Light Reading Salary Survey 2010

8/3/2019 Light Reading Salary Survey 2010

1/11

Light Readings2010/2011 Telecom Salary Survey

Light Readings 2010/2011 Salary Survey 1

Light Readings

2010/2011 Telecom Salary Survey Report

By Sarah Reedy, Sr. Reporter, Light Reading

Published by LightReading.com


2/11


2 Light Readings 2010/2011 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 flat, but it didnt squash everyones optimism -- most respondents are looking ahead to a

brighter, more lucrative future.

In the first 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 flat salaries across the board, the industry is largely satisfied 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 flat 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 satisfied 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 waterThe 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 percentstayed 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

reflected 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 firms shed redundant positions.To provide a more

granular view of the telecom industry today, weve broken down the survey to find out who is hiring, firing, 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 firms are placing

their bets.


3/11



Who Works WhereSurvey respondents spanned all sectors in the communications industry, with about a third coming from service providers.

Of the global service provider community:

Twenty-five 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, test-

and-measurement vendors, and more still. Respondents

also included government employees, those in the

education field, 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/Pacific 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 againRandy 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 thesmart 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.


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Job Function

As noted earlier, most new hiring in the industry is

happening to fill sales, marketing, and engineeringpositions. 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 identified 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 finance, 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 specific job functions were related to research and development, but we note that R&D duties are infused in

several of the job functions listed.


5/11



Job History

Nearly 60 percent of our respondents

had at least 10 years of experience in thecommunications industry, and more than 80

percent had at least five 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 definitely 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.

SalarySalaries 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 respondentsmake more than $95,000 a year

Ten percent of our respondents say theymake more than $155,000 annually

About 10 percent of those taking thesurvey say they make less than $35,000annually

Five percent of respondents say they

make less than $25,000 a year


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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 benefits, it is much harder to attract someone to that role.

Sometimes those managers with the ability to cut are not easy to find. 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 ComparisonsOur 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. Onlyabout 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 % of Survey Respondents

I will make at least 10 percent more in 2010 than I did in 2009. 16

I will make 5 to 10 percent more in 2010 than I did in 2009. 14


I will make the same amount in 2010 as I did in 2009. 28

I will make 1 to 5 percent less in 2010 than I did in 2009. 6


I will make at least 10 percent less in 2010 than I did in 2009. 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 Benefits, 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 2011Cautious 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 flat 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.


7/11



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 % of Survey Respondents

I will make at least 10 percent more in 2011 than I did in 2010. 13



I will make the same amount in 2011 as I did in 2010. 29



I will make at least 10 percent less in 2011 than I did in 2010. 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 justified. 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 SatisfactionWe didnt mince words when getting the industrys attitude toward pay. The first question of this sort we asked was: How satisfied areyou with your current compensation package?

Heres a table and a graph to show the results for that question:

How satisfied are you with your current compensation package?


8/11



Table 2: How satisfied are you with your current compensation package? (Source: Light Reading)

% of Respondents % of Respondents % of Respondents(All) (California Only) (India Only)

Very Satisfied 14 16 6Somewhat Satisfied 49 51 63

Somewhat Dissatisfied 29 27 19

Very Dissatisfied 8 6 12

In the first 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 satisfied or somewhat satisfied 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 ofcourse 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 % of respondents

Significant compensation increase (10% or more) 71

Better opportunity for career advancement 68Better working conditions 28

More financially stable employer 21

Better benefits plan (health care, vacation policy, etc.) 24

Better geographic location 20

Other 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 field 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 finding a position in the same company, under a different boss.


9/11



Headcount ChangesOur 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-five 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 significantly 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.


10/11



Personal OutlookEven 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 find 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 flexibility, 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 reflects 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, finding a job isnt a problem, Chambers says. But if your employer lays you of

making $150,000, you may have to take an equivalent job for only $100,000 per year.


11/11



Employer OutlookOur 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 confident 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 fix 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

satisfied with their current employer. Only 6 percent were very unsatisfied and another 21 percent said they were somewhat dissatisfied.

The remaining 73 percent said they were somewhat or very satisfied, with the vast majority leaning toward the more lukewarm

somewhat satisfied response.

Overall, most in the communications industry reported being satisfied, although admit to struggling at both a personal and company-

wide level. Like most things, this dichotomy is a reflection 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

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