AMWA Salary Survey 2007

Analysis of Data

Tinker GrayCindy Hamilton

Copyright 2007, American Medical Writers Association

All rights reserved

Disclosure

• No funding was received for this survey.

• Tinker Gray has no conflict of interest to disclose.

• Cindy Hamilton is a freelance writer who considers the salary survey when setting fees and hourly rates.

History

1320

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886

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1989 1994 2002 2004 2007

Number of participants

Overview

• Methods• Results

Demographics Income for employees Regression analysis Pharmaceutical and biotechnology

companies Income for freelances

• Discussion and summary

Methods

• Data collection Between April 18 and May 12, 2007 Through independent survey Web site

• Notification AMWA e-mail update in March and April 2007 Notice in AMWA Journal March 2007 E-mailed to 5,370 members (~ 10% returned

undeliverable)

Definition: Employed by a company, individual, or institution

• You are employed part-time or full-time by a company, institution, or individual either hourly, salaried, or by contract.

• The employer pays social security taxes and deducts state and federal taxes from your pay.

Definition: Freelance work

• You do work for hire by a company or individual.

• You pay all of your own social security taxes, and state and federal taxes are not deducted from the pay you receive from your client.

Definition: Employment

• Full-time employment: You work 32 hours or more per week

• Part-time employment: You work 32 hours or fewer per week

Definition: Income

• Total income: For employment by a company, institution, or individual, report your total income before deducting taxes.

• Gross income: For freelance work, report the total amount of money collected from clients.

• Net income: For freelance work, report the amount of income before deducting taxes and retirement contributions and after subtracting deductible expenses such as insurance, subcontracting, and equipment.

Methods (cont’d)

• Questions pertained to salary and work status for 2006.

• All questions required an answer.

• Some people stopped responding in the middle of the survey; therefore, the total number of responses varied slightly for each question.

Overview

• Methods

• Results Demographics Income for employees Regression analysis Pharmaceutical companies Income for freelances

• Discussion and summary

Results: Number of Responses By Type of Question

Response Type 2004 2007

Employment 1,811 (38%) 1,704 (33%)

Demographics 1,774 1,664

Description of work 1,751 1,650

Salary information 1,735 1,628

Demographics

• Men

Number: 281 (17%)

Mean age: 46.8 ± 11.5 years

• Women

Number: 1,383 (83%)

Mean age: 45.1 ± 10.3 years

Predominant Chapters*

Number (%)

Chapter AMWA Survey

Delaware Valley 887 (16.2) 238 (14.4)

New York 651 (11.9) 167 (10.1)

New England 547 (10.0) 157 (9.5)

Mid-Atlantic 324 (5.9) 136 (8.2)

Greater Chicago 307 (5.6) 96 (5.8)

*All chapters represented

Region of Primary Work

• NY, PA, NJ, DE, Eastern Canada: 30%

• Pacific NW, CA, HI: 14.6%

• Southeast US, MD, DC: 12.8%

• Midwest: 13.2%

• MA, CT, RI, VT, NH, ME: 8.9%

Highest Educational Level

Advanced Degree

Bachelor’s Degree

Master’s Degree

Associate’s Degree or Below

2%

33%

35%

30%

Field of Highest Degree

•Science (39.7%)

•Liberal Arts (11.4%)

•Journalism (4.9%)

•Pharmacy (4.8%)

•Medicine (4.1%)

•Communication (3.8%)

•Public Health (3.3%)

•Nursing (1.8%)

•Technical Writing (3.2%)

•Medical Writing (1.0%)

•Other (24.3%)

Years in Biomedical Communication

11 − 15

5 − 10

<5 >25

21 − 25

16 − 20

14%

28%

6%

35%

6%

11%

Mean number of years ± SD

• All: 10.5 ± 8.3

• Men: 10.8 ± 8.8

• Women: 10.4 ± 8.2

• Some change in percentages in groups since 2004 survey

• <5 year group changed from 23% to 35%

Predominant Source of Income

Employ-ment Type

AMWA 2004 Survey

2007 Survey

Employee Not available

1,215 (67%)

1,183 (69%)

Freelance 1,976 (35%) 596 (33%) 521 (31%)

Overview

• Methods

• Results Demographics Income for employees Regression analysis Pharmaceutical company Income for freelances

• Discussion and summary

Work Situation:Employed by Company or Organization

• Number of respondents: 1,170

• Full-time: 1,107 (90%), including 54 respondents who do part-time freelance work

• Part-time: 66 (10%), including 19 respondents who do part-time freelance work

Hours worked: Employed by Company or Organization

• Full-time: Mean 43.2 + 6.3 hours/week (range, 32 to 90)

• Part-time: Mean, 23.0 + 6.2 hours/week (range 10 to 30)

Educational Level*

Degree Women

n %

Men

n %

Associate’s or below

22 2 2 0.7

Bachelor’s 473 34 74 26

Master’s 480 35 80 28

Advanced 404 29 125 45

*Employed full-time by company or organization

Mean Income By Educational Level and Sex*

*Employed full-time by company or organization

Degree

Women

n Mean

Men

n Mean

Associate’s or below

13 68,769 2 71,500

Bachelor’s 322 73,522 53 90,640

Master’s 300 77,339 60 86,240

Advanced 226 91,797 83 101,872

Primary Employer

OTHER

Biotech Company

Research or Education

Health Care Org

PharmaceuticalCompany

University or Medical School

Journal orPublisher

Medical Device Co

CRO

Communication orAdvertising

Association/Professional Soc

7%

7%11%

25%

9%9%

12%

5%

4%

4%4%

Income by Primary Employer

Employer n Mean Median % change*

Biotech company

102 102,297 94,500 N/A

Pharmaceutical 286 97,807 93,000 +12Medical device company

35 85,451 86,000 N/A

Communication or advertising

95 83,338 70,000 +1.5

*Since 2004 survey

Income by Primary Employer (cont’d)

Employer n Mean Median % change*

Clinical research organization

87 76,620 72,600 +7.6

Medical Ed company

96 77,088 75,000 N/A

Web/medical company

10 73,500 76,000 N/A

Government 22 71,014 75,600 N/A

Other 63 76,295 73,000 +10.7*Since 2004 survey

Income by Primary Employer (cont’d)

Employer n Mean Median % change*

Association or professional society

36 68,574 64,000 +12

University or medical school

85 64,438 60,000 +6.9

Research or educa-tional organization

46 63,443 60,000 +8.3

Health care organization

66 65,637 63,000 +8.9

Journalism or publishing

38 58,692 55,500 +1.5

*Since 2004 survey

Income by Region

Region n Mean Median % change*

Outside US and Canada

34 88,809 92,000 +14.1

NY, PA, NJ, DE, Eastern Canada

312 90,744 83,000 +12.3

AK, WA, OR, CA, HI, Western Canada

155 91,537 84,000 +12

MA, CT, RI, VT, NH, ME

92 83,670 85,000 +5.3

WI, MI, OH, IN, IL 133 78,044 76,000 +4.6

*Since 2004 survey

Income by Region (cont’d)

Region n Mean Median % change*

KY,TN, NC, VA, WV, MD, DC

134 73,317 68,000 +8.0

ND, SD, NE, MN, IA 29 76,331 71,000 +25%

AL, MS, GA, FL SC 51 71,658 65,000 +10.7

KA, OK, TX, MO, AR, LA

74 66,856 63,500 +20.7

ID, MT, WY, NV, UT, CO, AZ, NM

42 61,298 58,000 +8.3%

*Since 2004 survey

Income by Job Category

Category n Mean Median % change*

Supervision or administration

61 120,629 107,000 +3.2

Writing/editing/supervision

234 99,004 90,000 N/A

Writing (primarily) 206 80,441 78,250 +5.7

Writing/editing (equal mixture)

266 73,954 70,000 +1.9

*Since 2004 survey

Income by Job Category (cont’d)

Category n Mean Median %

change*Editing (primarily)

172 64,500 60,000 +8.9

Research and writing

75 69,099 67,500 -1.5

Education 11 63,000 60,000 -14.0

Other 45 91,021 94,800 +18.5%

*Since 2004 survey

Income by Employment Level

Level n Mean Median % change*

Entry 76 60,167 59,000 +24%

Middle

No supervision 425 69,340 65,000 +9.6

Supervision 167 90,275 90,000 +21.6

*Since 2004 survey

Income by Employment Level (cont’d)

Level n Mean Median % change*

Senior

No management 236 85,950 84,000 +8.6

Management 148 116,208 105,000 +16.8

*Since 2004 survey

Mean Income by Company Size

Number of Employees n Mean

< 50 125 75,972

50 – 100 96 71,083

101 – 200 119 75,123

201 – 300 63 81,198

301 – 500 57 78,911

> 500 595 87,061

Mean Income and AMWA Certificate

Certificate n Mean

None 779 79,917

Core Curriculum* (21% of respondents vs. 18% of AMWA members)

227 85,432

Advanced (5.7% of respondents vs. 3% of members)

61 99,897

*Certificate versus no certificate, P <0.0001

Income in Relation to Inflation

• Mean income 2004 Survey 2007 Survey reported

by full-time employees at companies or organizations

• Inflation over 3 years• Increase in income

$74,016

$82,232

9.3%*

11.1%

*www.Inflationdata.com

Overview

• Methods

• Results Demographics Income for employees Regression analysis Pharmaceutical company Income for freelances

• Discussion and summary

Analysis of Factors Affecting Income

• Regression analysis with interaction was performed for respondents who worked full-time at companies or organizations.

• Regression analysis shows factors that are predictive of income level.

Factors Considered in Analysis

• Educational level (less than bachelor’s, bachelor’s, master’s, or any advanced degree)

• Sex

• Years in biomedical communication

• Age

• AMWA certificate (of any kind)

Regression Analysis (cont’d)• Like employers on basis of average income

Group 1: Pharmaceutical company or biotechnology company

Group 2: Medical device company or communications or advertising companies

Group 3: All other employers (university or medical school, association or professional society, journal or publisher, health care organization, and research organization)

Results of Regression Analysisin 1059 subjects

High correlation between age and years of experience, so years of experience was used for analysis.

AMWA certificate was not significant in the model.

Men earn more than women, even when they have similar experience and education.

R2 = 0.5210, so model explains 52% of variance in income.

Regression Analysis (cont’d)

Associate’s degree or less = $33,700

+$28,950 pharmaceutical

or biotech

+$14,475 medical device,

communications, advertising

+$1,789 each year of experience

+$9,294

Bachelor’sdegree

+$18,588Master’sdegree

+$27,882

Advanceddegree

+$8,984 for being male

Other Factors Added to the Regression

• Employment level (6 levels)

• Job category (7 categories)

• Included each factor separately in 2 analyses

Regression Analysis - Employment Level

Associate’s degree or less = $24,087+

$29,730 pharmaceuticalor biotech

+$14,865 medical device,

communications, advertising+

$991 each year of experience

+$8,478

Bachelor’sdegree

+$16,956Master’sdegree

+$25,434

Advanceddegree

+$7,627 for being male

+Mid-nonsuper

$8,449

+Mid-super

$25,478

+Senior-nonsuper

$19,774

+Senior-manage

$48,011

Regression Analysis - Job Category

Associate’s degree or less = $33,357+

$26,468 pharmaceuticalor biotech

+$13,234 medical device,

communications, advertising+

$1,480 each year of experience

+$8173

Bachelor’sdegree

+$16,346Master’sdegree

+$24,579

Advanceddegree

+$8,799 for being male

-Edit

$5,080

+Write$3,286

+Write-super

$17,558

+Super-admin

$37,852

Closing the Income GapBetween Men and Women?

30 2722

17 18

0

20

40

60

80

100

1989 1994 2002 2004 2007

Survey Year

% D

iffe

ren

ce

Overview

• Methods

• Results Demographics Income for employees Regression analysis Pharmaceutical company Income for freelances

• Discussion and summary

Pharmaceutical Company:Mean Income by Experience and Education

Men / Women

Years of Experience

Advanced

Degree

Master’s

Degree

<5 88,333 / 90,126 77,600 / 76,857

5 to 10 121,200 / 111,442 105,400 / 95,112

11 to 15 * / 123,000 * / 95,333

>15 * / 137687 * / 128,179

* Fewer than 5 responses

Pharmaceutical Company:Mean Income by Employment Level

Employment Level Men Women

Entry 73,600 67,500

Middle

No supervision 90,519 86,563

Supervision 110,000 110,319

Senior

No supervision 101,272 97,935

Supervision 145,100 137,056

Biotechnology Company:Mean Income by Experience and Education

Men / Women

Years of Experience

Advanced

Degree

Master’s

Degree

<5 114,150 / 90,882 87,780 / 70,485

5 to 10 * / 135,944 * / 95,764

* Fewer than 5 responses

Biotechnology Company:Mean Income by Employment Level

Employment Level Men Women

Entry * 69,905

Middle

No supervision 84,741 81,573

Supervision 141,250 116,705

Senior

No supervision 117,116 89,206

Supervision 161,333 152,625* Fewer than 5 responses

Overview

• Methods

• Results Demographics Income for employees Regression analysis Pharmaceutical company Income for freelances

• Discussion and summary

Work Situation: Freelance

2004 2007

Respondents 818 568

Full-time 376 (46%) 206 (36%)

Years experience (range)

12.4 ± 8.5(1 – 46)

12.9 ± 8.7(1 – 46)

Mean Years of Age and Experience

Employee Freelance

Age (all) 43.8 48.4

Women 43.7 47.5

Men 44.0 53.7

Experience (all) 9.2 12.9

Women 9.2 12.6

Men 9.1 14.9

How Freelances Bill Their Clients

Usual Billing Method 2004 2007

By the hour 387 (55%) 364 (64%)

By the job 240 (34%) 143 (25%)

By unit of work 14 (2%) 39 (7%)

Other 63 (9%) 26 (5%)

How Freelances Bill for Revisions

Usual Billing Method 2004 2007

By the hour 379 (55%) 312 (55%)

By the job 148 (21%) 169 (30%)

By the page 10 (1%) 13 (2%)

Not applicable 158 (23%) 45 (8%)

How Freelances Bill for Revisions (cont’d)

Number of Revisions Included in Fee

2004 2007

Zero 10 (1%) 11 (1.9%)

One 182 (26%) 143 (25.2%)

Two 144 (21%) 137 (24.1%)

Three or more 44 (7%) 26 (4.6%)

Not applicable 315 (45%) 251 (44.2%)

How Freelances Charge for Rush Jobs

• New question: “If you do charge a rush fee, what percentage do you charge? (If you do not charge rush fee, enter a zero.)”

• Answers No extra charge: 429 (76%) Range of charges: 0.05% to 200%

Do Freelances Reduce Their Rates?

• No: 34%

• Reasons for reducing rates* Believe in/care for cause: 24% Expand portfolio: 19.9% Get acquainted: 17.8% Volume discount: 16.7% Desperate for work: 11% Beginner rate: 7.7%

* Participants could give multiple reasons.

Most Recent Pay Raise

Never

2006

2005

2004Other<2004

23%

12% 5%6%

17%

37%

Operating Expenses

• Health insurance: 36%

• Licensing: 29%

• Disability insurance: 15%

• Errors of omission/liability insurance: 14%

• Rental space: 10%

• Other: 29%

• None: 29%

Freelance Income*

• Mean gross income: $119,295• Mean net income (gross income – deductible

expenses): $93,306• Net income as percentage of gross: 78%

* Calculated in 196 freelance participants who reported both gross and net income.

Mean Freelance* Income By Educational Level and Sex

*Full-time freelance

Degree

Women

n Gross / Net

Men

n Gross / Net

Bachelor’s 57 84,864 / 66,971 11 146,198 / 106,181

Master’s 57 117,384 / 85,406 9 143,888 / 107,444

Advanced 49 148,253 / 114,692 13 146,642 / 131,143

Net Freelance* Income by Job Category

Job Category n Mean Median % change*

Writing (primarily) 93 110,232 93,000 +42.8

Editing (primarily) 14 46,071 43,000 +23.7

Writing and editing

(equal mixture)

63 75,891 65,000 +32.8

Research and

writing

15 76,620 65,000 +45.3

Other 11 97,181 58,000 +215

*Since 2004 survey

Differences Between 2004 and 2007

2004 2007

Respondents 818 568

Years experience (range)

12.4 ± 8.5(1 – 46)

12.9 ± 8.7(1 – 46)

Full-time 376 (46%) 206 (36%)

How Profitable was Freelance Business Compared with Previous 2 Years?

• Better than average: 37%

• Average: 27%

• Worse than average: 16%

• Not applicable (less than 3 years experience): 20%

Freelance Hourly Rates

Job Category n Mean Median Mode

Full-time

Writing 206 97 100 100

Editing 149 80 75 60

Part-time

Writing 266 84 85 100

Editing 219 64 60 75

Mean Freelance Hourly Rates In 2004 Versus 2007 Survey

2004 2007 % increase

Full-time

Writing 85 97 14

Editing 66 80 21

Part-time

Writing 79 84 6

Editing 63 64 2

Overview

• Methods

• Results Demographics Income for employees Regression analysis Pharmaceutical company Income for freelances

• Discussion and summary

Satisfaction With Work

Very Satisfied

Mostly Satisfied

Satisfied

Mostly Unsatisfied Very Unsatisfied

30%

1%5%

19%

45%

Satisfaction With Pay

Very Satisfied

Mostly Satisfied

Satisfied

Mostly Unsatisfied

Very Unsatisfied

34%

25%

14%

4%

23%

Correlation between satisfaction with work and pay (R2 = 0.4373; P < 0.0001)

Survey Limitations

• Response rate in 2007 (33%) was lower than in 2004 (45%).

• Some employers, especially pharmaceutical companies, instructed employees NOT to answer the survey, which also occurred with the last 2 surveys. This might have suppressed average income in this survey.

• Other surveys conducted by AMWA may have reduced response rate to this survey.

Summary

• Income for biomedical communicators is keeping pace with inflation and income is related to education and experience.

• Men still generally earn more than women, despite consideration of factors such as educational level and years of experience.

The income gap between women and men for this survey was similar to what was reported in 2004.

Acknowledgments

• AMWA members who participated in the survey

• Kanitha Andersen, MS for providing the statistical analysis of that data

• Committee members who helped improve and expand the questions of the survey

Committee Members

• Lori Alexander

• Elizabeth Davies

• Kathy Gilbert

• Carol Gunderson

• Allison Millard

• Trish Rawn

• Laura Singer

• Jeannette Tomanka