2012 Compensation Surveys - Open for Participation

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Our 2012 Executive, Salary, & Wage Surveys are open for participation. These surveys collect compensation data on over 400 executive, director-level, administrative, professional, managerial, and hourly positions.

2012 ERC Salary Survey

This survey collects annual salary information from Northeast Ohio organizations for 279 administrative, professional, supervisory, and managerial positions in accounting, finance, administration, customer service, sales, engineering, human resources, IT, maintenance, marketing, production, purchasing/distribution, safety, science, and research and development functions. Salary data will be reported by number of employees, industry type, annual revenue, county, for-profit or non-profit status, and years of experience (including new hires) when the results are published in May.

To participate, visit http://www.yourerc.com/survey-data/participate/ and register as a first time user.

2012 ERC Wage Survey

This survey collects hourly pay information from Northeast Ohio organizations for 109 production, maintenance, warehouse, distribution, and transportation positions. Wage data will be reported by number of employees, industry type, annual revenue, county, union affiliation, and years of experience (including new hires) when the results are published in May.

To participate, visit http://www.yourerc.com/survey-data/participate/ and register as a first time user.

2012 EAA National Executive Compensation Survey

This survey collects salary, bonus/incentive, benefits, and perquisite information for 47 executive and director-level positions in general, finance, HR, engineering, sales/marketing, international, and non-profit functions as well as Board of Directors pay. Data will be reported by industry, organizational size, location (including Northeast Ohio), and sales volume when the results are published in June.

To participate, contact surveys@yourerc.com for a survey link to participate.

Members that participate in these surveys will receive the results for no cost when they are published in May/June of 2012. Non-members that participate in these surveys will receive the results at a discount.

Northeast Ohio Employers Report Higher Pay for Customer Service Jobs

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According to the 2010-2011 EAA National Sales Compensation & Practices Survey, Northeast Ohio employers report higher median total compensation than employers across the U.S. for nearly all customer service positions surveyed.

Customer Service Managers and Supervisors, in particular, showed the largest differences in total compensation when compared nationally.

 

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8 Steps in a Compensation Project

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8 Steps in a Compensation Project

Compensation initiatives are often on many employers’ agendas, so we’ve summarized eight (8) steps in a basic compensation project.

1. Participate in or purchase salary and wage surveys.

It all starts with having pay data, which is the basis for all compensation systems and projects. Compensation surveys contain information on competitive wages and salaries for various jobs and report data regarding what other employers pay for given positions. Participating in these surveys (which generally requires reporting your employees’ salary and wage information) typically helps organizations save money on receiving the data. 

A good rule of thumb is obtaining at least three survey or compensation data sources. Local resources are ideal, especially if your organization recruits locally.

For example, ERC’s Salary Survey and Wage Survey are a common resource used by many Northeast Ohio employers to benchmark local pay rates.

2. Identify matches for your organization’s jobs.

Once you obtain salary survey information, the next step is identifying the positions in the surveys that match the jobs in your organization. This is generally not done by job title alone.

Instead, employers look for jobs with position descriptions that match at least 70% of the duties summarized.

For some unique positions, it may be difficult to find an exact match. In these cases, organizations typically blend or weight salary data from multiple jobs to create a salary figure that best represents the job.

3. Select and gather data.

After your organization has selected the positions that match, you’ll need to determine what percentile or metric from the survey you would like to use to compare your jobs.

Organizations commonly select this based on their pay philosophy for different positions. Employers may wish to pay some positions above market rates (percentiles above the median) because talent is scarce or the job is critical to their organization’s strategy or mission.

Other positions may be paid below market rates (percentiles below the median) if they lack importance or are easily recruited. The widespread majority of organizations aim to pay most of their employees at market (the median). You can also use the average; however, the median is less susceptible to higher or lower values, and therefore more reliable.

4. Analyze the data.

In order to analyze the salary information, organizations should age the data to a common point in time by an aging factor—such as an average yearly increase (obtained in a compensation survey).  After aging the data, the percentile information gathered from each of the survey sources can be weighted based on factors such as industry data, local or national information, quality of survey, and strength of job match.

Typically, a weighted average is calculated based on these weightings of the survey sources and the percentile information.

This weighted average is usually referred to as the “market average.” Although, there are certainly other metrics of market competitiveness your organization could use.

5. Calculate a market average.

For each job you are analyzing, it’s important to determine where the job stands relative to the market. This is easily done by dividing what your organization currently pays for the position (the current salary or wage) by the market average.

Figures over 1.0 indicate that the job is paid more than the market average; while figures below 1.0 show that the job is paid less than the market average.

While other metrics exist, this tends to be the easiest to calculate for employers.

6. Create a pay structure.

 

7. Address inconsistencies.

After your organization has collected and analyzed the market data and/or developed any pay structures it deems important to its compensation administration, the next step is to address differences or inconsistencies, particularly in terms of differences in market averages/midpoints and rates your organization is paying for positions and external market rates.

These questions often involve considering organizational culture, structure, what it can afford to pay, and what it wants to pay for certain positions.

8. Make adjustment decisions.

After these questions are addressed, your organization will need to determine whether it wants to adjust salaries and wages to be more in line with the market (if differences exist). These are typically termed “market adjustments.”

Other pay adjustments your organization may provide include cost-of-living or across the board adjustments (the same adjustment being provided to all employees), or merit increases, which are commonly based on performance achieved and varied in terms of amount received (typically a percentage of base salary).

There’s no question that compensation initiatives can be challenging projects and typically include more complexity and analysis than these eight steps suggest. Keep in mind that ERC has many resources, including valid local and national pay data and experienced guidance, available to help you in navigating these projects with ease and success.

ERC offers compensation and benefits consulting services including market pricing, total rewards strategy, and more.

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