Salaries Mirror Stagnant Economy

On average during calendar 2002, salaries within the domestic printing industry increased by 2.9%, the same gain seen in last year's annual Graphic Arts Monthly salary survey, which tracked industry pay trends in 2001.

In this year's survey, which polled 373 printing executives spanning the country about their salary trends in 2002, small general commercial printers reported the highest overall company pay increases in 2002, at an average of 3.5%.

Almost half (46%) of the respondents reported that their salaries increased in 2002, down from the 54% that reported an increase in 2001. The mean salary increase was 3.9% for the year, with respondents working at specialty printers reporting the highest personal salary increases, at an average of 5.6%. Forty-four percent of respondents reported no change in salary in 2002.

A little over half of this year's respondents (55%) reported that their last salary increase occurred as part of a normal annual review. Also, 29% said their pay level grew due to a merit increase, while 16% reported that a promotion or change in position led to their last salary increase.

Eleven percent of respondents received a cut in their own pay during the year. More than half, however, said they expect their salary to increase in 2003, by an average of 5%.

Among respondents' companies, 30% laid off employees in the last 12 months, while 20% have hired new staff. Both of these percentages are down markedly from last year's survey results. As was the case in last year's survey, hourly workers experienced more layoffs (88%) and benefited from more hiring (71%) than other types of employees.

Other departments and positions affected by layoffs and cutbacks were support staff/office administration (55%), sales/marketing (29%), management staff/finance (28%), production management (28%), and department foremen (16%).

Sixty-six respondents said they were responsible for hiring new staff. When they were looking to take on new employees, 65% of respondents responsible for hiring found placing ads in newspapers and trade magazines to be the most effective strategy.

More than half of respondents reported that their job responsibilities had changed in the past year. As was the case in last year's study, downsizing/cost-cutting and new technology were cited as the most common reasons for the change.

Thirty-four percent of respondents said they are very satisfied with their job, while more than half (55%) reported being satisfied with their job.

Nearly all respondents—97%—indicated that their company offers health insurance, up one percentage point from last year's results.

But nearly two thirds of respondents' companies (65%) offer a 401(k) plan, compared to 77% last year. Life insurance, at 64%, also fell from last year's figure of 72%. Just over half of the respondents (51%) reported that their companies offer disability insurance, down from 67% last year.

Other benefits offered include profit sharing (35%, up from 32%), maternity/paternity leave (32%, down from 40%), retirement/pension fund (27%, up from 26%), tuition reimbursement (25%, down from 39%), and merit bonuses (25%, down from 27%).

In 2002, non-printing revenue sources being pursued by respondents' companies included mailing services (53%), art and design services (48%), vended-out specialty work such as thermography and printing on plastic (32%), digital image storage and management (29%), Web site development/hosting (22%), digital photography (16%), and facilities management services (14%).

Computer-to-plate systems were by far the most popular of the technologies in which companies are actively investing money (70%). Telecommunications systems, like ISDN and T1 lines, came in second at 36%, followed by shop floor data collection (32%), four-color digital presses (31%), e-commerce/Internet-based printing services (31%), and sheetfed coating systems (21%).

The complete report of this year's salary survey, which was conducted on line among 8,000 subscribers of Graphic Arts Monthly, contains detailed matrices could not be included in this article. The full report is available from the Reed Research Group for $99. Contact Marissa Glowac at (617) 558-4511 or mglowac@reedbusiness.com to obtain a copy.