• Workforce Compensation and Fringe Benefits

The shortage of skilled workers has forced most companies to offer a comprehensive package of incentive compensation and fringe benefits as part of a minimum compensation package to attract needed personnel.

Medical benefits. In response to questions asking what percent of health benefits are paid by the company the survey results were: 7% reported the company pays for less than half, 6% pays 51-60%. 24% pay 6170%. 40% pay 81-90% and 12% pay 91-100%. With respect to health costs as a percentage of labor costs, 9% of respondents incurred health costs less than 4% of labor costs, 7% between 4.1-5%, 13% between 5.15%, 16% between 6.1 and 7%, 10% between 7.1-8%, 4% between 8.1-9%, 15% between 9.1-105 and 26% over 10% of labor costs.

Current Ratio. The current ratio is derived by dividing current assets by current liabilities where 2 to 1 or higher is generally considered to be healthy. 65% report a current ratio of 2 to 1 or less, 16% report between 2.1 to 3 while the remaining 18% report 3.1 or higher.

410(k) benefits. On average the company will match an employee’s contribution up to 6% of their compensation and 85% of respondents reported they do not anticipate any changes in the near future.

Wages Increases. Surveyed companies state that the average increase was 3.5 -4.0 %, which is the same as 2007 results.

Paid time off. 66% of companies polled paid 10 holidays per year, 7% offered 9 and 9% offered 8. None offered more than 12. Though answers were not given the last two years, 2006 results indicated approximately 49% of responding companies combine vacation, holiday and sick leave into a single personal time leave package while 47% maintain separate leave benefits for each type of leave.

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