Compensation in Independent Laboratory, Testing, and Inspection Firms - 2005

PUBLISHED: March 2005

Summary of the 174-page Compensation in Independent Laboratory, Testing, and Inspection Firms - 2005 survey report of 26 benchmark jobs from Abbott, Langer & Associates, Inc.  The following describes the highest and lowest paid job characteristics, the national median total cash compensation for 20 benchmark jobs, and the factors affecting salary (Primary Industry Served, Primary Discipline, Annual Fees, Number of Employees, Type of Work Performed/Supervised/Directed, Length of Experience, Level of Education, and Supervisory Responsibility):

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The composite highest-income practitioner in this field (salary plus cash bonus and/or cash profit sharing) is the President/General Manager "A" of such a firm (defined as a chief executive officer who is the owner of or a full partner or major stockholder in the firm), headquartered in New York City, Detroit, Atlanta, Newark/Jersey City, or Boston, or outside the metropolitan areas studied in Florida, Texas, Nevada, Washington, Alabama, or Iowa. The firm provides services in the microbiology/analytical chemistry, construction/construction materials, or environmental field. The firm typically serves the construction, food/beverage industry, or chemical industry and works in the environmental, geotechnical, materials engineering, microbiology, or analytical chemistry field. This individual typically has a bachelor's degree, and has 30 years of experience or more. While the median President/General Manager "A" has a total annual income of $153,500, the highest-income individuals reported in this group make well over $300,000.

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Far to the other end of the income spectrum, Laboratory Assistants have a median income of $20,800. Earning as little as $15,600, the lowest-paid employees in this group usually are located in Tennessee, New York, Michigan, Pennsylvania, California, New Mexico, or Washington; work for firms providing services in the microbiology/analytical chemistry, environmental, construction/construction materials, or materials science fields; and have no college education and little or no experience.

These composites represent the briefest possible "boil-down" of the voluminous data provided regarding current salaries and cash bonuses and/or profit sharing, and numerous demographic variables provided by 32 independent laboratory, testing, and inspection firms regarding 3,426 employees in 26 benchmark jobs. The end results of the survey, published by Abbott, Langer & Associates, Inc., and sponsored by ACIL, appear in Compensation in Independent Laboratory, Testing, and Inspection Firms, 2005, a 174-page statistical analysis of compensation practices in this field. Copies of the report are available for $725.00 through our On-Line Order Form or from Abbott, Langer & Associates, Inc., Dept. NET, 548 First St., Crete, IL 60417 (telephone 708/672-4200; fax 708/672-4674).

It would be an exercise in futility to attempt more than a superficial overview of the survey results in this summary. However, some overall data regarding compensation can be presented herein.

Overall Compensation

In addition to the incomes of the benchmark jobs already discussed, the median total cash compensation nationally for some of the other 24 benchmark jobs included in the survey report is:

Naturally, these nation-wide pay rates vary by region, state & metropolitan area, type of services provided and annual fees received by the firm, size of firm, type of work performed/supervised/managed, level of education, length of experience, and supervisory/managerial responsibility involved - all demographic variables for which data are provided in the complete report.

Primary Industry Served

Construction and manufacturing in general provide the highest median annual incomes for Presidents/General Managers "A" ($195,000 and $135,800 respectively). For Laboratory Assistants, the highest median annual incomes are found in firms serving the manufacturing industry, topping out at a median of $31,500 in food & beverage processing.

Primary Discipline

For Presidents/General Managers "A" and for Laboratory Assistants, the highest median annual incomes are in firms working in the engineering disciplines ($212,500 and $24,400 respectively).

Annual Fees

This is a good predictor of the median annual income of Presidents/General Managers "A". In a company with annual fees of $25,000,000 or more, the President/General Manager "A" receives a median income of $225,000, 181% more than the President/General Manager "A" of a firm with annual fees of under $2,500,000 ($80,000).

Number of Employees

This is a good predictor of annual income for Presidents/General Managers "A". For example, in a company with 250 or more employees, the President/General Manager "A" makes $225,000, 181% more than in a firm with under 25 employees ($80,000), mirroring income by annual fees.

Type of Work Performed/Supervised/Directed

Presidents/General Managers "A" receive the highest median annual incomes when performing/supervising/directing work in the geotechnical engineering field ($238,670), 139% higher than in analytical chemistry ($100,000).

For Laboratory Assistants, working in the materials engineering ($28,000) and microbiology fields ($23,088) provides the highest median annual incomes, whereas working in the analytical chemistry field provides the lowest median income ($18,565).

Length of Experience

This is not as good a predictor of income as many other variables. Presidents/General Managers "A" receive the highest median income with 25 years or more of experience ($184,500), followed by 15 through 19 years ($160,000) and 20 through 24 years ($135,858).

Laboratory Assistants receive the highest median annual income with three or four years of experience ($24,710), followed by five through nine years ($22,380), one or two years ($21,112), and under one year ($19,360).

Level of Education

This is not a good predictor of income for Presidents/General Managers "A". A President/General Manager "A" with an MA/MS degree ($157,500) receives slightly more than a President/General Manager "A" with a doctorate ($157,000). This may be an anomaly caused by size of firm, field of work, or length of experience.

Supervisory Responsibility

A President/General Manager "A" who supervises 50 or more engineers/scientists and technicians receives a median annual income of $189,850, while a President/General Manager "A" who supervises 10 to 49 engineers/scientists and technicians receives $111,000.

the 174-page survey report, Compensation in Independent Laboratory, Testing, and Inspection Firms - 2005, described on this page is available to organizations for $725, with charges for shipping & handling (and IL sales tax, if applicable). The report is IN STOCK and can be shipped out within two business days. The mean, median, 1st and 3rd quartile, and 1st and 9th decile data for base salary, bonus/commission/profit sharing, and total annual cash compensation are reported for many demographic variables, including education, experience, geographic location, type and size of employer, etc. To purchase the report, use our On-Line Order Form, call 708/672-4200, email, fax, or write per the information at the bottom of this page.

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