Retirement & Pension Hiring & Salary Survey of 2015

It is with great sadness and sense of loss that we lost our founder Doug Christensen on January 6th, 2016. While our business will continue to thrive and grow because of our executive leadership, the void created by the loss of our always optimistic and excitable founder will be hard to fill. When I was hired at CPS, we were well ahead of the curve in creating an environment that people desire to work in. I remember sitting in the reception area awaiting my interview and thinking “This company has an energy that I have not felt before!” It was different: the music, dress code, a soda fountain, etc. A number of years later, Doug told me that he had paid a lot of money to lawyers trying to create an iron clad noncompete clause and realized he was investing his money in the wrong place. He decided to spend his resources and time in creating company where people wanted to work. I can say just shy of 20 years later, he succeeded! I mention this because the things Doug stood for and believe enabled CPS to be an industry leader in talent acquisition and retaining the recruiters who produce those results. It is my hope that in sharing these insights you can take his core values and retain your company’s biggest assets – your employees. Doug believed in providing freedom to responsible people. He did not say all people but responsible people. When a company hires talented people, provides an environment of freedom, and gets out of the way, great things happen. Sure, every once in a while the wrong person gets hired and takes advantage of the situation. However; in the long run, employees who are afforded that freedom are more creative, appreciative, and productive. Doug lived the adage of treating the janitor with the same respect you would the CEO. We have a column in the front of our office. Doug placed it in the office to remind our employees that no one gets put on a pedestal. Not our managers, recruiters, candidates or even clients. We treat everyone with the same respect. When someone knows they are valued as much as a company’s partner or even the largest client, they invest more of themselves in to their job and the company as a whole. Doug also lived the Zig Zigler line of getting what you want in life by helping enough people in getting what they want. In putting employee’s needs ahead of his own, he created a bond that could be stretched but rarely broken. He politely asked about employees’ families in passing, he reached out directly to family members in times of trouble as well as accomplishment. Doug had a way of letting every employee know they make a valuable contribution and CPS would not be as successful without their contribution. These ideas are not unique to CPS. The reason they work for us is that they are not buzz words but core values. The difference allows employees to experience a fundamental change they don’t typically experience in corporate America. In this type of environment people are happier, supportive of coworkers, partner with leadership, more productive…. Our success as a company depends on these values. Doug, thank you for providing all of us a great place where we choose to work. Provided by Steve Anderson – CPS Inc., (708)531-8385

CPS Inc. welcomes Big Data! This year we added our eleventh market specialty. The Big Data division focuses on sourcing advanced analytics candidates for SME and enterprise corporations in the healthcare, insurance, banking/finance, technology and retail/ecommerce industries. Positions range from entry level to C-suite and upper management in the fields of Data Science, predictive analytics, statistics, data modeling, database architecture, web development, business intelligence, marketing analytics and consumer insights. Call (708)531-8375 to engage our search consultants to find top level talent for your data analytics jobs.

Survey This year’s survey was again made up of a sample pool of over 500 employees at all levels of experience with more than 100 companies. All employees surveyed work for qualified/nonqualified plan providers, advisors, consulting firms, etc. All results of this survey pertain directly to our industry. When it comes to the actual salaries, there are many factors that can affect those numbers. Cost of living indexes, greater competition for talent in particular markets, and the type of company will all affect the numbers. I invite anyone who is looking for insights or has specific questions to give me a call. In the spirit of giving back, I am happy to take your call.

This Year’s Findings Feedback Employee feedback can be one of the most powerful and inexpensive management tools available. Often the most effective feedback is not even a formal performance review but rather candid and timely feedback on a specific task. Feedback can also be motivating for employees. On the contrary, an employee who has no feedback can be a rudderless ship in a storm. We found that most employees are getting feedback. When asked if they feel employee performance evaluations are fair and appropriate, an overwhelming 60% agreed with that statement, 21% disagreed while the remaining 19% were undecided. 58% of the respondents also felt that when they do a good job, they receive the recognition deserved with 26% disagreeing.

Compensation Compensation can be viewed in many ways aside from a base salary. Things like benefit costs, vacation, pension, etc. also enter the mix. What a company puts into a compensation package for an employee or particular position can vary greatly. Variables like a person’s value to a company, importance of an individual position, a company’s stature in the industry, or even the abundance or lack of qualified talent in a given region all have an effect. What cannot be disputed is that compensation in varying degrees is a consideration in every employee’s decision to stay or accept a position with a new company. When asked if they are paid fairly for the work they perform, 54% agreed, 26% disagreed, with 20% undecided. It was almost an even split between those who agreed and those who did not or were not sure. The numbers changed somewhat when asked if there was a direct correlation between job performance and being appropriately compensated. Those who agreed made up 47% while 37% disagreed and the remaining 16% were undecided.

Provided by Steve Anderson – CPS Inc., (708)531-8385

Workplace & Resources A company made up of exceptional and driven employees can overcome not having the proper resources to do their job for only so long. Over time, the lack of resources will become a drain on top employees, affecting their work product, motivation, and may even lead to leaving their employer. Putting employees in a position to succeed benefits everyone involved. The good news is that 60% believe they have the resources they need to perform their jobs, with 13% undecided and 27% saying they do not. An office’s physical design & being well maintained makes a large statement to employees, potential employees, and clients alike. Take a walk around the office and ask “What message do we send?” Does the space say capable, open & inviting, accomplished, innovative or dated, tired, etc.? Keep in mind that culture will always trump design, but design should support culture. An overwhelming 76% believe they have an office that is well maintained with 7% being undecided and 17% disagreeing that the office is well maintained.

Personal Expression Before I started at CPS nearly 20 years ago, we had Hewitt Assoc. (at that time) consult with us about our environment. One key finding was that management was not completely trusted. That study helped us get our culture right which led to a couple of key changes internally. One was that the managers left their individual offices and worked on the floor next to those they managed. It also enabled us to help the employee’s voices to be heard. Freeing employees to voice their thoughts is essential to the growth of the business and retention of key employees. When asked if they were comfortable sharing their opinions at work 60% said they were, 15% were undecided, while 25% disagreed. When asked if their ideas and opinions counted, 58% said they did, 19% were undecided, and 23% felt that they did not.

Staffing As I have conversations with candidates over the course of a year, I often conduct informal surveys. Recently the message I have heard is that employees want to be surrounded by knowledgeable and capable employees. When a hard working employee does not have capable team members surrounding them they tend to feel alone and like they are fighting an uphill battle. With the cost of an unfilled position as high as 50-60% of an employee’s annual salary, turnover can be very expensive. In this year’s survey, 40% of respondents agreed that their employer maintained appropriate staffing levels while 15% were undecided and 45% said they disagreed. Asked if their company works to attract, develop, and retain quality employees 52% said they did while 33% felt they did not.

Leadership As already stated in this review, trust in all levels of management is essential to a company’s success and future. The President/CEO has at least a symbolic role of communicating a company’s goals, directions, current condition, etc. It’s this type of sincere communication that develops trust. When information is not shared from executive leadership, it leaves employees open to make assumptions. 54% of employees believe their company’s executives have the leadership capabilities to execute their business strategy, while 21% were undecided and 25% believed the executives did not. When asked if their company’s executives lead by example, 53% said they agreed, 22% were undecided.

Provided by Steve Anderson – CPS Inc., (708)531-8385

Work/Life Balance The hot topic the last number of years has been a balance between work and personal life. Studies show that when there is a balance between work and personal life, productivity goes up. When that balance is there, employees tend to put their best efforts into their work and feel a sense of job satisfaction. When asked if their company supported a balance between work and personal life, 67% agreed while 19% disagreed and 14% were undecided. When asked if the amount of the work they are asked to perform is reasonable, 58% agreed and 27% disagreed with 15% undecided.

Professional Growth

Employee growth is equally important to the individual and organization. One area management may tend neglect is developing a plan to help employees cultivate their careers and shape their futures. Companies can provide opportunities to develop knowledge, abilities, skills, resources, and create an environment for someone to be successful. When this is provided it cultivates in its employees a sense of loyalty with their employer and pays dividends for the company in bottom line work product. Asked if they had adequate opportunities for professional growth in their company, 49% indicated they did while 33% felt they did not and 18% were undecided. The survey went one step further by asking if they believe their manager was actively interested in their professional development. 45% of the employees agreed with 32% disagreeing and 23% undecided.

Employee motivation Why does an employee stay with their current employer versus going to another company? Of course the survey seeks to answer many of those reasons. When it comes to bottom line compensation & benefits, this is what we found.

What is most important to you? 80% 60% 40% 20% 0% Base Salary

Benefits Cost

Working remotely Quality of team members

When asked which was more attractive to an employee: for their current employer to pay a larger percentage of the employee’s health premiums or changing employers in return for a 2-3% salary increase, the findings were interesting. First, it is important to note the reason for the 2-3% increase was that last year; most employers said they gave a 3% increase or less to new hires. 57% of the respondents said they would want their employers to pay more of their health coverage and 43% wanted the salary increase and change in

Provided by Steve Anderson – CPS Inc., (708)531-8385

employer. Most of the lower level positions we see give that 2-3% increase while executive level positions or one that requires relocation tend to offer a larger increase in salary. In looking at the results of this year’s questions, as much as 65% or more were favorable responses and most of them were at 50% or more. The remaining percentages were for those who were undecided or believed their employer needed improvement in specified areas. It is at this crossroads where companies need to selfassess. If you believe you are on the positive side, keep looking for ways to improve on those numbers. On the other hand, if your company has areas to improve on, what needs to be done to transform those results? A satisfied employee who feels they are valued and works for an employer/manager who treats them well almost never interviews at another firm. Employers who nurture the right work environment find it easier to attract employees and don’t have many employees who leave to work at a competitor.

2015 Salaries DC Plan Administrator (1 – 4 yrs.)

40,000 – 55,000

0 – 10% bonus

DC Plan Administrator (5 – 9 yrs.)

46,000 – 68,000

0 – 10% bonus

DC Plan Administrator (10+ yrs.)

61,000 – 95,000

0 – 15% bonus

DC Plan Administration is some combination of performing recordkeeping, compliance testing, form filings, trust accounting, and client communication

Team Leader Operations (managing direct & indirect reports)

59,000 – 88,000 86,000 – 165,000

0 – 15% bonus 15 – 40% bonus

Internal Account Manager

53,000 – 74,000

0 – 15% bonus

Relationship Manager, Consultant

70,000 – 157,000

10 – 40% bonus

Salary is in direct proportion to the average plan assets per client managed

Employee Education – Enrollers

55,000 – 76,000

10 – 25% bonus

ERISA Attorney

88,000 – 151,000

0 – 30% bonus

Sales

63,000 – 142,000

W2’s 100,000 – 400,000

Salary is in direct proportion to the average plan assets sold

DB Administrator & Actuarial Associate

57,000 – 95,000

0 – 10% bonus

Conversions (data input & manipulation)

45,000 – 72,000

0 – 10 % bonus

Conversions (project manager)

58,000 – 90,000

0 – 20% bonus

Add 3 – 10% to any of the above roles for ASPPA, NIPA, and/or ERPA designations

ASA (less than 15 yrs.)

90,000 – 152,000

10 – 25% bonus

ASA (15 yrs. plus) FSA (less than 15 yrs.) FSA (15+ yrs.)

100,000 – 200,000 110,000 – 215,000 135,000 – 285,000

10 – 25% bonus 10 – 25% bonus 10 – 25% bonus

Add 5 – 10% for Enrolled Actuaries

Provided by Steve Anderson – CPS Inc., (708)531-8385