Wage and Benefits Survey Results

Transcription

1 Wage and Benefits Survey Results Prepared by: Alison Davis PhD Professor, Department of Agricultural Economics Executive Director, CEDIK Simona Balazs Research Director, CEDIK CEDIK Community & Economic Development Initiative of Kentucky cedik.ca.uky.edu

2 Executive Summary In 2018, CEDIK (Community and Economic Development Initiative of Kentucky) at the University of Kentucky was contracted to conduct a wage and benefits survey for Kyndle, the Kentucky Network for Development, Leadership and Engagement. The purpose of the study was to better understand what type of benefits are provided in the region and what are some of the perceived issues with the labor supply. The survey was disseminated to existing industries within the region. Some of the key findings are highlighted below: 64 companies participated in the survey; Henderson county had the largest representation; Metal Machinery Manufacturing and Wood, Paper, Plastic & Chemical Products Manufacturing are the two most represented industries in the survey; More than 85% of the companies said that they provide some kind of bonus to the employees; Production based bonus is the most offered type of bonus, followed by Annual bonus; Almost all responding companies provide Paid Holidays; More than 88% of the responding companies provide Paid Time Off; Only 33% of responding companies offer Paid Sick Leave; Most responding companies offer 3-5 paid sick leave days per year; 93% of responding companies offer bereavement leave; Most responding companies offer 3 bereavement days; Most responding companies offer Health Insurance to their employees; PPO plans are the most offered health insurance plans; Self-insured PPO has the highest average monthly premiums; 36 companies were classified as large companies (have either >51 full-time salaried employees or >51 full-time hourly employees); 28 companies were classified as small companies (have either <50 full-time salaried or <50 full-time hourly employees); A compilation of expected hourly wages by occupation by industry 1

3 KYNDLE Wage and Benefits Survey Results A National Perspective. Attracting and retaining a talented, committed workforce is arguably of the most critical issues facing employers today. Benefit packages can be used as both recruiting and retention strategies by ensuring employees feel adequately covered by health benefits and prepared financially for retirement. Additional benefit-types are proving to be important including wellness programs and benefits, flex-time and/or telecommuting, on-site child care services, and phased retirement programs. In addition, benefits that provide leadership training or coaching, career ladders, job rotations, and tuition reimbursement are also key offerings that many employees now expect at their time of hire. 1 Several national human resource leaders conduct extensive studies to better understand the link between employment choices and the employees attitudes towards benefits packages. In 2017, the Society for Human Resource Management (SHRM) conducted its annual survey of U.S. employers to collect information on over 300 employee benefits. 2 Their findings suggest that nearly one-third of the organizations increased their overall benefits offerings in the last 12 months. Wellness and health were the highest growth benefits. In 2016, the top six benefits most important to employees were health care benefits (95%), retirement savings and planning benefits (71%), leave benefits (50%), flexible working benefits (29%), professional and career development benefits (17%), wellness benefits (11%). Of those listed benefits, the last three were expected to grow in importance significantly over the next 3 to 5 years. In 2017, The Department of Labor found that within private industry, benefits accounted for, on average, 30.4% of the total compensation costs. Of that total, health insurance (24.6%) and legally required benefits (25.6%), including social security, account for over one-half of the total costs of the benefits package. Paid leave, retirement and savings, and supplemental pay account for the remaining share of the costs. 3 Employer costs for all private industry workers averaged $1.36 per hour worked. Furthermore, employer costs by industry were $2.22 in goods-producing industries and $1.19 in service-providing industries. Introduction. Kyndle, the Kentucky Network for Development, Leadership and Engagement, provides economic development and industrial recruitment leadership for the citizens, businesses, and governments of Henderson, McLean, Union and Webster Counties. Kyndle commissioned the Community and Economic Development Initiative of Kentucky (CEDIK) to 1 Attraction and Retention: The Impact and Prevalence of Work-Life and Benefit Programs, A Research Report by WorldatWork, October Employee Benefits: Remaining Competitive in a Challenging Talent Marketplace, A Research Report by the Society for Human Resource Management, Employer Costs for Employee Compensations, US Department of Labor, Bureau of Labor Statistics, June

4 conduct a wage and benefit survey for the region in the spring of CEDIK created an online survey instrument and Kyndle disseminated the survey to manufacturing, mining, and utility companies within the region. This report provides an overview of the results from this comprehensive survey. In total, 64 companies completed the survey. Henderson County businesses represent the large majority of the respondents (45) with the remaining 18 businesses located in McLean (3), Union (13) and Webster (2) Counties (Table 1). Not all companies responded to all questions. In some instances, the total number of businesses responding might not sum to 64. Survey results by industry: To avoid disclosure, businesses were grouped into six industries based on their NAICS codes: Mining & utilities: NAICS 212, 213 & 221 Food & textile manufacturing: NAICS 311, 313 & 314 Transportation manufacturing & warehousing: NAICS 336 & Metal & machinery manufacturing: NAICS 331, 332 & 333 Wood, paper, plastic & chemical manufacturing: NAICS 321, 322, 325 & 326 Other: All other businesses Table 1. Distribution of businesses by industry and county Industry Henderson McLean Union Webster Food & textile manufacturing Transportation manufacturing & warehousing 7 Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing* Other * Sixteen total firms responded, one did not provide a geographic location Table 1 details that there were responses from 15 metal and machinery manufacturing firms, 16 wood, paper, plastic and chemical products manufacturing firms, 8 transportation manufacturing and warehousing firms and food and textile manufacturing firms, 6 mining and utility companies and 11 firms that either did not provide an industrial classification or one was provided that was outside the scope of this analysis. Tables 2 to 4 provide a breakdown of the number of reported employees by full-time salaried, full-time hourly, and part-time hourly status (by company). 3

5 Table 2. Number of businesses by full time salaried employees Industry <10 employees employees employees employees employees >200 employees Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other Table 3. Number of businesses by full time hourly employees Industry <10 employees employees employees employees employees >200 employees Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other Table 4. Number of businesses by part time hourly employees Industry <10 employees employees >30 employees Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other Companies were asked if they projected an increase in wages and salaries over the coming year. The majority of respondents stated that they were expecting a 2 to 4% increase (Table 5). Only one firm expected a larger increase. Eight of the companies stated zero expected change. 4

6 Table 5. Number of businesses reporting a projected increase in wage & salaries over the next 12 months Industry 0% change 1%-2% increase 2%-4% increase 5% or higher Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other Eleven of the responding companies stated that a portion of their workforce was covered by a bargaining agreement. Only one of the eleven companies had fewer than 50% of their employees in a bargaining agreement. Not surprisingly, production and maintenance workers were covered by bargaining agreements more so than transportation (Tables 6 and 7). Table 6. Number of businesses by percent of workforce covered by union* Industry 26-50% 51-75% >75% Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other * 10 responding companies Table 7. Number of businesses by type of workers represented by the union Industry Production Maintenance Transportation Other Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other * Companies could select more than one type of worker. Aggregating across rows is not appropriate. 5

7 PAID LEAVE BENEFITS Paid leave is a very important aspect of overall job satisfaction by employees. Paid vacation time is important for employee morale, wellness, performance, and productivity. A research report by WorldatWork found that 93% of HR leaders stated that paid vacation has a moderate to high impact on attraction and retention. 4 Access to sick days for either the employee or for family members is critical for improving the health of the employee and keeping the workplace free of sickness. Nationally, 96% of firms provide paid vacation, 81% provide paid sick leave, and 33% provide paid personal leave. 5 In addition, nationally, the average annual paid leave days does increase by length of service with an average of eight vacation and seven sick leave days within the first year of hire and up to 15 and 17 paid vacation and sick days, respectively between five to nine years of service. These results should not be directly compared with the Kyndle survey results because the national survey was administered to companies from all industries and the report showcases the overall percentages. Employers within the Kyndle region clearly recognize the value of paid time off; the majority of responding companies provide paid vacation days, holidays and bereavement leave (Table 8). However, only 33% of participating companies provide paid sick days. A breakdown by industry is provided in Figures 1 to 4 below. Table 8. Percent of businesses that offer Paid Leave Benefits Paid Leave Benefit Percent businesses providing paid leave benefits Paid vacation days 88% Paid holidays* 100% Paid sick days 33% Paid bereavement days 93% * If a company offers at least one paid holiday 4 Attraction and Retention: The Impact and Prevalence of Work-Life and Benefit Programs, A Research Report by WorldatWork, October Employee Benefits, A Research Report provided by Society for Human Resource Management,

8 Figure 1 Number of reporting businesses that offer Paid Vacation Figure 2 Average number of Paid Vacation days by Years of Service Figure 3 Number of reporting businesses that offer Paid Holidays 7

9 Figure 4 Number of reporting businesses that offer Paid Sick Leave Table 9. Number of annual sick days offered (# of businesses) Industry 1-2 days 3-5 days 6-10 days >10 days Food & textile manufacturing 0 Transportation manufacturing & warehousing 1 Mining & utilities* Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing* Other * At least one company that stated they provided sick leave omitted a response to this question Companies were asked if they provided paid sick days of which nineteen companies stated that they did representing roughly 1/3 of the total respondents. Thirty-nine companies said that they did not provide sick leave. Table 9 provides an overview of the number of paid sick days provided by industry type. Table 10 provides an overview of when employees are eligible for paid sick days. The majority of the respondents stated that employees were immediately eligible or within 1-3 months of being hired. Table 10. Eligibility for paid sick days (# of businesses) >1 Industry Immediately months months months year Food & textile manufacturing 0 0 Transportation manufacturing & warehousing Mining & utilities* Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other * One company omitted response 8

10 Figure 5 Number of reporting businesses that offer Paid Bereavement Leave Table 11. Number of bereavement days offered (# of businesses) Industry 1 day 2 days 3 days 4 days 5 days >5 days Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing* Wood, paper, plastic & chemical products manufacturing Other* * One company omitted response from both metal and machinery mfg and other categories Fifty-two companies provided paid bereavement leave (Figure 5). The large majority of businesses provide three days of paid leave in the event of a death in the employee s family (Table 11). In addition, 46 companies responded that they provide jury duty compensation (Figure 6). Figure 6 Number of reporting businesses that offer Jury Duty Compensation 9

11 BONUS and REWARDS Previous research suggests that the effect of bonuses and rewards on employee retention and productivity is mixed. Whitaker (2009) found that employees initial motivation and satisfaction may have enhanced with a pay raise or cash bonus, but the effects were shorter lived than the motivating effects of non-financial rewards. 6 Another study revealed that employee rewards lead to employee retention but however, they do not result in job satisfaction. Figure 7 below highlights the number of businesses providing a bonus by industry and Table 12 describes the type of bonuses that these companies offer. Production and holiday bonuses appear to be the most commonly used. Figure 7 Number of businesses reporting that they provide any Type of Bonus Table 12. Number of businesses reporting paid bonus, by type of bonus Industry Production based Hiring bonus Holiday bonus Annual bonus Retention bonus Other* Food & textile manufacturing Transportation manufacturing & warehousing Mining & utilities Metal & machinery manufacturing Wood, paper, plastic & chemical products manufacturing Other *Other type of bonuses: annual bonus based on company or individual performance, management bonus, incentive bonus, profit share and bonus based on sales or budget goals ** Companies could select more than one type of bonus. Aggregating across rows is not appropriate. 6 Whitaker, P. (2009). What non-financial rewards are successful motivators? Strategic HR review, 9(1). 10

12 HEALTH BENEFITS Providing health care benefits to employees and their families is often the first or second most important benefit provided by the employer. Ninety-five percent of HR leaders said that a medical plan had a moderate to high degree of attraction and 88% stated it was important for retention. 7 While dental plans were not as impactful, 75% stated that dental insurance was important for employee attraction. Towers Watson found that for employees younger than 40, health care benefits was the third most important factor for attraction (job security and base pay ranked first and second), while employees between 40 and 49 ranked health care benefits as the most important factor in attraction. 8 A vast majority of the businesses in the Kyndle region provided group health insurance to full-time employees and their families. Five companies provide health benefits to their part-time employees. Figure 8 Number of businesses that offer insurance to full-time employees Figure 15 provides an overview of the provision of benefits that includes health, vision, and dental coverage, health savings accounts, life insurance, and short- and long-term disability. Sixty companies responded that they offer group health insurance. Of these, nine have union representation and 51 do not. The number of businesses offering each type of health insurance is illustrated in Figure 8 above. A company can offer more than one type of insurance resulting in totals not adding to those provided in Figure 8. The majority of the responding companies 7 Attraction and Retention: The Impact and Prevalence of Work-Life and Benefit Programs, A Research Report by WorldatWork, October Attraction and Retention: What Employees Value Most, Insider, Towers Watson, March

13 provided a PPO health care plan for their employees, while a much smaller number offered an HMO plan. Figure 9 Group health insurance (# of businesses) Each company was asked to provide the monthly premium paid by both the employee and the employer for varying levels of health insurance coverage. Tables 13 and 14 detail these average premiums by household type and non-union and union status, respectively. Table 13. Average monthly premiums for Non-union workers Average monthly Average monthly premium premium (Employee only) (Employee+ Spouse) Average monthly premium (Family) Paid by Paid by Paid by Paid by Paid by Paid by Insurance employee employer employee employer employee employer Health Insurance PPO $ 109 $ 544 $ 300 $ 770 $ 421 $ 1,401 Health Insurance HMO $ 30 $ 172 $ 100 $ 302 $ 225 $ 927 Self-Insured PPO $ 186 $ 869 $ 443 $ 1,630 $ 640 $ 2,335 Self-insured HMO $ 114 n/a $ 298 n/a $ 298 n/a Table 14. Average monthly premiums paid for union workers Average monthly premium (Employee only) Average monthly premium (Employee+ Spouse) Average monthly premium (Family) Insurance Paid by employee Paid by employer Paid by employee Paid by employer Paid by employee Paid by employer Health Insurance PPO $ 70 n/a $ 228 n/a $ 287 n/a Health Insurance HMO $ 76 $ 109 $ 206 $ 265 $ 296 $ 827 Self-Insured PPO $ 95 $ 644 $ 196 $ 1,297 $ 268 $ 1,902 Self-insured HMO n/a n/a n/a n/a n/a n/a 12

14 Figure 10 Number of businesses that provide dental insurance Figure 10 and Table 15 provide detail about dental insurance coverage and premiums. Of those that provide dental insurance, 12 firms provide at least two levels of coverage and 22 firms provide comprehensive dental insurance either as the only choice or available at a higher premium. Table 15. Average premium paid by the employee and employer for basic dental insurance Non-Union Employee Basic Dental Premiums Non-Union Employee + Family Together Union Employee Basic Dental Premiums Union Employee + Family Together Non- Non- Union Union Union Union Category Employee Family Member Family Employer paid premium $ 33 $ 137 $ 25 $ 11 $ 12 $ 17 Employee paid premium $ 27 $ 87 $ 70 $ 23 $ 49 $ 29 Health Savings Accounts (HSA) were created by the Medicare bill in 2003 and were designed to help individuals cover the cost of health care tax-free. Contributions to an HSA can be made by either the employee and/or the employer. Thirty-three firms offered this benefit and approximately 42% (14 firms) provide an employer contribution to the HSA (Table 16). 13

15 Table 16. Contribution to HSA by amount of annual contribution (# of businesses) Contribution Employee Only Family Plan Less than $250 per year 0 0 Between $251 and $500 per year 4 2 Greater than $500 per year 5 9 Wellness benefits are an increasingly important component of the benefits package. For the employer, wellness benefits can be an important cost-saving and increased productivity tool. For example, SHRM (2016) found that 88% of organizations with a wellness program rated their initiatives as somewhat or very effective in improving employee health. 9 In addition, 77% of organizations indicated their wellness program was somewhat or very effective in reducing health care costs. In the Kyndle region, 16 companies reported that they provide wellness benefits. Figure 11 provides an overview of the most common wellness incentives. Each of the responding companies that offer a wellness benefit provide some type of health insurance subsidy for participating in the wellness program. Figure 11 Wellness incentives (# of businesses) 9 SHRM 2016 Strategic Benefits Survey Wellness Initiatives 14

16 OTHER INSURANCE BENEFITS There are other insurance benefits that companies can offer to provide financial security for employees and their family in the event of an untimely accident or death. While these benefits aren t ranked as the most impactful for attraction and retention, these benefits are often expected in goods-producing industries because of the nature of the work. Tables 17 and 18 describe the availability of employer-sponsored life insurance and the coverage associated with these benefits. A company could select more than one option based on the type of workers it employs (full-time hourly, full-time salary, part-time), thus totals might not add up. Table 17. Life Insurance contribution (# of businesses) Life Insurance Employer Contribution Category Yes, 100% No Full-time non-union workers 35 4 Full-time union workers 8 3 Part-time non-union workers 2 12 * Companies could have more than one type of worker. Aggregating across columns is not appropriate. 39 reporting companies. Table 18. Life Insurance benefit coverage (# of businesses) Plan pays a percentage of Plan pays a set amount Category annual salary Full-time non-union workers Full-time union workers 7 4 Part-time non-union workers 1 1 * Companies could have more than one type of worker. Aggregating across columns is not appropriate. 41 reporting companies. Tables 19 through 22 highlight short- and long-term disability coverage for the responding companies. The large majority of companies provide short- and long-term disability benefits, paid in full by the employer. For the most part these benefits are not available to part-time employees. 15

17 Table 19. Short Term Disability benefits (# of businesses) Short Term Disability Offerings Category ST disability is provided, paid in FULL by employer ST disability is provided, paid in PART by employer ST disability is available for purchase by employee ST disability is not available Full-time nonunion workers Full-time union workers Part-time nonunion workers * Companies could have more than one type of worker. Aggregating across columns is not appropriate. 31 reporting companies. Table 20. Percent of salary provided for Short Term Disability benefits (# of businesses) Short term disability coverage (% of salary) Category Less than 50% 50 to 70% More than 70% Not Applicable Full-time non-union workers Full-time union workers Part-time non-union workers * Companies could have more than one type of worker. Aggregating across columns is not appropriate. 29 reporting companies. Table 21. Short Term Disability benefits time period (# of businesses) Short Term Disability Benefits (Length of coverage) Category 3 months 4-6 months Not Applicable Full-time non-union workers Full-time union workers Part-time non-union workers * Companies could have more than one type of worker. Aggregating across columns is not appropriate. 26 reporting companies. 16

18 Table 22. Long Term Disability benefits (# of businesses) Long Term Disability Coverage* Category LT disability is provided, paid in FULL by employer LT disability is provided, paid in PART by employer LT disability is available for purchase by employee LT disability is not available Full-time nonunion workers Full-time union workers Part-time nonunion workers * Companies could have more than one type of worker. Aggregating across columns is not appropriate. 29 reporting companies. 17

19 RETIREMENT BENEFITS Many employees have strong feelings about retirement security. Mid- and late-career employees are more likely to have been attracted to their company partly for its retirement plan. Between 2009 and 2013, the percentage of workers age 50 and older who cited their retirement plan as an important factor in accepting their job climbed 19%. 10 Nationally, 90% of companies provide traditional 401(k) or a similarly defined contribution retirement plan, 55% of companies offer a Roth 401(k), and 24% offer a traditional defined benefit pension plan. 11 These trends are very similar in the Kyndle region. The large majority of the respondents offered a 401(k) plan and several companies provided a profit-sharing plan or defined benefit pension plans (Figure 12). Forty-nine of the responding businesses provide an employer-sponsored match to the 401(k) plan (Figure 13). Overwhelmingly, businesses provide a fixed % match to the employee s 401(k) plan versus contributing a fixed amount. Figure 14 provides an overview of the amount of time before employees are fully vested. The results suggest that for the most part, either employees are fully vested at time of hire or they are not fully vested until at least three years of service with the company. Figure 12 Retirement or profit sharing plan (# of businesses) 10 Attracting and Keeping Employees: The Strategic Value of Employee Benefits, Insider, Towers Watson, May Employee Benefits, A Research Report provided by Society for Human Resource Management,

20 Figure 13 Type of 401(k) match (# of businesses) Figure 14 Time before employees fully vested for 401(k) (# of businesses) 19

21 WORKFORCE TRAINING AND NEEDS An employer s investment in their workforce tends to allow workers to feel more engaged in the company. Research has found that receiving general training significantly decreases the odds that the employees would voluntarily quit their job within two years after receiving the training. 12 However, the effect of training on employee retention varies widely depending on the skills imparted by the training. Employees who learn computer skills and employees who undergo cross training are significantly more likely to stay in their jobs, whereas employees who learn to operate new equipment are significantly likely to voluntarily quit their jobs when observed after two years. Research has also found that companies tend to invest in the highly educated more than those with less formal education. Respondents were prompted to answer questions related to on-the-job training for employees, certifications and license opportunities, and tuition assistance programs. The summary of responses is provided below. 90% of respondents provide on-the-job training for the employees 90% of respondents provide an opportunity for employees to seek additional licenses, credentials, certificates 77% of respondents provide tuition assistance for the employees to attend a 2- or 4- year higher education institution 95% of respondents fully or partially contribute to the training programs In addition, the survey asked companies to prioritize the workforce issues they were facing. Figure 15 provides an overview of these results. The most common concern was employee turnover, an unskilled supply of labor, and a lack of soft skills. Some of the identified skills needed are basic math and reading skills, computer skills, attention to detail, use of hand tools knowledge, basic industrial and mechanical skills and technical skills. Among the identified types of training needed to have skilled workers are diploma or GED, specialized training for different machines and processes, electrician training and license, welding, and underground miners. 12 Srinivas, Sumati, Employer-Sponsored Training and Job Retention Of Mid-Career Employees, Journal of Business and Economics Research, 6(11),

22 Figure 15 Reported workforce challenges (by # businesses) *Companies could select more than one challenge Unskilled workers are those workers that lack basic skills such as reading, writing, math and communication skills. The untrained workers have the skills necessary for the position but they need training or retraining to be able to perform their job efficiently. In general, training unskilled workers is more costly and time consuming than training untrained workers. Most often, untrained, but skilled, workers can be trained on the job. Employee retention and turnover is a significant issue for the survey companies. Employee retention rates tend to be higher when employees are not satisfied with their job, do not foresee career advancement opportunities, or do not feel prepare for the job duties they are tasked with. Satisfaction can arise from higher wages, a larger benefit package, or just feeling appreciated and valued. A clearly defined career ladder is often highly valued among employees as well as opportunities for training and professional development. 21

23 ESTIMATED HOURLY WAGES In addition to gaining a better understanding of the benefits that companies provide, Kyndle also wanted a survey of wages within the region. The Kentucky Cabinet for Economic Development provides local wage data to economic development organizations across the state. These data are collected through Chmura s JobsEq database. 13 These data are proprietary and provide the ability to observe local industry and employment data. These data are estimated based on algorithms that Chmura creates and are not necessarily reflecting real conditions within a particular community. To ground truth the validity of these data, respondents were provided a list of common occupations within their selected industry and an hourly salary range based on JobsEq data (4 th Quarter, 2016). Respondents were asked to identify if the wages they offer fell within the range or below or above the range. The following section presents the survey results for those occupations that were identified as prevalent within an industry using a national database. The results exclude those occupations that were marked as not offered by the businesses participating in the survey. If nothing within a row was selected, it is assumed those occupations are not a part of the labor force for that particular industry. We asked companies to confirm or correct data from JobsEq that predicted occupations and expected wages within each aggregated industry. For example, in Table 23, the data provided by JobsEq appeared to reflect true conditions in the region for Food Batch-makers but the wage range was too low for general and operations managers within the food and textile manufacturing sectors. Tables 23 through 27 provide an overview of these results by industry. The numbers within each cell represents the number of businesses who either confirmed or corrected the wage range for each occupation

24 Table 23. Average Hourly Wage for Food & Textile Manufacturing (# of businesses) The average hourly wage we provide... Occupation Food Batch-makers Hourly Range: $11.30 $12.50 Cleaners of Vehicles and Equipment Hourly Range: $10.70 $11.90 Machine Feeders and Off-bearers Hourly Range: $12.20 $13.50 Graders and Sorters, Agricultural Products Hourly Range: $10.90 $12.10 Heavy and Tractor-Trailer Truck Drivers Hourly Range: $17.10 $19.00 Shipping, Receiving, and Traffic Clerks Hourly Range: $13.90 $15.50 Janitors and Cleaners, Except Maids Hourly Range: $11.30 $12.60 Mixing & Blending Machine Setters & Op. Hourly Range: $16.60 $18.40 Meat, Poultry, and Fish Cutters and Trimmers Hourly Range: $10.80 $12.00 Slaughterers and Meat Packers Hourly Range: $11.90 $13.20 Laborers & Freight, Stock & Material Movers Hourly Range: $11.60 $12.90 Packers and Packagers, Hand Hourly Range: $9.03 $10.00 Helpers-Production Workers Hourly Range: $11.00 $12.20 Packaging & Filling Machine Op. & Tenders Hourly Range: $14.50 $16.10 First-Line Supervisors & Operating Workers Hourly Range: $25.50 $28.30 Industrial Truck and Tractor Operators Hourly Range: $15.00 $16.60 Industrial Machinery Mechanics Hourly Range: $21.90 $24.30 Inspectors, Testers, Sorters, Samplers & Weighers Hourly Range $16.10 $17.80 Food Processing Workers, All Other Hourly Range: $11.00 $12.20 Maintenance and Repair Workers, General Hourly Range: $15.90 $17.60 Butchers and Meat Cutters Hourly Range: $12.70 $14.10 Food Cooking Machine Operators and Tenders Hourly Range: $13.30 $14.80 Is significantly lower than the range provided (more than 5%) Falls within the range, or within 5% of the range Is significantly higher than the range provided (more than 5%)

25 General & Operations Managers Hourly Range: $41.30 $45.70 Knitting, Weaving Machine Setters & Operators Hourly Range: $12.10 $13.50 Sewing Machine Operators Hourly Range: $10.80 $12.00 Winding, Twisting, Drawing Machine Setters Hourly Range: $11.70 $13.00 Textile Bleaching, Dyeing Machine Operators Hourly Range: $12.20 $13.60 Extruding, Forming Machine Setters & Operators Hourly Range: $14.50 $16.00 Sales Representatives, Wholesale & Mfg Hourly Range: $25.80 $28.60 Office Clerks, General Hourly Range: $12.70 $14.10 Textile Cutting Machine Setters, Operators & Tenders Hourly Range: $11.50 $12.80 Textile, Apparel, & Furnishings Workers, All Other Hourly Range: $12.40 $

26 Table 24. Average Hourly Wage for Transportation Manufacturing and Warehousing (# of businesses) The average hourly wage we provide... Occupation Is significantly lower than the range provided (more than 5%) Falls within the range, or within 5% of the range Is significantly higher than the range provided (more than 5%) Laborers & Freight Stock & Material Movers Hourly Range: $11.65 $12.90 Office Clerks Hourly Range: $12.70 $14.00 Industrial Truck & Tractor Operators Hourly Range: $15.00 $16.65 General & Operations Managers Hourly Range: $41.25 $41.75 Team Assemblers Hourly Range: $13.60 $15.10 Cutting, Punching, Press Machine Operators Hourly Range: $14.90 $16.50 First-Line Supervisors of Production Workers Hourly Range: $25.50 $28.30 Inspectors, Testers, Sorters, Weighers Hourly Range: $16.10 $17.80 Multiple Machine Tool Setters, Operators Hourly Range: $18.30 $20.30 Tool and Die Makers Hourly Range: $21.30 $23.70 Mechanical Engineers Hourly Range: $31.00 $34.40 Industrial Machinery Mechanics Hourly Range: $21.90 $24.30 Assemblers and Fabricators, All Other Hourly Range: $13.00 $14.30 Industrial Engineers Hourly Range: $36.00 $40.00 Maintenance and Repair Workers, General Hourly Range: $1590 $

27 Table 25. Average Hourly Wage for Mining and Utilities (# of businesses) The average hourly wage we provide... Occupation Engineers & Other Construction Equip Operators Hourly Range: $21.70 $24.00 Roof Bolters, Mining Hourly Range: $22.85 $25.30 Electricians Hourly Range: $26.20 $29.00 Excavating & Loading Machine &Dragline Operators Hourly Range: $18.20 $20.00 Continuous Mining Machine Operators Hourly Range: $20.50 $22.70 Mine Shuttle Car Operators Hourly Range: $22.10 $24.40 Mobile Heavy Equipment Mechanics, Except Engines Hourly Range: $20.90 $23.20 Heavy & Tractor-Trailer Truck Drivers Hourly Range: $17.10 $19.00 Extraction Workers, All Other Hourly Range: $23.30 $25.80 Helpers--Extraction Workers Hourly Range: $18.00 $19.90 Loading Machine Operators, Underground Mining Hourly Range: $22.50 $25.00 First-Line Supervisors of Mechanics Hourly Range: $27.00 $29.90 Welders, Cutters, Solderers, & Brazers Hourly Range: $17.10 $19.00 General & Operations Managers Hourly Range: $41.30 $45.70 Electrical Power-Line Installers & Repairers Hourly Range: $28.30 $31.30 Power Plant Operators Hourly Range: $34.00 $37.70 Water, Wastewater Treatment & System Operators Hourly Range: $18.10 $20.10 Customer Service Representatives Hourly Range: $14.30 $15.80 Electrical & Electronics Repairers Hourly Range: $31.60 $35.00 Electrical Engineers Hourly Range: $36.40 $40.40 Is significantly lower than the range provided (more than 5%) Falls within the range, or within 5% of the range Is significantly higher than the range provided (more than 5%)

28 First-Line Supervisors of Production and Op. Workers Hourly Range: $25.50 $ Industrial Machinery Mechanics Hourly Range: $21.90 $24.30 Maintenance & Repair Workers, General Hourly Range: $15.90 $

29 Table 26. Average Hourly Wage for Metal and Machinery Manufacturing (# of businesses) Occupation First-Line Supervisors of Production & Op. Workers Hourly Range: $25.50 $28.30 Industrial Machinery Mechanics Hourly Range: $21.90 $24.30 Maintenance and Repair Workers, General Hourly Range: $15.90 $17.60 Electricians Hourly Range: $26.20 $29.02 Welders, Cutters, Solderers, and Brazers Hourly Range: $17.10 $19.00 General and Operations Managers Hourly Range: $41.20 $45.70 Helpers--Production Workers Hourly Range: $11.00 $12.18 Industrial Engineers Hourly Range: $36.00 $40.00 Molding, Coremaking, Casting Machine Setters Hourly Range: $13.40 $14.90 Cutting, Punching, Press Machine Operators Hourly Range: $14.90 $16.50 Foundry Mold and Coremakers Hourly Range: $15.60 $17.30 Metal-Refining Furnace Operators and Tenders Hourly Range: $17.80 $19.70 Inspectors, Testers, Sorters, Samplers, and Weighers Hourly Range: $16.10 $17.80 Extruding, Drawing Machine Setters, Op & Tenders Hourly Range: $15.60 $17.30 Industrial Truck and Tractor Operators Hourly Range: $15.00 $16.70 Pourers and Casters, Metal Hourly Range: $16.20 $18.00 Production Workers, All Other Hourly Range $12.40 $13.70 Tool and Die Makers Hourly Range: $21.30 $23.70 Laborers and Freight, Stock, & Material Movers, Hand Hourly Range: $11.60 $12.60 Shipping, Receiving, and Traffic Clerks Hourly Range: $13.90 $15.50 Multiple Machine Tool Setters, Operators & Tenders Hourly Range: $18.30 $20.30 Is significantly lower than the range provided (more than 5%) The average hourly wage we provide... Falls within the range, or within 5% of the range Is significantly higher than the range provided (more than 5%)

30 Rolling Machine Setters, Operators, and Tenders Hourly Range: $17.80 $19.70 Industrial Production Managers Hourly Range: $46.60 $51.70 Sales Representatives, Wholesale & Manufacturing Hourly Range: $25.80 $28.60 First-Line Super. of Mechanics, Installers & Repairers Hourly Range: $27.00 $29.90 Machinists Hourly Range: $18.10 $20.10 Team Assemblers Hourly Range: $13.60 $15.10 Structural Metal Fabricators and Fitters Hourly Range: $16.50 $18.30 Computer-Controlled Machine Tool Operators Hourly Range: $17.50 $19.40 Grinding, Lapping, Buffing Machine Operators Hourly Range: $14.60 $16.20 Office Clerks, General Hourly Range: $12.70 $14.10 Sheet Metal Workers Hourly Range: $20.90 $

31 Table 27. Average Hourly Wage for Wood, Paper, Plastic & Chemical Manufacturing (# of businesses) Occupation Paper Goods Machine Setters, Operators &Tenders Hourly Range: $13.70 $15.20 Helpers--Production Workers Hourly Range: $11.00 $12.20 General and Operations Managers Hourly Range: $41.30 $45.70 Team Assemblers Hourly Range: $13.60 $15.10 First-Line Supervisors of Production & Op. Workers Hourly Range: $25.50 $28.30 Inspectors, Testers, Sorters, Samplers & Weighers Hourly Range: $16.10 $17.80 Industrial Machinery Mechanics Hourly Range: $21.90 $24.30 Maintenance and Repair Workers, General Hourly Range: $15.90 $17.60 Laborers & Freight, Stock & Material Movers, Hand Hourly Range: $11.60 $12.90 Extruding, Forming, Pressing Machine Operators Hourly Range: $13.20 $14.60 Molding, Coremaking, Casting Machine Setters, Tenders Hourly Range: $13.40 $14.90 Extruding, Drawing Machine Setters, Operators Hourly Range: $15.60 $17.30 Industrial Truck and Tractor Operators Hourly Range: $15.00 $16.60 Packers and Packagers, Hand Hourly Range: $9.03 $10.00 Shipping, Receiving, and Traffic Clerks Hourly Range: $13.90 $15.50 Is significantly lower than the range provided (more than 5%) The average hourly wage we provide... Falls within the range, or within 5% of the range Is significantly higher than the range provided (more than 5%)

32 CONCLUSION Kyndle, the Kentucky Network for Development, Leadership and Engagement commissioned the Community and Economic Development Initiative of Kentucky (CEDIK) to conduct a wage and benefit survey for the region. A comprehensive online survey was disseminated to manufacturing, mining, and utility companies within the region. The survey looked at paid leave benefits, bonus and rewards, health and wellness benefits, other insurance types, such as Short Term and Long Term Disability, as well as workforce training and needs and hourly wage ranges for different industry occupations. Sixty-four companies completed the survey. Henderson County businesses have the highest representation, followed by Union, McLean and Webster Counties. Metal Machinery Manufacturing and Wood, Paper, Plastic & Chemical Products Manufacturing are the two most represented industries in the survey. Almost all the responding companies offer paid holidays, but only 33% offer paid sick leave. Some of the biggest challenges identified by the responding companies are employee turnover, unskilled labor supply and lack of soft skills necessary for the job duties. Having a better understanding of the landscape of wages and benefit packages within the region can assist companies in identifying the competitive market wages and benefits that could attract and retain a skilled workforce. In addition, Kyndle, in partnership with other regional entities can address some of the key workforce obstacles that business leaders identified. The intended goal is to improve the productivity of the workforce thereby improving the competitiveness of the firms located within the Kyndle region. 31

33 APPENDIX Survey results by business size For this analysis, businesses were classified as large or small using the following criteria: A business is considered large if it would have either >51 full-time salaried employees or >51 full-time hourly employees. There were 36 companies under this classification. Likewise, if a business had either <50 full-time salaried or <50 full-time hourly employees, than the business is small. Twenty-eight companies were classified as small. Figure 16 Number of businesses that provide bonus Table A1. Bonus type (# of businesses) Production Hiring Holiday Annual Retention Other* Industry based bonus bonus bonus bonus Large companies Small companies *Other type of bonuses: annual bonus based on company or individual performance, management bonus, incentive bonus, profit share and bonus based on sales or budget goals Table A2. Number of businesses with projected increase for wage & salaries over next 12 months 0% change 1%-2% 2%-4% 5% or Industry increase increase higher Large companies Small companies

34 Figure 17 Number of businesses with Union representation Table A3. Percent of workforce covered by Union (# of businesses) Industry 26-50% 51-75% >75% Large companies Small companies Table A4. Union representation by type of workers (# of businesses) Industry Production Maintenance Trasnportation Office Other Large companies Small companies Figure 18 Businesses that offer paid holidays 33

35 Figure 19 Number of businesses that provide paid time off Table A5. Average number of annual Paid Time Off days by years of service 1 year or or more Industry less years years years years years years Large companies Small companies Figure 20 Number of businesses that offer paid sick leave Table A6. Number of sick days offered (# of businesses) Industry 1-2 days 3-5 days 6-10 days >10 days Large companies Small companies

36 Table A7. Eligibility for paid sick days (# of businesses) Industry Immediately 1-3 months 3-6 months 6-12 months >1 year Large companies Small companies Figure 21 Number of businesses that offer bereavement leave Table A8. Number of bereavement days offered (# of businesses) Industry 1 day 2 days 3 days 4 days 5 days >5 days Large companies Small companies Figure 22 Number of businesses that provide jury duty compensation 35

37 Health and Wellness Benefits Table A9. Group Health Insurance & Employee s Fam. & Kids Insurance (# of businesses) Insurance Type Employment Type Small Companies Large Companies Group health insurance Full-time salaried (Non-union) Group health insurance Full-time hourly (Non-union) Group health insurance Part-time hourly (Non-union) 3 2 Group health insurance Full-time salaried (union) 1 1 Group health insurance Full-time hourly (union) 1 8 Health insurance to employee's fam. & kids Full-time salaried (Non-union) Health insurance to employee's fam. & kids Full-time hourly (Non-union) Health insurance to employee's fam. & kids Part-time hourly (Non-union) 3 2 Health insurance to employee's fam. & kids Full-time salaried (union) 1 1 Health insurance to employee's fam. & kids Full-time hourly (union) 1 8 Table A10. Health Savings Account and Life Insurance (# of businesses) Insurance Type Employment Type Small Companies Large Companies Health Savings Account Full-time salaried (Non-union) 8 19 Health Savings Account Full-time hourly (Non-union) 8 16 Health Savings Account Part-time hourly (Non-union) 0 1 Health Savings Account Full-time salaried (union) 0 1 Health Savings Account Full-time hourly (union) 0 6 Life Insurance Full-time salaried (Non-union) Life Insurance Full-time hourly (Non-union) Life Insurance Part-time hourly (Non-union) 2 2 Life Insurance Full-time salaried (union) 1 1 Life Insurance Full-time hourly (union) 1 8 Table A11. Vision and Dental Insurance (# of businesses) Insurance Type Employment Type Small Companies Large Companies Vision plan Full-time salaried (Non-union) Vision plan Full-time hourly (Non-union) Vision plan Part-time hourly (Non-union) 3 2 Vision plan Full-time salaried (union) 1 1 Vision plan Full-time hourly (union) 1 8 Dental plan Full-time salaried (Non-union) Dental plan Full-time hourly (Non-union) Dental plan Part-time hourly (Non-union) 3 2 Dental plan Full-time salaried (union) 1 1 Dental plan Full-time hourly (union)

38 Table A12. Short Term and Long Term Disability (# of businesses) Insurance Type Employment Type Small Companies Large Companies Short Term Disability Full-time salaried (Non-union) Short Term Disability Full-time hourly (Non-union) Short Term Disability Part-time hourly (Non-union) 1 1 Short Term Disability Full-time salaried (union) 1 1 Short Term Disability Full-time hourly (union) 1 6 Long Term Disability Full-time salaried (Non-union) Long Term Disability Full-time hourly (Non-union) Long Term Disability Part-time hourly (Non-union) 0 1 Long Term Disability Full-time salaried (union) 0 1 Long Term Disability Full-time hourly (union) 0 6 Table A13. Premium paid by the employee and employer for basic DENTAL insurance Type of Premium Person/s Covered Small Companies Large Companies Employer paid premium Employee $11 $29 Employer paid premium Employee s Family $20 $103 Employer paid premium Employee + Family Together $19 $61 Employee paid premium Employee $28 $23 Employee paid premium Employee s Family $44 $71 Employee paid premium Employee + Family Together $65 $44 Table A14. Group Health Insurance for Union and Non-union Workers (# of businesses) Insurance Type Insurance Type Small Companies Large Companies Group health insurance for Non-union employees HMO plan 2 2 Group health insurance for Non-union employees PPO plan 13 6 Group health insurance for Non-union employees Self-insured HMO plan 1 0 Group health insurance for Non-union employees Self-insured PPO plan 4 15 Group health insurance for Non-union employees Other 2 4 Group health insurance for Union employees HMO plan 0 0 Group health insurance for Union employees PPO plan 1 1 Group health insurance for Union employees Self-insured HMO plan 0 0 Group health insurance for Union employees Self-insured PPO plan 1 6 Group health insurance for Union employees Other

39 Table A15. Average monthly premium by type of insurance Person/s Covered Insurance Type Small Companies Large Companies Employee Only Health Insurance PPO-Paid by employee n/a $73 Employee Only Health Insurance PPO-Paid by employer n/a n/a Employee Only Health Insurance HMO-Paid by employee n/a $76 Employee Only Health Insurance HMO-Paid by employer n/a $109 Employee Only Self-Insured PPO-Paid by employee $172 $129 Employee Only Self-Insured PPO-Paid by employer $451 $802 Employee Only Self-insured HMO-Paid by employee n/a n/a Employee Only Self-insured HMO-Paid by employer n/a n/a Employee Only Other-Paid by employee n/a $169 Employee Only Other-Paid by employer n/a $831 Employee + Spouse Health Insurance PPO-Paid by employee n/a $228 Employee + Spouse Health Insurance PPO-Paid by employer n/a n/a Employee + Spouse Health Insurance HMO-Paid by employee n/a $206 Employee + Spouse Health Insurance HMO-Paid by employer n/a $265 Employee + Spouse Self-Insured PPO-Paid by employee $370 $294 Employee + Spouse Self-Insured PPO-Paid by employer $976 $1,526 Employee + Spouse Self-insured HMO-Paid by employee n/a n/a Employee + Spouse Self-insured HMO-Paid by employer n/a n/a Employee + Spouse Other-Paid by employee n/a $424 Employee + Spouse Other-Paid by employer n/a $1,596 Family Health Insurance PPO-Paid by employee n/a $287 Family Health Insurance PPO-Paid by employer n/a n/a Family Health Insurance HMO-Paid by employee n/a $296 Family Health Insurance HMO-Paid by employer n/a $827 Family Self-Insured PPO-Paid by employee $471 $426 Family Self-Insured PPO-Paid by employer $1,475 $2,191 Family Self-insured HMO-Paid by employee n/a n/a Family Self-insured HMO-Paid by employer n/a n/a Family Other-Paid by employee n/a $627 Family Other-Paid by employer n/a $2,388 38