Despite the economic downturn, associations continue to offer competitive salaries and benefits, finds a new report from the Association Forum of Chicagoland. An annual survey of compensation, benefits and office practices at Chicagoland associations and nonprofits, the 2009 - 2010 Association Compensation and Benefits Survey sets industry standards that job applicants can use to determine their fair-market value, and that employers can use to find and retain top talent during both the recession and the recovery that follows. This critical survey will help CEOs to comply with the IRS Form 990 that requires details on how CEO compensation is established.
"In order to cope with the recession, many businesses this year have been forced to cut costs - including employee compensation and benefits," said Christie A. Tarantino, CAE, Association Forum president and CEO. "Although they have not been immune to the downturn, the Association Forum is pleased to report that Chicagoland associations appear to be more exception than rule, as association professionals continue to benefit this year, as in past years, from modest salary increases and competitive benefits packages."
Chicagoland associations employ more than 47,000 people. Overall, salaries for exempt-level association employees increased in 2009 by 3.6 percent from 2008 averages, 3.2 for non-exempt level employees and 4.7 percent for CEOs. Salaries are projected to increase from 2009 to 2010 by 2.9 percent for exempt-level employees, 2.8 percent for non-exempt level employees and 3.9 percent for CEOs.
"For association employees and employers alike, this is mission-critical information," Tarantino added. "Although the job market is weak, the need for talented and capable employees still is strong. In order to attract and retain the best talent, association employers must know what it's worth. Association employees, meanwhile, can leverage this data to achieve fair compensation levels, whether they're negotiating a raise during their annual review or evaluating job offers from potential employers."
The survey data also is critical for compliance, as the Internal Revenue Service last year redesigned IRS Form 990, which now requires nonprofit organizations to provide information on how they developed compensation for their CEOs. A total of 139 organizations participated in the 2009 survey, contributing data on 2,850 rates of pay for 72 different positions. Organized by budget, membership type, geographic scope of membership, job title and job location (city or suburban), the data was collected by the Management Association of Illinois, which produced the report.
Among other findings of the survey:
- 82 percent of associations surveyed offer employees health insurance either immediately or after one month of employment;
- 31 percent of associations provide 10 paid holidays, 20 percent offer nine paid holidays and 12 percent offer eight paid holidays;
- 24 percent of associations provide two paid personal days;
- The average paid maternity/disability leave is four weeks;
- 61 percent of associations have 401(k) retirement plans and employees in 53 percent of associations are vested;
- The average tuition reimbursement per employee, per year, is $3,477;
- The average turnover is 13.4 percent. In the last three years, 54 percent of organizations said turnover has remained the same, 26 percent have experienced an increase and 13 percent have noted a decrease;
- 32 percent of associations allow telecommuting for exempt employees and 21 percent for all employees;
- 60 percent of associations offer flextime scheduling for the entire year, and nine percent offer it seasonally.