Engineering salary increases

[SeductivePig]

OP - you have no plans over time at the company to be promoted or apply/get higher level positions?

I've been told by my supervisor that I can make project manager within 3-5 years.. they expect me to stay with the company long term. I'm the youngest guy there by like 6 years.

To be honest I'm working with the best people in the industry.. unbelievable talent. I'd be foolish to jump ship so soon but I think if I work my rear end off for the next year I'll be at a position knowledge wise that few people with my time's worth of experience would be at.

Regardless if my salary prospects at 30 barely break 80k then I think it's time to jump ship to a different industry because 80k at 30 is not that great considering I'm very marketable towards other positions that offer way more

 

[sze5003]

It depends how large your company is. How many people they have in senior positions just riding out to retirement, and how many slots available for promotion.

I'm not an engineer but I do software development. At my company, it's so large getting promoted is tough. You get like 3% raise every year if your performance is good and also some bonus money plus every summer if the market is decent and the company did good you get partnership money which can be a lot because it's based on a multiplier in how the company did. Mine was 5k after one year at the company but lots of taxes came out.

I feel as if you need to stay at least 3 years and try to find another job. Problem with me is in software development its always one language vs the other. Now I'm doing java, previously all I knew was asp.net and c# plus vb. So if I were to switch most likely I would be back to c# which I have not used in a while.

Disclosing your salary can help sometimes. My first job was 65k. Then they laid off people so before they got rid of everyone I took the job I have now for 61k. Half a year later I got a $930 raise not counting my bonus since it was prorated. I don't know what I'll get coming this year end review but I've been switched to prod support and working on several things at once as compared to what I did on my previous team.

I hear people who stayed with this company made good money but everyone knows they pay the lowest for these positions or pretty low for the work a developer like me does.

I'm not sure how much more I would learn staying longer than 3 years...the app is so huge and I'm constantly working on multiple sections and areas that it doesn't feel like I'm learning anything. Partly because at my last job I did every single part of the development process from designing the ui, to database and calls, to web services. Whereas at this company you have niche groups for each section and hundreds of people doing different things. Worst is, we have to use their components and code and there isnt really any figure it out on your own coding to be done. To me this is the hardest because I can probably figure out how to accomplish something on my own rather than learning each teams API and codebase that changes constantly with no warning from others.

I still have recruiters calling me but they want at least 3-5 years experience and mostly c# and .net positions not java and jsp old crap that I'm doing. You should see what others are offering just to get an idea of what they are paying.

I know how you feel though, I too like the company because it's so stable and they don't fire employees only contractors. But we suffer with the pay for that I suppose. I imagined I would be making more and I would if the school dept had not stopped the funding at my last job. I would probably be near the 70k mark at age of 25 but instead I had to take a small cut.

 

[Capt Caveman]

I've been told by my supervisor that I can make project manager within 3-5 years.. they expect me to stay with the company long term. I'm the youngest guy there by like 6 years.

To be honest I'm working with the best people in the industry.. unbelievable talent. I'd be foolish to jump ship so soon but I think if I work my rear end off for the next year I'll be at a position knowledge wise that few people with my time's worth of experience would be at.

Regardless if my salary prospects at 30 barely break 80k then I think it's time to jump ship to a different industry because 80k at 30 is not that great considering I'm very marketable towards other positions that offer way more

Then you do know that moving up in the company would include salary increases not including the annual merit increase, right?

 

[SeductivePig]

Then you do know that moving up in the company would include salary increases not including the annual merit increase, right?

Well the troublesome thing about my company is what a senior engineer said a couple months ago..

Keep in mind this guy is extremely favored by the vice president of our company and supposedly was made "an offer he couldn't refuse" to come on board

he was talking to me about a guy we were thinking to hire, and mentioned the salary.. how the guy was demanding a 20% increase when he was already at 80k.

he basically said I don't even make that much - I don't know if that's BS or not, but this guy is 38 years old and has a PHD and basically said he doesn't break 100k. if that's the case then I have no idea..

and for my supervisor, when we joke about him making 100k, he says "yea right" and he is extremely knowledgable and good at his job.. the company would crumble without him. If he's not making 100k then there's no hope for me

 

[Imp]

I've been told by my supervisor that I can make project manager within 3-5 years.. they expect me to stay with the company long term. I'm the youngest guy there by like 6 years.

Never ever take those promises at face value. My casual job employer kept promising me a full-time position for over a year and it ended up being "I don't have enough money to do that".

Meanwhile, my full-time job keeps promising people in the entry-level programs full-time, "permanent" jobs (I'm technically permanent in that I can technically do this until I get fired or retire). Truth is that there are many who have been stuck in the entry-level job for 5 or more years.

The takeaway is that they promise things to keep you onboard so they don't have to go through the hiring process and train someone new. And if you're being paid below market wage, why mess with that?

 

[SeductivePig]

Never ever take those promises at face value. My casual job employer kept promising me a full-time position for over a year and it ended up being "I don't have enough money to do that".

Meanwhile, my full-time job keeps promising people in the entry-level programs full-time, "permanent" jobs (I'm technically permanent in that I can technically do this until I get fired or retire). Truth is that there are many who have been stuck in the entry-level job for 5 or more years.

The takeaway is that they promise things to keep you onboard so they don't have to go through the hiring process and train someone new. And if you're being paid below market wage, why mess with that?

there are only four people in our division that do actual electrical engineering work pertinent to our specific field (arc flash/protection/relaying). I'm one of those 4, and they plan on expanding in the future.. it's obvious that I'm the choice for a manager because the other guy with more experience than me said he didn't want that position. it's a small company. they COULD hire someone else to be manager but they have confidence in me. regardless, it's not a position I'd be glad to take because it's stressful as hell.

 

[cressida]

It really depends on your location and job industry. If you were in Austin, 64k starting would be pretty darn good. If you are not where you want to be after 3 years or so, start hitting the job market. The norm use to be 5 years but it's more 3 these days.

You shouldn't worry too much about salary right now, just focus on building your experience and learning from senior engineers. Once you become more of a role player, your worth will increase. It takes time so be patient.

You can also try taking on additional tasks/projects at your place to show the managers that you can do it. But don't be too aggressive, you may end up stepping on other peoples toes and it may come back and bite you.

Salary is important but it's not always everything. I was in your shoes not too long ago. Studied computer engineering and working at a defense contractor. Been here almost eight years and only 1 major raise. I was fed up a few years back and started looking but then my health took a big dive. I'm still at the same place and hopefully recovering finally - but feel blessed that I'm still employed to help with medical costs.

Anyways good luck!

 

[hans007]

If you really want money start looking for another job. I have done this a few times. Sometimes I just coast for a year to get the idiotic years experience looking nicer and to "rest" post first few years learning the. Go be a free agent about it.

If you find better go. If they want to keep you they can bid for you. Probably won't turn you into an entrenched manager type but if you like learning and meeting new people as long as the next job is actually good why not go.

Anyway for varying reasons such as trying to shift the focus of my career ( different types of software engineering in my case) I'm on my 4th job since college. Salary is just over double I'm 8 years. You have to know what you are worth and be willing to do what it takes to get it though

 

[Suspicious-Teach8788]

depends right? My first job I was making $65k but I didn't feel like the career development was there. Only annual raises and junk. My friend who's still there isn't making much more. I left for school later on and jumped into a new job making far more. I feel like at my job now there's good room for development. I could make senior in another year or two given my responsibilities, and my boss is very open for helping people rise up.

You just gotta find the right company. I know enough people in this company who started 5 years ago when I was an intern and all have made senior by now.

 

[epidemis]

I started off at 61k this March as an electrical engineering consultant in the power industry. I know engineers don't make crazy money but I found out that since our company performed poorly this year, I won't be getting a raise.

61k seems pretty alright in my head. You are not yet experienced and that attractive to employers.

 

[Tweak155]

Really as long as you're good with money, $60k is plenty. I wasn't missing anything at $60k. I wouldn't focus too much on your salary unless you're in need of something, otherwise just be happy.

That said, since switching to contractor my income has increased greatly. I like it because if you're good, you always have an opportunity at a good company, and if you don't like it you move on.

Even as a contractor you can get benefits. I get 27 paid days / yr and medical if I want it (we're under my wife's though). Not to mention I get paid a lot more and by the hour (aka paid overtime, just not time and a half).

Of course, if I got some banging offer at a good company I'd take it. But I really don't feel in any hurry.

 

[bonkers325]

I started off at 61k this March as an electrical engineering consultant in the power industry. I know engineers don't make crazy money but I found out that since our company performed poorly this year, I won't be getting a raise.

I also found out that typical raises are 3-5%.

This means that if my company is stingy I'll end up making 70k at 30 (3% increase yearly) which is laughable considering many of my friends started out at 70k.

Is this really how it is? I imagined being at 85-90k by 30 which I would have been very happy with, but if I'm not even hitting 80k then I'm considering switching to a different industry..

I live in Naperville and I know that I can switch companies eventually to get a big raise, but even then I really like where I work and don't want to switch anytime soon.. the kicker is that I asked for 45k starting but was offered 61k. So my company does use market value to assess starting salary if that matters, and they pay competitively apparently

If your company performed poorly this year, count yourself lucky that more extreme cost-cutting measures weren't taken. Layoffs, furloughs, reduced hours, etc... I know a few firms that slashed 50% of it's workforce when the economy took a nosedive in 2008, and the MTA hasn't given its engineers a pay raise since 2008.

 

[bonkers325]

No idea on electrical. I actually heard that electrical, if you get moderately lucky, can start in the 80s and be up to 100k in a few years.

For civils like me, it's start at mid-50 to low 60s, get a PEng. and be boosted to 70-80 with incremental increases over time. You can clear 100k after enough years. If you have a specialty (i.e. master's and/or PHD), you can start higher and make more. Getting into management changes things, but you either start stamping more things (assuming liability for large projects) or "manage".

Problem for civils is that you need to get licensed and the liability does not match up with the pay. And so, I'm switching fields.

Just curious, what field are you switching to?

 

[bignateyk]

It really depends on your location. I'm in a similar situation. I started at $51K 6 years ago and currently only make $71K (Just turned 29). The issue I have is that we are literally the only company within 45 minutes drive that hires EE's. We get amazing benefits, but the salary increases are pretty bad.

I've gotten much higher than average since I'm really good at what I do and am more likely to leave since I don't have a family here. Most people I work with get 0-2% per year (We've had 3 salary freezes in the last 6 years, but I've managed to get increases through promotion and telling them I thought I was underpaid). I've averaged closer to 6% a year, which isn't too bad during a recession in the defense industry.

If you go down to the beltway in DC you can make a ton of money by virtue of the high cost of living and by switching jobs frequently. I'm happy to sacrifice a little pay to get really good benefits, cheap cost of living, and not have to deal with crazy traffic on a daily basis though.

 

[SeductivePig]

If your company performed poorly this year, count yourself lucky that more extreme cost-cutting measures weren't taken. Layoffs, furloughs, reduced hours, etc... I know a few firms that slashed 50% of it's workforce when the economy took a nosedive in 2008, and the MTA hasn't given its engineers a pay raise since 2008.

Well we cannot afford to lay anyone off.. We are staffed just enough to stay afloat.

I do have that kind of leverage but I think I'll wait until next year.. I dont think I'm in a position to command a raise this early.

 

[bignateyk]

Well we cannot afford to lay anyone off.. We are staffed just enough to stay afloat.

I do have that kind of leverage but I think I'll wait until next year.. I dont think I'm in a position to command a raise this early.

Yeah you should be careful when times are tough for the company. A guy I (used) to work with got an offer from another company and asked it to be matched. My boss matched it.

Then about 2 months later he did the same thing again right after we went through a round of layoffs. My boss told him to take a hike. Then he tried to back out of it and go back to his original salary but my boss still told him pack his things.

 

[JTsyo]

3-5% is for the same job. After you gain some experience there should be some opportunity for a promotion. If not, I would look for a different job.

 

[bonkers325]

Well we cannot afford to lay anyone off.. We are staffed just enough to stay afloat.

I do have that kind of leverage but I think I'll wait until next year.. I dont think I'm in a position to command a raise this early.

What kind of benefits and bonuses do you get? Most people think "if I don't make $xx,xxx then I'm being underpaid!", but never count the benefits and bonuses. Generally, most engineers of the same grade will charge the same billable rate, but their actual hourly rate they will be paid will vary based on the firm's break-even multiplier. Break-even multiplier is (total_expenses)/($_from_billable_hours), where total expenses are benefits, bonuses, non-billable staff (accounting, HR, etc.), expenses, etc plus $_from_billable_hours.

The break-even multiplier is also why only big name firms get large contract work. They have lower break-even multipliers and can afford to put more people on the job to make it profitable.

 

[HardcoreRobot]

get some experience, then search for another company that will pay you more. if you cant find one, then you are being paid reasonably and have nothing to complain about.

 

[vshah]

i was an EE but went into CS instead. started at 60k, 10k bonus & 12k raise after the first year (finance industry). 1.5k bonus and no raise the next year. left since I got married and had to move to be with my wife. now making 59k in a much lower COL area, and much happier too.

 

[TecHNooB]

i was an EE but went into CS instead. started at 60k, 10k bonus & 12k raise after the first year (finance industry). 1.5k bonus and no raise the next year. left since I got married and had to move to be with my wife. now making 59k in a much lower COL area, and much happier too.

always a good outcome

 

[SeductivePig]

What kind of benefits and bonuses do you get? Most people think "if I don't make $xx,xxx then I'm being underpaid!", but never count the benefits and bonuses. Generally, most engineers of the same grade will charge the same billable rate, but their actual hourly rate they will be paid will vary based on the firm's break-even multiplier. Break-even multiplier is (total_expenses)/($_from_billable_hours), where total expenses are benefits, bonuses, non-billable staff (accounting, HR, etc.), expenses, etc plus $_from_billable_hours.

The break-even multiplier is also why only big name firms get large contract work. They have lower break-even multipliers and can afford to put more people on the job to make it profitable.

As far as I've been told there are no bonuses for staff engineers. No benefits either, no 401k matching the first year, and only 1% afterwards. Half of my phone bill might get paid next year.


To the guy above, what does it take to get a job like that? I've always been interested in the programming side of finance

 

[edro]

You have to switch companies to make more money.
You can demand a minimum of 10% increase and if they like you, 20% is not out of the question.

HR can easily increase the initial offer, but it is extremely difficult to increase raises for existing employees.
Raises are payed from a pool for the entire department. If the entire department gets 3%, then some people get 1%, others get 5%, most get 3%. To justify a 10% increase for someone, they need to screw over half the department.

If you really want money, you need to get into technical sales. Become a sales rep that gets commission.
You can sell ABB, Cooper/Bussmann, Tyco, etc.
They usually want someone with a technical background, and they easily make more money than you do now.

The downside is traveling... and most engineers are horrible salesmen.

 

[bonkers325]

As far as I've been told there are no bonuses for staff engineers. No benefits either, no 401k matching the first year, and only 1% afterwards. Half of my phone bill might get paid next year.


To the guy above, what does it take to get a job like that? I've always been interested in the programming side of finance

no health benefits at all? phone bill is chump change compared to health benefits...

if you're in a place like that, stick it out for a year or so and "get that experience" then ah heck out of there and find a new job. unless you're getting a substantial learning experience, you're not going to get paid fairly.

 

[IndyColtsFan]

I've been told by my supervisor that I can make project manager within 3-5 years.. they expect me to stay with the company long term. I'm the youngest guy there by like 6 years.

To be honest I'm working with the best people in the industry.. unbelievable talent. I'd be foolish to jump ship so soon but I think if I work my rear end off for the next year I'll be at a position knowledge wise that few people with my time's worth of experience would be at.

Regardless if my salary prospects at 30 barely break 80k then I think it's time to jump ship to a different industry because 80k at 30 is not that great considering I'm very marketable towards other positions that offer way more

I have an idea. How about quit being so obsessed with money and instead, figure out what makes you happy and go that route? I've seen several of these posts from you and they're always about money. Good lord, get some perspective. Put in your time, gain valuable knowledge and experience, take advantage of all training, and THEN think about moving on. I mean, you also picked power engineering -- did you seriously think that was one of the more lucrative areas in EE?

Also, where do you live? $80K in the midwest is like 6 figures elsewhere due to the cost of living. Also, as someone else mentioned, I think the median US HOUSEHOLD income is like $45K.