OSPE - The Voice - Spring 2020 - 21

CAREERS

Specialization
Engineers typically enjoy a pay premium over other professions,
but holding specialized skills can attract even higher premiums.
For two engineers in the same discipline at the same level, the jobs
that they perform and the skills required can be very different, and
their contribution or internal equity to the organization can vary.
For example, if we look at the P3 Level / C Level across multiple
engineering specializations, we see a differential of up to $40,000
on base salary. The highest paid base salary reported in the Mercer
| OSPE National Engineering Survey Central Region (Ontario) is
for Chemical Engineering.

what a company's local talent pool looks like, and whether or not the
cost of relocation is competitive to motivate employees.
Even looking within Ontario, we see wage variance by location.
As seen in the graphic below, Civil/Construction/Structural
Engineers at the Level P3 / Level C have considerably higher base
salaries in the Toronto region than in Eastern Ontario.

Civil/Construction/Structural Engineering by
City and Region at Level P3/Level C
$140,000

Ontario Engineers in various jobs at
Level P3/Level C

$120,000
$100,000

Base Salary (Median) (000s)
$0	

$20,000	 $40,000	 $60,000	 $80,000	$100,000	 $120,000	$140,000

Quality Assurance
Engineering

$80,000
$60,000
$40,000

Electrical Engineering
$20,000
Mechanical Engineering

Product Design
Engineering
Field Service
Engineering
Multiple Engineering
Specalizations
Chemical Engineering
Mechanical Product
Design Engineering
Project Planning/
Scheduling Engineering
Mining Engineering

Source: The 2019 Mercer OSPE National Engineering Survey - Central
Region/Ontario Data represents jobs at level P3/Level C with 10 or more
organizations.

Location
Location, location, location - we've heard it before. Because
engineers are employed across various industries, they can be
deployed all over the world to either dense and populated settings or
to remote work sites. The cost of living and quality of life are major
considerations when setting pay levels. Location also determines

Region: Greater Toronto

Region: Other Ontario

Region: Northern
Ontario

Region: Southwestern
Ontario

City: Mississauga

City: Toronto

City: Thunder Bay

Region: Eastern Ontario

Environmental
Engineering

City: Markham

Civil/Construction/
Structural Engineering

Base Salary
(Median)
(000s)

City: Kitchener/
Waterloo

Manufacturing Production
Process Engineering

City: Ottawa

$0
Project Engineering

Source: The 2019 Mercer OSPE National Engineering Survey - Central
Region/Ontario Data represents jobs at level P3/Level C with 5 or more
organizations.

Performance
Pay-for-performance is a common topic in human resources, but
what exactly does it mean for you? According to our data, 67% of
participating companies have a performance rating system. While
company performance can drive STI and LTI values, individual
performance metrics are the most common, with 95% of companies
using it to determine base salaries.
Having clear performance expectations and ratings promotes
alignment of employee and employer efforts, provides effective
motivation, and ensures that employees who work hard and are
good at their jobs are properly rewarded.
Performance Ratings
Many organizations use a pay-for-performance approach when
providing salary increases and rewarding high performers with
greater than average salary increases. More than half (63%) of
organizations differentiate performance using a four or five level
rating system.

Spring 2020 THE VOICE

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OSPE - The Voice - Spring 2020

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