Salary Increases for Mid-Atlantic Tech Companies Lowest in Decade

November 19, 2009 ( - 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.

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.

The survey was co-sponsored by regional technology councils and other membership-based organizations that serve the technology sector throughout the Mid-Atlantic region. A copy of the summary report is available for purchase at .