Troy, MI – August 1, 2025 – --- ASE, one of the nation’s oldest and largest employer associations, has released its 2025 Pay Administration Survey, revealing key compensation trends across Michigan-based organizations. The report provides data on pay administration practices and policies, including base pay structures, compensation programs, and competitive positioning. It also reports on pay equity, remote work, shift premiums, overtime, call-in pay, and retention bonuses.

Highlights of the ASE 2025 Pay Administration Survey include:

• 38% of responding organizations do not have an existing formal wage or base pay structure.  The majority of respondents that have base pay structures typically adjust them every 12 months (64%).
• 75% of responding organizations report their competitive position for base salaries in the respective labor market is to stay even (i.e. match with the relevant labor market for all or most employees).
• 64% of respondents have few or no fully remote staff. Of these employees, the organization the pay rates are mostly determined based on the employee location or role (38%).
• The most common pay premium/differential offered by organizations is shift differentials (48%). Production (Hourly) employees are the most eligible for shift differentials (80%) and mostly receive overtime pay while on-call (38%).
• 48% of companies with over 500 employees report that mandatory overtime is used occasionally, whereas 64% of companies with 1-100 employees and 54% of companies with 101-500 employees do not require mandatory overtime.
• Regarding retention bonuses, data shows that larger companies are more likely to use retention bonuses. About half (45%) of companies with over 500 employees offer them, whereas only 17% of companies with 1-100 employees and 30% of companies with 101-500 employees offer them.

"Organizations are increasingly focusing on aligning with the market and maintaining flexibility in their compensation strategies. Although there is significant variation in formal pay structures and remote work policies, common trends include regular annual pay adjustments, shift differentials for hourly employees, and the strategic use of retention bonuses, particularly among larger companies. These trends highlight the evolving expectations of the workforce and the needs of businesses," said ASE President & CEO Mary E. Corrado.

Request a copy of the full survey report here.

Background information on the ASE 2025 Pay Administration Survey

196 organizations from across Michigan participated. Organizations with 100 employees or fewer made up 41.3% of the survey sample, while organizations with between 101-499 employees represented 36.2% of the sample. The remaining 22.4% of the sample came from organizations with more than 500 employees.  A variety of industries have been represented in the survey, with durable goods manufacturing (42.9%) leading the pack. Trades and services (21.9%) were the second-largest industry representation.