Watson Wyatt Data Services reports more than a third of surveyed engineer, design and drafting personnel received bonuses in 2006

Health Care and Retail and Wholesale Trade employees receive highest salary increases amongst all industry sectors surveyed. Southeast Region employees receive highest average bonus as a percentage of salary over other geographic regions.

ROCHELLE PARK, N.J., (November 15, 2007) – Watson Wyatt Data Services, a wholly-owned subsidiary of Watson Wyatt Worldwide, today announced the publication of its 2007/2008 Survey Report on Engineering, Design & Drafting Personnel Compensation, now in its thirteenth edition. The report covers a full range of engineering, design and drafting personnel, including executive, general engineering, biomedical engineering, materials engineering, chemical engineering, civil engineering, electronics/electrical engineering, environmental engineering, measurement/calibration engineering, mechanical engineering, nuclear engineering, information technology/engineering, telecommunications, quality control/test engineering, production engineering, packaging engineering, industrial engineering, generic engineering and design and drafting.

Overall, salaries and total compensation increased 3.3 percent and 3.6 percent, respectively, within organizations responding to both this and last year’s survey. This compares to the 3.1 percent and 2.8 percent increase in salaries and total compensation experienced in 2006. A total of 16 individual positions (within the overall sample) received salary and/or total compensation increases that exceeded the overall salary/total cash compensation increase by 25 percent or more. 

A total of five positions received salary increases of 4.1 percent or more, as listed below:• Top Environmental Executive

• Top Engineering Executive

• Environmental Manager

• Electrical Engineering Supervisor

• Industrial Engineering Technician

Salary increases escalated in 2007 with the largest increase being four percent as compared to a high of 3.3 percent in 2006.  The most significant increase in salary was in the Health Care and Retail and Wholesale Trade Sectors at four percent and 3.9 percent, respectively, as compared to salary increases in 2006 at 3.3 percent and 2.8 percent, respectively.  Overall total cash compensation significantly increased in 2007, with the largest increase in the Non-Durable Goods Manufacturing Sector at 5.1 percent as compared to 2006, when the highest increase was in the Health Care Sector (3.4 percent).
Among the other industry sectors, increases in total cash compensation ranged from 2.3 percent to 3.9 percent. The North Central Region reflected the highest salary increase (3.5 percent) among the five regions, as compared to 2006 with 2.9 percent.  Among the other regions, salary increases ranged from 2.7 percent to 3.4 percent. For increases in total cash compensation, the West Coast Region experienced the highest increase (four percent), as compared to 2006’s 2.8 percent. Other regions increases in total cash compensation ranged from 2.7 percent to 3.9 percent. 

Bonus Trends
Overall, 35.6 percent of the employees covered by this survey received some form of bonus/incentive payment in 2006.  The percentage of employees receiving a bonus varied significantly between salary levels. While 74.8 percent of employees being paid at least $200,000 received a bonus, only 11.6 percent of employees paid less than $30,000 received a bonus.  Bonus prevalence showed only a slight variation by region, with the percentage of employees receiving bonuses ranging from 33.1 (Northeast Region) to 40.1 percent (North Central Region). The Southeast Region has the highest average bonus as a percentage of salary at 9.3 percent, while the West Coast Region received the lowest at 8.4 percent. Average bonus as a percent of salary for the other regions ranges from 8.6 percent to nine percent.

Substantial differences in bonus prevalence exist among industry sectors. Prevalence ranges from a low of 14 percent of employees in the Health Care Sector to a high of 73.8 percent of employees in the Insurance Sector. Bonus payments range from an average of 5.9 percent of salary for employees in the Services Sector to 16.4 percent for Non-Durable Goods Manufacturing Sector employees. The remaining industry sectors’ average bonus payments ranged from 7.2 percent to 12.6 percent.This report is based on responses from 960 organizations encompassing 3,261 locations reporting data on 97,624 incumbents. A total of 217 geographic areas, including 153 metropolitan areas, are reported on in this year’s edition.

The 2007/2008 Survey Report on Engineering, Design & Drafting Personnel Compensation is available online, on CD or in a printed format.

About Watson Wyatt Data Services
Watson Wyatt Data Services (WWDS), a wholly owned subsidiary of Watson Wyatt Worldwide, is a leading provider of compensation, benefits, and employment practices information to the global employer community.  From offices around the world, we solicit, analyze, and publish an extensive library of printed, interactive and online survey reports. Our compensation databases are recognized worldwide as the most reliable source of current data for compensation planning.

Global scope, local knowledge …Covering more than 95 countries across six continents, our data centers in the U.S., Canada, Europe, Asia, and Latin America annually compile reports on the remuneration, benefits, and employment practices of local and multinational companies.  Our “in-country” experts apply their local knowledge of the varied employment markets, practices, and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire institutions. Our international databases contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world’s largest conglomerates.  In addition to compensation surveys, WWDS also publishes references that help HR practitioners attract, retain, and reward exceptional employees. These guides cover a wide variety of subject areas, including variable pay, performance management, and personnel policies on a local, regional, and global basis. For more information, visit our Web site at WWDS.com.

For more information, contact:
MaryBeth IannacconeWatson Wyatt Data ServicesTel: (201) 843-1177, extension 3480E-mail: Marybeth.iannaccone@watsonwyatt.com