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Research Report

Number 4514

October 2018

Confidential

2018 Salary Adjustment Survey

2018 Salary Adjustment Survey Confidential

© 2018 Hawaii Employers Council

All rights reserved. This publication contains proprietary and copyrighted information of the

Hawaii Employers Council.

No part of this publication may be reproduced, distributed, or transmitted in any form or by any

means, including photocopying, scanning, recording, emailing, or other electronic or mechanical

methods, without the prior written permission of the Hawaii Employers Council.

This publication has been provided only to survey participants for their sole use, and participation

in the survey is a prerequisite for receiving a copy of this publication. Therefore, recipients of

this publication may not disclose, share, distribute, email, or otherwise transmit any part of this

survey to any other individual or entity, without the prior written permission of the Hawaii

Employers Council.

For permission requests, please contact: Hawaii Employers Council

P.O. Box 29699

Honolulu, Hawaii 96820

2018 Salary Adjustment Survey Confidential

Page i

TABLE OF CONTENTS

Page

Introduction ............................................................................................................................................................................................ 1

Profile of All Survey Participants ........................................................................................................................................................... 2

Report Format ......................................................................................................................................................................................... 4

Survey Summary Highlights .................................................................................................................................................................. 5

Table 1 - Percentage Pay Adjustments in Hawaii (Actual, 7/1/17 to 6/30/18) ....................................................................................... 19

Table 2 - Percentage Pay Adjustments in Hawaii (Projected Budget, 7/1/18 to 6/30/19) ...................................................................... 19

Table 3 - Percentage Median Pay Adjustments (Hawaii), 2013 – 2018 ................................................................................................. 20

Percentage Median Pay Adjustments (U.S.), 2013 – 2018 .......................................................................................... 20

Comparison of U.S. and Hawaii Median Pay Percent Adjustments (All Groups) (Includes 2019 Projections) .......... 21

Table 4 - Job Categories Actual Pay Adjustments for 2017 and 2018 ................................................................................................... 22

Job Categories Projected Pay Adjustments for 2018 and 2019 .................................................................................... 22

Table 5 - Percentage Pay Adjustments by Industry (Actual, 7/1/17 to 6/30/18) .................................................................................... 23

Table 6 - Percentage Pay Adjustments by Industry (Projected Budget, 7/1/18 to 6/30/19) ................................................................... 24

Table 7 - Percentage Pay Adjustments by Organizations Revenue (Actual, 7/1/17 to 6/30/18) ............................................................ 25

Table 8 - Percentage Pay Adjustments by Organizations Revenue (Projected Budget, 7/1/18 to 6/30/19) ........................................... 25

Table 9 - Percentage Pay Adjustments by Employment Size (Actual, 7/1/17 to 6/30/18) ..................................................................... 26

Table 10 - Percentage Pay Adjustments by Employment Size (Projected Budget, 7/1/18 to 6/30/19) .................................................. 26

Table 11 - Formal Pay Structure and Pay Structure Adjustments .......................................................................................................... 27

Organizations with a Formal Pay Structure.................................................................................................................. 27

Formal Pay Structure Percentage Adjustment (Actual, 7/1/17 to 6/30/18) .................................................................. 27

Formal Pay Structure Percentage Adjustment (Projected, 7/1/18 to 6/30/19) ............................................................. 27

2018 Salary Adjustment Survey Confidential

Page ii

Table of Contents (continued)

Page

Table 12 - Lump Sum Payments Used in Lieu of Salary Adjustments during 7/1/17 to 6/30/18 .......................................................... 28

Table 13 - Formal Performance Incentive Plans .................................................................................................................................... 29

Organizations with One or More Formal Performance Incentive Plans ...................................................................... 29

Percent Award for Organizations with Formal Performance Incentive Plans (Actual, 7/1/17 to 6/30/18) .................. 29

Percent Award for Organizations with Formal Performance Incentive Plans (Projected, 7/1/18 to 6/30/19) ............. 29

Table 14 - Promotional Adjustments ...................................................................................................................................................... 30

Organizations Providing Promotional Adjustment Data .............................................................................................. 30

Percent of Promotional Adjustment Amount (Actual, 7/1/17 to 6/30/18) ................................................................... 30

Percent of Promotional Adjustment Amount (Projected, 7/1/18 to 6/30/19) ............................................................... 30

Table 15 - Type of Base Pay Adjustment ............................................................................................................................................... 31

Table 16 - Dates Pay Adjustments Are Granted..................................................................................................................................... 31

Table 17 – Base Pay Target Levels ........................................................................................................................................................ 32

Participating Organizations .................................................................................................................................................................... 33

2018 Salary Adjustment Survey Confidential

Page 1

INTRODUCTION

The 2018 Salary Adjustment Survey was conducted during June to September 2018. Participating organizations were instructed to provide actual data that reflected the previous 12-month period (7/1/2017 to 6/30/2018) and the next projected 12-month period (7/1/18 to 6/30/2019) by various employee groups,

as noted below.

Executives

Exempt

Office & Technical (non-union)

Office & Technical (union)

Production & Service (non-union)

Production & Service (union)

One hundred sixty-eight organizations participated in this year’s survey.

The following tables illustrate the distribution of survey participants by industry, organization revenue, and employment size.

2018 Salary Adjustment Survey Confidential

Page 2

PROFILE OF ALL SURVEY PARTICIPANTS

1. Profile of Organizations by Employment Size

Number of Employees

# of

Respondents

% of

Respondents

< 100 85 50.6

100 < 500 55 32.7

500 < 1000 8 4.8

1000+ 20 11.9

Total 168 100.0%

2. Profile of Organizations by Revenue/Budget size

Revenue Grouping

# of

Respondents

% of

Respondents

< $7 million 62 36.9

$7 million < $20 million 38 22.6

$20 million < $150 million 43 25.6

$150 million+ 25 14.9

Total 168 100.0%

< 100 Employees,

50.6%

100 to 499 Employees,

32.7%

500 to 999 Employees,

4.8%

1,000+ Employees,

11.9%

Organizations by Employment Size

2018 Salary Adjustment Survey Confidential

Page 3

3. Profile of Organizations by Industry Group

Industry Group

# of

Respondents

% of

Respondents

Construction 8 4.8

Education Services 8 4.8

Finance / Banking 16 9.5

Info Tech / Communications 2 1.2

Multi-Industry 2 1.2

Natural Resources / Agriculture 3 1.8

Non-Durable Goods Mfg. 3 1.8

Public Sector+ 6 3.6

Real Estate / Insurance 17 10.1

Retail / Wholesale Trade 12 7.1

Services:

Golf / Membership Clubs 4 2.4

Health Services 27 16.1

Leisure / Hospitality Services 9 5.4

Other Services 20 11.9

Professional / Business Services 9 5.4

Social Services 15 8.9

Transportation / Warehousing 2 1.2

Utilities 5 3.0

Total 168 100.0%

Construction

4.8%

Education Services

4.8%

Finance / Banking

9.5%Info. Tech. /

Communications

1.2%

Multi-Industry

1.2%

Natural Res / Agriculture

1.8%

Non-Durable Goods Mfg.

1.8%

Public Sector+

3.6%

Real Estate /

Insurance

10.1%

Retail / Wholesale

Trade

7.1%

Golf / Membership

Clubs

2.4%Health Services

16.1%Leisure / Hospitality Services

5.4%

Other Services

11.9%

Professional /

Business Svcs.

5.4%

Social Services

8.9%

Transportation /

Warehousing

1.2%

Utilities

3.0%

Organizations by Industry

2018 Salary Adjustment Survey Confidential

Page 4

REPORT FORMAT

The information in this report has been compiled from data furnished by each participant with the understanding that the data reported by the participating

organization remain confidential. For this reason, some measures are not shown when fewer than five organizations are reported. An “*” is reported

where there is insufficient data for reporting purposes. The following criteria were used in the final report:

The Hawaii Employers Council makes every effort to insure a consistent and representative sample each year. However, new organizations may

participate and others are no longer in business or may not be able to participate in a given year. Actual percentage amounts may vary based on different

participating organizations. Therefore, changes in reported data from year to year should be viewed as general trends or indicators rather than precise

measurements.