New KAM Wage and Benefits Survey Results Announced
Average Kentucky Manufacturing Salary Now $45,094
George E. Leamon, Director of the Barren River Workforce Investment Board, Barren River Area Development District
Jessica M.L. Thompson, Communications Coordinator
BOWLING GREEN, KY (March 5, 2008) - The results of the 2007 Kentucky Association of Manufacturers (KAM) Wage and Benefits Survey were released today at a news conference at the Barren River Area Development District (BRADD) Office in Bowling Green. BRADD, the Bowling Green Area Chamber of Commerce, South Central Kentucky, Logan Economic Alliance for Development (LEAD), and Barren Industrial Development Economic Authority (IDEA) co-sponsored the Wage and Benefits Survey along with KAM, which has administered this survey since 1911.
The Kentucky manufacturing industry is the No. 1 contributor to the state gross product by more than a two-to-one margin. The industry produces $27 billion in goods and accounts for 97 percent of Kentucky's exports, and it employs about 260,000 workers. Nearly 200 Kentucky manufacturers representing all regions of the state participated in the survey, which was conducted online by IQS Research of Louisville.
George E. Leamon, director of the Barren River Workforce Investment Board at BRADD, was pleased with the outcomes of the Wage & Benefits Survey, saying, "This survey provides accurate, understandable data that industries and economic development groups can use as a guide to making policy decisions. Overall, it proves most valuable because it paints a clear picture of the industries in our region and in the state as a whole."
This was the first KAM Wage and Benefits Survey co-sponsored by South Central Kentucky's regional economic development organizations. Dan Preston, vice president for economic development at the Chamber, said, "The Bowling Green Area Chamber of Commerce and the South Central Kentucky partnering organizations, Barren IDEA and Logan LEAD, were pleased to be a part of this survey. We work hard to provide valuable resources for our existing industries and for those looking to locate here, and this survey is one such resource."
Martin Kish, vice president of marketing and revenue for KAM, provided an overview of the statewide survey results at the local news conference. According to the survey, the average Kentucky manufacturing employee earns an annual base salary of $45,094, a 3.7% increase from the previous year's salary. According to the 2006 data from the Kentucky Cabinet for Economic Development, the average per capita income for Kentuckians is $29,719. Therefore the average Kentucky manufacturing employee earns a salary that is more than $15,000 higher than the average Kentucky worker's income.
Fifty-six companies in the Southern Kentucky region responded to the survey. Some of the results from their participation are as follows:
- Of the 56 companies responding for the Southern Kentucky region, 58.9% indicated they had less than 100 employees, and 50% indicated they employ less than 20 part-time workers.
- The 40-hour workweek is still the most frequently indicated standard among the respondents, with 71.4% indicating this as the norm.
- When asked about the number of shifts worked, 44.6% said three shifts, 14.3% said one shift, and 8.9% said two shifts.
The respondents reported fairly low turnover rates in 2007, with 35.7% of the companies reporting turnover rates between 1-10% annually. Another 17.9% reported turnover rates between 11- 20%, and 12.5% of companies reported turnover rates between 21-30%.
Of the companies surveyed, 41.1% indicated they provide an annual bonus. The bonus pool is most often determined by the organization's performance (65.2%).
Nearly two-thirds (66.1%) of companies surveyed offer health insurance through a Preferred Provider Organization, while 30.4% administer their insurance plan through a self-funded third party and 1.8% have self-funded/self-administered insurance plans. Other types of insurance companies offer are
- Accidental death and dismemberment (64.3%)
- Supplemental insurance (58.9%)
- Dental plans (78.6%)
- Vision plans (48.2%)
More than half of companies surveyed (58.9%) offer a 401(k) plan or defined contribution plan.
17.9% offer a defined benefit plan and 10.7% offer an employee stock option plan (ESOP).
Many area manufacturers participate in this survey. According to Gregg George, senior human resources manager at NASCO, "KAM's annual Wage and Benefit Survey provides a great deal of information on the wages and benefit practices of Kentucky's businesses. It is particularly relevant for area plants, such as NASCO, because its focus is on manufacturing companies and its results are reported for local labor markets, such as our South Central Kentucky region. This is a useful survey for gauging our competitiveness in the local labor market and guiding us in making decisions regarding our pay and benefit programs. I appreciate the support of the sponsors as well as the efforts of all the participating companies."
"We in Logan County are pleased to have been a part of this survey since it provides an excellent resource for our manufacturers in our state, especially those in our region," said Devin Harper, human resource leader for Logan Aluminum, Inc. "We can compare our own policies and procedures to the results of this survey, as can all manufacturers in the region. This will assist us all in improving the workplace environment at each of our organizations."
"Surveys such as these are comprehensive resources that provide much-needed information for existing industries like us. We're grateful for such information and look forward to utilizing this in our policy-making procedures," said Amy Walker, human resources manager at ACK Controls in Glasgow.
"The Annual Wage and Benefits Survey is valuable because it helps Kentucky manufacturers compensate their employees fairly and competitively with peer companies," says Jim LeMaster, president and CEO of KAM. "If they pay more than market, it can unnecessarily cost them thousands of dollars. If they pay less than market, good, well-trained employees will leave their company and go elsewhere."
Visit www.kamanufacturers.com for information on how to obtain a copy of the 2007 KAM Wage and Benefits Survey.
About the Bowling Green Area Chamber of CommerceIncorporated in 1935, the Bowling Green Area Chamber of Commerce is the driving force for economic development in South Central Kentucky. As one of only 336 chambers nationwide to be accredited by the U.S. Chamber of Commerce, and the fourth largest chamber in Kentucky, the Chamber serves as a premier business advocate for its more than 1,300 partners. Its primary goals are to promote growth and success in the business community, reaching its small business partners and those in large industries alike. With leadership programs, governmental relations projects, educational initiatives and involvement opportunities, the Chamber aims to support the community and its neighbors in order to enhance the business climate and continue to grow the region.