Quality Progress 2012 Salary Survey About Max Christian Hansen • • President, Bright Hat Communications, Inc. Specialties: – – – – • Oral and Written Communications Ghost-writing: technology and business strategy Data Quality Entrepreneurship, tech startups Educated: – Northwestern University – MIT Sloan School of Management • Clients include: – Hewlett Packard, Cambridge Incubator, Harbor Research, Media General, Domtar Fine Papers, Weyerhaeuser Forest Products, Sun Microsystems • Publication venues: – Harvard Business Review – Conference on Information Quality, MIT Summary: 1: Overview of the survey 2: Determinants of salary 3: Value of education Overview of the Survey Reports • Report 1 – Overview article - focus on education • Report 2 – Introductory essay – Part 1: Employees of organizations - 20 sections – Part 2: Independent consultants - four sections • Within each section: – One or more probable determinants of salary – Separate treatments of U.S., Canada – Other countries in a few sections NOTE: Only four sections are in QP; the rest are in online document. Salaries are Stalled Yearly changes in salary for full-time workers in the U.S. 2009 2010 2011 2012 $83,442 $85,383 $87,086 $86,743 Percent increase in mean 2.41% 2.33% 1.99% -0.28% Median salary 80,000 81,816 83,986 83,000 Percent increase in median 3.14% 2.27% 2.65% -1.17% Mean salary Note: Change in mean salary not statistically significant (p > 0.6). Continued Economic Recovery • What we asked: – What steps has your organization taken? • • • • • • • Pay cuts Salary freeze No bonuses Furloughs Layoffs Hiring freezes Reduced or cut 401K (or similar) employer contributions Reports of Cost-cutting Measures 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 2012 Percentage of respondents reporting any cost-cutting measures by their companies Employees Not Expecting a Raise (U.S. and Canada) Determinants of Salary • • • • Supervisory responsibility Experience in quality Education level Education combined with experience in quality Salary by Number of Employees Overseen (U.S.) Experience in Quality (U.S.) Level of Education and Experience (U.S.) Salary # of ASQ Certifications (U.S.) Control Levers Variable Controllability Effectiveness Highly controllable High, especially in combination with experience in quality. See sections 1617. Certifications / Six Sigma training Highly controllable Variable, but very high when certification matched to position. See section 4. Also see “Land the Big One” on page 20 of the December, 2011 Quality Progress. Supervisory responsibility Dependent on "soft skills" High effect. Supervising others brings clear rewards. See section 10. Eligibility for overtime Somewhat controllable Usually a byproduct of other factors: overall responsibility, supervisory duties, etc. See section 7. Years in quality Stick with it! High, especially in combination with education. See sections 3, 9, & 17. Education level Control Levers (continued) Variable Company Controllability Dependent on circumstances. Geography may constrain choice of company. Industry Dependent on circumstances Geographic location Dependent on circumstances Age Stick with it! Effectiveness Bigger companies often pay better. See section 11. "Hot" industries tend to come and go, but long-range disparities do exist. Usually a matter of finding a fit with a company. Salaries tend to increase with age until the highest age brackets. See section 19. None Decreasing with time—gender disparities are smaller in recent years and among recent hires. See section 19. Years in current position Stick with it! Low. Seniority in a position is not nearly as well-rewarded as experience in the quality profession. Independent consulting (as it affects salary in regular employment) Dependent on circumstances Usually low. See text for explanation. Gender To learn more… About Max Hansen: • Bright Hat Communication, Inc • Toll-free: (866) 496-4135 • http://bright-hat.com • Email: mchristianhansen@bright-hat.com About ASQ and the Salary Survey: • Go to www.QualityProgress.com • Search ASQ’s Knowledge Center @ • www.asq.org/knowledge-center/search/ • Contact pbaez@asq.org To learn more about our Sponsor, go to: • www.meirxrs.com