Salary Budget Survey

Transcription

1 30 TH annual Salary Budget Survey WorldatWork Association Headquarters N. Northsight Blvd., Scottsdale, AZ , U.S.A. Phone: 480/ Toll free: 877/ Fax: 480/ ISBN WorldatWork About WorldatWork WorldatWork is the world s leading not-for-profit professional association dedicated to knowledge leadership in compensation, benefits and total rewards. Founded in 1955, WorldatWork focuses on disciplines associated with attracting, retaining and motivating employees. In addition to providing professional affiliation, WorldatWork offers highly acclaimed certifications (CCP, CBP TM and GRP ) and education programs, the monthly workspan magazine, online information resources, surveys, publications, conferences, research and networking opportunities.

2 Table of Contents Structure of the Report...1 Methodology...1 Industry Data...2 Respondent Demographics...3 UNITED STATES SURVEY HIGHLIGHTS Executive Summary of Trends...7 Salary Budget Increases...8 Percentage of Employees Receiving a Base Salary Increase...11 Salary Structure Adjustments...12 Promotional Increases...15 Variable Pay, Incentives and Bonuses...16 Stock/Equity Based Compensation...20 Attraction and Retention Practices...21 Global Comparison Salary Increases vs. Rates of Inflation...21 National Data Nonexempt Hourly Nonunion Employees...25 Nonexempt Salaried Employees...26 Exempt Salaried Employees...27 Officer/Executive Level...28 Salary Structure Adjustments...29 Central Region Nonexempt Hourly Nonunion Employees...30 Nonexempt Salaried Employees...31 Exempt Salaried Employees...32 Officer/Executive Level...33 Salary Structure Adjustments...34 Eastern Region Nonexempt Hourly Nonunion Employees...35 Nonexempt Salaried Employees...36 Exempt Salaried Employees...37 Officer/Executive Level...38 Salary Structure Adjustments...39 Southern Region Nonexempt Hourly Nonunion Employees...40 Nonexempt Salaried Employees...41 Exempt Salaried Employees...42 Officer/Executive Level...43 Salary Structure Adjustments...44 Western Region Nonexempt Hourly Nonunion Employees...45 Nonexempt Salaried Employees...46 Exempt Salaried Employees...47 Officer/Executive Level...48 Salary Structure Adjustments...49 Budgeted Promotional Increases for 2002 As a Percentage of Total Base Salaries...50 As a Percentage of Total Employee Population...51 As a Percentage of Promoted Employees Base Salary..52 Variable Pay Nonexempt Hourly Nonunion...53 Nonexempt Salaried...54 Exempt Salaried...55 Officer/Executive...56 CANADA SURVEY HIGHLIGHTS Executive Summary of Trends...57 Salary Budget Increases...58 Percentage of Employees Receiving a Base Salary Increase...61 Salary Structure Adjustments...62 Promotional Increases...64 Variable Pay, Incentives and Bonuses...64 Stock/Equity-Based Compensation...65 Attraction and Retention Practices...66 National Data Nonmanagement Hourly Nonunion Employees...67 Nonmanagement Salaried Employees...68 Management Salaried Employees...69 Officer/Executive Level...70 Salary Structure Adjustments...71 Regional Data...72 PARTICIPANT LISTING U.S. Firms...75 Canadian Firms...88 Survey Definitions Salary Budget Survey questionnaire...91

3 Table of Figures Figure A: Industries with Reported Data...2 Figure B: Number of Responses...3 Figure C: 2003 Responses by U.S. Region...3 Figure D: 2003 Responses by Canadian Region...3 Figure E: U.S. Responses by Industry Classifications...4 Figure F: Canadian Responses by Industry Classifications...5 UNITED STATES SURVEY HIGHLIGHTS Figure 1: Salary Budget Increases...8 Figure 2: Salary Budget Trends...9 Figure 3: Salary Budget Increases by Region...10 Figure 4: Salary Increase Data for Major Industry Groupings, Exempt Employees Historical...10 Figure 5: Percent of Employees Receiving a Base Salary Increase...11 Figure 6: Percent of Employees Receiving a Base Salary Increase by Region...11 Figure 7: Salary Structure Increases...12 Figure 8: Percent of Companies Reporting No (0%) Salary Structure Increase...12 Figure 9: Salary Structure Trends...13 Figure 10: Salary Structure Increases by Region...13 Figure 11: 10-Year Perspective Salary and Structure Increases...14 Figure 12: Promotional Increase Budgets...15 Figure 13: Promotional Increases...15 Figure 14: Use of Variable Pay...16 Figure 15: Types of Variable Pay Programs...16 Figure 16: Variable Pay Programs...17 Figure 17: Variable Pay Programs by Region...18 Figure 18: Types of Stock-Based Incentive Programs Offered by Employee Category...20 Figure 19: Public Companies: Types of Stock-Based Incentive Programs Offered by Employee Category...20 Figure 20: Private Companies: Types of Stock-Based Incentive Programs Offered by Employee Category...21 Figure 21: Programs Used in the Past 12 Months to Attract and Retain Employees...21 Figure 22: International Remuneration: Salary Increase Projections...22 CANADA SURVEY HIGHLIGHTS Figure C1: Salary Budget Increases...58 Figure C2: Salary Budget Trends...59 Figure C3: Salary Budget Increases by Province...60 Figure C4: Salary Increase Data for Major Industry Groupings, Management Employees Historical...60 Figure C5: Percent of Employees Receiving a Base Salary Increase...61 Figure C6: Percent of Employees Receiving a Base Salary Increase by Province...61 Figure C7: Salary Structure Increases...62 Figure C8: Salary Structure Trends...62 Figure C9: 10-Year Perspective Salary and Structure Increases...63 Figure C10: Promotional Increases...64 Figure C11: Types of Variable Pay Programs...64 Figure C12: Variable Pay Programs...65 Figure C13: Types of Stock-Based Incentive Programs Offered by Employee Category...65 Figure C14: Programs Used in the Past 12 Months to Attract and Retain Employees...66

4 Structure of the Report This report contains five sections. Section one presents the highlights and key findings of the U.S. data. Section two contains detailed U.S. data, broken out into industry and sub-industry groups (see Industry Classifications on page 4) and regional categories. The regional categories for the United States are shown on the map below (or see the list on page 3). Section three presents highlights and key findings of the Canadian data. Section four contains detailed Canadian data broken out by region (listed on page 3) and industry groups, as allowed by sample size. (See page 5 for Canadian industry listings.) Finally, section five includes a list of participating organizations, provides definitions for terms used in the survey, and contains a copy of the questionnaire for reference. U.S. data is broken into four employment categories, as defined by the Fair Labor Standards Act of 1938 (FLSA): Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/Executives Canadian data also is broken into four employment categories: Nonmanagement Hourly Nonunion Nonmanagement Salaried Management Salaried Officers/Executives Methodology Canada Western Central Southern Eastern On April 1, 2003, all U.S. and Canadian WorldatWork members received notification (by both postal mail and electronic mail) of the opening of the Salary Budget Survey. A total of 20,636 U.S. members and 1,923 Canadian members were invited to participate in the online, electronic data collection effort. When the survey officially closed on May 1, 2003, 3,272 responses had been received. Submissions from organizations with fewer than 10 employees and multiple submissions from the same organization were eliminated from the data set. The final data contains 3,129 responses, analyzed by statistical software. A full list of organizations that responded to this year s survey can be found beginning on page 75. To ensure the anonymity of individual organizations, WorldatWork has chosen to not publish or otherwise make available data points in which fewer than five survey participants responded. WorldatWork Salary Budget Survey 1

5 Industry Data Industry tables for both U.S. and Canadian data are based on participant self-reported codes using the North American Industry Classification System (NAICS). The two- and three-digit codes selected for use with the data set are presented in Figure A. All major industry codes (two-digit) were used regardless of total sample size, and some industry subsets (three-digit) were broken out because of sufficiently large sample size. This report follows the NAICS codes, with one exception: Telecommunications (code 517), which resides as a subset of Information (code 51) in the NAICS. Due to the large sample size (n=87 U.S. and n=19 Canada) and for ease of reader use, Telecommunications was taken out of the major group Information, and placed into its own category for the report. The main industry categories report data for all respondents within the category, regardless of whether they also are reported in a subcategory. Industry subcategories that did not have an adequate response are not broken out in the report. Therefore, the sum of all subcategories may not equal the main industry category s sample size. The following is a list of industry categories reported. Full definitions for these industry categories can be found at the NAICS Web site ( FIGURE A: INDUSTRIES WITH REPORTED DATA Industry/Sub-Industry NAICS Code Industry/Sub-Industry NAICS Code Accommodation & Food Services 72 Administrative Support & Waste Management 56 Agriculture, Forestry, Fishing & Hunting 11 Arts, Entertainment & Recreation 71 Construction 23 Consulting, Professional, Scientific & Technical Services 54 Educational Services 61 Finance & Insurance 52 Credit Intermediation & Related Activities 522 Funds, Trusts & Other Financial Vehicles* 525 Insurance Carriers & Related Activities 524 Securities, Commodity Contracts & Other Financial Investments 523 Health Care & Social Assistance 62 Hospitals* 622 Ambulatory Health Care, Nursing & Residential Care & Social Assistance* 621 Information 51 Internet Publishing, Broadcasting, Service Providers, Web Search Portals & Data Processing Services * 516, 518 Publishing Industries (except Internet)* 511 Motion Picture, Sound Recording, Broadcasting (except Internet)* 512, 515 Management of Companies & Enterprises* Chemical 325 Computer & Electronic Product 334 Electrical Equipment, Appliance & Component 335 Food, Beverage & Tobacco Product 311, 312 Machinery * 333 Metal 331, 332 Paper, Printing & Related Support Activities* 322, 323 Plastics & Rubber Products * 326 Textile Mills, Apparel, Leather & Allied Product * 313, 314, 315, 316 Transportation Equipment * 336 Other Miscellaneous * 339 Mining 21 Public Administration 92 Real Estate, Rental & Leasing 53 Retail Trade 44 Telecommunications 517 Transportation 48 Air Transportation* 481 All Other Transportation* Utilities 22 Wholesale Trade 42 Other Services (except Public Administration) 81 Religious, Grantmaking, Civic, Professional & Similar Organizations* 813 * Only included in U.S. tables 2 WorldatWork Salary Budget Survey

6 Respondent Demographics WorldatWork received a 10-percent increase in the number of responses to the Salary Budget Survey, despite electronic-only participation. (See Figure B.) For the first time in the survey s history, no paper surveys were sent to members unless specifically requested. Responses were distributed fairly evenly throughout the United States, providing good representation among all four regions. (See Figure C.) Canadian responses were more concentrated in Ontario, Alberta, British Columbia and Quebec. (See Figure D.) FIGURE B: NUMBER OF RESPONSES Total U.S. Canada ,868 2, , ,832 2, ,129 2, FIGURE C: 2003 RESPONSES BY U.S. REGION Total Eastern 1,339 Central 1,404 Southern 1,233 Western 1,271 FIGURE D: 2003 RESPONSES BY CANADIAN REGION Total Ontario 213 Alberta 135 British Columbia 125 Quebec 116 Manitoba 80 Note: The combined responses in Figure C and Figure D add up to greater than the total U.S. and Canadian response because some participants answered for multiple regions or nationally, and thus, would be contained in multiple regions. Saskatchewan 74 Nova Scotia 73 New Brunswick 63 New Foundland 49 Prince Edward Island 34 Northwest Territories 12 Yukon 10 Nunavut 8 WorldatWork Salary Budget Survey 3

7 Respondents self-classified using the North American Industry Classification System (NAICS). FIGURE E: U.S. RESPONSES BY INDUSTRY CLASSIFICATIONS NAICS Industry n Percent of Respondents % 52 Finance & Insurance % 51 Information (including Telecommunications) % 62 Health Care & Social Assistance % 54 Consulting, Professional, Scientific & Technical Services % 44 Retail Trade % 92 Public Administration % 61 Educational Services % 22 Utilities % 48 Transportation % 42 Wholesale Trade % 81 Other Services (except Public Administration) % 56 Administrative & Support & Waste Management & Remediation % 53 Real Estate & Rental & Leasing % 21 Mining % 72 Accommodation & Food Services % 23 Construction % 71 Arts, Entertainment & Recreation % 55 Management of Companies & Enterprises % 11 Agriculture, Forestry, Fishing & Hunting % 4 WorldatWork Salary Budget Survey

8 FIGURE F: CANADIAN RESPONSES BY INDUSTRY CLASSIFICATIONS NAICS Industry n Percent of Respondents % 52 Finance & Insurance % 51 Information (Including Telecommunications) % 54 Consulting, Professional, Scientific & Technical Services % 92 Public Administration % 21 Mining % 44 Retail Trade % 48 Transportation % 22 Utilities % 42 Wholesale Trade 8 2.9% 61 Educational Services 7 2.5% 62 Health Care & Social Assistance 6 2.1% 81 Other Services (except Public Administration) 6 2.1% 71 Arts, Entertainment & Recreation 5 1.8% 11 Agriculture, Forestry, Fishing & Hunting 3 1.1% 72 Accommodation & Food Services 3 1.1% 23 Construction 2 0.7% 56 Administrative & Support & Waste Management & Remediation 2 0.7% 53 Real Estate & Rental & Leasing 1 0.4% WorldatWork Salary Budget Survey 5

9 6 WorldatWork Salary Budget Survey

10 U Executive Summary of Trends United States The WorldatWork Salary Budget Survey marked several important milestones. For this 30th annual report, a record-breaking response was received. At the same time, salary budget estimates hit all-time lows. Actual salary increase budgets for 2003 are falling short of the levels projected a year ago. Participating organizations are reporting an actual average salary budget increase of 3.5 percent in 2003, 0.6 percent lower than the 4.1 percent projected in April The projected figures for 2004 salary budgets look slightly better than the 2003 actual figures, at 3.7 percent. In addition to modest salary increase budgets for 2004, survey respondents also indicated that fewer employees might receive pay raises. Nationally, about 83 percent of employees are likely to receive a base salary increase in 2003, down from 85 percent in 2002, and 94 percent who received an increase in Additionally, organizations are extending the time between increases. Workers of all ranks today may go up to two years between non-promotional salary increases, according to this year s data. Salary structure increases in 2003 will average 2.1 percent, with more than one-third reporting no increase (0 percent) in their salary structure. While a 2.1-percent increase is still on the positive side, the figure is less than projected a year ago, and sets another historical survey low. Projections for 2004 indicate the salary structures may increase modestly to 2.3 percent. For the third consecutive year, the use of variable pay is on the rise. Three-quarters of all organizations in the survey now are reporting some sort of variable pay program. The actual paid incentive for 2002 was less than the amount budgeted, but nonetheless represented a slight increase. Average amounts of variable pay actually paid out ranged from 5.7 percent of base pay for hourly workers, to 11.7 percent for management and 29.8 percent for executives. The outlook for variable pay in the year ahead looks very similar. Stock-based compensation programs continue to be popular despite the volatility in equity markets in recent years. Seventy percent of all organizations that have stock in this year s survey report using it in stock-based compensation programs. In 2002, stock options were far and away the most popular program used by organizations, followed by restricted stock. Eighty-four percent of companies with stock programs report offering stock options to executives in Stock options also were offered to managers in 63 percent of organizations, and even to hourly workers in 15 percent of organizations. The Salary Budget Survey reports data for more than 15.8 million U.S. employees from the organizations participating in the survey. Collected in April of 2003, this data represents a broad range of industries, distributed fairly evenly across four regions of the United States. WorldatWork Salary Budget Survey 7

11 Survey Highlights U.S. Salary Budget Increases For the second consecutive year, actual salary increase budgets are lower than figures projected the prior year. Excluding promotional increases (see page 15), 2003 actual salary budgets are lower by nearly one-half of 1 percent than the 2003 projections made a year ago across all employment categories. The good news is that, although projections for 2004 are lower than projections were a year ago for 2003, the 2004 projections are one- to two-tenths of a percent higher than 2003 actual budgets, indicating some optimism going forward. (See Figure 1.) For the first time in the history of this report, both the actual 2003 and the projected 2004 average officer/ executive salary increase budgets have come in at less than 4 percent. Just over 11 percent of all survey respondents ended up budgeting no salary increase (0 percent) for their officer/executive positions for All other categories of employee groups also are in record low territory in terms of 2003 salary budget increases. Nearly six percent (5.7 percent) of respondents have budgeted an increase of 0 percent for their nonexempt hourly nonunion employees for 2003, while 6.9 percent report no budget increase (0 percent) for nonexempt salaried employees, and 6.8 percent have no increase (0 percent) scheduled for exempt-level employees this year. For 2003, nearly 40 percent of respondents report less than a 3 percent total increase for both nonexempt hourly nonunion employees and nonexempt salaried employees. One-third of respondents report less than 3 percent for exempt salaried employees this year, 20 percent report an actual increase between 3 percent and 4 percent, and less than 16 percent report an increase between 4 percent and 5 percent. Figure 1: Salary Budget Increases Salary Increases Number of Months Between Increases Projected 2001 Actual 2001 Projected 2002 Actual 2002 Projected 2003 Actual 2003 Projected 2004 Actual 2002 Projected 2003 Actual 2003 Projected 2004 Nonexempt Hourly Nonunion 4.3% 4.3% 4.3% 3.7% 3.9% 3.5% 3.6% Nonexempt Salaried 4.4% 4.4% 4.4% 3.7% 4.0% 3.4% 3.6% Exempt Salaried 4.5% 4.6% 4.5% 3.9% 4.1% 3.6% 3.7% Officers/ Executives 4.7% 4.7% 4.7% 4.0% 4.3% 3.6% 3.8% WorldatWork Salary Budget Survey

12 The Salary Budget Survey is the 30th annual WorldatWork salary budget survey, and marks the lowest total salary budget increase levels in the history of the survey. It also should be noted that inflation (measured by Consumer Price Index, or CPI) is at some of the lowest levels in many years. Figure 2 shows the 30-year history of salary budget trends, and Figure 11 on page 14 puts these trends into context with the CPI. FIGURE 2: SALARY BUDGET TRENDS Survey Highlights U.S. Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executives Projected WorldatWork Salary Budget Survey 9

13 Survey Highlights U.S. Figure 3 indicates that U.S. regional salary budget trends on an actual basis are generally following the national trend downward, with some minor variations within certain employment groups and certain regions. The exempt salaried employee group is the only group that is tracking both on a national level and region-by-region. Projected budget numbers for 2004 show signs of modest optimism across all regions. FIGURE 3: SALARY BUDGET S BY REGION Central Eastern Southern Western Actual 2002 Actual 2003 Projected 2004 Actual 2002 Actual 2003 Projected 2004 Actual 2002 Actual 2003 Projected 2004 Actual 2002 Actual 2003 Projected 2004 Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executives Figure 4 condenses the 44 specific industry groupings reported in Figure A (page 2) into seven major groupings historically reported by the WorldatWork Salary Budget Survey. The data shown in Figure 4 represents total salary increases for U.S. exempt employees. Three of the major industry groupings, Public Administration, Transportation/Utility and Wholesale, show the most drastic decline in budget increases through the three-year period of 2001 to The Public Administration sector seemed immune to the downward budgeting until this year when actual 2003 increases are down 1.3 percentage points over 2002 actual budgets. FIGURE 4: SALARY DATA FOR MAJOR INDUSTRY GROUPINGS, EXEMPT EMPLOYEES HISTORICAL Actual 2001 Actual 2002 Projected 2003 Actual 2003 Projected 2004 Finance Public Administration Retail Service Transportation/Utility Wholesale WorldatWork Salary Budget Survey

14 Percent of Employees Receiving a Base Salary Increase Figure 5 reveals that, on average, participating firms will give a base salary increase to 83 percent of all employees in 2003, slightly lower than last year s reported figure of 85 percent. While the majority of survey participants indicated that this percentage is similar to last year, more than 15 percent across all employee groups reported that the percent of employees who will be receiving a base increase this year is smaller than the percent of employees who received an increase in Survey Highlights U.S. FIGURE 5: PERCENT OF EMPLOYEES RECEIVING A BASE SALARY Percent of employees receiving an increase is than 2002 Larger Similar Smaller Nonexempt Hourly Nonunion 84.5% 9% 76% 15% Nonexempt Salaried 83.8% 11% 72% 18% Exempt Salaried 83.4% 11% 72% 17% Officers/ Executives 79.4% 12% 70% 18% When looked at regionally, the Central region reported the highest percentages of employees who will receive some form of a base salary increase in 2003, while the Western region lags. FIGURE 6: PERCENT OF EMPLOYEES RECEIVING A BASE SALARY BY REGION Central Eastern Southern Western Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executives WorldatWork Salary Budget Survey 11

15 Survey Highlights U.S. Salary Structure Adjustments Salary structures refer to a schedule of formal salary ranges with established minimums and maximums. Organizations frequently have a control point (often the midpoint) within each salary range. As a general rule, the numbers displayed below refer to the percentage increase in the salary structure pay line encompassing all salary range control points. Figure 7 shows that 2003 actual salary structure increases are not only down from the projections made a year ago, but mark record lows across all employment categories. A significant number of organizations (including 28 percent in nonexempt salaried and 37 percent in officers/executives) reported 0 increase to their structure in (See Figure 8.) The average structure adjustments kept nearly identical pace with the U.S. CPI, which increased 2.2 percent in the 12 months ending April Projections for 2004 suggest a slight increase in structure movement compared to actual (See Figure 9 on page 13.) Noteworthy among major industry groups is the Accommodation and Food Services industry, which reported significantly higher structure adjustments (2.7 percent to 3.4 percent) for The Air Transportation industry reported very low structure adjustments (0.9 percent to 1.4 percent). FIGURE 7: SALARY STRUCTURE S 2001 Projected 2001 Actual 2002 Projected 2002 Actual 2003 Projected 2003 Actual 2004 Projected Nonexempt Hourly Nonunion 2.9% 3.0% 3.0% 2.3% 2.6% 2.0% 2.2% Nonexempt Salaried 3.0% 3.1% 3.0% 2.4% 2.7% 2.3% 2.4% Exempt Salaried 3.1% 3.2% 3.1% 2.5% 2.8% 2.1% 2.4% Officers/Executive 3.1% 3.0% 3.1% 2.4% 2.7% 2.2% 2.3% FIGURE 8: PERCENT OF COMPANIES REPORTING NO (0%) SALARY STRUCTURE 2002 Actual 2003 Projected 2003 Actual 2004 Projected Nonexempt Hourly Nonunion 29% 15% 34% 21% Nonexempt Salaried 25% 11% 28% 17% Exempt Salaried 25% 12% 31% 18% Officers/Executive 31% 15% 37% 22% 12 WorldatWork Salary Budget Survey

16 FIGURE 9: SALARY STRUCTURE TRENDS Year Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/Executives % 3.2% 3.1% % 2.8% 2.7% % 2.5% 2.5% % 2.4% 2.4% % 2.8% 2.9% 3.0% % 2.5% 2.7% 2.6% % 2.7% 2.9% 2.7% % 2.7% 2.9% 2.7% % 2.8% 3.0% 2.9% % 3.1% 3.2% 3.0% % 2.4% 2.5% 2.4% % 2.3% 2.1% 2.2% 2004 Projected 2.2% 2.4% 2.4% 2.3% Survey Highlights U.S. FIGURE 10: SALARY STRUCTURE S BY REGION Central Eastern Southern Western Actual 2003 Projected 2004 Actual 2003 Projected 2004 Actual 2003 Projected 2004 Actual 2003 Projected 2004 Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executives WorldatWork Salary Budget Survey 13

17 Survey Highlights U.S. FIGURE 11: 10-YEAR PERSPECTIVE SALARY AND STRUCTURE S Projected Nonexempt Hourly Nonunion % 2.5% 2.6% 2.6% 2.8% 3.0% 2.3% 2.0% 2.2% Salary Structure Nonexempt Salaried 2.4% 2.3% 2.8% 2.5% 2.7% 2.7% 2.8% 3.1% 2.4% 2.3% 2.4% Exempt Salaried 2.5% 2.4% 2.9% 2.7% 2.9% 2.9% 3.0% 3.2% 2.5% 2.1% 2.4% Officers/Executives 2.5% 2.4% 3.0% 2.6% 2.7% 2.7% 2.9% 3.0% 2.4% 2.2% 2.3% 2004 projected Nonexempt Hourly Nonunion % 4.1% 4.1% 4.1% 4.3% 4.3% 3.7% 3.5% 3.6% Nonexempt Salaried 4.0% 3.9% 4.0% 4.1% 4.2% 4.2% 4.4% 4.4% 3.7% 3.4% 3.6% Salary Budget Exempt Salaried 4.0% 4.0% 4.1% 4.3% 4.5% 4.4% 4.6% 4.6% 3.9% 3.6% 3.7% Officers/Executives 4.1% 4.1% 4.3% 4.5% 4.6% 4.5% 4.8% 4.7% 4.0% 3.6% 3.8% Consumer Price Index (CPI) 2.4% 3.1% 2.9% 2.5% 1.4% 2.3% 3.1% 3.3% 1.6% 2.2% - CPI Note: Figure 11 table and corresponding graph shows the relationship between salary budget increases, salary structure increases and the CPI for each employment category in the period 1992 to Historically, salary budget increases are greater than structure increases by 1.1% to 1.9% and the CPI floats around the structure increase. Increases to both salary budgets and salary structures have been on the decline since 2001 but are projected to increase slightly in (CPI as reported by U.S. Bureau of Labor Statistics, 14 WorldatWork Salary Budget Survey

18 Promotional Increases While still not a common practice, an increasing percentage of organizations are setting up separate budget pools for promotions. (See Figure 12) Twenty-nine percent of organizations report promotional increases as a separate budget item, an increase of 8 percent over Survey Highlights U.S. FIGURE 12: PROMOTIONAL BUDGETS Percent of organizations with a separate promotional increase budget 19% 21% 29% Percent without a separate promotional increase budget 81% 79% 71% Respondents reported that 8.4 percent of employees received a promotional increase in 2002, lower than the number of internal promotions as in 2000 and 2001 (9.4 percent and 10.4 percent respectively in the United States). (See Figure 13.) The median budgeted percent of total base salaries was 1 percent in 2002, with 0.5 percent and 1 percent being the most common responses reported. The average salary increase for a promotion (as a percent of promoted employee s prior base salary) went down for the first time in the survey, by 0.4 percent, to 7.3 percent in It should be noted that for the survey, WorldatWork changed several of the questions regarding promotional increases to improve both the quality and usability of information. Instead of asking participants in April to, in effect, estimate their promotional data through the end of the year (as Salary Budget Survey questions in previous years did), the new questions asked participants to provide actual data for the prior year. Because of this change in methodology, caution should be used when comparing this year s 2002 data to figures from previous years. FIGURE 13: PROMOTIONAL S * Percentage of Employees Receiving Promotional Increases 9.3% 7.0% 7.0% 9.0% 9.4% 10.4% 8.4% Budgeted Percent of Total Base Salaries 0.8% 1.0% 1.0% 0.9% 0.9% 1.0% 2.5% (a) 1.0% (b) Percentage of Promoted Employee s Base Salary % 7.7% 7.3% (a) Mean (b) Median * The survey asked participants to provide 2002 actual data in retrospect, instead of forward-looking estimates for end-of-year data at the time of survey administration in April, as was the case in previous years. This change should provide more accurate and reliable data going forward. WorldatWork Salary Budget Survey 15

19 Survey Survey Highlights Highlights U.S. U.S. Variable Pay, Incentives and Bonuses Variable pay is the amount established by management as a nondiscretionary percentage of payroll to be granted for performance-based, lump-sum cash rewards during the year. Included in this calculation are individual incentive awards, special recognition awards, unit/strategic business unit (SBU) awards and organization-wide awards. The use of variable pay, incentives and bonuses continues to grow. In 2003, 75 percent of organizations are using at least one form of variable pay, including cash incentives and/or bonuses, a 7-percent increase over (See Figure 14.) FIGURE 14: USE OF VARIABLE PAY Percent of organizations using variable pay 66% 68% 75% Percent not using variable pay 34% 32% 25% Of those organizations that use variable pay, more than half provide individual incentive or recognition awards and/or organization-wide plans. Figure 15 shows the relatively even distribution of programs used by the participating organizations. FIGURE 15: TYPES OF VARIABLE PAY PROGRAMS Organization-wide Awards 54% Individual Incentive Awards 54% Special Individual Recognition Awards 53% Unit/SBU Awards 40% 16 WorldatWork Salary Budget Survey

20 In 2002, more than three-quarters of participating organizations employees were eligible for variable pay, ranging from 79 percent of exempt salaried employees to 95 percent of officers and executives. Of the eligible employees, officers and executives were most likely to actually receive a variable pay award, with 82.4 percent of employees in this category receiving variable pay in The percentage of variable pay estimated to be actually awarded in 2003 falls below budgeted targets, with the exception of the nonexempt salaried group (which may come in only slightly higher than budgeted, by 0.2 percent). Projections for variable pay in 2004 are lower for all employee groups in comparison to 2002 projections for Projected 2004 budgets range from 5 percent for nonexempt hourly nonunion employees, to officers and executives at more than 32 percent. Nonexempt salaried employees may see an additional 1 percent target in (See Figure 16.) Survey Highlights U.S. FIGURE 16: VARIABLE PAY PROGRAMS National U.S. Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executive budgeted incentive (as a percentage of base pay) actual paid incentive (as a percentage of base pay) Percent of employees eligible in 2002 for variable pay Percent of employees actually paid variable pay for budgeted incentive target awarded incentive (estimate) budgeted incentive target WorldatWork Salary Budget Survey 17

21 Survey Highlights U.S. Regional comparisons of variable pay show only slight differences by region, with a few as much as 1 percent different. (See Figure 17.) FIGURE 17: VARIABLE PAY PROGRAMS BY REGION Central Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executive budgeted incentive (as a percentage of base pay) actual paid incentive (as a percentage of base pay) Percent of employees eligible in 2002 for variable pay Percent of employees actually paid variable pay for budgeted incentive target awarded incentive (estimate) budgeted incentive target Eastern Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executive budgeted incentive (as a percentage of base pay) actual paid incentive (as a percentage of base pay) Percent of employees eligible in 2002 for variable pay Percent of employees actually paid variable pay for budgeted incentive target awarded incentive (estimate) budgeted incentive target WorldatWork Salary Budget Survey

22 FIGURE 17: VARIABLE PAY PROGRAMS BY REGION (Continued) Southern Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executive budgeted incentive (as a percentage of base pay) Survey Highlights U.S actual paid incentive (as a percentage of base pay) Percent of employees eligible in 2002 for variable pay Percent of employees actually paid variable pay for budgeted incentive target awarded incentive (estimate) budgeted incentive target Western Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officers/ Executive budgeted incentive (as a percentage of base pay) actual paid incentive (as a percentage of base pay) Percent of employees eligible in 2002 for variable pay Percent of employees actually paid variable pay for budgeted incentive target awarded incentive (estimate) budgeted incentive target WorldatWork Salary Budget Survey 19

23 Survey Highlights U.S. Stock/Equity-Based Compensation Programs Stock-based incentive programs continue to be popular in the United States, with 70 percent of organizations with stock reporting that they use stock in compensation. Stock options were by far the most popular stock-based program, followed by restricted stock. Generally, a higher percentage of executives and officers participate in stock option programs compared to other employees. While more than eight in 10 (84 percent) organizations with either actual stock or stock-like vehicles report offering stock options to executives, options are also offered to managers in 63 percent of organizations, and to hourly workers in 15 percent of companies. (See Figure 18.) FIGURE 18: TYPES OF STOCK-BASED INCENTIVE PROGRAMS OFFERED BY EMPLOYEE CATEGORY (All public and private companies offering stock-based incentive programs, n=1,086) Stock Option Program Stock Grant Program Phantom Stock/SAR Restricted Stock Performance Shares Nonexempt Hourly Nonunion 15% 2% 0% 2% 1% Nonexempt Salaried 14% 2% 1% 1% 1% Exempt Salaried 63% 9% 4% 12% 5% Officers/ Executive 84% 17% 9% 37% 17% Seventy-four percent of self-reported publicly traded companies have stock-based incentive programs for variable compensation purposes in It should be noted that the survey made a slight change to focus only on stock used for variable compensation purposes and eliminated questions about stock used in benefits and for other purposes (e.g. company stock in offered through a 401[k] defined contribution plan). (See Figure 19.) FIGURE 19: PUBLIC COMPANIES: TYPES OF STOCK-BASED INCENTIVE PROGRAMS OFFERED BY EMPLOYEE CATEGORY (Public companies offering stock-based incentive programs, n=950) Stock Option Program Stock Grant Program Phantom Stock/SAR Restricted Stock Performance Shares Nonexempt Hourly Nonunion 15% 2% 0% 2% 1% Nonexempt Salaried 14% 2% 1% 1% 1% Exempt Salaried 66% 10% 2% 13% 5% Officers/ Executive 87% 17% 6% 40% 18% 20 WorldatWork Salary Budget Survey

24 FIGURE 20: PRIVATE COMPANIES: TYPES OF STOCK-BASED INCENTIVE PROGRAMS OFFERED BY EMPLOYEE CATEGORY (Public companies with stock or stock-like vehicles offering stock-based incentive programs, n=136) Stock Option Program Stock Grant Program Phantom Stock/SAR Restricted Stock Performance Shares Survey Highlights U.S. Nonexempt Hourly Nonunion 18% 1% 1% 1% 2% Nonexempt Salaried 10% 1% 3% 0% 1% Exempt Salaried 49% 7% 18% 4% 5% Officers/ Executive 63% 16% 26% 15% 13% Attraction and Retention Practices Despite higher unemployment rates and a generally softer labor market, attraction and retention of employees continues to be a top concern for many organizations in More than 90 percent of organizations are using some form of incentive to attract and retain employees. Referral bonuses and sign-on bonuses top the list of methods used to attract and retain employees (63 percent and 62 percent, respectively) and more than half of respondents (53 percent) report using market adjustments as a retention tool. Stock grant programs, large merit budgets and paid sabbaticals are the least used programs for attraction and retention, all used by less than 10 percent of responding organizations. (See Figure 21.) FIGURE 21: PROGRAMS USED IN THE PAST 12 TO ATTRACT AND RETAIN EMPLOYEES (Note: This question allowed a check all that apply response.) Employee referral bonus 63% Sign-on/hiring bonus 62% Market adjustments/increase to base salary 53% Spot bonus (individual) 40% Stock option program 29% Retention/stay bonus 27% Paying above market 24% Special cash bonus/group incentives (not organization wide) 18% Exempt overtime pay or time off 14% Project milestone/completion bonus 14% Separate salary structures 14% Stock grant programs 7% Larger merit increase budgets 6% Paid sabbaticals 3% Global Comparison: Salary Increases vs. Rates of Inflation For the purposes of global comparison, data from Executive Resources Limited (ERL) is provided in Figure 22 on page 22 for 62 countries around the world. Increases are shown in four categories: Executive, Management, Professional and Employee. The WorldatWork Salary Budget Survey does not collect information about salary budget increases in countries other than the United States and Canada. WorldatWork Salary Budget Survey 21

25 Survey Highlights U.S. FIGURE 22: INTERNATIONAL REMUNERATION SALARY PROJECTIONS (Increase amounts include merit and inflation.) (footnote 1) Average Increase Inflation (2nd Quarter) Inflation Projected Executive Management Professional Employee EUROPE Austria Belgium Cyprus Czech. Republic Denmark Finland France Germany Greece Hungary Irish Republic Italy Luxembourg Netherlands Norway Poland Portugal Russia Slovak Republic Spain Sweden Switzerland United Kingdom ASIA PACIFIC Australia Bangladesh China Hong Kong 2.0 (2.1) (2.0) India Indonesia Japan 2.0 (0.6) (0.5) Korea (South) Malaysia (pen.) New Zealand Pakistan Philippines WorldatWork Salary Budget Survey

26 FIGURE 22: INTERNATIONAL REMUNERATION SALARY PROJECTIONS (Continued) Average Increase Inflation (2nd Quarter) Inflation Projected Executive Management Professional Employee Singapore 2.5 (0.8) Sri Lanka Taiwan 2.0 (0.2) Thailand Vietnam AFRICA/MIDDLE EAST Bahrain Egypt Israel Kenya 2.0 (3.9) (2.4) Nigeria Saudi Arabia 2.5 (0.9) South Africa Turkey UAE Zimbabwe LATIN AMERICA Argentina Brazil Chile Colombia Costa Rica Ecuador Guatemala Mexico Panama Peru Puerto Rico Venezuela Survey Highlights U.S. Notes: 1 Survey data is effective Second Quarter Merit salary survey data for 2003 and 2004 was obtained from over 4,000 ERL clients and general survey participants. 3 In higher inflation countries, increases may be given more frequently than annual. 4 Inflation data provided by The World Bank, IMF, and the London School of Economics, Barclays Bank and the Economist Intelligence Unit. Information courtesy of Executive Resources Limited, International Remuneration Practice, May WorldatWork Salary Budget Survey 23

27 24 WorldatWork Salary Budget Survey

28 GENERAL / NONEXEMPT HOURLY NONUNION EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S National Data U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs Educational Services Finance & Insurance Credit Intermediation & Related Act Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg Computer & Electronic Product Mfg Electrical Equip., Appliance & Component Mfg Food, Beverage & Tobacco Product Mfg Machinery Mfg Metal Mfg Paper Mfg., Printing & Related Act Plastics & Rubber Products Mfg Textile, Apparel, Leather & Allied Product Mfg Transportation Equipment Mfg Other Misc. Mfg * * Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 25

29 National Data U.S. GENERAL / NONEXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 26 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

30 GENERAL / EXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S National Data U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs Educational Services Finance & Insurance Credit Intermediation & Related Act Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg Computer & Electronic Product Mfg Electrical Equip., Appliance & Component Mfg Food, Beverage & Tobacco Product Mfg Machinery Mfg Metal Mfg Paper Mfg., Printing & Related Act Plastics & Rubber Products Mfg Textile, Apparel, Leather & Allied Product Mfg Transportation Equipment Mfg Other Misc. Mfg Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 27

31 National Data U.S. GENERAL / OFFICER/EXECUTIVE LEVEL 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * Fewer than five survey respondents ** Total line reflects all data submitted No Data + Due to small sample size and variablilty, data not reported 28 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

32 Nonexempt Hourly Nonunion SALARY STRUCTURE ADJUSTMENTS 2003 Actual Increases Nonexempt Salaried Exempt Salaried Officer/ Executive 2004 Projected Increases Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officer/ Executive National Data U.S. % n % n % n % n % n % n % n % n * * * * * * INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted WorldatWork Salary Budget Survey 29

33 Central Region U.S. GENERAL / NONEXEMPT HOURLY NONUNION EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 30 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

34 GENERAL / NONEXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S Central Region U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 31

35 Central Region U.S. GENERAL / EXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * Fewer than five survey respondents ** Total line reflects all data submitted No Data + Due to small sample size and variablilty, data not reported 32 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

36 GENERAL / OFFICER/EXECUTIVE LEVEL 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S Central Region U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY * * * * * * * * * * Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 33

37 Central Region U.S. Nonexempt Hourly Nonunion SALARY STRUCTURE ADJUSTMENTS 2003 Actual Increases Nonexempt Salaried Exempt Salaried Officer/ Executive 2004 Projected Increases Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officer/ Executive % n % n % n % n % n % n % n % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 34 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

38 GENERAL / NONEXEMPT HOURLY NONUNION EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S Eastern Region U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 35

39 Eastern Region U.S. GENERAL / NONEXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 36 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

40 GENERAL / EXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S Eastern Region U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs Educational Services Finance & Insurance Credit Intermediation & Related Act Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg Computer & Electronic Product Mfg Electrical Equip., Appliance & Component Mfg Food, Beverage & Tobacco Product Mfg Machinery Mfg Metal Mfg Paper Mfg., Printing & Related Act Plastics & Rubber Products Mfg Textile, Apparel, Leather & Allied Product Mfg Transportation Equipment Mfg Other Misc. Mfg Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 37

41 Eastern Region U.S. GENERAL / OFFICER/EXECUTIVE LEVEL 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * Fewer than five survey respondents ** Total line reflects all data submitted No Data 38 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

42 Nonexempt Hourly Nonunion SALARY STRUCTURE ADJUSTMENTS 2003 Actual Increases Nonexempt Salaried Exempt Salaried Officer/ Executive 2004 Projected Increases Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officer/ Executive Eastern Region U.S. % n % n % n % n % n % n % n % n * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 39

43 Southern Region U.S. GENERAL / NONEXEMPT HOURLY NONUNION EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 % n % n % n % n Mo. n % n GENERAL / S % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * Fewer than five survey respondents ** Total line reflects all data submitted No Data 40 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

44 GENERAL / NONEXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 % n % n % n % n Mo. n % n GENERAL / S % n % n % n % n Mo. n Southern Region U.S. INDUSTRY * * * * * * * * * * * * * * * * * * * * Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 41

45 Southern Region U.S. GENERAL / EXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 % n % n % n % n Mo. n % n GENERAL / S % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 42 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

46 GENERAL / OFFICER/EXECUTIVE LEVEL 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 % n % n % n % n Mo. n % n GENERAL / S % n % n % n % n Mo. n Southern Region U.S. INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 43

47 Southern Region U.S. Nonexempt Hourly Nonunion SALARY STRUCTURE ADJUSTMENTS 2003 Actual Increases Nonexempt Salaried Exempt Salaried Officer/ Executive % n % n % n % n 2004 Projected Increases Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officer/ Executive % n % n % n % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 44 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

48 GENERAL / NONEXEMPT HOURLY NONUNION EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S Western Region U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY * * * * * * * * * * Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 45

49 Western Region U.S. GENERAL / NONEXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * Fewer than five survey respondents ** Total line reflects all data submitted No Data 46 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

50 GENERAL / EXEMPT SALARIED EMPLOYEES 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S Western Region U.S. % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs Educational Services Finance & Insurance Credit Intermediation & Related Act Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg Computer & Electronic Product Mfg Electrical Equip., Appliance & Component Mfg Food, Beverage & Tobacco Product Mfg Machinery Mfg Metal Mfg Paper Mfg., Printing & Related Act Plastics & Rubber Products Mfg Textile, Apparel, Leather & Allied Product Mfg Transportation Equipment Mfg Other Misc. Mfg Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 47

51 Western Region U.S. GENERAL / OFFICER/EXECUTIVE LEVEL 2003 Actual Increases 2004 Projected Increases S % OF EE RECEIVING IN 2003 GENERAL / S % n % n % n % n Mo. n % n % n % n % n % n Mo. n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 48 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

52 Nonexempt Hourly Nonunion SALARY STRUCTURE ADJUSTMENTS 2003 Actual Increases Nonexempt Salaried Exempt Salaried Officer/ Executive 2004 Projected Increases Nonexempt Hourly Nonunion Nonexempt Salaried Exempt Salaried Officer/ Executive Western Region U.S. % n % n % n % n % n % n % n % n * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 49

53 National Data U.S. BUDGETED PROMOTIONAL S FOR 2002 National (U.S.) As a Percentage of Total Base Salaries Eastern Region Central Region Southern Region Western Region Mean % Median % n Mean % Median % n Mean % Median % n Mean % Median % n Mean % Median % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 50 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

54 BUDGETED PROMOTIONAL S FOR 2002 National (U.S.) As a Percentage of Total Employee Population Eastern Region Central Region Southern Region Western Region National Data U.S. Mean % Median % n Mean % Median % n Mean % Median % n Mean % Median % n Mean % Median % n * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 51

55 National Data U.S. BUDGETED PROMOTIONAL S FOR 2002 As a Percentage of Promoted Employees Base Salary National (U.S.) Eastern Region Central Region Southern Region Western Region Mean % Median % n Mean % Median % n Mean % Median % n Mean % Median % n Mean % Median % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 52 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

56 VARIABLE PAY NONEXEMPT HOURLY NONUNION Budgeted Incentive (as a percentage of base pay) 2002 Actual Paid Incentive (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) Award Estimate (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) National Data U.S. % n % n % n % n % n * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 53

57 National Data U.S. Budgeted Incentive (as a percentage of base pay) VARIABLE PAY NONEXEMPT SALARIED 2002 Actual Paid Incentive (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) Award Estimate (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) % n % n % n % n % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Fewer than five survey respondents ** Total line reflects all data submitted No Data 54 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

58 Budgeted Incentive (as a percentage of base pay) VARIABLE PAY EXEMPT SALARIED 2002 Actual Paid Incentive (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) Award Estimate (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) National Data U.S. % n % n % n % n % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total Key: Mining = Industry Group Metal Mfg = Industry Subgroup * Fewer than five survey respondents ** Total line reflects all data submitted No Data WorldatWork Salary Budget Survey 55

59 National Data U.S. Budgeted Incentive (as a percentage of base pay) VARIABLE PAY OFFICER / EXECUTIVE 2002 Actual Paid Incentive (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) Award Estimate (as a percentage of base pay) Budgeted Incentive Target (as a percentage of base pay) % n % n % n % n % n INDUSTRY Accommodation & Food Services Administrative Support & Waste Mgmt. Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation Construction Consulting, Prof., Scientific & Tech. Svcs. Educational Services Finance & Insurance Credit Intermediation & Related Act. Funds, Trusts & Other Financial Vehicles Insurance Carriers & Related Act. Securities, Commodities & Other Investments Health Care & Social Assistance Hospitals Nursing, Ambulatory & Residential Care Information Internet Industries Publishing Industries Motion Picture, Sound Recording, Broadcasting Mgmt of Companies & Enterprises Chemical Mfg. Computer & Electronic Product Mfg. Electrical Equip., Appliance & Component Mfg. Food, Beverage & Tobacco Product Mfg. Machinery Mfg. Metal Mfg. Paper Mfg., Printing & Related Act. Plastics & Rubber Products Mfg. Textile, Apparel, Leather & Allied Product Mfg. Transportation Equipment Mfg. Other Misc. Mfg. Mining Public Administration Real Estate, Rental & Leasing Retail Trade Telecommunications Transportation Air Transportation All Other Transportation Utilities Wholesale Trade Other Services (except Public Admin.) Religious, Grantmaking, Civic, Prof. & Similar Org. Total * Fewer than five survey respondents ** Total line reflects all data submitted No Data 56 WorldatWork Salary Budget Survey Key: Mining = Industry Group Metal Mfg = Industry Subgroup

60 Executive Summary of Trends Canada The Salary Budget Survey reports data for more than 625,000 Canadian employees from the 280 organizations participating in the survey. Collected in April 2003, this data represents a broad range of industries across all provinces of Canada RESPONSES BY CANADIAN REGION Ontario 213 Alberta 135 British Columbia 125 Quebec 116 Manitoba 80 Saskatchewan 74 New Brunswick 63 New Foundland 49 Prince Edward Island 34 Northwest Territories 12 Yukon 10 Nunavut 8 Nova Scotia 73 Note: The combined responses above add up to greater than the total response from Canada because some participants answered for multiple regions or nationally, and thus, they are counted in multiple regions. WorldatWork Salary Budget Survey 57