Do Heat Treat Salaries Vary by Geographic Region?
On a regular basis we have articles from “Josh Hale” and “Jessica Maier” of “International Search Partners” about hiring practices and salaries in the North American heat treatment industry. This article entitled “Do companies pay higher salaries in coastal areas or in bigger cities like in California vs. lower cost of living areas like the Midwest?” is sure to strike a chord amongst all captive and commercial heat treaters.
Once a quarter, Managing Recruiter, Josh Hale and/or Sr. Recruiter, Jessica Maier, will address questions that come up regularly from industry professionals (email questions for future editions to [email protected]). The most common questions that come up are about salaries, so for this first article of the year, Josh addresses the question:
Do companies pay higher salaries in coastal areas or in bigger cities like in California vs. lower cost of living areas like the Midwest?
In today’s hiring landscape, the traditional approach of adjusting salaries based on geographic cost of living is shifting. At International Search Partners, where we recruit for companies in various locations across North America, we frequently encounter candidates questioning whether their location impacts their earning potential. While at face value, it may seem like this is a significant factor (and to be fair, in the past it did carry more weight), data and empirical evidence suggest that geographic salary adjustments are becoming less pronounced than one might be prone to think.
These days, companies are increasingly adopting market-based compensation strategies, paying employees based on their skills, experience, and the job’s market demand rather than the local cost of living. This shift is particularly evident in sectors where competition for top talent is fierce (like heat treating). For instance, a furnace design engineer in Iowa may earn nearly as much as one in California if their skills align with market needs.
In 2023 Glassdoor conducted a study which highlighted this trend nationwide, noting that the finance, technology, and manufacturing sectors were the most common industries to see a convergence of salary ranges regardless of geography. Additionally, the Mercer 2022 Salary Benchmarking Survey revealed that salaries for most positions vary only by 7-10% across regions. This is a stark contrast to the 20-30% regional gaps seen a decade ago and parallels empirical data from ISP’s placement history.
Of course, the rise in remote work has influenced much of this cultural shift with many companies now offering standardized pay for WFH roles, recognizing that talent is no longer confined to high-cost hubs. Some of companies in higher cost of living areas are responding to this trend by offering alternative compensation or relying on other means to attract candidates, such as extra PTO or flextime, etc.
Additionally, candidate expectations are evolving. Workers are increasingly demanding pay equity irrespective of location. Another recent report found that a whopping 62% of employees expect their salaries to remain the same if they relocate to a lower-cost area. Companies adjusting salaries downward for remote workers have faced backlash, leading many to adopt national pay bands instead of regional guidelines.
Of course, for certain industries like healthcare or retail, where services are tied to physical locations, salaries may still be more aligned with local costs. Similarly, junior or entry-level positions may experience greater regional variability.
For candidates, this evolution in salary structures means they can focus more on finding roles that align with their career goals rather than worrying about geographic pay disparities. For employers, this trend underscores the importance of staying competitive by offering equitable compensation that attracts top talent—regardless of location.
The key takeaway? The job market is leveling the playing field, proving that location matters less than ever for many skilled roles, and the simple fact is that where one lives is going to have much less to do with their income than their job function, skill, and experience.
Josh Hale has collaborated with companies to identify, engage, and hire top performers as a professional “headhunter” where he’s focused exclusively on the heat treat industry as part of International Search Partners since acquiring the firm in 2015. He works closely with Jessica Maier to support the practice, and, together, they’ve helped nearly a hundred companies and almost a thousand candidates find the right match within the industry, including for roles such as engineering, sales, quality, metallurgy, management, and more. For additional information on recruiting or job search services, please email [email protected] or call 619-465-9621.
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