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HomeMy WebLinkAboutSupplemental Attachments - 6/5/2023 (4)0kk&sSibli-Yaleihtti- . Cedar Valley Wage & Benefit Survey 2023 Executive Summary The intent of this regional survey is to keep Cedar Valley existing businesses competitive by giving them timely data that will help them make informed decisions to retain and recruit workforce and for this reason we ask that it be used for internal use. For the complete report or specific industry sector report, please email 211111111111.11.0.11.1.6 after 5/30/23 stephanie@growcedarvalley.com Methodology Project Objective The main project objectives included assessing the starting and maximum wages for occupations in a variety of industries, assessing additional wage-related benefits such as pay increases and wage differentials, and understanding paid time off policies and benefits,workplace incentives, workforce trends, and community quality of life and amenities.This will help the Cedar Valley Regional Partnership and Grow Cedar Valley track wage and benefit data by occupation type to aid in attracting new talent to existing industry and prospective employers. Project Design Strategic Marketing Services (SMS) developed the content of an online survey instrument to assess the current wages and benefits provided to occupations within the manufacturing; finance and insurance; professional, scientific, and technical services; health care and social assistance; and transportation and warehousing industries among employers in Black Hawk, Bremer, Buchanan, Butler, Chickasaw, and Grundy counties. An invitation to take the online survey was administered by email from Strategic Marketing Services (SMS)on behalf of Grow Cedar Valley and from Cedar Valley Regional Partnership members to approximately 400 human resources and management contacts with 284 contacts starting the survey and five opting out on the first page. Of the remaining 279 survey starts, 128 contacts fully completed the survey.The completion rate was 32 percent.This achieved a 95 ±7.15%confidence interval, which means if this study was completed 100 times; the same results would be achieved 95 out of 100 times. The confidence interval indicated the actual aggregate results for the entire population of organizations in the above counties and industries would be in a ±7.15 percent range of the aggregate statistics. Executive Summary Organizational Demographics Total survey respondents reached 128,with just under two-thirds being in Black Hawk County, roughly 30 percent(31.5%) in Bremer County, 19.7% in Buchanan County, 15.7% in Chickasaw County, 15.0% in Butler County, and 8.6% in Grundy County. Responses from each of the included industry categories werpipi with g (30.4%) and Health Care and Social Assistance (22.7%) being the most represented.The least represented industries were Finance and Insurance (7.8%) and Transportation and Warehousing(6.3%).Just under 22 percent of the respondents reported Other industries such as education, retail, and construction. In addition,there was a good representation of various organization sizes and levels of annual gross income for 2020. More specifically, 25.8%of organizations had 20 to 49 employees, 21.9% had 50 to 99 employees, 18.8% had less than 20 employees, and 18.0% had 100 to 249 employees. Only 4.7%of organizations had 500 employees or more. As for annual gross income, nearly one-third of respondents reported that their organization's annual gross income for 2020 was less than $5 million,followed by$5 million to$24.99 million (20.3%), and $25 million or more (19.5%). However, 9.4 percent of respondents preferred not to disclose their annual gross income for 2020 and 19.5%were not sure. The top executive management occupation category represented at organizations in the Cedar Valley includes general/operations managers and other management (90.6%),followed by business and financial operations (64.8%), and human resources specialists or managers(59.4%). Wage Information The industries with the most starting and maximum wage information per occupation include Manufacturing, Health Care and Social Assistance, and Transportation and Warehousing.The industries with the least amount of wage information include the sub-industries physician offices; dentist offices; legal services; accounting,tax preparation, and bookkeeping services; architectural, engineering, and related services; advertising, public relations, and related services; consulting services; and information technology services. The following graphics provide the starting and maximum median salaries for the top occupations in Manufacturing, Health Care and Social Assistance, and Transportation and Warehousing. Manufacturing Among manufacturer occupations, Shift production supervisors had the highest starting and maximum median salaries, followed by Maintenance mechanics. Assembly/Production workers/laborers and Material handling/ Forklift operators/Warehouse workers had nearly equal starting salary medians. Engineers •Starting Median:$62,940.80 •MaK .gym Medial S7L5 %U *Starting Median:$59,660.80 •Maximum Median:$82,500 Assembly/Production Worker/Laborer *Starting Median:$35,360 •Maximum Median:$49,712 Material Handling/Forklift Operator/Warehouse Worker *Starting Median:$37,440 *Maximum Median:$49,067.20 Health Care and Social Assistance Physicians/Surgeons were reported to have the highest starting and maximum salaries for the Health Care and Social Assistance industry followed by Nurse practitioners. Medical technicians and Registered nurses/ LPNs had similar starting median salaries while administrative roles were lowest. Physician / Surgeon *Starting Median: $364,000 •Maxirnum Median: $420,500 •starting Medkan:$105,851.21 *Maximum Median: $135,500 Medical Technicians *Starting Median: $61,276.80 *Maximum Median: $91,187.20 Registered Nurse / LPN *Starting Median: $57,792.30 *Maximum Median: $85,935.20 Administrative Roles *Starting Median: $30,440.80 *Maximum Median: $42,848 Transportation Within the Transportation industry occupations,Transportation managers/Logistics managers had the highest starting and maximum salary medians followed closely by Truck and Tractor operators—short haul. Shipping/ Receiving clerks, Material handlers and Forklift operators reported similar starting median salaries with Forklift operator's maximum salary median falling short Transportation Manager/ Logistics Manager 'Starting Median: $55,500 •Maximum Median: $75,000 'Starting Median: $52,000 'Maximum Median: $62,000 Maintenance Mechanic "Starting Median:$49,840 •Maximum Median: $73,280 Forklift Operator 'Starting Median:$33,280 'Maximum Median: $42,432 Material Handler *Starting Median:$33,280 •Maximum Median:$39,936 Additional Wage Information The median standard annual wage/salary percentage increase in the last 12 months was 4.0%, with 72.7%of respondents planning to provide pay increases in the next 12 months. However, only 32 percent of respondents will provide an annual cost of living pay increase. Just over half(52.3%) of the respondents reported that their company uses a variable/performance pay program such as bonuses,commission, and other monetary incentives. Additionally, 64.9% provide a differential pay scale for weekday 2nd shift,followed by weekday 3`d shift (45.6%), holiday shift (42.1%), weekend 3'd shift(29.8%), and weekend 2nd shift (26.3%). In general, a median differential pay scale of $2.00 to $2.53 was provided to employees working other shifts as shown in the following table. Hourly Rate Shift Differential Mean Median Minimum Maximum Weekday 2nd Shift(N=35) $ 2.05 $ 2.00 $ 0.45 $ 10.00 Weekday 3rd Shift(N=23) $ 1.83 $ 2.00 $ 0.30 $ 4.00 Weekend 1st Shift(N=8) $ 2.75 $ 2.50 $ 1.00 $ 6.00 Weekend 2nd Shift(N=12) $ 3.42 $ 2.53 $ 0.45 $ 10.00 Weekend 3rd Shift(N=13) $ 2.81 $ 2.00 $ 0.30 $ 10.00 Benefits Paid Leave Approximately 65%of respondent organizations provide PTO banks to their employees,while 45% provide a traditional paid leave policy. For organizations that offer the same benefits to their employees, there was a 116 percent increase in mean vacation hours from the first year of employment to the tenth year of employment, and a 240 percent increase in median vacation hours. Additionally, there was a 22 percent increase in mean sick hours from the first year of employment to the tenth year of employment, and a 9 percent change in median sick hours. For organizations utilizing PTO versus traditional paid leave,there is a 99.6 percent increase in mean PTO hours from the first year of employment to the tenth year of employment, and a 105 percent increase in median PTO hours. Vacation Hours 300.00 • 250.00 248.00 260.00 200.00 Median, • 180.00 160.00 150.00 Median,120.00 El 150.79 115.95 100.00 . 69.74 50.00 A 47.W •16.00 24.00 0.00 1 0.00 First year Fifth year Tenth year Aggregate(N=38) IN Mean ,;Median •Minimum •Maximum 00 300.00 250.00 240-00 200.00 . 192.00 . 192.00 150.00 100.00 51.61 V 57.65 62.83 50.00 yr 44.00 48.00 48.00 0.00 • 0.00 . 0.00 0.00.. First year(N=33) Fifth year(N=33) Tenth year(N=32) ■Mean +Median •Minimum •Maximum 350.00 300.00 288.00 250.00 248.00 200.00 • 208.00 169.03 150.00 132.05 Median, 100.00 164.00 ® 84.70 Median,120.00 80.00 50.00 22.00 27.00 0.00 . 0.00 First year(N=66) Fifth year(N=66) Tenth year(N=66) ■Mean n Median •Minimum •Maximum Paid Benefits and Workplace Incentives The vast majority (91 to 95%)of respondents reported employees receive Thanksgiving Day, Christmas Day, New Year's Day, Labor Day, Independence Day and Memorial Day paid off. 13-51% reported employees receive other holidays and observances paid off. Additionally, about 40 percent of respondents offer paid benefits to part-time employees, including paid time off/vacation and sick leave (88.2%), retirement benefits (84.3%), paid holidays (70.6%), and health insurance (68.6%). Top workplace opportunities or incentives offered to employees reported by respondents included a flexible spending account (61.9%) and a casual work environment(57.5%). A second tier of opportunities or incentives offered to employees include tuition assistance/reimbursement (36.3%), flexible work hours(36.3%), hybrid work option (33.6%), a fitness center membership/on-site fitness center(27.4%) and a four-day work week(24.8%). Remote Work The mean value of employees eligible to work remotely is just under one-fourth (24.1%),while 13.2%of employees are currently working remotely on average. Over one-third of respondents (36.6%) have experienced no impact on local operations due to remote work options, while over one-fourth (27.7%) have been impacted both positively and negatively. Of the organizations that provide full-time remote work and hybrid work options at their organization, 97.7% provide computers/laptops and 69.8% provide additional accessories such as a keyboard, mouse, camera, etc. Mean Median Minimum Maximum %Eligible to Work Remotely(N=80) 24.1% 10.0% 0.0% 100.0% %Currently Working Remotely (N=76) 13.2% 5.0% 0.0% 100.0%i Recruitment Barriers and Top Local Community Amenities/Offerings The greatest barrier related to recruiting potential employees as it relates to the community is by far the shortage of workers with knowledge of skills (72.7%). Other top barriers are included in the graphic below. Respondents were also asked to rate the significance for each of their top three barriers, using a scale of 1 to 5, where 1 is insignificant and 5 is critical. The top-rated barriers are included in the graphic below.The lowest rated barriers include lack of access to childcare (3.79), lack of access to transportation to get to work(3.41), and lack of diversity in the community (3.25). Barrier Significance •Shortage of workers with knowledge of skills •Shortage of available training programs (72.7%) (mean of 4.29) •Location of your community(24.2%) •Shortage of workers with knowledge or skills •Government policies or regulations(15.6%) (mean of 4.24) •Lack of affordable child care (14.8%) •Location of your community(mean of 4.03) •Lack of access to transportation to get to work(13.3%) The top local community amenities/offerings most important to potential employees include quality schools (51.6%), proximity to work location (46.1%),and quality/affordable housing (45.3%). Other top amenities/offerings are included in the graphic below. Respondents were also asked to rate the level of availability for each of their top 5 local amenities/offerings, using a scale of 1 to 5,where 1 is no availability and 5 is very high availability.The top-rated amenities are included in the graphic below. The lowest rated amenities included quality/affordable childcare (2.82) and diverse population (2.70). Level of Availability •Quality schools(51.6%) •Technology access(mean of 4.43) •Proximity to work location (46.1%) •Quality schools(mean of 4.00) •Quality/affordable housing (45.3%) •Low crime rate/personal security/safety •Community amenities like (mean of 4.43) shopping/restaurants(38.3%) •Quality/affordable childcare (36.7%) •Low crime rate/personal security/safety (35.9%) Organizational Demographics Industry The top industries represented were Durable Manufacturing (23.4%), Health Care and Social Assistance (22.7%), and Professional,Scientific, and Technical Services(10.9%). Professional, Durable Manufacturing, 23.4% Scientific,and Technical Other,21.9% Services,10.9% Non-durable Transportation and Finance and Manufacturing, Warehousing, Health Care and Social Assistance,22.7% Insurance,7.8% 7.0% 6.3% Other responses from respondents include: Construction (5); Agriculture (2); Education (2); Utilities(2); Beer wholesale; Cold Storage, Warehousing; Concrete Supplier; Entertainment; Government; Industrial manufacturing- molds/tool ¨ Manufacturing infrastructure Compiled In Partnership With: 11111 University of Northern Iowa JNRC'C , GROW " CedarValley idm Institute for Decision Making Strategic Marketing Services University of Northern Iowa