What a difference a year makes. After two banner years of high profits, no layoffs, and expansion, economic anxiety has crept into the workplace. With the U.S. economy showing signs of weakening and disappointing earnings, many EE-Evaluation Engineering readers are questioning the security of their jobs.
A total of 55% of the people surveyed said they are not as secure in their job this year as they were last year, a 15 percentage-point increase from readers who responded in 2000. The survey also revealed that 54% of the respondents are only somewhat satisfied or not satisfied with their overall job security.
With the cost of living swelling, the good news is that wages are rising. According to the 335 readers who responded to the 2001 survey, the median salary is $68,000, a 4.6% increase over last year. However, that increase is small compared to the 2000 survey median salary that rose by 8.3% over the previous year.
Those living in the Pacific region of the country are making the most, with a median salary of $81,000, followed by the mountain area with $70,000 and the southeastern states with $67,000. Readers in the central and northeastern sections of the nation reported a median salary of $65,000.
Generally, more years worked in the electronics industry means higher salaries (Figure 2). Respondents who have worked more than 30 years are making the most money in 2001, with a median salary of $81,000. Those who have logged 25 to 29 years in the electronics field have a median salary of $72,000, and readers with 20 to 24 years of employment in the industry earn a median wage of $75,000.
Does Company Loyalty Promise Job Security?
Working more years in the electronics industry may bring you a higher salary, but does it also mean more job security as it did for workers in the past? Here is what a few EE readers had to say.
“I have worked for Orbital Sciences for 17 years, in the same division for 12 years, and for the same manager for 10½ years, but that doesn’t guarantee job security,” said Dale Roberts, a manufacturing process engineer at the Beltsville, MD, facility. “In general, I feel most companies are not as loyal to employees as in the past. It used to be that the employer would cross-train you, and if times became lean, the company would go out of its way to hold onto employees.
“Today, most companies are only worried about the bottom line. If the profit margin falls below the expected number, the company has to bring those numbers up, which can translate into layoffs,” he said.
Orbital Sciences is an aerospace manufacturer that produces satellites, launch vehicles, black boxes, tools used for space-servicing missions, and the robotics arm used on the space shuttle. The company has annual sales of more than $100 million. But like many other corporations, it has experienced low earnings this year.
Typical job duties for Mr. Roberts include writing specs, documenting processes, performing and monitoring calibration, and surface-mount profiling. He also supervises the machine shop and facility areas.
Partially blaming the lagging economy, Mr. Roberts indicated a low level of satisfaction with his job. “My dissatisfaction is due to low pay, long hours, and the fact that every job has to be completed immediately,” he said. “Most companies now ask engineers to work 60-plus hours a week, every week.”
Lack of Profits Fosters Lack of Job Satisfaction
After two years with more than 70% of EE readers expressing job and career satisfaction, this year’s salary survey showed a decline in this category. Only 60% of those surveyed this year claimed they were satisfied or very satisfied with their job, about 16% lower than the previous two years.
Greg Shepherd, a test engineer at US Assemblies in Hallstead, PA, links low job satisfaction to a drop in business. “My job satisfaction is down because of the increased workload with less time to do it. I am personally bending over backwards for this company by working additional shifts to meet deadlines,” he said. To compound the problems, the slowing economy is altering Mr. Shepherd’s job effectiveness because his facility cannot get parts in a timely fashion.
Job security, according to Mr. Shepherd, also is lacking. “My parent company is overextended due to a loss of contracts and customers that cannot pay on time. In addition, the effects of automotive, E-commerce, and other sectors laying off employees eventually will trickle down to other industries,” he said. “I believe the current economy is causing engineers to feel less secure because companies are putting fewer resources into R&D.”
The $40 million company employs 250 people and is a subcontract manufacturer of PCB assemblies. Mr. Shepherd has been employed at US Assemblies for nine years. Knowing that his company is in good shape and could survive a weakening economy would make Mr. Shepherd feel more secure in his job. “I am praying that the economy won’t cause any major problems for the company,” he said.
Ed Santos, a new product integration engineer who has worked 20 years in the electronics industry, currently is employed at Lam Research. Mr. Santos said he does not feel secure in his job. “As a whole, the company does not necessarily make the best choices during reduction in work forces. This partly is because the decision-makers are far-removed from the trenches and, at times, personal agendas play a major role in the decision-making process,” he said.
Lam Research is located in Fremont, CA, and reports annual sales of greater than $2 billion. The company employs 4,000 workers and manufactures dry etch, chemical metal polish, and wafer-cleaning equipment for the semiconductor industry.
Mr. Santos believes the economic downturn indicates salary freezes and future layoffs. However, he is very satisfied with his job because it allows him to keep learning about new technology while building and testing prototype equipment. “I am most satisfied with my job when assigned to a project that emulates a startup environment where there are no boundaries and I am working with a forward-looking engineering team,” he said.
Challenging Job Helps to Endure Lean Times
The primary job function of EE readers also played a role in the salary received (Figure 3). Respondents working in R&D showed the highest median salary at $86,000 with corporate management close behind with a median salary of $82,500. Component engineers reported a median salary of $81,000, and those with job functions in design and development engineering had a median salary of $72,000.
“My current job scares the heck out of me every day,” said Eric Larson of Teradyne. “If it didn’t, I would be looking for something else to do.” Mr. Larson, a product manager, works closely with engineering to define, design, and manufacture new products and with customers to understand their requirements. “I am very satisfied with my job because it offers continuous challenges. There always are opportunities to take on greater responsibilities,” he said.
According to Mr. Larson, he has confidence in his company so he feels secure in his job. “My company is very well run,” he said. “Management is stable and perhaps a bit conservative.”
However, based on the current economic climate, he believes many people are finding fewer options in the workplace. “Electronics companies generally are flat or shrinking, so opportunities for job change or growth are limited,” Mr. Larson said.
At Teradyne, Mr. Larson said the change in the economy has had a negative effect on bookings, and as a result, the company is concentrating on cost reductions. “Travel has been cut, large purchases have been delayed, and if things continue to stay slow, further measures will be taken,” he said. “Our slowdown in business is a direct result of a slowdown in the semiconductor manufacturing industry.”
After her company fired 50% of its workers, Lisa Mueller left the company to find a job that would offer more stability. However, she later returned to Aastrom Biosciences after realizing that creativity, excitement, and flexibility are more important to her than job security.
“The biotech industry is not stable,” Ms. Mueller said. “Until a company becomes a Pfizer or Biowittaker, there’s always a risk that tomorrow you’ll be looking for another job.”
Ms. Mueller is a software verification and validation (V&V) engineer responsible for configuration management of all software end products, V&V testing, regulatory submissions, generating standard operating procedures, training, and development process audits. Aastrom Biosciences, located in Ann Arbor, MI, employs 50 people. The company supplies an automated product platform for ex vivo cell expansion for use in cell therapies and functions as a resource in the development of cell therapy processes.
Although Ms. Mueller considers the biotech industry unstable, she is very satisfied with her career. “The biotech industry is vibrant and innovative, and I like having a part in projects that could improve quality of life,” she said. “Working with extremely creative, intelligent people and for a small startup company gives me a great deal of flexibility and potential for professional growth.”
Education Continues to Offer Opportunities
The level of education attained by EE readers also determined the salary they earned (Figure 4). The median salary for respondents who received a Ph.D. was $97,500, and those with an M.S.E.E. had a median salary of $85,000. Readers with a master’s in business administration reported a median salary of $75,000, and respondents with a B.S.E.E. or other master’s degrees revealed a median salary of $70,000.
Fernando Lopez, who earned an M.S.E.E., is very satisfied with his career because it provides him the opportunity to expand his education through learning new technical and management skills. Mr. Lopez has worked for Xerox for 10 years. He is a design section manager and oversees the development of image-processing chips used in midrange multifunction machines. “My management allows employees to balance work and family life, and this is very important to me,” he said.
Job security is somewhat lacking for Mr. Lopez because of the state of the economy. “Xerox is laying off people as we speak,” he said. “My product might not reach the market even though, technically speaking, it is very good. And although the workload requires more people, we have a hiring freeze so I cannot add engineers to the staff.”
Xerox employs 94,000 workers, and Mr. Lopez’s group has 20 employees in the Palo Alto, CA, facility. He supervises a team of 15 engineers.
Conclusion
As reports continue to show the economy weakening, the electronics industry may have to weather an economic storm ahead. One thing is certain: Whether or not job security is within their control, EE readers participating in the 2001 Salary Survey have acknowledged a sense of economic anxiety in the workplace.
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April 2001