MRO Today - The grass is greener

The grass is greener
The third annual MRO Today maintenance salary survey, conducted by Compdata Surveys, shows companies raised hiring rates to lure new employees

by Paul V. Arnold

For a third year in a row, low unemployment, a shortage of skilled workers and a trend toward free agency significantly impacted the way manufacturing companies tried to attract and retain maintenance workers. That is among the key findings of the third annual MRO Today maintenance salary survey, conducted by Compdata Surveys, one of the country’s leading research firms on salary and benefit issues.

Hiring rates, the salary companies pay new employees, increased throughout 2000, states Theresa Worman, Compdata Surveys’ director of business development.

"They played a more significant role than they did in 1999," she says.

While companies reported overall salary increases of around 3.5 percent last year — continuing a trend from the previous two years — salaries given to newly hired maintenance employees rose almost 4 percent. This is a recurring theme.

Hiring rates were the top story in the initial MRO Today maintenance salary survey, based on research done in 1998. That year, companies gave new hires approximately 9 percent more money than they did the previous year. However, hiring rates rose just 2 to 3 percent in 1999 and were a relative non-factor in last year’s salary study. Incentives and benefits were effectively used that year to attract and retain workers.

While companies still used goal-based pay and perks in 2000, hiring rates were emphasized more.

"Employers are responding to the fact that the days of the 25-year employee are over," says Worman. "Studies show today’s worker will change jobs at least seven times and change careers three times."

Pro sports teams aren’t the only ones dealing with free agents.

"With employee mobility, and the shortage of skilled labor, companies tried to get people in the door without bringing their whole salary ranges up," says Worman. "We saw the pay range for jobs stay about the same, but as companies hired new employees, they didn’t bring them in at the minimum. Offers were slightly higher than normal."

Compdata Surveys’ findings are the result of polling more than 1,500 manufacturing companies. These companies collectively employ more than 1 million people, including more than 29,000 maintenance workers (managers and non-managers).

The study for MRO Today encompassed nine main 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

Click here to see the Compdata Surveys salary results for maintenance workers.

Additional enticements
Offering a higher starting salary wasn’t the only tool companies used to attract maintenance talent last year. Sign-on bonuses also were utilized.

"Substantial money ($500, $1,000 or much more) was offered," says Worman. "Even more interesting, 35 percent offering sign-on bonuses didn’t use a payback clause."

In essence, an employee could take a job, get the $1,000 bonus and quit a week or two later without having to return the cash. With unemployment rates rising, Worman figures companies may pull back from such bonuses for unskilled positions.

Vacation time to new hires also rose last year by almost one full day.

"Applicants said, ‘I already have a job. I have vacation time there. You need to make it attractive for me to take your offer,’" says Worman.

To purchase a comprehensive salary and benefit report, or to include your company in the next survey, call Compdata Surveys at 800-300-9570 or visit its Web site at www.compdatasurvey.com. To purchase salary and benefit data one job title at a time, visit www.compdatajobs.com.