Medical Device Link.

Originally Published MDDI December 2001

Salary Increases Continue despite Business Uncertainties

Mergers and acquisitions often undercut feelings of job security, yet fewer professionals are contemplating a job search.

Gregg Nighswonger

The medical device and in vitro diagnostics (IVD) industry is going through a period of significant change. The increasing prevalence of mergers and acquisitions are affecting job security and changing common business practices. The dramatic events that took place this autumn are also having an impact on various aspects of the industry—from the way products are shipped to the reassessment of key technologies.

Despite the current uncertainties, the results of MD&DI’s 13th annual salary survey indicate that salaries of medical device and IVD industry professionals have increased nearly 4.9% compared with last year, and 64% of all respondents received bonuses in the 12 months prior to the survey.

A GLIMPSE AT THE AVERAGE MEDICAL DEVICE AND IVD PROFESSIONAL

Each year, the editors of MD&DI present a statistical portrait of compensation and benefits, responsibilities, and perspectives of the medical device and IVD industry. The annual salary survey is intended to represent the magazine’s current readership based on a number of key factors, such as job segment.

This year, most respondents (89%) are employed by organizations that produce medical devices only, 6% work for manufacturers making only in vitro diagnostic products, and 5% are employed by companies that produce both. These figures are generally unchanged from the survey conducted in 2000.

The typical respondent to this year’s salary survey is a white male who is 44.4 years old. He holds a bachelor’s degree, usually works 48 hours a week, supervises 4.6 employees, earns $80,800 annually, and received a 7.0% salary increase with his last raise. He has worked for the same company for approximately 8 years and has been involved in the industry for nearly 12 years.

SALARY AND TOTAL COMPENSATION

Figure 1. Industry average salary for each region is shown in yellow, total compensation in black, and percent increase of last raise in white.

Total compensation includes both the salary and benefits an individual receives. This year, salaries made up 76% of the value of total compensation packages reported by survey respondents. The average salary level for 2001 of $80,800 represented a 4.9% increase over levels in 2000. Eighty-nine percent of all respondents indicated that their organizations offer annual salary reviews. The same number reported receiving raises from their employers, and the average increase was 7.0%. In the clear majority of cases—nearly 75% of all respondents—these increases were not the result of a promotion or change in job responsibilities.

Aside from salary, health, dental, and life insurance are the most common form of added compensation. A significant portion of employers, however, continues to include stock options, education benefits, and pension plans. This year, the average value of total compensation packages was found to be $106,000. Sixty-four percent of all respondents indicated that they had received bonuses in the past year. The typical bonus amounted to $10,800.

LOOKING NATIONWIDE

Figure 2. Levels of reported decision-making influence in the selection of supplies.

Figure 1 depicts compensation levels and salary increases among the major regions of the United States. The highest salary and total compensation levels were reported in the West, and the lowest averages were found in the South. The highest average salary increases (7.6%) were also found in the West; the lowest were in the Midwest (6.3%).

This year’s survey again looked at the levels of decision-making influence reported by individuals in each job category. Figure 2 compares the level of influence among respondents nationwide. The results reflect responses from individuals who are actively involved in such decisions as well as those with limited or no involvement.

ASSESSING THE INFLUENCE OF MERGERS AND ACQUISITIONS ON FEELINGS OF JOB SECURITY

Figure 3. Involvement in a merger or acquisition.

Like other sectors of the U.S. economy in recent years, medical device manufacturers have been involved in an increasing number of mergers and acquisitions. This year, salary survey respondents were asked whether or not the organization they work for has been involved in such an action within the past year. As indicated in Figure 3, nearly 40% of all respondents indicated that their company had either been acquired by another firm or had been involved in a merger.

Respondents were also asked to indicate their feelings of job security this year, compared with one year ago—do they feel more secure now, less secure, or about the same? Figure 4 provides a graphical representation of the respondents’ opinion of job security and compares responses of those who had been involved in either a merger or acquisition with those who had not. While nearly 15% of all respondents reported feeling less secure in their jobs this year, the figure increases to 22% for individuals who had been involved in a merger or acquisition.

JOB PROFILES

Figure 4. Involvement in a merger or acquisition within the previous year appears to influence feelings of job security among this year's survey respondents.

The following pages provide a more detailed profile for each of the seven job categories included in the survey. The categories include general and corporate management, marketing, product design engineering, production and manufacturing (including packaging and sterility assurance), quality assurance and quality control, regulatory and legal affairs, and research and development.

The profile for each job category includes median salary and total compensation, average raise and bonus, experience with mergers and acquisitions in the past year and indications of job security, average number of firms worked for, and job-seeking status. Salary averages are also provided in relation to gender, years in the industry, number of employees supervised, and company size by sales volume.

• General and Corporate Management
• Marketing
• Product Design Engineering
• Production and Manufacturing
• Quality Assurance and Quality Control
• Regulatory and Legal Affairs
• Research and Development
  

SURVEY METHODS

The data for this year’s report were obtained from a mail survey designed jointly by MD&DI and Readex Research Inc. (Stillwater, MN) and conducted by Readex between June and August of this year. A total of 1375 surveys were mailed to medical device professionals. Of this number, 610 surveys were returned with usable responses, which provided a 44% response rate.

The survey results are based on the responses of 547 individuals who identified themselves as full-time professionals working for companies that manufacture medical devices or in vitro diagnostics. These responses were weighted during tabulation to reflect accurate population proportions representative of the 26,937 MD&DI recipients. In addition to being segmented according to the seven job functions outlined earlier, segments also reflected the respondents’ level of responsibility as follows: CEOs and presidents, vice presidents and directors, department heads and supervisors, and engineers and scientists. The margin of error for percentages based on the 547 responses used is ±4.1% at the 95% confidence level.

SURVEY REPRINTS

The 13th Annual MD&DI Salary Survey is available as a bound reprint that contains a copy of this article, tabular breakdowns for the industry as a whole, and previously unpublished tabular breakdowns for the seven surveyed job functions.
Copies cost $60 each. For more information or to place an order, contact the Reprints Desk, Canon Communications llc, 11444 W. Olympic Blvd., Los Angeles, CA 90064; 310/445-4200, fax 310/445-4299.

Copyright ©2001 Medical Device & Diagnostic Industry