T+D Magazine: 2006 Salary Snapshot

What Drives Pay for Learning Professionals?

An ASTD member demographics survey of more than 2,800 trainers at all levels shows that the industry’s highest salaries go to executives in the for-profit sector. Two types of jobs are likely to pay the most: a top training job in a pharmaceutical company or employment as a management consultant or sole proprietor of a training company.

The data shows that education level, years of experience, and geography affect earning power in the learning profession. Training jobs in the Northeast tend to pay more than in other parts of the United States, and as in the U.S. workforce as a whole, men earn higher salaries than women on average, beating them by about 16 cents on the dollar. A learning professional’s area of expertise also correlates with earnings. Those who work in career planning and talent management have higher salaries than those professionals who specialize in delivering training.

The data paints a picture of a profession where there is the opportunity to increase earning potential by taking certain steps: obtaining an advanced degree, working in particular industries, and moving from training design and delivery roles into managerial and executive positions. While this could be true for many professions, the opportunity to work toward corporate-level positions in training is greater now that learning plays a clear role in driving organizational strategy and success. The knowledge economy has given a boost to training jobs.

Fast Company magazine’s list of top jobs for 2006 includes the category “training and development manager.” Based on data from the Bureau of Labor Statistics, the list includes “jobs that will be in high demand, offer excellent potential salaries, and require some level of higher education.”

Money magazine lists human resources manager as one of the 10 best jobs in America because of changes in the HR profession—changes that could contribute to earning potential for learning professionals. Many HR functions—such as payroll and benefits administration—are being outsourced, leaving the core of the work focused on programs that develop employees as contributors to the bottom line. In other words, in many HR departments, training has taken center stage because it increases employee productivity and closes skills gaps that stand in the way of reaching strategic goals. Some companies are even creating a vice president-level position for talent management.

Because organizations use a variety of titles to describe jobs and responsibilities—many of which may not be comparable between industries—this table compares the individual’s level or span of control within the organization and salary range.

Overall, the higher the position, the higher the person’s income. For example, a majority of executives (66.4 percent) have salaries above $90,000, while a majority of individual contributors (60.8 percent) earn between $40,000 and $69,999. A larger concentration of managers, supervisors, and team leaders has salary levels in the $50,000 to $69,999 and $70,000 to $89,999 ranges. While university professors and college instructors have a wide range of salaries, there is an equal amount (9.1 percent) in the lowest and highest salary ranges.

Like many professions, the more years you spend working in it, the higher your income level typically is. Thirty-eight percent of WLP professionals with five to 10 years of experience indicated salaries in the $50,000 to $69,999 range, while 30 percent of professionals with 10 to 20 years of experience reported salaries between $70,000 and $89,999. Compared with the other groups in this table, respondents with more than 20 years of experience had the highest percentage of income in the $120,000-plus salary range.

Looking at total income in salary ranges of $50,000 and higher, WLP professionals in for-profit organizations and individual consultants or sole proprietors earn the most. Eighty-two percent of respondents who work in training or learning product or service companies earn $50,000 or more. Independent consultants or sole proprietors reported the highest income level in the $120,000-plus salary range, and not surprisingly, there is a high concentration of students reporting income in the lowest salary range ($0 to $29,999). Respondents in the unemployed category may be reporting unemployment benefits, investments, or other income.

When looking at income by regions of the United states, respondents located in the Northeast earn the highest salaries (13.0 percent at $120,000-plus), with the West not far behind with 11.8 percent at $120,000-plus. In contrast, respondents in the Midwest have higher concentrations in the lower salary ranges ($69,999 and below), with only 5.8 percent of respondents indicating incomes in the $120,000-plus salary range. Generally, WLP professionals in the South fared better than those in the Midwest.

When examining the data by industry sector, the largest number of respondents report income within the $50,000 to $69,999 and $70,000 to $89,999 salary ranges. However, the highest concentration of respondents in the $120,000-plus salary range included professionals in the management consulting sector, followed by professionals in the pharmaceutical sector. Those in the accommodation or food services, and business schools, and computer and management training industry sectors reported the largest percentage of incomes in the lowest salary range ($0 to $29,999).

Professionals in the software publishing industry reported incomes of $40,000 and above, and this group had the second highest average income overall. The technology industry, which includes broadcast and telecommunications in addition to information technology, reported a wide range of incomes at both the low and high ends of the salary scale.

Reported by Laura Bynum, Pat Galagan, Jennifer Homer, and Paula Ketter. Data analysis by Julia Raether.