Transcript HRA-NCA Presents: 2006-07 Annual Meeting with Officer

HRA-NCA
Compensation 2009
September 2, 2009 • Washington, DC
1
Compensation 2009
Welcome
Cynthia Ward
President, HRA-NCA
2
HRA-NCA Survey History
3
• Mission of HRA-NCA
– To promote the exchange of ideas and practices
and the development of mutual assistance among
Human Resource professionals
• 30th Edition of HRA-NCA Compensation Survey
• Government Contractors Survey – Partnership with
Professional Services Council (PSC)
• Benefits Survey - Partnership with WACABA and
WEB
JOIN HRA-NCA!
Our Members receive discounts on
HRA-NCA survey products.
www.hra-nca.org
4
2009 Compensation Survey
Cara Carter
Compensation Survey Chair, HRA-NCA
Compensation Manager, BAE Systems
5
Agenda
•
2009 Benefits Survey
– George Lane, Principal, Mercer Company
Chair of Benefits Survey
•
2009 Compensation Highlights
– Mike Kostrzewa, PhD, HR Director, YRCI
•
Trends in Policies & Practices
– Suzanne Goulden, Senior Manager, Compensation and Benefits,
American Society of Clinical Oncology
•
Government Contractor Compensation Highlights
– Alan Chvotkin, Executive Vice President & Counsel,
Professional Services Council
•
Online Survey Query Tool
– Angelo Kostopoulos, AKRON, Inc.
6
•
Questions and Answers
Compensation Committee Members
•
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7
Jesse Cantrill, Cantrill & Moyer
Cara Carter, Committee Chair, BAE Systems
Alan Chvotkin, Professional Services Council
Suzanne Goulden, American Society of Clinical Oncology
Erika Johnson, Watson Wyatt Worldwide
Michael Kostrzewa, PhD, YRCI
Anna Liu, Navy Federal Credit Union
Sonya Ousley Lee, SES-Americom
Dave Sturtevant, AKRON Team
Angelo Kostopoulos, AKRON Team
2009 Benefits Survey
George Lane
HRA-NCA Chair of Benefits Survey
Principal, Mercer
8
The Benefits Survey Overview
• 265 respondents (63% repeat participation)
• Includes:
– Health (medical, dental, vision, CDH)
– Welfare (FSA, life insurance, disability insurance)
– Work-Life – (leave, tuition assistance,
telecommuting, work environment, health and
wellness)
– Retirement – (defined contribution, defined benefit)
• Survey Results available at:
http://survey.akroninc.net/hrancaportal
9
Fringe Rates
10
Medical – Plan Financials
What was the FINAL percentage change in your 2009 plan costs?
Weighted average of
percent change in plan
rates (increases,
decreases, and no
change), weighted by
number of employees
was 4.9%
11
Medical – Plan Financials
Which of the following actions did you take in response to 2009 plan rate changes?
Kept same percentage and shared the increase/decrease proportionately
with employees (family coverage)
49%
Kept same percentage and shared the increase/decrease proportionately
with employees (single coverage)
48%
37%
Reviewed the marketplace for more competitively priced medical plans
Increased the percentage of the premium EMPLOYEES were asked to pay,
but DID NOT pass on the entire increase to the employee (family coverage)
28%
Increased the percentage of the premium EMPLOYEES were asked to pay,
but DID NOT pass on the entire increase to the employee (single coverage)
26%
23%
Raised co-payments
20%
Raised deductibles
Worked with a wellness vendor to facilitate on-site health
assessments/screenings
14%
Added or increased deductibles for Rx
13%
Evaluated other funding mechanisms
12
10%
0%
10%
20%
30%
40%
50%
60%
Work Life Benefits - PTO
Percent of Employers who have a PTO Policy
50%
40%
37%
35%
2006
2007
42%
43%
2008
2009
30%
20%
10%
0%
13
Work Life Benefits - PTO
What types of leave are replaced by PTO?
14
15
2009 Compensation Survey
Survey Highlights from Job Data
Mike Kostrzewa, PhD
YRCI
16
Topics
• Participants
• Several Year-to-Year Comparisons
• Senior HR Jobs
• Job Families
• Individual Jobs
• New Hire Rates
• Variable Pay
17
Participants - 2009
• 324 Participants
• Representing 349,936 employees
• Provided data on 77,752 Incumbents
• Across 337 jobs
• 69% Repeat participants
• Average EEs – 1068, Median EEs – 210
18
Participants - 2009
Telecom
&
Network
Svc.
2%
Tech & Science
16%
All Others
6%
Employers by Industry
Assoc.
14%
Educ.
4%
Publ. and
Broadcasting
3%
Prof. Services
17%
Non Profit
17%
19
Fin. Services
7%
Local Govt
4%
Health
6%
Hospitality
Manuf. & Constr. &Transp.
2%
2%
Participants - 2009
Incumbents by Industry
Telecom &
Network Svc.
1%
All Others
7%
Assoc.
4%
Educ.
14%
Tech &
Science
15%
Publ. and
Broadcasting
1%
Prof. Services
11%
Non Profit
5%
Manuf. &
Constr.
1%
20
Hospitality
&Transp.
2%
Fin. Services
12%
Health
17%
Local Govt
10%
Year-to-Year Comparisons
• Survey includes 3 types of year-to-year
comparisons:
• Pay increase budgets
• Actual pay increase to employees
• Year-to-year change to average and
median of each job
21
Representative HR Positions-Repeat
Chief Human Resources
Officer
2006
2007
2008
2009
$136K
$135K
$161K
$175K
-1%
+20%
+9%
$107K
$120K
$130K
1%
+13%
+8%
$106
$129K
$131K
0%
+22%
+1%
% Change
Human Resources
Director
$106K
% Change
Compensation & Benefits
Director
22
% Change
$106
Change in Median by Job Family-Repeat
Incumbent-weighted average of the median change increased by 3.5%
Job Family
Banking
Legal
Warehousing & Manufacturing
Building & Facilities Management
Program/Project Management
Computer Operations & Networks
23
Software & Systems Development
# Jobs
Average
Incumbents/Job
% Change
10
169
24.6%
9
112
12.5%
15
71
11.1%
14
316
8.3%
14
181
5.1%
17
147
5.1%
13
190
4.2%
Change in Median by Job Family-Repeat
Job Family
Information Technology
Media & Communications
Secretarial & Clerical
Human Resources
Executive
Accounting, Finance, & Purchasing
Engineering & Field Services
24
Customer Service & Product Support
# Jobs
Average
Incumbents/Job
% Change
18
193
3.6%
18
82
2.9%
11
778
2.8%
20
61
2.5%
9
54
2.3%
32
125
1.7%
20
139
1.7%
10
67
0.3%
Percentage of Jobs Reporting Median
Increases & Decreases
20042005
20052006
20062007
20072008
20082009
Increased
69%
75%
66%
67%
72%
No Change
6%
6%
6%
6%
6%
Decreased
25%
19%
28%
27%
22%
-
80%
72%
76%
75%
Within
+/- 10%
25
Changes in Median – Widely Held Jobs
Job Family
EEs
% Change
in Median
Repeat EEs
% Change
(repeat)
Database Administrator
269
4.5%
131
9.7%
Marketing Manager
167
6.8%
66
6.7%
PC/Network Support Specialist
766
5.1%
490
6.0%
Receptionist
293
10.1%
203
5.5%
Accounting Manager
327
7.5%
172
3.6%
Graphics Designer
251
5.3%
156
3.4%
Building and Facilities Manager
134
1.5%
79
2.4%
Executive Assistant/Secretary
1012
0.9%
743
2.1%
213
1.8%
152
1.0%
26
Professional/Technical Recruiter
New Hire Rates
Job #
Job
Total
Survey ERs
ERs
Reporting
New Hire
Rates
New Hire
ERs as %
of all ERs
New
Hire as
% of
Median
New
Hire as
% of
Avg.
121
Analyst/Developer II
61
10
16%
119%
102%
230
Contracts Administrator
74
9
12%
116%
107%
212
Accountant III
100
14
14%
111%
99%
630
Public Relations Representative
62
9
15%
108%
103%
1601
Program/Project Manager
Senior PC/Network Support
Specialist
107
12
11%
106%
96%
97
12
12%
106%
96%
151
27
Short Term Incentive
STI was reported on 305 of 337 positions (91%)
Highest Targets
% Target of
Base
% Actual
Senior Inside Sales Representative-Telemarketer
42%
54%
Chief Executive Officer (CEO)
32%
42%
Sales Manager
29%
42%
Director of Sales
27%
25%
General Counsel
26%
25%
Business Development Manager
24%
37%
Account Executive
22%
83%
Senior Inside Sales Representative-Telemarketer
42%
54%
Sales Manager
29%
42%
Highest Actual Percentage of Base Pay
28
2009 Compensation Survey
Compensation Policies and Practices
Suzanne Goulden
American Society of Clinical Oncology
29
Compensation Policies and Practices
Surveyed in 2009
Pay Increase Budgets
Referral Bonuses
Hours Worked/Overtime
Pay Increase Practices
Signing Bonuses
Compensation Philosophy
Non-Cash Performance
Awards
Retention and
Completion Bonuses
Job Evaluation
Incentive Cash
Compensation
Employee Turnover
Salary Structure
Shift Differentials
Severance Pay
Organization of the
Compensation Function
On-Call/Standby Pay
30
Practices
Security Clearance
Performance Management
Budgeted Pay: Average Pay Increase Budgets are significantly lower
for all employee groups in 2009
31
What was the actual average pay increase last year?
32
Signing Bonus
• Drop in use as seen in previous survey
• Amounts have remained relatively consistent with prior years
2004
2005
2006
2007
2008
27%
26%
29%
41%
34%
$3,599
$4,843
$4,185
$4,092
$4,332
Typical % of
Base pay
5.0%
6.0%
5.0%
5.5%
5.5%
Pay 100%
After months
3
3
2
1
1
% Employers
Offering
Average
Bonus
33
Severance Pay
% Employers
Offering to All
Employees
Maximum
Weeks of
Payout
34
2005
2006
2007
2008
2009
67%
65%
65%
65%
65%
25
22
23
19
19
Hours Worked and Overtime
2009
35
% Employers paying overtime ONLY after 40 hrs
per week
81%
% Paying overtime for hours worked only (e.g.
excluding holidays, PTO, other)
78%
% Paying a premium to exempt employees for
hours over standard hours
13%
Salary Structure
2009
% Employers with formal salary structure
73%
Methods used
Salary Grades
57%
Broadbands
16%
Market Ranges
25%
Other
Typical salary spread
36
2%
50%
The Compensation Function
2009
Organizational Structure
Formal compensation department
18%
HR function integrates compensation dept.
65%
Finance function integrates compensation dept.
We do not have a formal HR department
Average number of compensation professionals
37
Average number of employees per comp.
professional
7%
11%
3
335
Target Compensation Philosophy
2009
38
Organization has a compensation philosophy
58%
Average and median target percentile
65%
% of employers targeting the 50th percentile
45%
% of employers targeting the 75th percentile
7%
% of employers targeting a different percentile
6%
Performance Management
2009
% Employers using performance evaluation form
94%
% Employers using same form across all employee
levels
47%
% Employers using performance rating
87%
Number of levels used in rating system
39
4 levels or fewer
34%
5 levels
59%
6 or more levels
7%
2009 Government Contractors
Compensation Survey
Alan Chvotkin
Executive Vice President & Counsel
Professional Services Council
40
Overview
• Definition: 50% or more of firm’s revenue
derived from government contracts
• 101 organizations reported
• 302 jobs reported
• 27,323 employee salaries reported
• Voluntary responses, but best that exists
• Aggregated trends; year-over-year
comparisons
41
Survey Trends
2008-2009 Year-over-year changes in median pay
6%
5.3%
5%
4%
3.4%
3.3%
3%
2%
1%
0%
All Survey Employees Federal Government
Pay
42
Government
Contractor Pay
Survey Trends
2008-2009 Year-over-year changes in median
• 62 jobs declined in pay, 185 went up (+/- more than 0.5%)
• 4.4% overall pay differential for government contractor
employees ABOVE federal employees (vs. 6.3% in prior survey)
• 3.0% if we exclude “Executive” pay (vs. 4.9% in prior survey)
• Government Contractor “Executive” pay levels on average 54%
higher than federal employee counterparts
43
Security Clearance Policies
• Surveyed at the organizational level
• 51% provide additional compensation to cleared
personnel
• 3% - 13% average differential in base pay
reported through all clearance levels (Secret
through TS/Poly), in Policies and Practices section.
44
Survey Trends - Security Clearance
Clearance Level
45
Jobs
Compared
Median &
Average
Premiums
Incumbent
Weighted
Premium
Secret
41
2-3%
4-6%
Top Secret
26
9-11%
10-14%
Top Secret SAP
25
7-9%
7-8%
Survey Trends - Security Clearance
• Further analysis shows that some jobs with security
clearances consistently have higher pay rates than
others, when looking at a number of parameters:
–
–
–
–
Number of respondents
Number of employees
Level of clearance
Type and level of job
• Trends – Higher pay is evident in:
– Highest levels in job family (Senior-level jobs)
– Highest security levels (TS vs. Secret)
46
Top Jobs – Top Secret/SAP
Job
47
Premium
Systems/Electronics Engineer V
14.9%
Software Developer V
13.4%
Senior Telecom/Network Hardware Engineer
11.2%
Telecom/Network Hardware Engineer
10.8%
Systems/Electronics Engineer IV
9.9%
Systems/Electronics Engineer III
9.1%
Systems/Electronics Engineer VI
9.0%
Network Analyst III
6.2%
Top Jobs – Top Secret
Job
48
Premium
Systems/Electronics Engineer II
26.3%
Systems/Electronics Engineer VI
22.1%
Systems/Electronics Engineer III
21.0%
Chief Marketing Officer (CMO)
18.8%
Systems/Electronics Engineer IV
14.5%
Contracts Director
14.2%
Program/Project Senior Director
11.8%
Senior Computer System Administrator
11.0%
2009 Compensation Survey
Online Query Tool
Angelo Kostopoulos
AKRON, Inc.
49
50
Cynthia Ward
Vice President Market Services
Lee Hecht Harrison
[email protected]
(202) 942-0431
Cara Carter
Compensation Manager
BAE Systems
[email protected]
703-668-4361
George Lane
Principal
Mercer
[email protected]
(202) 263-7847
Suzanne Goulden
Senior Manager, Compensation and Benefits
American Society of Clinical Oncology
[email protected]
(571) 483-1464
Alan Chvotkin, Esq.
Executive Vice President and Counsel
Professional Services Council
[email protected]
www.pscouncil.org
(703) 875-8059
Mike Kostrzewa, Ph.D.
Director, Human Resources
YRCI
[email protected]
(703) 995-9615
Angelo Kostopoulos
AKRON, Inc.
[email protected]
(202) 745-0400