As our 2016 salary survey journey continues, we are getting closer to what matters most: money. Last time, in Part I, we established you are well-experienced, educated and the owner. All highly desirable demographic characteristics. Let’s go a layer deeper.
You are full-time in your company. In fact, you’re likely working overtime! Very few were part-timers. With that said, you’re a W-2 employee in the US (this was nearly 60% of your income) followed by additional income in the form of owner draws and dividends (30%). Makes sense for anyone who has run a small business.
Looking more specifically at compensation, the most common response was salary with bonus (39%). Very few of you were working for an hourly wage. And only one respondent had a commission-only position. Your actual compensation clusters in the range of $91,000 to $150,000 USD. Impressive. The exact average (mean) compensation was, wait for it, was $91,000 to $100,000 which is consistent with prior years of survey. The most frequent response (mode) was exactly tied in the range of two categories: $91,000 to $100,000 and $101,000 to $125,000. All of this supports our long-running narrative that “our people make $100,000 USD per year.”
Vendors and sponsors, in an eternal quest to turn geeks into resellers, are always seeking out the “big guys” at the expense of not showing love to the little guy. Our survey results offer both. The most popular response (mode) for company revenue was $1-million to $3-million, a full 29% above the next category. The average (mean) response was $251,000 to $300,000. Why is this? That’s because we have a double bell curve. We have a cluster of responses in the $51,000 to $200,000 company revenue range that is dragging down the overall average. I’d offer this is the one-person shop. But the cluster between $500,000 and $10,000,000 ($10M) represents50% of the responses (OK actually 49.99%). Something for everyone.
So what’s it all mean. A “B” grade that you’re hanging in there during changing times, transforming compensation models and shifting technology paradigms. Staying even is the new win. Congratulations.
Next week we will look into forward looking statements. Join us right here in the SMB Sunday paper!
PS – Want to make more? Attend our Office 365/Windows 10 Roadshow! Phoenix is May 10th following by Los Angeles and San Francisco. Learn more at 2016roadshow.smbnation.com.