Integrator Compensation Report 2016

IT
IPVM Team
•Published May 23, 2016 11:53 AM
PUBLIC - This article does not require an IPVM subscription. Feel free to share.

IPVM has determined how much salespeople, senior technicians, and entry level technicians are earning in our 2016 Integrator salary survey.

We have unmatched data from integrators on:

  • Salaries and commissions provided
  • Company car / truck benefits & reimbursements
  • Tuition assistance
  • Vacation and sick day allowances
  • Health care coverage offered
  • Retirement plans included

If you work for an integrator, work with them or are thinking of working for one, this report will give you a better understanding on the competitiveness of the compensation packages offered.

Summary

The following chart overviews salary distributions across entry and senior level techs a well as sales persons:

Key findings included:

  • Overall salaries are similar to our 2014 report, indicating no fundamental shift
  • Entry Level Techs reported an average of $35,000 annually, with the majority in the $20-$40K range
  • Senior Techs reported average of $65,000 annually, with most responses in the $50-$80K range
  • Sales People reported total compensation average of $100,000 annually, with most responses in the $90K-$130K range
  • Company vehicles were the most common job perk
  • Tuition reimbursement in some form is offered at ~30% of integrators
  • 85% of integrators did not cite retirement plans in benefits provided
  • Expect roughly 3 weeks of paid time off
  • Healthcare in some form is common, but only fully covered ~50% of the time

Disclaimer: How to Use These Results

If you or your employees are below these average numbers, make sure to consider relevant factors, most notably geographic area and experience levels, especially for 'senior tech' and salespeople.

Specifically, geographic differences in compensation were significant, such that integrator employees in large urban areas typically made much more than those in more rural locations. Our responses were primarily within North America, and even within North America, compensation levels varied across specific areas.

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Salary - Techs

Entry Level Techs

Entry level techs can expect to make around $35,000 annually, based on responses to our question "In your experience, what is the typical annual compensation range for entry level techs?"

Overall, reported ranges were $20,000-$70,000, with the majority in the $30,000-$40,000 range.

Representative responses from integrators included:

  • "$12~14 an hour to start and we go up from there."
  • "Only using our company. Entry level techs start at 21-25k."
  • "$16 / $18 per hour depending on level of experience. With modest overtime that makes annual compensation between $32K and $36K"
  • "Positions are non-exempt, so they are paid hourly. $15-$18 per hour plus benefits"
  • "Geography plays a big part. The cost of living in the area. We have hired people as low as $9/hr. More typical in the $14/hr range."
  • "$12-$20 an hour, quarterly bonuses based on profitability - usually about 2-3k a year, 401k match of up to 5% of their income is how we compensate."
  • "35k gross. Possibly more if they have certifications"
  • "Detroit IBEW, approximately $16.50"
  • "In Bay Area, it breaks into two categories. Union and non Union. Union is around 65 base, non around 40ish."

Senior Techs

Senior techs average $60-70K, and mostly fall in the range of $50K-$80K, pulled from answers to "In your experience, what is the typical annual compensation range for senior technicians / engineers?"

  • "Our senior techs are well versed in IP networks and most will have network certifications."
  • "I've seen numbers from $35k-$75k depending on market, tenure, skill set, and ability to work independently...with some additional consideration possible for whether they "bring some customers with them"."
  • "Here 40-43k is hard to get. We have one that makes 60k. 60-75k is where I feel it should be for 15-20+ year skilled techs."
  • "$20-$28/hr, plus take home vehicle, quarterly bonuses based on profitability - usually $3-4k a year, 401k match of up to 5% of their income is how we compensate senior techs. We also pay additional multipliers for certain certifications and techs make an additional $2/hr for completing 12 hours of training in a quarter. obviously company paid phone."
  • "Senior techs in our area are in the low $30's per hour...up to $34/$35"
  • "If you are the one percent tech, you get to demand 110+, but the majority of good/experienced techs can hop around and get 80-90k."

Salary - Sales

Total annual compensation for sales people was in the low 6-figure range, and heavily based on commissions. Overall, total annual compensation for integrator sales people was similar to manufacturer sales people.

We asked "In your experience, what is the typical annual compensation range for sales people? Base vs Commission?" to gather this data.

Base salaries that were extremely low, or non-existent were common:

  • "23k base 75k commissions"
  • "25K base + 7% top line commission to start then 7% top line commission only"
  • "Our only sales person is commission only and is typically $40k-100k over the past 12 years."
  • "$600 per week plus commission, plus benefits"
  • "15K base, commissions = approx. 5% of gross sales"
  • "7% of Gross Sale without a base"

Some sales planes are based on margin requirements instead of revenue for commissions:

  • "Base $45 to 70K with %5 to 8% of Gross Margin as Compensation"
  • "Less experienced sales $40 K base salary and commission is based on equipment and labour margins on a sliding scale. Full margins generally 5% commission on total sale price on most jobs. Larger jobs would be negotiated."
  • "$50k-$70K base with margin based commission. $80-100k possible."
  • "$75,000 base salary with commission based on gross margin"
  • "$50,000 base, 5% of sales that have a profit margin over 15%"
  • "$70-90K/Year base plus commission of 1-7% depending on Gross Margin. Overall total compensation is about 8% of sales."

The most common sales plans had a base salary in the $50-$70K range, with commission plans that added 30% to >100% of additional pay:

  • "$50-65k base pay, with total commissions (including the base) of 10-11% of their gross sales (This includes RMR.) Expected minimum sales of 60-80k/month = gross comms of 6-8k in that month. Quarterly bonus based on profitability which is usually between 5-10k a year."
  • "Base in the mid $40K range with commission bringing total wages to the $100,00.00 plus"
  • "Base $35,000. With commissions $115,000-$140,000"
  • "40k base with mileage (for experienced sales) 30k for entry level sales plus 5% commission"
  • "70 salary w opportunity to make 50-70 more in commission."
  • "Entry Level - $60-80k on target of $750K revenue (75% base) Mid Level - $80-120k on target of $1-1.5m revenue (75% base) High Level - $120-170k on target of $2-4m revenue (%50-75 base)"
  • "60 base 100 total for great grinders 40 base 65-75 for barely keep the sales manager off their ass sales people."
  • "Base salary of $70K - $90K with OTE of $120K with commission."
  • "Base 70K, commission 120-150K"
  • "$70K plus Commissions to 6 figures"
  • "75k Base, 25k Commission"
  • "$70,000 bases plus 1- 2% of sales"

Additional Job Perks

Many companies use more than just salary to attract employees, we asked "In your experience, what additional job perks are provided (e.g., company car, tuition reimbursement)?" to get more insight on non-salary items in compensation packages.

Company Vehicle Allowances

One of the most frequently cited perks was company vehicles or vehicle allowances.

For techs, a company provided vehicle was common, while sales people were most often given a car allowance:

  • "Techs: Vehicle, phone, laptop, uniforms, training Sales: Car allowance, phone, laptop"
  • "Techs get vehicles'
  • "Techs get a vehicle and a small annual tool/boot allowance."
  • "Our techs drive company vehicles"
  • "Techs with company van Sales with car allowance"
  • "All salespersons now have a large car allowance ($1000/month)."
  • "Company Van for techs, company car for senior sales."
  • "Sales and PM receives car and gas card. Tech same but only for business use."
  • "Techs - company van, gas card, cell phone, professional certification and factory training reimbursement, bonuses for outstanding performance salesmen - vehicle allowance, gas card, cell phone, computer, credit card, professional certification and factory training reimbursement, bonuses for outstanding performance"
  • 'Car allowance of $500/600/mo or mileage at $0.42/mile."
  • "Most companies in our area provide car allowances of $400 - $500 per month with a gas card."

Education/Tuition Reimbursement

Approximately 30% of respondents indicated some form of education assistance or reimbursement program:

  • "Company car and education / membership reimbursement"
  • "We pay all required continued education costs, and have a tuition reimbursement program."
  • "Tuition for company approved education"
  • "Tuition reimbursement (upon completion)"
  • "Tuition reimbursement w/continued years of service commitment"
  • "TUITION FOR COLLEGE/UNIVERSITY SPECIAL TRAINING (GENETEC, SOFTWARE HOUSE, ETC)"
  • "All business related tuition (after successful completion of courses)"
  • "Company covers training and travel expenses, but local sales travel is based on personal vehicle with mileage compensation."
  • "Various companies provide tuition reimbursement or training/certification cost reimbursement, with an agreement that the employee has to stay for X amount of years after the training/certification in order to not owe the employer the training cost."

Retirement Savings Plans

From the responses we received, integration companies do not appear to offer retirement savings plans frequently. ~15% of the responses noted some kind of 401k or IRA plans, however those that did often included some form of a match:

  • "401K retirement plan plus small percentage of employer contribution"
  • "A 100% of 5% match on their 401k."
  • "We have a healthy 401k plan with a 3% match."
  • "401k 1/2% match on every percent up to 6% of employee contribution, 3% 401k safe harbor."
  • "5% 401k"
  • "401k - match up to 3% of pay (includes commission)"

Healthcare and Vacation

Healthcare and vacation can be critical details in a compensation package, we asked: "In your experience, what is the typical amount of vacation, sick days and health care coverage provided?".

Vacation / PTO

~3 weeks of total paid time off was the most common response, with this usually split between 2 weeks worth of vacation and 1 week of sick/personal days. In some cases personnel had to complete some amount of time at the company before reaching this level.

  • "2 weeks Vacation 1 Week Sick"
  • "2 weeks vacation, 3 sick, 2 personal"
  • "4 personal days, 2 weeks vacation"
  • "1-5 years 1 week vacation, 6-19 yrs 2 weeks, 11 plus 3 weeks."
  • "Less than 5 years - 2 weeks vacation - 5 sick days 5 to 10 years - 3 weeks vacation - 5 sick days 10 + years - 4 weeks - 5 sick days."
  • "We give our team 5 sick days a year and 1 week paid vacation for the first 3 years then their days increase to 2 weeks paid vacation per year."
  • "2 weeks vacation 6 sick days"

Healthcare

Responses that mentioned healthcare showed a 50/50 split between fully-covered healthcare plans, and those where an allowance of ~50-80% of total coverage cost was provided. A small number of responses (<5%) indicated no employer-funded healthcare was available.

  • "We have group health insurance plan and pay a contribution."
  • "Health 85% of employee only and 60% family."
  • "Health Care - ranges from none provided to 75% employer funded; single and or family"
  • "$800-$1200 monthly contribution for healthcare"
  • "100% COVEREAGE FOR EMPLOYEE 40% FOR FAMILY"
  • "We pay all health care coverage"
  • "We provide a full health care family package to all of our employees with a standard annual deduction."
  • "Company pays 100% of the health care premium"
  • "Full health care coverage and 401(k) available from Company."

Integrator vs. Manufacturer Compensation

Overall, manufacturers offer higher compensation for all comparable positions.

While integrator and manufacturer outside sales people have similar overall annual compensation (see: Manufacturer Sales Compensation 2016 Report), manufacturers enjoy two advantages:

  • Generally higher base salaries for manufacturer than integrator salespeople which reduces some risk, provides more consistent income and is generally more attractive even if the salesperson is good.
  • Maximum attainable sales earnings favor manufacturer sales people, where total income of $180K-$200K+ is a realistic goal for high achievers. Integrator total sales income had a sharp drop after ~$140K.

Manufacturer sales engineers are somewhat comparable to integrator senior techs in many job functions, however sales engineers routinely earn $100K+, over $30K more than senior techs, though often with significantly more travel.

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