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Compensation Resources, Inc. Releases Its 2007 Year-End Compensation Survey
Upper Saddle River, N.J. – December 6, 2007 - Compensation Resources, Inc. (CRI) has released the results of its 2007 Year-End Compensation Survey. The purpose of this study was to obtain compensation to be data used for trending and planning purposes at companies of all sizes and shapes. Data was compiled from survey questions that were developed by CRI and distributed to companies in 12 industrial classifications, in addition to Not-for-Profit organizations. The survey sampled year-end compensation data from a variety of organizations, collected in November 2007.
Results indicated that the average merit/salary increase for all employee functional groups was 4.1% in 2007, and 4.1% is also the average projected merit/salary increase for all groups in 2008. Generally speaking, Privately-Held companies reported higher percentages of actual 2007 and budgeted 2008 merit increases overall as compared to Publicly-Traded and Not-For-Profit organizations.
Highlights of this year’s results, including a comparison with the prior year’s findings are represented below:
Merit/Salary Increase
| 2006 Results
| 2007 Results
| Group
| Actual 2006
| Projected 2007
| Actual 2007
| Projected 2008
| Executive
| 4.5%
| 4.3%
| 4.7%
| 4.5%
| Management
| 4.2%
| 4.2%
| 4.3%
| 4.2%
| Exempt Salaried
| 4.1%
| 3.9%
| 3.9%
| 3.9%
| Non-Exempt Salaried
| 3.8%
| 3.9%
| 3.9%
| 4.2%
| Hourly/Production
| 3.6%
| 3.7%
| 3.7%
| 3.8%
| All Groups Average
| 4.0%
| 4.0%
| 4.1%
| 4.1%
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Results indicated that target awards for Short-Term Incentive Plans are much higher in Publicly-Traded and Privately-Held companies than in Not-for-Profit organizations. Overall, in terms of the Compensation Package Mix, Base Salary makes up the largest percentage of the mix, followed by Annual Bonus/Incentives, and the Long-Term Incentives. The majority of the survey participants do not have a pre-established Compensation Package Mix. Stock Appreciation Rights continue to be the least commonly used type of Long-Term Incentive Plan.
Companies should consider the following for the 2008 compensation year:
Ø Determine salary budget increase,
Ø Determine salary structure movement; and
Ø Evaluate incentive plans.
It is also important to remember that the total compensation package is not just about pay, it is also about the work culture, hours, benefits, career development, and promotional opportunities, and how they balance with the employee’s life outside the organization.
If you would like to order the complete report of the 2007 Year-End Compensation Survey, please contact Andrew Sellers at 877-934-0505 x115 or order online.
About Compensation Resources, Inc. (CRI): CRI provides compensation and human resource consulting services to mid-size and Fortune 500 clients, as well as public, private, not-for-profit, family-owned, and emerging companies, specializing in executive compensation, sales and incentive compensation, performance management, salary administration, and expert witness services.
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