Why Nigerians engineers are underpaid by Isqil Najim

There have been discontents within the engineering community over wages disparity compared to other professionals. The younger generation of Engineers are especially more vociferous and often cited the lifestyles of management and medical personnel and legal professionals to back their claims.

The argument is often that since the engineers spent years in schools (and additional mandatory postgraduate training years) under rigorous environment before they become professionals, they should be automatically rewarded in financial remuneration when employed. From civil services to consulting, construction and telecom et al: the story is the same. Engineers feel less appreciated by the system they are serving. The only section that appear to be faring better are the oil and gas, telecom and perhaps the aviation which place high premium on remuneration in order to retain talents.  

What are the factors that contributed into this situation? Surely, it is hard to blame one single factor or pile all the blame the doorstep of one single person or body. There are cumulative elements which conspired together to push the engineers in Nigerian into this state.

Below are some of the reasons.

DEMAND AND SUPPLY: 

In today's Nigeria, there is oversupply of engineering personnel into an unavailable and shrinking labour market. The universities and polytechnics combined have been producing graduates who are mostly competing for dwindling jobs. To make matter worse, the system is not actively promoting engineering entrepreneurship. At least not supporting it in the way it deserves (I will write separately on this topic later). 

Due to this imbalance between demand and supply forces, many engineering employers "over-employed" staff into their companies and hence take delight in fixing their staff salary below the expected standard to balance book. Knowing full well that there are thousands waiting in the wing who are ready to accept lower salary for the same job, the employers hold the ace. 

ECONOMIC DOWNTURN AFFECTING ENGINEERING INDUSTRIES 

It is disturbing to note that Nigerian Engineering industry is actually shrinking compared to its capability and the opportunities abounding in the land. With massively inadequate infrastructures, acute power supply as well as high demand for technology products and services, one expects that Nigerian engineers should be among the most fortunate as these problems should open up opportunities for them to create jobs as they deploy their skills into tackling society's problems, thereby empowering themselves and the rest of the population. Alas the opposite is what obtained. Our engineering capabilities are grossly under utilised.

As the economy bit harder, you read of construction firms shutting down or recording financial losses. You see manufacturing firms downsizing and then you see some engineers going into financial sector to work as marketers and teller. Most of the companies are just barely surviving. Take the Brewery industry as an exception.

NIGERIANS’ LOVE FOR FOREIGN MADE GOODS AND SERVICES

Ironically, our general consumption pattern continues to rise. And this gap is merrily filled by our obsession for foreign goods. It is so unthinkably absurd to an extent that Nigeria burns the woods and import toothpicks! This is a self inflicted problem that gradually, transforms the country into a consuming nation. A dumping ground of all sort of foreign goods.

The few operating industries are increasingly subject to the competition with foreign made products which are generally cheaper. Suffice to say that our penchant for consumption of foreign made goods and patronizing of foreign services conspired with our poor infrastructures, to reduce many of our productive engineering activities. The bulk of engineering activities are restricted to services, consulting, power, manufacturing, maintenance and repairs, most of which can equally be handled by well trained technicians. The employers, therefore, have no qualm in employing technicians to handle some of these jobs at lower salaries. And where engineers are called upon, it always a "take it or leave" attitude. 

ENGINEERS SHORTCHANGING THEMSELVES

Due to high rate of unemployment in the country and a few industrial concerns to absorb the surplus engineers,  many engineering personnel, especially desperate younger ones, have been known to shortchange themselves and devalue their professional services in a bit to outsmart their colleagues (and competitors) to secure the available job. They reason that once they get the experience or a "better place",  They will exit the company. Some even rationalise that "half bread is better than none”; while some think when they secure the job the employer would see their values and increase the salary.

Sometimes the latter category was right. Most employers don't want to gamble on young engineers by signing big employment contract with them only to find out they are not worth it. Smart companies however recognise the indispensable staff and tie them down to the job by improving the employee's remuneration after passing the probation period. This is not obtainable in every company and there is no way in knowing unless the employer hinted so in advance. Evidently, it is a gamble.

In the long run, the repeatedly sustained culture of lower wages soon becomes the "normal".  Some firms would even want to reduce it further if they observe that there are other engineers who can take less or the company is not achieving its financial targets.

SOME ENGINEERS NOT RESPECTING THEIR OWN PROFESSION

It is a known fact that a couple of engineers in entrepreneurship underpay their engineering staff while overpaying non engineering staff working on engineering projects. Whatever would make, for instance, a janitor or bookkeeper earn more than an engineer working on a site in the an engineering company, no matter his qualifications is a baffling professional judgment.

If we undervalued ourselves we cannot expect outsiders to fare better. There is nothing more injurious to a child than for his own father to publicly label him as "unworthy" and back it up with action by treating him in front of neighbours in unworthy manners. . Such a father would lose moral respect if he tells outsiders to respect his child. It cannot work that way. Charity has to begin from home. When Engineering entrepreneurs start placing high values on their engineering staff, other non engineering entrepreneurs including government would take note and follow their footstep one way or the other.

 GOVERNMENT REGULATIONS

Government does not have any special regulation on engineering salary scale. The NSE and COREN have however commenced works on this and have been talking to government over this. Until such time where engineers have minimum Salary scale, they would be subject to the whims of employers, market forces, and civil service rules.

 HND/BSC DICHOTOMY

Some Engineers, in their fight for superiority contest sometimes reason that their counterparts in technology are destined for lower paycheck. This internal superiority battle among the specialists can disrupt wages in open labour market when employers found the Technologists are as competent on the same job as the engineers. Naturally, the technologist's self interest would override any other considerations as he aims to prove himself very capable even if he has to bargain for lower paycheck. The temptation to lower his wage demand compared to his rivals to secure the dream job is always in the making. 

LOW QUALITY GRADUATES AND POOR NEGOTIATION SKILL

Graduates with marginal skill or experience or even zero experience cannot bargain their way into high wages unless they are working for multinational firms with reputation for high wages. Employers that want to make good use of the engineering skills of their employee do not pay employee to learn. They do not pay employee huge wage bills to sit back and acquire experience. They pay for potential benefits the employee would bring to the table. They pay for talents that can be developed to serve the company's interest. It is therefore not surprising that companies pay less to engineers who they want to train.

What even make this so is the fact that in today's competitive work environment, workers have freedom to move to new companies. I have a friend who sent his staff abroad for expensive trainings and once the training was over, the lads simply absconded and joined rival firm for higher wage. It is therefore not surprising that many companies, having repeatedly lose the staff they trained to their competitors; decided to underpay to staff that is learning on the job. The staff would earn his raise along the line. 

On the other hand, many skilled engineers are dictating their own wages having proven to the employer they are more than capable. The other side of this is poor negotiating skills. You can read here about negotiating skills for engineers.

COMPANY FINANCIAL HEALTH AND NATURE OF ENGINEERING PRODUCTS AND SERVICES

Engineers who work at a company that is not financially sound should not expect to be paid like they are working for Google or Apple. They should be realistic when going into such companies, as companies, especially those in private sector pay according to their financial health and the expected productivity output.

Another is the nature of engineering products itself. Many of the engineering services and products are one time purchase.  While some last many years before replacement. We have more looters needing protection of law and more criminals paying to get off the penalty of law. And humans don't joke with their health. Not even the engineers.

The amount of wages and reward received from some company is only in proportion to their ability to generate residual income. You cannot expect a company to pay you money they don't earn just because your expertise was acquired over the period of 9 years of training.

I believe there are other reasons why companies pay less and some pay higher. Young Engineers should get themselves informed when making choice of where to work. They should know where to vent their anger when it heat up.

All things being equal, the collective success of engineering depends on our unity as professionals.