Light Readings 2010/2011 Telecom Salary Survey

Light Readings 2010/2011 Telecom Salary Survey Report

By Sarah Reedy, Sr. Reporter, Light Reading Published by LightReading.com

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey Introduction

Telecoms slow climb out of the recession isnt the only story of the year, although it is a pervasive one. In 2010, economic uncertainty played its part in keeping compensation at, but it didnt squash everyones optimism -- most respondents are looking ahead to a brighter, more lucrative future. In the rst of what will become an annual global Light Reading Salary Survey of 1,685 telecom professionals, including nearly 500 service providers, we learned that despite mostly at salaries across the board, the industry is largely satised with work life and is positive about most companies potential. From the respondents we learned: Nearly one third thought theyd make the same amount this year as they did in 2009 Twenty-six percent expected a 1 percent to 5 percent pay increase this year over 2009 Twenty-nine percent say they expect their compensation to stay at into 2011 More than one third say they expect a 1 percent to 5 percent pay bump in 2011 When asked how they felt about their compensation as compared to the rest of the industry, the majority 39 percent thought they were on par with their peers and more than half say they are at least somewhat satised with their position. This mindset is actually more common in a bad economy than being discouraged by pay freezes and layoffs, as high unemployment numbers put things into perspective, says Dr. Peter Mueser, professor of labor economics at the University of Missouri-Columbia. In the next two or three years, we expect to have growth and are likely to have increases in salary, Mueser says. But, my guess is that your average worker is not focused on that so much as focused on the fact they have a job.

Treading water
The motivating factor for people in the past two years was realizing they had a stable job, fearing the loss of it, and recognizing it didnt happen. Indeed, only 29 percent of respondents said their employers headcounts have been reduced in the past year, while 36 percent stayed the same. This would suggest a positive trend in employment, supported by the fact that productivity, as measured by gross domestic product (GDP), already began to inch upward over a year ago, Mueser says. However, its still too early for most to promise job security. Because of the rampant amount of consolidation in the industry in the past 12 months, it may take some time for the layoffs to be reected in the survey data. They have tapered off, according to the respondents, but there could be another couple of big rounds of cuts coming toward the end of the year as companies that have absorbed other rms shed redundant positions.To provide a more granular view of the telecom industry today, weve broken down the survey to nd out who is hiring, ring, and paying for talent across all geographies and parts of the value chain. Taken together, it paints a picture of where our readers think that telecom rms are placing their bets.

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey Who Works Where

Survey respondents spanned all sectors in the communications industry, with about a third coming from service providers. Of the global service provider community: Twenty-ve percent came from wireline network operators Twenty-eight percent from wireless network operators Thirty-one percent from integrated wireline and wireless network operators The remaining 16 percent came from either cable providers/MSOs or Internet service providers (ISPs) Vendors supplying to the service providers made up 48 percent of total respondents. Of that group, 75 percent came from the hardware and components manufacturing side of the business, and 25 percent were involved with software. The remaining 350 respondents indicating other as their type of company work at integrated hardware and software companies, consultancies, systems integrators, testand-measurement vendors, and more still. Respondents also included government employees, those in the education eld, engineers, and researchers.

In terms of geography, survey respondents literally hailed from all over the world, from Rhode Island to Algeria, to Costa Rica, to Kazakhstan. Those are some of the outliers, but for the rest: Fifty-one percent work in the US Seventeen percent in Western Europe Thirteen percent in the various Asia/Pacic countries Eight percent in Canada The rest were scattered throughout Central/South America, Central/Eastern Europe, Africa, and the Middle East Our telecom network operator respondents were fairly evenly split among wireline, wireless, and integrated service providers, but that doesnt necessarily speak to where hiring is taking place.

Wireless wins again

Randy Chambers, telecommunications recruiter for The Telecom Search Group, says there has been a very recent uptick in telecom hiring as measured by the number of companies paying for recruiting services. But, he says, its all happening in the wireless sector. Service providers are recruiting talent for both engineering and marketing roles as operators prep for 4G deployments and explore the smart grid opportunity with utilities, he says. His point: Only when service providers can improve the bottom line, will they look to invest in 4G, smart grids, and other leading-edge technologies. That is just natural regardless of the economy, Chambers says.

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey

Job Function
As noted earlier, most new hiring in the industry is happening to ll sales, marketing, and engineering positions. And, as for rank, our survey had a nearly perfect split between management and staff respondents, with half holding leadership roles.

Excluding the roughly 13 percent of other answers, our respondents identied their job category as: Corporate management (C-Level or VP), 9 percent Network operations, 7 percent Product development, 13 percent Engineering, 31 percent Sales and marketing, 27 percent Our other category included an assortment of jobs in nance, project management, consultancies, corporate IT, and technical support. Some of the notable other responses included: Network planning and cost estimating Member of M&A task force Cellular systems standardization manager Electronic technician and tower climber Our respondents wear a lot of different hats; one small-business owner noted his job was all of the above. We failed to ask whether specic job functions were related to research and development, but we note that R&D duties are infused in several of the job functions listed.

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey

Job History
Nearly 60 percent of our respondents had at least 10 years of experience in the communications industry, and more than 80 percent had at least ve years. Even with as much turnover as weve been hearing about anecdotally, its interesting that 26 percent of our survey respondents said they had been at their job less than three years. Now being in the industry and staying inside the same company are two different things. And, interestingly, we note that more than a third of respondents have been with their current employer for more than 10 years. Just by way of some kind of comparison, the median number of years that US workers been with their current employer was 4.4 years as of January, according to the US Bureau of Labor Statistics, so the loyalty in the telecom sector is denitely remarkable. Again, how long employees had been with their company varied by what kind of communications provider they worked for and in what geography. In India, for example, wireless is a rapidly growing industry as of recent and there has been a lot of hiring taking place in the past few years. Job history and experience also varied by job function. For instance, a lot of telecom engineers and those working on contracts are constantly moving around as network buildout needs change, says The Telecom Search Groups Chambers.

Salary
Salaries were across the board in our survey, but the highest concentration of our respondents fell in the $100,000-to-$110,000 range. Looking at communication-industry salaries from a few different angles shows that: More than 50 percent of respondents make more than $95,000 a year Ten percent of our respondents say they make more than $155,000 annually About 10 percent of those taking the survey say they make less than $35,000 annually Five percent of respondents say they make less than $25,000 a year

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey

Salaries took a hit across the communications industry when the economy got worse, but the impact wasnt always shared across all levels of employment. In a down economy, its not uncommon for C-level executives to keep their higher paychecks or even receive more of a bonus than in growth years, The University of Missouri-Columbias Meuser says. Thats because when a company is growing and has a positive future outlook, its not hard to attract talent. When new C-level execs are charged with conducting mass layoffs and freezing salaries and benets, it is much harder to attract someone to that role. Sometimes those managers with the ability to cut are not easy to nd. You still have to bid for their abilities and to put that person into that job; you need to pay them more rather than less, Meuser says. At the lower levels, however, pay cuts -- or at least freezes -- are much more common.

2010 Salary Comparisons

Our survey takers say they didnt see a huge leap in salaries compared to 2009. There was, however, some hope that things would improve shortly. Of our respondents, 28 percent said they will make the same this year as they did last year; even cost-of-living raises are on hold. Only about 16 percent thought they would see any decrease in wages. Table 1: How will your total compensation this year compare to 2009? (Source: Light Reading) Response I will make at least 10 percent more in 2010 than I did in 2009. I will make 5 to 10 percent more in 2010 than I did in 2009. I will make 1 to 5 percent more in 2010 than I did in 2009. I will make the same amount in 2010 as I did in 2009. I will make 1 to 5 percent less in 2010 than I did in 2009. I will make 5 to 10 percent less in 2010 than I did in 2009. I will make at least 10 percent less in 2010 than I did in 2009. % of Survey Respondents 16 14 26 28 6 4 6

The down economy wreaked havoc on salaries in 2009 when pay freezes and pay cuts were common. (See Microtune Notes 10% Layoff, BTs Holiday Plans, Opnext Changes CEOs, Starts Cutting, GigOptix Cuts Salaries, Nortel Loses Billions & Plans Bonuses, Comcast Execs Agree to 09 Pay Freeze, Sprint Slashes 8,000 Jobs, Moto Freezes Benets, Salaries, and Cavium Cuts Salaries.) But, a poor economy was also a reason that a lot of companies could -- and did -- lower wages just to keep their own costs lower. According to the University of Missouri-Columbias Meuser: They will always look for a way to justify a reduction [in salary] if the market conditions dont indicate that they have to pay more.

Salary Outlook for 2011

Cautious optimism, the hackneyed phrase from execs in earnings conference calls, crept into our survey when we asked respondents about 2011. Only 7.5 percent predicted pay would get worse by any degree in 2011. Among the optimistic, nearly a third of survey takers expect pay to remain at and the rest predict a positive uptick in total compensation, including bonuses or any overtime pay: Thirty-three percent expect to make 1 to 5 percent more in 2011 than they did in 2010. Seventeen percent think they will make 5 to 10 percent more in 2011 than they did in 2010. Thirteen percent believe they will make at least 10 percent more in 2011 than they did in 2010.

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey

Beth Rivera, SVP of People and Culture for UBM TechWeb, Light Readings parent company, was surprised by the amount of increases in compensation our survey respondents received considering that, she says, most companies are still at a standstill. Table 4: Looking ahead to 2011, how do you think your total compensation will change in 2011 compared with 2010? (Source: Light Reading) Response I will make at least 10 percent more in 2011 than I did in 2010. I will make 5 to 10 percent more in 2011 than I did in 2010. I will make 1 to 5 percent more in 2011 than I did in 2010. I will make the same amount in 2011 as I did in 2010. I will make 1 to 5 percent less in 2011 than I did in 2010. I will make 5 to 10 percent less in 2011 than I did in 2010. I will make at least 10 percent less in 2011 than I did in 2010. % of Survey Respondents 13 17 33 29 4 2 2

In a good economy, the industry standard for annual cost-of-living raises, not including merit-based promotions, is around 3 percent. Given that one third of our respondents believe they will receive a raise of 1 to 5 percent, it would appear the communications industry is settling back into the norm. That means that companies budget 3 percent [for raises], but it doesnt mean youll get it, Rivera says. Raises are never guaranteed, she says, but 3 percent is the average that companies plan for standard, annual raises. Merit-based raises are also common in a good economy, but thats typically pulled from a different budget. Rivera says salaries will improve or at least begin to return to normal in 2011, so the optimism is justied. To Riveras point, in general, the Financial Times and other worldly publications are reporting the return of market stabilization, industry movement, and hiring, encouraging employees to see what other opportunities are out there.

Job Satisfaction
We didnt mince words when getting the industrys attitude toward pay. The rst question of this sort we asked was: How satised are you with your current compensation package? Heres a table and a graph to show the results for that question: How satised are you with your current compensation package?

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey

Table 2: How satised are you with your current compensation package? (Source: Light Reading) % of Respondents (All) Very Satised Somewhat Satised Somewhat Dissatised Very Dissatised 14 49 29 8 % of Respondents (California Only) 16 51 27 6 % of Respondents (India Only) 6 63 19 12

In the rst question, we broke out India and California separately in addition to giving the overall data. Those telecom innovation hot spots are generally fair indicators of attitudes in the industry and our data falls right in line with that commonly held belief. In all cases, between 63 and 69 percent of the survey takers said they were either very satised or somewhat satised with their current compensation package. For the second job-satisfaction question, we asked: Which of the following factors would lead you to consider leaving your current job for another opportunity? It comes as no surprise that money matters. And so does the opportunity to advance ones career, which of course leads to more money. Here is the table and graph for that question: Reasons to Leave

Table 3: Which of the following factors would lead you to consider leaving your current job for another opportunity? Reasons to leave Signicant compensation increase (10% or more) Better opportunity for career advancement Better working conditions More nancially stable employer Better benets plan (health care, vacation policy, etc.) Better geographic location Other % of respondents 71 68 28 21 24 20 6

On this question, we allowed respondents to check all that apply, so the percentage totals wont add up to 100. We also allowed for an other eld to get a wide variety of responses. Six percent of our respondents chose to enter their own answer and most of those write-in replies mentioned retirement, moving to another industry, or nding a position in the same company, under a different boss.
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Light Readings 2010/2011 Telecom Salary Survey Headcount Changes

Our survey reveals that layoffs have declined in the past twelve months with many companies even adding people and expecting to continue adding people over the next twelve months. But there is more to the communications industrys employment dynamics than the survey suggests. When we asked our respondents how the headcount has changed in their department in the past twelve months: Thirty-ve percent said their department had added people Thirty-six percent said their department stayed the same size Twenty-nine percent said they reduced headcount in their department in the past twelve months The spread was similar when we asked how they expect departmental headcount to change in the next twelve months, although slightly more thought they would add people to their department and signicantly less thought they would continue to reduce headcount: Thirty-eight percent thought they would add people to their department, only 3 percentage points more than the number of respondents who said the same for the past twelve months Forty-six percent thought theyd stay the same, about 10 percentage points more than those who gave this answer for the previous year And, 15 percent thought theyd reduce headcount more in the next twelve months, a full 14 percentage points less than those who reported headcount reductions in the previous twelve months

The survey results suggest that layoffs began to decline last year and will continue to do so, by at least 15 percent. As we noted in the introduction, however, there may be more rounds of layoffs coming as mergers and acquisitions shake out. This is especially true in the wireline sector of the industry in which, in the past year, consolidation has been rampant. Among wireline service provider respondents, nearly 40 percent saw reductions in headcount in their department in the past year. For the wireless respondents, on the other hand, about one third of the survey takers experienced headcount reductions in the past twelve months and only 12 percent expect them to continue into the next year.

Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey Personal Outlook

Even with the promise of anonymity, survey respondents indicate a general contentment with their current jobs and say they plan to stay there for at least the next twelve months. Of the respondents, 60 percent are unlikely to leave their job in the next year, although 34 percent of them could be persuaded to leave as they are only somewhat likely to stay. The remaining 28 percent and 12 percent are somewhat likely or very likely to leave, respectively.

We also asked survey respondents to describe how they felt about their own personal careers. Again, it was primarily positive, but not overwhelmingly so. When asked how they would describe their attitude toward their personal careers: Thirty-six percent think they are well positioned for the foreseeable future Forty percent think they need to nd a position that will offer them a better career path Fifteen percent believe they have gotten about as far as they are going to get, but are comfortable with that About 8 percent agree they are as far as theyre going to get, but feel they need to do something about it Of course, we should note that the remaining 1 percent of survey respondents missing from the list said, Its all downhill from here when asked their attitude toward their personal career. Given the down economy, the focus on money over less-tangible job perks like exibility, travel, or the content of the work, is much greater. Employees are seeking job security, stability, and a steady paycheck. Meuser says that even if an employee indicates he would leave to pursue a greater opportunity, that in some way reects a desire for higher earnings. It likely means the opportunity to make more money. Telecom recruiter Chambers agreed that his candidates look at the base pay -- not bonuses, which are not guaranteed -- more than anything else. Of course, with the economy still eking out of recovery, they have to settle for less than they once did. If you are a skilled engineer with 10 years experience, nding a job isnt a problem, Chambers says. But if your employer lays you off making $150,000, you may have to take an equivalent job for only $100,000 per year.

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Light Readings 2010/2011 Salary Survey

Light Readings 2010/2011 Telecom Salary Survey Employer Outlook

Our survey respondents reported feeling more positively about their employers future than their own. Whereas 36 percent thought they were personally well positioned for success, a full 10 percent more thought their employer was well positioned too. When asked how they would describe their attitude toward their employers future: Forty-six percent think their company is well positioned to succeed in its market sector for the foreseeable future Thirty-one percent admit the company is now struggling, but are condent it can succeed in its market sector Thirteen percent believe the company is struggling, but its entire market sector is in trouble About 9 percent say their company is falling behind the competition and is in danger of failing if it doesnt x its problems Again, around 1 percent perhaps the same 1 percent that thought it was all downhill personally responded that their companies are quite simply doomed. Even with responses across the board in terms of how much their employer is struggling, our survey respondents were generally satised with their current employer. Only 6 percent were very unsatised and another 21 percent said they were somewhat dissatised. The remaining 73 percent said they were somewhat or very satised, with the vast majority leaning toward the more lukewarm somewhat satised response.

Overall, most in the communications industry reported being satised, although admit to struggling at both a personal and companywide level. Like most things, this dichotomy is a reection of a troubled economy. With their company hat on, people feel compelled to think or at least to say that their company has a good or at least plausible chance of success, says Patrick Donegan, senior analyst, Heavy Reading . Although only 11 percent of those surveyed reckoned their company was either falling behind or doomed, the reality of the telecom market is obviously quite a bit harsher than that. Donegan believes that if this survey were conducted across other public or private industries, the communications industry would fare relatively well in comparison. For the most part, the survey respondents were positive about their current situations and optimistic about the future. Thats not the norm across all industries. Compared to the possibility of moving into a serious second portion of the recession, we are doing much better than the worst fears, although not as well as the most positive hopes, University of Missouri-Columbias Mueser. Its all relative to expectations. Sarah Reedy, Senior Reporter, Light Reading Mobile
Light Readings 2010/2011 Salary Survey 11