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Management
>> Salary Benchmark Report
BY JOE TERRETT, EDITOR
I
t’s been a rough couple of years for
manufacturers but executive and
management-level pay in the sector
dominated by small and medium-sized
enterprises (SMEs) rose almost 4% in
2010 after a dismal 0.8% increase in
2009, according to the results of a new
national survey of Canadian companies.
This first salary benchmark survey
conducted by the Excellence in Manufacturing Consortium (EMC) and Canadian
PLANT magazine, a Rogers Media
publication, gathered 605 responses from
executives and managers at companies
across Canada, 42% of them noting some
change in employment status following
the economic downturn. Nonetheless,
they are satisfied with job security, compensation and work-life balance.
“This is consistent with what we’re
hearing from manufacturers,” says Al
Diggins, president and general manager
Plant pay
takes a
HIKE
of EMC, a not-for-profit consortium
of Canadian manufacturers. “A lot of
it speaks to what’s happening inside
the buildings where people are saying
they’ve had to take on more responsibilities following lay offs and cutbacks.”
Most respondents (72%) had a management role in their companies, while
18% identified themselves as having an
ownership stake. Their businesses cover
a range of interests from fabricated
metals to sophisticated electronics with
14.4% identifying their organizations
as large (more than 500 employees)
and the rest as SMEs. About 65% of the
respondents work in non-union plants,
and almost 30% work in plants that are
at least partially unionized. The results
show managers working in the unionized
Survey says management
is salary-satisfied and
feeling balanced
By Joe Terrett, EDITOR
I
t’s been a rough couple of years for
manufacturers but executive and
management-level pay in the sector
dominated by small and medium-sized
enterprises (SMEs) rose almost 4% in
2010 after a dismal 0.8% increase in 2009,
according to the results of a new national
survey of Canadian companies.
This first salary benchmark survey
conducted by the Excellence in Manufacturing Consortium (EMC) and Canadian PLANT magazine, a Rogers Media
publication, gathered 605 responses from
executives and managers at companies
across Canada, 42% of them noting some
change in employment status following
the economic downturn. Nonetheless,
they are satisfied with job security, compensation and work-life balance.
“This is consistent with what we’re
hearing from manufacturers,” says Al
Diggins, president and general manager
of EMC, a not-for-profit consortium of Canadian manufacturers. “A lot of it speaks
to what’s happening inside the buildings
where people are saying they’ve had to
4 Canadian PLANT
AVERAGE MANUFACTURING SALARIES 2010
605 respondents
Title
Plant manager
Administrative management
Engineer
Director
Vice-president
Owner/partner
CEO/president
Purchasing/supply management
Technician/technologist
Maintenance manager
Materials manager
QA/Safety manager
Production manager/supervisor *
General manager*
Operations manager*
Co-ordinator*
Sales*
Supervisor*
Other *
No answer
Total
2008
$94,200
$72,600
$79,900
$99,200
$128,900
$139,100
$135,400
$68,800
$74,300
$95,800
$70,200
$63,200
$73,800
$114,100
$64,400
$63,300
$120,000
$53,000
$69,000
na
$92,200
2009
$96,900
$73,100
$81,200
$103,900
$132,800
$137,900
$142,000
$72,100
$73,000
$74,400
$67,900
$63,700
$72,900
$118,700
$63,400
$62,500
$110,000
$53,500
$70,700
na
$92,900
2010
$101,000
$75,500
$81,700
$111,500
$136,000
$141,400
$153,700
$75,400
$75,200
$76,600
$69,600
$67,200
$78,200
$116,500
$63,400
$64,800
$150,000
$51,000
$72,800
na
$96,600
% responses
21.3%
17.9%
7.1%
6.4%
6.4%
6%
5.1%
4.5%
4.1%
3.8%
3%
2.3%
1.8%
1.3%
0.8%
0.7%
0.3%
0.3%
1%
5.8%
100%
* Very small sample, review with caution.
10 Canadian PLANT
January/February 2011
U
C
T
H
en
mo
T
$96
inc
it’s
pre
To
Pre
ing
pla
at
an
sal
Th
($1
dir
($1
E
ma
ad
sup
age
be
ma
A
A
$
$
$
$
$
$
$
N
d
Predictably, the big money is going to owners, senior executives and
plant managers who all weighed in
at more than $100,000 a year. CEOs
and presidents are at the top of the
salary hierarchy, averaging $153,700.
They’re followed by owners/partners
($141,400), vice-presidents ($136,000),
directors ($111,500) and plant managers
($101,000).
Engineers average $81,700, while
many of the other categories, including
administrative management, purchasing/
supply management, maintenance managers, and technician/technologists earn
between $75,000 and $77,000. Materials
managers average just under $70,000.
A variety of factors provide an upward
NUMBER OF EMPLOYEES
605 respondents
1,000-4,999
5.5%
>5,000
3.1%
No reply
4.8%
< 50
31.6%
500-999
5.8%
>500
14.4%
250-499
11.2%
50-249
38%
Most manufacturing companies are SMEs, with
almost 70% employing under 250 people.
BONUSES AND INCENTIVES
605 respondents
Average salary % of salary
$80,200
0%
$68,800
0.1%-0.9%
$72,400
1%-2.9%
$81,900
3%-5.9%
$94,800
6%-10.9%
$113,300
11%-19.9%
$169,900
20%+
No answer
% replies*
43%
0.7%
5.6%
9.1%
13.1%
9.1%
12.1%
7.4%
take on more responsibilities following
lay offs and cutbacks.”
Most respondents (72%) had a maninfluence on salary levels, including
agement role in their companies, while
company revenue, years of experience,
18% identified themselves as having an
education, and the kind of products
ownership stake. Their businesses cover a
made (paper and wood, and chemirange of interests from fabricated metals
cals and pharmaceuticals top the list).
to sophisticated electronics with 14.4%
Because of the lopsided mix of men and
identifying their organizations as large
women, the results also show it pays to
(more than 500 employees) and the rest
be a guy: there’s a 31% gap between the
as SMEs. About 65% of the respondents
sexes.
*work
Very small
sample, review
with caution.
in non-union
plants,
and almost 30%
A bit less than half the respondents
work in plants that are at least partially
report a portion of their pay made up
unionized. The results show managers
working in the unionized environments
make an average of 12.5% more than
those in non-unionized plants.
The average salary for all titles is
$96,600, which represents a 3.98% increase over 2009 and as of October, it’s
ahead of the 2.4% inflation rate in the
preceding months.
Average
salary
Top
earners
Predictably,
the big money is going to
Stone, concrete, glass*
owners, senior executives and plant man-
January/February 2011
OTHER COMPENSATION
605 respondents
OVERTIME PAY
605 respondents
Overtime pay
6.3%
2/7/11 3:41:55 PM
19%
Company vehicle
6%
Stock options
No answer
14.7%
27%
Profit sharing
5%
Club memberships
4%
Private health care
2%
Bonuses
2%
Car/gas allowance
1%
1%
1%
Benefits/insurance
RRSP contributions
Pension
1%
Travel expenses
2%
Other
45%
Nothing else
No overtime pay
79%
Very few respondents receive overtime pay. Of
those that do, the percentage of their overall pay
ranges
below onereceive
to more
than 20.pay. Ofthose
Very
fewfrom
respondents
overtime
that do, the percentage of their overall payranges from
below one to more than 20.
8%
No answer
0
10
20
per cent
30
40
50
Profit sharing and a company vehicle topped the “other compensation” list.
* Very small sample, review with caution.
www.plant.ca
Canadian PLANT 5
Management
>> Salary Benchmark Report
WHAT COMPANIES PAY FOR
605 respondents
Companies tend to support
professional development,
especially specific courses.
Educational courses
68.9%
Professional certification programs
49.4%
Membership in professional associations
56%
None of these
15.9%
No answer
5.3%
0
10
20
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John Hayward, President, Hayward Gordon Ltd.
A Canadian manufacturer/distributor
* Very small sample, review with caution.
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30
40
per cent
50
60
70
80
agers who all weighed in at more than
$100,000 a year. CEOs and presidents are
at the top of the salary hierarchy, averaging $153,700. They’re followed by owners/partners ($141,400), vice-presidents
($136,000), directors ($111,500) and plant
managers ($101,000).
Engineers average $81,700, while many
of the other categories, including administrative management, purchasing/supply
management, maintenance managers, and
technician/technologists earn between
$75,000 and $77,000. Materials managers
average just under $70,000.
A variety of factors provide an upward
influence on salary levels, including company revenue, years of experience, education, and the kind of products made
(paper and wood, and chemicals and
pharmaceuticals top the list). Because
of the lopsided mix of men and women,
the results also show it pays to be a guy:
there’s a 31% gap between the sexes.
A bit less than half the respondents
report a portion of their pay made up
of bonuses and incentives, with those
showing the highest percentage (20% or
more) averaging $169,000. Perks or extras
include profit sharing for 27%, a vehicle of
some kind for 19%, stock options for 6%
and club memberships for 5%, but 45% report no extras.
More than a third of the respondents
(34%) do not see any changes in manufacturing salary trends, while 18% said more
skills and experience are required, but
11% see salaries going up.
The typical respondent’s age is just shy
of 48 with 21.8 years of experience in
www.syspro.com
6 Canadian PLANT
January/February 2011
SALARY BY MAJOR PRODUCTS MANUFACTURED
605 respondents
manufacturing. Forty-one percent have
a university degree, 41% have a college
or trade/technical school diploma and
13% have a high school education or less.
They’re a hard-working lot, too. The average workweek is 47.6 hours.
Most respondents (65.5%) are in the
36-55 age category, 38.5% of those are
46-55; and 16.4% are 56-63. These results
suggest a significant segment of the companies’ experienced people will be leaving
the sector over the next decade.
99.1
Fabricated metal products
87.6
Machinery, equipment
99.5
Food, beverage, tobacco
95.9
Plastic, rubber
90.0
Automotive
106.8
Paper, wood
91.8
Printing
98.5
Computers, electronic
79.0
Transportation equipment
100.2
Chemicals, pharmaceuticals
96.7
Primary metals
98.7
Textiles, footwear, clothing*
Aging workforce
79.6
Stone, concrete, glass*
100.9
Petroleum*
75.7
Furniture*
119.3
Electrical*
75.6
Household/personal care*
100.4
Aerospace*
70
75
80
85
90
95
100
105
110
115
120
average salary
* Very small sample, review with caution.
Your industry may have an impact on your salary level. The survey sample indicates higher salaries are paid to
those who make paper and wood, and chemical and pharmaceutical products.
SALARY BY COMPANY REVENUE
605 respondents
83.6
Less than $10M
66.5
Less than $1M
74.4
$1M-$4.9M
98.5
$5M-$9.9M
100.1
$10M-$49.9M
95.7
$10M-$24.9M
106.8
$25M-$49.9M
113.0
$50M-$249.9M
115.2
$50M-$99.9M
109.4
$100M-$249.9M
108.4
$250M or more
89.4
$250M-$499.9M
116.2
$500M-$999.9M
118.3
$1B or more
0
20
40
60
thousands of dollars
80
100
120
Looking at companies according to revenue shows bigger isn't necessarily better, but from $500 million and up, it
does.
www.plant.ca
When EMC does a presentation that
touches on the aging workforce, the
accepted thinking is that for every two
people who retire, less than one fills the
vacancy, which means greater reliance
is placed on new Canadians or making up for the shortfall elsewhere in the
economy, says Scott McNeil-Smith, EMC’s
director of marketing and development.
The potential impact on salaries?
“Salaries won’t necessarily be in the top
range for younger people with less experience moving in to replace the longer-term
people,” says McNeil-Smith.
However, he says companies breaking
into new markets, especially abroad, will
need people with specific skills, such as
languages, experience doing business or
familiarity with customs in a target market, or abilities on the shop floor related
to developing products that meet various
international standards.“There’s an opportunity for people to raise their salary
levels based on these types of skills.”
Most respondents (86%) are happy with
their jobs. Both a competitive salary and
a healthy work life balance lead the job
priorities list for 94%. Sevety-three per
cent are happy with their pay and 78%
are feeling balanced. Ninety-one per cent
want a healthy benefits package and 76%
said they have one. Job security is key for
89% and 84% do feel secure. Vacation time
is important for 89% and 78% are satisfied with their time off. Bottom of the list
is career development for 80% with 67%
Canadian PLANT 7
.
Management
Plant pay
takes a HIKE
>> Salary Benchmark Report
GENDER GAP
605 respondents
120,000
$101,200
100,000
average salary
SURVEY SAYS MANAGEMENT
$77,300
80,000
60,000
IS SALARY-SATISFIED AND
40,000
FEELING BALANCED
20,000
0
Male
77.4 %
Female
19 %
It pays to be a guy in manufacturing. The wage gap
between the sexes is 31%.
* Very small sample, review with caution.
declaring themselves satisfied.
The job satisfaction responses caught
the eye of Justin Graham, a senior research manager for the Rogers Connect
Marketing
team.
of EMC, aResearch
not-for-profi
t consortium
“Given
the
impact
of
the recession
of Canadian manufacturers.
“A lot ofover
the
last
couple
of
years,
it’s
interesting
it speaks to what’s happening inside
that
satisfaction
with are
job saying
security
the overall
buildings
where people
(84%
satisfied,
35% very
satisthey’ve
had toincluding
take on more
responsibilified)
is
the
highest
ranked
influencer
ties following lay offs and cutbacks.”of
LEVEL OF EDUCATION
605 respondents
University degree
College diploma
Trade/technical
High school or less
Average
salary
$102,900
$85,100
$95,100
$97,700
% replies
40.7%
25.8%
14%
12.7%
Most respondents (72%) had a manenvironments make an average of 12.5%
agement role in their companies, while
SALARY
BY
EXPERIENCE
more than those in non-unionized plants.
18% identified themselves as having an
respondents
The average salary for all titles is
ownership stake. Their businesses605
cover
m
120,000
$96,600, which represents
a range of interests from fabricated
$108,400 a 3.98%
$103,900
increase over 2009 and as of October,
metals to sophisticated electronics with
e
100,000
it’s ahead of the 2.4% inflation rate in the
14.4% identifying their organizations
$85,800
$85,900
preceding months.
as large (more than 500 employees)
$72,000
and80,000
the rest as
SMEs. About 65% of the
mrespondents work in non-union plants,
Top earners
60,000
and almost 30% work in plants that are
Predictably, the big money is goat least partially unionized. The results
ing to owners, senior executives and
40,000
show
managers working in the unionized
plant managers who all weighed in
at more than $100,000 a year. CEOs
20,000
and presidents are at the top of the
salary hierarchy, averaging $153,700.
ACTURING SALARIES 2010
They’re followed by owners/partners
espondents0
5 years or less
6-9 years
10-19 years ($141,400),
20-29 years
30+ years
No response
vice-presidents
($136,000),
6.3%
5.1%
29.1%
29.9%
26.4%
3.1%
directors ($111,500) and plant managers
08
2009
2010
% responses
($101,000).
,200
$96,900
$101,000
21.3%
beauty. The more
experience you
have, the higher your
salary. average $81,700, while
Engineers
,600 Age before
$73,100
$75,500
17.9%
many of the other categories, including
,900
$81,200
$81,700
7.1%
administrative management, purchasing/
,200
$103,900
$111,500
6.4%
8 Canadian PLANT
supply management, maintenance man,900
$132,800
$136,000
6.4%
average salary
cn
AGE OF RESPONDENTS
job satisfaction,”
says Graham.
605 respondents
The recession
has also influenced their
<35
No reply He observes
feelings about training.
most
9.4%
6%
>65
of the respondents
(38%)
cited
productiv2.8%
ity or continuous improvement as an area
requiring additional work.
56-65
They were asked what it takes to do
16.4%
their jobs and people skills ranked most
important by a landslide, according to
44% of those surveyed.
“In contrast the second most important
skill, industry specific technical skills, is
cited by just one-in-ten (10%),” says Graham. Even farther back are productivity/
continuous improvement (8%), financial
36-55
65.5%
and project management (both 7%) and
analysis
(6%).
Look
for a signifi
cant drain of experienced employees
Diggins
views
on people
within 10 years.
Of thethe
36-55focus
age group,
38.5% are
skills,
somewhat
taken
for
granted in the
46 to 55.
past, as prudent. With ongoing shortages
of skilled people and impending retirements among baby boomers, he says comNUMBER OF EMPLOYEES
panies need to do the best they can with
605 respondents
the people they have. There will be much
No
reply on. “Keeping
more head hunting
going
>5,000
4.8%
3.1% will depend on keeping
the right people
< 50
1,000-4,999
31.6%
people
happy.”
5.5%
500-999
5.8%
Optimistic
about the future
Many of the companies (45%) said revenues were up from 2009, 16% said they
>500
14.4%
January/February 2011
WHERE THEY’RE FROM
605 respondents
Other
Yukon, NWT, 1.2%
Nunavut
0.2%
NUMBER OF EMPLOYEES
605 respondents
No answer
Atlantic
5%
9.9%
Quebec
4%
West
12.4%
1,000-4,999
5.5%
>5,000
3.1%
No reply
4.8%
< 50
31.6%
500-999
5.8%
>500
14.4%
250-499
11.2%
50-249
38%
Ontario
66.9%
Most respondents come from Ontario, manufacturing’s heartland.
were the same while 18% reported a decrease. And they are optimistic about the
future. Over the next five years 64% plan
to invest in new production equipment
and processes, 58% will be hiring more
Most manufacturing companies are SMEs, with
almost 70% employing under 250 people.
employees, 33% will be entering new geographic markets and the same percentage
will be adding new lines of business.
There are some issues that concern
respondents. First for 59% of them is
cost control, followed by skills shortages
(43%), reorganization (30%), technology
upgrades and forecasting (both 29%), supplier relationship management (25%) and
capacity shortages (23%).
Average salary
* Very small sample, review with caution.
YEARS OF EXPERIENCE
605 respondents
EMPLOYMENT SITUATION
605 respondents
25
Hours reduced
3%
Same company,
different job 4%
21.8
20
Stone, concrete, gl
New company
3%
years
Promoted
6%
15
13.2
9.2
10
5
0
In
manufacturing
Current
company
Current
job
Executives and managers tend to be longer-term
employees.
* Very
small sample, review with caution.
www.plant.ca
Same salary;
more responsibility
26%
No change
56%
Employment conditions are unchanged for more
than half of the respondents.
Canadian PLANT 9
Management
>> Salary Benchmark Report
AGE OF RESPONDENTS
605 respondents
>65
2.8%
No reply
6%
MOST SIGNIFICANT SHORT-TERM ISSUES
605 respondents
<35
9.4%
Cost control
59%
Skills shortage
43%
Reorganization
56-65
16.4%
30%
Technology upgrade
29%
Forecasting
Supplier relationship
management
Capacity shortages
Environment/corporate
social responsibility
Risk management
29%
25%
23%
19%
19%
17%
IT issues
12%
Overseas sourcing
36-55
65.5%
Look for a significant drain of experienced
employees within 10 years. Of the 36-55
age group, 38.5% are 46 to 55.
0
20
10
30
40
50
60
per cent
Manufacturers continue to find cost control a significant challenge.
* Very small sample, review with caution.
MORE TRAINING NEEDED
605 respondents
HOURS WORKED PER WEEK
605 respondents
Productivity/
continuous improvement
Financial
50
42%
38%
31%
28%
People skills
40
26%
per cent
Project management
24%
Negotiation skills
30
23%
Planning
22.6%
23%
Technical skills
20
15.5%
18%
Analysis
16%
Sales skills
10
8.3%
1.7%
0
Less
than
40
40-49
50-59
60-69
1%
Other
5%
More
No
than answer
70
They’re a hard-working bunch. Only 5% put in
les than 40 hours per week.
4%
Nothing
0
5
10
15
20
25
30
35
40
per cent
More than a third (38%) of respondents need to sharpen productivity and continuous improvement skills.
* Very small sample, review with caution.
“Cost containment is a big issue,” says
McNeil-Smith. “Turning cost centres into
profit centres is one way to keep a lid on
things.”
He cites, as an example, the purchasing
co-operative EMC established in the London, Ont. area that will pool purchases of
10 Canadian PLANT
several manufacturers for savings that fall
directly
to sample,
the bottom
* Very small
reviewline.
with caution.
These are all areas EMC has been addressing, says McNeil-Smith. “But one of
the most asked questions from members
has to do with how to benchmark salaries. The results of this survey will help
them access that important information.”
The survey, fielded in late November
and early December, has a +/-3.3% margin
of error, 18 times out of 20.
Comments? E-mail joe.terrett@plant.
rogers.com.
January/February 2011