2023 AWWA survey: Water utility compensation increases higher than projected

The North American water sector is experiencing higher-than-projected increases in compensation across all sizes of utilities, according to a 2023 survey presented by the American Water Works Association (AWWA).

AWWA’s Water and Wastewater Utility Compensation Survey showed that from 2022 to 2023, utilities’ salaries increased by these percentages:

• 6.7% for large utilities (100,000 or more customers)
• 3.9% for medium-sized utilities (10,000 – 99,999 customers)
• 7.9% for small utilities (under 10,000 customers)

Reports based on results from the 26th annual survey are available for purchase, customized for large, medium-sized and small utilities. The reports include information about salaries, salary ranges and compensation practices in the water and wastewater utility industry.

Of the 509 organizations that responded to a question about overall staffing levels, 62.3% said they maintained consistent staffing levels, and 37.7% said they increased staffing levels (full- and part-time) in the past 12 months. Additionally, 1.6% implemented a reduction in force and 6.5% modified work schedules and/or expectations (including furloughs).

The survey, administered by Newport Group, was compiled from 580 utility participants supplying data for about 30,000 employees as of February 2023. 

Other highlights from the 2023 survey include:

• Workplace flexibility: 18.8% of respondents said they implemented or are planning to implement changes to work flexibility for employees.
• Healthcare plans: 26.7% of respondents indicated they changed or are considering changing healthcare plans.
• Projected average 2024 salary increases: Looking ahead to next year, projections for salary increases average around 4% for executives, 4.02% for managers, 3.98% for supervisors and 3.93% for staff.

Based on the average of management, supervisory, and staff-level positions from the 2023 AWWA Water and Wastewater Utility Compensation Survey results, the overall annual salary increase was 4.5% (see chart at left). In comparison, the annual salary increase for other industries, based on data reported in the 2022-2023 WorldatWork Salary Budget Survey, grew by 4.0%.