Most Bay Area Bosses Are More Optimistic about Their Own Companies' Future Than about the Economy in General, CompAnalysis Finds.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 27, 2003

One fifth (20%) of Bay Area employers feel that the 2003 economy is improving. But more than twice that (44%) feel that prospects for their own organizations are getting better, a new study shows. That belief may be the reason that many employers plan to grant salary increases of 3.5% in 2004.

These perceptions of the economy, the workplace and plans for the future are part of a survey that collected data in July and August from more than 100 companies in nine Bay Area counties and two Central Coast counties. The survey studies compensation for 53 common job types found in most organizations. Other findings include:

-- The top three hot issues facing employers today are inflation

of health care costs, workers compensation, and underwater

stock options (stock options that have strike prices higher

than the current market price.)

-- More than one-half (54%) indicated that their organization is

shifting more benefit costs to employees.

-- Most employers (75.6%) granted salary increases for

performance/merit in 2003.

-- Nearly half (45.6%) increased salaries in order to remain

competitive.

"A significant part, although not all, of any employer's competitive advantage relates to pay. In today's economy, it is more critical than ever for a competitive organization to have access to current data in order to make informed pay decisions," noted Shari Dunn, managing principal of CompAnalysis, which conducted the survey based on July 1, 2003 data. "With more than 100 employers participating in this survey, there is clearly a demand for this type of information."

Dunn became frustrated by the lack of quality, location-specific pay data on generic jobs in the Bay Area. "Some people rely on Internet sources for pay information," she said. "Those of us involved in compensation management know and understand the shortcomings associated with such Web-based information. We wanted to provide statistically valid, localized information on job-specific wages, salaries and other cash compensation elements."

The companies surveyed, representing nearly 70,000 Bay Area employees, provided compensation data to CompAnalysis' Greater San Francisco Bay Area 2003 Compensation Survey. The report provides insight into salaries, bonuses, and stock and retirement compensation for jobs at all levels and in nine functional areas: executive, legal, financial, human resources, marketing, operations, information technology, Web-based, and general clerical. The responding companies came from a wide variety of industries but the surveyed jobs are intentionally not industry-specific.

CompAnalysis has been providing compensation management consulting services to San Francisco Bay Area employers for 23 years. During this time, it has helped more than 400 organizations develop pay plans. Its primary emphasis has been the design of cash compensation plans, through job evaluation and classification, structure development, administrative practices and communications strategies. In addition, it has worked with clients to develop effective means of measuring and linking performance results to both base and variable pay.

More information about the survey, including how to obtain the report, can be found at www.salarysurveys.com.

Editor's Note: A CompAnalysis logo and a portrait of Dunn, designed specifically for print publication, can be easily downloaded from www.givememore.com/companalysis.