INDUSTRY PROFESSIONALS GAIN GROUND AGAINST CHANGING MARKET

Eighth Annual MD&DI Salary Survey

Steven Halasey

Introduction
Salary, Raises, and Compensation
The Employee |
The Company
Conclusion |
Survey Methodology
Order the Full Report |
Salary Estimator

Device industry professionals who have been wondering what will be the
effects of such industry megatrends as health-care reform, buyer and supplier
consolidation, downsizing, and globalized competition need do so no more. To
find the answer, it turns out, they probably do not need to look much farther
than their pocketbooks.

According to the results of MD&DI's annual salary survey for 1996,
during the past year device industry professionals received salary increases
averaging 6.2%, and more than half of such employees also received bonuses
averaging $7890. Meanwhile, total compensation in the device industry grew at a
rate of 2.5% to an average of $83,400, besting last year's figure by $2000. But
according to the same survey, overall salary growth during the year was nearly
flat, improving by only 0.5%.

The story of what happened to device industry compensation over the past year
is told not only in the data compiled for MD&DI's survey, but also
in the answers of respondents to the survey's open-ended questions. Asked what
industry trends would affect their personal compensation during the coming year,
more than two dozen respondents replied that their chief concern was "consolidation"
of either device companies or health-care provider organizations--or both.
Another two dozen respondents expressed worry about the effects of "downsizing,"
and a dozen more answered simply "health-care reform."

While the direct implications of these megatrends for employee compensation
during the past year cannot be determined from MD&DI's survey, it is
clear that respondents to this year's survey understand well their potential
effects. "Consolidation in the industry," wrote one respondent, "will
reduce percent of raises and bonuses." And another commented that
consolidation will reduce the number of available positions, creating a "higher
supply of qualified employees for smaller number of positions, reducing salary
growth."

The following article describes some of the general results of MD&DI's
salary survey for 1996. But the survey report actually contains much more,
including tabular breakdowns for each of the seven job categories surveyed.
Copies of the full report are
available from Canon Communications.

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