D Managers Increased Last Year

The mean annual salary for most research and development managers--including directors and supervisors--rose in 1990 as compared with 1989, according to a new survey by Abbott, Langer & Associates, a management-consulting firm based in Crete, Ill. Although recessionary indicators forced many companies to pare their R&D spending, many managers continued to receive increases based on cost-of-living adjustments, larger workloads, and additional projects. Abbott, Langer received responses from 244 organizations, including manufacturers, government agencies, universities, and nonprofit research centers. The survey, conducted in 1990, was sponsored by the Society of Research Administrators, an association based in Chicago with more than 2,600 individual members. Not all survey respondents were SRA members. Overall, the survey found, the compensation of research and development professionals who supervise the work of one to nine employees is 133 percent higher than the pay for those with no supervisory responsibility. The study also found that, when it comes to salaries, supervisory responsibilities are no substitute for other credentials. The median compensation of nonsupervisory professionals with a Ph.D. degree was 104 percent higher than the pay for those with a bachelor's degree, while compensation of supervisors and managers is only 46 percent higher than that of professionals with a bachelor's degree. The mean annual salary of directors--those R&D professionals whose primary responsibilities are almost entirely managerial as opposed to conducting research--was $76,946 in 1990, an increase of 8.5 percent from the year before. Among directors in the life sciences, the increase was substantial--$86,213 versus $67,958. However, this reflected a smaller group of respondents in 1990 (72) than in 1989 (147), suggesting that the small sample size might have skewed the results. Among directors in the physical sciences, mean annual salary rose 4 percent, to $75,212. The number of respondents year-over-year was more closely matched in this category than for directors in the life sciences. According to several survey participants, most increases could be attributed to cost-of-living adjustments, because the recession was forcing many firms to keep salaries in check, or even reduce some pay. Others, however, said that the top jobs overall were paying more because directors and supervisors were assuming larger workloads as cutbacks and layoffs eliminated staffers who previously handled some of the tasks. "Research and development is one of the places that gets cut quickly, and those left doing more work are demanding more money. That's my gut feeling," says Fred Atkinson, director of product development and quality control for Dunkin' Donuts in Braintree, Mass. "A lot of companies have downsized that way," Atkinson says. While high-level project managers and directors may be given additional compensation, a company's overall payroll expense can be lowered if jobs are eliminated. The mean annual salary for all managers--those who continue to do research but spend the great majority of their time acting as supervisors--rose 1 percent, to $65,614. Among managers in the life sciences, there was a very slight decrease, to $58,580 from $58,829. Among managers in the physical sciences, the mean salary rose almost 19 percent, to $73,216. For section heads--those who do research, but also devote a significant amount of time to supervisory work, reporting to the managers--the mean annual salary advanced 5.5 percent, to $65,870. In the life sciences, the gain was 11 percent, to $67,062. In the physical sciences, there was a 3.5 percent rise, to $60,497. One position for which the salary declined was the unit supervisor, the person who mixes research work with oversight of as many as 10 research-and-development professionals. For unit supervisors in all disciplines, the mean annual salary fell to $49,638 from $55,556. Among life-sciences unit supervisors, the mean salary rose to $51,448 from $42,331. The salaries of unit supervisors in the physical sciences, however, dropped to $49,929 from $56,320. Clearly, there are discrepancies. Some compensation experts suggest that, the increases notwithstanding, salary changes are being driven by the poor economy. This suggests, they say, that salaries for many professionals may not advance much until the economy improves. "I think salaries are going to remain soft, with any increases tied to inflation," says Eric Cooper, staff compensation consultant for East Chicago, Ind.-based Inland Steel Co., where the research and development staff includes about 60 materials scientists and metallurgical engineers. "I think there'll be fewer than normal job openings and slower salary growth over the next one to three years," he adds. "We've seen turnover as being unusually low, for both managerial and staff scientists." Edward R. Silverman is a freelance writer based in Hoboken, N.J.

D Managers Increased Last Year

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