Co-Author: April Mays
Remaining competitive in the manufacturing industry and increasing sales is accomplished by keeping the right people employed, and doing so requires offering employees comparable compensation and benefits. Based on a survey of 63 companies in the manufacturing industry in the Cincinnati region, pay increases have been on a steady incline since 2010. In 2010, for companies with less than 100 employees, pay increased 2.6% growing to 4.6% in 2012 with anticipated increases of 5.5% during 2013. The same trend is noticed in companies with more than 100 employees.
Criteria to Consider for Bonus Structures
An important consideration in compensation as you approach the end of the year is management and employee bonuses. Based on the same survey of 63 companies, nearly half of those surveyed indicated that bonuses are discretionary while 33% of companies base the bonus on company goal achievement and 21% use individual goals as a criteria. As you hand out those bonus checks or prepare your budgets for next year, consider how your bonus structure aligns with the company goals and how best to utilize bonuses to get the most out of your employees.