BLAND FOOD GOES IN JOB SATISFACTION, Salaries are edging downward, so

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1 IN JOB SATISFACTION, FOOD GOES BLAND Salaries and satisfaction among food & beverage employees are sliding a little, according to our annual survey. By Pan Demetrakakes, Senior Editor Salaries are edging downward, so is job satisfaction, and people are evenly divided on President Trump. Those are some of the key takeaways from Food Processing s 12 th annual Salary & Job Satisfaction Survey. The online poll probed nearly 400 employees in the food & beverage sector on both salaries and attitudes. Salaries averaged out to $97,259, a drop of 3.2 percent from our 2017 survey. The median salary did go up a level, reaching $87,500, compared with $85,000 in 2016 perhaps a reflection of higher salaries clustering slightly at the top. Job satisfaction also seems to be down slightly, or at least leveling off, depending on how you look at it. Only 16 percent of respondents report being very satisfied with their jobs, a drop of more than half from Dissatisfaction was up: 19 percent reported being somewhat dissatisfied, compared with 15 percent last year; 9 percent said they were very dissatisfied, versus 6.3 percent last year. On the other hand, 42 percent reported being somewhat satisfied with their jobs, up considerably from the 26 percent of Add those to the very satisfied group and the combined 58 percent is within three points of last year s combined satisfied number. This trend roughly parallels the U.S workplace as a whole: Over the past couple of years, employees have gone from happy with their jobs to just OK with them, with a strong undercurrent of resentment, according to other national surveys. The Conference Board (www. conference-board.org) reported in 2016 that almost 51 percent of American workers were satisfied. But last year, Gallup (news.gallup.com/reports/199961/7.aspx) found 51 percent of employees considered themselves not engaged at work, and another 16 percent said they were actively disengaged. Employment experts say that, even though wages have been stagnant for more than a decade, compensation isn t the leading cause of job dissatisfaction. While it s certainly a contributing factor, employees are more likely to resent what they perceive as bad management and lack of respect. The Peter Principle is to blame: Many bosses tend to get promoted due to long service to the company and success in previous roles, where they had little or no supervisory duties. 28 FOOD PROCESSING November 2018 FOODPROCESSING.COM

2 WHO ANSWERED THE SURVEY The 11th annual Food Processing Salary & Job Satisfaction Survey drew 394 online responses from food & beverage industry professionals. They broke down as: Gender: 65 percent male, 35 percent female. Education: 37 percent bachelor s degree, 26 percent more education, 17 percent less. Job classification: 19 percent quality assurance, 17 percent R&D/product development, 12 percent corporate management (the three largest categories represented). Industry experience: 17 percent with 36 years or more, 18 percent with 26 to 35 years, 24 percent with 15 to 25 years, 24 percent with six to 14, and 17 percent with five or less. Company size: The most frequent responses were 49 or fewer employees (24 percent); between 100 and 249 employees (20 percent); and 5,000 or more (15 percent). Company type: The most frequent responses were further-processed/packaged foods (14 percent); meat, poultry and seafood (12 percent), and fruits and vegetables (10 percent). AVERAGE SALARIES OVER THE YEARS 2018 $97,259 $87, $100,508 $85, $93,883 $85, $101,698 $87, $97,303 $85,000 Average salary Median salary When companies promote a worker to management on the basis of prior performance, they lose a job expert and obtain a manager who oftentimes has no talent for people management, Fabian Schumann, a business development managing consultant at Gallup, wrote in an article in Business Journal. On our survey s list of what might offer job satisfaction (with multiple choices allowed), the most popular choice, at 49 percent, was salary and benefits. But close behind were challenging work (46 percent) and appreciation (40 percent). Respondents who provided written comments about their jobs often emphasized appreciation or the lack thereof nearly as much as compensation. Bad management, low job security, horrible benefits, extreme demands by HOW SATISFIED ARE YOU? 13% LY 18% 1 LY 15% 16% LY 35% LY 6.3% 42% LY 26% upper management, no appreciation, said one dissatisfied employee. Others cited similar factors: micromanaging CEO, very volatile ; my boss is very discouraging and challenging to work with ; management is a very bad at communication ; upper Very Satisfied $134,684 Somewhat Satisfied $89,040 Neither Satisfied or Dissatisfied $86,535 Somewhat Dissatisfied $93,998 Very Dissatisfied $85,656 administration cares little about how well we do our work. Conversely, those who explained why they liked their jobs often cite what they see as positive, supportive management: The new owners have this a great place to work at ; good work environment, FOODPROCESSING.COM November 2018 FOOD PROCESSING 29

3 fun atmosphere, understand leadership ; good leadership and great working atmosphere ; I have owners that care about employees and the company. They reward a job well done and don t give up on workers that need guidance. Help wanted Another macro trend that seems to be affecting the food industry is a shortage of qualified workers. As the economy maintains its momentum, companies in all employment sectors are having problems finding enough workers. With the U.S. unemployment rate at a near-record low of 3.9 percent, employers across the country are struggling to fill a record 6.7 million job openings, according to a report released this summer by ADP and Moody s Analytics. The problem is of course more intense in certain industries, but it s a nationwide challenge for companies of all types and sizes. Business number one problem is finding qualified workers, Mark Zandi, chief economist at Moody s Analytics, said in a statement quoted by CNBC. At the current pace of job growth, if sustained, this problem is set to get much worse. The food industry is no exception, according to our survey: More than threequarters of respondents said the worker shortage is real. This breaks down to 56 percent who see positions going unfilled, and another 21 percent who not only see that but think unfilled positions are constraining our capacity or preventing us from expanding. Several of our respondents mentioned the worker shortage, and its consequent unfilled positions, as contributing to job dissatisfaction by increasing their workload. Required to handle more than one person can handle, one employee wrote; too much to do with underqualified staff, said another. One man said the so-called worker shortage was simply a matter of his company being cheap. When we do find a very well-qualified person, we are not allowed to hire them because of money restrictions, he wrote. The only shortage is the number of qualified people willing 3% Corporate Mgmt. $139,320 LY $150,586 16% 12% Engineering $110,076 LY $128,818 Maintenance $74,681 LY $59,500 17% Sales & Marketing $105,967 LY $116,114 15% Plant Operations $91,250 LY $98,086 1 Quality Assurance $81,565 LY $83,100 R&D/Product Dev. $91,999 LY $96,542 Other $86,582 LY $78,194 SALARIES BY FOOD CATEGORY RESPONDENT BREAKDOWN BY SALARY LEVEL Baked Goods $103,226 LY $96,757 Beverages $80,625 LY $81,788 8% Confection $108,586 LY $101,154 Dairy $99,588 LY $91,575 Fruits & Vegetables $96,835 LY 87, % Further Processed $85,115 LY $119, % Grain Products/Milling $96,257 LY $93,134 12% 14% Meat, Poultry & Seafood $90,446 LY $103,039 Packaging $85,667 LY $112, % Snacks $113,314 LY $93, % Value-add Ingredients, etc. $140,638 LY $92,731 Other $94,193 LY $100,152 SALARY RANGES PERCENTAGE OF RESPONDENTS Less than $35, % $35,000-$49,999 11% $50,000-$64,999 16% $65,000-$79,999 12% $80,000-$94,999 14% $95,000-$109,999 $110,000-$129,999 12% $130,000-$159,999 8% $160,000-$199, % $200,000-$249,999 3% $250,000-$299, % $300,000-$399, % $400,000-$499, % $500,000 or more 0.8% 30 FOOD PROCESSING November 2018 FOODPROCESSING.COM

4 DO YOU SEE EFFECTS OF A SHORTAGE OF QUALIFIED WORKERS? EDUCATION LEVEL & AVERAGE INCOME 8% 13% 23% 5% 8.4% 6% 3 56% 16.3% 4.3% The shortage is real; I see positions that are unfilled The shortage is real; unfilled positions are constraining our capacity or preventing us from expanding I don t see it High School/GED $70,426 LY $77,145 Jr. College/Voc. School $84,225 LY $82,428 Some college $75,805 LY $85,803 B.S or B.A. $107,742 LY $98,906 Masters degree $101,484 LY $92,466 MBA $114,333 LY $152,680 Post-graduate studies $88,735 LY $791,557 Doctorate $115,577 LY $133,769 WHAT IS THE MOST IMPORTANT FACTOR IN JOB SATISFACTION? Challenging Work 46% LY 23% Salary & Benefits 4 LY 20% Appreciation 40% LY 23% Job Security 30% LY 11% Advancement Opportunity 25% LY 15% Low Stress 13% LY 5.2% Safe Work Environment 13% LY 1.4% HOW MANY PEOPLE WORK AT YOUR COMPANY? 11% 8% 15% 13% 20% 24% % % % % % 5, % to work for entry-level pay, after spending a career working and perfecting their skills, only to be told they are not worth it. It has become ridiculous! Paradoxically, a couple of people found advantages in the worker shortage. One listed I do many jobs besides my current title as something she likes. Another credits the worker crunch with inspiring better treatment: Company has lost people, and the competition for new employees has made them take a new approach to the way we are treated. Another contemporary issue that has an impact on the food industry is the administration of President Donald Trump. Businesses of all sorts have the potential to be affected by his aggressive approach to global trade. The food industry has special reason for concern, since much of the retaliation from U.S. trading partners has taken the form of tariffs on food, both farm commodities and processed products. Our survey shows respondents as evenly split on President Trump as it s possible to get. Exactly as many people say he s improved the business climate as he s made things worse : 23 percent. The remaining 53 percent chose no change/no opinion/i can t really tell. Several respondents mentioned tariffs: They are hurting us and have already led to lower margins and may have influenced recent layoffs, one said. However, the poll was taken before finalization of the U.S.- Mexico-Canada Agreement (USMCA) on trade, a replacement for the North American Free Trade Agreement. If ratified by the legislatures of all three nations, USMCA would mostly preserve, and in some cases expand, America s access to its neighbors food markets. Trump came in for praise from one respondent: President Trump has done a lot of great things for our country, including pushing Congress to lower our taxes. No time for time off Of course, some concerns are eternal. One of them is getting enough time off or, more accurately, getting to take the time off that you re ostensibly entitled to. 32 FOOD PROCESSING November 2018 FOODPROCESSING.COM

5 WHAT WERE EFFECTS OF LAST DECEMBER S TAX CUTS AND JOBS ACT? 4.5% 5.2% 8.5% 3.0% 9.7% 73% No change on pay or staffing levels Merit raises of 1-5% were given to some Merit raise budgets were increased more than 5% One-time bonuses were given to all or most employees More people were hired Across-the-board raises HAS PRESIDENT TRUMP HAD AN IMPACT ON YOUR BUSINESS? 53% 23% 23% He s improved the business climate He s made things worse No change/i can t tell WHO ANSWERED THE SURVEY? Less than half of our respondents could. Asked if they took all the vacation days they were allotted, only 44 percent said yes. Another 29 percent said most of my allotment ; 15 percent said about half; 7.0 percent said less than half; and an unfortunate 5.4 percent said they took none. Perceptions of job security have been consistent for the past few years and, in fact, were nearly unchanged in 2018 vs Asked about their level of concern over job security compared with last year at this time, 31 percent said they were more concerned, 21 percent said less concerned, and 48 percent said it was about the same. For some commenters, job security concerns were bound up with age issues. The one thing everyone in my age group fears the most is being laid off, said a man identifying himself as between 58 and 65. From 45 and up it is extremely difficult to find a job. From 60 and up it is nearly impossible. Another saw two big hurdles as age-based: The young are starting to enter the workforce later in life, and the older generation will have to work longer in life without pensions and health care. On the other hand, experienced, longtenured workers can be especially grateful if they experience security. Said one man, who has been with his company between 26 and 35 years: I have been here for a long time. My job is challenging and secure. It pays well and it beats working for a living. 65% 35% BY GENDER Women $75,944 LY $75,925 Men $109,973 LY $116,874 MORE OR LESS CONCERNED ABOUT JOB SECURITY THAN YOU WERE LAST YEAR 28% 7% 17% BY AGE 29 & under $57,342 LY $58, $76,964 LY $81, $84,900 LY $94,932 48% 31% 18% $107,331 LY $123, $109,505 LY $113, $125,104 LY $111,594 More concerned 31% Less concerned About the same 48% 34 FOOD PROCESSING November 2018 FOODPROCESSING.COM

6 Corporate Mgmt. 11.8% HOW MANY YEARS IN FOOD/BEVERAGE PROCESSING FIELD 13.8% 11.8% 9.3% 19.1% % 3.4% 2.2% Plant Operations 9.3% Engineering R&D/Product Development 16. Purchasing 2.2% Marketing/Sales 14.6% Maintenance 3.4% Quality Assurance 19.1% Other 13.8% 16.6% % 23.6% 24.4% % % % % YEARS AT CURRENT COMPANY % % DID YOU RECEIVE A BONUS LAST YEAR? 18.5% 42.1% % % 26.7% % % 56.3% Yes 56.3% No 43.7% Baked Goods 7. Beverages (non-dairy) 7% 21.3% % 11.8% 3.4% 7. 14% 9.3% 10.4% Confectionery Products Dairy Products 5. Fruits and Vegetables 10.4% Further-processed/packaged foods & specialties 14% Grain Products/Milling 3.4% Meat/Poultry/Seafood 11.8% Packaging 3.7% Snacks 3. Value-added ingredients/powder Mixes 7% Other 21.3% 35 FOOD PROCESSING November 2018 FOODPROCESSING.COM

7 HOW MANY PEOPLE DO YOU SUPERVISE 23.2% More hours (per week?) 23.2% 3.1% 2.5% 71.2% 5.6% Fewer hours (per week?) 5.6% About the same 71.2% 3.7% 10.7% 37.4% HOW MUCH ANNUAL PAID VACATION DO YOU RECEIVE? 71.2% 2.1% 3.6% % None 3.6% 1-2 weeks 28.70% 3-4 weeks 50.30% None 37.4% % % 5-6 weeks % 50.3% more than 6 weeks 2.1% DID YOU GET TO TAKE ALL YOUR VACATION LAST YEAR? % % SALARIED OR HOURLY? 5.4% 6. Yes, all allotted days 43.5% 15% 43.5% 1-2 weeks 29.1% 3-4 weeks 15% 87.1% 29.1% 5-6 weeks 6. more than 6 weeks 5.4% 12. WHICH OF THE FOLLOWING BENEFITS DO YOU RECEIVE Medical 91.7% Dental 81.8% Life Insurance 68. Disability 56% Pension 25.2% 401K Match 68. Tuition Reimbursement 26.2% Stock Options 6% Profit Sharing 15.2% Company Car 9. Vision plan 56% Fitness membership 10.6% Salaried 87.1% Hourly 12. MOST IMPORTANT IN PROVIDING YOU WITH A STRONG SENSE OF JOB SATISFACTION Challenging work 46.4% Job Security 30.1% Salary and Benefits 49.2% Opportunity for Advancement 24.5% Appreciation 40.1% Low-stress Environment 12. Safe Work Environment 12. FOODPROCESSING.COM November 2018 FOOD PROCESSING 36