2006 Wage and Benefit Survey results

Job flexibility, creative compensation options and higher pay for local information technology jobs were among the findings of the 2006 Greater Livingston County Salary, Wage and Benefits Survey released in August. The results were summarized by Sal LoCicero of the American Society of Employers at a presentation at the Howell Area Chamber of Commerce Foundation.

This year, 42 companies returned completed surveys with data on wages, benefits and policy practices. Of those, 31 companies represented manufacturing industries and 11 were in the service sector.

This survey, which is the eighth survey conducted during the past 16 years by the Howell Area Chamber of Commerce Foundation, is a cooperative effort of the Foundation, the Economic Development Council of Livingston County and Michigan Works! Livingston Service Center.

The survey is compiled and processed by the American Society of Employers.

“The survey provides local employers with a powerful tool to use in recruiting, retaining and training employees,” said Pat Convery, president of the chamber. “It offers human resource directors, managers, small business owners and even employees an opportunity to see how they measure up compared to other similar companies in compensation and benefits.”

At the presentation, LoCicero was able to compare some Livingston County data with that of southeast Michigan.

Overall, Livingston County experienced merit increases of 3.58 percent for hourly workers and 3.9 percent for salaried employees, which is a bit higher than southeast Michigan. While straight salary increases may have been modest, one trend noted was the move toward comp time, job flexibility, telecommuting or bonuses in lieu of traditional raises.

Salary trends by position in Livingston County indicate that those in information technology positions earn a higher wage in the county than in the rest of southeast Michigan. For both network administrator and computer technician jobs, salaries were reported approximately $8,000 to $10,000, respectively, more than their regional counterparts.

One area with less positive statistics is the county’s turnover rates, which have risen to 15.7 percent in 2006, up from 10.1 percent in 2004.

“This is pain shared equally between blue and white collar workers in Livingston County,” said LoCicero. LoCicero also noted that a recent survey indicated the cost to replace a nonmanagerial employee is upward of $150,000 and $200,000 for those at the manager level, when taking into account lost productivity, training time and time spent by others replacing the employee.

The survey also contains timely information on health care benefits and gives an indication of changes taking place with benefits and some of the trends seen in the workplace.

Of survey respondents, 93 percent offer prescription drug insurance to their employee. With the cost of prescription drugs up 50 percent, more than doubling from 10 years ago, the cost and coverage of health insurance is an area of concern for many employees and employers alike.

Further health care related results indicate that the percent of companies offering dental and vision coverage has increased in the last two years. And, overall, there are more companies offering wellness plans to employees. According to LoCicero, this is in recognition of the value of preventive care and that such plans could reduce catastrophic costs later.

Other survey highlights include 100 job classifications with wage specific information, data on common policies and benefits, training and recruitment information, separate breakouts for auto suppliers and non-auto suppliers and variable compensation data.

The complete survey results book, with over 100 pages of information, was made available free of charge to those companies that participated. Non-participants may purchase the survey for $175. Complete survey results may be purchased by calling the chamber at (517) 546-3920.

2006 Livingston County Salary, Wage and Benefits Survey Briefing

·        Livingston County has experienced overall base pay increases of 6.07 percent from 2004 to 2006.

·        The number of companies offering vision coverage increased in the past two years from 51 to 59 percent.

·        Of the companies that offer a 401(k) plan or equivalent, 80 percent match salary reduction contribution.

·        Companies offering tuition reimbursement have decreased since 2002, where 85 percent offered reimbursement. The number decreased again from 82 percent in 2004 to 73 percent in 2006.

·        Ninety percent use on–the-job training, individualized training by supervisors, mentors or company trainers. The number of hours of training the average employee receives each year is 10 hours or less.

·        Some form of smoking policy is in place with 92 percent of employers, an increase from 89 percent in 2004.

·        Fourteen percent of companies now offer an HSA (Health Savings Account) or HRA (Health Reimbursement Account) plan in conjunction with a Consumer Driven Health Plan.

·        A wellness program is being offered by 30 percent of companies, with smoking cessation programs being the most popular wellness program to offer at 62 percent.

·        The top barrier sited by respondents to recruiting new employees is the lack of skills for the position

·        Overall turnover rates are up from 10.1 percent in 2004 to 15.7 in 2006; the cost per hire for salaried employees is $7,195 per employee.