Pay freeze impacting much of PT industry
Chicago, Ill. -- More than 70% of distributor and manufacturer employees are currently affected by a pay freeze. Th...
Chicago, Ill. — More than 70% of distributor and manufacturer employees are currently affected by a pay freeze. That’s based on data reported in the recently released 2003 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 Employee Development Committee, the report includes compensation and benefits information for distributors and manufacturers in the PT/MC industry.
The study includes salary, commission and bonus information for 17 sales and sales management positions. Compiled data reflects information reported by distributor and manufacturer member companies of PTDA based on 2002 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 sections. 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:
— The percentage of employees currently affected by a pay freeze was 79.6% for distributors and 71.7% for manufacturers.
— For the nearly half of those responding (49.5%), total compensation for distributor technical outside sales representatives included base salary and commission, but no bonus, while 25.3% offer a bonus along with base pay and commission. Commission for technical outside sales reps most commonly is based on gross margin dollars (76.5% of respondents).
— For manufacturers, a majority (82.9%) of technical outside sales representatives’ total compensation includes base salary and bonus, but no commission.
— 14.9% of responding employers provide full employee coverage for medical insurance, while 4.3% pay less than 70%.
— Total organization payroll expense as a per cent of total revenue for the most recent fiscal year was 17.3% for distributors and 21.6% for manufacturers.
— The voluntary turnover rate for 2002 was 8.0% for distributors and 7.3% for manufacturers.
The 2003 PT Industry Sales & Sales Management Compensation Study is available to PTDA members for US$250.00 (non-members $500.00). To order, visit www.ptda.org/catalog or contact PTDA at 312-876-9461.