- Engineering salaries and bonuses were expected to increase.
- COVID-19 accelerated technology innovation.
Engineers expect to get paid more in 2021 ($108,096 in 2021 compared to $102,669 in 2020, $101,450 in 2019 and $100,339 in 2018), and 62% expected a 2021 salary increase, down slightly from 69% in 2020, and down from 74% among 2019 respondents, according to the 2021 Control Engineering Career and Salary Survey and Report. While survey respondents differ from year to year, the increase in salaries run counter to respondents’ pessimism about increases. This is perhaps due to respondents undervaluing their worth. Also, many respondents work in industries deemed essential, which can create more competition for their talents.
The Control Engineering 2021 Career and Salary Report is sponsored by Miller Resource Group. Click here to download the full report.
Top threat to manufacturing businesses remains lack of available skilled workers, at 37% in a statistical dead heat with the economy at 35%; lack of necessary materials was 27%, reflecting pandemic-related supply chain pressures. (In 2020, lack of skilled workers was 42% followed by competition and the economy tied at 32%, which was similar to 2019.)
This 2021 survey included four questions on COVID-19 impacts. In 2020, respondents answered the survey largely before COVID-19 impacts. In the 2021 survey, most didn’t think the pandemic changed salaries or benefits, but a whopping 92% expected technology innovations implemented as a result to accelerate or continue. (See section on COVID-19 innovation acceleration.)
Finally, an overwhelming majority (78%) consider manufacturing to be a secure career. Two-thirds (66%) love or like their current jobs, with 35% loving their current jobs and 31% liking what they do, but would consider switching companies for the right opportunity.
Research for the 2021 Control Engineering Career and Salary Report resulted from an emailed survey to subscribers, producing 151 qualified responses from March 26 to April 5, for a margin of error of +/-8.0% at a 95% confidence level. Survey respondents were invited to anonymously provide their annual compensation information and opinions on the current state of their facilities and industries.
Engineering salary increases
During times of economic challenge, financial compensation becomes more important among factors impacting job satisfaction. In 2021, technical challenge, financial compensation and feeling of accomplishment finished in a statistical dead heat – within the margin of error.
As Figure 1 shows, 51% expect a salary increase of up to 3% in 2020 (52% in 2020; 63% in 2019; 56% in 2018); 14% expect an increase of 4% or more (18% in 2020; 11% in 2019; 19% in 2018); 32% expect the same (30% in 2020; 25% in 2019; 23% in 2018); and 3% expect a salary decrease (1% in 2020 and 2019; 2% in 2018). Additionally, the 2021 survey noted that of the increases above 4%, 8% of respondents expect a 4 to 6% increase, and 6% said more than 6%, compared to 12% and 5%, respectfully in 2020.
Positive outlook could add salary pressure
While COVID-19 created economic contraction in March 2020 to 49.1 on the purchasing manufacturers’ index (PMI) from the Institute of Supply Management (ISM), dipping to 41.5 in April (below 50 is contraction), March 2021 looked very positive at 64.7%. Upward salary pressures can result from strong U.S. manufacturing results, coupled with demographic pressures of an aging workforce and too few going into science, technology, engineering, and math (STEM)-related professions.
In the Control Engineering Career and Salary Survey and Report, among reasons for outsourcing functions, the shortage of skilled workers ranked third at 36% behind cost management at 42% and better focus on core competencies at 54%.
What functions were outsourced? Control panel build/wiring/fabrication was most the most outsourced at 33% followed by information technology at 25%, system integration at 19% and maintenance at 18%.
Engineering salary, bonus details
For base salary compensation, the minimum was $28,000 ($24,000 in 2020), and the maximum was $250,000 ($800,000 in 2020), for 148 survey respondents providing this information.
For non-salary compensation (Figure 2), 23% expect an increase (28% in 2020); 12% expect an increase of 4% or more (same in 2020); 62% expect about the same (about the same, 60%, in 2020); and 15% expect less (12% in 2020). Among the 12% expecting 4% or more, 8% expect 4 to 6% and 4% expect more than 6%.
For non-salary compensation, the 2021 average received for the most recent fiscal year among 148 respondents was $12,838 (Figure 3), compared to $11,937 reported from 2020 respondents.
Engineering bonus criteria
Two leading criteria for non-salary compensation were company profitability and personal performance, tied at 56% (Figure 4). In 2020, it was 53% for profits and 43% for personal performance. After economic pressures of 2020, 2021 incentives may emphasize profits to a greater degree. Rounding out the top five criterial for non-salary compensation were product productivity, plant or line productivity and new business.
Engineering job satisfaction, skills needed
As mentioned, the leading job satisfaction factors in 2021 (Figure 5) are technical challenge, financial compensation and feeling of accomplishment, in a statistical tie. (Respondents were asked to rank the top three.)
In 2020, financial compensation was the most important followed by technical challenge, feeling of accomplishment, and relationship with colleagues.
Going down the 2021 list, other attributes included job security, flexible work hours, benefits, ability to work from home, relationship with boss, feeling of recognition, relationship with colleagues, advancement opportunities, and location. Figure 5 show eight more factors for job satisfaction.
For skills needed to get ahead, respondents were asked to check as many as apply. Engineering skills, project management skills and communication/presentation skills were in a virtual tie for first among respondents (68%, 66% and 61%, respectively). Next were computer skills at 57% and team building skills at 46%. Considerably lower were language skills (24%), marketing/sales skills (20%), finance/accounting skills (15%) and recruitment skills (7%).
See related article on job skills advice from respondents with a graphic of skills needed to get ahead.
About half (52%) of respondents studied electrical or electronic engineering, while disciplines of mechanical engineering (23%), controls engineering (19%), and instrumentation (17%) were statistically tied for second. Chemical and industrial engineering were tied at 13%, civil engineering was 2% and other was 15%.
Applying engineering, automation
About one third of respondents, 36%, have fully implemented a program to evaluate and optimize processes to appropriately consider and apply automation and controls. The next largest group was 26%, who had no such plans; 10% said not yet, but soon; 12% more plan to study these issues.
A question asked about automation plans in relation to other key areas. Measuring maturity levels, those in the “mature” development stage were 61% safety, 46% management, 43% cybersecurity, 42% maintenance, 21% process evaluation for consideration of more or upgraded automation and controls, 9% Industrial Internet of Things (IIoT) and 7% said Industry 4.0.
COVID-19 accelerates innovation, tightens job market
As mentioned, COVID-19 has accelerated technology applications of remote connectivity for 68% of respondents, digitalization for 39%, cybersecurity for 32%, and use of automation and controls for 19% (Figure 6).
For the four areas, the largest boost was up to 6 months acceleration for 68% of respondents, then greater than 1 year boost for 51%, and 6 months to 1 year for 39%.
When or if the pandemic subsides, 92% of respondents expect COVID-19 technology innovations to continue or accelerate; 11% said they expect those innovations to accelerate, 34% expected them to continue at a similar pace, and 47% continue at a slower pace. Only 7% of respondents expected technology gains to reverse.
Most respondents, 62%, didn’t think COVID-19 pandemic changed salary or benefits, 27% said it decrease, 7% increased and 4% unknown (Figure 7).
With many manufacturing sites unable to fill skilled positions, COVID-19 has made it more difficult for 76% of respondents to find qualified employees. However, a quarter (25%) of respondents said it was easier to find qualified employees.
Mark T. Hoske is content manager, Control Engineering, CFE Media and Technology, firstname.lastname@example.org. Amanda Pelliccione, director of research and awards programs for CFE Media and Technology, conducted the research and assembled the related report.
KEYWORDS: Engineering salary survey, career advice
Engineering salaries and bonuses were expected to increase.
COVID-19 accelerated technology innovation.
How are you using engineering talents to advance your company’s objectives? Do those evaluating you know?
2021 Control Engineering Career and Salary Survey and Report
BENCHMARKING SECTION: See how your salary compares by these criteria: Age, education, years with current employer, years in current industry, engineering discipline, hours worked, facility size, employees managed and primary job function.
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