1. The State of Manufacturing:
Important Trends Affecting NEO
Manufacturers
Marty Mordarski, SPHR, SHRM-SCP
Director, Research & Membership at ERC
2. Average Actual and Projected Base Pay Increases in NEO (2005-2015)
Source: 2015-2016 ERC Wage & Salary Adjustment S
3. Average Actual Base Pay Increases at Manufacturers in NEO (2005-2015)
(By Employee Group)
Production, Maintenance, and Service Positions (Non-Union)
Production, Maintenance, and Service Positions (Union)
Clerical and Technical Positions
Supervisory, Management, and Professional Positions
Executive Positions
Source: 2015-2016 ERC Wage & Salary Adjustment S
4. Percent of NEO Employers that Provided Base Pay Increases
Source: 2015-2016 ERC Wage & Salary Adjustment S
5. NEO Manufacturers that Did Not Provide Base Pay Increases (2005-2015)
(By Employee Group)
Production, Maintenance, and Service Positions (Non-Union)
Production, Maintenance, and Service Positions (Union)
Clerical and Technical Positions
Supervisory, Management, and Professional Positions
Executive Positions
Source: 2015-2016 ERC Wage & Salary Adjustment S
9. Image credit: vdHoeven/NASA/JPL-Caltech/R. Kennicutt (Univ. of Arizona)/DSS Based
on observations made with the NASA/ESA Hubble Space Telescope, and obtained from
the Hubble Legacy Archive, which is a collaboration between the Space Telescope
Science Institute (STScI/NASA), the Space Telescope European Coordinating Facility (ST-
ECF/ESA) and the Canadian Astronomy Data Centre (CADC/NRC/CSA).
10. Image credit: vdHoeven/NASA/JPL-Caltech/R. Kennicutt (Univ. of Arizona)/DSS Based
on observations made with the NASA/ESA Hubble Space Telescope, and obtained from
the Hubble Legacy Archive, which is a collaboration between the Space Telescope
Science Institute (STScI/NASA), the Space Telescope European Coordinating Facility (ST-
ECF/ESA) and the Canadian Astronomy Data Centre (CADC/NRC/CSA).
DANGER:
Reviewing data in a vacuum
11. Source: ERC/Smart Business Workplace Practices Survey
(2012-2015)
What is your company’s biggest challenge?
12. Challenging/Meaningful
Work
18.5%
Compensation 16.7%
Job Security 11.0%
Work/Life Benefits 10.6%
Benefits 6.8%
Autonomy 5.1%
Advancement 5.0%
Leadership 4.9%
Career Development 4.4%
Product/Service Quality 2.5%
4.9%Average base pay
increase for top
performers at
NorthCoast 99 award-
winning manufacturers
(2015 NorthCoast 99 Winners)
What is your company’s biggest challenge?
What do top performers look
for?
Source: 2015 NorthCoast 99 Top Performer Engagement
Survey (N=8,727)
15. Not all data are created equal
• Measures of central tendency (avg/median)
• Sample size (participants, observations)
• Population (industry, geography, size)
• Survey method (self vs. employer reported)
• Matching method (title vs. job description)
• Effective date / age of data
17. What do you want to pay?
• Lead, lag, or match the market?
• Put a premium on experience, skills, shifts?
• Pay for performance?
• Ranges, grades, levels?
• Internal equity?
• Role of benefits (“total rewards”)?
• Insurance
• Paid time off
• Retirement (i.e. 401k match)
• Stock options
18. And, oh, by the way….
Proposed changes to FLSA…
• Could raise the minimum weekly pay threshold from $455/week to
$970/week.
• Any employee making less than $50,440 per year could be entitled
to overtime (non-exempt).
• Changes may be finalized before the end of this year and go into
effect in 2016.
20. Visit for access to this presentation’s slides, free wage and salary survey
results, information about compensation consulting, and other resources.
www.yourERC.com/stateofmanufacturing