When CE News surveyed its readers last year (see “11th Annual CE News Salary Survey,” June 2009), the full extent of the recession’s effect on civil engineers’ salary and benefits was unclear. However, results from this year’s survey provide a clear picture that the recession has had a significant and widespread impact as firms struggled to balance shrinking revenue with costs. Median salaries at almost all experience levels in both the private and public sectors decreased as much as 15 percent in 2009 and early 2010 compared with the previous year.

Bonuses took an even greater hit. Not only did fewer respondents this year report receiving a bonus during the last 12 months — 53 percent of private-sector respondents overall compared with 63 percent last year — but of those who did receive them, median bonuses were as much as 55 percent lower than indicated by last year’s survey. In the public sector, where bonuses are not as prevalent, 23 percent of respondents overall said they received a bonus during the last 12 months, compared with 29 percent of respondents last year. However, median bonuses, although moderate, generally were greater than those reported a year ago (as much as 80 percent greater for public-sector respondents with more than 30 years of experience).

Raises also were rare during the last year. Overall, only 37 percent of private-sector respondents and 43 percent of public-sector respondents said they received a raise, compared with 63 percent and 82 percent, respectively, a year ago. For the fortunate few who received raises, the amounts were generally 3 percent or less (see Table 1), compared with 4 to 5 percent the previous year.

Table 1 lists median salary, bonus, and raise data reported by survey respondents in the private and public sectors in nine experience categories. Additionally, first (Q1) and third (Q3) quartile salaries provide a range within which 50 percent of reported salaries fall. Note that an insufficient number of responses were received from civil engineers with zero to four years of experience to provide meaningful data.

The National Association of Colleges and Employers reported in early April that, according to its spring survey, salary offers to civil engineering students graduating in 2010 were 1.3 percent greater than the offers received by 2009 graduates. The average offer this year was $52,433, which correlates well with the first quartile salary that staff/design engineers reported in the CE News survey (see Table 2).

Table 2 lists median salary, bonus, and raise data by position or title. The only respondents reporting higher median salaries this year, compared with last year’s survey, are project engineers (up 0.5 percent), vice presidents (up 2.5 percent), directors (up 1.0 percent), general managers (up 5.3 percent), and county engineers (up 9.1 percent). However, significantly lower bonuses for most of the respondents in these positions likely more than offset the slightly greater pay.

Of course, if traditional performance raises are less forthcoming, promotions offer another route to higher pay. But the recession has, at least temporarily, made those steps up the ladder less likely. Only 8 percent of respondents said that they were promoted during the last year, compared with 16 percent of respondents a year ago.

The CE News survey suggests a corresponding decline in respondents’ sense of job security, opportunities for financial gain, and compensation commensurate with workload and job performance. When asked how much they agree with several statements regarding employment at their firms, the following percentage of respondents agreed or strongly agreed:

• 55 percent feel their job is secure without the threat of a downsizing event in the coming year (62 percent of respondents felt that way a year ago);
• 44 percent agreed that their level of compensation accurately reflected their workload (54 percent agreed with that statement last year);
• 42 percent agreed that their level of compensation accurately reflects their job performance (48 percent agreed last year);
• 38 percent agreed that as they develop skills and experience, there are opportunities for continued financial gain at their firms (47 percent of respondents saw opportunities last year); and
• 36 percent of respondents agreed that their firms make an effort to improve their compensation structure to remain competitive (42 percent of respondents felt that way last year).

Compensation cuts
Respondents’ change in sentiment about job security and compensation are likely based on compensation cuts many firms have made as the recession deepened. For example, the percent of respondents reporting decreases or elimination of annual bonuses, salary freezes, and pay cuts increased significantly between 2009 and 2010 (see Figure 1). Note that although fewer public-sector civil engineers reported pay cuts — less than 10 percent, compared with more than 20 percent of private-sector respondents — significantly more public-sector employees said their organizations instituted furloughs (temporary layoffs). Salary freezes have been the most common response in both the public and private sectors, affecting more than half of firms and organizations.

CE News survey data also suggest that many firms made cuts or adjustments to employee benefits — at least temporarily — to help weather the recession. The employee cost (paycheck deduction) for medical insurance benefits increased for 72 percent of respondents, although the relative impact of the recession on this perpetually more expensive benefit is not clear. Fifty percent of respondents said they pay between $50 and $300 per month for medical insurance, with about half of that group paying $100 to $200 per month. A clear minority of respondents (14 percent) enjoy medical benefits with the entire premium paid by their employer.

The proportion of respondents’ firms providing some amount of matching payment to employees’ 401(k) retirement plans decreased from 75 percent in the 2009 survey to 66 percent in the current survey. Likewise, fewer respondents this year, compared with last year, said that their employers offer the following benefits: paid training for continuing education or professional development, company car or allowance, gas credit card or allowance, tuition reimbursement, flexible scheduling, and telecommuting. In addition, although the hours worked per week did not change significantly between the 2009 survey and this year’s survey, a slightly greater proportion of respondents (54 percent) said they are not compensated for overtime, compared with respondents last year (50 percent).

Nevertheless, survey data indicate that civil engineering firms have not cut back on their support for employees’ involvement in charitable causes. The proportion of respondents’ employers offering matching charitable contributions increased slightly to 14 percent, and the percentage of respondents whose firms provide time off for volunteer or charitable work remained the same (18 percent).

Self-employed suffer
Self-employed civil engineers, although only about 4 percent of respondents, reported suffering a tougher year. Median income for this group declined 24 percent, dropping from $100,000 in the 2009 survey to $76,000 in the 2010 survey. Last year, 51 percent of self-employed respondents forecast a decrease in income during 2009; but reflecting more severe economic conditions than expected, 74 percent of self-employed respondents this year reported that their 2009 income from providing civil engineering services decreased.

Looking ahead with a more positive view, only 26 percent of self-employed respondents expect decreased income in 2010; 26 percent expect an increase in income and 30 percent expect their income to remain the same. However, reflecting the uncertain economy, 18 percent of self-employed respondents this year — compared with only 10 percent last year — were not willing or able to offer a forecast and simply answered, “I don’t know.”

Satisfaction remains strong
Despite disappointing economic conditions in 2009, only slightly fewer respondents to the 12th Annual CE News Salary Survey said they were satisfied with earnings compared with previous years (see Figure 2). Given the extent of salary freezes and cuts, as well as erosion of other benefits, the slip is not as great as might be expected. Overall, 54 percent of private-sector respondents and 56 percent of public-sector respondents said they were satisfied or very satisfied with their earnings, compared with 58 percent and 57 percent, respectively, one year ago.

The greatest year-over-year drops in satisfaction are among public-sector respondents with four to seven years, seven to 10 years, and 15 to 20 years of experience. But more than 60 percent of public-sector respondents with 20 to 25 years, and 25 to 30 years of experience expressed satisfaction with their earnings.

If, as it now appears, the economy has bottomed out and a slow economic recovery has begun, look for satisfaction within the industry to strengthen as civil engineers look toward greater stability in salary and benefits during the year ahead.