PEBA Compensation Survey

PEBA Compensation Survey

Report - May 2001

The survey data was collected via the PEBA e-mail survey software in February, 2001. The survey was sent to 341 member companies. 79 companies participated. An executive summary of the results can be found on the PEBA web site. The information below is a question by question analysis. Answers to open-ended questions were grouped, summarized, and put in a table.*

Demographics

Q 1. Please indicate whether you are a company human resource professional or a service provider/consultant (includes attorneys, consultants, sales/marketing, brokers, TPA's, etc.)

Responses	Count	Percent
Company HR Staff	77	97.5%
Provider/Consultant	2	2.5%

Q 2. What is the total number of employees your company has in all locations?

Responses	Count	Percent
Fewer than 100 employees	4	4.9%
100-499	15	18.5%
500-999	11	13.6%
1000-2499	23	28.4%
2500-4999	6	7.4%
5000 +	22	27.2%

Q 3. How many employees does your company have in the Delaware Valley?

Responses	Count	Percent
Fewer than 100 employees	12	15.4%
100-499	21	26.9%
500-999	13	16.7%
1000-2499	17	21.8%
2500-4999	7	9.0%
5000 +	8	10.3%

Q 4. What percentage of your employees are women?

Responses	Count	Percent
1-10%	4	5.4%
11-30%	5	6.8%
31-50%	22	29.7%
51-75%	36	48.6%
more than 75%	7	9.5%

Questions

Q 5. Industry

Responses	Count	Percent
Chemical	2	2.7%
Consulting	2	2.7%
Computer	3	4.1%
Education	10	13.7%
Financial Services	7	9.6%
Health Care	12	16.4%
Insurance	3	4.1%
Law	2	2.7%
Manufacturing	14	19.2%
Pharmaceutical	7	9.6%
Publishing	2	2.7%
Services	6	8.2%
Utility	3	4.1%

Q 6. Does your organization have a merit increase program?

Responses	Count	Percent
Yes	73	93.6%
No	5	6.4%

Q 7. If yes, indicate the actual merit increase budget adopted for 2000 as a percent of base salary for each group.

Responses	Mean
Executive	1.9
Exempt	1.8
Non-Exempt	1.8
Information Technology	3.9

Q 8. Does your organization have a separate merit increase program for IT positions?

Responses	Count	Percent
Yes	7	8.9%
No	72	91.1%

Q 9. If yes, indicate the 2000 actual increase as a percent of base salary awarded to this group.

Responses	Count	Percent
0-1.9%	0	0.0%
2-3.9%	1	12.5%
4-5.9%	3	37.5%
6-7.9%	2	25.0%
8-10%	0	0.0%
more than 10%	2	25.0%

Q 10. Do you offer a merit increase and an additional bonus to employees? If yes, is everyone eligible or just specific groups?

Response	Number of People Who Responded
Yes	7
Yes- specific groups or individuals	16
Yes, everyone	17
No	17
Other: (all receiving 1 response)
Managers and above
Yes, exempt receive bonuses
Yes, management only
Yes, a pay for performance bonus if the org. meets it financial goals
Yes, executives only
Depends
All non-union are eligible

Q 11. Does your organization offer lump sum payments instead of merit increases?

Responses	Count	Percent
Yes	29	37.2%
No	49	62.8%

Q 12. If yes, are the payments offered to:

Responses	Count	Percent
Executives	16	24.2%
Exempt	23	34.8%
Non-exempt	24	36.4%
Information technology employees	23	34.8%

Q 13. What is the typical percentage increase in total cash compensation offered to current employees when they accept lateral positions?

Responses	Count	Percent
0-4.9%	67	89.3%
5-9.9%	7	9.3%
10-14.9%	1	1.3%
15% or more	0	0.0%

Q 14. What is the typical percentage increase in total cash compensation offered to current employees when they are promoted?

Responses	Count	Percent
0-4.9%	10	13.0%
5-9.9%	48	62.3%
10-14.9%	16	20.8%
15% or more	3	3.9%

Q 15. Are you doing any of the following programs in your organization to retain employees?

Responses	Count	Percent
Project bonus	20	26.3%
Stay/Retention bonus	21	27.6%
Current cash profit sharing	8	10.5%
Team/small group incentives	22	28.9%
Individual incentives	35	46.1%
Spot awards	34	44.7%
Technical achievement awards	7	9.2%
Gain sharing	6	7.9%
Lump sum merit	17	22.4%
Key contributor retention plan	8	10.5%
Skill/knowledge based pay	12	15.8%
Long term incentives	27	35.5%

Q 16. Do you use a hiring bonus as a tool for recruiting executives? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	8
Yes- varies	7
Yes – amount unknown/not available	4
rarely	1
No	29
$1500	1
$5000	6
$5000-10,000	2
$5000-15,000	1
$10,000	1
$15,000	1
$10,000-25,000	2
$25,000	2

Q 17. Do you use a hiring bonus as a tool for recruiting exempt employees? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	6
Yes- varies	6
No	25
$1000	1
$2000	2
$2000-3000	1
$2000-4000	2
$2000-10,000	1
$2500	1
$3000	4
$3500	2
$5000	3
$5000-10,000	2
$5000-15,000	1
$10,000	1
$15,000	1
Other: (all receiving 1 response)
Cannot give average amount
Sometimes in lieu of relocation
Not on a consistent basis

Q 18. Do you use a hiring bonus as a tool for recruiting non-exempt? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	2
Yes- varies	1
Yes – amount unknown/not available	1
Rarely	2
No	50
$500	1
$1000	1
$1348	1
$1500	1
$2000	2
$3000	1

Q 19. Do you use a hiring bonus as a tool for recruiting IT professionals? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	5
Yes- varies	5
Yes – amount unknown/not available	3
No	31
$2000-4000	2
$2000-5000	2
$3480	1
$3500	3
$5000	2
$5000-10,000	1
$5000-15,000	1
$6000	1
$10,000	2
$15,000	1
Other:
Sometimes in lieu of relocation

Q 20. When does the new employee receive the bonus?

Responses	Count	Percent
Upon Hire	25	53.2%
After set period of time	22	46.8%

Q 21. How are the bonus amounts determined?

Responses	Count	Percent
As a % of salary	5	10.4%
Dollar amount	43	89.6%

Q 22. Do you vary the bonus based on the job/skill?

Responses	Count	Percent
Yes	38	80.9%
No	9	19.1%

Q 23. Are there any payback clauses if the employee terminates employment? If yes, please describe.

Response	Number of People Who Responded
Yes	4
Yes- varies	3
No	21
Must stay 6 months or pay back	3
Must stay 1 year or pay back	8
Must stay 12 –24 months or pay back	3
Must pay back if employee leaves within 2 years	1
Yes, forgivable loan over 3 years	1
Yes, PTO days, computer loan	1
Yes, vacation and proficiency pay	1
Yes, within 18 months	1
Bonus to be paid back if employee leaves before the end of 3 months	1

Q 24. Do you use employee referral bonuses as a tool for recruiting executives? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	3
No	40
$100	2
$100-2500	1
$250	4
$500	3
$750-1500	1
$750-2500	1
$1000	2
$1500	2
$2000	2
$3000	1
$5000	1

Q 25. Do you use employee referral bonuses as a tool for recruiting exempt employees? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	5
Yes – amount unknown/not available	1
No	24
$50	1
$100	3
$100-2500	1
$200	1
$250	4
$500	6
$500-1500	2
$700	1
$750-1500	1
$1000	7
$1500	2
$2000	5
$3000	1
$5000	1
Other:
Yes, in selected jobs, ½ bonus amount for the job of the employee that was referred

Q 26. Do you use employee referral bonuses as a tool for recruiting non-exempt? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	6
Yes – amount unknown/not available	1
No	25
$50	1
$100	5
$100-2500	1
$250	8
$500	9
$500-1000	1
$750-1500	1
$1000	6
$1500	1
$2000	2
$5000	1
Other:
$250 for RN’s, $1000 if RN stays

Q 27. Do you use employee referral bonuses as a tool for recruiting IT professionals? If yes, indicate the average bonus.

Response	Number of People Who Responded
Yes	6
Yes – amount unknown/not available	1
No	27
$50	1
$100	3
$100-2500	1
$200	1
$250	4
$500	4
$500-1000	1
$750-1500	1
$1000	5
$1500	4
$1500-3000	1
$2000	3
$2500	2
$3000	2
$5000	1

Q 28. When does the employee receive the bonus?

Responses	Count	Percent
Upon hire	22	31.4%
After set period of time	36	51.4%

Q 29. How are the bonus amounts determined?

Responses	Count	Percent
As a % of salary	1	1.5%
Dollar amount	48	70.6%

Q 30. Do you vary the bonus based on the job/skill?

Responses	Count	Percent
Yes	21	39.6%
No	32	60.4%

Q 31. Stock options?

Responses	Count	Percent
Yes, fully paid	20	27.0%
Yes, partially paid	0	0.0%
Yes, not paid	6	8.1%
No	47	63.5%
Considering	1	1.4%

Q 32. Car allowances?

Responses	Count	Percent
Yes, fully paid	17	23.6%
Yes, partially paid	10	13.9%
Yes, not paid	1	1.4%
No	44	61.1%
Considering	0	0.0%

Q 33. Auto insurance?

Responses	Count	Percent
Yes, fully paid	10	13.5%
Yes, partially paid	1	1.4%
Yes, not paid	13	17.6%
No	49	66.2%
Considering	0	0.0%

Q 34. Travel insurance?

Responses	Count	Percent
Yes, fully paid	36	48.6%
Yes, partially paid	2	2.7%
Yes, not paid	3	4.1%
No	32	43.2%
Considering	1	1.4%

Q 35. Paid spouse travel?

Responses	Count	Percent
Yes, fully paid	1	1.4%
Yes, partially paid	0	0.0%
Yes, not paid	1	1.4%
No	71	97.3%
Considering	0	0.0%

Q 36. Financial counseling services?

Responses	Count	Percent
Yes, fully paid	10	13.5%
Yes, partially paid	7	9.5%
Yes, not paid	7	9.5%
No	44	59.5%
Considering	6	8.1%

Q 37. Legal counseling services?

Responses	Count	Percent
Yes, fully paid	5	6.9%
Yes, partially paid	5	6.9%
Yes, not paid	7	9.7%
No	50	69.4%
Considering	5	6.9%

Q 38. Housing?

Responses	Count	Percent
Yes, fully paid	2	2.7%
Yes, partially paid	7	9.6%
Yes, not paid	1	1.4%
No	63	86.3%
Considering	0	0.0%

Q 39. Additional life insurance?

Responses	Count	Percent
Yes, fully paid	2	2.7%
Yes, partially paid	19	26.0%
Yes, not paid	40	54.8%
No	11	15.1%
Considering	1	1.4%

Q 40. Athletic/fitness club membership?

Responses	Count	Percent
Yes, fully paid	7	9.7%
Yes, partially paid	9	12.5%
Yes, not paid	8	11.1%
No	46	63.9%
Considering	2	2.8%

Q 41. Country club membership?

Responses	Count	Percent
Yes, fully paid	3	4.2%
Yes, partially paid	2	2.8%
Yes, not paid	0	0.0%
No	66	93.0%
Considering	0	0.0%

Q 42. Extra vacation?

Responses	Count	Percent
Yes, fully paid	8	11.1%
Yes, partially paid	1	1.4%
Yes, not paid	4	5.6%
No	58	80.6%
Considering	1	1.4%

Q 43. Annual physical exam?

Responses	Count	Percent
Yes, fully paid	19	26.4%
Yes, partially paid	3	4.2%
Yes, not paid	0	0.0%
No	49	68.1%
Considering	1	1.4%

Q 44. Long-term care?

Responses	Count	Percent
Yes, fully paid	0	0.0%
Yes, partially paid	5	6.8%
Yes, not paid	17	23.3%
No	43	58.9%
Considering	8	11.0%

Q 45. Living benefits?

Responses	Count	Percent
Yes, fully paid	4	5.9%
Yes, partially paid	4	5.9%
Yes, not paid	1	1.5%
No	58	85.3%
Considering	1	1.5%

Q 46. Waiver of health care coverage?

Responses	Count	Percent
Yes, fully paid	13	18.3%
Yes, partially paid	13	18.3%
Yes, not paid	17	23.9%
No	28	39.4%
Considering	0	0.0%

Q 47. Domestic partner coverage?

Responses	Count	Percent
Yes, fully paid	2	2.8%
Yes, partially paid	14	19.4%
Yes, not paid	1	1.4%
No	48	66.7%
Considering	7	9.7%

Q 48. Paid time off program?

Responses	Count	Percent
Yes, fully paid	32	45.7%
Yes, partially paid	3	4.3%
Yes, not paid	0	0.0%
No	33	47.1%
Considering	2	2.9%

Q 49. Dependent care days?

Responses	Count	Percent
Yes, fully paid	15	20.8%
Yes, partially paid	3	4.2%
Yes, not paid	2	2.8%
No	49	68.1%
Considering	3	4.2%

Q 50. Sick leave bank?

Responses	Count	Percent
Yes, fully paid	31	44.3%
Yes, partially paid	4	5.7%
Yes, not paid	0	0.0%
No	33	47.1%
Considering	2	2.9%

Q 51. Community services during working hours?

Responses	Count	Percent
Yes, fully paid	14	20.0%
Yes, partially paid	1	1.4%
Yes, not paid	0	0.0%
No	54	77.1%
Considering	1	1.4%

Q 52. Work-at-home policy?

Responses	Count	Percent
Yes, fully paid	21	30.4%
Yes, partially paid	2	2.9%
Yes, not paid	1	1.4%
No	38	55.1%
Considering	7	10.1%

Q 53. Job sharing program?

Responses	Count	Percent
Yes, fully paid	18	26.1%
Yes, partially paid	0	0.0%
Yes, not paid	0	0.0%
No	48	69.6%
Considering	3	4.3%

Q 54. Flexible hours?

Responses	Count	Percent
Yes, fully paid	42	61.8%
Yes, partially paid	0	0.0%
Yes, not paid	2	2.9%
No	23	33.8%
Considering	1	1.5%

Q 55. Adoption expenses?

Responses	Count	Percent
Yes, fully paid	2	2.9%
Yes, partially paid	13	19.1%
Yes, not paid	1	1.5%
No	51	75.0%
Considering	1	1.5%

Q 56. Childcare?

Responses	Count	Percent
Yes, fully paid	2	2.9%
Yes, partially paid	9	13.2%
Yes, not paid	11	16.2%
No	45	66.2%
Considering	1	1.5%

Q 57. Employee assistance programs?

Responses	Count	Percent
Yes, fully paid	45	66.2%
Yes, partially paid	9	13.2%
Yes, not paid	1	1.5%
No	10	14.7%
Considering	3	4.4%

Q 58. Tuition reimbursement?

Responses	Count	Percent
Yes, fully paid	33	49.3%
Yes, partially paid	27	40.3%
Yes, not paid	0	0.0%
No	6	9.0%
Considering	1	1.5%

Q 59. On-site cafeteria?

Responses	Count	Percent
Yes, fully paid	1	1.5%
Yes, partially paid	22	33.3%
Yes, not paid	17	25.8%
No	26	39.4%
Considering	0	0.0%

Q 60. Personal computer use?

Responses	Count	Percent
Yes, fully paid	17	27.0%
Yes, partially paid	2	3.2%
Yes, not paid	8	12.7%
No	36	57.1%
Considering	0	0.0%

Q 61. Convenience services?

Responses	Count	Percent
Yes, fully paid	0	0.0%
Yes, partially paid	3	4.6%
Yes, not paid	13	20.0%
No	43	66.2%
Considering	6	9.2%

Q 62. On-site medical clinic?

Responses	Count	Percent
Yes, fully paid	7	10.6%
Yes, partially paid	3	4.5%
Yes, not paid	3	4.5%
No	53	80.3%
Considering	0	0.0%

Q 63. Casual dress days?

Responses	Count	Percent
Yes, fully paid	43	65.2%
Yes, partially paid	1	1.5%
Yes, not paid	12	18.2%
No	10	15.2%
Considering	0	0.0%

Q 64. Dry cleaning?

Responses	Count	Percent
Yes, fully paid	1	1.5%
Yes, partially paid	0	0.0%
Yes, not paid	13	19.7%
No	48	72.7%
Considering	4	6.1%

Q 65. Photo processing?

Responses	Count	Percent
Yes, fully paid	1	1.5%
Yes, partially paid	1	1.5%
Yes, not paid	13	19.7%
No	49	74.2%
Considering	2	3.0%

Q 66. Take-home meals?

Responses	Count	Percent
Yes, fully paid	1	1.5%
Yes, partially paid	2	3.0%
Yes, not paid	10	15.2%
No	52	78.8%
Considering	1	1.5%

Q 67. Auto servicing?

Responses	Count	Percent
Yes, fully paid	2	3.0%
Yes, partially paid	0	0.0%
Yes, not paid	4	6.1%
No	57	86.4%
Considering	3	4.5%

Q 68. Mail services?

Responses	Count	Percent
Yes, fully paid	0	0.0%
Yes, partially paid	0	0.0%
Yes, not paid	21	31.8%
No	44	66.7%
Considering	1	1.5%

Q 69. Are there any additional programs that you could recommend that would help retain employee's interest in a company?

Response	Number of People Who Responded
Yes	3
No	13
Other (all receiving 1 response)
Home mortgage assistance
Home security systems discounts
Travel and recreation discounts
Voluntary AD & D insurance
Newsletters
Outings (ballgames, picnics, etc)
MAC machine
EE development opportunities
Pet services
Sick childcare
Retirement counseling
Alternative medical insurance
In-house university

Q 70. Do you find that any of the "Other Employment Practices" help retain employees in your company?

Responses	Count	Percent
Yes	31	67.4%
No	15	32.6%

Q 71. Please explain question 69.

Although I did not see those items listed earlier in the survey they are of high value to our employees. In particular, we offer both a 403(b) contribution retirement plan PLUS a defined benefit plan, so we feel we are trying to meet the needs of our employees who will not stay with us until they reach vesting in the old-fashioned pension plan.

Services that provide assistance while at work offer convenience; allowing EES to work flex or part time provides work/life balance; shows company recognizes need for personal aspects.

Improves morale.

I think they are important but not real drivers. The exceptions are: onsite childcare, job share, less than a 5-day week.

Good management/leadership is the #1 reason why employees stay with a company. - Management. Training.

Services offered are conveniences for employees but I don't see employees electing to stay here because we offer them.

Offer greater variety of concierge services to employees, pet insurance, work/life programs.

Hopefully.

Employee of the month/year, birthday breakfast, employee appreciation days.

Flextime works for some employees as a retention tool. But it's based on manager approval.

Employees speak of how much they enjoy the perks and benefits.

Q 72. Do you find these programs have increased/decreased turnover?

Responses	Count	Percent
Increased	0	0.0%
Decreased	22	40.7%

Q 73. Do you find that Merit Pay is the leading factor in retaining employees in your company?

Responses	Count	Percent
Yes	11	20.0%
No	44	80.0%

(Continued on next page.)

Q 74. What do you think is the key factor in retaining employees in your company?

The following chart groups the various responses provided by those people who replied to Q. 74. 43 people responded.

Response	Number of People Who Responded
Pay/salary	13
Benefits	7
No one factor is key	3
Treatment by supervisor, effective management	12
Positive work environment	7
Challenging/meaningful work	5
Opportunities for growth/advancement	5
Communication with the employees	4
Work/life balance	4
Recognition for good performance	4
Communication	4
Flexibility	3
Organization mission/values	3
Merit pay program	2
Culture	2
Other (all receiving 1 response)
Vacation/PTO
Empowering the EE to make decision
Education reimbursement
Relationship to boss and fellow colleagues
Professional interest in job
Caring company
Competitive incentive plan
Additional perks
Community service during working hours
Affiliation with a highly respected community organization
Charismatic CEO
Global travel opportunities
Personalization
Good training program

* This information has been collected by PEBA for the convenience of its members and is taken directly from information given to PEBA by those member companies who participated in the survey. These survey results do not constitute legal or consulting advice and are provided for information only.