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Benefits November 19, 2009
Salary Increases for Mid-Atlantic Tech Companies Lowest in Decade
November 19, 2009 (PLANSPONSOR.com) - The KnowledgeBank 2009-2010 Total Compensation Survey of Mid-Atlantic Technology Companies found that in 2009, the average actual salary adjustments were 2.4%, significantly less than the 2008 actual adjustment of 4.2% and the projected 4.5% for 2009 reported in last year’s survey.
Reported by Rebecca Moore
For 2010, survey participants are projecting an average
salary adjustment rate of 3.2%. According to a KnowledgeBank press release, these
numbers are at historic lows for the past decade.
The survey found that in 2009, 90% of executives received
some form of short term incentive; 62% received a cash bonus, 48% stock options,
and 37% a cash incentive payment. In addition, 29% of all companies in the
survey provided stock options to all employees.
The findings also revealed that responding companies
embrace flexible human resources: 86% provide for flexible work schedules and
casual dress; 70% encourage telecommuting and/or provide special recognition
awards; and 63% pay new hire bonuses for referrals.
The majority of survey participants provide health care
coverage for employees (96%) and/or families (94%), and cost sharing between
employer and employee remained fairly constant at 80/20 for single coverage and
65/35 for family coverage. In addition, employers are continuing to adopt
alternative consumer-driven health care options that include health savings
accounts (HSAs) and health reimbursement accounts (HRAs).
Other common benefits provided to 75% or more of
full-time employees include group term life insurance, vision care, 401(k)
retirement savings plans, prescription drug coverage, dental care and
LTD&STD. In addition, tuition reimbursement plans and EAP benefits were the
fastest growing benefits offered by the participants.
KnowledgeBank collected data for the survey in September
and October 2009 from 100 firms with total employment of 51,076 and incumbent
pay data for 6,905 employees. The summary report provides data on base salary,
cash incentive, and total cash compensation for 35 key positions typically
found in technology companies, ranging from the CEO to software developer,
network engineer and customer service specialist. Included in the report is an
article written by Jeff White, president with mySBX, a Northern Virginia-based
business collaboration and resource planning network firm, who discusses the
outlook for the Mid- Atlantic technology sector in 2010.