I recently became a PE (passed the Oct exam, first attempt), and as promised, got a promotion and raise. I feel like the raise was smaller than it should have been but I don't have much basis of comparison. Anyone have any feedback on compensation once you earned your PE license? I know salaries vary regionally so percent increase is probably more helpful. My increase was 4%. I'm just trying to figure out if I need to go to my boss and ask for more $$. Thanks for any input.
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Whet happened when you became a PE? Promotion? Raise?
- Thread starter VTBonnie
- Start date
CivEnvEng98
Civil/Environmental
The private sector can range wildly. I have seen from 7% all the way up to 20% once a colleage obtained his/her PE license. It really depends on several factors such as company policy, your new billing rate and your company's multiplier which affects your max annual salary vs what you bill out at. Maybe after the 4% you've maxed out what your company can pay you annually and also cover non-billable staff all other overhead costs at your billing rate. Most company multipliers (that I know of) range from 2.2 to 3.0. Maybe they'll tell you what theirs is and you can see if there is room for a higher salary.
In governement, you can expect a range from 3% to 7%. I was working for a Utility when I obtained my PE and got a 5% raise.
Good luck!
In governement, you can expect a range from 3% to 7%. I was working for a Utility when I obtained my PE and got a 5% raise.
Good luck!
woodengineer
Structural
It really depends on a number of factors. How many years of experience do you have and what are they paying now (prior to passing your PE). Stuctural Engineer magazine publishes annually a compensation report. You can find it on the web by seaching through their archives. Congratulations on passing the exam; you and your family should be proud of that accomplishment!
woodengineer
woodengineer
.
How much you get paid also depends on how well your company is doing financially and how much you are directly contributing to this. Some employers may want to pay you more (unbelievable I know), but are unable to reasonably do so if the company isn't pulling in enough money. Regardless, your engineering license will serve you well as your career progresses.
.
tsgrue: site engineering, stormwater
management, landscape design, ecosystem
rehabilitation, mathematical simulation
How much you get paid also depends on how well your company is doing financially and how much you are directly contributing to this. Some employers may want to pay you more (unbelievable I know), but are unable to reasonably do so if the company isn't pulling in enough money. Regardless, your engineering license will serve you well as your career progresses.
.
tsgrue: site engineering, stormwater
management, landscape design, ecosystem
rehabilitation, mathematical simulation
Whether or not you can ask for more money depends on whether or not your job has changed. If getting the PE meant you got a certificate to stick on the wall then probably not. If you're now stamping drawings and relieving other PEs and have taken on a lot more responsibility and are more marketable then you can.
Would have to disagree with the posts on salaries and responsibilities as they are disagree with fundamental concepts taught in organizational behavior as well as economics courses.
Your value to the company is what the boss perceives the value to be, not what you are actually doing, what your responsiblities are, or whatever qualifications you may have.
If you think you are worth more than what the company pays, then you must market yourself to a new position or a new salary.
It is like the ballplayer getting $80 million over 7 years. The ballplayer is worth it because he can get it, notwithstanding whatever attributes that he may have.
I would add that most companies base their salary structure on employee turnover. Employee turnover is the percentage of employees leaving the firm yearly. For that reason, all companies monitor and track employee turnover. If the employee turnover increases, the company will increase the base salary structure. If the turnover is low, the base structure will not increase. The cost of living is not really factored into annual raises, unless it is contractual or it is used as an excuse.
Your value to the company is what the boss perceives the value to be, not what you are actually doing, what your responsiblities are, or whatever qualifications you may have.
If you think you are worth more than what the company pays, then you must market yourself to a new position or a new salary.
It is like the ballplayer getting $80 million over 7 years. The ballplayer is worth it because he can get it, notwithstanding whatever attributes that he may have.
I would add that most companies base their salary structure on employee turnover. Employee turnover is the percentage of employees leaving the firm yearly. For that reason, all companies monitor and track employee turnover. If the employee turnover increases, the company will increase the base salary structure. If the turnover is low, the base structure will not increase. The cost of living is not really factored into annual raises, unless it is contractual or it is used as an excuse.
GoldDredger
Civil/Environmental
- Jan 16, 2008
- 172
That is hard to say, on the surface 4% seems a bit low to me, but it depends what you are doing for your company.
The two things I would look at right of the bat is your multiplier and your utilization. Find out how much you are billed to clients for, say $90/hr, then divide by your hourly rate. 2.8 to 3.2 is what most companies shoot for.
Also, in terms of your utilization, determine what that percentage is. If you can maintain about 80%, that is 80% of your hours go to actual billable hours, that is considered pretty good. (Billable hours exclude overhead like marketing, general admin, etc)
If your multiplier is above 3.2, and your utilization is above 80%, then in my opinion you are being taken advantage of.
Another question, have you ever brought in clients for your work. My guess is probably not if your just passing your PE (that's not intened as a cut, you're probably busier doing real work than marketing) If you can bring in work though, you certainly have more legs to stand on.
That being said, in the private sector being with a company and doing your job doesn't necessarily entitle you to raises. That's been my experience anyway, and it took me a good while to come to grips with that. I've found that if you want a raise you really have to fight for it. Keep a log of what you've done for the company, all you accomplishments, etc, and use that info when seeking more money.
Last thing, as I climb down of my soapbox. It is sometimes easier to negotiate a raise with another company, than with the one you work for. Don't be affraid to move or look around. Good luck.
The two things I would look at right of the bat is your multiplier and your utilization. Find out how much you are billed to clients for, say $90/hr, then divide by your hourly rate. 2.8 to 3.2 is what most companies shoot for.
Also, in terms of your utilization, determine what that percentage is. If you can maintain about 80%, that is 80% of your hours go to actual billable hours, that is considered pretty good. (Billable hours exclude overhead like marketing, general admin, etc)
If your multiplier is above 3.2, and your utilization is above 80%, then in my opinion you are being taken advantage of.
Another question, have you ever brought in clients for your work. My guess is probably not if your just passing your PE (that's not intened as a cut, you're probably busier doing real work than marketing) If you can bring in work though, you certainly have more legs to stand on.
That being said, in the private sector being with a company and doing your job doesn't necessarily entitle you to raises. That's been my experience anyway, and it took me a good while to come to grips with that. I've found that if you want a raise you really have to fight for it. Keep a log of what you've done for the company, all you accomplishments, etc, and use that info when seeking more money.
Last thing, as I climb down of my soapbox. It is sometimes easier to negotiate a raise with another company, than with the one you work for. Don't be affraid to move or look around. Good luck.
When you say, "as promised", was there ever a dollar figure associated with the increase upon becoming a PE? I agree with the posters who the say the increase is dependent on what the PE means to the company you work for. At my then-employer, it meant a little more credibility for my department (Look, the Construction Dept has a real PE!), but no real value, as I was not designing or stamping. I did get a new title, business cards and a small raise. And they let me have the day off to take the exam. It was in line with my expectations.
What were you hoping for?
What were you hoping for?
I had been low balled for years at the same company. When I finally passed I got the standard $2.00 raise which amounted to a 10% raise. I was very billable and they dicked around getting my stamp. So I then left soon after for another job which gave me another 15%. 25% is not bad for a years increase but you'll have to job hop to do it.
civilperson
Structural
Shop around, find a firm willing to pay the rate you desire, approach your current management with a request for a substancial raise, after being denied the request, leave and go to the other firm. This is "Standard Operating Precedure".
- Thread starter
- #13
Thanks everyone for all the feedback. To respond to some of the points made:
1)My current multiplier is 3.4 so based on what some of you have said, that is on the high side.
2)My utilization is one of the highest in an office of 70 people at around 92%(I keep pretty busy)
3)My job responsibilities haven't changed dramatically since gaining my license, however, I've been gradually taking on more responsibility in terms of project design and more direct interaction with clients.
4)I'm on a team of 7 people, three of which (including myself) are PEs. Two PEs left our team and company in the last two months, and the other two left, besides myself, are the team leader and a senior program manager, both with very high billing rates. So I'm the only PE on our team in a production role.
Well, anyway, thanks everyone for all the feedback. This is a great forum. I think I'm in a good position and I've got nothing to lose by having a little talk with the boss. Can't hurt to ask right?
1)My current multiplier is 3.4 so based on what some of you have said, that is on the high side.
2)My utilization is one of the highest in an office of 70 people at around 92%(I keep pretty busy)
3)My job responsibilities haven't changed dramatically since gaining my license, however, I've been gradually taking on more responsibility in terms of project design and more direct interaction with clients.
4)I'm on a team of 7 people, three of which (including myself) are PEs. Two PEs left our team and company in the last two months, and the other two left, besides myself, are the team leader and a senior program manager, both with very high billing rates. So I'm the only PE on our team in a production role.
Well, anyway, thanks everyone for all the feedback. This is a great forum. I think I'm in a good position and I've got nothing to lose by having a little talk with the boss. Can't hurt to ask right?
GoldDredger
Civil/Environmental
- Jan 16, 2008
- 172
Yes well, looks like they are getting a pretty good deal in you.
Couple of other things. First off, determine how your company is billing the work. If it is hourly, then the utilization and multiplier can be directly correlated to what you make.
Lots of contracts are fixed fee however. In other words, you may be utilized at 90% (because that is how you fill out your timecard right?), and multiplier maybe 3.4, but how much of that is written off by the manager each month? (Are you salary or hourly? And how many hours do you work each week on average?) Again if you are working 40+ hours billable, and they are charging you on an hourly basis, they are making a killing off you.
Also, don't forget to factor in bonuses if you are getting them, IE xmas, quarterly or spot bonuses? If they are, don't forget to factor that in as well. If they are giving you a gift certificate for a smoked ham and $50 spot to go to the movies, well, sweet deal for them right?
How about the 401k matching, or an ESOP? Are they run of the mill or do they give a good chunk for that? Matching contributions are free money, and should be factored. Don't forget to look at your vesting schedule (100% in 6 years standard, but who sticks around 6 years when they are underpaying to begin with)
Are you married with kids? I just started to learn how much health care runs to add dependents. When your in your 20's and single and healthy, who cares right?
How about a vehicle allowance or company car? If they are just reimbursing your mileage at $0.39 or $0.42 per mile. It seems like a lot, but it's actually a ripoff for you factoring in maintenance, insurance, etc.
Anyway, I would be a little more resolute on just 'asking' for a raise, then saying 'aw shucks' when they say no with a 2 hour answer on how much they like you. The less a manager can pay you the better it is for thier numbers. Younger engineers are taken advantage of like that, until you become old and crusty and return the favor to the newbs.
Best not to be affraid to move and mean it. Don't get caught up in this loyalty thing or personal commitment to your collegues. This is business, and you're a chump if you allow yourself to be paid less than the market will bear.
Last thing, if you negotiate with another company, don't play the game of playing the two companies off eachother..it will only generate ill will and they might just give in to buy time to replace you. Ask for your raise, if they say no, be polite, then seek another job.
Couple of other things. First off, determine how your company is billing the work. If it is hourly, then the utilization and multiplier can be directly correlated to what you make.
Lots of contracts are fixed fee however. In other words, you may be utilized at 90% (because that is how you fill out your timecard right?), and multiplier maybe 3.4, but how much of that is written off by the manager each month? (Are you salary or hourly? And how many hours do you work each week on average?) Again if you are working 40+ hours billable, and they are charging you on an hourly basis, they are making a killing off you.
Also, don't forget to factor in bonuses if you are getting them, IE xmas, quarterly or spot bonuses? If they are, don't forget to factor that in as well. If they are giving you a gift certificate for a smoked ham and $50 spot to go to the movies, well, sweet deal for them right?
How about the 401k matching, or an ESOP? Are they run of the mill or do they give a good chunk for that? Matching contributions are free money, and should be factored. Don't forget to look at your vesting schedule (100% in 6 years standard, but who sticks around 6 years when they are underpaying to begin with)
Are you married with kids? I just started to learn how much health care runs to add dependents. When your in your 20's and single and healthy, who cares right?
How about a vehicle allowance or company car? If they are just reimbursing your mileage at $0.39 or $0.42 per mile. It seems like a lot, but it's actually a ripoff for you factoring in maintenance, insurance, etc.
Anyway, I would be a little more resolute on just 'asking' for a raise, then saying 'aw shucks' when they say no with a 2 hour answer on how much they like you. The less a manager can pay you the better it is for thier numbers. Younger engineers are taken advantage of like that, until you become old and crusty and return the favor to the newbs.
Best not to be affraid to move and mean it. Don't get caught up in this loyalty thing or personal commitment to your collegues. This is business, and you're a chump if you allow yourself to be paid less than the market will bear.
Last thing, if you negotiate with another company, don't play the game of playing the two companies off eachother..it will only generate ill will and they might just give in to buy time to replace you. Ask for your raise, if they say no, be polite, then seek another job.
CivEnvEng98
Civil/Environmental
I have a couple of comments:
Your company's multiplier is a 3.4??? Ouch. I have been through two Zweig White "consulting" events at 2 separate civil firms and according to them a 3.4 is considered very, very high. That hurt's your max. possibly salary under your billing rate.
It's a little disconcerting to hear that you are tops in the company at 92% (kudos for you though!)...to me that helps explains the 3.4 multiplier. It also may explain the measly (to me at least) 4% raise.
Let us know how it works out. Good Luck!
Your company's multiplier is a 3.4??? Ouch. I have been through two Zweig White "consulting" events at 2 separate civil firms and according to them a 3.4 is considered very, very high. That hurt's your max. possibly salary under your billing rate.
It's a little disconcerting to hear that you are tops in the company at 92% (kudos for you though!)...to me that helps explains the 3.4 multiplier. It also may explain the measly (to me at least) 4% raise.
Let us know how it works out. Good Luck!
GoldDredger
Civil/Environmental
- Jan 16, 2008
- 172
I think the above post has it backwards. A 3.4 muliplier means they are charging him out at over 3 times what they are paying him in salary. The higher the multiplier, the more the company makes in terms of what they charge the employee out at.
I think that the interpretation of the above poster was that the company-wide multiplier was 3.4, which would indicate a company with a lot of overhead to cover. To remain competitive against companies with lower global multipliers, staff would be paid on the low end.
GoldDredger
Civil/Environmental
- Jan 16, 2008
- 172
Yes you might be right, perhaps it was just high overhead for the company.
Or, if a person was cynical, perhaps the high multiplier is so the owner and/or upper managment can get that really special closed door bonus, then buy their 16 y/o daughter that Lexus convertable she so deserves
Or, if a person was cynical, perhaps the high multiplier is so the owner and/or upper managment can get that really special closed door bonus, then buy their 16 y/o daughter that Lexus convertable she so deserves
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