

Average bonus

Engineers have a wide range of salaries earned; 43.5% earned

between $60,000 to $99,999 and 20.4% earn between
$100,000 to $125,000 per year. The other forms of compensation come from matching 401Ks and health benefits. Many
engineers worry about the rising cost of health insurance, and
how that will affect their salaries in the future.

LESS

EMPLOYMENT OUTLOOK
10%

SAY
HIRING
WILL
MAINTAIN

60%

SAY
HIRING
WILL
REDUCE

Actively seeking a new position

8%

34%

9%

58%

57%

Is an engineering
career as promising
today as it was five
years ago?

YES

OPEN TO
OPPORTUNITY

62%
SAY YES

Technology continues to advance and

engineers are always needed to implement
and manage systems.
Is your organization more focused
on employee retention this year?
YES

NO

1.5%

While many engineers still believe that engineering is still as promising a career as it was five
years ago, many note the stagnant state of engineering. More than 60% state that their
companies have no plans to either hire or reduce the amount of engineers working at their firms.
Another 67.8% feel that their organization is not as focused on employee retention as it once was.

30%

34%

Cash $3,951
Stocks/options $2,336
Other $2,491

How competitive is the average

engineers compensation?

53%

Average compensation
increase

31%

% Contacted by a recruiter this year

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NO

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55%

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COMPENSATION BREAKDOWN
By industry

By job function
$116k

ICs and semiconductors

Avionics/marine/space

$122k

$108k

Government / military

Components and subassemblies

$107k
$101k
EXECUTIVE/OPERATING
MANAGEMENT

$95k

Software

Industrial controls systems/equipment

$89k

$89k

$80k
$80k

By years of
engineering experience
35-39 years

$102,806

30-34 years

$100,654

25-29 years

$97,142

40+ years

$93,085

20-24 years

$92,819

15-19 years

$74,629

5-9 years

$72,155

10-14 years

$64,082

1-4 years

$46,666

Less than 1 year

ENGINEERING
MANAGEMENT

DESIGN & DEVELOPMENT

ENGINEERING

$91.5k

Consultant $90k

$103,414

$89k

$107k

Communications systems/equipment
Computer systems/boards/peripherals/software

$118k

Research & development

Test and measurement equipment
Contract design or manufacturing

By location
106k
94k

87k

88k

106k

95k

96k

92k
97k

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CONCERNS AT WORK
Seniority issues

#13

#1

Insufficient people to
get the job done

Management taking
company in wrong
direction

#12

#11

#2

Second sourcing
for components

Finding the optimal

components for my designs

#10 Shrinking

#3

product life
cycles

Time-to-market
pressures

Politics at work

#9

#4
#8

Having to compromise
my design approaches

Lack of design
management
direction

#7

Competitive
market
pressures

@$#%

#6

#5

Insufficient funding
for projects

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Inability to
adequately test
products

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JOB SATISFACTION
The
average
engineer
works

41

66%
Feel adequately
compensated

hrs/week
at the office

and at home and

other locations

The majority of engineers worked 41 to 45 hours per

week (34.8%) and are satisfied with their jobs. Most
work stays at the office, with only 31.7% working 1 to
5 hours at home. When it comes to travel, most
engineers stay put, with 66.6% of engineers working
in one primary location and 69.4% having no work
responsibilities during non-business hours. Their
current job satisfaction is high with 90% feeling
satisfied to extremely satisfied at their current jobs.
They acknowledge the challenge engineering brings
and how it provides them several job opportunities in
engineering and beyond.

Reasons engineers would leave the profession

Pursue other interests or opportunities 33%
Try something different
33%
To make more money
24%
Do something more fulfilling or satisfying 24%
Do something less stressful
23%
Start a business
23%
Burnout
22%
Have more freedom/free time
22%

Most important factors

in job satisfaction

Feel compensation should

increase on average by

Job Satisfaction

19%

Extremely satisfied

21%

Very satisfied

32%

Satisfied

35%

Not very satisfied

10%

Not at all satisfied

2%

Have considered leaving the profession 34%

An engineering education, I think, serves as
a good background for many future careers.
One can remain an engineer and be employed,
or the experience gained can be readily leveraged
into any other occupation if they discover that
engineering is not for them.

55.5%

1. Challenges that accompany the design of new products

feel sufficiently challenged

2. Researching potential design solutions

3. Opportunity to design products that can benefit society
4. The compensation you receive for the work you do
5. Working in team situations with peers

34%

6 . Pressures associated with solving design problems

7. Working independently of others
8. The recognition you get from others for the work you do

ENGINEERS TALKING
FROM THE PULPIT
The U.S. is falling behind in the field of engineering due to a
lack of skilled engineers. As the current crop of engineers
retires, the lack of skilled replacements should open the way
for skilled and talented engineers to advance. Quality of work
is still important at the end of the day. Companies usually want
to hire those that they trust have the skills and will use them
for the companys benefit.

feel somewhat
challenged

92%

My 13-year-old son wanted to do the same thing that I do

embedded engineering. I told him that is fine, but the
engineering field is much larger than this. Design of any type
is only limited by your imagination.

would recommend
the profession to
a young person

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8%

would not recommend

the profession to
a young person

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ISSUES KEEPING
ENGINEERS

In the long term, almost a quarter of engineers are concerned with

the overall health of the economyand its impact on not just their
company, but also their suppliers. Reductions in staff and job security
are factors as well. The biggest professional issue that keeps them up
at night is project deadlines, at 32%. This relates to other concerns that
deal with projects and their timelines, such as product quality/testing
issues and reliability.

32%

UP AT NIGHT

Looming
project
deadlines

16.5%

Product reliability
issues

29%

Dealing with
staff reductions

28%

17%

Concern about financial

health of company

25%
20.5%

Price/performance
issues

Concern about health

of economy

ENGINEERS TALKING IN THEIR SLEEP

Staying current
with new
technology

Product
quality issues

27%

There's a greater need for engineers in today's society. Additionally, it appears as though the
engineering workforce is aging, which creates a great opportunity for young engineers.
Testing design to prove that products will do what we want them to do over the long term.
Management making financial decisions on technical issues that they have little knowledge of that will
have long-term effects on the company.
It's not necessarily that my staff has been reduced, it is more that other departmental staffs have
been increased, which has put more requests into my folks for support work that I can't keep up
with adequately.
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THE NECESSARY EVIL OF

OUTSOURCING

OPINIONS ON OUTSOURCING
LOWER EMPLOYEE MORALE

40%

FEWER ENGINEERING JOBS AVAILABLE

37%

FEWER OPPORTUNITIES FOR ADVANCEMENT

34%

NEW HIRES AT REDUCED SALARIES

34%

OPPORTUNITY FOR MORE INNOVATIVE PROJECTS

23%

SKILLS VALUED LESS

30%

SALARY REDUCTIONS FOR EMPLOYEES

20%

IMPORTANT ASPECT TO BUSINESS GROWTH

13%

SKILLS VALUED MORE

12%

NEW HIRES TO SUPPORT OUTSOURCING EFFORTS

11%

US

Reasons companies
are outsourcing

44%

SAVE TIME

SAVE MONEY

5%

31%

44%

36%

NOT SURE

EASE
WORKLOAD

LACK OF
IN-HOUSE
TALENT

PUT EXISTING
RESOURCES
TO BETTER USE

Where jobs are going?

62%

CA
6%

CN
21%

EU
5%

IN

MX
13%
COMPANIES

32%

PAC
RIM
5%

16%
SA
5%

PLANNING TO
OUTSOURCE

7%

While outsourcing is a growing concern for

engineers, the majority of it stays within the
United States. The outsourcing of engineering
work is in the form of testing or design work to
outside engineering firms or contract houses.

JOBS BEING OUTSOURCED

52%
OF COMPANIES

OUTSOURCE WORK

DESIGN

49%

MANUFACTURING/ASSEMBLY

38%

SOFTWARE ENGINEERING/DEVELOPMENT

33%

CAD/CAE

32%

DRAFTING

29%

R&D
DESIGN VERIFICATION
PCB LAYOUT
SOFTWARE VERIFICATION/TEST
FINAL TEST
INCOMING INSPECTION

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16.5%
15%
14.5%
11%
9%
3.5%

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CONTINUING

#1 obstacle to staying
current with information:

Finding the time.

EDUCATION
COLLEGE

Which forms of education does your

company reimburse you for?
Trade shows/conferences
60%
Seminars
55%
College tuition
49%
Certifications
35%
Online training
32%
Engineering association dues
31%
Engineering textbooks
30%
Publication subscriptions
23%

Finding the time to continue their education is the number one challenged faced by
engineers today. The balancing act between their work and personal lives leaves little
time to continue with the current trends in the world of engineering. Engineers have
turned to online based methods of continuing their education. Online seminars,
webcasts, electronic white papers, and technology focused websites are the main
methods they stay up to date.

How engineers are keeping up

Engineering/technology publications

65%

White papers

58%

Webcasts

57%

Seminars

55%

Engineering videos

54%

Engineering/technology websites

49%

Trade shows/conferences

46%

Vendor-sponsored education

40%

Engineering textbooks

36%

In-house educational programs sponsored

by your company

24%

E-books

23%

Engineering association-sponsored meetings

21%

User group meetings/Meetups

20%

Online discussion forums

18%

Online college courses

In-classroom college courses

15%
8.5%

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PREPARING FOR

THE INTERNET OF THINGS

Importance of security in products

Somewhat

26%
Not very

How important
willsecurity be in
future products ?

39%

35%

MORE

SAME

LESS

57%

4%

The Internet of Things is ushering a new wave of technology.

As devices become wireless and interconnected, many new jobs will
open up for engineers as well new devices such as smartphones and
tablets becoming common place on the engineering floor. Engineers
will continue to be in high demand as the technology expands.

If yes, which engineering specialties?

13%

DIGITAL
POWER

6%

RF

SOFTWARE

48%

do not have
difficulty
finding qualified
candidates

EMBEDDED

10%

12%

23%

Very

9%

38%

51%
of organizations
have difficulty
finding
qualified
candidates

68%

36.5%

ANALOG

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SYSTEMS
ENGINEERING

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TEST AND MEASUREMENT

61%
Think their company
invests sufficiently in
test equipment

9%

Companies that have

replaced box test instruments
with modular solutions

60%

Think their company

offers sufficient training
and documentation

55%

Think testing is a
significant challenge
in terms of time
consumption

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