April 24, 2014

Spring 2014 Techie Salaries and Demand

The National Association of Colleges (NACE) and Employers released its Spring 2014 Salary Survey report for starting salaries of new college graduates. Approximately 400,000 employers were included in the survey. The data are collected from private as well as public employers across the US who have hired new college graduates in all disciplines. This is the first salary data for the Class of 2014 according to NACE.

NACE released its annual report Job Outlook 2014 in November of last year that surveyed employer members. The report forecasted robust 2014 hiring plans:
    After slow job growth and a disappointing, flat job market last spring, employers are contemplating hiring new graduates from the class of 2014 with increasing optimism. Employers plan to hire 7.8 percent more new graduates from the class of 2014 for their U.S. operations than they did from the class of 2013.

Here are the highlights on hiring methods, hiring projections, and salary data of US employers who were included in the NACE surveys:

Hiring expectations by region of US:

35.7% of employers in the Western plan to increase hiring
48.2% of employers in the Midwest plan to increase hiring
52.9% of employers in the Southeast plan to increase hiring
51.2% of employers in the Northeast plan to increase hiring

Top Engineering Degrees in demand according to NACE:

Of the companies hiring engineers, 69.6% expect to hire Mechanical Engineering majors; 62.2% expect to hire Electrical Engineering majors; 60.0% expect to hire Computer Engineering majors; 43.0% expect to hire Chemical Engineering majors; and 32.6% expect to hire Civil Engineering majors.

Of companies hiring science graduates, Construction Management made it on the list at 24.4% of companies reporting expected to hire these majors.

Preferred Hiring Methods:

In 2013 hiring was all about using technology as a recruiting tool. In 2014 it is about face time. Attending career fairs has become a preferred method of hiring for employers. Though still important, the use of technology as a hiring method has dropped from 57.3 percent in 2013 to 50.9 percent in 2014; and the use of social networks has dropped by about 10 % - from 59.6 percent to 48.5 percent.

Total change in hiring plans by industry (2014 over 2013):

Oil & Gas Extraction +67.8%
Utilities +66.4%
Construction +9.3%
Food & Beverage Mfg +25.4%
Chemical (Pharmaceutical) Mfg +3.0%
Computer & Electronics Mfg +4.6%
Motor Vehicle Mfg +28.9%
Misc. Mfg -12.2%
Retail Trade +11.6%
Transportation +2.9%
Finance, Ins. & Real Estate -2.8%
Management Consulting +31.3%
Misc. Professional Services +11.1%

Top Hiring Industries for new graduates in 2014:

Educational Services
Healthcare & Social Assistance
Professional Scientific & Professional Services
Federal, State & Local Government
Finance & Insurance

Top Paying Industries for new graduates:
Mining, Quarrying, and Oil & Gas Extraction
Management of Companies and Enterprises

Although engineers find employment in all of these industries, they are primarily employed in Professional, Scientific, & Technical Services.

Although Engineers were the highest paid of all majors in the Spring 2014 report, salaries flattened. Engineering salaries overall rose .3% to $62,719, with petroleum engineers at the top of the list for average salary for new college graduates at $95,300.

The starting salaries for engineering and computer science majors are at the top of the pay scale. The numbers are up significantly for all engineering and computer science graduates except construction management.

Nationwide the 2014 over 2013 average salary results for relevant technical BS degrees found at CSUS:

Average Salaries (Majors found at CSUS- ECS):
Average salaries for CS new grads: +3.9% to $67,300
Average salaries for CE new grads: +8.4% to $62,100
Average salaries for EEE new grads: -1.7% to $62,300
Average salaries for CpE new grads: -7.1% to $66,600
Average salaries for CM new grads: +6.0% to $59,800
Average salaries for ME new grads: -1.4% to $63,100

Salaries for CSUS graduates tend to run closer to the top of the chart below (and higher) due to the fact that Sacramento is in the high cost of living area of Northern California and students frequently graduate with major project and work experience.

Spring 2014 National Salary Data
Source: National Association of Colleges and Employers Salary

Bachelors Degrees

  75th PercentileAverage25th Percentile
CE $73,500 $62,100 $49,700
CM $69,500 $59,800 $46,800
CpE $78,000 $66,600 $52,200
CS $76,900 $67,300 $51,100
EEE $75,100 $62,300 $49,900
ME $75,100 $63,100 $51,300

Masters Degrees

  75th PercentileAverage25th Percentile
CE * * *
CpE * * *
CS $84,100 $73,200 $57,400
EEE $84,200 $72,600 $57,400
ME $80,300 $69,800 $54,600
Apr 2014
* No offers were reported for statistical analysis

Other excellent sources for salary information include http://www.glassdoor.com and http://www.salary.com.