what should i pay? compensation trends for northeast ohio manufacturers
TRANSCRIPT
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The State of Manufacturing: Important Trends Affecting NEO Manufacturers
Marty Mordarski, SPHR, SHRM-SCPDirector, Research & Membership at ERC
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Average Actual and Projected Base Pay Increases in NEO (2005-2015)
Source: 2015-2016 ERC Wage & Salary Adjustment Survey
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Average Actual Base Pay Increases at Manufacturers in NEO (2005-2015)(By Employee Group)
Production, Maintenance, and Service Positions (Non-Union)
Production, Maintenance, and Service Positions (Union)
Clerical and Technical Positions
Supervisory, Management, and Professional Positions
Executive Positions
Source: 2015-2016 ERC Wage & Salary Adjustment Survey
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Percent of NEO Employers that Provided Base Pay Increases
Source: 2015-2016 ERC Wage & Salary Adjustment Survey
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NEO Manufacturers that Did Not Provide Base Pay Increases (2005-2015)(By Employee Group)
Production, Maintenance, and Service Positions (Non-Union)
Production, Maintenance, and Service Positions (Union)
Clerical and Technical Positions
Supervisory, Management, and Professional Positions
Executive PositionsSource: 2015-2016 ERC Wage & Salary Adjustment Survey
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Most NEO manufacturers are increasing wages.But not by much.
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$13.46
$15.57
$15.96
$16.43
$18.32
$20.00
$21.57
$10.00 $15.00 $20.00 $25.00
Warehouse Worker
Shipping/Receiving Clerk
Production Worker (Senior)
Assembler (Senior)
Maintenance Worker
Inspector (Senior)
CNC Machine Set Up/Operator (Senior)
2011 2012 2013 2014 2015
Source: ERC Wage Survey (2011-2015)
Average Hourly Pay for Select Positions in NEO (2011-2015)
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That’s great, thank you. But now what?
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Image credit: vdHoeven/NASA/JPL-Caltech/R. Kennicutt (Univ. of Arizona)/DSS Based on observations made with the NASA/ESA Hubble Space Telescope, and obtained from the Hubble Legacy Archive, which is a collaboration between the Space Telescope Science Institute (STScI/NASA), the Space Telescope European Coordinating Facility (ST-ECF/ESA) and the Canadian Astronomy Data Centre (CADC/NRC/CSA).
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Image credit: vdHoeven/NASA/JPL-Caltech/R. Kennicutt (Univ. of Arizona)/DSS Based on observations made with the NASA/ESA Hubble Space Telescope, and obtained from the Hubble Legacy Archive, which is a collaboration between the Space Telescope Science Institute (STScI/NASA), the Space Telescope European Coordinating Facility (ST-ECF/ESA) and the Canadian Astronomy Data Centre (CADC/NRC/CSA).
DANGER: Reviewing data in a vacuum
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Source: ERC/Smart Business Workplace Practices Survey (2012-2015)
What is your company’s biggest challenge?
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Challenging/Meaningful Work 18.5%Compensation 16.7%Job Security 11.0%Work/Life Benefits 10.6%Benefits 6.8%Autonomy 5.1%Advancement 5.0%Leadership 4.9%Career Development 4.4%Product/Service Quality 2.5%
4.9%Average base pay increase for top performers at NorthCoast 99 award-winning manufacturers
(2015 NorthCoast 99 Winners)
What is your company’s biggest challenge?
What do top performers look for?
Source: 2015 NorthCoast 99 Top Performer Engagement Survey (N=8,727)
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Convenience Relevance
DANGER: Bias what’s free
DANGER: Bias data that supports preconceived ideas
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Not all data are created equal
• Measures of central tendency (avg/median)• Sample size (participants, observations)• Population (industry, geography, size)• Survey method (self vs. employer reported)• Matching method (title vs. job description)• Effective date / age of data
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Okay, but what should I pay?
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What do you want to pay?
• Lead, lag, or match the market?• Put a premium on experience, skills, shifts?• Pay for performance?• Ranges, grades, levels?• Internal equity?• Role of benefits (“total rewards”)?
• Insurance• Paid time off• Retirement (i.e. 401k match)• Stock options
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And, oh, by the way….
Proposed changes to FLSA…
• Could raise the minimum weekly pay threshold from $455/week to $970/week.
• Any employee making less than $50,440 per year could be entitled to overtime (non-exempt).
• Changes may be finalized before the end of this year and go into effect in 2016.
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This is too important to get wrong.
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Visit for access to this presentation’s slides, free wage and salary survey results, information about compensation consulting, and other resources.
www.yourERC.com/stateofmanufacturing