For On The Floor: Strong Salaries and Benefits Cannot Stem Skills Shortage

In the three years since we last asked our Efficient Plant Reader Panelists about their salaries and benefits, the economy and the manufacturing sector have both improved. For the most part, our Panelists have been carried upward by this rising tide: They’ve received raises and bonuses along the way, some more regularly than others, and are enjoying good benefits. Virtually all those reporting say they feel fairly compensated for what they do.

Panelists have not been nearly as fortunate regarding the dogged problem of finding and hiring skilled workers. Despite the sector’s above-average wages and benefits, most of the group continues to express frustration in this area. Here’s what they have to say about this ongoing problem, and the salaries, benefits and other compensation their employers currently provide.

How has your pay level changed since you started with your current employer?

“Opportunities for raises come annually per company policy, and for most at my company, they have been quite generous. We also get an automatic cost of living increase each year.”

… Maintenance Engineer, West

“My pay has been raised regularly through the years. I have also taken on different roles within the company with more responsibility.”

… Production Support Manager, Midwest

“My pay has increased consistently.”

… Maintenance Mechanic, South

“My pay increases have been inconsistent. In the six years I have been with my current employer, there have been a couple of annual cost-of-living raises and a couple merit raises, but none for some years. We have, however, received a number of monthly profit-sharing bonuses over the past two years.”

… Planned Maintenance Supervisor, Midwest

“It hasn’t increased as much as the cost of living, but has risen about 2% per year over the last seven years.”

… Process Engineer, South

“I just started with this employer, so there have been no increases. But with my previous employer, there had been only one pay increase in four years.”

… Senior Maintenance Supervisor, Midwest

“We receive regular increases based upon job-point classification, performance and cost of living.”

… Mechanical Maintenance Supervisor, Midwest

What opportunities, if any, do you have with your current employer to make money above your original pay?

“We have some overtime opportunities and an end-of-year performance-based bonus. I am at the top pay scale for my job, but my bosses make allowances for that and the dedication I show when it comes to the amount I get for the bonus.”

… Maintenance Coordinator, Mid-Atlantic

“The company offers a bonus, but the criteria to meet the goals are almost non-existent. The last two years we did receive a performance bonus, and we have been able to work 12 hours a day, seven days a week for a long time.”

… Maintenance Leader, Midwest

“We have a bonus program for managers based on how profitable the company was during the past year.”

… Production Support Manager, Midwest

“We get overtime opportunities, which are not reliable, but once a year we get an incentive award that is a percentage of your pay. This is determined by safety, customer-satisfaction and reliability metrics. We also get health-initiative awards that are usually paid with a gift card.”

… Maintenance Mechanic, South

“We can make monthly bonuses as efficiency and productivity increases lead to higher profits for the company.”

… Planned Maintenance Supervisor, Midwest

“We receive a cost-of-living increase each year, and after a set number years of service we receive a ‘longevity’ bonus.”

… Maintenance Engineer, West

Do you work more or fewer hours than when you started with your current employer?

“I work about the same number of hours. Occasionally extra hours are needed, but not often.”

… Production Support Manager, Midwest

“We’ve worked a lot more the past couple of years due to facility expansion, and I don’t know if this is temporary or the new norm.”

… Maintenance Mechanic, South

“On average, I work slightly more hours per week than when I first started due to weekend maintenance activities.”

… Planned Maintenance Supervisor, Midwest

“I work the same amount of hours per day, which is 10+. As a manager I am on call almost 24/5.”

… Process Engineer, South

“My previous employer expected those in my role to work 70-80 hours per week. With my current employer, I have flexible work hours and am expected to work 45-50 hours per week.”

… Senior Maintenance Supervisor, Midwest

Does your company offer a competitive starting salary/wage to new hires? Does it have trouble filling skilled-labor positions?

“It has taken awhile, but my company does now pay a competitive wage for the skilled trades. But we have a very hard time finding people to fill these positions. I believe we have gone down every avenue of marketing to attract quality talent, with little luck.”

… Production Support Manager, Midwest

“We do offer a competitive wage for our area, but it still seems more difficult than it should be to get skilled help.”

… Maintenance Mechanic, South

“We do pay a competitive wage, though our company changed the retirement plan, providing new employees only a 401k. We have no trouble filling positions as we are still the best game in town.”

… Maintenance Coordinator, Mid-Atlantic

“Our wage is a two-tier system. A person such as myself generally makes only five dollars more an hour then a new hire. And we do have a hard time finding skilled trades. We have also lost some of our people [to local large industry].”

… Maintenance Leader, Midwest

“This company does offer competitive pay, and yes, we have difficulty filling positions at all levels.”

… Planned Maintenance Supervisor, Midwest

“We offer a competitive starting salary, but our area has a lot of manufacturing companies, and we have trouble filling these positions.”

… Process Engineer, South

“We offer the highest wages in our area for a given position, so the trouble we have filling positions is due to the lack of qualified applicants, not low wages.”

… Maintenance Engineer, West

How do you rate your company’s benefits package? Does it offer additional money-saving amenities?

“I rate our benefits highly, especially for our area. We also receive a discount on cell-phone rates, new-car purchases and computers. We have an on-site cafeteria, an employee savings plan and our company contributes to the 401k.”

… Maintenance Coordinator, Mid-Atlantic

“We have a fair benefits program with insurance, 401k and other perks. We also get a discount at our local Y and on automobile purchases.”

… Maintenance Leader, Midwest

“We do OK with our benefits package, though our health-care costs have become a financial burden to most employees. We have day-care at multiple facilities, on-site gyms and agreements with some of our customers for reduced prices on the good they sell.”

… Production Support Manager, Midwest

“Our health-insurance is good, but I think it is more expensive for the employee than other places in our area. We get 100% college tuition reimbursement provided you maintain at least a C average, and now they pay for all your books. We get reimbursed 50% for gym memberships, which includes spouses.”

… Maintenance Mechanic, South

“I give the company’s benefits package a high rating. It matches 3% of 401k contributions, and the monthly bonus based on end-of-month profit is great. Some local businesses have offered us employee discounts for several years.

… Planned Maintenance Supervisor, Midwest

“We get a matching 401k, 50 cents on the dollar, very good health benefits and life insurance. I feel our benefits are top of the line and better than most in this area. We also get savings on gym memberships, wellness visits with one annual visit free, Employee Assistance Programs for those in need, and discounts at many local attractions and businesses.”

… Process Engineer, South

“I give our benefits package an ‘A.’ Our employer offers an on-site cafeteria, and an on-site wellness center with gym and nursing facility that can provide prescriptions and lab tests. We also receive multiple discounts on products and services, most of which have been offered in one form or another for more than five years.”

… Senior Maintenance Supervisor, Midwest

“Our benefit package is about is good as it gets. We receive very inexpensive medical/dental/vision insurance, have a deferred-compensation program, employer-paid pension, on-site child care and other benefits. We also receive discounts to various vacation destinations.”

… Maintenance Engineer, West

“The company’s benefit program is excellent. It equals 51.5% of our annual wage.”

… Mechanical Maintenance Supervisor, Midwest

About the EP Reader Panel

The Efficient Plant Reader Panel includes approximately 100 working industrial maintenance practitioners and consultants who have volunteered to answer bi-monthly questions prepared by our editorial staff. Panelist identities are not revealed, and their responses are not necessarily projectable. The Panel welcomes new members: Have your comments and observations included in this column by joining the EP Reader Panel. To be considered, email your name and contact information to rcarter@efficientplantmag.com with “Reader Panel” in the subject line. All Panelists are automatically included in an annual cash-prize drawing after one year of active participation.