COMPARISON REPORT COMPARISON REPORT
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EXECUTIVE EXECUTIVE SUMMARY SUMMARY
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Executive Summary
The Vermilion Advantage Regional Benchmark Survey, formerly known as the Wage and Benefit Survey, had commitment to participate from 28 employers, with 17 completing the survey. Available online from March 11 to April 15, the survey covered various topics including company profile, compensation, labor challenges, benefit overview, personnel development, wage bands, and HR inquiries. While the intention was to separate comparisons by cluster, the final survey results did not have enough participation from banking and healthcare sectors to do so. Manufacturing contributed the majority of the data points. Despite this, the report provides valuable insights and encourages future participation.
Key Findings:
Labor Shortages: Skilled labor remains a primary concern, with maintenance, skilled machinists, and engineering roles being particularly scarce. In administrative organizations, customer service, human resources, and sales are high priorities for recruitment. On average, employers reported a time-to-fill rate of 50 days for professional roles and 28 days for skilled labor.
Workforce Turnover: The average turnover rate has decreased from 39% in 2021 to 27% in the current survey. This decline, coupled with a decrease in unemployment rates from 7.1% in 2021 to 5.7% today, suggests a settling workforce post-COVID.
Compensation: Competition in the local market has intensified over the last three years, with 67% of employers planning to offer 3%+ increases in 2024. Many employers supplement compensation packages with incentives such as shift premiums, on-call pay, and holiday pay
Paid Time Off: Changes in Illinois state law have prompted employers to review their time-off policies, with most offering 10 vacation days in the first full year of employment.
Health Insurance: PPO plans are prevalent among employers, with some offering HDHPs. Employee contributions are increasing, with average monthly costs of $219.48 for individuals and $554.35 for families for PPO plans, and $83.62 for individuals and $345.88 for families for HDHPs.
Personnel Development: Many companies use personnel development as a recruitment and retention tool, with 43% offering development plans and career ladders. Apprenticeship and internship programs are also common, though only 25% of employers have formal cross-training programs.
Cluster Inquiries: Topics such as facility inclusivity, drug testing, and ODRISA law changes were requested by Vermilion Advantage Cluster members and are explored in this report. 05
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SURVEY SURVEY
PARTICIPANTS PARTICIPANTS
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2024 Regional Benchmark Survey Participants
Christie Clinic, PLLC
EnvirOx, LLC
Fisher National Bank
Gateway Family Services of Illinois
Illume Counseling & Wellness Center
Iroquois Federal
Mervis Industries
Owens Corning Danville
Pepsi / Quaker Oats
Silgan Containers
Steel Grip
The Hometown Savings Bank
thyssenkrupp Crankshaft Company, LLD
thyssenkrupp Dynamic Components
Towne Machine Tool Co., Inc.
Tridan International Inc.
Watchfire Signs, LLC
Vermilion Advantage I Regional Benchmark Survey
Learn more about the benefits of becoming a cluster member.
Learn more.
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2024 Employer Highlights
Employee Demographics
24% the average percentage of exempt employees in the participating workplaces.
3/17 employers have employees in a collective bargaining unit.
42% the average percentage of females in the participating workplaces.
16% of employees in the participating employers are people of color.
53% of participating employers have a workforce concentrated primarily in Vermilion County, IL.
Probationary Employees
58% of employers define probationary as newly hired or promoted employees who undergo a trial period before being confirmed as permanent employees.
35% of employers do not define probation.
Temporary Labor
30% of participating employers utilize temporary labor.
53% of temporary labor is “as needed” or “temp to hire.”
Working Hours
of employers have a 10 hour shift.
of employers have a 12 hour shift.
of employers have a first shift.
of employers have a second shift.
of employers have a third shift.
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RECRUITMENT RECRUITMENT
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Recruitment
13 out of 17 employers foresee retaining over 80% of their workforce in the next year.
Job roles experiencing the most severe labor shortages include Maintenance, Operations, Production, Engineering, Customer Service, Human Resources, Marketing, Quality, and Sales. These positions are in high demand as employers seek to fill critical roles within their organizations. The following graphs indicate the total number of positions each cluster anticipates necessary to fill in 2024.
Factorsimpactingrecruitment inthenext6months
Manufacturing
On average, Healthcare employers report 7 vacancies necessary to fill, in Banking 2, and in Manufacturing 38.
Time To Fill Vacancies
50 the average number of days to recruit exempt employees.
28 the average number of days to recruit non-exempt employees.
21 the average number of days to recruit union employees.
Recruitment Strategies: Technical Skills
How does your organization assess the technical skills and qualifications of potential candidates?
28% Evaluating academic qualifications and certifications relevant to the position.
25% Administering technical interviews conducted by subject matter experts.
19% Conducting technical assessments or skills-based tests.
14% Seeking recommendations or endorsements from previous employers or colleagues.
8% Administering technical interviews conducted by subject matter experts.
Recruiting and retaining highly skilled technical talent poses significant challenges for organizations, as highlighted by our survey findings. 34.5% of respondents identify fierce competition from other employers offering higher salaries and superior benefits as a major hurdle in attracting top-tier technical professionals. This underscores the importance of remaining competitive in compensation and benefits packages to secure top talent.
Additionally, 41.4% of respondents cite the limited availability of qualified candidates with specialized technical skills as a key barrier. This scarcity of skilled professionals underscores the need for strategic initiatives such as upskilling existing employees or expanding recruitment efforts to tap into broader talent pools. Overall, these findings underscore the multifaceted challenges organizations encounter in recruiting and retaining highly skilled technical talent in today's competitive market.
Recruitment Strategies: Relocation
Relocation assistance emerges as a significant recruitment strategy, with 42% of employers incorporating it into their hiring packages This support often includes financial assistance to alleviate the burden of moving expenses for new hires. By offering relocation assistance, organizations not only attract a broader pool of candidates but also facilitate the transition for individuals relocating for employment opportunities. Such initiatives demonstrate a commitment to supporting employees through major life changes and contribute to a positive employer brand, enhancing overall recruitment efforts.
Offering support with moving expenses not only helps attract top talent but also demonstrates a commitment to facilitating a smooth transition for new hires.
In a market where skilled professionals have numerous options, providing relocation assistance can be a crucial factor in securing and retaining top talent.
Recruitment Strategies: Incentives
recruitment incentives does your organization
to attract candidates?
Offering sign-on bonuses has become a prevalent practice among employers seeking to entice top talent in today's competitive job market.
Sign on bonus requirements:
63% of employers require the employee remain employed for a minimum duration, such as six months or one year.
36% of employers require the employee successfully complete a probationary period or specified period of time.
Typical sign on bonus amount:
Recruitment Strategies: Engagement
Employee morale and engagement activities:
Hosting social events or celebrations, such as holiday parties or milestone anniversaries.
Implementing employee recognition programs or awards.
Providing opportunities for professional development and training
Implementing open-door policies for transparent communication and accessibility to leadership.
Conducting regular employee feedback surveys and town hall meetings.
Encouraging work-life balance initiatives, such as wellness programs or mindfulness activities
Offering flexible work arrangements, such as telecommuting or flexible hours.
Offering perks or benefits such as free meals, gym memberships, or onsite amenities.
Organizing team-building events or retreats
All surveyed employers engage in annual morale and engagement activities, reflecting a universal commitment to fostering a positive work environment and enhancing employee satisfaction. These initiatives encompass various strategies aimed at promoting team cohesion and well-being, underscoring their significance in driving productivity and retention.
of employers engage in some kind of employee morale / engagement activities annually.
Turnover
Turnover remains a critical concern for organizations, with the average annual turnover among survey participants standing at 27% in 2023. Interestingly, despite widespread concerns about higher voluntary turnover, labor shortages, and talent acquisition challenges, a majority of employers, comprising 68%, report no significant increase in these issues compared to previous years.
total turnover As a Percent
Delving deeper into the root causes of turnover, the survey sought to identify factors contributing to employee attrition. Notably, 33% of employers attribute higher voluntary turnover to employee entitlement or "grass-is-greener" syndrome, highlighting the impact of shifting employee attitudes on retention efforts.
Additionally, compensation emerges as a significant factor, with 16% of employers citing pay-related issues such as competitiveness, pay equity problems, and compression as contributing factors
More optimistically, a majority of employers, representing 56%, express a lack of concern regarding "quiet quitting," emphasizing a focus on delineating clear job roles and expectations rather than expecting employees to exceed them.
Remote Work
Amidst ongoing debates sparked by news coverage surrounding remote work and the implementation of return-to-office mandates, the landscape of workplace dynamics continues to evolve. In our survey, we sought to gauge organizations' experiences with employee resistance or reluctance to transition back to inperson work environments.
A notable minority of organizations, comprising 6%, reported encountering resistance from employees, with some indicating that the impact was significant enough to prompt considerations for policy adjustments.
Conversely, a larger proportion, representing 19%, reported no such resistance, signaling a smoother transition for employees back to in-person work settings. Additionally, 6% of organizations highlighted the potential benefits of hybrid office models in mitigating attrition rates and enhancing employee engagement.
These findings underscore the diverse array of experiences and perspectives surrounding the return-to-office transition and the role of hybrid work arrangements in shaping the future of workplace dynamics.
/ 10 of employers surveyed offer some form of work-from-home option to employees.
Monitor remote work using employee surveillance software
No, and we aren’t considering it 857%
85.7%
Yes, but only for certain employees we suspect of shirking their work 143%
57% of employers report that remote work is not impacting how they compete for talent.
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COMPENSATION COMPENSATION
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Compensation
Compensation stands out as the second most influentia recruitment decisions, underscoring its pivotal role in at retaining top talent. Striking the right balance is crucial essential, yet overpayment may lead to detrimental long consequences, such as pay compression and inequities workforce.
Incorporating regional benchmark data emerges as a cr ensuring market competitiveness in compensation plan leveraging insights specific to their geographic area, org tailor their compensation frameworks to reflect local eco industry standards, and talent market dynamics. This ta not only fosters a deeper understanding of regional pay also enables organizations to adapt their compensation dynamically, staying ahead of the curve in attracting an talent within their locale.
Pay Increases and Incentives
Tied to Performance
Incentives
In 2023, organizations employed a variety of bonuses and incentives to recognize and reward top performers. Notably, individual incentive bonuses (28.8%) emphasized individual contributions, while company performance bonuses (18.8%) recognized overall organizational achievements.
Additionally, hiring bonuses (8.3%) and employee referrals (16.7%) attracted talent, while discretionary bonuses (10.4%) rewarded exceptional performance flexibly.
Moreover, retention bonuses (6.3%), equity bonuses (6.3%), and profit sharing (8.3%) schemes bolstered personnel retention, showcasing a multifaceted incentive strategy.
Pay Increases
76% of surveyed employers are set to implement pay increases in 2024, with 30% already boosting their salary budgets from 2023. Key drivers include heightened labor competition and evolving compensation philosophies.
Moreover, 70% of employers provide annual salary increases, underscoring a proactive approach to compensation management. Conversely, only 11% opt for ad hoc adjustments based on immediate needs, highlighting differing approaches to addressing evolving workforce demands.
Top reasons for pay increases for exempt and non-exempt are below.
Shift Premiums and PRN Staff
Shift Premiums
Among the surveyed employers, 7 out of 17 offer shift premiums to their off-shift employees. These premiums range from $1.00 per hour to $2.00 and 3% to 5% of the base pay, reflecting a variety of approaches to incentivizing non-traditional work hours. Shift premiums serve as a valuable tool for employers to acknowledge and compensate employees for their flexibility and dedication to working outside of standard business hours.
Pro Re Nata Staff
The inquiry into Pro Re Nata (PRN) staff by the cluster members yielded limited data due to the participation of only three healthcare employers. With just one out of the three employers reporting the utilization of PRN staff, comprehensive data on their schedules, premiums, and compensation was not attainable Despite the restricted scope, this highlights the potential significance of PRN staff within healthcare organizations, warranting further investigation and attention in future inquiries.
DoyouhavePRN (prorenata)Staff?
Inflation
41% of employers are addressing the impact of inflation by raising wages for all employees.
24% of employers are addressing the impact of inflation by raising wages for lower-wage employees only.
Areyouofferingcreativeinflation solutionslikebonuses,stipends,or allowances?
The survey delved into various aspects related to inflation's impact on wages and compensation strategies. Employers were queried on whether they adjusted base pay to mitigate the effects of inflation and retain employees. 65%
A majority of employers, constituting 65%, are actively responding to inflationary pressures by augmenting base pay as a strategy to retain their workforce.
The inquiry examined if organizations implemented innovative solutions such as bonuses, stipends, or allowances to address inflationary pressures.
Furthermore, employers were asked about their approach to pay increases in response to minimum wage hikes in regions where they operate, as well as how recent increases regarding the minimum wage influenced their compensation strategies.
59% of employers say minimum wage increases have not impacted their compensation strategy because they pay above minimum wage.
Pay Transparency
In 2023, pay transparency took center stage as numerous states and metropolitan areas either enacted or proposed legislation mandating the disclosure of pay ranges in job postings. The Amendment to the Illinois Equal Pay Act, signed into law by Governor J.B. Pritzker on August 11, 2023, marked a significant step forward, requiring employers with 15 or more employees to include pay ranges in job advertisements starting January 1, 2025.
This shift reflects a growing demand for transparency in compensation practices, with implications for organizations nationwide. Presently, only 41% of organizations include pay ranges in job postings, and among them, 18% do so solely in compliance with legal requirements. The prevailing trend underscores the importance of embracing pay transparency as a best practice, particularly in light of the increasing prevalence of remote work and rising expectations among job seekers regarding published pay information.
Hasrecentlegislationdrivenyour organizationtochangecompensation practices?
When do you first share the organization’s pay range for a job with candidates?
In the job posting, regardless of whether it is required by law.
During the first interview.
In the job posting, but only when it is required by law.
We don’t have pay ranges
Pay Equity
Pay equity is rapidly emerging as a fundamental tenet of compensation management. The pursuit of pay equity serves as a critical precursor to the broader adoption of pay transparency initiatives.
Looking ahead, we anticipate a resurgence of focus on pay equity, driven by the growing recognition of its integral role in employee retention and fostering fair and equitable workplaces.
Our survey findings indicate that nearly 59% of organizations regard pay equity as either a current or planned initiative. This represents a significant commitment, underscoring the ongoing evolution towards more equitable compensation practices across the region.
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BENEFITS BENEFITS
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Benefits
Employee benefits play a crucial role in attracting and retaining talent, with organizations continually refining their offerings to stay competitive. In 2023, we observed a growing emphasis on employee wellbeing and work-life balance, reflected in increased provisions for mental health or wellness programs, paid sabbaticals, and extended family leave.
Furthermore, emerging trends include support for student loan repayments, financial/debt services, travel benefits, and the adoption of the four-day workweek.
These benefits cater to the evolving needs of employees, addressing burnout concerns and promoting overall wellbeing in the workplace.
Benefits: Employee Time Off Practices
Observed Holidays
The following is summary of observed holidays amongst the surveyed employers:
New Year’s Day
Martin Luther King, Jr. Day
Presidents’ Day
Good Friday
Easter
Easter Monday
Employee’s Birthday
Memorial Day
Juneteenth
Independence Day
Labor Day
Columbus Day
Veteran’s Day
Thanksgiving
Day after Thanksgiving
Christmas Eve
Christmas Day
New Year’s Even
Floating Holiday
Employee time off practices encompass a diverse range of policies and structures tailored to meet both organizational needs and employee preferences. From traditional systems allocating specific days for holidays and time off to more flexible pooled systems, employers are navigating various approaches to accommodate their workforce.
These practices reflect a balance between operational requirements and employee wellbeing, with the aim of fostering a healthy work-life balance and maintaining productivity.
As organizations strive to optimize leave practices, they must consider factors such as cultural norms, industry standards, and individual preferences to create policies that effectively support both organizational objectives and employee satisfaction.
Benefits: Pooled Time Off Practices
How does your organization organize your pooled time off?
3/4
Employers limit the amount of vacation time that employees may accumulate
50%
Employers limit the amount of sick time that employees may accumulate.
In our survey, we found that 4 out of the participating employers have adopted a pooled system for paid time off, providing employees with a lump sum of leave on specific anniversary milestones. This departure from traditional accrual methods reflects a growing recognition of the importance of flexibility and autonomy in managing time off, while also streamlining administrative processes for employers.
A majority of companies, 75%, have implemented the pooled leave system for over a decade, indicating its long-standing popularity and effectiveness. When employees leave, 75% of the time, the company opts to cash out unused leave, with only one employer forfeiting this benefit. This widespread adoption is primarily driven by the system's ease of administration, offering streamlined processes for both employers and employees.
Each line represents the specific policy of the 4 participating employers.
Benefits: Traditional Time Off Practices
In contrast to the pooled leave system, a majority of employers, 13 out of 16, adhere to traditional leave practices. Among these employers, 10 out of 16 opt to cash out vacation time upon separation, providing departing employees with compensation for any unused leave. Additionally, most employees, 12 out of 16 do not differentiate between sick time and vacation time, offering a single pool of leave for employees to use at their discretion. However, of the five employers that do offer separate sick time, the number of days provided varies, ranging from 3 to 12 days.
Furthermore, employers typically allow employees to use traditional leave for various purposes, including bereavement, Family and Medical Leave Act (FMLA), and personal reasons. This flexibility allows employees to manage their time off effectively, balancing work and personal commitments.
Benefits: Executive Benefits
In the realm of executive benefits, 50% of employers offer specialized perks tailored to a select group of executives. These benefits, often categorized as noncash compensation, go beyond standard benefit packages provided to other employees. Designed to attract and retain top talent in leadership positions, executive benefits may include perks such as supplemental retirement plans, executive health programs, company cars, or membership to exclusive clubs or organizations.
Additional Executive Benefits
50% of employers offer executive benefits
By offering these additional incentives, organizations aim to reward and incentivize top executives while aligning their compensation with the company's strategic goals and performance objectives. Of the employers that offer Executive Benefits, they offer the following:
Benefits: Medical Insurance
of employers offer a Section 125 (tax advantage) program.
Medical insurance, a staple employee benefit, is both widespread and costly for employers. Recognizing the financial strain it poses, employers are implementing diverse strategies to curb the relentless rise in medical insurance expenses. These tactics range from adjusting premium contributions to exploring innovative solutions aimed at containing costs while ensuring comprehensive coverage for employees.
Type of health plans offered:
Cafeteria FSA HRA
Benefits: Strategies for Reducing Medical Expenses
Among the measures implemented in the past year, the top responses include increasing employee contributions to premiums, with 50% of employers opting for this approach.
Additionally, 36% of organizations have introduced health promotion and wellness programs to proactively address healthcare costs and enhance employee well-being. Other cost-saving measures tied for third place, including adjustments to medical co-payments, coinsurance, deductible amounts, and prescription drug formularies.
Moreover, 71% of employers offer an opt-out provision for medical coverage, with the majority providing automatic incentives for employees who choose to opt out. These strategies underscore employers' proactive efforts to manage healthcare expenses while prioritizing employee health and financial well-being.
of employers raised employee contributions to offset
of employers implemented a wellness program to offset benefit expenses.
Benefits: Eligibility
Eligibility for benefits varies widely among organizations and can impact financial decisions. For retired employees, the provision of health insurance post-retirement is not universal, with 47% of employers opting not to offer this benefit.
Additionally, eligibility timeframes for active employees vary, ranging from immediate eligibility upon hire to waiting periods such as the first of the month following their start date, 30 days, or 60 days.
These variations underscore the importance of carefully evaluating eligibility criteria, as they can have substantial financial implications for organizations while also affecting employee satisfaction and retention.
eligibilityforretireesfor healthcarebenefits
Eligible at the successful completion of 90 days
Eligible on the first of the month following 60 days.
Eligible on the first of the month following 30 days.
on the first day of employment.
Benefits: Medical Plan Details
Primary Medical Plan: Comparison
When it comes to medical plans, the majority of employers (68%) offer Preferred Provider Organization (PPO) plans as their primary option, providing employees with flexibility in choosing healthcare providers. Meanwhile, 19% of employers opt for High Deductible Health Plans (HDHP), which typically offer lower premiums and higher deductibles. Interestingly, 12% of employers do not offer any medical plan to their employees.
Additionally, a significant portion of plans (36%) are self-insured, where the employer assumes the financial risk for providing healthcare benefits to its employees. This approach allows employers greater control over plan design and cost management, potentially resulting in cost savings and tailored benefits for employees.
Benefits: Medical Plan Details
Medical Plan: Comparison
What are the deductibles and out-of-pocket maximums for this plan?
Benefits: Medical Plan Details
Primary Medical Plan: Comparison
Benefits: Medical Plan Details
Primary Medical Plan: Comparison
Employee monthly premiums for PPO plans vary significantly, with rates ranging from $47.50 to $609.27 for employee-only coverage and from $198.86 to $1736.42 for employee plus family coverage. These premiums represent a critical component of the benefits package, as health insurance is one of the most competitive benefits under an employer's control.
However, it's important to note that health insurance is also a major expense for employers Striking this balance ensures that employees have access to affordable healthcare while also managing costs effectively for the organization.
Benefits: Medical Plan Details
Secondary Medical Plan: Comparison
What are the deductibles and out-of-pocket maximums for this plan?
*One of the 9 employers with a secondary plan did not offer their out-of-pocket maximums.
Benefits: Medical Plan Details
Secondary Medical Plan: Comparison
Benefits:
Dental Plan Details
Primary Dental Plan: Comparison
Typeofdentalcoverage
Dental insurance is an essential component of comprehensive employee benefits packages, providing coverage for preventive and restorative dental care services. In our survey, we found that a majority (80%) of employers offer dental insurance as part of their benefits offerings, recognizing the importance of oral health in overall well-being.
Dental insurance typically covers a range of services, including routine cleanings, fillings, and even more extensive procedures such as root canals and crowns. With dental health linked to overall health, employers understand the significance of providing access to affordable dental care for their employees and their families.
Dental Demographics
72% average % of eligible employees participating in the offered dental plan.
80% of plans are NOT self-insured
Benefits: Dental Plan Details
Primary Dental Plan: Comparison
Benefits: Vision Plan Details
Primary Vision Plan: Comparison
Vision insurance is a vital aspect of employee benefits packages, with 94% of employers recognizing its importance and offering coverage to their employees. This insurance typically provides access to eye care services, including routine eye exams, prescription eyewear, and even discounts on corrective procedures such as LASIK surgery. By including vision insurance in their benefits offerings, employers demonstrate their commitment to supporting their employees' overall health and well-being. How often is this benefit allowed?
Benefits: Life / Disability Summary
Primary Vision Plan: Comparison
Disability and life insurance are integral components of employee benefits packages, providing financial protection and peace of mind for employees and their families. In our survey, we found that 100% of employers offer disability and life insurance coverage to their employees, highlighting the importance of safeguarding against unforeseen circumstances.
Disability insurance provides income replacement in the event of a disabling injury or illness, ensuring employees can maintain their financial stability during difficult times. Similarly, life insurance offers financial security to employees' loved ones in the event of their death, helping to cover expenses and provide support.
These insurance offerings reflect employers' commitment to supporting their employees' well-being and financial security, contributing to a comprehensive benefits package that attracts and retains top talent.
Benefits: Short-Term Disability
Short-term disability insurance is a crucial component of employee benefits packages, providing financial protection for employees who are temporarily unable to work due to illness, injury, or childbirth.
With short-term disability coverage, employees receive a portion of their income for a limited period, typically ranging from a few weeks to several months, allowing them to focus on their recovery without worrying about lost wages.
This insurance not only benefits employees by providing financial stability during challenging times but also supports employers by helping to retain valuable talent and maintain productivity levels.
Benefits: Long-Term Disability
Short-term disability insurance provides vital financial protection for employees facing temporary inability to work due to illness, injury, or childbirth. This coverage typically offers a portion of employees' income for a limited period, ranging from a few weeks to several months, ensuring financial stability during recovery.
Similarly, long-term disability (LTD) insurance is a crucial aspect of employee benefits packages, offering continued income replacement for employees who are unable to work for an extended period due to a disabling injury or illness. Most companies offer LTD coverage, providing employees with peace of mind and financial security in the event of long-term disability. Eligibility for LTD benefits varies, with coverage typically starting after a waiting period of one to 60 months, depending on the employer's policy.
Together, short-term and long-term disability insurance form a comprehensive safety net, ensuring employees are supported financially throughout periods of temporary or permanent disability.
Benefits: Retirement Plans
Retirement benefits are a cornerstone of employee compensation packages, providing long-term financial security and peace of mind for employees as they plan for the future. In our survey, we found that retirement plans come in various forms, with 53% of plans utilizing graded vesting and 46% offering immediate vesting, allowing employees to access employer contributions right away. Additionally, 11 out of 13 employers offer matching programs, ranging from 2% to 7%, to incentivize employee savings and maximize retirement savings potential.
Matching Benefit Offered
100% of the first 3% 50% of the second 4% up to 7%
25% of the first 5% of the employee's 401(k) compensation deferral
automatic 2% and 100% up to 6%
100% for the first 3% Then 50% for the next 2%
100% of the first 3% deferred, and 50% of the 4th and 5th percent deferred.
25% on first 4% of contributions, 100% from 5-7%
Furthermore, a significant number of plans provide additional features to enhance flexibility including participant-directed investment which enable employees to tailor their investment portfolios according to their own personal risk tolerance and goals Other plans offer loans, automatic enrollment, hardship withdrawals, and service withdrawals.
These features demonstrate the diversity of retirement plans available to employees and the importance of tailoring these benefits to meet individual financial needs and goals. Let's explore the details of retirement benefits and their impact on employee financial wellness.
Types of employer contributions
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PERSONNEL PERSONNEL DEVELOPMENT DEVELOPMENT
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Personnel Development
Pre-EmploymentTesting
56%
25%
Of employers have a structured process for identifying and developing potential successors for key roles within the organization.
Of employers have a structured program for cross- training employees in multiple roles/ functions
Personnel development is a critical aspect of organizational success, encompassing various strategies and practices aimed at nurturing and advancing the skills, competencies, and career growth of employees.
In this section of the survey, we delve into several key areas of personnel development, including pre-employment drug and physical testing, hiring strategies focusing on skill and competency, career advancement through career ladders, promotions, and succession planning, as well as initiatives such as cross-training, apprenticeships, internships, and workforce training.
These practices play a vital role in building a skilled and resilient workforce, ensuring employees are equipped with the necessary tools and opportunities to thrive in their roles and contribute effectively to organizational goals.
Let's explore the diverse approaches to personnel development and their impact on organizational performance and employee satisfaction.
Personnel Development: Pre-Employment Testing
Pre-Employment testing is a crucial step in the hiring process, allowing employers to assess candidates' suitability for roles and ensure they possess the necessary skills and competencies.
These diverse testing methods enable employers to make informed hiring decisions, selecting candidates who not only possess the requisite technical skills, but also demonstrate the right behavioral attributes and cognitive abilities for success in their roles.
Pre-employment Skills Testing
Atwhat
Technical Skills
Cognitive Ability
Behavioral Assessment
Job Knowledge
Situational Judgment
Among survey respondents, various types of pre-employment testing are practiced, including technical skill assessments, cognitive skill evaluations, and job knowledge assessments Behavioral assessments and situational judgment tests are used to evaluate candidates' behavioral traits and decision-making abilities.
The hiring process often involves assessing candidates' technical skills through various strategies. According to survey findings, the three most prevalent methods for evaluating technical skills include conducting technical interviews with subject matter experts (34%), reviewing candidates' portfolios or work samples (19%), and seeking endorsements or recommendations from previous employers or colleagues (23%). Additionally, skills assessment or coding challenges are administered by 11% of employers to gauge candidates' proficiency in specific technical areas. These strategies enable employers to thoroughly evaluate candidates' technical capabilities and make informed hiring decisions that align with organizational needs.
Personnel Development: Pre-employment Testing
Hire for Skill
Employers utilize various strategies to ensure they hire candidates with the right skills for the job. In this section, we explore the practice of hiring for skill, where candidates are assessed based on their proficiency levels in specific areas. According to survey findings, 50% of employers prioritize hiring candidates with intermediate skills, while 12.5% seek individuals with advanced proficiency. Additionally, nearly 30% of employers are looking for candidates with entry-level proficiency but with an understanding of technical concepts.
These strategies allow employers to match candidates' skill levels with the demands of the job, ensuring they have the necessary expertise to excel in their roles. Let's delve into the details of hiring for skill and its implications for workforce development.
Strategies for Assessing Technical Skills during Hiring Process:
Skilled Positions in High Demand:
Personnel Development: Pre-Employment Testing
In the realm of personnel development, hiring for competency is a crucial strategy for identifying candidates who possess the necessary behaviors and attributes to succeed in a role. This approach focuses on assessing candidates' competencies or behavioral traits relevant to job performance. According to survey findings, 63% of employers utilize behavior-based interviews, where candidates are asked to provide examples of past behaviors or experiences to gauge their suitability for the role. Additionally, 15% of these employers utilize competency-based tests, which evaluate candidates' responses to work-related scenarios to assess their competency levels.
Most Common Competencies
These strategies enable employers to identify candidates who not only have the right skills but also possess the behavioral traits required to excel in their roles. Let's explore the importance of hiring for competency and its impact on organizational success.
Personnel Development: Pre-Employment Testing
Drug Screening
Employers choose to use pre-employment drug screening as a proactive measure to ensure workplace safety, productivity, and regulatory compliance. By screening job candidates for drug use before hiring, employers can identify potential substance abuse issues that may impact job performance, reliability, and safety. Additionally, drug screening helps to mitigate risks associated with workplace accidents, injuries, and liability, as well as reduce absenteeism, turnover, and potential legal consequences. Ultimately, pre-employment drug screening allows employers to maintain a drug-free work environment and safeguard the well-being of their employees and the organization as a whole.
When asked how they balance ensuring a safe and drug-free work environment with respecting employees' rights to legally use marijuana outside of work hours, employers report that they choose to strictly enforce drug policies. This approach is aimed at maintaining workplace safety, productivity, and compliance with regulatory requirements, while also protecting the organization from potential risks associated with drug use, even if it occurs outside of work hours. By consistently enforcing drug policies, employers seek to create a clear expectation of behavior and maintain a drugfree work environment for the well-being of all employees.
DoyoutestforMarijuana?
Most employers exclude candidates that test positive for marijuana on a pre-employment drug screen.
These employers should be aware of Bill SB2321, RIGHT TO PRIVACYDRUG TEST, currently with the Senate in the Illinois General Assembly which proposes to amends the Right to Privacy in the Workplace Act. Specifically, it states “an employer may not refuse to hire an individual or discipline an employee because results of an individual's drug test indicate the presence of THC on the part of that individual...”
Personnel Development: Career Ladders
How does your organization communicate career ladders or progression paths to employees?
33% Through regular performance reviews and development discussions with managers.
40% Providing access to career development resources, such as training programs or mentorship opportunities.
7% Including information about career ladders in employee handbooks or HR materials.
20% Utilizing online platforms or intranet portals to share information about career advancement opportunities.
In the realm of personnel development, career ladders provide a structured framework for employees to advance within their organizations. According to survey findings, 43% of employers have formal career ladders in place, offering a range of development opportunities such as training, mentorship, networking, job rotation, and tuition reimbursement. These career ladders provide employees with clear pathways for progression, allowing them to acquire new skills, gain valuable experience, and pursue their career goals within the organization.
Moreover, career ladders promote a culture of continuous learning and professional growth within the organization, which resonates with young professionals who are often seeking dynamic and challenging work environments. Knowing that they have opportunities to advance their careers and develop their skills over time can increase their motivation to join and remain with the organization.
Personnel Development: Promotions
Internal promotions and promoting from within are integral aspects of talent management strategies for many organizations This practice involves identifying and developing existing employees for advancement opportunities within the company rather than hiring externally. Internal promotions not only recognize and reward employees for their contributions but also foster a sense of loyalty and commitment among the workforce
Creating fairness in the internal bid process is essential for maintaining employee morale and fostering a culture of trust and transparency within the organization. Employers employ various strategies to ensure fairness and equity in the promotion process. One of the most cited strategies is establishing clear promotion criteria and communicating them to employees. Additionally, ensuring that promotion decisions are based on objective assessments of performance and potential is crucial. By using standardized evaluation methods and metrics, employers can make fair and unbiased decisions, free from subjective biases or favoritism. Furthermore, providing feedback and developmental opportunities to employees who are not selected for promotion is another important strategy. Offering constructive feedback and guidance to employees helps them understand areas for improvement and provides them with the tools and support needed to grow and develop professionally.
This fosters a culture of continuous learning and improvement and demonstrates the organization's commitment to the development of all its employees, regardless of promotion outcomes.
Criteria for promotion
Demonstrated performance
Acquisition of new skills or competencies
Leadership potential
Demonstration of values
Contribution to team goals
Personnel Development: Succession Planning
Succession planning is a strategic process designed to ensure that organizations have a pipeline of qualified individuals ready to step into key roles when needed. It involves identifying and developing high-potential employees to fill critical positions within the organization, both in the short and long term. Succession planning aims to minimize disruption and maintain continuity in leadership, particularly during times of transition such as retirements, resignations, or unexpected departures.
By proactively grooming internal talent and preparing them for advancement, organizations can mitigate risks associated with leadership gaps and ensure the sustainability of their operations. Successful succession planning involves assessing current and future talent needs, identifying key positions and potential successors, providing targeted development opportunities, and regularly reviewing and updating the plan to adapt to changing circumstances.
Overall, effective succession planning is essential for building a resilient and agile workforce capable of driving organizational success in the long term.
Steps to Develop Potential Successors
Provide targeted training opportunities
Offer mentorship/ coaching programs
Provide stretch assignments or special projects
Facilitate job rotations or cross-functional training
Conduct regular feedback sessions
Identification methods for potential successors
Personnel Development: Cross Training
Cross-training offers several benefits to both employees and organizations. It increases flexibility and agility in adapting to changing business needs, improves employee morale and job satisfaction, enhances teamwork and collaboration, reduces reliance on individual employees, and boosts overall efficiency and productivity. By teaching employees to perform tasks outside their primary roles, organizations ensure that they can cover for one another during absences or vacancies, leading to smoother operations and better outcomes.
Despite the benefits of cross-training, only 25% of employers have implemented formal cross-training programs. This suggests an opportunity for organizations to enhance their workforce agility and efficiency through the adoption of structured cross-training initiatives.
Doesyourorganization cross-train?
Based on employees' expressed interest in gaining experience in other roles or departments.
18%
Through performance evaluations and assessments of employees' skills and competencies. By considering business needs and identifying areas where cross-training would be beneficial. Through nominations by managers or supervisors based on employees' potential for growth and development.
Personnel Development: Apprenticeships
Apprenticeships play a role in talent development, offering structured opportunities for individuals to gain hands-on experience and technical skills while earning a wage. By investing in apprenticeship programs, organizations can build a pipeline of skilled talent to meet current and future workforce needs, address skills gaps or shortages, and foster a culture of continuous learning and professional development
Additionally, apprenticeships enhance employee engagement and retention, strengthen community partnerships, and contribute to broader workforce development initiatives, ensuring a skilled and resilient workforce for the future.
DoyouofferApprenticeships
Apprenticeship Structure
50% By providing a combination of onthe-job training and classroom instruction or coursework.
33% Through mentorship or supervision by experienced professionals in the field
Personnel Development: Internships
Internships provide valuable opportunities for students and young professionals to gain practical experience and explore career paths within organizations. Structured internships typically involve providing hands-on experience through meaningful projects or assignments relevant to the interns' career interests, along with mentorship or supervision by experienced professionals to support their learning and development. Additionally, internships offer networking opportunities and exposure to various departments or functions within the organization, helping interns build connections and make informed career decisions
Personnel Development: Workforce Training
Workforce training is a strategic investment that organizations make in their employees' development to enhance both their soft and technical skills. By providing training opportunities, organizations demonstrate their commitment to employee growth and career advancement, which in turn can improve retention, boost employee morale, and increase productivity. Investing in workforce training enables employees to acquire new skills, stay relevant in their roles, and adapt to evolving job requirements, leading to greater job satisfaction and engagement.
Additionally, by equipping employees with necessary skills and knowledge, organizations can improve overall performance and efficiency, driving business success.
factorsinfluencing
What external workforce training programs does your organization currently provide?
Industry-specific certifications or credentials
Technical skills training relevant to job roles.
and management development
Professional development workshops or seminars.
Soft skills training (eg, communication, teamwork)
Diversity, equity, and inclusion (DEI) training.
training (eg, safety, ethics)
or customer service training.
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CLUSTER CLUSTER IINQUIRIES
NQUIRIES
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Cluster Inquiries: Reasonable Suspicion
Reasonable suspicion drug screening is a practice required by Illinois law, particularly in the context of legalized marijuana. Employers may conduct drug tests based on reasonable suspicion if they believe an employee is under the influence of drugs or alcohol while on the job or performing job-related duties. With the legalization of marijuana in Illinois, employers are increasingly utilizing reasonable suspicion drug screening to ensure workplace safety and compliance with state laws. This approach allows employers to address potential impairment issues promptly and take appropriate action to maintain a safe and productive work environment.
Circumstances requiring reasonable suspicion
After observing behaviors indicating impairment.
Following an incident involving safety concerns.
Of the employers who have specific protocols, they specify the following functions:
Smell alone is not a factor; there must be signs of impairment.
If an employee tests positive for cannabis/marijuana that exceeds 10 nanograms of THC in any bodily fluid or exceeds the limits contained in the Illinois Motor Vehicle Code, they will be presumed to be impaired by or under the influence of cannabis/marijuana in violation of this policy.
They have a zero-tolerance policy, so they generally offer a second chance agreement for employees testing positive for the first time.
Testing Protocol?
Cluster Inquiries: One Day Rest in Seven Act (ODRSA)
The One Day Rest in Seven Act (ODRSA) is an area of inquiry for Vermilion Advantage cluster members, requiring employers to provide employees with a minimum of 24 hours of rest within every consecutive 7-day period. The law permits employers to secure permits from the Department of Labor for employees to work on the 7th day, provided they have voluntarily agreed to work and are paid at the applicable overtime rate if working over forty hours per week.
Additionally, employees must be given a meal period of at least 20 minutes for every 7.5-hour shift, beginning no later than 5 hours after the start of the shift, with an additional 20-minute meal period if working a 12-hour shift or longer. Reasonable restroom breaks must also be provided.
Most employers were not affected by the changes in the ODRISA law; however, 2 out of 15 revised schedules, and 2 more provided additional break periods in response to the law.
Cluster Inquiries: Inclusive Facilities
Inclusive facilities, such as locker rooms, for transgender employees may foster a supportive and respectful workplace environment. Employers are increasingly recognizing the importance of implementing specific policies and guidelines to ensure that all employees feel comfortable and respected in shared facilities.
Organizations have adopted various measures such as providing gender-neutral or inclusive facilities, ensuring privacy and confidentiality, and offering education and training programs for staff on creating a supportive and inclusive environment for transgender individuals in shared spaces.
These initiatives aim to promote understanding, respect, and acceptance among all employees, regardless of gender identity. Additionally, organizations may have processes in place to address any concerns or objections from employees regarding transgender individuals using facilities that align with their gender identity, emphasizing the importance of respecting diversity and promoting inclusivity in the workplace.
How does your organization approach providing inclusive facilities?
Cluster Inquiries: COVID Protocol
The onset of of COVID-19 began in March 2020 but still cases continue to occur in our region, requiring employers to remain vigilant in their response efforts. While protocols have evolved since the beginning of the pandemic, with vaccination efforts and improved understanding of the virus, the risk of COVID-19 transmission persists. As such, employers are still faced with the task of managing cases of COVID-19 within their facilities, even though most (11 out of 15 respondents) no longer conduct regular testing for COVID-19 in their workplace.
This section explores how employers are adapting their strategies to address ongoing cases and ensure the health and safety of their workforce amidst the changing landscape of the pandemic.
Sixty percent of employers no longer have specific COVID policies in place, indicating a relaxation of measures that were once considered essential for workplace safety. Additionally, only 13% of employers regularly sanitize high-touch surfaces, suggesting a lack of ongoing preventive measures. This trend raises questions about the level of preparedness and the potential risks to employee health and safety within these workplaces.
TypeofCOVIDTesting?
WedonotconductCOVIDtestingprocedures. 846%
How does your organization handle COVID testing for employees returning to work?
RequireanegativeCOVIDtestresultbeforereturningtowork FollowCDCguidelinesforquarantineperiodswithouttesting.
Cluster Inquiries: Dress Code
Introducing dress codes for office personnel is crucial for setting expectations and maintaining a professional work environment. Many cluster members are interested in understanding how other organizations define appropriate business casual dress for the office. Clear guidelines on dress code help create consistency and professionalism among employees, enhance the company's image, and promote a sense of belonging and unity within the workplace. Additionally, establishing a dress code can also help prevent misunderstandings and ensure that employees understand what is expected of them in terms of attire.
How does your organization define business casual?
Dress shirts or sweaters paired with slacks
Collared shirts with khakis, chinos, or dress trousers
Dress/ skirt of appropriate length
Closed-toe shoes or dress shoes (e.g., loafers, flats, heels)
Jeans
Does your organization have a formal dress code policy specifically for office personnel?
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About Monyok Leadership
At Monyok Leadership, we believe in the inherent goodness of people and the power of purpose-driven choices. Whether through coaching, consulting, or teaching, our mission is to help individuals and businesses fulfill their purpose.
Our founder, Annie Monyok, built this business on the principles of integrity, joy, and continuous improvement. With a background in manufacturing and executive leadership, Annie specializes in working with front line, emerging, and senior leaders, as well as teams undergoing significant change or facing leadership challenges.
Trust the process with Monyok Leadership to gain awareness, choose action, and overcome challenges. Contact us today to discover how we can help you and your organization thrive.
To learn more, visit monyokleadership.com.
