FreshView
a publication of Cascade Employers Association
APRIL 2011
Dollars & Sense Poll |
In This Issue:
- Are Salaries Rising in Oregon?
- Current Status on Employee Benefits - Wins and Losses
- How Do They Come Up With That Number? The Facts of Unemployment Tax Rates
- The Deadline Is Here; It's Time to Start Clicking!
- Did You Know?
Are Salaries Rising in Oregon?
By Jerry Bumgarner, CCP, Director of Research & Compensation Services
Cascade Employers Association
jbumgarner@cascadeemployers.com
Employers have been laying people off, freezing or reducing pay, and decreasing the size of salary increases during the last 2 - 3 years. So, would you say salary levels are rising or falling? Believe it or not, most researchers will tell you average salary levels are on the rise! Before you answer this question for yourself, consider the following points:
Cascade's Salary Budget Survey suggests that salary increases in Oregon will average 3.0% of base salaries in 2011 before adjusting for the affect of pay freezes and decreases (2.0% after adjusting).
70% of Oregon employers say they plan to give increases to employees in 2011...up 19% compared to 2010 (source: SalaryTrends.com).
According to a WorldatWork (worldatwork.org) study of over 2,700 organizations nationwide, 2011 salary increases are expected to average about 3.0% of base salaries.
- Oregon Employment Department research indicates that earnings in Oregon are rising. Between November and January alone, average hourly earnings rose 2.2% (from $21.55 to $22.03).
Market data clearly indicates that wages and salaries are rising...albeit slowly. Many employers are restoring pay reductions and lifting freezes, some are changing their pay strategies to include performance based variable/incentive pay components, and many are now requesting wage and salary plan support from Cascade. We believe this all points to renewed concern for maintaining competitive pay levels for attracting and retaining key talent.
Do you know for sure if your pay practices are ready to withstand increased competition for talent? Do you have access to the fresh, local pay data needed to evaluate your pay practices? To get started, why not participate in the 2011 Oregon Regional Pay Survey by SalaryTrends®. This may be as simple as updating your current data. Even if you plan to freeze or reduce pay, you will need to know the competitive impact of your decisions. Did I mention that SalaryTrends® data is FREE to Cascade members when they participate?
For further details, go to our website at SalaryTrends.com, e-mail us at surveys@salarytrends.com, or call us at 503-585-4320.
Current Status on Employee Benefits - Wins and Losses
By Jerry Bumgarner, CCP, Director of Research & Compensation Services
Cascade Employers Association
jbumgarner@cascadeemployers.com
With job growth in Oregon unexpectedly outpacing the rest of the nation*, a surprised group of employers are hiring and recruiting. It is still a mix of wins and losses in the marketplace, with many employers still struggling, and some growing faster than predicted. Take a minute to see what the current status of benefit offerings look like with information gathered directly from employers themselves.
About the Survey: For this survey, the Employer Associations of America received input from 2,300 companies nationally: 49.6% were from manufacturing, 13.5% were from wholesale/retail trade, financial and real estate, 29.9% from service, and 7.1% from other industries. The survey also represents all organization sizes, from 1-100 employees (49%), 101-500 employees (40.7%) and over 500 (10.3%). Data was collected between August and October of 2010.
The Employer Associations of America's National Policies & Benefits Survey of over 2,300 organizations nationwide shows employees have retained health benefits, but have lost ground in other employer-sponsored benefits. "Given the deep cuts in recent years, we weren't sure how benefits would be impacted. In spite of the recession, employers have retained most benefit plans in order to remain competitive," said Mary Lynn Fayoumi, an Employer Associations of America representative.
Health Benefits Improve Overall - Employers made minor changes to health benefits offered compared to the previous study in 2009. Employer contributions to preferred providers (PPOs) dropped less than 1% compared to 2009, and PPOs remain the most popular health insurance design. Health Reimbursement Arrangements (HRAs) are up from 11% to 13% of employers offering. Health Savings Accounts (HSAs) saw significant growth with a shift from 16% to 23% of employers offering them. There is a trend of more employers offering consumer-driven health plans with high deductibles to reduce costs and engage employees in making smart health care choices.
Corresponding with the increase in state legislation legalizing civil unions, benefits for domestic partners continue to become more prevalent. In 2007, 17% of employers offered domestic partner benefits as compared to 21% in 2009 and 25% in 2011.
Paid Time-Off Plans More Popular - Paid Time-Off (PTO) plans continue to increase in popularity. In 2011, 31% of the employers surveyed said they pool paid time off in a combined benefit format. This is up from 27% in 2009 and only 24% in 2007.
Retirement Benefits Trimmed - On the downside, fewer organizations now have guaranteed matches to 401(k) contributions. In fact, there has been a 10% decrease (from 58.6% to 48.8%) in those following a strict formula, while more organizations have moved to discretionary matches as budgets allow.
Employee Relations Cuts - Another area targeted for cuts is organization-sponsored activities. In the past two years, employers that offer activities like holiday parties, annual picnics, and retirement parties fell from 71% to 67%.
Holding steady at 78%, employee access to the Internet has not changed. However, 6% more employers are now using blocking mechanisms to limit access to specific sites and, only 35% allow access to social media sites at work.
The survey was conducted locally by Cascade Employers Association. For further details, go to SalaryTrends.com, e-mail your request to surveys@salarytrends.com, or call 503-585-4320.
* Information provided by the Oregon Employment Department
How Do They Come Up With That Number?
The Facts of Unemployment Tax Rates
By Elizabeth Fuss, Human Resource Consultant
Cascade Employers Association
efuss@cascadeemployers.com
Every November, you get that piece of paper in the mail with the new unemployment tax rate for your company. It feels arbitrary and out of your control. How do they come up with that number? What can you do to keep your unemployment tax rate under control?
Let's look at how they calculate that ever–increasing tax rate for businesses. The Employment Department uses your business' last three years of experience. They take the total charges to your account (unemployment costs for former employees) and divide that by your total taxable payroll. That gives them a benefit ratio, which they then compare to annually published Experience Rating Schedule to get your new tax rate.
Because the Employment Department uses three years of data, improving your UI tax rate is a slow and steady process. But don't give up! Remember, slow and steady wins the race. You can decrease your UI costs with a few important steps applied constantly and consistently.
Document, document, document! Documentation of employees' performance, attendance issues, behavior issues and policy violations can set the stage for a successful challenge of an unemployment claim.
Respond in a timely manner. The 10-day window that the state gives you to respond to an unemployment claim is not flexible and they generally will not make an exception if you make a mistake and don't respond.
Be detailed in your response. A blank response to the form 220 (Notice of Claim Filed) with your signature is not going to give the Employment Department enough information to make an informed decision. If you add detailed notes, attaching your in-depth documentation that you have from disciplinary meetings and write-ups, your chances of succeeding are much greater.
If you are a small business with low turnover, winning even one challenge is going to make a difference in your tax rate. If you are a larger business with high turnover, it is going to take some diligence and attention to detail to make sure you are following through with consistent best practices. Download our complimentary Webinar (11 mins.) for additional guidance.
It's a big task. But don't be overwhelmed. Cascade now offers Unemployment Claims Management Services. We can help you maneuver your terminations and discipline, respond to claims and participate in hearings on your behalf. Let us use our expertise to help make your Unemployment Tax Rate a little less painful.
The Deadline Is Here, It's Time to Start Clicking!
By Tina Hamel, Survey Coordinator
Cascade Employers Association
thamel@cascadeemployers.com
It is time to update your data in the Oregon Regional Pay Survey database. To ensure all data remains fresh for you and other survey users, all participants must update their data at least once every 12 months.
If you haven't participated yet, spring is a great time to join hundreds of other local employers who have submitted data and gained access to the competitive pay information you need.
Your pay information, whether you report for one job or twenty, is important to the validity of this ongoing survey. For survey details go to SalaryTrends.com or e-mail surveys@salarytrends.com to get your login information.
Did You Know?
Of employers (both union and non-union, with up to 100 employees) who offer tuition reimbursement as a benefit, the following conditions must be met: 38% of employers require that the courses be job related, 61% require that the course must be satisfactorily completed for reimbursement, and 65% of employers require the course to be pre-approved by a supervisor.
Are employees taking educational courses in your organization?
Any specific tuition reimbursement requirements you have as an employer should be in a policy that is easy to use and understand. Cascade Membership comes with sample policies that you can adapt as your own. Contact us for more information.
Look here each month for a specific policy or benefit practice and see how your practices compare to other employers just like you.
©2011 Cascade Employers Association. All rights reserved.
SalaryTrends® is a trademark of Cascade Employers Association.
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