American Society of Employers (ASE) Releases 2019 Compensation Survey Results

American Society of Employers (ASE) Releases 2019 Compensation Survey Results

Modest Wage Gains Continue for Most, but Engineering, Quality, and HR See Above Average Growth

Media Contact: Heather Nezich, Communications Manager, ASE, hnezich@aseonline.org, 248.223.8040

Livonia, Mich. —May 29, 2019 — The American Society of Employers (ASE), an employer association serving Michigan employers for over 116 years, released the organization’s 2019 Compensation Survey results at its Compensation and Benefits Conference last week. It’s the 67th year that ASE has published the annual survey. The findings were released by Mary E. Corrado, president and CEO of ASE.

“This year’s survey results showed a continuation of the modest wage gains we have seen for the last several years. However, despite the lack of volatility in wages there remains challenges. Digging deeper into the data does reveal that jobs that require technical skills are commanding higher rates of increases than others. While that is not unexpected, it does require employers to proactively engage in ongoing market assessments,” stated Corrado. “Unless something derails the current economic expansion, we expect pressures on wage growth to accelerate given the tightening labor supply,” added Corrado.

2019 Survey Demographics

A total of 335 companies, 57% of them located in the metro Detroit region, responded to the survey, which was distributed to human resource professionals via an online survey in January 2019. Nearly 40% of the respondents are classified as automotive suppliers, and 474 jobs were reported on. 83% of the organizations that responded have 1-500 employees.

2019 ASE Compensation Survey Highlights:
• Actual wage increases, based on a constant sample of companies, increased 2.7% year over year.
• Merit increase budgets, what a company budgets for performance-based pay increases, averaged 3%. This is consistent with 2018 merit budgets.
• Organizations offering variable or incentive pay showed a slight increase to 83% in 2019 compared to 81% in 2018.
• Several fields witnessed average wage increases of 3.5% and higher, with the Engineering Support, Human Resources, Inspection / Quality and Supply Chain/Logistics job families each showing increases of 3.7% or higher.
• Product Development Engineering and Electrical Engineering job groups average wage increases were 3.8% and 3.6% respectively.

To obtain a copy of the 2019 Compensation Survey results, contact Kevin Marrs, Vice President at ASE, 248-223-8025 or kmarrs@aseonline.org.

About the American Society of Employers (ASE) – a Centennial Organization
The American Society of Employers (ASE) is a not-for-profit trade association providing people-management information and services to Michigan employers. Since 1902, member organizations have relied on ASE to be their single, cost-effective source for information and support, helping to grow their bottom line by enhancing the effectiveness of their people. Learn more about ASE at www.aseonline.org.

American Society of Employers (ASE) releases 2019 Starting Salaries for Co-op Students and Recent College Graduates Survey

Media Contact: Heather Nezich, Manager, Communications, ASE, 248.223.8040, hnezich@aseonline.org

Livonia, Mich. —March 26, 2019 — The American Society of Employers (ASE), one of the nation’s oldest and largest employer associations, released the organization’s 2019 Starting Salaries for Co-op Students and Recent College Graduates Survey today. The annual survey provides a comprehensive look at the current state of wages and benefits provided to co-op students and recent college graduates. The survey also presents employers a snapshot of the recruitment and retention trends associated with these new entrants to the workforce.

Mary E. Corrado, ASE President and CEO, stated, “The data shows that college graduates have higher expectations for career growth and work environment than they do for compensation. Employers must realize that it takes more than fair and competitive compensation to create an engaging employee experience and retain these new workers.”

115 companies responded to the 2019 Starting Salaries for Co-op Students and Recent College Graduates Survey. The majority (76%) of the respondents have under 500 employees. Just over 80% of respondents are located in the metro Detroit region with 51.3% of those classified as automotive suppliers.

2019 Starting Salaries for Co-op Students and Recent College Graduates Survey Highlights:
• Nearly three out of four (74%) respondents say their company has hired, or plans to hire, a recent college graduate in 2019, similar to what was reported in 2018.
o 30% of the companies have increased their hiring efforts for college graduates this year compared to last year, an increase of 7% from 2018.
• The data suggests that the top five in-state institutions Michigan organizations actively recruit from are: 1) University of Michigan; 2) Michigan State University; 3) Oakland University; 4) Lawrence Technological University; 5) Kettering University.
• The top three most popular technical Bachelor-degree disciplines hired in the past year were: 1) Mechanical Engineering; 2) Electrical Engineering; 3) Computer Science.
• The top three most popular non-technical Bachelor-degree disciplines hired in the past year were: 1) HR/Labor Relations; 2) Finance; 3) Accounting
• The top three knowledge/skill factors organizations consider when making hiring decisions, in order, are: related coursework; computer skills; and internship/work experience.
• The top three perceived shortcomings of recent college graduates are: 1) career expectations (62%); 2) adaptation to work environment (60%); 3) compensation expectations (53%).
• Of the six disciplines named above (Accounting, Finance, HR/Labor Relations, Mechanical Engineering, Electrical Engineering, and Computer Science) the highest starting salaries went to the engineering disciplines. The average starting salary for Electrical Engineering was $68,330; and for Mechanical Engineering the average was $66,305. Finance came in at $53,981; Computer Science $53,445; HR/Labor Relations $49,144, and Accounting came in at $44,646.
• Pay rates for high school and college co-ops and interns were separated by technical and non-technical roles; the average hourly rate for a college senior in a technical field is $17.84 an hour and $16.20 for a non-technical field; the average hourly rate for a college junior in a technical field is $16.72 an hour and $15.17 for a non-technical field.
Pricing
• This survey is available free of charge to ASE members and for $525 to non-members.

About the American Society of Employers (ASE) – a Centennial Organization
American Society of Employers (ASE) is a not-for-profit trade association providing people-management information and services to Michigan employers. Since 1902, member organizations have relied on ASE to be their single, cost-effective source for information and support, helping to grow their bottom line by enhancing the effectiveness of their people. Learn more about ASE at www.aseonline.org.

American Society of Employers (ASE) Releases 2017 Compensation Survey Results

The American Society of Employers (ASE), one of the nation’s oldest and largest employer associations, released the organization’s 2017 Compensation Survey today. It’s the 65th year that ASE has published the annual survey. The findings were released by Mary E. Corrado, president and CEO of ASE.

“Despite improvements in the economy, notably the reduction in the unemployment rate, employers seem to be taking a more conservative approach and are holding steady at 3% pay raises,” stated Corrado. “Our data suggests that employers may be relying on other forms of compensation, specifically incentive compensation, to reward employees; therefore, maintaining minimal long-term financial risk.”

A total of 357 companies, 57% of them located in the metro Detroit region, responded to the survey, which was distributed to human resource professionals via an online survey in January 2017. Nearly two thirds (59%) of the respondents are classified as non-automotive suppliers.

2017 ASE compensation survey highlights:
• Merit budgets remain at the 3.0% level, a figure that has remained constant in ASE’s last several annual salary survey reports.
• Among companies who reported data in both 2016 and 2017, actual salaries increased 2.85% year-over-year. Further analysis of the data shows that salary movement ranged from as low as 2.5% for Office, Clerical and Technical classifications to as much as 2.9% for Supervisory, Managerial and Professional classifications.
• Variable pay as a percent of base pay shows significant growth at higher salary levels. Employees that are eligible for variable compensation could reasonably expect short-term incentives of approximately 7.8%, 9.4%, 14.9% and 37% for the following pay levels: $50,000 to $75,000; $75,000 to $100,000; $100,000 to $150,000; and more than $150,000 respectively. For the pay ranges between $50,000 and $150,000 this shows an average increase of 1.67% over 2016, but for salaries over $150,000 an increase of 11.3% from 2016 was seen.

2017 ASE compensation survey findings on specific position classifications:
• Several Engineering fields witnessed average wage increases of 3.5% and higher, with Mechanical Engineering at 4.4% and Industrial Engineering at 3.58%. These are slightly lower than seen in 2016.
• Entry and Lead/Sr. engineering roles’ average wage increases (3.7%) are growing at a faster rate than middle level roles (2.1%).
• Plant management roles are seeing a 1.2% increase in wages compared to only .7% last year.
• The largest wage increases were seen in HR roles. Human Resource positions as a whole saw an average increase of 4.7%. More technical compensation roles saw increases ranging from 6.1% to as high as 9.8%.

To obtain a copy of the 2017 Compensation Survey, contact Kevin Marrs, Vice President at ASE, 248-223-8025 or kmarrs@aseonline.org.

About the American Society of Employers (ASE) – a Centennial Organization

The American Society of Employers (ASE) is a not-for-profit trade association providing people-management information and services to Michigan employers. Since 1902, member organizations have relied on ASE to be their single, cost-effective source for information and support, helping to grow their bottom line by enhancing the effectiveness of their people. Learn more about ASE at www.aseonline.org.