Kansas City, Kan.— The Bureau of Labor Statistics recently reported the unemployment rate at 8.3 percent as of July 2012, up slightly from 8.2 percent in June. Although the unemployment rate has increased over the past couple of months, pay increase budgets are beginning to show signs of improvement. The 2012 Compensation Data Not-For-Profit survey results reported pay increase budgets at 2.6 percent, reflecting an increase from 1.8 percent reported in 2011 and 1.7 percent reported in 2010. Pay increase budgets are projected to remain stable at 2.6 percent in 2013.
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 Not-For-Profit survey results indicate that 66.9 percent of employees were enrolled in a defined contribution plan, virtually no change from the 66.8 percent reported in 2010. Just 6.1 percent of not-for-profit employers surveyed reported offering a defined benefit plan only, 50.4 percent offer a defined contribution plan only and more than 42.5 percent offer both.
With the costs of medical insurance regularly increasing, not-for-profit organizations look to other means in order to control costs. According to the 2011 Compensation Data Not-For-Profit survey results, the most common of those options is coordination of benefits at more than 82 percent. Disease management showed the largest increase at 62.7 percent, up from 56.6 percent in 2010.
Technology and the economy have changed the recruiting landscape for the not-for-profit industry. Based on the 2011 Compensation Data Not-For-Profit survey results, fewer companies are using cash options as a recruitment tactic in the midst of a struggling economy. From 2009 to 2011, employers offering increasing start rates decreased from 19.5 percent to 12.5 percent.