E6S-176 Are you Climbing Up? LSS Salary Trends

Like / Dislike  **We'd Appreciate Your Opinion**


Email me: aaron@e6s-methods.com

Leave a Review! http://bit.ly/E6S-iTunes;

Donations: http://bit.ly/E6S-Donate

Intro:  Welcome to the E6S-Methods podcast with Jacob and Aaron, your weekly dose of tips and tricks to achieve excellent performance in your business and career.  Join us as we explore deeper into the practical worlds of Lean, Six Sigma, Project Management and Design Thinking.  In this episode number 176, we ask, "Are You Climbing Up?" and discuss salary trends in the Lean Six Sigma field as well as a review of Aaron's own salary history, adjusted for cost of living. Spoiler - I wasn't always climbing up. If you're just tuning in for the first time, find all our back episodes on our podcast table of contents at e6s-methods.com. If you like this episode, be sure to click the "like" link in the show notes.  It's easy.  Just tap our logo, click and you're done. Tap-click-done!  Here we go. http://bit.ly/E6S-176 Leave a Review! http://bit.ly/E6S-iTunes



***Purchase Detailed 2000-2016 Salary Trend Analysis***


I            Described below is an excerpt from "Beyond the Classroom - Is Lean Six Sigma Right for Me?" It shows a partial analysis of salary trends by Lean Six Sigma certifications between 2000 and 2016. (Source: Quality progress 2000-2016 Salary Surveys; American Society for Quality)

a.       According to surveys, topping off the list, LSS MBBs earn an average of $128,000 annual salary (USD), trailed by Black Belts at $103,300, Green Belts a $91,000. and survey respondents with no certification at $82,000.  Theseresults are the average of all US-based survey respondents between 2014 and 2016.

***Purchase Detailed 2000-2016 Salary Trend Analysis***

II         What's the difference?

a.       Green Belt

i.      2 week's worth of training over the course of 2 months (some trainers cram it to 5-6 long days)

ii.      Prices range $1500-$6000 depending on quality. (some train only to pass exam, which is much cheaper.  Not "training" but test preparation)

iii.      Curriculum includes the DMAIC framework, SPC, capability and measurement system analysis,  basic problem solving tools, Lean practices, and some inferential statistics, (parametric continuous and discrete data)

iv.      Certification criteria vary widely, some exam based, some project based

1.      some certify via exam

2.      some certify by leading a project and demonstrating usage of the tools

3.      some certify by being part of a larger Black Belt project, assisting with tools

v.      Green Belt candidates are often coached by experienced Black Belts or MasterBlack Belts

b.      Black Belt

i.      4-5 week's worth of training over the course of 4-5 months (some curriculum is extended to include DFSS methodology)

1.      Some providers develop a GB+ approach to training, giving the GB basics and building upon the basics in 2-3 weeks to achieve BB. Some providers retrain all DMAIC framework again in BB, even if you have GB cert. (I generally recommend belts to go straight to BB, rather than GB.)

ii.      Prices range $6000-$17000 depending on quality. (some train only to pass exam, which is much cheaper.  Not "training" but test preparation)

iii.      Curriculum includes all the GB basics, advanced problem solving tools, deeper statistical analysis, team leadership, project management fundamentals, presentation skills, advanced Lean topics, multiple regression and Design of Experiments and optimization, non-parametric inferential statistics, data transformations.

iv.      Certification criteria vary widely, some exam based, some project based

1.      some certify via exam (given "proof" of having completed 2 projects)

2.      some certify by leading 2 projects, demonstrating usage of the tools, and generating significant financial savings (usually $100,000 per project); Sometimes this also requires a 2-year commitment before certification is awarded.

v.      BB candidates are usually coached by experienced MasterBlack Belts. Some companies implemented "Senior Black Belt" and "Black Belt Buddies" to coach new candidates.

c.       Master Black Belt

i.      Must be an experienced Black Belt plus 2-3 more weeks  training.

ii.      In addition to the cost of Black Belt training, prices range $5000-$10000 depending on quality and extent of necessary training.  Training is based often on the practical needs of the program within the sponsoring business.

iii.      Curriculum is more customized by business, but includes Train-the-trainer, advanced presentation skills, advanced design optimization and basic reliability, program and portfolio management, advanced leadership.

iv.      Certification criteria vary widely, some exam based, some project based

1.      There are some institutions who now offer MBB cert "by test," but only after you've submitted a portfolio for review, demonstrated you've been working as an MBB, and then paying $2500+ to take the exam.

2.      Black Belt Cert + Completion of larger organizational projects + delivery of training + MBB training completion + published contribution to BoK

v.      MBB candidates are usually coached by senior executives and top-level program leaders. 

III      Trending over time

a.       Salaries show an increasing trend between 2000 and 2016.  

b.      Green Belt salaries rose from $65k to about $93k, while non-certified respondents' salaries rose from $58k to only $82k. 

i.      Unfortunately, these salary trends are misleading.  The survey providers do not account for changes in the cost of living.  The fact that all salaries are on the rise is an indicator that year-to-year, costs are changing. The only clear distinction from these graphs is that GB certs generally earn between $5k- $10k more than non-certified respondents, and the GB salary trend seems to rise faster than non-certified respondents, increasing the gap.

ii.      A full salary trend analysis is available for purchase. It provides a deeper comparison for all belt salary trends and adjusts to annual changes in cost-of-living

IV      I once thought I was climbing up, but sometimes I was sliding back: Looking at my salary history, I gave myself a great pat on the back for having increased my pay by 5.7X. But then when I adjusted for cost of living changes over the same time frame, I learned it was 4.3X, and sometimes, when I thought I was gaining money, I was actually losing money. I then overlaid my career timeline on top of my salary trends for some pattern analysis (shown in image)

a.       Insights

i.      Based on my certifications, there is a lag of a couple years before the cert seems to pay dividends, with the exception of Black Belt. That paid off very quickly, but mostly due to changing companies

ii.      Steepest career climbs happened between companies, not within.

iii.      Staying within a company showed a stagnation in pay rise, and even dipped downward, partly due to stagnation, and partly due to the economy

iv.      The steepest & longest climbs were the result of my Black Belt and Master Black Belt certifications and experience

v.      Higher level degrees (after bachelors) ISO auditor certificate did not seem to contribute to pay rise

b.      What if I stayed? Theoretical brain exercise.  How does the "job hopping" 2-5 years compare to staying in the same place? - If I just stuck with the same company, took the standard 2.5% annual raises, and got promoted every 4 years with a 10% bump, (which seems standard), where would I be?

i.      The upside of leaving:

1.      My actual salary rise (4.3X) is much greater than my theoretical salary would be- only 1.7X my 2002 starting salary, a very slow and steady climb,  (adjusted for cost of living)

2.      Greater variety of experiences and challenges

3.      Broader network

ii.      The downside of leaving:

1.      Leaving friends behind and starting all over again

a.       FOMO

2.      "Grass is greener" complex (wanting to go back)

3.      Tough to keep the resume brief

4.      Looking like a "job hopper" to employers

Outro: Thanks for listening to episode 176 of the E6S-Methods podcast.  "Don't forget to click "like" or "dislike" for this episode in the show notes. Tap-click-done!  If you have a question, comment or advice, leave a note in the comments section or contact us directly. Feel free to email me "Aaron," aaron@e6s-methods.com, or on our website, we reply to all messages.  If you heard something you like, then share us with a friend or leave a review.  Didn't like what you heard? Join our LinkedIn Group, and tell us why.  Don't forget you can find notes and graphics for all shows and more at www.E6S-Methods.com. "Journey Through Success. If you're not climbing up, you're falling down."    Leave a Review! http://bit.ly/E6S-iTunes


Like / Dislike  **We'd Appreciate Your Opinion**