Kansas City, Kan.— Between the slowing rate of economic growth, a shortage of skilled workers and increasing costs on everything from medical insurance to office supplies, it's no surprise that manufacturing and distribution organizations have mastered the philosophy of doing more with less. One significant way in which companies have embraced this ideal is through the use of lean practices. The 2012 Compensation Data Manufacturing & Distribution survey results found that 72.4 percent of manufacturers and distributors employ the use of lean practices.
Original Article: Manufacturing Weekly
Kansas City, Kan.— The Bureau of Labor Statistics recently reported the unemployment rate at just over 8 percent as of June 2012. The unemployment rate continues to dwindle at a very slow rate of decline and pay increase budgets are mirroring this trend by increasing at a tepid rate. The 2012 Compensation Data Manufacturing & Distribution survey results reported pay increase budgets at 2.8 percent, reflecting a slight uptick from 2.7 percent reported in 2011. Pay increase budgets are projected to slightly increase to 2.9 percent in 2013.
According to the newly released 2012 Compensation Data Manufacturing & Distribution survey results, employers are providing many options to their employees concerning health and wellness programs. With prevention becoming the buzzword, organizations have taken steps to increase their employees’ health and wellness through various programs.
As the economy begins to regain its footing, pay increase budgets increased only slightly for manufacturers and distributors. The newly released 2012 Compensation Data Manufacturing & Distribution survey results indicate pay increase budgets rose to 2.8 percent, in line with the expected increase for this year. An increase to 2.9 percent is expected in 2013.
The newly released 2012 Compensation Data Manufacturing & Distribution survey results show medical insurance premiums have increased by an average of 10.2 percent over the last year. This is down from 2011, where the average premium increase reported was 11 percent. This year, POS plans had one of the largest increases at 11.4 percent.
Compdata Surveys is excited to announce the release of the 2012 Compensation Data Manufacturing & Distribution survey results. The national results feature data from nearly 28,000 manufacturers and distributors with a combined 23 million employees, making it the largest database in the country for its industry. More than 26,000 companies in other industries provided data on 400 benchmark titles. Compensation Data Manufacturing & Distribution surveyed 100 industry job titles and 400 benchmark job titles, as well as comprehensive benefit and pay practice information.
The recent volatility in the stock markets has once again shifted employees’ focus to retirement savings plans. While saving for the future is important, employees are questioning which options are the most beneficial. The 2011 Compensation Data Manufacturing & Distribution survey results indicate that nearly 73 percent of employees were enrolled in a defined contribution plan, compared to 2010 where that number was a little more than 73 percent. Just 1.2 percent of manufacturers and distributors surveyed reported offering a defined benefit plan only, 68.9 percent offer a defined contribution plan only and more than 29 percent offer both.
With the costs of medical insurance regularly increasing, manufacturers and distributors look to other means in order to control costs. According to the 2011 Compensation Data Manufacturing & Distribution survey results, the most common of those options is coordination of benefits at nearly 84 percent. Disease management showed the largest increase at 66 percent, up from 61 percent in 2010.
Technology and the economy have changed the recruiting landscape for the manufacturing and distribution industry. Based on the 2011 Compensation Data Manufacturing & Distribution survey results, more companies are using cash options as a recruitment tactic in the midst of a struggling economy. From 2010 to 2011, employers offering raises more frequently during the first year increased from 11.2 percent to 12.8 percent.