Medical Device Link.

Eighth Annual MD&DI Salary Survey

THE EMPLOYEE

A number of factors related to individual employees and their abilities have a determining effect on salaries. These factors are reflected in MD&DI's salary worksheet, a model for predicting individual salaries by using key factors that are indicative of a person's earning power in the device industry marketplace. This year, for instance, education, experience, and primary job function are each called out as important variables that help to determine a professional's earnings. Following are some additional observations drawn from this year's survey that help to give a snapshot of the device industry's professionals and how they earn their pay.

Education. The U.S. medical device industry places a premium on education, which is one of the determinant variables included in the salary worksheet. Almost 9 in 10 device industry professionals (89%) hold bachelor's degrees, and nearly a third (32%) also hold one or more postgraduate degrees. This education pays off in both higher salaries and higher total compensation. Among those with postgraduate degrees, average salaries last year amounted to $77,100, and average total compensation came to $96,300. By contrast, those with bachelor's degrees only earned an average salary of $57,200, and total compensation of $76,700.

Age. The average age of professionals in the device industry is 42.3 years. Those 55 and older provide a larger share of company CEOs and presidents (44%) than any other age group. Among those who list their job function as general and corporate management, however, the largest segment is made up of respondents between 45 and 54 (30%), followed at some distance by those between 40 and 44 (23%).

Although age generally translates into higher earnings, this year's survey results appear to be the exception that proves the rule. This year, those in the age group between 45 and 54 drew the largest salary, earning an average $75,100, as well as the largest total compensation packages, amounting to an average $103,800. By contrast, those 55 and over earned an average salary of $74,300, and total compensation of $92,200. In this year's salary worksheet, age is accounted for by the addition of $368 for each year of an employee's age over 24.

Years in the Industry. Unlike the exceptional circumstances that pertain to age in this year's survey, no such oddities surround industry experience. The plain fact is, the more industry experience an employee has, the greater his or her pay. Those with less than five years' experience last year earned salaries of $54,300 (and total compensation of $68,300); those with five to nine years of experience received salaries of $57,500 (and compensation of $74,500); those with 10 to 14 years of experience earned salaries of $65,300 (and compensation of $84,500); and those with 15 or more years in the industry earned salaries of $80,100 (and compensation of $108,600).

Levels of Responsibility. According to the results of this year's survey, 93% of device industry professionals are involved in the selection of materials, components, or service suppliers for their organizations. The survey reveals that 44% of respondents authorize or approve such selections, 20% recommend selections, and 14% are part of decision-making committees at their companies.

Looked at according to job function, authorization or approval of selections is most often the role of general and corporate managers, 67% of whom count this among their duties. But 51% of product design engineers and 50% of production and manufacturing personnel also report that they have a role in authorizing or approving selections. Viewed by level of responsibility, CEOs and presidents take a lead role, with 78% authorizing or approving selections. But 72% of vice presidents and directors are similarly involved.

When it comes to recommending selections, R&D personnel (25%), product design engineers (24%), production and manufacturing staff (21%), and QA/QC professionals (20%), each report that this is part of their job.

This year's salary worksheet acknowledges job responsibility by adding amounts to the base salary according to the employee's job title and number of employees supervised.

Workweek. This year's survey results confirm what MD&DI discovered in last year's survey: device industry professionals are working some mighty long hours for their compensation packages. This year, 23% of those surveyed indicated that their typical workweek extended to 55 hours or more, while 29% reported working between 50 and 54 hours weekly. A further 23% reported working 45 to 49 hours each week, and a similar percentage said they work between 40 and 44 hours.

Although many of the professionals responding to this year's survey indicated that their workweek is considerably longer than the traditional 40-hour week, that doesn't mean they like the idea. Indeed, a number of respondents to the survey's open-ended questions cited the "50-hour workweek"--or some variant thereof--as the least rewarding aspect of their jobs. In some cases, employees commented that "compensation for number of hours worked" was inadequate. "It seems we get paid less and have less benefits for more work," noted one respondent. In other cases, employees complained that working such long hours "demands our personal time." One respondent bemoaned "the strain that long working hours puts on my family life."

Those at the head of the nation's device companies are probably all too familiar with such stresses. Among the job categories surveyed, the heaviest load of extra work time is borne by general and corporate managers, 82% of whom report that their workweek is longer than 50 hours; only 10% of these professionals manage to hold their work to between 40 and 44 hours. Marketing personnel are a close second in this area, with 76% reporting that they work more than 50 hours
per week.

Viewed by level of responsibility, vice presidents and directors take the lead, with 77% reporting that they work more than 50 hours weekly. But their bosses aren't far behind: 74% of CEOs and presidents also indicated that their workweeks extended beyond the 50-hour mark.

This year, all these extra hours are rewarded by their first-ever appearance in MD&DI's salary worksheet. The model rewards device industry professionals with an extra $205 for each hour worked above the traditional 40-hour workweek.

The Job Hunt. All together, 40% of device industry professionals are either actively looking for a job outside their current organization (11%), or considering whether to undertake such a search (29%). Itchy feet are most common among QA/QC personnel, 16% of whom reported that they were actively seeking a new job; following close behind were production and manufacturing personnel and regulatory and legal affairs professionals, both with 14%. In last year's survey, 26% of product design engineers reported that they were actively looking for new positions; this year, no category comes close to that mark, and only 9% of product design engineers indicated that they have put their talents on the market.

General and corporate managers are the least likely category to be job hunting; 82% of those respondents indicated that were not considering a new job. When viewed by level of responsibility, CEOs and presidents are most likely to stay put (91% said they are not considering a new job), followed by vice presidents and directors (69%), and engineers and scientists (59%).

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