There are currently too many people in the EMS job market and not enough jobs. Are you being paid EMS industry market rates? Which EMS jobs are in demand? EMS compensation differs depending on EMS provider size. Many EMS industry candidates will accept $10,000 per year less in compensation to be part of an EMS provider culture with similar values.
For many of you wanting to know what the jobs landscape is looking like in the electronics manufacturing services (EMS) industry coming out of some very lean times, I resourced some professional search firms in the EMS industry to measure the current pulse on hiring activity, where the demand is, and how compensation for EMS professionals has changed over the past three years.
We are seeing more demand in technical and middle management positions with demand being driven by two primary factors:
Previous cuts compounded by production increases – The very same positions that were cut throughout 2008 and 2009 are now opening back up as manufacturing increases. Many of the functional leaders who were spared being laid off, assumed more responsibility during the down production time and are now unable to keep up.
From an electronics engineering perspective, many EMS companies cut back in new product development, not willing to risk a failed product launch due to the down economy. With consumer confidence rising and production orders increasing, these same companies are aggressively pursuing new product development and the need for electrical engineering talent is enormous.
Churn – Many people who survived the past three years are tired, burnt out, and feel unappreciated. They are ready for a change. Denise Harding, human resources leader with EMS provider Kimball Electronics comments briefly on how Kimball minimizes churn and provides a stable work environment, even during tough times. “It all starts with the manager”, says Harding.
EMS industry salary ranges by responsibility
Although seemingly everywhere, the upper mid-west and the northeast regions seem to have slightly higher demand. Interestingly enough the domestic, small and mid- tier EMS providers are doing quite well in highly regulated areas such as medical devices, environmental, public safety, defense, and aerospace. High volume, consumer and some industrial remains off shore.
In looking at EMS salaries, there is a wide range of factors when evaluating professionals and years of industry experience, educational credentials, continued education and certifications, and the immeasurable hands-on experience doing the job are each key factors.
You can also throw in less measurable factors like personality, work ethic, and EMS cultural fit with specific providers. These all play an important part in one’s earnings.
Program management – Program managers can earn anywhere from $60,000 to $120,000. An experienced program managers with 10+ years of experience, a bachelor’s degree and specialized training and certification in their industry focus (industrial electronics, medical, defense and aerospace…) will earn closer to the $110,000 to $120,000 per year range.
Supply chain, quality – Supply chain and quality managers are typically earning $80,000 to $100,000 per year with these positions often having annual bonus plans ranging from 10% to 20% of salary.
As with the program management discipline, supply chain also requires certifications through APICS or ISM in order to draw higher salaries.
Quality managers also need to have specific quality systems experience, training, and certifications depending on which part of industry the hiring EMS provider is focusing on. ISO 9000:2001; 13485, 16949, AS9100… seem to be essential systems to understand if one wants to draw the higher earnings in quality careers. Methodologies experience including six sigma, SPC and DMAIC principles are equally important.
Technical (engineering) – These positions are requiring a bachelor’s degree and at least five years of experience, and can still earn roughly $80K per year, but not many include bonus programs at this level.
Watch this one closely as design engineers are light in the upcoming generation of the EMS industry workforce. There will likely be a big gap in this area in the next five to ten years.
This said, an electrical design engineer with seven to ten years experience and with fabulous credentials can earn nearly $100,000 per year, while those with more than ten years of experience can earn well beyond $100,000 if they also demonstrate team leadership and customer interface capabilities.
EMS compensation also differs greatly depending on the size of the organization.
A $20 million EMS provider cannot afford to be as competitive as a $20 billion EMS provider.
This is where EMS provider culture becomes important. I’ve met many EMS industry candidates that would gladly accept $5,000 to $10,000 per year less in compensation if they share the same principles, values, and ethics of the EMS provider they work for.
Too many EMS people
2008, 2009, and 2010 were exceptionally difficult for many professionals in the EMS industry. Fortunately, 2011 will be a different story.
There are currently too many people in the EMS job market and not enough jobs.
The good news is that this is changing for the better as you read this article.
ExecuNet, an online resource for career management exclusively for executives and senior-level managers with $100,000+ salaries, also provides recruitment market intelligence and is publisher of the Recruiter Confidence Index.
While ExecuNet’s Index (below) measures recruiter sentiment for executive jobs beyond the EMS industry, the current index does indicate the highest recruiter confidence since the second quarter of 2008.
Recruiter confidence extends upward trend
Looking specifically at EMS, in the fourth quarter of 2010 a number of technical and management recruiters I talked with saw a significant increase in their business.
This trend is continuing into the first quarter of 2011 and confidence remains high we will see steady (though not astronomical) job growth in the EMS industry this year.
As for EMS companies retaining the talent they finally do end up attracting in the EMS industry this year… So often, people quit the manager, not the EMS provider.
“If managers are developing their employees, listening to their needs and are accountable, teams will want to be successful for that manager,” adds Kimball’s Harding.
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