HRA-NCA Compensation 2009 September 2, 2009 • Washington, DC
Compensation 2009 Welcome Cynthia Ward President, HRA-NCA
HRA-NCA Survey History • Mission of HRA-NCA • To promote the exchange of ideas and practices and the development of mutual assistance among Human Resource professionals • 30th Edition of HRA-NCA Compensation Survey • Government Contractors Survey – Partnership with Professional Services Council (PSC) • Benefits Survey - Partnership with WACABA and WEB
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2009 Compensation Survey Cara Carter Compensation Survey Chair, HRA-NCA Compensation Manager, BAE Systems
Agenda • 2009 Benefits Survey • George Lane, Principal, Mercer CompanyChair of Benefits Survey • 2009 Compensation Highlights • Mike Kostrzewa, PhD, HR Director, YRCI • Trends in Policies & Practices • Suzanne Goulden, Senior Manager, Compensation and Benefits, American Society of Clinical Oncology • Government Contractor Compensation Highlights • Alan Chvotkin, Executive Vice President & Counsel, Professional Services Council • Online Survey Query Tool • Angelo Kostopoulos, AKRON, Inc. • Questions and Answers
Compensation Committee Members • Jesse Cantrill, Cantrill & Moyer • Cara Carter, Committee Chair, BAE Systems • Alan Chvotkin, Professional Services Council • Suzanne Goulden, American Society of Clinical Oncology • Erika Johnson, Watson Wyatt Worldwide • Michael Kostrzewa, PhD, YRCI • Anna Liu, Navy Federal Credit Union • Sonya Ousley Lee, SES-Americom • Dave Sturtevant, AKRON Team • Angelo Kostopoulos, AKRON Team
2009 Benefits Survey George Lane HRA-NCA Chair of Benefits Survey Principal, Mercer
The Benefits Survey Overview • 265 respondents (63% repeat participation) • Includes: • Health (medical, dental, vision, CDH) • Welfare (FSA, life insurance, disability insurance) • Work-Life – (leave, tuition assistance, telecommuting, work environment, health and wellness) • Retirement – (defined contribution, defined benefit) • Survey Results available at: • http://survey.akroninc.net/hrancaportal
Medical – Plan Financials What was the FINAL percentage change in your 2009 plan costs? Weighted average of percent change in plan rates (increases, decreases, and no change), weighted by number of employees was 4.9%
Medical – Plan Financials Which of the following actions did you take in response to 2009 plan rate changes?
Work Life Benefits - PTO Percent of Employers who have a PTO Policy
Work Life Benefits - PTO What types of leave are replaced by PTO?
2009 Compensation Survey Survey Highlights from Job Data Mike Kostrzewa, PhD YRCI
Topics • Participants • Several Year-to-Year Comparisons • Senior HR Jobs • Job Families • Individual Jobs • New Hire Rates • Variable Pay
Participants - 2009 • 324 Participants • Representing 349,936 employees • Provided data on 77,752 Incumbents • Across 337 jobs • 69% Repeat participants • Average EEs – 1068, Median EEs – 210
Year-to-Year Comparisons • Survey includes 3 types of year-to-year comparisons: • Pay increase budgets • Actual pay increase to employees • Year-to-year change to average and median of each job
Change in Median by Job Family-Repeat Incumbent-weighted average of the median change increased by 3.5%
Short Term Incentive STI was reported on 305 of 337 positions (91%)
2009 Compensation Survey Compensation Policies and Practices Suzanne Goulden American Society of Clinical Oncology
Budgeted Pay: Average Pay Increase Budgets are significantly lower for all employee groups in 2009
Signing Bonus • Drop in use as seen in previous survey • Amounts have remained relatively consistent with prior years
2009 Government Contractors Compensation Survey Alan Chvotkin Executive Vice President & Counsel Professional Services Council
Overview • Definition: 50% or more of firm’s revenue derived from government contracts • 101 organizations reported • 302 jobs reported • 27,323 employee salaries reported • Voluntary responses, but best that exists • Aggregated trends; year-over-year comparisons
Survey Trends 2008-2009 Year-over-year changes in median pay
Survey Trends 2008-2009 Year-over-year changes in median • 62 jobs declined in pay, 185 went up (+/- more than 0.5%) • 4.4% overall pay differential for government contractor employees ABOVE federal employees (vs. 6.3% in prior survey) • 3.0% if we exclude “Executive” pay (vs. 4.9% in prior survey) • Government Contractor “Executive” pay levels on average 54% higher than federal employee counterparts
Security Clearance Policies • Surveyed at the organizational level • 51% provide additional compensation to cleared personnel • 3% - 13% average differential in base pay reported through all clearance levels (Secret through TS/Poly), in Policies and Practices section.
Survey Trends - Security Clearance • Further analysis shows that some jobs with security clearances consistently have higher pay rates than others, when looking at a number of parameters: • Number of respondents • Number of employees • Level of clearance • Type and level of job • Trends – Higher pay is evident in: • Highest levels in job family (Senior-level jobs) • Highest security levels (TS vs. Secret)
2009 Compensation Survey Online Query Tool Angelo Kostopoulos AKRON, Inc.
Cynthia Ward Vice President Market Services Lee Hecht Harrison firstname.lastname@example.org (202) 942-0431 George Lane Principal Mercer George.Lane@marsh.com (202) 263-7847 Alan Chvotkin, Esq. Executive Vice President and Counsel Professional Services Council email@example.com www.pscouncil.org (703) 875-8059 Cara Carter Compensation Manager BAE Systems firstname.lastname@example.org 703-668-4361 Suzanne Goulden Senior Manager, Compensation and Benefits American Society of Clinical Oncology Suzanne.Goulden@asco.org (571) 483-1464 Mike Kostrzewa, Ph.D. Director, Human Resources YRCI mkostrzewa@YRCI.com (703) 995-9615 Angelo Kostopoulos AKRON, Inc. email@example.com (202) 745-0400