2014 Livingston County Compensation Report & Benefits Survey Presentation Howell Area Chamber of Commerce Wednesday, September 24, 2014 Overview • Introduction • Disclaimers • Labor Market Information & Strategic Initiatives (LMISI) • Highlights of survey results & Take-Aways • Group discussion (not legal advice, not a CPA, not HCOC, not insurance rep, but an HR Pro) HOWELL AREA CHAMBER OF COMMERCE SEPTEMBER 2014 General Labor Market Overview and Industry and Occupational Wage Report Prepared by: Michigan Department of Technology, Management and Budget Bureau of Labor Market Information and Strategic Initiatives About Us • Bureau of Labor Market Information and Strategic Initiatives (LMISI), part of the Department of Technology, Management and Budget • Responsible for producing and publishing the “official” labor force statistics for the Michigan and regional areas throughout the state • LMISI collects, compiles, analyzes and publishes information on employment, unemployment, industries, occupations, wages, demographics, etc. Area Jobless Rate Falls Steadily since End of Recession, Remains Above 2008 Level 11.9% 12.6% 10.4% 9.1% 8.1% 6.7% 5.0% 2004 5.4% 2005 5.3% 2006 7.6% 5.6% 2007 2008 2009 2010 2011 2012 2013 2014 * Number of unemployed down almost seven percent since 2013, and nearly half the level it registered in 2010 About 6,900 unemployed residents in 2014 year-to-date, down from 11,300 in 2010. However, the number of unemployed remains above the 2008 level. MDTMB, Bureau of Labor Market Information, Local Area Unemployment Statistics Program (LAUS) * Indicates year-to-date average through July 2014 Total Private Payroll Jobs Continue to Rebound from Recessionary Losses 45,000 43,500 42,500 40,000 36,200 35,000 30,000 25,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total private payroll jobs had risen for three consecutive years since hitting a recent low of 36,200 in 2009. Much of the recent job growth is attributable to Retail Trade, Manufacturing, Professional and Business Services, and Transportation and Warehousing. MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2012 Note: 2013 job totals were available at time of publication but trends in some sectors were artificially high due to data coding issues Resident Earnings Higher than U.S. and State, Private Industry Wages Steady Per Capita Income Median Household Income Livingston County $32,100 $70,700 Michigan - Statewide $25,900 $48,300 Area Average Annual Industry Wages per Worker $38,774 $38,916 $38,648 $37,704 $36,835 United States $28,200 $52,300 $36,329 Following modest post-recessionary gains, total private wages have been largely stable since 2011. However, the county remains below Michigan’s $46,660 average in 2013. 2008 2009 2010 United States Census Bureau, American Community Survey, 2013 1-Yr estimates MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013 2011 2012 2013 Local Area Payroll Wages by Industry Sector, Share of Total Private 2013 Professional and Technical 9% Health Care and Social Assistance 12% Construction 8% Retail Trade 12% Manufacturing 25% Wholesale Trade 7% Finance and Insurance 6% Administrative and Waste 5% Transportation and Warehousing 4% Accommodation and Food 4% Other Total private wages paid in Livingston County totaled over $1.7 billion in 2013. 8% Total Wages in 2013 (in thousands) Average Weekly Wage in 2013 Manufacturing Retail Trade Health Care and Social Assistance $ 440,230 $ 199,467 $ 184,805 $ 1,118 $ 502 $ 730 Professional and Technical Services $175,545 $ 940 Construction $ 135,484 $927 Industry Sector MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013 Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data Notable Sectors Paying Above-Average Annual Wages per Worker Locally, 2013 $75,108 Private wages per worker in Livingston County averaged $38,650 annually in 2013. $58,151 $56,164 $54,416 $48,926 Wholesale Trade Manufacturing Finance and Insurance Transportation Professional and and Warehousing Technical services MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013 Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data $48,224 Construction Notable Sectors Paying Below-Average Annual Wages per Worker Locally, 2013 Private wages per worker in Livingston County averaged $38,650 annually in 2013. $37,973 $28,516 $26,627 $26,140 $20,443 $13,207 Health Care and Social Assistance Administrative Support and Waste Services Real Estate and Rental/Leasing Retail Trade Other Services MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013 Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data Accommodation and Food Livingston County New Hire Wages by Sector Compared to Average Annual Average New Hire Wages 2nd Quarter 2013 Annual Average Overall Wages 2013 Percent Difference Wholesale Trade $38,976 $75,108 93% Transportation and Warehousing $32,796 $54,416 66% Health Care and Social Assistance $24,612 $37,973 54% Retail Trade $18,096 $26,140 44% Manufacturing $41,352 $58,151 41% Information $41,112 $56,045 36% Accommodation and Food Services $10,116 $13,207 31% Construction $38,088 $48,224 27% Administrative Support & Waste Services $23,064 $28,516 24% Arts, Entertainment, and Recreation $14,580 $18,105 24% Finance and Insurance $48,420 $56,164 16% Professional, Scientific & Technical Services $44,508 $48,926 10% Industry Source: U.S. Census Bureau, Local Employment Dynamics MDTMB, Bureau of Labor Market Information, Quarterly Census of Employment & Wages (QCEW) program, Livingston County 2013 Note: Wages for some sectors have been altered from published estimates due to non-economic adjustments in the QCEW data Wage Differences by Gender Remain Apparent in Livingston County $60,000 $50,000 Females Males $52,728 $40,000 $31,800 $31,092 $30,000 $20,000 $20,052 $10,000 $0 New Hires (2rd Q 2013) Source: U.S. Census Bureau, Local Employment Dynamics Total Private (2nd Q 2013) Other Wage Characteristics of the Region Average Hourly Pay, 2010* Time Incentive Full-time workers are making almost twice the hourly wage as part timers, while working twice as many weekly hours. Workers who earn based on incentive pay make 43 percent more per hour, while working the same number of hours per week, on average. $25.69 Full Time Part Time $13.76 $23.25 $33.35 Source: Bureau of Labor Statistics, National Compensation Survey , March 2010, Detroit CMSA (includes Livingston County) * Data from this survey has yet to be updated since the 2012 Livingston County report, but is included here as a point of reference due to the unavailability of similar wage measures in other BLS data sources. Other Wage Characteristics of the Region (Continued) Average Hourly Pay by Union Classification Average Hourly Pay by Business Size $27.99 $22.39 Union Non-Union $19.30 99 Workers or Less $31.78 $21.16 100 to 499 Workers 500 Workers or More • Union workers earned 25 percent more per hour than non-union workers locally while averaging 3 more hours worked per week. • Small businesses paid workers on par with medium-sized firms, though large companies paid employees over $10 more per hour, on average. Source: Bureau of Labor Statistics, National Compensation Survey , March 2010, Detroit CMSA (includes Livingston County) * Data from this survey has yet to be updated since the 2012 Livingston County report, but is included here as a point of reference due to the unavailability of similar wage measures in other BLS data sources. Median Hourly Wages for Selected Occupations in the Area, 2013 Median Hourly Wage Mechanical Engineers $43.26 Registered Nurses $33.33 Accountants and Auditors $31.06 Wholesale Sales Reps $26.30 Computer Support Specialists $20.66 Machinists $19.42 Heavy Truck Drivers $19.00 Bookkeeping and Accounting Clerks $17.54 Customer Service Reps $14.65 Team Assemblers $14.87 Retail Salespersons $10.13 Source: MDTMB, Bureau of Labor Market Information, Occupational Employment Statistics (OES) program, May 2013 The median wage for all occupations in the region was $17.38 in 2013, unchanged from 2012. Entry-Level and Top Pay Ranges for Selected Occupations, 2013 Professional and Healthcare Median Wage Entry-Level Wage (Lower Bound) Entry-Level Wage (Upper Bound) Top-Level Wage (Lower Bound) Top-Level Wage (Upper Bound) Accountants and Auditors $31.06 $19.19 $23.51 $39.94 $52.96 Computer Support Specialists $20.66 $12.97 $16.32 $27.11 $35.12 Mechanical Engineers $43.26 $29.71 $36.29 $52.01 $58.15 Registered Nurses $33.33 $24.80 $29.23 $38.16 $44.54 Median Wage Entry-Level Wage (Lower Bound) Entry-Level Wage (Upper Bound) Top-Level Wage (Lower Bound) Top-Level Wage (Upper Bound) Retail Salespersons $10.13 $8.03 $8.69 $13.27 $19.16 Wholesale Sales Reps $26.30 $12.22 $18.06 $39.05 $56.46 Retail Supervisors $18.11 $11.35 $14.08 $23.99 $31.62 Occupation Sales and Related Occupation Source: MDTMB, Bureau of Labor Market Information, Occupational Employment Statistics (OES) program, May 2013 Entry-Level and Top Pay Ranges for Selected Occupations, 2013 Office and Administrative Occupation Median Wage Entry-Level Wage (Lower Bound) Entry-Level Wage (Upper Bound) Top-Level Wage (Lower Bound) Top-Level Wage (Upper Bound) Bookkeeping /Accounting Clerks $17.54 $10.70 $13.96 $21.65 $26.46 Customer Service Reps $14.65 $9.07 $11.29 $18.64 $23.57 Receptionists/Information Clerks $12.66 $8.71 $10.23 $15.31 $18.42 Median Wage Entry-Level Wage (Lower Bound) Entry-Level Wage (Upper Bound) Top-Level Wage (Lower Bound) Top-Level Wage (Upper Bound) Team Assemblers $14.87 $8.98 $10.67 $18.62 $26.59 Machinists $19.42 $11.56 $15.14 $25.34 $31.48 Heavy Truck Drivers $19.00 $12.91 $15.45 $22.07 $25.95 Production and Transportation Occupation Source: MDTMB, Bureau of Labor Market Information, Occupational Employment Statistics (OES) program, May 2013 For more information, visit our website at: http://www.milmi.org or call our main office at: (313) 456-3090 CONTACT US Michigan Department of Technology, Management and Budget Bureau of Labor Market Information and Strategic Initiatives 2014 Livingston County Compensation Report & Benefits Survey Presentation Howell Chamber of Commerce Wednesday, September 24, 2014 65 Total Survey Participants in 2014 • Employers and Employees more focused on career path and professional development than ever before Now (still) Hiring! Last 12 Months 65% Expanded Employee Count Last 12 Months 31% No Change 4% Reduced 0% 10% 20% 30% 40% 50% 60% 70% • In 2012, less than 45% planned to increase head count • Since 2009, there’s been a 65% increase in the time it takes to fill a job! Employers View of Important Retention Factors Compensation (salary/pay) Benefits Work/Life balance Company Culture Training & Development Other Responses 32 21 19 18 6 3 Response % 59% 39% 35% 33% 11% 6% • Average EE contribution single coverage is 18% ; $90/month or $1085/annually (LivCo average EE contribution is slightly higher) • Average EE contribution for family coverage is 28%; $402/month or $4,823/month (as a %, LivCo EE contributions are higher) Benefit Changes in 2014 Benefit Plan Changes in 2014 Increased Deductibles 10 Increased EE premium contribution 18 Decreased medical plan options 6 Eliminated medical coverage completely 1 Eliminated dental or vision coverage 1 Increased medical plan options 11 None 27 Other 8 0 5 10 15 20 25 30 Increased EE Contributions Key Benefit Related Statistics • • • • • • • • Avg Deductible in 2014 = $1,217 ($584 in 2006) Enhancements to PTO plans Health Reform Projections Creative funding strategies Low cost but high impact plans Education and engagement Financial wellness Benefit Committees Ideas Worth Sharing? • • • • • • • • Wellness Programs Enhancements to PTO plans Part-Time Benefits and utilization of P/T folks Domestic Partner Benefits (9 or 14%) Expanded Maternity Leave? Formal Paternity Plan/Benefit? Change in approach to medical marijuana Other? Resources • • • • • www.kff.org www.payscale.com www.monster.com www.careerbuilder.com ww.metlife.com/business/insightsand-tools/index.html • www.shrm.org • www.mercer.us • www.worldatwork.org Questions or Comments? Thank you! Steve Williams www.ectohr.com 810.534.0170 office [email protected]
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