Jennifer Whitney10.15.07
2007 MPO Salary Survey
The Med-tech Industry Remains Profitable for Workers, With Satisfaction Moderate to High and Frustrations None Too Surprising
Jennifer Whitney, Editor
According to the US Department of Labor’s Bureau of Labor Statistics, in 2006 (the latest year for which data were available), 305,530 workers were employed in the medical equipment and supplies manufacturing industry. (By 2014, the number of workers is projected to reach 312,000.) The average annual salary for all occupations within this industry was $42,190—higher than the national average for salaried workers, which remains less than $40,000 annually.
Readers of Medical Product Outsourcing appear to be surpassing the US average salary for jobs in this sector, however. In MPO’s annual salary survey, the majority (more than 85%) of respondents reported a salary of $50,000 annually or more, with more than a third of respondents surpassing the six-figure mark. These numbers are just about the same as those reported by respondents in the 2006 salary survey (see September 2006 issue at www.mpo-mag.com).
More than half of the respondents feel either “somewhat” or “very” satisfied with their compensation. Still, nearly one third of those who completed the survey said they were “somewhat” or “very” dissatisfied, and another 15% were neutral on the subject, indicating that many believe there is plenty of room for improvement in this regard.
Raises and Job Security Not Overly Concerning
In terms of compensation, do you want the good or the bad news first? The bad news (to get it over with) is that 16% of respondents said they did not receive a raise in the last year, and 7.6% reported salary increases of just 1% or 2%. Nearly half (47.5%) of individuals participating in the survey, however, have been merited with increased compensation on par with norms for other industries, with raises in the 3%-5% range. Interestingly, 14.5% of respondents received a raise of 10% or more in the last year. A little more than a quarter of workers also reported receiving additional compensation such as stock options, bonuses or profit sharing.
Overall, more than 40% of respondents said they feel secure in their present position—and another 27% said they feel “very secure.” The bulk of the remaining respondents were neutral on the subject, and only about 7% said they felt somewhat or very insecure about the stability of their job.
While 30% of respondents preferred to remain neutral on the topic of whether they are planning to leave their company in the next two years, those who are planning to stay put versus those who are likely to leave were just about evenly split. More than 23% said they are likely to leave, with another 11.9% indicating it was “very likely” they would pursue other opportunities. However, 34% said it was unlikely (17%) or very unlikely (17%) that they would do so.
Who Comprises the Workforce?
As the medical device industry prepares to serve the large number of baby boomers needing increased healthcare over the next few decades, it’s clear that their peers will be part of creating the innovations they will demand. The average age of med-tech workers is 43—therefore, it’s not surprising that the workforce is comprised mostly of individuals in their 30s, 40s and 50s (33%, 35% and 20%, respectively).
Those who work in the industry know it well, as respondents have spent a collective average of 11 years employed in the med-tech sector—and nearly 10% have dedicated 25 years or longer to serving the industry. In addition, loyalty is not lost on medical device manufacturing professionals; the average employee has spent six years at his or her current company. Furthermore, 16% reported being employed by the same company for 10 years or longer, and a small percentage (3.3%) has stayed with one company for more than 25 years.
The workforce is an educated lot, with nearly half of respondents reporting they have a Bachelor’s degree and another 30% indicating they have a Master’s and/or Doctorate degree.
Although the United States has been ramping up its efforts to attract more women to careers in technology, the female population has not balanced the med-tech industry’s gender equation yet. More than three quarters of respondents were men. One female respondent even remarked that she was frustrated by “the lack of respect for women” in their jobs in this field.
Daily Frustrations on the Job
Although internal politics ranks as the top frustration among med-tech workers, other factors can add to the daily stresses facing employees, especially frustrations that aren’t unique to any one industry: poor leadership, “dysfunctional senior management,” being handed too many projects or not having the proper resources available to perform the job well and basic uncertainty about the future of the market. Several respondents cited understaffing or, equally frustrating, a lack of qualified candidates for job openings as areas that could stand to benefit from improvement. Market volatility and, as one person noted, a company’s “lack of understanding and adjustment to a changing market” also can impact employees’ satisfaction on the job. Finally, although the industry keeps growing to serve larger populations than ever before, it appears that the competitive nature facilitates stress—one respondent noted that it’s “difficult breaking into companies as a new supplier.”
The good news is that frustration isn’t a requisite for working in the industry. As one respondent remarked when asked what was the most frustrating aspect of his or her job, “I’m not frustrated in my job.”
Editor’s note: To find even more detailed information about employment statistics in the medical equipment and supplies manufacturing industry, visit the US Department of Labor Bureau of Labor Statistics’ Web site at www.bls.gov/oes/current/naics4_339100.htm. There you can find employment and wage estimates according to specific job function within this sector.