PAS Publishes Latest Construction Salary & Benefits Data
In the latest issue of Contractor Compensation Quarterly, PAS, Inc. publishes its latest projections of salary increases. Construction executive salaries will rise an average of 5.5 percent in 2008, PAS predicts, while professional and middle-management salaries will rise an average of 4.8 percent, and open-shop craft wages will rise an average of at least 5 percent.
"Craft increases will, of course, be geographically and construction-type sensitive given the downturn in residential construction and the high demand areas along the gulf coast,” forecasts PAS.
The newsletter also reports on fringe benefit practices, advising that 35 percent of surveyed firms reported improvements in benefit programs in 2007, while only 3 percent reported reductions. “Voluntary” benefits such as health, retirement and paid leave benefits have risen from an average of 19 percent of payroll in 1988 to 25 percent in 2006 and 2007, according to PAS. The 2007 average reflects a range from 18 percent for contractors earning less than $5 million in annual revenue to 33 percent for contractors earning over $500 million.
Taking a closer look at healthcare costs, PAS reports that family fee-for-service premiums paid by contractors averaged $10,714 in 2007, up from $10,500 in 2006. “To cope with these mounting costs, contractors are employing a combination of alternative providers, risk management, cost sharing, benefit limits, flexible benefits, health premium caps, disease management and health savings accounts,” states PAS. This year, 89 percent of contractors provide alternatives to traditional fee-for-service health insurance, down from 93 percent in 2006. PAS reports that 69.3 percent of contractors offer a preferred provider organization, 17.2 percent offer managed care (HMO), 11.5 percent offer traditional health insurance, and 7.3 percent offer point-of-service plans. Seventeen percent of surveyed contractors are self-insured.
For more information or to subscribe to the Contractor Compensation Quarterly, contact PAS at (734) 429-1199 or visit www.pas1.com.
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