Employee Compensation and
Benefit Trends

*Training Costs

*A nation-wide survey conducted by the American Society for Training and Development showed that training expenditures increased in 1997. The average annual training expenditure per employee was $649, or 1.8% of payroll. Larger companies participated in the survey (average size was 5000 employees).

Variable Compensation

Variable compensation plans continue to expand. Profit sharing plans are now offered by approximately 40% of companies, up from less than 35% last year. Also, the number of incentive plan participants have increased.

401(k) plans

The number of 401(k) plans offering daily valuations increased sharply. Daily valuations allow participants to monitor and change their fund balances on a daily basis. Now approximately 60% of plans offer daily valuations.

Maximum company matching contributions and employee participation are up, to over 2% and approximately 75%, respectively.

Dental

Companies have raised the annual maximum dental benefit to a median of $1500.

Orthodontia

The lifetime maximum orthodontic benefit has also risen in the past year, to approximately $1500.

Vision Care

A few more companies are offering vision care benefits to their employees. Now about 80% of companies offer a plan.

Employee Assistance Plans (EAP)

EAP's continue to grow in popularity. Now almost 75% of companies offer a plan. EAP's provide basic counseling services to employees and family members.

Sick Leave

Sick leave benefits are down slightly. Most companies now offer 8 days of sick leave per year.

Stock Options

Several consulting firms have reported that high tech companies are being more selective in offering stock options, largely in response to pressure from institutional investors. One consulting firm reported that 2.7% of outstanding stock was used for stock option grants this year, compared with 4.5% last year. This translates into fewer employees receiving stock option grants.