Compensation Studies
GFOAZ Conference
February 16, 2012
Patty Goodwin
Director of Surveys
pgoodwin@msec.org
Who is MSEC?
• Founded in 1939 to serve the needs of the
business community.
• MSEC membership includes over 3,000
employers in the Rocky Mountain Region.
• Began conducting compensation and personnel
practices surveys in 1947.
• Over 300 surveys and special reports are
conducted and published annually for MSEC
members.
Quality of Survey Reports
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Publication Organization
Methodology
Definition of Terms
Reported Statistics
Survey Publication Data
Salary surveys are a part of the
compensation design process
Quality of Survey Reports
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Participant Base
Job Matches
Sample Size
Trends
Customized Reports / Extracts
Salary surveys are a part of the
compensation design process
Salary Web Sites
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Host of the Site
Purpose of the Site
Customer – Employer or Applicant/Employee?
Data Sources and Methodology
Unemployment Rates
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
AZ
4.2%
5.2%
6.1%
5.8%
5.0%
5.0%
4.2%
4.0%
6.7%
9.6%
9.7%
9.4%
US
3.9%
5.0%
5.7%
6.1%
5.4%
5.0%
4.5%
4.7%
6.2%
9.8%
9.6%
9.0%
Source: U.S. Bureau of Labor Statistics
Arizona Jobs by Industry
Net Annual % Change in Jobs from Dec 2010 – Dec 2011
Projected Job Gains/Losses 2010 to 2012 (Percent)
Education/Health Services
Leisure /Hospitality
2.1
-0.1
2.8
-0.9
0.7
-2.5
3.0
-3.8
0.3
-3.0
-2.0
-1.0
2010 to 2012
12-10 to 12-11
2.8
0.9
0.8
Financial
-4.0
4.0
1.8
Trade/Transportation/Utilities
-5.0
4.7
2.1
Natural Resources & Mining
Professional/Business Services
5.8
2.5
Manufacturing
Construction
8.3
3.6
0.0
Information/Telecommunications
Government
1.0
2.0
Source: Arizona Department of Administration
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
National Employment Projections
Construction
6,786
Manufacturing
17,263
2000
Leisure & Hospitality
11,862
Government
20,790
15,109
HealthCare/Education
5,525
11,524
13,020
2010
22,481
19,564
7,365
11,451
2020 Proj
14,362
23,751
26,023
Source: U.S. Bureau of Labor Statistics
Employment Cost Index (ECI)
12 Months Ended
Wages & Salaries
Dec 2010
Dec 2011
Private Industry Workers
1.8%
1.6%
Manufacturing 1.7%
1.8%
Service-providing industries
1.8%
1.6%
Mountain Region 1.6%
1.3%
State/Local Government Workers
1.2%
1.0%
Phoenix
1.6%
2.0%
Total Compensation
Private Industry Workers
2.1%
2.2%
Manufacturing 2.8%
Service-providing industries
2.0%
Mountain Region 1.6%
State/Local Government Workers
1.8%
1.3%
Source:Phoenix
Bureau of Labor Statistics
2.3%
2.8%
2.8%
2.0%
2.2%
Consumer Price Index
Pay Increases vs. CPI
Phoenix
2010
Proj 11
Proj 12
5.0%
4.0%
Pay Incr
1.1%
1.8%
2.3%
Phnx CPI
US CPI
0.6%
1.6%
2.2%
3.2%
%
2.3%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
2003
2004
2005
CPI - Phoenix
2006
2007
CPI - U.S.
Source: Bureau of Labor Statistics; MSEC Surveys
2008
2009
Phoenix
2010
Proj
2011
Proj
2012
Pay Increase Comparison
3.0%
2.5%
2.0%
1.5%
1.0%
Actual 2009
Actual 2010
Actual 2011
Proj 2012
Metro Phoenix
1.6%
1.1%
1.8%
2.3%
Metro Denver
1.7%
1.7%
2.2%
2.4%
Aon Hewitt National
1.9%
2.4%
2.7%
2.9%
Mercer National
2.1%
2.7%
2.9%
3.0%
WorldAtWork National
2.2%
2.5%
2.8%
2.9%
Increases include pay freezes.
Source: MSEC Compensation/Planning Packet Surveys
Pay Freezes
50%
40%
30%
20%
10%
0%
Actual 2009
Actual 2010
Actual 2011
Proj 2012
Metro Phoenix
44%
40%
49%
25%
Metro Denver
40%
39%
29%
23%
Aon Hewitt National
48%
21%
5%
4%
WorldAtWork National
43%
10%
3%
3%
Source: MSEC Compensation/Planning Packet Surveys
Primary Basis for Pay Increases
80.0%
60.0%
40.0%
20.0%
0.0%
Merit
Across-the-Board
COLA
No established policy
CO Govt w/o Utilities
69%
7%
8%
1%
CO MFG
74%
15%
CO NONMFG
72%
11%
5%
7%
CO NonProfit
66%
9%
12%
9%
Arizona
70%
15%
6%
6%
Data extracted from 2011 MSEC Miscellaneous Benefits/Pay Practices Survey.
10%
2011 Arizona Benchmark
Compensation Survey
• Survey Summary
• Wage Summary
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Jobs Surveyed:
379
Job Published:
49
# Participants:
27
# Employees Reported:
1,306
Data Effective:
3/1/2011
Data Collected:
– Base Salaries
– Formal Range Structure
– Annual 2010 Incentive Paid
– Target Bonus %
– Exemption Status
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Executive
– 5 positions published
– Average salary $151,063
Managers/Supervisors
– 10 positions published
– Average salary $66,533
Professional
– 11 positions published
– Average salary $56,140
NonExempt
– 16 positions published
– Average $38,158
Hourly Production/Maint.
– 7 positions published
– Average wage $33,888
Employer Costs
Per Hour Worked
Source: Bureau of Labor Statistics Third Quarter 2011
Employer Costs
Percent of Total Compensation
Source: Bureau of Labor Statistics Third Quarter 2011
2012 Staffing Plans
Data extracted from MSEC 2011 Planning Packet; data effective August 2011.
2012 Cost Reduction Efforts
Data extracted from MSEC 2011 Planning Packet; data effective August 2011.