Green, but a few weeds

The fourth annual MRO Today maintenance salary survey, conducted by Compdata Surveys, showed a tighter employment market. However, there were pluses.

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The results of the third annual MRO Today maintenance salary survey, published in the June/July 2001 issue, carried the headline “The grass is greener.”

With a national unemployment rate below 4 percent during the spring 2000 data collection period, a pressing need for skilled workers and a growing trend toward free agency, maintenance workers were in a good position. In some cases, they had the ability to pick and choose the company they wanted to work for. Many manufacturing companies, out to lure these free agents, offered high starting salaries as well as sign-on bonuses.

The results of the fourth annual MRO Today maintenance salary survey show a much different employment climate during the spring 2001 collection period. There was green grass, but there were weeds, as well. Unemployment broke 4.5 percent and the manufacturing economy tightened. Firms still needed skilled workers, but many opted to trim staff instead of hire. Employed workers stayed put, and unemployed workers sought a job, not greener pastures.

As a result, Compdata Surveys, the exclusive director of the MRO Today maintenance salary survey, reports pluses and minuses this time around.

“In previous years, we were talking about all of the extras (anything from sign-on bonuses to convenience services),” says Theresa Worman, the director of business development for Compdata Surveys. “Those occur when companies are out to lure someone from their current job. That dynamic has changed drastically. Companies are trying to maintain the basics. Everyone is aware of the climate. So, employees aren’t as picky.”

Click here for salary figures chart

Compdata Surveys’ findings for the fourth annual maintenance report are the result of polling 2,482 manufacturing companies. These firms collectively employ more than 1 million people, including 22,464 maintenance workers (managers and non-managers).

The study encompasses nine maintenance organization titles:

• Plant engineering manager

• Maintenance manager

• Senior maintenance supervisor

• Maintenance supervisor

• Senior maintenance mechanic

• Maintenance mechanic

• Senior maintenance electrician

• Maintenance electrician

• HVAC mechanic

A rise in variable pay
While Worman red-flagged the decline in sign-on bonuses, incentives were still a factor. This time, she says, pay outside of base salary was awarded as the result of performance, not employment.

“The use of variable pay is up,” says Worman. “Managers like the flexibility of rewarding those who meet predetermined goals.”

Maintenance incentives may be individual- or team-based and involve reaching goals related to cost savings, machinery uptime and reliability, and/or customer service.

“Organizations are applying the same logic used by sales departments —the more you achieve, the more you earn,” she says. “It’s a good motivational tool. And the higher you go up the food chain, the more you see this used.”

Indeed, while 3.1 percent of companies give incentives to HVAC mechanics, and 5.1 percent to maintenance mechanics, the percentage rises to 7.9 for maintenance supervisors, 14.9 for maintenance managers and 19.6 for plant engineering managers.

“It’s hundreds or even thousands of dollars, and it’s likely to go up as base pay increases. It’s not guaranteed money, but it does make sense,” she says. “When individual and team goals are met, it’s likely that company goals are met. If the company does well, it rewards those who made it happen. It’s equal risk, equal reward.”

Solid increase in base pay
Close observers of the salary survey will also notice strong increases in base pay from last year’s report.

Pay increases for each of the nine job titles beat the national 4 percent average. Some slightly beat the mark —maintenance electricians (4.42) and senior maintenance electricians (4.49). Others saw a steep jump —maintenance manager (9.35), HVAC mechanic (11.08) and maintenance supervisor (12.40).

Worman puts this piece of data in perspective.

“Employers are looking to hang on to their good people. You’ve got to keep your top performers happy. However, you have to be careful when looking at numbers,” she says.

Worman points out that different areas of the country tend to affect the overall numbers. And, different companies participate in each year’s survey.

“National numbers are important, but more important to you or your company are the averages from your area of the country,” she says.

This article appeared in the June/July 2002 issue of MRO Today magazine. Copyright, 2002.

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