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EFFECTIVE NEW HIRE ORIENTATION

New Hires

An employee’s experience during their first few days will affect the rest of their tenure.  It is critical, to begin with an effective, positive, and fun new hire orientation for the future success of your new employees.  Even before the employee’s hire date, you can make a positive impact with a call to the employee two or three days before their start date, welcoming them, letting them know what time to arrive, and what they can expect during their first day and first week on the job.  Studies show that a well-planned orientation can contribute to the length of employment, better work attitudes, more effective communication, and fewer mistakes.  Your new hire orientation is your chance to set a positive tone for a long-lasting and mutually beneficial relationship.

A new hire’s early experience is highly influenced by his peers, managers, subordinates, HR team members, and the organization’s top management.  Ensure that new hires are welcomed by their team members.  Plan a welcome breakfast meet and greet for their first morning on the job.  The new hire’s immediate supervisor should schedule daily meetings with the new employee at least for the first week, then at least weekly for the first month or two.  Schedule informational meetings with key people in the department and in other departments to provide the new hire with the general knowledge that they will need to perform their job.  Include an office tour in the orientation process that includes introductions.  Be sure to include introductions to top Executives, Human Resource personnel as well as receptionists, administrative assistants, and copy/mail room attendants.

An effective orientation program will put emphasis on the new employee, their individuality and what they have to offer rather than focusing solely on the company’s culture and how the new employee can fit in.  You are probably hiring in part to get new ideas into the organization.  Make sure to capitalize on that.  Make your orientation meetings fun and be sure to provide a meal or at least snacks.  Keep it interesting and not too long.  Too much information will be boring and will not be retained.  Orientation should reflect culture through interactive activities.  One way to make it memorable is to present the company’s goals, mission, and values in an activity form rather than simply providing the information.  Allow the new hires to get to know each other on a personal basis, not just professional – go around the room and have them tell one professional and one personal thing about themselves.  You can also turn this into a game by writing one thing about each person on a piece of paper.  In the end, state items one at a time, out of order, and have people guess who said what.

Promote communication with a team-building activity such as learning the employee handbook through a scavenger hunt.  For example, divide the orientation group into teams and see which team can answer the most handbook questions in a set amount of time.  Cover company ethics to let them know what is expected, and also include ‘unwritten rules’.  Don’t end there!  After orientation, schedule follow-up meetings with each new hire to elicit their feedback and answer any follow-up questions they may have.

Don’t forget the basics.  Provide them with all the office supplies they will need to start their job, include contact information they will need.  And let them know how to get additional office supplies.  Teach them how to use the phone, how to forward calls, set up and change voice mail, and how to do a conference call.

Today, many companies are adding programs such as flex-time, telecommuting as well as accommodating and encouraging alternative work styles in an effort to provide a work environment where employees are happier and thriving.  Therefore don’t neglect or underestimate how impactful beginnings are, and provide your new hires with an orientation program that is effective and unique to your company and its culture.

Implementing the above suggestions will help your company to build a culture that encourages the retention of employees, which in turn will attract top talent.  In addition to providing a great work environment that respects employees and provides opportunities for learning and growth, it is also important that they receive a solid compensation and benefits package.  At WageWatch we offer accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

U.S. HOTEL INDUSTRY WAGE GROWTH OUTPACES NATION

With unemployment shrinking to 3.7%, as recently reported by the U.S. Bureau of Labor Statistics, the labor market is the tightest it has been in 50 years.

New job openings continue to exceed the numbers reported as unemployed, which puts finding and retaining talent front and center for the hotel industry as hotels compete for new employees with each other and with other industries such as healthcare, food service and retail.

The forecast by STR, parent company of Hotel News Now, of new hotel openings at or around 2% a year through 2019 means hotel room count will increase by an estimated 150,000 to 200,000 rooms by the end of next year.  In terms of housekeepers alone, this equates to another 10,000 to 13,500 new employees just to clean the rooms. Overall, the hotel industry has reached a new employment high every month since the end of the Great Recession and the recovery of the hotel industry beginning in 2010.

The tight labor market also has driven up wages across the country.  Salaries for jobs ranging from line positions at front desks and restaurants to GMs have increased well above the general wage increases experienced across the U.S.  Average annual wage increases in the hotel industry began to exceed 3% a year in 2014 and in 2018 surpassed 4%, compared to a national average wage increase of 1.9% in 2014 and 2.8% in 2018, according to data from the Bureau of Labor and Statistics and WageWatch.

Wages-U.S._Hotel

Even with wage increases in the hotel industry substantially higher than those in the private sector, human resources departments at hotel companies are finding it difficult to obtain and retain new employees.  Some of the issues that are repeatedly reported across the country include:

  • Difficulty hiring quality candidates who can pass a background check and a drug screening
  • New employees have a difficult time adhering to company attendance policies
  • High expectations by new employees of accommodations to be made by employers
  • A trend of applicants not showing up for job interviews
  • New millennial hires seem to be continually looking for their next gig

Looking ahead to 2019, wages in the hotel industry could see increases of 4% to 4.5% across the country, which could have a significant impact on bottom lines.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

 

 

Posted in Economy, Wage Forecast on December 19th, 2018 · Comments Off on U.S. HOTEL INDUSTRY WAGE GROWTH OUTPACES NATION

MINIMUM WAGE UPDATE – JULY 2018

The U.S. Federal minimum wage has not increased since July 2009, as such, many states, cities, or counties have decided to vote into law, their own increase in the minimum wage.  Some states have decided to gradually increase their minimum wage to $15.00/hour over the course of several years.  While the majority of increases occur at the beginning of the year, others wage increases begin mid-year, starting July 1.

An overview of the states, cities, or counties which have minimum wage increases beginning July 1, 2018 include:

  • California – Not statewide; increases in the following cities:
    • Emeryville
    • Los Angeles City
    • Los Angeles County, Unincorporated
    • Malibu
    • Milpitas
    • San Francisco
    • San Leandro
    • Santa Monica
  • Illinois – Not statewide, two local jurisdictions:
    • Chicago
    • Cook County
  • Maryland – Not statewide; one county:
    • Montgomery County
  • Minnesota – Not statewide:
    • City of Minneapolis
  • Oregon – State law change; varies by area: General, Urban, and Nonurban
  • Washington D.C.

For more detailed information click here:  MINIMUM WAGE CHART.  Review the tab for California to review specific city increases.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

SALARY STRUCTURES: WHAT ARE THEY GOOD FOR?

Established salary structures aren’t mandatory.  There is no law that requires them, but they serve many useful purposes.  Having salary ranges in place can ensure that salary decisions, from new hires to promotions, are made with objective and consistent rules and parameters.  They provide at least a first line of defense against salary discrimination, intentional or otherwise, by ensuring that employees performing the same job are granted the same salary opportunity.  And formal salary ranges provide you with a tool for proactively managing and budgeting your salary dollars.

Salary structures help ensure that pay levels for groups of jobs are competitive externally and equitable internally.  A well-designed salary structure allows management to reward performance and skills development and control overall base salary cost by providing a cap on the range paid.

A salary structure enables employers to pay employees in a given position, consistently, for the work they do.  Salary ranges also offer flexibility enabling a company to pay higher in the range for an employee based on a greater level of education, experience or performance.  In the same way, it can potentially save on labor costs when hiring employees with limited backgrounds.

Having well documented and communicated salary ranges can minimize employees’ pay equity concerns and grievances.

A well-designed salary structure will help organizations:

  • Attract and retain suitable, qualified, and experienced employees
  • Build high morale with internal equity
  • Create more satisfied employees and thus reduce turnover
  • Minimize favoritism and bias
  • Provide a structure for career progression
  • Serve as a sound basis for collective bargaining and employee relations management

If the salary structure gets out of sync with the overall labor market, a company may find itself paying employees too much and needlessly increasing operating costs, or paying employees too little and having difficulty attracting and retaining talent.

A study of the current labor market will provide new information to determine whether the organization’s pay structure, policies and practices, job classifications and job titles are appropriate or needing adjustment.

WageWatch offers accurate, up-to-date HR metrics, benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

PAY COMPRESSION: CAUSES AND SOLUTIONS

Pay compression is when either a subordinate’s base pay is very close to or more than their supervisor’s or when a less tenured employee is equal to or paid more than a senior employee in the same position.  One of the most common causes of pay compression is when pay increases for current employees are low, but new employees are paid a higher salary to attract them.  This problem becomes more severe in economic downturns when pay increases are limited but it occurs even in better economic times.  Pay compression is most evident in pay systems where lower level jobs, either through union contracts or other market forces, create a situation where first-line supervisors are paid less, on an hourly basis, than their subordinates.

When the job market is weak, many organizations hire people who had already done the same work for another organization, eliminating the need for training. Rather than hiring people with high potential and developing them for the long term, they have opted for people who can “hit the ground running,” regardless of their potential.

When salary compression and the policies that enable it are sustained over several years, it can be demoralizing and lead to widespread employee dissatisfaction. Employers should be concerned because salary compression can transform compensation from a motivator into a de-motivator.

Salary compression may be accompanied by pay inequities which could violate equal pay regulations. In situations where newer staff earn more than experienced staff, it could create a pay equity problem if the experienced staff are a protected class.

There are steps that can limit the detrimental effects of salary compression. For instance, when a new job opens, organizations should try to promote someone from within, rather than hiring from the outside. Many organizations have policies that limit how high within a range new hires can be paid.  When new hires are brought in at higher salaries or when across the board increases are given due to market movement or minimum wage increase, have a policy that requires internal equity analysis and adjustments.

Institute a policy of transparency and calibration across units.   Disparate actions between different organizational units can create salary compression and other inequities. Transparency can take the form of a simple scorecard showing the rates of increases and promotions in each unit. Calibration can involve managers sharing planned compensation actions with their peer managers. It can also include several levels of approval for any actions before they take place so that a senior leader can spot any actions that appear suspect and will cause inequities, including compression.  This tends to create a norm and, over time, leads to decisions that are more consistent and responsible.

Salary compression can be a serious problem that eventually causes an organization to lose some of its most talented employees. Although many organizations have unintentionally allowed salary compression to take root, there are actions they can take now and in the future to keep it from reoccurring.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

STRATEGIC ISSUES AND THE PAY MODEL

Perceptions of compensation vary.  It is seen as a measure of equity and justice.  Stockholders are focused on executive compensation.  Legislators may view average annual pay changes as a guide to adjusting eligibility for social services.  Employees see compensation as a reward for their services and a job well done.  Managers will view compensation from the perspective of a labor cost, but also from a competitive perspective that enables them to recruit, engage and retain employees.  The four basic compensation policy decisions that an employer must consider in managing compensation are: 1. Internal consistency, 2. External competitiveness, 3. Employee contributions, and 4. Administration of the pay system.  The balance between the four policies becomes the employer’s compensation strategy.

It is important that compensation is linked to an organization’s overall goals and strategies and aligned with Human Resource strategy.  Not doing so, can lead to serious issues of employee retention, engagement and productivity that can be laborious and expensive to repair.  Compensation for many organizations is the single largest business expense and is visible and important to employees, managers and stockholders.  Therefore it is important to strategically plan and regularly evaluate compensation systems.  Working with your company’s executives is key to ensuring your compensation philosophy is supporting business objectives.  Strategic objectives will include significant challenges and priorities now and over the next 2 – 5 years.  Some examples are business growth plans, key talent and training objectives, market competition, and whether or not you are in a union environment.  Some other key considerations for your compensation program are:

  • Attracting the appropriate skill sets and types of employees when needed
  • Rewarding employees for their efforts, such as increasing workloads, taking on new tasks and projects
  • Employee morale and perceived value of company’s benefits, incentives, and work environment
  • A mix of base pay, incentive pay, work environment and benefits that makes the most sense for the organization
  • The link between base and incentive pay with performance
  • Legal issues such as wage and hour

An example of a compensation strategy that aligns with other Human Resource initiatives is matching pay ranges to desired outcome.  If quality, experience and a sophisticated skill set are a strategic advantage to an organization, then it will not be successful hiring employees significantly below the market rate.  Determining whether the organization wants to lead, lag or match the market is a key decision.  A ‘mixed market position’ approach has become more common as employers realize that a one-size-fits-all strategy does not fit the entire workforce.  For example, location and market competitiveness will impact your pay levels and certain key or hard to fill or retain positions may require pay well above the market, while other positions may be ok with a lag approach.

A successful compensation program will focus on top priorities, guide employees to where their effort can create the most value, create financial and non-financial consequences for success and failure, drive and reward the development of skills and encourage teamwork and collaboration.  Many organizations today keep an eye toward aligning workers’ interests with company goals through innovative types of rewards in the workplace, including skill based pay and goal sharing.  The right total rewards system is a blend of monetary and nonmonetary rewards offered to employees and can generate valuable business results.  These results range from enhanced individual and organizational performance to improved job satisfaction, employee loyalty, and workforce morale.

Maintaining a competitive advantage and being able to retain key employees is increasingly important.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online .

 

Posted in Uncategorized on October 1st, 2015 · Comments Off on STRATEGIC ISSUES AND THE PAY MODEL

COMPENSATION PROGRAM KEY OBJECTIVES

Compensation can be defined as a reward earned by employees in return for their time, skills, effort and knowledge.  Compensation includes direct financial compensation, such as wages, bonus and commissions, indirect financial compensation such as health and welfare, retirement and leave benefits and non-financial compensation such as job training and development, recognition and advancement opportunities.  A large percentage of the company budget is compensation, and therefore is a key component of the overall strategic human resource management plan. 

A compensation package can include more than salary and bonus.  It can include health and welfare benefits, retirement plan, leave benefits and various other benefits and perks.  Companies that offer a mix of salary and incentives have the highest employee morale and productivity.  It is most effective to pay incentives as soon after goals are met as feasible such as month or quarter incentive payments, rather than annual.  A good incentive plan should be easily understood by the employees with no more than two to four performance factors.  How you train, develop and manage your employees will also drive retention and performance.

When developing your compensation program, primary objectives to consider are: 

  • To attract the best people for the job
  • Retain high performers and lower turnover
  • Reward performance on specific objectives by compensating desired behaviors
  • Motivate employees to perform their best
  • Improve morale, job satisfaction and company loyalty
  • Align with overall company strategy, goals and philosophy
  • Achieve internal and external equity
  • Comply with all pay and non-discrimination regulations

While compensation is not the only thing that motivates people, compensation that is too low will demotivate employees.  Studies have found a direct correlation between top performing companies and employees that are satisfied with their pay and benefits package.  Competitive and appropriate pay can positively impact customer service.  Employees receiving fair and competitive compensation packages are generally happier with their jobs and are more motivated to perform at their peak.  Motivated employees can add to the bottom line of the organization and contribute to growth and expansion. Studies show that motivated employees take fewer sick days and have fewer disability claims.

While there are many objectives to a successful compensation program, two key objectives are ensuring internal equity and ensuring external competitiveness.  Salary Surveys provide the necessary market data to build competitive pay structures.  Good Salary Survey data provides you with the information needed to ensure your compensation package is competitive.  Salary Surveys are an invaluable tool for the setting right compensation strategy and for following and monitoring the desired pay market.  It is important that you select the right salary and benefits surveys and market data for your employees based on where you are competing for talent in your industry and outside your industry as well as geographic location.

WageWatch offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on November 6th, 2014 · Comments Off on COMPENSATION PROGRAM KEY OBJECTIVES

Can Salary Motivate Employees?

Studies have shown that salary can just as easily de-motivate employees as motivate them.   In fact, salaries generally operate as negative reinforcement rather than positive.   For example, an employee receiving a lower than expected merit increase or bonus payment can certainly de-motivate.  On the flip side, receiving the status quo merit increase or bonus amount every year can create an entitlement mentality.  However, when it comes to motivating employees, salary is always one of the top factors, and therefore, it has to be part of your total rewards strategy.  Many believe that the amount of money that is needed is at least enough to satisfy basic needs which vary by person.  Obviously, when salary does not, at a minimum, cover essential needs, this serves to de-motivate.

In our blog Compensation: Beyond the Paycheck published 10/31/13, we discussed non-monetary rewards and benefits that aid in employee motivation.  In this article we will focus on monetary rewards. Motivated employees make a difference to the workplace.  They affect the working environment positively as well as improve customer service, sales or production.  So, how can you determine if the salaries you are paying are motivating your workforce?

First, determine where to focus your compensation spending plan.  This can vary depending on factors such as the current economy, the competitive environment, and where the company is in its life-cycle.  For example a growing company with variable sales and income, may be better off focusing on base salaries.  When business is good, it may be prudent to tie more bonus dollars to goals achieved.

Second, do your research, know your competition.  Every organization can benefit from reputable industry salary surveys such as the WageWatch PeerMark™ and Benchmark reports, to determine competitive salaries.  You should utilize salary survey data from the local market, your industry and from organizations of similar size.  Work within your organization’s salary philosophy and the given financial situation to determine where to set salaries.

In addition to looking externally to market competition, look internally to ensure your internal pay structure and salaries are fair and equitable.  Whether you like it or not, employees will discuss pay with one another.  Ensure fair and equitable pay levels between employees in the same jobs, in the same departments, and jobs of comparable worth within your organization. Formal salary ranges within the organization where people with similar responsibilities and authority are grouped into the same salary range help to maintain internal equity.   Set clear goals for what you want to achieve by setting salaries at certain levels.  For example, you may pay an entry level manager less than market if you are hiring inexperience and providing a training and growth opportunity in exchange.  Open and clear communication regarding the company’s salary structure and pay philosophy can aid in employees’ understanding of the methods used in determining their salary level and assist in demonstrating fairness and equity.

Merit pay is one of the most frequently used methods to drive employee performance.  To be effective it needs to be linked to performance in a manner that is consistent with the mission of the organization.  Merit increases can become de-motivating when your performance measurement system is flawed and/or inconsistently applied or when the merit increase amount that is linked to performance is inconsistently administered.  Also with merit increases typically averaging 2 to 3 percent, studies show that increases lower than 7% are unlikely to have any impact on employee performance.  What can help is applying behavioral principles to your pay for performance program such as giving employees a personal stake in the success of the company by showing a clear link between their efforts and results.  Many companies base their compensation plan on time and not results. Of course, time is a factor and needs to be part of the equation. However, if you pay for results, you will get results.

A well planned salary and total rewards package will motivate your employees, help your company maintain a competitive advantage and help retain key employees.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online .

Posted in Uncategorized on November 13th, 2013 · Comments Off on Can Salary Motivate Employees?

How to Avoid Antitrust Claims When Conducting Wage Surveys: Part 2

As stated in our previous post, we will now cover the proper steps to take in order to minimize risk when deciding to share wage and benefit information with a competitor. The safest course of action for human resource directors to follow is to not discuss wage and benefit information with competitors except in controlled and limited situations. The following is a summary of the steps that WageWatch recommends to minimize your risk if you intend to share data:

  • Employers should act unilaterally about setting wages and benefits.  There      should not be an agreement or understanding, written or oral, with respect      to fixing, maintaining or stabilizing wages and benefits.
  • The wage and benefit information should not be exchanged directly between employers.  This means no phone calls or round tables where      information is exchanged.
  • A third party should be utilized in order to make sure that no employer has      direct access to each other’s data. Participation in a WageWatch      compensation survey can be part of a defense against accusations of      antitrust violations. The WageWatch Hospitality Industry Competitive      Market Survey complies with all DOJ safe harbor guidelines.
  • The information that is disseminated by the third party should be      aggregated.  The ranges or averages of the wages and benefits cannot be disseminated if it can be related to a particular organization or a specific job.  This eliminates the once prevalent practice of tabulating the data for each employer in a spreadsheet format even if the name of the particular employer associated with that data was excluded.
  • Each aggregated wage or benefit statistic disseminated should be a composite of at least five different employers.
  • The disseminated statistics must be “historical”.  This means the older      the better.  The aggregated information disseminated to participants should not reflect current or prospective wages and benefits.  Current is defined as wages or benefits that having been in effect for less than three months.

While the above is an overview of steps to be taken when considering exchanging wage and benefit information between hotels, consultation with your legal counsel is recommended before participating in any exchange of wage and benefit information with competitors.

WageWatch provides expert services across multiple industries and geographic markets with cost-effective online compensation and salary surveys. We are an innovative organization that is always on the lookout for new ways to collect compensation and salary data for surveys and wage reports, allowing us to expand continuously into new industries and markets.

Please call us today at 480-237-6130 or contact us online to learn more about our services.

Posted in Uncategorized on July 22nd, 2013 · Comments Off on How to Avoid Antitrust Claims When Conducting Wage Surveys: Part 2

How to Avoid Antitrust Claims When Conducting Wage Surveys: Part 1

Hotel human resource professionals frequently participate in professional associations, industry groups and other organizations formed to facilitate information sharing and networking.  Few are aware that such activity, if it involves the sharing of cost-related information such as employee wages and benefits, could give rise to violations of antitrust law or be used as evidence of such violations.

There have been a number of antitrust cases brought by plaintiffs in different industries regarding the exchange of wage and benefit information between competitive employers. Probably the two most noted cases are United States v. Utah Society for Healthcare Human Resources Administration (1994) and Todd v. Exxon Corp. (2001). While these cases dealt with specific industries, most attorneys practicing in the area of labor relations and antitrust look to these cases for guidance regardless of the industry.

The Federal Trade Commission and the Department of Justice have issued a statement setting forth an antitrust “safety zone” for health care providers who participate in written surveys.   They will not be considered to be in violation of antitrust laws if the following conditions are satisfied:

– The survey is managed by a third party;

– The information provided by survey participants is based on data more than three months old; and

– There are at least five providers reporting data upon which a disseminated statistic is based, no individual provider’s data represents more than 25% on a weighted basis of that statistic and any information disseminated is sufficiently aggregated so that it does not allow recipients to identify the compensation paid by any particular provider.

This statement gives guidance specifically to the health care industry.  To date, there is not such a case that has been brought in the hotel industry. Although, with the recent surge of labor organization activity going on across the country, our industry should continue to be cautious with regard to how wage and benefit information is shared with competitors.

In our next post, we will discuss precautions to minimize risk if you intend to share wage and benefit information with a competitor.

As a company, it is important to utilize benefits survey data, compensation surveys and salary reports. Having this information at hand allows you to plan a budget, including competitive employee salaries and benefits, which will help you to hire and retain a happy, talented team.  WageWatch surveys over 5,000 hotels, resorts and casino properties in the United States and the Caribbean.  WageWatch’s proprietary survey process enables human resources professionals to access the most up-to-date and accurate wage and benefits data and prepare custom reports based on their needs and requirements. Additionally the WageWatch Compensation Consulting Team is available to assist you with all of your compensation needs such as pay structure design and implementation, market competitive analysis, internal equity audits to address employer concerns and add creditability to pay practices and much more. For more information, please contact WageWatch at 480-237-6130 or contact us online.

Posted in Uncategorized on July 18th, 2013 · Comments Off on How to Avoid Antitrust Claims When Conducting Wage Surveys: Part 1