ASE’s 2021 Pay Administration Survey Highlights Pay Practices for Michigan Employers - American Society of Employers - Jason Rowe

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ASE’s 2021 Pay Administration Survey Highlights Pay Practices for Michigan Employers


ASE recently published the results to its Pay Administration Survey. Survey results are broken into five categories and are based on three employer sizes and two industry types. Over 110 Michigan employers participated in the 2021 edition. Most respondents (83%) have an employment size of 500 employees or less, with nearly 60% being a part of the manufacturing sector and over 40% working in the combined services sector. A little more than half of the respondents are Automotive Suppliers (54%).

The survey covers a variety of topics in pay administration, remote work pay practices, shift premiums, overtime, and on-call practices. Below are highlights from the 2021 Pay Administrative Survey.

Survey Highlights:

  • Only approximately one third of Michigan employers consider some of their staff to be fully remote.
  • One quarter of organizations provide their remote workers with a home office stipend and/or reimbursement for essential business expenses.
  • Employers primarily determine the pay for their fully remote staff based on the business location or headquarters (41%), followed by the local labor market of the remote worker (31%), with 20% using the national median/average.
  • Formal compensation structures continue to lose favor with employers. The majority (56%) of Michigan employers do not have a formal base pay structure. This is up from 44% in 2017 and 10% in 2013.
  • 6 out of 10 organizations with a formal structure are adjusting the structure every 12 months. This is a significantly higher number of employers (45%) than those who modified their structures every 12 months in 2013. Most employers reported in all employee groups that their compensation philosophy is to stay even with the labor market, compared to leading or lagging behind the market.
  • Almost all employee groups use market pricing as the basis of their compensation program. As reported in 2017, the Production Union employee group’s compensation program is based on a step system.
  • Like previous editions, equal numbers of employers offer shift premiums to employees working on second and third shifts.

o   The average Production Union employee would receive an additional $0.28 an hour for working the second shift. Production Non-Union employees receive over four times the premium paid to their union counterparts, with an average shift premium of $1.14 an hour.

o   Average premiums paid to Production Union and Non-Union third shift workers do not differ as drastically when compared to second shift premiums. The average Production Union worker receives $0.40 an hour and the average Production Non-Union worker receives $0.85 an hour for working on the third shift.

  • For all employee groups, an overwhelming majority of most organizations do not provide overtime beyond what is required by law.
  • As reported in previous editions of this survey, most organizations do not guarantee any reporting pay.  79% of organizations do not guarantee pay for reporting, compared with 65% in 2017. Furthermore, 82% do not guarantee a set amount of pay for employees that are called in, compared with 56% in 2017.

It’s vital for employers to provide competitive wages as they struggle to find and retain employees.  This data is crucial to knowing what other Michigan employers are offering.

2021 Pay Administration Survey Access – ASE members are able to download the survey results from their ASE Member Dashboard.  Non-Members can purchase for $625.  Request to purchase here.


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