2014 Livingston County Compensation Report & Benefits

Survey Presentation

Howell Area Chamber of Commerce Wednesday, September 24, 2014

• Introduction• Disclaimers (not legal advice, not a CPA, not HCOC, not insurance rep, but an HR Pro)

• Labor Market Information & Strategic Initiatives (LMISI)

• Highlights of survey results & Take-Aways

• Group discussion

Overview

General Labor Market Overview andIndustry and Occupational Wage Report

Prepared by:Michigan Department of Technology, Management and BudgetBureau of Labor Market Information and Strategic Initiatives

HOWELL AREA CHAMBEROF COMMERCESEPTEMBER 2014

About Us

• Bureau of Labor Market Information and Strategic Initiatives (LMISI), part of the Department of Technology, Management and Budget

• Responsible for producing and publishing the “official” labor force statistics for the Michigan and regional areas throughout the state

• LMISI collects, compiles, analyzes and publishes information on employment, unemployment, industries, occupations, wages, demographics, etc.

Area Jobless Rate Falls Steadily since End of Recession, Remains Above 2008 Level

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 *

5.0% 5.4% 5.3% 5.6%6.7%

11.9%12.6%

10.4%9.1%

8.1%7.6%

Number of unemployed down almost seven percent since 2013, and nearly half the level it registered in 2010

About 6,900 unemployed residents in 2014 year-to-date, down from 11,300 in 2010. However, the number of unemployed remains above the 2008 level.

MDTMB, Bureau of Labor Market Information, Local Area Unemployment Statistics Program (LAUS)* Indicates year-to-date average through July 2014

Total Private Payroll Jobs Continue to Rebound from Recessionary Losses

Total private payroll jobs had risen for three consecutive years since hitting a recent low of 36,200 in 2009.

Much of the recent job growth is attributable to Retail Trade, Manufacturing, Professional and Business Services, and Transportation and Warehousing.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201225,000

30,000

35,000

40,000

45,00043,500

36,200

42,500

MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2012Note: 2013 job totals were available at time of publication but trends in some sectors were artificially high due to data coding issues

Resident Earnings Higher than U.S. and State, Private Industry Wages Steady

United States Census Bureau, American Community Survey, 2013 1-Yr estimatesMDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013

Area Per Capita Income

Median Household

Income

Livingston County $32,100 $70,700

Michigan - Statewide $25,900 $48,300

United States $28,200 $52,300

2008 2009 2010 2011 2012 2013

$36,835 $36,329

$37,704

$38,774 $38,916 $38,648

Average Annual Industry Wages per Worker

Following modest post-recessionary

gains, total private wages have been

largely stable since 2011.

However, the county remains below

Michigan’s $46,660 average in 2013.

Local Area Payroll Wages by Industry Sector, Share of Total Private 2013

Industry Sector Total Wages in 2013(in thousands)

Average Weekly Wage in 2013

Manufacturing $ 440,230 $ 1,118Retail Trade $ 199,467 $ 502Health Care and Social Assistance $ 184,805 $ 730Professional and Technical Services $175,545 $ 940

Construction $ 135,484 $927

MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data

Manufacturing 25%

Retail Trade 12%

Health Care and Social Assistance

12%

Professional and Technical 9%

Construction 8%

Wholesale Trade 7%

Finance and In-surance

6%

Administrative and Waste

5%

Transportation and Warehousing

4%

Accommodation and Food

4%Other

8%

Total private wages paid in Livingston County totaled over $1.7 billion in 2013.

Notable Sectors Paying Above-Average Annual Wages per Worker Locally, 2013

Wholesale Trade Manufacturing Finance and Insurance

Transportation and Warehous-

ing

Professional and Technical ser-

vices

Construction

$75,108

$58,151 $56,164

$54,416

$48,926 $48,224

Private wages per worker in Livingston County averaged $38,650 annually in 2013.

MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data

Notable Sectors Paying Below-Average Annual Wages per Worker Locally, 2013

Private wages per worker in Livingston County averaged $38,650 annually in 2013.

Health Care and Social Assistance

Administrative Support and

Waste Services

Real Estate and Rental/Leasing

Retail Trade Other Services Accommodation and Food

$37,973

$28,516 $26,627 $26,140

$20,443

$13,207

MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data

Livingston County New Hire Wages by Sector Compared to Average

IndustryAnnual Average

New Hire Wages 2nd Quarter 2013

Annual Average Overall Wages

2013Percent

Difference

Wholesale Trade $38,976 $75,108 93%

Transportation and Warehousing $32,796 $54,416 66%

Health Care and Social Assistance $24,612 $37,973 54%

Retail Trade $18,096 $26,140 44%

Manufacturing $41,352 $58,151 41%

Information $41,112 $56,045 36%

Accommodation and Food Services $10,116 $13,207 31%

Construction $38,088 $48,224 27%

Administrative Support & Waste Services $23,064 $28,516 24%

Arts, Entertainment, and Recreation $14,580 $18,105 24%

Finance and Insurance $48,420 $56,164 16%

Professional, Scientific & Technical Services $44,508 $48,926 10%

Source: U.S. Census Bureau, Local Employment DynamicsMDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data

Wage Differences by GenderRemain Apparent in Livingston County

New Hires (2rd Q 2013) Total Private (2nd Q 2013)$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$20,052

$31,092$31,800

$52,728 FemalesMales

Source: U.S. Census Bureau, Local Employment Dynamics

Other Wage Characteristics of the Region

Source: Bureau of Labor Statistics, National Compensation Survey , March 2010, Detroit CMSA (includes Livingston County)* Data from this survey has yet to be updated since the 2012 Livingston County report, but is included here as a point of reference due to the unavailability of similar wage measures in other BLS data sources.

Full-time workers are making almost twice the hourly wage as part timers, while working twice as many weekly hours.

Workers who earn based on incentive pay make 43 percent more per hour, while working the same number of hours per week, on average.

Incentive

Time

Part Time

Full Time

$33.35

$23.25

$13.76

$25.69

Average Hourly Pay, 2010*

Other Wage Characteristics of the Region (Continued)

• Union workers earned 25 percent more per hour than non-union workers locally while averaging 3 more hours worked per week.

• Small businesses paid workers on par with medium-sized firms, though large companies paid employees over $10 more per hour, on average.

Source: Bureau of Labor Statistics, National Compensation Survey , March 2010, Detroit CMSA (includes Livingston County)* Data from this survey has yet to be updated since the 2012 Livingston County report, but is included here as a point of reference due to the unavailability of similar wage measures in other BLS data sources.

Union Non-Union 99 Workers or Less

100 to 499 Workers

500 Workers or More

$27.99

$22.39$19.30 $21.16

$31.78

Average Hourly Pay by Business Size

Average Hourly Pay by Union Classification

Median Hourly Wages for Selected Occupations in the Area, 2013

Retail Salespersons

Team Assemblers

Customer Service Reps

Bookkeeping and Accounting Clerks

Heavy Truck Drivers

Machinists

Computer Support Specialists

Wholesale Sales Reps

Accountants and Auditors

Registered Nurses

Mechanical Engineers

$10.13

$14.87

$14.65

$17.54

$19.00

$19.42

$20.66

$26.30

$31.06

$33.33

$43.26

Median Hourly Wage

The median wage for all occupations in the region was $17.38 in 2013, un-changed from 2012.

Source: MDTMB, Bureau of Labor Market Information, Occupational Employment Statistics (OES) program, May 2013

Entry-Level and Top Pay Ranges for Selected Occupations, 2013

Source: MDTMB, Bureau of Labor Market Information, Occupational Employment Statistics (OES) program, May 2013

Occupation Median Wage

Entry-Level Wage

(Lower Bound)

Entry-Level Wage

(Upper Bound)

Top-Level Wage

(Lower Bound)

Top-Level Wage

(Upper Bound)

Accountants and Auditors $31.06 $19.19 $23.51 $39.94 $52.96

Computer Support Specialists $20.66 $12.97 $16.32 $27.11 $35.12

Mechanical Engineers $43.26 $29.71 $36.29 $52.01 $58.15

Registered Nurses $33.33 $24.80 $29.23 $38.16 $44.54

Occupation Median Wage

Entry-Level Wage

(Lower Bound)

Entry-Level Wage

(Upper Bound)

Top-Level Wage

(Lower Bound)

Top-Level Wage

(Upper Bound)

Retail Salespersons $10.13 $8.03 $8.69 $13.27 $19.16

Wholesale Sales Reps $26.30 $12.22 $18.06 $39.05 $56.46

Retail Supervisors $18.11 $11.35 $14.08 $23.99 $31.62

Professional and Healthcare

Sales and Related

Entry-Level and Top Pay Ranges for Selected Occupations, 2013

Source: MDTMB, Bureau of Labor Market Information, Occupational Employment Statistics (OES) program, May 2013

Office and Administrative

Production and Transportation

Occupation Median Wage

Entry-Level Wage

(Lower Bound)

Entry-Level Wage

(Upper Bound)

Top-Level Wage

(Lower Bound)

Top-Level Wage

(Upper Bound)

Bookkeeping /Accounting Clerks $17.54 $10.70 $13.96 $21.65 $26.46

Customer Service Reps $14.65 $9.07 $11.29 $18.64 $23.57

Receptionists/Information Clerks $12.66 $8.71 $10.23 $15.31 $18.42

Occupation Median Wage

Entry-Level Wage

(Lower Bound)

Entry-Level Wage

(Upper Bound)

Top-Level Wage

(Lower Bound)

Top-Level Wage

(Upper Bound)

Team Assemblers $14.87 $8.98 $10.67 $18.62 $26.59

Machinists $19.42 $11.56 $15.14 $25.34 $31.48

Heavy Truck Drivers $19.00 $12.91 $15.45 $22.07 $25.95

For more information, visit our website at:

http://www.milmi.org

or call our main office at:

(313) 456-3090

CONTACT US

Michigan Department of Technology, Management and Budget

Bureau of Labor Market Information and Strategic Initiatives

2014 Livingston County Compensation Report & Benefits

Survey Presentation

Howell Chamber of Commerce Wednesday, September 24, 2014

65 Total Survey Participants in 2014

• Employers and Employees more focused on career path and professional development than ever before

Now (still) Hiring!

Reduced

No Change

Expanded Employee Count

0% 10% 20% 30% 40% 50% 60% 70%

4%

31%

65%

Last 12 Months

Last 12 Months

• In 2012, less than 45% planned to increase head count• Since 2009, there’s been a 65% increase in the time it takes

to fill a job!

Employers View of Important Retention Factors

Responses Response %Compensation (salary/pay) 32 59%Benefits 21 39%Work/Life balance 19 35%Company Culture 18 33%Training & Development 6 11%Other 3 6%

• Average EE contribution single coverage is 18% ; $90/month or $1085/annually (LivCo average EE contribution is slightly higher)

• Average EE contribution for family coverage is 28%; $402/month or $4,823/month (as a %, LivCo EE contributions are higher)

Benefit Changes in 2014

Other

None

Increased medical plan options

Eliminated dental or vision coverage

Eliminated medical coverage completely

Decreased medical plan options

Increased EE premium contribution

Increased Deductibles

0 5 10 15 20 25 30

8

27

11

1

1

6

18

10

Benefit Plan Changes in 2014

Increased EE Contributions

Key Benefit Related Statistics• Avg Deductible in 2014 = $1,217 ($584 in 2006)• Enhancements to PTO plans• Health Reform Projections• Creative funding strategies• Low cost but high impact plans• Education and engagement• Financial wellness• Benefit Committees

Ideas Worth Sharing?• Wellness Programs• Enhancements to PTO plans• Part-Time Benefits and utilization of P/T folks• Domestic Partner Benefits (9 or 14%)• Expanded Maternity Leave?• Formal Paternity Plan/Benefit?• Change in approach to medical marijuana• Other?

Resources• www.kff.org• www.payscale.com• www.monster.com• www.careerbuilder.com• ww.metlife.com/business/insights-an

d-tools/index.html• www.shrm.org• www.mercer.us• www.worldatwork.org

Questions or Comments?

Thank you!

Steve Williamswww.ectohr.com

810.534.0170 office steve@ectohr.com