Engineers Remuneration | Summary Report

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Gordon Dam, TasmaniaNational engineering landmark

SUMMARY REPORT

FEBRUARY 2016

A S S O C I A T I O N O F

Professional Engineer Remuneration Survey

2016 Professional Engineer Remuneration Survey Summary Report / 2

A S S O C I A T I O N O F

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COMMENTARYResponses from the most recent survey have displayed a number of interesting trends in engineer remuneration. While salaries across each industry increased to varying degrees, overall the trend is relatively positive for engineers.

Over the past year, median wages across the profession have increased by 2.42%, slightly outpacing the wage price index (WPI) at 2.30%, which measures wage increases across

GRAPH 1 - MEAN ANNUAL SALARY MOVEMENT BY SECTOR OF EMPLOYMENT

GRAPH 2 - ANNUAL SALARY MOVEMENTS AGAINST ECONOMIC INDICATORS (2010 - 2015)

the economy. Overall, this performance is a good sign for the wider engineering sector, as it points to rising demand for engineering skill and recognition of the importance of technical expertise. The rate of increase in engineering salaries also significantly outperformed the consumer price index (CPI) over the past year, meaning that the real wage and buying power of engineers is increasing.

2010 2011 2012 2013 2014 2015 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0% CPI*

WPI* PUBLIC

PRIVATE

2.22

%

2.50

%

2.3%

1.5%

2.42

%

PRIVATE SECTOR

PUBLIC SECTOR

WPI (SEPT '15) CPI (SEPT '15) ALL 0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

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INDUSTRY WAGE GROWTHAcross industries, the growth in salaries has been strongly linked to the performance and strength of the industry itself. Strong-performing industries with a rising revenue base have delivered solid salary growth for their engineering employees, while the weaker performance of other industries can be seen reflected in relatively modest wage increases.

The reasonably strong growth in engineering salaries overall was primarily driven by the strong performance of wages in transport and storage, communications, and public administration. Engineering salaries in transport and storage have been supported by strong revenue growth in the wider logistics sector. The sector has rapidly implemented new technology over the past five years, responding to market demand for faster, automated logistics to cater for increasingly lean inventory practices. The communications industry has exhibited a similar trend, with consumers demanding quality and reliability, forcing operators to employ skilled engineers and invest in new technology in order to deliver better services. The upward trend within these industries is expected to continue over the coming years, as logistics players seek to improve their efficiency through mix of better technology and expertise.

While some industries outperformed in terms of salary increases, the rise in remuneration across other industries was more modest. Mining and quarrying, manufacturing, and electricity and gas exhibited the weakest growth, with salaries restrained by softer revenue growth in their respective industries. The end of the resource price boom and the shift towards mining higher volumes placed downward pressure on demand for engineers in the sector, with this pressure limiting wage growth for engineers who are in highest demand during the construction phase. A similar trend has been present in manufacturing, with the decline of some manufacturing industries, such as automotive manufacturing, limiting wage growth for engineers. Growth in engineering salaries in electricity and gas was not limited by weak demand, but rather by the regulators, as governments intervened to reduce electricity prices. However, a strong base of technical expertise will be important as utilities seek to deliver cheaper, more efficient networks, and this is likely to provide support for engineering wages over the coming years.

GRAPH 3 - MEAN ANNUAL SALARY MOVEMENT BY INDUSTRY

2.79%

1.49%

2.18%

2.20%

2.61%

2.74%

2.80%

3.05%

3.09%

3.26%

3.27%

3.39%

3.60%

ALL INDUSTRIES

MINING OR QUARRYING

MANUFACTURING

ELECTRICITY AND GAS SUPPLY

DEFENSE

TRANSPORT EQUIPMENT

OTHER

CONSULTING & TECHNICAL SERVICES

WATER, SEWERAGE AND DRAINAGE

CONSTRUCTION, CONTRACT OR MAINTENANCE

PUBLIC ADMINISTRATION

COMMUNICATIONS

TRANSPORT AND STORAGE

0% 1% 1.5% 2% 2.5% 3% 3.5% 4%

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AVERAGE WAGESAnother key area of comparison between industries is the overall average wage, as measured by median total package, for engineers. Respondents in electricity and gas supply reported the highest average wage ($151,110), followed by engineers in mining and quarrying ($143,850), oil/gas exploration and production ($141,462), and communications ($137,400). Historically high demand and regulatory support – albeit easing at present – have contributed to the stronger wages in these industries, particularly in electricity and in mining, where investment over the past five years have been quite strong.

Conversely, engineers in manufacturing recorded the lowest average wage ($113,478), followed by consulting and technical services ($114,975), defence ($119,010), and transport and storage ($124,203). Lower wages in these industries are caused by a number of factors; however those industries offering lower wages run the risk of losing talent to other industries providing stronger financial incentives. The weaker performance of manufacturing over the past decade has pushed many manufacturers to minimise wage costs. However, the need to develop better technologies and processes to compete with cheaper imported products

GRAPH 4 - MEDIAN ANNUAL TOTAL PACKAGE BY INDUSTRY

means that remaining manufacturers will need to strengthen their investment in their workforce over the coming years, beginning with engineering. Interestingly, the transport and storage industry is currently undergoing a similar trend, with operators now recognising the need for investment in skilled engineering staff. As a result, while wages in transport and storage remain among the lower industries, annual growth in wages is among the fastest. Consulting and technical services and defence also recorded relatively low average wages for engineers due to weaker revenue in recent years. This trend will need to change if these industries wish to remain an attractive destination for high-quality engineering talent.

$113,478

$114,975

$115,564

$119,010

$124,203

$128,200

$130,600

$133,615

$137,069

$137,400

$141,462

$143,850

$151,110

CONSULTING & TECHNICAL SERVICES OTHER DEFENSE TRANSPORT & STORAGE

CONSTRUCTION, CONTRACT OR MAINTENANCE PUBLIC ADMINISTRATION TRANSPORT EQUIPMENT WATER, SEWERAGE & DRAINAGE COMMUNICATIONS

OIL/GAS EXPLORATION & PRODUCTION MINING OR QUARRYING ELECTRICITY & GAS SUPPLY

$50k $70k $90k $110k $130k $150k $170k

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PUBLIC VS PRIVATEThe public-sector outperformed the private-sector over the past year, delivering a 2.50% increase in salaries. Private-sector wage growth was more modest, at 2.22%, held back by the weaker performance of some private-sector-based industries. Overall, median wages in the public-sector outperformed those of the private-sector, with a median base salary of

GRAPH 5 - MEDIAN BASE SALARY & TOTAL PACKAGE BY SECTOR OF EMPLOYMENT

GRAPH 6 - ALL FULL TIME RESPONDENTS - MEDIAN BASE SALARY BY RESPONSIBILITY LEVEL

The disparity between salaries in the private-sector and the public-sector was driven primarily by higher public-sector remuneration at lower responsibility levels. Public-sector engineers exhibited higher median salaries as Levels 1, 2 and 3, with a large portion of engineers employed at these levels. Private-sector remuneration surpassed the public-sector at higher levels; however there are relatively few opportunities

$119,353 and a total package of $135,938. This represents a significant outperformance of private-sector salaries, which recorded a median base salary and total package of $108,000 and $128,171 respectively. Overall, respondents to the survey across all sectors recorded a median base salary of $115,000 and a median total package of $132,609.

at these levels, meaning that the public-sector remains the most attractive destination for most engineers at most levels of responsibility. While the opportunity to progress to higher wages in the private-sector remains an appealing option for prospective engineers, the private-sector may need to review its remuneration structure over the coming years if it wishes to attract and retain the best and brightest engineering minds.

$108

,000

$119

,353

$115

,000

$128

,171

$135

,938

$132

,609

PRIVATE SECTOR PUBLIC SECTOR ALL

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000 BASE SALARY TOTAL PACKAGE

$60,

000

$83,

000

$105

,000

$124

,750

$160

,000

$215

,000

$71,

864

$95,

009

$112

,000

$125

,000

$144

,500

$148

,898

$63,

200

$89,

500

$109

,320

$125

,000

$150

,000

$172

,000

LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 ABOVE LEVEL 5 $0

$50,000

$100,000

$150,000

$200,000

$250,000

PRIVATE SECTOR PUBLIC SECTOR ALL SECTORS

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TABLE 1 - BASE SALARY & TOTAL PACKAGE BY RESPONSIBILITY LEVEL - ALL SECTORS

NBASE SALARY TOTAL PACKAGE

LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN

LEVEL 1 49 $57,487 $63,200 $72,000 $65,302 $62,415 $71,175 $85,619 $74,244

LEVEL 2 94 $76,500 $89,500 $102,375 $92,797 $83,768 $105,309 $123,366 $106,882

LEVEL 3 196 $93,000 $109,320 $124,000 $111,215 $105,092 $125,706 $141,997 $126,951

LEVEL 4 205 $108,382 $125,000 $150,000 $131,444 $126,597 $146,850 $174,720 $154,659

LEVEL 5 82 $127,400 $150,000 $171,314 $157,176 $145,073 $170,135 $201,294 $184,540

ABOVE LEVEL 5 19 $140,061 $172,000 $200,000 $175,416 $155,899 $196,275 $251,850 $213,558

TABLE 2 - BASE SALARY & TOTAL PACKAGE BY RESPONSIBILITY LEVEL - PRIVATE SECTOR

NBASE SALARY TOTAL PACKAGE

LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN

LEVEL 1 36 $55,854 $60,000 $65,000 $62,454 $60,350 $65,875 $82,616 $72,078

LEVEL 2 49 $72,000 $83,000 $98,000 $88,219 $78,840 $94,940 $113,671 $102,746

LEVEL 3 103 $91,009 $105,000 $125,000 $110,290 $104,025 $122,481 $141,162 $125,756

LEVEL 4 98 $107,742 $124,750 $153,000 $134,280 $125,634 $148,827 $185,047 $159,220

LEVEL 5 32 $136,986 $160,000 $190,600 $171,280 $163,135 $189,250 $224,225 $204,917

ABOVE LEVEL 5 6 $196,000 $215,000 $235,000 $231,833 $228,683 $258,838 $311,063 $292,450

TABLE 3 - BASE SALARY & TOTAL PACKAGE BY RESPONSIBILITY LEVEL - PUBLIC SECTOR

NBASE SALARY TOTAL PACKAGE

LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN

LEVEL 1 13 $67,174 $71,864 $77,835 $73,189 $73,555 $75,900 $87,280 $80,244

LEVEL 2 44 $79,737 $95,009 $109,546 $97,443 $87,313 $107,465 $129,197 $111,113

LEVEL 3 93 $93,120 $112,000 $123,000 $112,240 $107,003 $127,473 $142,544 $128,276

LEVEL 4 105 $110,000 $125,000 $144,500 $129,195 $128,225 $146,250 $171,985 $150,948

LEVEL 5 50 $124,000 $144,500 $167,000 $148,150 $141,218 $164,525 $187,732 $171,500

ABOVE LEVEL 5 13 $124,993 $148,898 $172,000 $149,377 $152,053 $176,141 $196,275 $177,146

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GRAPH 7 - TREND LINES: MEDIAN TOTAL PACKAGE BY YEARS OF EXPERIENCE & SECTOR

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

< 2

2 TO

4

4 TO

6

6 TO

8

8 TO

10

10 TO

12

12 TO

14

14 TO

16

16 TO

18

18 TO

20

20 TO

25

25 TO

30

30 TO

35

35 +

PUBLIC SECTOR

PRIVATE SECTOR

LEVEL AND EXPERIENCEAs expected, the level of remuneration received is directly related to the level of responsibility of the engineer. However, while wages tend to rise steadily with the level of responsibility, the high number of mid-level respondents suggests that reaching the high salary brackets can be difficult. Among those in levels 5 and above, private-sector engineers received significantly higher salaries, with the median total package among those above level 5 in the private-sector reaching $258,838, compared with $176,141 in the public-sector. The disparity suggests that public-sector salaries are subject to a ceiling, while the potential for larger salaries in the private-sector is less limited.

While upper-level salaries tend to be high in the private-sector, this opposite is true of low-level roles. At level 1, the median private-sector total package was $65,875, well below the

public-sector’s $75,900. These significantly higher salaries in entry-level public-sector roles will make these positions much more attractive to prospective engineers, improving their capacity to attract and retain skilled graduates. However, the limited scope for salary improvement as responsibility level increases may encourage high-level public-sector engineers to seek new opportunities in the private-sector for greater financial reward.

Similar trends were present based on years of experience, with graduate engineers attracting much higher wages in the public-sector compared with those in the private-sector. Again, the potential for salary increases is larger in the private-sector, while a ceiling is present for public-sector wages limiting wage rises.

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TABLE 4 – BASE SALARY & TOTAL PACKAGE BY YEARS OF EXPERIENCE - PRIVATE SECTOR

TABLE 5 – BASE SALARY & TOTAL PACKAGE BY YEARS OF EXPERIENCE - PUBLIC SECTOR

NBASE SALARY TOTAL PACKAGE

LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN

LESS THAN 2 34 $57,000 $61,690 $79,000 $70,833 $60,475 $71,723 $95,200 $85,097

2 TO LESS THAN 4 28 $60,790 $65,500 $77,250 $69,409 $65,875 $70,388 $81,250 $77,025

4 TO LESS THAN 6 33 $76,175 $89,000 $100,361 $90,984 $81,970 $104,130 $113,075 $102,895

6 TO LESS THAN 8 24 $81,115 $101,300 $114,500 $99,665 $90,463 $111,914 $131,208 $113,966

8 TO LESS THAN 10 15 $82,000 $91,000 $120,000 $101,726 $89,790 $102,775 $137,500 $112,453

10 TO LESS THAN 12 22 $97,030 $100,860 $130,000 $121,208 $107,937 $114,476 $151,110 $139,911

12 TO LESS THAN 14 15 $95,000 $120,000 $130,000 $118,199 $104,025 $134,685 $157,275 $133,890

14 TO LESS THAN 16 18 $100,617 $127,500 $165,000 $135,846 $122,649 $143,758 $182,865 $160,560

16 TO LESS THAN 18 9 $119,000 $143,000 $200,000 $154,444 $131,400 $189,885 $219,779 $182,557

18 TO LESS THAN 20 20 $113,740 $124,615 $141,500 $127,698 $132,640 $143,193 $178,514 $151,841

20 TO LESS THAN 25 29 $110,000 $129,194 $150,000 $139,282 $126,597 $148,500 $175,807 $169,509

25 TO LESS THAN 30 27 $126,000 $156,000 $192,600 $164,446 $155,296 $188,668 $229,452 $193,100

30 TO LESS THAN 35 29 $121,411 $140,000 $172,000 $156,424 $143,179 $162,031 $214,140 $185,857

35 OR MORE 21 $118,800 $128,000 $145,000 $135,525 $132,086 $149,400 $181,364 $164,506

ALL RESPONDENTS 324 $83,319 $108,000 $137,493 $117,168 $95,070 $128,171 $160,369 $137,339

NBASE SALARY TOTAL PACKAGE

LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN LOWER QUARTILE MEDIAN UPPER

QUARTILE MEAN

LESS THAN 2 12 $64,500 $72,500 $102,000 $84,017 $72,054 $87,323 $116,609 $96,332

2 TO LESS THAN 4 15 $73,000 $80,000 $102,000 $86,411 $80,300 $87,280 $112,200 $97,449

4 TO LESS THAN 6 18 $79,144 $95,167 $110,000 $98,096 $87,058 $109,566 $131,500 $112,298

6 TO LESS THAN 8 23 $86,828 $104,000 $125,000 $108,060 $101,552 $117,600 $141,058 $125,093

8 TO LESS THAN 10 17 $98,000 $105,000 $123,951 $110,080 $107,800 $120,750 $149,500 $126,357

10 TO LESS THAN 12 15 $90,000 $102,732 $117,537 $101,842 $99,000 $113,874 $137,582 $119,114

12 TO LESS THAN 14 23 $107,000 $119,000 $131,000 $122,146 $121,939 $133,590 $155,163 $143,665

14 TO LESS THAN 16 16 $99,500 $119,747 $136,955 $119,953 $111,977 $137,699 $155,483 $138,688

16 TO LESS THAN 18 25 $108,382 $130,000 $150,000 $129,848 $120,304 $147,400 $175,500 $147,322

18 TO LESS THAN 20 17 $99,500 $124,000 $137,000 $119,641 $114,823 $135,780 $170,743 $136,147

20 TO LESS THAN 25 26 $106,548 $120,000 $134,750 $125,887 $121,931 $134,445 $153,694 $143,569

25 TO LESS THAN 30 28 $108,420 $122,477 $137,031 $124,566 $119,995 $141,590 $153,054 $141,408

30 TO LESS THAN 35 38 $120,000 $140,231 $166,747 $140,391 $140,779 $160,463 $188,340 $163,823

35 OR MORE 45 $119,000 $140,000 $165,000 $145,183 $136,145 $160,160 $195,088 $171,109

ALL RESPONDENTS 318 $100,000 $119,353 $138,403 $121,359 $113,285 $135,938 $160,895 $140,218

2016 Professional Engineer Remuneration Survey Summary Report / 9

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GRADUATE SALARIESGraduate engineers responding to the survey who had commenced their first full-time professional engineering role in the last 12 months were asked to provide their starting rate of pay. New graduates had a median base salary of $60,000 and mean of $61,874.

GRAPH 8 - DISTRIBUTION OF GRADUATE COMMENCING SALARIES

GRAPH 9 - MEDIAN ANNUAL SALARY MOVEMENT BY STATE

The median salary reported by survey respondents fell very much in line with recently released GradStats figures for 2015, which also found a median starting salary of $60,000 among graduate engineers.

Overall, graduate salaries for engineers are relatively strong when compared with other professions. This discrepancy is likely due to Australia’s low supply of engineering graduates relative to demand, with 9,667 new graduates in the 2014 calendar year. While this number may seem relatively solid, in 2014-15 a total of 20,484 engineers were granted temporary or permanent visas under the skilled migration program, a record high. Therefore, Australia’s domestic production of new engineers only accounts for about one third of demand, forcing employers to provide competitive salaries in order to attract the best talent.

REMUNERATION BY STATEAnnual salary movements across the states tended to be very similar, except for in Victoria which had the highest median annual salary movement at 3%, and ACT and NT which had the lowest median annual salary movements, both at 0%.

The results of the survey align with recent ABS data, which also recorded the highest rate of annual wage growth in Victoria. The higher rate of wage growth in Victoria, and to a lesser extent New South Wales is somewhat due to the greater demand for qualified engineers in these states. The eastern seaboard states have also been less affected by the slowdown in mining construction activity, which has limited wage growth in other states to a degree.

Collectively, engineers in Victoria and New South Wales account for 61.5 per cent of the workforce, with many companies maintaining their head office locations in these states. Queensland and Western Australia hold the next largest shares of the labour force, followed by South Australia

LOWER QUARTILE MEDIAN UPPER QUARTILE MEAN $48K $50K $52K $54K $56K $58K $60K $62K $64K $66K $68K

$55,

000

$60,

000

$65,

978

$61,

874

0.00

%

0.00

%

VIC NSW TAS WA QLD SA ACT NT 0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

3.00

%

2.32

%

2.27

%

2.22

%

2.01

%

1.91

%

2016 Professional Engineer Remuneration Survey Summary Report / 10

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RESPONSIBILITY LEVEL DEFINITIONSLEVEL 1 PROFESSIONAL ENGINEER

The graduate engineer (as defined) commencement level.

The engineer undertakes initial professional engineering tasks of limited scope and complexity, such as minor phases of broader assignments, in office, plant, field or laboratory work.

Under supervision from higher-level professional engineers as to method of approach and requirements, the professional engineer performs normal professional engineering work and exercises individual judgement and initiative in the application of engineering principles, techniques and methods.

In assisting more senior professional engineers by carrying out tasks requiring accuracy and adherence to prescribed methods of engineering analysis, design or computation, the engineer draws upon advanced techniques and methods learned during and after the undergraduate course.

Training, development and experience using a variety of standard engineering methods and procedures enable the professional engineer to develop increasing professional judgement and apply it progressively to more difficult tasks at Level 2.

Decisions are related to tasks performed, relying upon precedent or defined procedures for guidance. Recommendations are related to solution of problems in connection to the tasks performed.

Work is reviewed by higher-level professional engineers for validity, adequacy, methods and procedures. With professional development and experience, work receives less review, and the professional engineer progressively exercises more individual judgement until the level of competence at Level 2 is achieved.

The professional engineer may assign and check work of technical staff assigned to work on a common project.

LEVEL 2 PROFESSIONAL ENGINEER

Following development through Level 1 he/she is an experienced engineer (as defined) who plans and conducts professional engineering work without detailed supervision, but with guidance on unusual features and who is usually engaged on more responsible engineering assignments requiring substantial professional experience.

LEVEL 3 PROFESSIONAL ENGINEER

A professional engineer performing duties requiring the application of mature professional engineering knowledge. With scope for individual accomplishment and co-ordination of more difficult assignments, the professional deals with problems for which it is necessary to modify established guides and devise new approaches.

The professional engineer may make some original contribution or apply new professional engineering approaches and techniques to the design or development of equipment or special aspects of products, facilities and buildings.

Recommendations may be reviewed for soundness of judgement but are usually regarded as technically accurate and feasible. The professional engineer makes responsible decisions on matters assigned, including the establishment of professional engineering standards and procedures, consults, recommends and advises in speciality engineering areas.

Work is carried out within broad guidelines requiring conformity with overall objectives, relative priorities and necessary co-operation with other units. Informed professional engineering guidance may be available.

The professional engineer outlines and assigns work, reviews it for technical accuracy and adequacy, and may plan, direct, co-ordinate and supervise the work of other professional and technical staff.

LEVEL 4 PROFESSIONAL ENGINEER

A professional engineer required to perform professional engineering work involving considerable independence in approach, demanding a considerable degree of originality, ingenuity and judgement, and knowledge of more than one field of, or expertise (for example, acts as his/her organisation’s technical reference authority) in a particular field of professional engineering.

The professional engineer:

• initiates or participates in short-range or long-range planning and make independent decisions on engineering policies and procedures within an overall program;

• gives technical advice to management and operating departments;

• may take detailed technical responsibility for product development and provision of specialised engineering systems, facilities and functions;

• co-ordinates work programs; and

• directs or advises on use of equipment and material.

The professional engineer makes responsible decisions not usually subject to technical review, decides courses of action necessary to expedite the successful accomplishment of assigned projects, and may make recommendations involving large sums or long-range objectives.

Duties are assigned only in terms of broad objectives and are reviewed for policy, soundness of approach, accomplishment and general effectiveness.

The professional engineer supervises a group or groups including professional engineers and other staff, or exercises authority and technical control over a group of professional staff, in both instances engaged in complex engineering applications.

LEVEL 5 PROFESSIONAL ENGINEER

A professional engineer usually responsible for an engineering administrative function, directing several professional and other groups engaged in inter-related engineering responsibilities, or as an engineering consultant. Achieving recognition as an authority in an engineering field of major importance to the organisation.

The professional engineer independently conceives programs and problems to be investigated and participates in discussions determining basic operating policies, devising ways of reaching program objectives in the most economical manner and of meeting any unusual conditions affecting work progress.

The professional engineer makes responsible decisions on all matters, including the establishment of policies and expenditures of large sums of money and/or implementation of major programs, subject only to overall policy and financial controls.

The professional engineer receives administrative direction based on organisation policies and objectives. Work is reviewed to ensure conformity with policy and co-ordination with other functions.

The professional engineer reviews and evaluates technical work; selects, schedules, and co-ordinates to attain program objectives: and/or as administrator, makes decisions concerning selection, training, rating, discipline and remuneration of staff.

ABOUT THE SURVEYThe Professional Engineer Remuneration Survey was conducted online during October 2015 using the past and present engineering member base of Professionals Australia. In total, 970 completed questionnaires were returned and have been used for analyses contained in the January 2016 Professional Engineers Remuneration Survey Report; of which this is a summary.

Professionals Australia has been conducting six monthly salary surveys of members since 1974.

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A number of responses did not contain information in all fields. Where the number of respondents in any category is below three, results have not been reported in order to ensure the anonymity of respondents is maintained. As such, the sum of all returned data in any given table may not add up to the total number of responses received. In order to provide more comprehensive information on professional engineers’ remuneration, Professionals Australia publishes a detailed report on the survey every six months.

The survey is the largest of its kind undertaken in Australia and represents an authoritative picture of the remuneration of professional engineers.

TERMS USED• Base Salary: annual salary component of a contract of employment exclusive of any additional allowances, payments or non-cash benefits.

• Total Package: Base salary plus the value of all components of remuneration including allowances, payments and non cash benefits.

o Where a non-cash benefit such as a motor vehicle is provided, an estimate is made of the salary equivalent value of the benefit.

• Annual Salary Movement: The percentage change in salaries of participants over the last 12 months that remain in the same role.

• N: the number of observations recorded for each category.

• Lower Quartile: The value below which 25% of observations were recorded.

o Not reported where N is less than 5.

• Median: The value below which 50% of observations were recorded.

o Not reported where N is less than 4.

• Upper Quartile: The value below which 75% of observations were recorded.

o Not reported where N is less than 5.

• Mean: The sum of individual values divided by the number of observations.

o Not reported where N is less than 3.

• Response %: Proportion of the survey sample represented by the number of observations in a given category.

• SNR (Sample not Representative): Indicates a category for which there were not enough responses to report results.

ONLINE ACCESSMembers of Professionals Australia and subscribers to the Professional Engineer Remuneration Survey Report have access to the online Engineers Calculator from the Professionals Australia website.

This interactive tool is used to produce custom reports on the remuneration of engineers based on a variety of criteria selected by the user. Parameters by which analyses may be performed include state, industry, qualification, years of experience, employment sector, engineering discipline, and responsibility level.

The Professional Engineers Salary Calculator is accessible at http://www.professionalsaustralia.org.au/financial-edge/salary-calculators/engineers-calculator/. Members will need their membership number to log-in, subscribers are provided log-in details when ordering copies of the report.

Gordon Dam, TasmaniaNational engineering landmark

PROFESSIONAL ENGINEER REMUNERATION SURVEY REPORT

JANUARY 2016

A S S O C I A T I O N O F

PREPARED BY THE ASSOCIATION OF PROFESSIONAL ENGINEERS AUSTRALIA, FOR OUR MEMBERS, AND FOR THE PROFESSION.

HOW TO ORDERThe January 2016 Professional Engineer Remuneration Survey Report is available as a full-colour 144 page publication as well as an online downloadable edition and available to purchase together for $330 (inc. GST) per copy.

Each copy of the report you purchase comes with log-in credentials for the Professional Engineer Salary Calculator tool available on our website.

Professionals Australia members are eligible for a significant discount on the publication at $99 (inc. GST) for the first copy they purchase for personal use.

If purchasing the report from overseas an additional $10 is charged to cover international postage.

For more information about purchasing the report visit http://www.professionalsaustralia.org.au/financial-edge/salary-survey-reports/professional-engineers/ where you can order the report online using secure e-commerce, or download and complete an order form to fax to Professionals Australia.

If you have any questions, please contact Professionals Australia’s Surveys unit via e-mail surveys@professionalsaustralia.org.au or phone (03) 9695 8839.

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Compiled and arranged by Alex Crowther and Stephen Gargano.

Copyright © 2016 by Professionals Australia all rights reserved. No part of this work may be reproduced or stored in any form, especially typographically, electronically and including photocopying, without written permission of the publisher. The use of material for private study, research or criticism is excepted from the reservation and may be undertaken within the accepted meaning of fair dealing. The publisher makes representation, in any form, as to the accuracy of the information contained in this work and cannot accept any legal responsibility for errors, omissions or consequences of any action taken by readers.