Please take a few minutes to complete the 2018 Contractor's Compensation and Benefits Benchmarking Survey. Hard copies can be faxed to

Transcription

1 Please take a few minutes to complete the 2018 Contractor's Compensation and Benefits Benchmarking Survey. Hard copies can be faxed to The deadline is March 21st All information will be held in the strictest confidence and specifics regarding individual companies will not be disclosed. Please use annual 2017 data unless otherwise specified. 1. Contact Information: o Your Name o Your Job Title o Address o Company Name Page 1 of 46

2 2. Is this who the report should be delivered to? o Yes 3. If no, to whom should this report be delivered? o Name o Address o Phone Number: Company Background 4. What range best describes your company's annual sales? o Under $5 Million o $5-$9.9 Million o $10 - $25.9 Million o $26 - $50.9 Million o $51- $100 Million o More than $100 Million Page 2 of 46

3 5. What is the age of your company? o 1-5 Years Old o 6-10 Years Old o Years Old o Years Old o 30+ Years Old 6. Is your company a general contractor, specialty contractor, or both? o General Contractor o Specialty Contractor o Both 7. Is your company union or non-union? o Union n-union o Both Union and Non-Union Page 3 of 46

4 8. Which of the following best describes your company? o S Corp o C Corp o LLC Corporation o LLC Partnership o Other (please specify) 9. Is your company a family owned business (i.e. two or more family members in the business, or a company that has been passed down from generation to generation? o Yes 10. What is the total number of full-time equivalent employees at your company? o Less than 15 o o o o o More than 200 Page 4 of 46

5 11. What best describes your geographic coverage? Greater Cincinnati Indianapolis Northern Kentucky Tri-State Area Midwest National Page 5 of 46

6 12. What is your primary type(s) of construction? (check all that apply - include any portion that is 10% or higher of your business) Residential - construction of one- or two-family homes, but also may include multifamily units such as apartments and condos Commercial - construction of office buildings, shopping centers, malls, sports complexes, hotels, gas stations, convention centers, movie theaters, and restaurants Institutional - construction of schools, colleges, correctional facilities, and hospitals Civil - construction of sewage and water treatment plants, roads, bridges, dams, tunnels, railroad, mass transit, underground utility work, and land reclamation projects Other (please specify) 13. What is your gross margin/gross profit per full-time employee equivalent? (FTE = include part-time employees based on a 2,080 hours worked annually schedule) This dollar amount can be calculated with the following formula: Gross margin (or Gross profit) Full-Time Employee Equivalent 14. What is your gross revenue per field full-time employee equivalent? This dollar amount can be calculated with the following formula: Gross Revenue #Field FTE Employees Page 6 of 46

7 15. What is your gross revenue per non-field full-time employee equivalent? This dollar amount can be calculated with the following formula: Gross Revenue #Non-Field FTE Employees 16. What is your gross revenue per total full-time employee equivalent? This dollar amount can be calculated with the following formula: Gross Revenue #FTE Employees 17. What is your net income per total full-time employee equivalent? This dollar amount can be calculated with the following formula: Net Income Before Tax Driven Bonuses #FTE Employees 18. What is your gross revenue per full-time equivalent Accounting Department Staff (CFO, Controller, Accounts payable clerks, Accounts receivable clerks, payroll clerks, etc.) This dollar amount can be calculated with the following formula: Gross Revenue # Accounting FTE Employees Page 7 of 46

8 19. For calendar year 2017 did you: o Increased your employee levels o Decreased your employee levels o Kept your employee levels the same 20. Do you have an IT Manager on staff? o Yes 21. If yes, are they full-time or part-time? o Full-Time o Part-Time Page 8 of 46

9 22. Do you project your revenues from will: o Increase 10% or more o Increase 5-9.9% o Increase 1-4.9% o Remain the same o Decrease 1-4.9% o Decrease 5-9.9% o Decrease 10% or more 23. What do you see as the top challenges facing contractors in 2018? Attracting/retaining qualified personnel Healthcare costs Margin pressures due to competition Succession planning Language barriers, communications with foreign companies/employees Industry specific training - topics like safety and technology Willingness and/or ability to travel Willingness to do what it takes Reliability Regulation Other (please specify) Page 9 of 46

10 24. What do you see as the top two operational issues facing contractors in 2018? Cost of materials Labor Costs Health care costs Other insurance costs Regulatory oversight Finding/retaining skilled workers Growth of local economy Workplace Safety Technology Internal Control/Fraud BIM 25. What source(s) has your Company found most useful for recruiting and attracting personnel? Please rank in order of success by dragging and dropping the answer options below: Paper Advertisement Online Advertisement Professional Recruiter Employee Referrals Campus Recruiting Other (please specify) Page 10 of 46

11 Compensation Information - Please report compensation and bonus data on the job descriptions below. If more than one person holds a particular position, please provide the average compensation. 26. President/Chief Executive Officer (CEO) Plans and directs all aspects of an organization's policies, objectives, and initiatives. May require a bachelor's degree with at least 15 years of experience in the field. Relies on experience and judgment to plan and accomplish goals. May preside over board of directors. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 11 of 46

12 27. VP, Operations Plans and directs all aspects of a company's operational policies, objectives, and initiatives. Develops policies and procedures for operational processes in order to ensure optimization and compliance with established standards and regulations. May require a bachelor's degree and at least 15 years of experience in the field. Demonstrates expertise in a variety of the field's concepts, practices, and procedures. Performs a variety of tasks. Leads and directs the work of others. Typically reports to President, CEO, or Owner. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 12 of 46

13 28. Chief Financial Officer (CFO) Responsible for directing an organization's overall financial policies. Oversees all financial functions including accounting, budget, credit, insurance, tax, and treasury. May require a bachelor's degree and at least 10 years of direct experience in the field. Typically reports to CEO or COO. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 13 of 46

14 29. Controller Responsible for directing an organization's accounting functions. These functions include establishing and maintaining the organization's accounting principles, practices, and procedures. Prepares financial reports and presents findings and recommendations to top management. May require a bachelor's degree and at least 7 years of direct experience in the field. Typically reports to CFO or CEO. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 14 of 46

15 30. IT Manager Analyzes the technology requirements for the company and establishes any technology policies and goals. Installs, configures, and maintains the organization's network. Builds and maintains external and internal web presence. Performs system backups. Selects, installs, and supports software systems. Usually requires a bachelor's degree in a related area with at least 5 years of experience in the field. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 15 of 46

16 31. Project Manager Plans and designs engineering programs and assembles project staffs. Responsible for organizing highly complex activities for the development, implementation, and maintenance of engineering projects. Typically requires an advanced technical degree ad at least 8 years of related experience. Reports to top management. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 16 of 46

17 32. Sales/Marketing Manager Manages and directs a sales force to achieve sales and profit goals. Designs and recommends sales and marketing programs and sets short and long-term sales strategies. Develops strategic sales and marketing objectives, establishes sales territories and quotas, and evaluates sales performance. Manages and develops marketing programs and materials such as advertising, event support, and online promotions. Requires a bachelor's degree in business, marketing, or related area, and at least 7 years of experience in the field. Generally manages a group of sales and marketing professionals. Typically reports to top management. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount o Commission Amount Years in Position Page 17 of 46

18 33. HR Manager Designs, plans, and implements human resources programs, policies, and procedures. Requires a bachelor's degree in a related area and at least 7 years of experience in the field. Generally manages a group of human resources professionals. Relies on experience and judgment to plan and accomplish goals. Typically reports to top management. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 18 of 46

19 34. Estimator Forecasts project costs. Helps determine necessary resources for projects based on cost estimates. May require a bachelor's degree in a related field and 0-2 years of experience. Has knowledge of commonly used concepts, practices, and procedure within a particular field. Relies on instructions and pre-established guidelines to perform the functions of the job. Works under immediate supervision. Primary job functions typically do not require exercising independent judgment. Typically reports to a supervisor or manager. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 19 of 46

20 35. Superintendent Responsible for all phases of construction projects including staffing requirements, procurement of tools and materials, direction of supervisory personnel, resolution of complaints and grievances within workforce, and adherence to specifications and construction schedules. Assembles members of organization at the start of projects and prepares or reviews reports on progress, materials, and costs. May also direct workers concerned with major maintenance or reconditioning projects for existing installations. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 20 of 46

21 36. Cost Engineer Responsible for performing a variety of functions including estimating, cost control, budget preparations, forecasting, and cost reporting. Ensures an effective cost control function for ongoing projects and has the ability to interpret contract, manage financial risk, and perform estimating and forecasting. May also maintain current cost control database, and review proposed change orders with construction personnel, clients, and contractors. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 21 of 46

22 37. Foreman Responsible for providing leadership and guidance with scheduling, workforce planning, coordinating, supervising, assisting in cost control, and ensuring the safety, consistency, and application of all policies and procedures, proper apprentice training, and productivity of crews at the worksite who install/assemble components of industrial products and structures. A foreman is a key participant in the relationship with the contractor, other contractors, company, and client. The foreman is generally the second management level and has a further role as a coordinating manager and client interface. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 22 of 46

23 38. Accounting Clerks Responsible for maintaining records in the area of accounts receivable, payables, payroll, or other similar functions. Typically reports to the Controller or CFO. Does not require a bachelor's degree. Shareholder? o Yes Compensation Information: o Base Salary o Bonus Amount Years in Position Page 23 of 46

24 39. Does your company pay bonuses to the following positions? If so, are they objective or subjective? Yes No Objective Subjective Upper Management o o o o Administrative o o o o Management o o o o Field Workers o o o o Project Manager/Estimator o o o o 40. How is bonus calculated? Discretionary % of sales Personal goal achievement Company goal achievement % of gross profit % of net profit Other (please specify) Page 24 of 46

25 41. Are different methods used to calculate bonuses at different levels? o Yes 42. On average, what was the range of pay increases in 2017, and what do you anticipate for 2018? From To Page 25 of 46

26 Benefits 43. What benefits does your company provide? Healthcare Insurance Coverage Holiday Bonus/Gift Investment Advisory Services Personal Financial Planning Stock Ownership Opportunities Professional Development/Education Group Life Insurance 401(k) Profit Sharing (separate from or in addition to 401(k) match) Educational Reimbursement Dental Vision Dependent/Childcare Long-Term Care Insurance Cafeteria Plan (Section 125 Plan)/FSA Pension Plan Disability Insurance Voluntary Programs Wellness Program Page 26 of 46

27 44. If your company provides a 401(k) plan, how does the company match work? o Minimum Percentage: o Maximum Percentage: o Minimum Dollar Amount: o Maximum Dollar Amount: 45. Does your 401(k) program allow for discretionary profit sharing? o Yes 46. Did the company make a profit-sharing contribution during the last plan year? o Yes 47. What additional options does your 401(k) plan offer? Roth Provisions Safe Harbor Plan Allowance for loans Page 27 of 46

28 48. How many health plans do you offer? o One o Two o Three o Four or more 49. Please describe your health insurance plan costs in 2017: (If more than 1 plan offered, choose the least expensive option) Gross premium per month Flat amount employees pay if not a percentage per month Percentage of premium paid by employee Single Employee + Spouse Employee + Children Family Page 28 of 46

29 50. Please describe your health insurance plan costs in 2018: (If more than 1 plan offered, choose the least expensive option) Gross premium per month Flat amount employees pay if not a percentage per month Percentage of premium paid by employee Single Employee + Spouse Employee + Children Family Page 29 of 46

30 51. How much has your gross premium for Health Insurance changed? % Increase % Decrease What changes were made to reach the final change in premium? If you provide a health insurance plan for your employees, how do you fund it? o Fully Insured o Partially self-insured with stop loss protection for excessive claims o Other (please specify) 53. What types of health plans do you offer? Traditional Preferred Provider Organization (PPO) Health Reimbursement Account (HRA) Health Savings Account (HSA) Other (please specify) Page 30 of 46

31 54. What programs do you use to manage claims? (Please check all that apply) Utilization Management Pre-Certification Concurrent Review Medical Case Management Prescription Carve-Out Predictive Modeling Transparency Pricing Support Other (please specify) Page 31 of 46

32 55. If you offer a health savings account, do you make an employer contribution to such an account for employees? Provided? Yes No Please describe: Flat amount o o We match a percentage of employee contributions o o Other (please describe) o o Page 32 of 46

33 56. How important do you view wellness programs as a long-term solution to controlling healthcare costs? o Very Important o Important o Somewhat Important t Important 57. Does your wellness program integrate with your safety program? o Yes, please explain 58. Do you charge a surcharge (extra monthly contribution from your employees) for not participating in your wellness program? o Yes. If so how much do you charge? Page 33 of 46

34 59. Which wellness resources do you currently use or promote: Health Risk Assessment Primary Care Physician Engagement On-site, Biometric Screenings Other (please specify) None 60. How do you address a spouse who is eligible for health insurance through their own employer and elects coverage under your health plan? Please select Yes No Cover the spouse under your health plan, but only as a secondary carrier o o Exclude such spouse from coverage o o Add a surcharge to the employee contribution (If Yes, please indicate the amount below) o o Page 34 of 46

35 61. Under your group health plan, do you require an additional employee premium for any of the following? Please select Please describe: Yes No Your Policy Flat dollar amount Percentage of premium If an employee has more than 3 children o o Based on annual compensation o o Page 35 of 46

36 62. What future strategies are being considered/utilized by your company to control healthcare costs? Currently Utilizing Not Utilizing Some Interest Significant Interest Increase Employee Payroll Contribution o o o o Implement New Health Plan Providers o o o o Implement or enhance wellness program o o o o Increase Employee Cost Sharing (Copays, Deductibles, etc.) for Healthcare Services Implement Health Savings Accounts, High Deductible Health Plans (HAS/HRA) o o o o o o o o Implement Dependent Audits o o o o Implement a partially self-insured program o o o o Carve out Pharmacy Benefit Administration o o o o Reference Based Pricing o o o o Centers of Excellence/Direct Contracting o o o o Host On-Site Nurse/Physician/Clinic o o o o Page 36 of 46

37 63. How comfortable are you with the status of your company's Affordable Care Act compliance? o Very comfortable o Somewhat comfortable o Concerned t sure 64. How satisfied are you with your current HRIS / Benefit Administration system regarding its capability to support Open Enrollment and On-Going Employee Engagement: o Extremely Satisfied o Somewhat Satisfied o Satisfied o Unsatisfied 65. Does your company use a single platform HRIS system for benefits administration do you also support a separate Benefit Administration System? o Single HRIS System for all needs o Add on Benefit Administration System ne o Other Page 37 of 46

38 66. In anytime in the last two years have you had a specialty prescription drug claim in excess of $100,000 annually? o Yes (please indicate the approximate annual amount) 67. Which of the following do you offer to your employees? Offered? Yes No Please describe: Mileage expenses, rate per mile o o Car allowance, monthly amount o o Company owned or leased vehicle, monthly amount o o Occupancy expenses (rent, utilities, maintenance, depreciation) o o Page 38 of 46

39 68. How do you reimburse your employees for extended out-of-town expenses? Actual Expenses Per diem/flat rate (please specify $ amount per day) 69. For extended out-of-town stays, do you provide additional compensation? o Yes Page 39 of 46

40 70. Does your company have a policy for the following? Offered? Yes No If yes, how many paid days? Sick Pay o o Paid Days Off o o Personal Days o o Page 40 of 46

41 71. Does your company offer either of the following? Offered? Yes No If yes, what is the length of benefit payments? What percentage of pay is received? Short Term Disability o o Long Term Disability o o Page 41 of 46

42 72. Please enter the number of weeks of vacation, not including compensatory time off: Officers Outside Sales Salaried Professionals Hourly Associates 1-2 years 2-5 years 6-9 years years 15+ years Page 42 of 46

43 73. What was your employee turnover rate over the last year? o 0% o 1%-5% o 6%-10% o 11%-20% o 21%-30% o 31%-35% o 36%-40% o Greater than 40% 74. Which activities are you currently using in your employee recruitment program? Enhanced compensation Apprenticeship program Partnership with trade/technical school Intern/Co-op Program Skills/Personality Profile Assessments Foreign Employee Visa Focus on ex-military, ex-prisoner, or handicapped candidates Involved in Government Program Other (please specify) Page 43 of 46

44 75. For retaining your top talent, which processes are you utilizing? Well Programs Flexible Work Arrangements Deferred Compensation Agreements Employee Loyalty Events Leadership Development Programs Enhanced Employee Benefits Increased Compensation Other (please specify) 76. How is the economic environment affecting your company? Cut Workforce Eliminated Shifts Salary Freeze/No Raises Reducing Personnel Costs through Attrition Increased Workforce Searching for Acquisition Seeking to Sell Business No Change Page 44 of 46

45 77. Which of the following applies to your company's financing situation? Current Banking Relationship Strained Experiencing Higher Rates/Fees More Focus on Covenants Experiencing Reduce Borrowing Capacity Reduction in Regulation/Monitoring No Change Optional Information What information would you like to see in future surveys? Was there information included on this survey that you think should be excluded from future surveys? Would you like a free second opinion on an accounting, tax, or other financial matter from a wholesale/distribution professional at Barnes Dennig? o Yes Page 45 of 46

46 Please contact: o Name: o Company: o Phone: o Would you like a complementary audit on an employee benefit plan or other commercial product from USI Insurance? o Yes Please contact: o Name: o Company: o Phone: o Page 46 of 46