2011-2012 Salary Increase/ Merit Budget Survey Results

For the next few weeks, I will review salary increase/ merit budget survey results for 2011 – 2012. The 2012 salary increase budgets are projected by the survey participants. WorldatWork (www.worldatwork.org) is a not-for-profit organization providing education and research focused on global human resources issues including compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce.

According to results from the annual 2011 – 2012 WorldatWork Salary Budget Survey, the overall total salary budget increase figures up by 10% to 2.8% for 2011. The salary budget for all employee groups (Executives, Exempt, and Non-exempt Hourly) is exactly the same for 2012. The projected mean is 2.9% and the mean is 3.0%.

Here are the salary increase budget figures by Type of Increase for 2012:

Type of Increase Projected 2012
Mean Median
General Increase/COLA 1.7% 2.0%
Merit Increase 2.8% 3.0%
Other Increase 0.9% 0.5%
Total Increase 2.9% 3.0%

Note: Various categories do not add to “Total Increase” because not every organization provides all three types of Increase

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Published in: on July 11, 2011 at 2:34 am  Leave a Comment  

IRS Increases Mileage Rate to 55.5 Cents per Mile

The IRS increased their mileage rate to $0.555 per mile.  This is the rate that most employers use to reimburse their employees for their business miles.  In light of rising gas prices, this is good news for those employees who log many business miles.  For additional information, please refer to www.IRS.gov.  Here is the IRS press release:

IRS Increases Mileage Rate to 55.5 Cents per Mile

IR-2011-69, June 23, 2011

WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

“This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices,” said IRS Commissioner Doug Shulman. “We are taking this step so the reimbursement rate will be fair to taxpayers.”

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes (in Cents)

Purpose Rates 1/1 through 6/30/11    Rates 7/1 through 12/31/11 
Business

51

55.5

 Medical/Moving    

19

23.5

Charitable

14

14

Published in: on June 29, 2011 at 12:20 pm  Comments (3)  

NACE 2011 Survey Results: Intern Hiring Up 7 Percent and 2011 Hourly Rates

According to results of a recent survey conducted by the National Association of Colleges and Employers (NACE), Employers expect to hire 7 percent more interns for 2010-11 than they hired in 2009-10.  Ninety-three percent of employers responding to the NACE 2011 Internship & Co-op Survey reported plans to hire college students for internship positions.  Most organizations plan to pay their interns.  Here are some of the survey findings:

  • Bachelor’s degree students taking part in internships will earn an average of $16.68 an hour
  • At the master’s degree level, the average hourly rate is $24.21
  • Both overall averages are down marginally from last year’s averages—$17 and $24.29, respectively
  • Intern salaries fluctuate greatly depending on major, year of study, industry, and other factors
About the NACE 2011 Internship & Co-op Survey: http://www.naceweb.org/Press/Releases/Intern_Hiring_Up_7_Percent;_Salaries_Stable.aspx?referal=pressroom&menuid=104
Published in: on April 10, 2011 at 7:08 pm  Leave a Comment  

SEC Adopts Rules for Say-on-Pay and Golden Parachute Compensation as Required Under Dodd-Frank Act

The Securities and Exchange Commission adopted rules concerning shareholder approval of executive compensation and “golden parachute” compensation arrangements as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The SEC’s new rules specify that say-on-pay votes required under the Dodd-Frank Act must occur at least once every three years beginning with the first annual shareholders’ meeting taking place on or after Jan. 21, 2011. Companies also are required to hold a “frequency” vote at least once every six years in order to allow shareholders to decide how often they would like to be presented with the say-on-pay vote. Following the frequency vote, a company must disclose on an SEC Form 8-K how often it will hold the say-on-pay vote.

Under the SEC’s new rules, companies also are required to provide additional disclosure regarding golden parachute compensation arrangements with certain executive officers in connection with merger transactions.

The Commission also adopted a temporary exemption for smaller reporting companies (public float of less than $75 million).  These smaller companies are not required to conduct say-on-pay and frequency votes until annual meetings occurring on or after Jan. 21, 2013.

The SEC rules largely mirror the proposed ones.   The revisions in these rules:

  • Delay the general effective date of Jan. 21, 2011 to Jan. 21, 2013, for smaller reporting companies
  • Clarify that the votes have to occur only at shareholder meetings where directors are elected
  • Give companies more time to report shareholder votes and management’s voting-frequency decisions, using Form 8-K instead of Form 10-Q
  • Allow a company to exclude shareholder say-on-pay proposals only if it adopts the voting frequency backed by a majority (not a plurality) of shareholders.

For more information:

SEC Press Release: http://sec.gov/rules/final/2011/33-9178.pdf

Published in: on March 16, 2011 at 3:27 pm  Comments (63)  

2010 Benefits for Part-Time Employees Survey Results

Nearly all (98%) employers report that their organization offers part-time work, and over one-third of these companies report that more than 10% of their workforce are part-time employees, according to a recent survey of Benefits for Part-Time Employees by BLR. The current survey, which garnered 1,100 responses, was conducted by BLR’s HR Daily Advisor in November 2010.

Some of the other survey findings:

  • About 85% of companies provide prorated holidays and vacation to their part-time workforce

 

  • Categories of prorated benefits provided to eligible part-time employees:
    • 85% of companies offer Vacation
    • 84% of companies offer Holidays
    • 60% of companies offer Paid Sick Leave
    • 52% of companies offer Health Insurance
    • 39% of companies offer Life Insurance
    • 84% of companies offer Other Benefits (Paid Time Off, Dental, and 401(k)

 

  • Minimum hours worked per week to be eligible for prorated benefits:
    • 35% of organizations require employees to work at least 30 hours per week
    • 40% of organizations require employees to work at least 20 hours per week
    • 4% of organizations require employees to work at least 10 hours per week
    • 3% of organizations’ employees work less than 10 hours per week
    • 18% do not offer benefits to part-time employees

 

  •  59% of companies offer a 401(k) Plan to part-time employees

 

  • 43% of companies offer an Incentive/Bonus Plan to part-time employees

 

Source:  Benefits for Part-Time Employees, BLR HR Daily Advisor November 2010.

Published in: on January 16, 2011 at 11:29 pm  Leave a Comment  

Minimum Wage Increases for 2011

There are 10 states (AZ, CO, FL, MO, MT, NV, OH, OR, VT, and WA) that have minimum wages that are linked to a consumer price index. As a result of this linkage, the minimum wages in these states are normally increased each year, generally around January 1st.   On January 1, 2011, there were seven states that increased their respective minimum wages.    Arizona, Colorado, Montana, Ohio, Oregon, Vermont and Washington are the seven states planning to raise minimum wage rates on January 1, 2011.    The three exceptions were Florida, Missouri and Nevada.

The new 2011 rates are:

Arizona = $7.35

Colorado = $7.36

Montana = $7.35

Ohio = $7.40

Oregon = $8.50

Vermont = $8.15

Washington = $8.67

Here is some additional information about minimum wage rates in the United States:

  • The state minimum wage rate requirements, or lack thereof, are controlled by legislative activities within the individual states.
  • Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage.  
  • In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails.
  • There are 4 states than have a minimum wage set lower than the federal minimum wage.
  • There are 17 states (plus DC) with minimum wage rates set higher than the federal minimum wage.
  • There are 24 of the states that have a minimum wage requirement that is the same as the federal minimum wage requirement.
  • The remaining 5 states do not have an established minimum wage requirement.
  • The State of Washington has the highest minimum wage at $8.67/hour.
  • The states of Georgia and Wyoming have the lowest minimum wage ($5.15) of the 45 states that have a minimum wage requirement.
Published in: on January 9, 2011 at 7:05 pm  Leave a Comment  
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Clarifying California Overtime Pay Rules

I continue to get a question on how to pay overtime.  There are five overtime zones that every employer should understand.
 
Nonexempt employee are entitled to time and one-half for:
  • Over 8 hours of work in a work day
  • Over 40 hours of work in a work week
  • The first 8 hours of work on the seventh consecutive day of work in a work week
  • 

In addition, nonexempt employee are entitled to double-time for:
  • Over 12 hours of work in a work day
  • Over 8 hours of work on the seventh consecutive day of work in a work week
Published in: on October 28, 2010 at 10:01 pm  Leave a Comment  
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Manpower Talent Shortage Survey 2010

Manpower Inc. surveyed over 35,000 employers across 36 countries and territories during the first quarter of 2010 to determine the impact of talent shortages on today’s labor markets. The results of the fifth annual Talent Shortage Survey revealed that 31 percent of employers worldwide are having difficulty filling positions due to the lack of suitable talent available in their markets, which is an increase of one percentage point over last year’s survey. 

The top 10 jobs that employers are having difficulty filling across the 36 countries and territories surveyed are (ranked in order):

  1. Skilled Trades
  2. Sales Representatives
  3. Technicians (primarily production/operations, engineering or maintenance)
  4. Engineers
  5. Accounting & Finance Staff
  6. Production Operators
  7. Secretaries, Administrative Assistants & Office Support Staff
  8. Management/Executives
  9. Drivers
  10. Laborers

2010 U.S. Hardest Jobs to Fill:

  1. Skilled Trades
  2. Sales Representatives
  3. Nurses
  4. Technicians
  5. Drivers
  6. Restaurants & Hotel Staff
  7. Management / Executives
  8. Engineers
  9. Doctors
  10. Customer Service Representatives

Source:  Manpower Talent Shortage Survey 2010

Published in: on October 1, 2010 at 10:40 am  Leave a Comment  

Projected Executive Compensation Merit Increases for 2011

Projected 2011 salary budget figures for Officers and Executives has increased over Actual 2010 figures:

                        Actual 2010                      Projected 2011

                        Mean: 2.5%                           Mean: 3.0%

                        Median: 2.7%                       Median: 3.0%

Source: WorldatWork Salary Budget Survey 2010-2011

Published in: on September 27, 2010 at 2:58 pm  Leave a Comment  

Projected Salary Increase Budgets for 2011 (part 2)

WorldatWork recently published Top-level data for their 2010-2011 Salary Budget Survey.  Here are the survey results for the Projected 2011 Total Salary Budget Increases by Employee Category:

Employee Category Mean Median
Non-exempt Hourly (Non-union) 2.9% 3.0%
Non-exempt Salaried 2.9% 3.0%
Exempt Salaried 2.9% 3.0%
Officers/Executives 3.0% 3.0%

Source: WorldatWork 2010-2011 Salary Budget Survey: Top-Level Data published July 6, 2010

Published in: on July 26, 2010 at 9:45 pm  Leave a Comment