Feature: Salary Survey

HFES 2009 Salary and Compensation Survey Results
By S. Camille Peres, University of Houston-Clear Lake,
& Lyn McCloskey, PRM Consulting

     Many professional organizations conduct surveys to gauge salary levels and trends for people in their fields. The reports generated from these efforts typically provide salary information by geographical region, category of employment, educational attributes, and other factors that have an influence on pay levels. The results of these surveys are widely used by employers when determining competitive salaries for their employees, by employees when negotiating salaries, and by students who are considering different career paths.

     HFES has conducted salary surveys of its members several times over the years, most recently this spring. We once again contracted with PRM Consulting, Inc., a professional services consulting firm headquartered in Washington, D.C., to develop an easy-to-complete online questionnaire consisting of 23 yes/no and multiple-choice questions. (Note that anti-trust laws prohibit HFES members or employees from analyzing and reporting on the data themselves, so the Society is legally required to engage a third party to do this.)

     In April, we sent e-mail invitations to 3,409 Associate, Fellow, Full, Honorary Fellow, and Transitional Associate members to collect information on monetary (pay) and nonmonetary (benefits) compensation. A total of 635 HFES members fully completed the questionnaire, including 22 non-U.S. (primarily Canadian) members. (For data analysis purposes, the information submitted by non-U.S. members was excluded from the results.) Interest in the 2009 survey was high; the participation level was about twice that for the 2005 survey. The following is a brief summary of the full HFES 2009 Salary and Compensation Survey report.

Areas Covered in the Survey
     We collected salary information for employees and consultants according to such factors as region, area population, degrees earned, years of experience, and time since highest degree. The salary report also provides information on employee benefits overall and by market sector. The surveyed benefits include health insurance, paid time off, and retirement. Finally, the 2009 survey includes current trends in the employment environment for HF/E professionals - important information in light of the recent decline in economic conditions.

Respondent Characteristics
     There is a fairly even distribution of survey respondents across the United States, with the largest percentage located in the mid-Atlantic and southeast regions.

     More than half of all survey respondents (55.5%) are employed in the for-profit business sector. Approximately 20% of survey respondents are employed in a university setting. More than 50% of survey respondents have a PhD in engineering or psychology.

     On average, survey respondents have been in their current position for approximately 8 years, but they have slightly more than 15 years of experience since obtaining their highest degree.

     More than half of all survey respondents work in a medium-sized city at an organization with 1,500 or more employees.

Pay Data
     Overall, employee base salaries vary little by region. Average base salaries range from a low of $88,317 in the mid-central United States to a high of $118,434 in the northwest. Average employee base salaries also vary little by market sector, although they are slightly higher in the for-profit business sector versus other markets, and lowest within a university setting.

     There is little variation in average salaries for employees by population area, but average salaries are higher for smaller companies/organizations (i.e., fewer than 100 employees).

     Across all market sectors, employees with a doctorate earn 18% to 28% more than their counterparts with a master's degree.

     On a geographic basis, the differences in average employee base salaries between those with a bachelor's and those with a master's degree are generally very small, but those with a doctorate average about 22% higher.

     Although average base salaries tend to trend upward for employees based on their time in position, this measure has little impact on the average salaries for consultants.

     Finally, although the prevalence of annual bonuses for employees is much higher within for-profit businesses (86% are eligible), the average bonus reported as a percentage of base salary is slightly higher in universities than in all other surveyed market sectors.

Employee Benefits
     The full report provides a detailed summary of various benefits reported by survey respondents. The benefits data reflect information reported for employees with W-2 earnings only.

     Most survey respondents (approximately 90%) receive employer-provided health benefits, including dental and vision. Employees within a university setting pay less for their health benefits than do their counterparts in all other market sectors.

     Most survey respondents are provided with retirement benefits solely through a defined contribution plan with matching contributions. Typically, employers provide a 100% match on up to 6% of base salary.

     Well over half of survey respondents can receive tuition assistance (63%) and support for attendance at professional meetings and conferences (73%), but only about half of them (49%) can be reimbursed for professional society dues.

     A total of 148 survey respondents (or 24% of the total) report a variety of sources of nonmonetary compensation. Typically, nonmonetary compensation includes such benefits as access to fitness facilities, gym memberships, discounts on goods or services, subsidized or paid transportation, and flexible working hours.

Employment Environment
     Given the recent economic situation, the 2009 questionnaire included questions regarding any actions being taken by respondents or employers in response to current financial conditions. Below are some highlights:

• Approximately 30% of survey respondents anticipate making or have made layoffs/terminations or will institute a hiring freeze in the near future.

• About one-fourth of all survey respondents are planning a salary freeze, but only 13% of them are planning on also reducing benefits. However, a third of survey respondents are planning to reduce or eliminate employees' travel budgets or benefits.

• Survey respondents who are business owners or executives generally report little in terms of economic indicators from clients, with fewer than 7% of them indicating reductions and/or delays.

• Twelve respondents indicate they are hiring HF/E professionals.

Summary
     The 2009 HFES Salary and Compensation Survey provides employers and HF/E professionals with a picture of the compensation profile for this profession across the United States. Our 18% response rate is sufficient for making generalizations regarding current salaries. Indeed, the results indicate that working in HF/E pays relatively well. The range of average salaries is notably higher than the approximately $78,000 average salary reported by the Census Bureau in 2006 for "professional, scientific and technical services." This is particularly encouraging considering the challenging economic climate.

     The report may be purchased online. Survey respondents received a free copy, and the report is available for $50 for HFES members and $300 for nonmembers.

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