Pay Range Adjustments Trending Up for Manufacturing & Distribution

October 24, 2011    

As organizations balance the effects of the recession, manufacturing and distribution companies see slightly higher pay range adjustments while the time between adjustments grows shorter, according to the 2011 Compensation Data Manufacturing & Distribution results. The actual pay range adjustment of 2 percent in 2011 jumped from the 1.7 percent adjustment in 2010, and came in just above the projected 1.9 percent for this year.

Pay range adjustments are beginning to occur more often, with an average of 12.9 months since the last adjustment reported this year. In 2010, participating organizations indicated waiting 14.2 months between adjustments. However, timing varies among industry categories. Furniture, fixture and lumber manufacturing companies reported 17.2 months since the last adjustment, but food, beverage and tobacco manufacturers waited 10.1 months between adjustments.

“In light of the volatile economy, many employers are continuing to stay cautious,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “A conservative approach may soon become the norm instead of the exception for many organizations.”

Overall, manufacturing and distribution organizations vary in how they treat employees going over the range maximum. According to the results, more than 67 percent of manufacturing and distribution organizations reported withholding increases. Nearly 90 percent of participating textile, apparel and leather manufacturing companies reported withholding increases while 46.7 percent of wholesale traders of non-durable goods did so this year. The results also indicated 62 percent of manufacturing and distribution companies offered lump sum increases in 2011.

About the Survey
Compensation Data 2011 Manufacturing & Distribution surveyed more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from nearly 1,100 manufacturing and distribution employers reporting on more than 9,500 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2011.

Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For more information about our compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.

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