More Northeast Ohio Employers Projecting Salary Increases for 2012

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Data from the 2012 ERC Pay Adjustment & Incentive Practices Survey indicates that the increases being projected by Northeast Ohio employers are representative of a larger national trend of compensation practices. Of the 114 participating organizations, 89% are projecting salary and wage increases for 2012, a record high level since 2009 when only 45% of survey participants projected increases. This improvement falls just short of improvements found in national data reported by SHRM in an article from 2011.
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Northeast Ohio CEO’s Total Compensation Among Top In Nation

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According to the results of the 2012 National Executive Compensation Survey, CEOs here in Northeast Ohio receive the fourth highest total compensation package as compared to 20 other geographic regions reported in the survey. Coming in at $308,500, Northeast Ohio CEOs rounds out a strong showing for the Midwest, with the Columbus/Cincinnati breakout and Detroit Metro area in the first and third spots respectively in terms of total compensation for CEOs in their regions.

Base salary accounts for approximately 75% of the total compensation package in Northeast Ohio, a rate which suggests that area CEO’s receive a larger portion of their compensation in the form of variable pay than in the vast majority of other regions reported in the national sample. By focusing on variable pay, such as bonuses and other short term incentives, employers are able to more closely tie executive pay to performance. Establishing a clear connection between the value a CEO adds to the company and the compensation they receive in return is a critical step forward and a growing trend in executive pay, both for the sake of internal equity as well as to ensure compliance with external regulations.

Of the 47 executive positions survey across the national sample, increases to base pay remain stable- right at 3% for 2012. When calculated only including those organizations who projected increases, this number is a slightly higher figure, but one that continues to hover around the 4% mark for these executive type positions.

Additional Resources

2012 EAA National Executive Compensation Survey
The 2012 EAA National Executive Compensation Survey, published in May of 2012, reports compensation, benefits, and pay practice data provided by 2,235 participating organizations throughout the country and 108 organizations in Northeast Ohio for 11,948 executives in 47 positions. Breakouts of data are included across five variables: sales volume, organizational size, industry, organization type, and geographic location – including Northeast Ohio. Download the survey here.

2012 ERC Performance Management Practices Survey
This survey collects information from Northeast Ohio organizations on performance management practices in the workplace, specifically related to performance reviews, performance criteria, role of the supervisor in managing performance and other performance management issues. Click here to view the survey.

ERC Releases Wage and Salary Data for Northeast Ohio

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ERC, Northeast Ohio’s leading publisher of local workplace information and salary data, has released the results of its 2012 annual wage and salary surveys. These surveys serve as a critical compensation benchmarking resource for employers across Northeast Ohio that are looking to stay competitive in the region by attracting and retaining top talent.

The 2012 ERC Salary Survey reports annual salaries for 8,508 individual employees in 241 professional and management positions from 196 Northeast Ohio organizations. The 2012 ERC Wage Survey reports hourly pay information for 8,127 individual employees in 80 hourly production, maintenance and service positions from 149 Northeast Ohio employers.

“To effectively compete for talent, it’s important for employers to benchmark their pay rates and practices,” states ERC’s director of research and membership. “These surveys provide Northeast Ohio employers with comprehensive local data that helps inform their decisions regarding wages and salaries.”

The 2012 results suggest fairly stable pay rates overall, and continue to reflect the same stagnant growth pattern that has become the norm for the region in recent years.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results

7 Things You Might Not Know About Salary Survey Data

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7 Things You Might Not Know About Salary Survey Data

Being a well-versed salary survey user is an important part of managing employee compensation at your organization. After all, salary surveys are the leading source for setting pay rates.

What data should you use, and what data shouldn't you use? Why is some data lower and some data higher? Should you do a custom survey for better data? If you can't find a given job in a survey, is it okay to use internet or recruiting firm data? How many sources should you use? Here are the answers to these questions and more that we routinely get asked by employers—7 things you may not know about salary survey data.

1. Government data is conservative.

The Bureau of Labor Statistics is a great, reliable resource for salary benchmarking, but compensation analysts find it to be conservative when compared to other compensation data sources. This is because of the time frame in which it is captured, the types of organizations surveyed, and variables covered.

2. Custom salary surveys are less reliable.

Conducting a custom survey for a niche job is commonly believed to be more targeted and accurate than a larger salary survey, however these surveys tend to have lower sample sizes than expected and are not replicated regularly. Custom surveys can be good options for niche jobs and industries, but be aware of their limitations. They certainly aren't always the best option.

3. Internet comp data is generally invalid.

Not only are internet resources for comp data indefensible, but their sources can’t be verified. Research has found that these sources are highly inaccurate and comp experts raise serious questions about the data's validity. Be wary of any data found on the internet that does not publish participant names, demographics, effective dates of data, and sample sizes.

4. Use recruiting firm and job board data with caution.

Data published by recruiting firms and individual employee data (such as from job boards) tend to not be as reliable sources of information as others since they often report inflated pay rates. This information is not a good indicator of how much a job is actually paid.

5. Choosing the right survey makes a difference.

All compensation surveys cater to a certain audience. Make sure that audience fits your's. If a survey contains very large employers on a national scope that you don't compete with, it's probably not a good survey to choose for benchmarking. The wrong survey source can lead to higher or lower data, so always look at the participant list and demographics.

6. Salary data sources are shrinking.

The number of third-parties offering salary data is shrinking which means that employers have fewer sources to select from for their compensation data, though the strong ones still remain. As a result, it’s critically important that organizations support and participate in compensation surveys they value so that valid and reliable information continues to be available.

7. The magic number is “3.”

Ever wonder how many sources you need to make a good pay decision? Some sources say 2, some say 5. Comp experts agree that reliable pay decisions should result from 3 separate sources of salary survey information. Choose three surveys that make the most sense for your analyses.

To make good pay decisions, you need quality data and multiple sources of it. Reliable salary data is tough to come by these days, so be careful about what you use.

International Sales Managers Earn Higher Salaries in Northeast Ohio & Midwest

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According to the 2012 EAA National Sales Compensation & Practices Survey, which surveyed nearly 800 organizations throughout the United States, employers in Northeast Ohio pay International Sales Managers more than other regions of the United States. Similarly, employers in the Great Lakes region (which includes Ohio) also report paying higher compensation for International Sales Managers when compared to organizations in other regions of the United States.

Specifically the survey showed that employers in Northeast Ohio reported median total compensation of $165,000 for International Sales Managers. This median total compensation was significantly higher than the national median of $128,323.

Total Compensation for International Sales Manager

 

National

Northeast Ohio

Great Lakes Region

10th Percentile

$85,905

$103,000

$88,548

25th Percentile

$102,115

$116,780

$102,750

Median

$128,323

$165,000

$139,722

75th Percentile

$180,552

$184,868

$190,000

90th Percentile

$216,664

$199,155

$221,645

Source: 2012 EAA National Sales Compensation & Practices Survey

The data seems to suggest that employers in Northeast Ohio, as well as those in the general Great Lakes Region, pay their International Sales Managers more than employers in other regions of the U.S.

In general, international competencies are highly in-demand, and employers in our region seem to be paying a premium for global skills - at least for international sales management talent.

For more information about ERC's Surveys click here. Also, ERC members can now access international resources and pay data through our HR Help Desk. Email hrhelp@yourerc.com for more information about these new resources!

Northeast Ohio Employers Serve their Communities This Holiday

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According to the 2011 ERC Holiday Practices Survey, many Northeast Ohio employers are using the holidays as a time to give back to their communities and others in need. The survey shows that 40% of Northeast Ohio employers are coordinating community service efforts over the holidays in 2011. Community service efforts are more commonly organized in non-manufacturing and non-profit organizations as well as larger organizations, based on the survey's findings. Sixty percent of non-manufacturing organizations and employers with over 500 employees report coordinating holiday community service efforts.

The most common community service efforts in which employers report participating include Adopt-a-Family, Toys for Tots, food and gift drives, volunteering at a food bank, and monetary donations to local charities.

"Our research consistently shows that Northeast Ohio employers make an impact on their local communities through their generous fundraising efforts, charitable contributions, and active participation in volunteer efforts and community service,” says ERC's Director of Research and Membership. He adds, “Community efforts don't just positively benefit the community. They can also serve as a means of attracting employees, building teams, and adding a sense of meaning to one's work.”

Competition for Top Talent Rises; Proactive Approach is Recommended

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While unemployment across the country might be high, employers around Northeast Ohio might be surprised to learn that isn’t necessarily the case locally.

For example, the city of Mentor reported an unemployment rate of 5.8 percent for September, according to an article published in November of 2011 in The News-Herald.

“There’s a perception out there that the unemployment rate is so high,” said SueAnn Naso, President of Staffing Solutions Enterprises in Mayfield Heights. “The federal rate is what everybody hears, but when you drill down into different pockets in Northeast Ohio, we’ve got a lot of people back to work, and our rates are much better.”

For employers across the region, a lower unemployment rate means a more competitive market for top talent. Employers looking to hire the right talent for their organizations can no longer afford to sit back and wait for talent to come to them, said Dan Barnett, owner of Integrity Staffing Services in Twinsburg.

“Companies should be very proactive in planning,” Barnett said. “Most companies are reactive when it comes to hiring. Being proactive, understanding the marketplace, knowing what you’re looking for - organizations should take a look at their hourly wages and salary structures, especially in the manufacturing and distribution level with minimum wage going up at the beginning of 2012. Companies need to start reconsidering pay levels, even if they’re above  minimum wage. Otherwise, they’ll miss the opportunity to attract the top talent in the marketplace.”

For employers looking to improve their recruiting efforts, local help is available from such firms as Staffing Solutions and Integrity Staffing, which together comprise the Northeast Ohio Talent Alliance (NEOTA). Staffing Solutions primarily works with organizations to fill positions in the administrative, office, accounting, professional, and human resources sectors, while Integrity’s focus is on manufacturing , distribution and light industrial.

“Recruiting can be a very time-intensive process,” Naso said. “Many companies don’t experience a steady or constant need for recruiting – it goes up and down. Companies tend to staff internally at a certain level, but they need help when they hit those spikes. That cyclicality creates a need to have a solution. Recruiting firms are constantly recruiting because there’s always somebody who has a need. 

“We’re constantly building a database, constantly adding to the pool. That gives organizations a resource to tap into when they have those peaks.”

A local manufacturer recently found itself in that exact position. Having just ended a hiring freeze, the company didn’t have dedicated recruiting support internally and was uncertain about the number of hires it would have in 2011.

“Our client brought Staffing Solutions in to manage all their permanent hiring as an outsourced solution,” Naso said. “We ended up filling more than twice as many positions as originally estimated in half the time it would have taken them to fill the positions on their own.

“They also decided to outsource the management of their temporary staffing to us because it was becoming increasingly more challenging for one agency to fill all their needs. We’re currently managing five agencies to ensure we’re bringing the quality talent needed to meet their fluctuating temporary needs.”

Staffing Solutions and Integrity Staffing are Preferred Partners of ERC. Click here for more information about our partners. 

More Northeast Ohio Employers Planning Holiday Parties This Year

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The 2011 ERC Holiday Practices Survey, which surveyed 152 Northeast Ohio organizations, shows that more employers in Northeast Ohio (73%) are coordinating holiday parties when compared to 2009 and 2010, with most respondents budgeting the same as the preceding year.

Additionally, more organizations are having their holiday parties at an external location and are catering them this year. More employers are also providing alcohol and entertainment at their holiday parties, and inviting employees’ significant others and spouses to the events compared to the past few years.

The percentage of organizations serving alcohol at their holiday parties has significantly increased from 25% in 2009 to 40% in 2011. In this same time period, 29% more Northeast Ohio employers are having their holiday party catered, 32% more organizations plan to hold their party at an external location, and 14% more employers are inviting employees’ significant others or spouses to the parties.

Professional Services Employers Tend to Pay Higher Increases

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According to the 2011 NorthCoast 99 Winners Report, pay increases vary considerably by industry, as does the amount in which those increases are differentiated by performance.

The report shows that winners in professional services industries reported higher increases for 2010 than those in manufacturing, distribution, transportation, health care, and non-profit industries.

Specifically, winners in marketing, technology, and architectural services industries reported providing average increases of 7.8% to top performers – the highest increase reported of all of the industries. Winners in finance, legal, and management services industries also reported above average increases for top performers of 7.3%. These industries also reported higher pay increases across all of their employees as well as for average performers.

Winners in professional services industries also reported more differentiation of pay increases across performance levels. Winners in marketing, technology, and architectural services industries reported an average difference of 4% between top and average performers’ pay increases and 6% between top and bottom performers’ pay increases.

Similarly, winners in finance, legal, and management services industries reported an average difference of 3% between top and average performers’ pay increases and 6% between top and bottom performers’ pay increases. Winners in non-profit and health and human services industries reported the lowest differences in pay increases across performance levels, suggesting that they are less likely to significantly differentiate compensation increases by performance.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results

Employers Project Pay Increases of 2.8% for 2012

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The results of the ERC Wage & Salary Adjustment Survey show that Northeast Ohio employers had projected pay increases of 2.8% for 2012. The survey also reports that employers provided actual pay increases of 2.8% in 2011.

Despite no change in the projected average pay increase from 2011, the results of the survey found that more local employers were projecting wage and salary increases than in the years following 2007. Specifically, 89% of the 129 employers surveyed reported projecting pay increases to at least one employee group, up from 55% in 2009 and 82% in 2011.

More employers also projected increases of 3.0% or higher in 2012 when compared to 2011. In the survey, 57% of organizations reported projecting increases of 3.0% or higher in 2012 for clerical, technical, supervisory, management, and professional employees compared to 50% of organizations in 2011. Non-manufacturing employers, in particular, were more likely to project increases of 3.0% or higher for 2012.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results