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Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
Salary And Project Budgeting Data Tools
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Salary And Project Budgeting Data Tools

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Rick O'Sullivan's presentation from the 2008 STC Technical Communication Summit on the updated salary database

Rick O'Sullivan's presentation from the 2008 STC Technical Communication Summit on the updated salary database

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    • 1. Salary and Project Budgeting Data Tools: How to Use STC’s Salary Database in Employment Decisions Richard C. O’Sullivan, Principal Change Management Solutions Cassidy Canzani, Economist U.S. Bureau of Labor Statistics
    • 2. Goal of This Session <ul><li>Gain sufficient understanding of the Occupational Employment Statistics (OES) to: </li></ul><ul><ul><li>Make a case for a raise or a new salary level </li></ul></ul><ul><ul><li>Compare wages in different industries </li></ul></ul><ul><ul><li>Estimate labor costs for a TC project by industry </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 3. STC’s Knowledge-based Governance Survey <ul><li>Question: What is Your Most Important Use of the Salary Survey? </li></ul><ul><li>Each of the following statements had the highest percentage as “Extremely important” </li></ul><ul><ul><li>Help my employer understand my value 69% </li></ul></ul><ul><ul><li>Find a new job in my current industry 58% </li></ul></ul><ul><ul><li>Find a new job in another part of the country 42% </li></ul></ul><ul><ul><li>Find a new job in a different industry 32% </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 4. What Happened to the STC Salary Survey? <ul><li>It has been brought into “drydock.” </li></ul><ul><li>Methodology inconsistent with other salary surveys </li></ul><ul><ul><li>Titles instead of functional descriptions </li></ul></ul><ul><ul><li>Data provided by employee instead of employer </li></ul></ul><ul><ul><li>Failed to impress your key audience – HR and Management </li></ul></ul><ul><li>Lack of consensus on common functional job descriptions </li></ul><ul><ul><li>Left to TC-BOK to identify core professional skills that make technical communication unique </li></ul></ul><ul><ul><li>From this, develop TC functional descriptions </li></ul></ul><ul><li>OES data as a short term statistical bridge </li></ul><ul><ul><li>Employers already use it </li></ul></ul><ul><ul><li>Provides comparability with other professions with whom you compete </li></ul></ul><ul><ul><li>Geographic and industry detail </li></ul></ul><ul><ul><li>Comparable with other labor data collected by BLS that were not included in STC salary survey (e.g. benefits) </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 5. What is the Occupational Employment Statistics (OES) Survey? <ul><li>The OES is the only comprehensive source of regularly produced occupational employment and wage rate information for the U.S. economy </li></ul><ul><li>OES data are used: </li></ul><ul><ul><li>By job seekers and employers to determine salary ranges for different occupations in different locations and in different industries </li></ul></ul><ul><ul><li>As job placement aids by career counselors and HR professionals </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 6. Where Do the Data Come From? <ul><li>Survey conducted by BLS of 1.2 million establishments over three years </li></ul><ul><ul><li>Six semiannual panels of 200,000 establishments </li></ul></ul><ul><ul><li>65% of all employment in the U.S. </li></ul></ul><ul><ul><li>Estimates reflect all employees, both full-time and part-time </li></ul></ul><ul><ul><li>Individual locations – not companies </li></ul></ul><ul><ul><li>Collected from employers – not employees </li></ul></ul><ul><ul><ul><li>Considered more credible </li></ul></ul></ul><ul><li>Covers over 800 occupations </li></ul><ul><ul><li>You can compare your wages with other competing professions </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 7. What is included? <ul><li>Included </li></ul><ul><li>Base rate </li></ul><ul><li>Cost-of-living allowances </li></ul><ul><li>Guaranteed pay </li></ul><ul><li>Hazardous-duty pay </li></ul><ul><li>Incentive pay including commissions and production bonuses </li></ul><ul><li>On-call pay </li></ul><ul><li>Tips </li></ul><ul><li>Excluded </li></ul><ul><li>Back pay </li></ul><ul><li>Jury duty pay </li></ul><ul><li>Overtime pay </li></ul><ul><li>Severance pay </li></ul><ul><li>Shift differentials </li></ul><ul><li>Nonproduction bonuses </li></ul><ul><li>Tuition reimbursements </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 8. Hourly versus Annual Wage Estimates <ul><li>BLS collects wages on an hourly basis for most occupations, including technical writers. </li></ul><ul><li>Annual wages equal hourly mean wages times a &amp;quot;year-round, full-time&amp;quot; figure of 2,080 hours. </li></ul><ul><li>Hourly and annual wage estimates for technical writers </li></ul>Slide Copyright © 2008 Change Management Solutions 10th percentile 25th percentile Median 75th percentile 90th percentile Hourly wage $17.54 $22.44 $29.04 $36.85 $45.46 Annual wage $36,490 $46,680 $60,390 $76,650 $94,550
    • 9. How Are You Defined? <ul><li>The Standard Occupational Classification: </li></ul><ul><ul><li>“ Write technical materials, such as equipment manuals, appendices, or operating and maintenance instructions. May assist in layout work.” </li></ul></ul><ul><li>STC is currently working with STC committees and the Office of Management and Budget to develop a more inclusive and up-to-date definition. </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 10. Who is Included in Media and Communication? <ul><li>27-3011 Radio and Television Announcers </li></ul><ul><li>27-3012 Public Address System and Other Announcers </li></ul><ul><li>27-3021 Broadcast News Analysts </li></ul><ul><li>27-3022 Reporters and Correspondents </li></ul><ul><li>27-3031 Public Relations Specialists </li></ul><ul><li>27-3041 Editors </li></ul><ul><li>27-3042 Technical Writers </li></ul><ul><li>27-3043 Writers and Authors </li></ul><ul><li>27-3091 Interpreters and Translators </li></ul><ul><li>27-3099 Media and Communication Workers, All Other </li></ul>You are special! Don’t be lumped in with other writers. Slide Copyright © 2008 Change Management Solutions
    • 11. What Data are Available for Technical Writers? <ul><li>Technical writers were found to be employed in 187 metropolitan and non-metropolitan areas and 161 industries. </li></ul><ul><li>For each industry nationwide or each geographic area, you can find: </li></ul><ul><ul><li>The number of technical writers employed </li></ul></ul><ul><ul><li>Total employment in the industry or region </li></ul></ul><ul><ul><li>Annual and hourly wages </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 12. What is NOT Covered? <ul><li>Self-employed workers or contracted workers (1099) </li></ul><ul><li>Military-specific occupations </li></ul><ul><li>Does not include benefits or other overhead </li></ul><ul><li>Does not adjust for cost-of-living differences </li></ul><ul><li>Data for technical writers do not include technical communicators with broader job descriptions </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 13. Why No Titles? <ul><li>OES data are not classified by job title; instead, employees are categorized by duties performed. </li></ul><ul><li>Titles are misleading because they do not consistently reflect responsibilities. </li></ul><ul><li>Wage ranges work because people who perform similar functions usually receive similar pay regardless of title. </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 14. Comparing Wage Increases by Salary Range Hourly percentile wages for Technical Writers in professional, scientific, and technical services firms Different percentiles experienced different changes in wages. Comparing your salary to the closest percentile you gives you the most appropriate rate of increase to budget. Slide Copyright © 2008 Change Management Solutions 10th percentile 25th percentile Median hourly wage 75th percentile 90th percentile May 2007 $18.05 $22.87 $29.42 $36.99 $45.52 May 2006 $17.47 $21.89 $27.93 $35.21 $43.60 Pct Chg. 3.3% 4.5% 5.3% 5.1% 4.4%
    • 15. What Do You Mean By “Industry”? <ul><li>The data are available at 2-, 3-, 4-, and 5-digit levels of industry detail. </li></ul><ul><li>The classification is called the North American Industrial Classification System or NAICS because it is used by all three partners in NAFTA (U.S., Canada, and Mexico). </li></ul><ul><li>Visit www.bls.gov/bls/naics.htm . </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 16. Which Ones Should I Use? <ul><li>Well …that depends </li></ul><ul><ul><li>How transferable is your knowledge from one industry, sector, or subsector to another? </li></ul></ul><ul><ul><li>How specialized is your experience? </li></ul></ul><ul><ul><li>At what level is the industry concentrated in the region you are considering? </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 17. Industries with Largest Tech Writer Workforce These five industries account for over two-fifths of tech writer employment in US. Slide Copyright © 2008 Change Management Solutions Industry Total employment Mean hourly wage All technical writers in all industries 46,740 $30.18 <ul><ul><li>Computer systems design and related services </li></ul></ul>8,550 $31.77 <ul><ul><li>Architectural, engineering, and related services </li></ul></ul>3,300 $28.62 <ul><ul><li>Management, scientific, and technical consulting services </li></ul></ul>3,000 $30.77 <ul><ul><li>Newspaper, periodical, book, and directory publishers </li></ul></ul>2,670 $27.68 <ul><ul><li>Software publishers </li></ul></ul>2,570 $33.84
    • 18. Top Paying Industries for Tech Writers Slide Copyright © 2008 Change Management Solutions Industry Total employment Mean hourly wage Financial investment activities other than securities and commodity contracts Not released $37.31 Computer and peripheral equipment manufacturing 1,140 $36.27 Grantmaking and giving services Not released $35.11 Business schools and computer and management training 190 $34.70 Wireless telecommunications carriers (except satellite) 50 $34.55
    • 19. What Regions are Available? <ul><li>Data are published for: </li></ul><ul><ul><li>Nation </li></ul></ul><ul><ul><li>States </li></ul></ul><ul><ul><li>375 Metropolitan Statistical Areas (MSA) </li></ul></ul><ul><ul><ul><li>An MSA includes a city and its environs that make up a single market </li></ul></ul></ul><ul><ul><li>34 Metropolitan Divisions (MD) </li></ul></ul><ul><ul><ul><li>These are components of 11 of the published MSAs </li></ul></ul></ul><ul><ul><li>75 Nonmetropolitan areas </li></ul></ul><ul><li>Area definitions: www.bls.gov/oes/current/msa.def.htm </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 20. Which Ones Should I Use? <ul><li>Well …that depends </li></ul><ul><ul><li>Do you compete regionally or locally for jobs? </li></ul></ul><ul><ul><li>How far out does your current or prospective employer recruit professionals? </li></ul></ul><ul><ul><li>How far are you willing to commute? </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 21. Tech Writers vs. Other Professionals Media professionals in insurance agencies and brokerages Slide Copyright © 2008 Change Management Solutions SOC Code Occupation Total employment Mean hourly wage 27-0000 Arts, design, entertainment, sports, and media occupations 1,310 $25.01 27-1024 Graphic designers 250 $22.50 27-3031 Public relations specialists 870 $25.77 27-3042 Technical writers 50 $30.30 27-3043 Writers and authors 30 $25.70 27-3099 Media and communication workers, all other 50 $22.21
    • 22. Largest Concentration of Workforce Slide Copyright © 2008 Change Management Solutions Metropolitan Area Total employment Mean hourly wage Pct. of MSA employment Framingham, Mass. NECTA Division 440 $40.23 0.281% San Jose-Sunnyvale-Santa Clara, CA 1,350 $43.58 0.148% Colorado Springs, Colo. 370 $26.47 0.146% Bethesda-Gaithersburg-Frederick, Md. Metropolitan Division 820 $33.22 0.144% Lowell-Billerica-Chelmsford, Mass.-N.H. NECTA Division 160 $36.11 0.136%
    • 23. Best Paying Metropolitan Areas Slide Copyright © 2008 Change Management Solutions Metropolitan Area Total employment Mean hourly wage Pct. of MSA employment Lynn-Peabody-Salem, Mass. NECTA Division Not released $50.46 Not released San Jose-Sunnyvale-Santa Clara, CA 1,350 $43.58 0.148% Framingham, Mass. NECTA Division 440 $40.23 0.281% Nashua, N.H.-Mass. NECTA Division 80 $39.27 0.059% San Francisco-San Mateo-Redwood City, CA Metropolitan Division 710 $38.44 0.072%
    • 24. Updating Salary Data: The Employment Cost Index <ul><li>Wage surveys are always outdated upon publication </li></ul><ul><li>Using the Employment Cost Index (ECI) to update published wage data minimizes this time lag </li></ul><ul><li>The OES program also uses the ECI to adjust survey data prior to publication. </li></ul><ul><ul><li>Significant reductions in sampling errors are obtained by combining six semiannual panels of data, particularly for small geographic areas and occupations. Wages in the five previous panels need to be updated to the current panel&apos;s reference period. </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 25. Employment Cost Index <ul><li>Measures percent change in the cost of wages and salaries, benefits, and total compensation over time </li></ul><ul><li>Data available </li></ul><ul><ul><li>Over 200 wage and salary series by ownership, industry, occupation, bargaining status, region/division, and metropolitan area status </li></ul></ul><ul><ul><li>3-month percent change, 12-month percent change, and index numbers </li></ul></ul><ul><ul><li>Produced quarterly for March, June, September, and December </li></ul></ul><ul><ul><li>Available one month after the reference period </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 26. Updating an OES Wage Survey <ul><li>Select appropriate ECI series </li></ul><ul><li>Identify time periods </li></ul><ul><li>Retrieve data from BLS website www.bls.gov/ncs/ect/ </li></ul><ul><li>Calculate percent change </li></ul><ul><li>Apply percent change to published wage </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 27. Example <ul><li>In May 2007, the mean hourly wage for technical writers nationwide was $30.18 per hour. </li></ul><ul><li>We now want to update this wage figure to the most current time period possible. </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 28. Select Appropriate ECI Series <ul><li>Consider coverage, historical data, and statistical reliability </li></ul><ul><li>The most appropriate series for this example is wages and salaries for all civilian workers in professional and related occupations. </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 29. Identify Time Periods <ul><li>Beginning quarter </li></ul><ul><ul><li>Reference period for wage data </li></ul></ul><ul><li>Ending quarter </li></ul><ul><ul><li>Desired reference period, usually most recent month </li></ul></ul><ul><li>For this example, the time period is: 2nd quarter 2007 to 1st quarter 2008. </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 30. Calculate Percent Change <ul><li>ECI* for ending quarter 108.3 </li></ul><ul><li>Less ECI for beginning quarter 105.3 </li></ul><ul><ul><li>Equals index point change 3.0 </li></ul></ul><ul><li>Divided by beginning quarter ECI 3.0 / 105.3 </li></ul><ul><ul><li>Equals 2.8% </li></ul></ul><ul><li>Original wage $30.18 </li></ul><ul><li>Times percent change plus one 1.028 </li></ul><ul><li>Equals new wage $31.03 </li></ul>* ECI for wages and salaries for all civilian workers in professional and related occupations, not seasonally adjusted, 2 nd quarter 2007 and 1 st quarter 2008 Slide Copyright © 2008 Change Management Solutions
    • 31. Dear STC … I would like to be able to drill down into the data to learn how many &amp;quot;technical writers&amp;quot; there are in the Bay Area, specifically Silicon Valley cities such as San Jose. Slide Copyright © 2008 Change Management Solutions MSA Total employment Mean hourly wage Median hourly wage San Francisco-Oakland-Fremont, CA 1,170 $37.55 $37.92 <ul><ul><li>Oakland-Fremont-Hayward, CA </li></ul></ul>460 $36.19 $36.92 <ul><ul><li>San Francisco-San Mateo-Redwood City, CA </li></ul></ul>710 $38.44 $38.82 San Jose-Sunnyvale-Santa Clara, CA 1,350 $43.58 $43.11 Santa Cruz-Watsonville, CA 30 $27.49 $22.46
    • 32. Dear STC … <ul><li>I’m an independent contractor. Can I use wage data to estimate a competitive rate in my area? </li></ul><ul><li>Let’s say you work out of Atlanta and you just left a high-level position: </li></ul>Employees at your level make $35.11. But you need to include benefits and overhead. Benefits add another 40% to the cost of an employee and overhead another 10%. Because of marketing time, you will only be billable 75% of your time. So ($35.11 + (35.11*50%))/75% = $70.22. Slide Copyright © 2008 Change Management Solutions Total employment 10th percentile 25th percentile Median hourly wage 75th percentile 90th percentile 830 $20.16 $23.26 $28.37 $35.11 $41.71
    • 33. Dear STC … <ul><li>To whom should we show OES data to first: HR or my boss? </li></ul><ul><ul><li>The HR Dep’t should be familiar with it (they probably filed the questionnaire). Check to see if they have used it already for other positions. </li></ul></ul><ul><li>How can we as technical writers present the BLS data to our employer without making ourselves appear as though we’re demanding a salary increase? </li></ul><ul><ul><li>First, check and be sure you are (just in case you are an “above average worker”). The better approach may be to demonstrate that you are making sure your firm is competitive in the labor market. </li></ul></ul>Slide Copyright © 2008 Change Management Solutions
    • 34. Resources <ul><li>For more information about the BLS Occupational Employment Statistics (OES) Program: </li></ul><ul><ul><li>The OES Home Page: www.bls.gov/oes </li></ul></ul><ul><ul><li>For more background information: www.bls.gov/oes/current/oes_abo.htm </li></ul></ul><ul><ul><li>For Frequently Asked Questions on the OES data: www.bls.gov/oes/oes_ques.htm </li></ul></ul><ul><li>To ask a real person about specific data, try the OES help line: (202) 691-6569 </li></ul><ul><li>To learn more about the Standard Occupational Classifications (SOC): </li></ul><ul><ul><li>The Standard Occupational Classifications Home Page: www.bls.gov/soc/home.htm </li></ul></ul><ul><ul><li>The Online Standard Occupational Classification Users Guide: www.bls.gov/soc/socguide.htm </li></ul></ul><ul><li>To ask a real person about specific occupational classifications, call the SOC help line: (202) 691-6500 </li></ul>Slide Copyright © 2008 Change Management Solutions
    • 35. Bonus! <ul><li>If you find you have a question about the presentation later, send an e-mail to Richard O’Sullivan at: </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>For regional BLS data questions, please contact the Mid-Atlantic Information Office at: </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>215-597-3282 </li></ul></ul>Slide Copyright © 2008 Change Management Solutions

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