Compensation Considerations:
What Will The Next Year Bring?

 

During this current recession, over one quarter of employers have been forced to implement salary freezes and reductions in both staff and expenses to maintain their competitive advantage. However, predictions for 2010 indicate a reverse trend, with companies forecasting more positive salary changes next year.

 

The 2009 – 2010 Salary Budget and Planning Survey, administered by Culpepper & Associates utilizing data from 835 organizations worldwide, has noted the following positive changes in the transition from 2009 to 2010:

 


Notes: This data was collected from the 2009-2010 Salary Budget & Planning Survey.

 

How prevalent are salary changes?

  • In 2009, 37% of companies surveyed froze salaries.
  • In 2010, 13% of companies expect to maintain a salary freeze.
  • By the end of 2009, 23% of companies who currently have frozen salaries plan to unfreeze them.

 

Will there be salary reductions?

  • 13% of companies surveyed admitted that they cut salaries in the last 12 months.
  • 1/3 of these companies plan to increase salaries by the end of 2009.
  • Base salary increases in the U.S. are estimated to rise in 2009 from 1.66 percent to 2.68% in 2010. Salary increases in the U.S. are projected to rise slightly from 3.05% in 2009 to 3.08% in 2010 without including freezes.

 

What plans exist to unfreeze salaries?

  • 28 % plan to unfreeze salaries before the end of 2010.
  • 4 % plan to continue freezing salaries through the end of 2010.
  • 45 % of companies are uncertain when they will unfreeze salaries.

 

What percentage of companies in the United States will increase base salaries?

  • In 2009, base salaries were reported at 1.66%.
  • In 2010, base salaries are expected to increase to 2.68%.
  • Also in 2010, salary increases are expected to rise from 3.05% in 2009 to 3.08% (excluding freezes).

 

What alternatives to salary increases are companies providing to their employees?

  • Excellent benefits including health care.
  • Opportunities to network (paid time and payment for the actual cost of attending networking events).
  • Performance-based pay (bonuses & commission for additional projects).

 

For additional information regarding compensation trends, visit this site.

 

Call Lauren Faig at Helios HR to enhance your Compensation and Benefit programs at 703.860.3882 x102.

 

 

Health Care Trending: Who Has The Crystal Ball?

During the budgeting process for the new year, have you questioned, “Will our 2010 health care costs increase or decrease?” Before answering this, it is important to take a look at past health care trends.

 

Over the past decade, health care costs have increased at a steady rate, causing much concern among employers. Employers have been faced with health care premiums that have doubled since 1999 with an average increase of 6% in 2008 and again in 2009. The following statistics from the 2009 Kaiser/HRET Survey can help to assess how your business has been affected in comparison to other organizations.

 

The 2009 Kaiser Family Foundation annual survey concluded that US workers who receive health care insurance through their employers averaged costs of $3,515 in 2009, while employers averaged a whopping $9,860 as shown in the chart below. Since health care costs are expected to rise an additional 9-10% during 2010, employers and employees alike have begun to research other options to plan the best way to minimize this impact.

 

 

What does this mean for employers?

Companies have pushed health care costs to their employees during the past few years, partly due to the current recession. Results from the Kaiser Family Foundation survey have concluded that 21% of the 2,054 firms surveyed throughout the United States that offered benefits to workers admitted to "very likely" raising employees' premium costs for 2010. When the same companies were asked if employee deductibles would be raised in 2010, 16% confirmed this was "likely".

 

Employers are considering the following approaches in 2010 to avoid increases in costs above the 6% averages in 2008 and 2009.

 

  1. Increase and modify cost sharing with employees
    • Employees pay a percentage of out-of-pocket expenses for every health care service, rather than a specific dollar amount.
  2. Coverage for dependents
    • Targeted employer focus on covered dependents (majority of dependents currently exceed 50% of employees’ health care costs).
  3. Eliminating select health care plans
    • Employers are eliminating higher cost health care plans.
  4. Self-insured plans
    • Employers are consolidating plans where employees must pay all medical claims costs and administrative fees for services.
  5. Investment in employee health
    • In order to maintain health care costs over the long-term, employers are investing in employee health and productivity.

Additional information about these alternate options can be found here.

 

Contact Helios HR at 703.860.3882 to help you optimize your employee health care investment.

 

 

Join us for the Winter Coat Drive!

The temperature will soon be dropping and many of our less fortunate neighbors will be feeling the cold! For the fifth consecutive year, Helios HR is teaming with clients, colleagues and neighbors and Reston Interfaith in collecting winter coats in helping to fill the Hunter Mill District Coat Closet for adults and children in need of winter coats.

 

This year we challenge you to help us exceed the 1,300+ coats our collective efforts provided last year! Helios HR will support the coat drive beginning on November 15, 2009 and ending on January 8, 2010.

 

Contact Lauren Faig at 703.860.3882 x102 or lfaig@helioshr.com to learn more information about the coat drive.

 
Issue 22 | October 2009
In this Issue

 

 

Upcoming Events

 

Register now for the following events!

10/21: Business Continuity Webinar
10/26: Growing Next Level Leaders
10/27: Employment Law Aftermath

 

 

Optimizing Human Capital – 2009 Best Practices in Professional Development and Employee Growth


The Washington Metropolitan Area represents one of the most competitive employment markets in the nation. Helios HR, LLC, with the help of Market Connections, has evaluated firms who work collaboratively with their employees to make Employee Development not only a priority, but an essential part of their culture. In doing so, these firms often enjoy higher productivity, profit, and performance than their competitiors. Download your copy here.

 

 

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About Helios HR

Helios HR client-focused delivery models include:

HR Outsourcing
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Additional information is available at www.helioshr.com