PT pay survey includes rates for technical staff
Chicago, Ill. -- Nov. 8, 2001 -- Over 30% of distributor and manufacturer firms in the power transmission/motion co...
Chicago, Ill. — Nov. 8, 2001 — Over 30% of distributor and manufacturer firms in the power transmission/motion control (PT/MC) industry lack a formal compensation policy. That’s based on data reported in the recently released 2001 PT Industry Sales & Sales Management Compensation Study by the Power Transmission Distributors Association (PTDA).
Conducted every two years by the Management Association of Illinois under the oversight of PTDA’s Human Resources Committee, the report includes compensation and benefits information for distributors and manufacturers in the power transmission/motion control industry.
The study includes salary, commission and bonus information for 17 positions, including two new positions for 2001. Compiled data reflects information reported by 63 distributor and manufacturer member companies of PTDA for a total of 4,424 employees based on 2000 data.
The report also includes a comprehensive benefits section with detail on distributor and manufacturer retirement plans, life and medical insurance, business reimbursement policies, leave policies and personnel policies.
Summary results are separated into distributor and manufacturer participants. Breakouts for compensation data are presented by sales volume, total number of sites and state (where sufficient data was available).
The data provided can be used to:
-Establish appropriate salaries and benefits for key or high-demand positions
-Improve recruitment outcomes
-Enhance employee retention
-Communicate a valid rationale to employees about compensation and benefits.
Other highlights from the report include:
-Average total compensation for distributor technical outside sales representatives was $52,513 in 2000. For the vast majority of reporting distributors (93.1%), total compensation includes base salary and commission, but no bonus. Commission for technical outside sales reps most commonly is based on sales dollars on orders (90.5% of respondents).
-For manufacturers, average total compensation for technical outside sales representatives was $63,489 in 2000. While 51.8% of reporting manufacturers compensate via base salary and commission, 46.4% offer base salary and bonus. Similar to distributors, commission for manufacturer technical outside sales reps most commonly is based on sales dollars on orders (89.1%).
-27.9% of distributor and manufacturer employers provide full employee coverage for medical insurance, while 16.4% pay less than 70%.
-Total organization payroll expense as a per cent of total revenue for the most recent fiscal year was 16.8% for distributors and 18.6% for manufacturers.
-The voluntary turnover rate for 2000 was 13.0% for distributors and 9.8% for manufacturers.
The 2001 PT Industry Sales & Sales Management Compensation Study is available to PTDA members for $250.00 (non-members $500.00). To order, visit www.ptda.org/catalog or contact PTDA at 312-876-9461.