FreshView
a publication of Cascade Employers Association
AUGUST 2012
Dollars & Sense Poll |
In This Issue:
- Evergreen Pay Surveys … Making Your
Job Easier! - Survey Spotlight
- FreshView on Compliance
- Can I Automatically Enroll My Employees
in the 401(k) Plan?
Evergreen Pay Surveys…Making Your Job Easier!
By Jerry E. Bumgarner, CCP
Director, Research and Compensation Services
jbumgarner@cascadeemployers.com
If you are like most employers, you struggle with the seemingly endless barrage of requests to participate in and purchase market pay surveys each year. Given the amount of work and costs involved, we know you have to be selective about to which surveys you will devote your limited time and resources.
With traditional surveys, employers are forced to participate within a narrow window of time … your schedule is not considered and tough luck if you miss the survey “deadline.” If you miss the deadline you end up having to pay the higher non-participant price to get the survey results and then must wait until the next year to participate. Then there is the fact that each year you have to start from scratch determining which of your jobs match and entering the required company data. Have you ever wondered why they don’t retain what you reported last year and include it the current year's questionnaire for you to update? Finally, when you do get the survey results the data is 3 to 4 months old … so you have to go through the complex process of aging the data to a common date. You end up having to do a lot of work for questionable data validity.
At Cascade, we understand that recruiting and retaining the right people requires that you have accurate market pay data. But, we also understand your time is scarce and your financial resources are limited. The “Evergreen” survey platform from SalaryTrends® was designed with you, the survey participant and user in mind. Our goal is to make your job easier. Since early 2010 our Oregon Regional Pay Survey has been using the Evergreen survey platform to accomplish this objective.
"I've been using market surveys for years and have never experienced a participation system as friendly and flexible as SalaryTrends®. You've just made my job much easier!"
– Glenda Goodrich, Director of HR, Organically Grown Company
Our innovative Evergreen online survey system has been bringing fresh, accurate and carefully scrutinized regional market pay data to Oregon area employers for nearly three years now. Among the attributes that make this survey easier for employers are:
- Your prior input is retained in the online questionnaire to make it easy for you to update
- Your schedule takes priority … You can enter and update your data 24/7/365
- Data is aged from participant entry dates to a common date and allows you to age it to a future date
- The data aging formula is determined by experts based on current market trends
- New survey participants can be added any time which helps to strengthen data validity
- It supports a strong sample and data validity because it is easy to update data
While there is a place for both Evergreen and the more “traditional” window period surveys, we believe the Evergreen approach is the best for the large scale recurring annual benchmark surveys (e.g., Oregon Regional Pay Survey). Since introducing our Evergreen platform in 2010 our employer participation (which is critical to data validity) has increased more than 40%. In addition, based on the growing interest among employer associations who conduct large local/regional surveys throughout the U.S., Evergreen appears to be the model of the future for large ongoing market pay surveys. At Cascade, the future has already arrived.
"Great system! Easy to follow and update. Thank you for making my job so much easier."
– Greg Cole, HR Manager, Black Butte Ranch Corp.
You’re the customer! We encourage you to go to SalaryTrends® and check out the Oregon Regional Pay Survey and decide if you agree that the Evergreen platform makes your job easier. Cascade members who submit data for the Oregon Regional Pay Survey receive a free annual subscription to a suite of surveys, including an easy to use custom report tool and a copy of our National Executive Compensation Survey. All other participants receive substantial discounts for participating. Enter your pay data now to start getting the valid market pay information you need to support your employee recruitment and retention goals.
Survey Spotlight
By Tina Hamel, Survey Manager
thamel@cascadeemployers.com
SalaryTrends® surveys from Cascade Employers Association cover the pay practices of diverse organizations from various markets (Oregon, SW Washington, Northwest Regional, and National), and include multiple relevant data summaries. These valuable tools enable users to evaluate their competitiveness within specific talent markets.
Open for Participation:
- National Salary Budget Survey (Participate Now!)
- Oregon Regional Pay Survey (Always Open)
Opening for Participation in September:
Contact us with questions at surveys@salarytrends.com.
FreshView on Compliance
By Jenna Reed, JD, MBA
Director, HR & Compliance Services
jreed@cascadeemployers.com
Question: What is the smallest amount of time an employer can use to track FMLA?
Answer: Believe it or not, under the federal Family and Medical Leave Act, an employee may be able to take a six-minute leave of absence!
Section 825.203 (d) of the regulations states, “There is no limit on the size of an increment of leave when an employee takes intermittent leave or leave on a reduced leave schedule. However, an employer may limit leave increments to the shortest period of time that the employer’s payroll system uses to account for absences of use of leave, provided it is one hour or less.”
If you have any further questions on the often confusing subject of family leave,
give us a call!
Can I Automatically Enroll My Employees in the 401(k) Plan?
By Curtis Farmer
Director, Group Benefit Programs
cfarmer@cascadeemployers.com
A question frequently asked by employers is whether or not they can automatically start 401(k) accounts for their employees and take deferrals from their paychecks without getting their signature on the necessary paperwork. The answer to that question is yes, you can, but there are certain steps you will need to take to make sure you are doing it in the right way.
An automatic enrollment provision on a 401(k) plan can be an extremely effective tool in raising participation levels in your retirement plan. The Department of Labor estimates that approximately 30% of eligible workers today do not participate in their employer-sponsored plan and that automatic enrollment could lower that number to 15% on average. By increasing your participation in the plan, you are not only helping your employees save for their retirement in a tax-advantaged environment, but there are also some potential gains to be made for organizations struggling with non-discrimination testing required in many defined contribution plans.
To establish an automatic enrollment feature in your 401(k) plan, you will need to amend your existing plan document to allow for the enrollment provision. When adopting this type of plan, you have three choices: (1) A “basic” automatic enrollment plan, (2) an Eligible Automatic Contribution Arrangement (EACA) or (3) a Qualified Automatic Contribution Arrangement (QACA).
While these three types of plans are similar, each comes with its own requirements and will need to be investigated before making your choice. You must also notify employees in advance of the first automatic deferral and annually thereafter in order to give them a chance to make decisions about their plan should they choose to make a different election. Employees can opt out of automatic enrollment by completing an election form stating that they either do not wish to participate or that they would like to participate at a different dollar amount than what the employer designates. For those automatically enrolled without a positive election form, their money will be invested in a default investment choice – typically one that meets the qualifications to be a Qualified Default Investment Alternative, or QDIA. A QDIA is typically a balanced mutual fund or target date investment that allows for moderate growth over the life of the employee.
For more information on these types of plans or to learn more about Cascade’s 401(k) solution for its Members, please contact Curtis Farmer.
©2012 Cascade Employers Association. All rights reserved.
SalaryTrends® is a trademark of Cascade Employers Association.
4068 Hudson Avenue, N.E. Salem, OR 97301
Salem 503.585.4320 Portland 503.224.5219 Toll-Free 800.535.5518
cascadeemployers.com
Send a message to: Cascade