CE Pro February 2023 - 30

OPERATIONS
Wage, Salary & Labor Rates Study
Average Wages & Salaries in 2022
2022 AVERAGE
WAGE/SALARY
Occupational Category
CFO/CEO/GM/Owner
Systems Designer
Programmer
IT/Network Management
Specialist
Admin/Customer Service/
Office Mgr.
Sales Manager
Entry-level Sales Rep.
Project Manager
Installation Technician
(less than 2 yrs. exp.)
Installation Technician
(2 or more yrs. exp.)
Service Technician
ange in How Company Owners Are Paid
How Company Owners Are
Paid
Both -
Paid salary
+ company
profits
33%
49%
18%
Derive income
solely from
company profits
Staff?
Owners are realizing that they get a true cost of payroll
if they pay themselves a salary. In all, 82% of company
owners pay themselves a salary.
2022 Employee Bonus Value
30 | CE Pro February 2023
Pay myself
a salary only
All Companies
$120,265
(down 1.8%)
$74,068 (up 3.8%)
$71,431 (up 4.7%)
$70,113 (up 4.8%)
$23.41/hr. (up 11.2%)
$97,197 (up 9.3%)
$67,225 (up 8.6%)
$77,727 (up 9.2%)
$22.10/hr. (up 11.2%)
$29.33/hr. (up 10.8%)
$28.14/hr. (up 9.4%)
When Are Sales Commissions
Paid?
Similar to 2021, in 2022 across
the board, dealers had to
pay more for every role within a
custom installation company...
the only one who didn't get a
raise was the owner!
2022 Labor Profitability
2022 Installation Labor Rates
Charged
Why is the cost of labor so
important? Because in recent
years the custom electronics
industry has recognized that
the professional expertise
they bring in design and installation
is one of the most
valuable elements of the
business. Therefore, dealers
are now relying on earning
solid profit from their labor
and relying less on profit
from equipment markups.
systems with additional
smart home features tacked
on and multi-year monitoring
agreements. Another 8%
of dealers report they break
even on their labor.
The use of subcontract
2022 Pre-Wire Labor Rates
Charged
labor remained steady in
2022. According to the
study, 37% of integrators
report they used subcontract
installation labor last
year for pre-wires, slightly
cepro.com
increase in 2021. That means
integration companies are
paying an alarming 19% more
for entry-level technicians
than they were in 2020.
Logically, if you are
paying more for fresh green
technicians, it means the
cost to employ an experienced
service technician
or lead technician was also
much higher over the past
two years. Average national
wages for lead technicians
have risen a whopping 27%
in two years, while wages for
service techs have soared
16% since 2020.
With the steady drumbeat
of increased labor, it
is not surprising that only
3.6% of integrators report
they were able to lower
their total payroll in 2022,
presumably by employing
fewer individuals. More than
one in five dealers (21%)
were able to maintain a flat
payroll in 2022.
Dealers earn a median of
35% profit on their labor,
but some dealers have set in
place a formula to earn much
more than that.
According to the study,
some integrators are pocketing
some serious profits
from their labor. Nearly one
in four dealers earns more
than 50% profit on their
labor, with 5% of integration
companies earning more
than 100% margin on their
labor. The more profit an integrator
can make on his or
her labor, then it opens the
door to sell consumer-grade
smart home equipment that
sometimes does not have
the ability to be marked up.
Remarkably, 4% of
integrators report they
lost money on their labor
last year, that is double
the percentage from 2021.
Those are likely security-based
providers offering
subsidized entry-level alarm
IN THE FIELD
SALES
SUPPORT STAFF
EXECUTIVE
LEVEL
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CE Pro February 2023

Table of Contents for the Digital Edition of CE Pro February 2023
