Survey of Mid-Atlantic Technology Companies Reveals Salaries, Incentives, and Total Cash Compensation for Key Positions
McLean, VA – December 10, 2008 – The findings of the KnowledgeBank 2008-2009 Total Compensation Survey of Mid-Atlantic Technology Companies are now available. This unique survey, conducted annually for the past 18 years, provides a comprehensive summary and analysis of total compensation, benefits and human capital practices data for primarily small to medium sized technology companies throughout the Mid-Atlantic region.
The survey collected data from 143 firms with total employment of 72,811 and incumbent pay data for 13,878 employees. The survey respondent median revenue was $5.7 million and the median staff size was 24 employees. Nearly three-fourths of responding companies had annual revenue less than $20 million.
"The data provided in this survey is immensely valuable for small technology companies," said Don Britton, founder and CEO of Network Alliance, which provides outsourced IT services to small companies. "I am currently recruiting for critical positions, and the jobs surveyed gave me the insight I needed to the competitive salary landscape."
Salary Budgets
In 2008, the average actual salary adjustments were 4.2%, slightly less than last year’s 4.3% actual average. For 2009, survey participants projected an average salary adjustment rate of 4.5%. In response to the dramatic changes in market conditions over the last three months, KnowledgeBank will be resurveying participants in early 2009 to determine any changes in actual salary adjustment budgets.
Salary Data for Key Positions
The summary report provides data on base salary, cash incentive, and total cash compensation for 30 key positions typically found in technology companies, ranging from the CEO to software developer, network engineer and customer service specialist. The salary and total compensation data is provided for companies with revenue of less than $10 million, companies with revenue between $10 and $49 million, companies with revenue greater than $50 million, and in total.
Compensation, Incentive and Human Resources Practices
In 2008, 78% of executives received cash incentives, 52% stock options and 18% restricted stock. In addition, 31% of all companies in the survey provided stock options to all employees. The survey findings also revealed that responding companies embrace flexible human resource practices in a challenging marketplace to recruit and retain staff: 84% provide for variable work schedules, 64% encourage telecommuting, 60% provide special recognition awards, and 59% pay new hire bonuses for referrals.
Benefits and Flexible HR Policies
Although almost 90% of the survey participants provide health care coverage for employees and/or families, cost sharing between employer and employee continues to increase. In addition, employers are continuing to adopt, albeit slowly, alternative consumer-driven healthcare options that include health savings accounts (HSAs) and health reimbursement accounts (HRAs).
Other common benefits provided to 70% or more of full-time employees include group term life insurance, vision care, 401(k) retirement savings plans, prescription drug coverage and dental care. Tuition reimbursement plans were available in 44% of the firms and 16% also provided profit sharing.
KnowledgeBank collected data for the survey in September and October 2008. The survey was co-sponsored as a member service by regional technology councils and other membership-based organizations that serve the technology sector throughout the Mid-Atlantic region. A copy of the summary report is available for purchase to non-participants at www.knowledgebank.us.com.
Included in the report is an article written by Mark Frantz, General Partner with RedShift Ventures, an Arlington, VA based early stage venture capital firm, who discusses the outlook for the Mid-Atlantic technology sector in 2009.
About KnowledgeBank
KnowledgeBank, Inc. of McLean, VA is an award winning provider of human capital management, organizational effectiveness, outsourcing and consulting services to the commercial, nonprofit and government sectors. The company provides services in every vertical within the human capital spectrum including compensation and benefits, organization assessment and development, strategic planning, change management, performance management, employee engagement and retention, workforce planning, leadership development and coaching, training, compliance, HR management outsourcing and interim HR leadership. KB was selected by Inc. magazine to its list of fastest growing companies in America in 2007 and 2008, and has been recognized by Washington SmartCEO Magazine as one of the fastest growing companies in the Greater Washington region for the past two years.