2015 Outlook Survey
January 2015
Presented by: Insight Performance and The Smaller Business Association of New England
The Small Business and Human Resources 2015 Outlook Survey was conducted in the fourth quarter of 2014 to identify trends regarding business conditions, compensation and employee programs. This summary report is intended to offer key highlights of the findings.
To receive a free copy of the complete report, please contact Insight Performance at: hrsolved@insightperformance.com
Survey Respondents
- The majority of companies participating (61%) had 100 employees or fewer and 39% had more than 100 employees
- The industries most represented were Manufacturing (24%), High-Tech/Computers/Software (11%) and Professional Services (25%)
Executive Summary
This year’s results reinforce the trend toward business improvement, which we began to see last year. At that time, the results were labeled as “cautious optimism.. This year it is “solidify and profit.”
Companies are investing in their people as they continue to grow and improve. More focus is being put on compensation and incentive compensation, as companies feel more comfortable with their fiscal health. There was a marked increase in companies planning merit increases and incentive compensation in 2014 and those planned for 2015. Employers also continue to offer and increase fringe benefit offerings. This indicates an investment in employees and, as a result, companies should see an increase in morale and productivity, perpetuating the cycle of growth and stability.
Many companies are poised for continued growth and optimism in 2015. While we don’t see huge leaps in terms of compensation and benefits, steady growth seems to be the name of the game and the future looks bright.
Business Conditions Trends
Business outlook is optimistic, but cautious:
- 61% of respondents feel that business conditions improved compared to the prior year
- 77% expect 2015 to be even better than 2014
- The positive trend in business is evident by the increase in the following employee programs in 2014:
- 82% held company events, such as holiday parties (increase of 18% from 2014)
- 79% of companies hired new employees in 2014 (increase of 17% from 2014)
- 63% expect to maintain or enhance benefits in 2015 (no change from 2014)
- 65% plan for merit-based pay increases (increase of 15% from 2014)
- 63% plan to implement a bonus or incentive pay program (increase of 18% from 2014)
- 12% are worse off now than a year ago and 5% anticipate 2015 to be a more challenging year
Compensation Trends
Companies are investing in employees, but remain conservative:
- 80% of companies plan to give increases to base pay in 2015, while 24.6% plan to freeze salaries at current levels
- In terms of a base pay increase, 61% of respondents plan for a 0-3% increase, 22% plan for a 3.1%-4% increase and the remaining 17% plan for an increase of over 4%
- 30% of companies do not plan to pay out bonuses or incentive compensation in 2015, with 70% planning payouts based on company and/or company and individual performance guidelines
Employee Benefits
Employee Benefits:
- The majority of companies offer the following benefits to full-time employees:
- Medical Insurance
- Dental Insurance
- Long-Term and Short-Term Disability Insurance
- Life Insurance
- Most popular fringe benefits:
- Tuition Reimbursement
- Telecommuting
- Parental/Maternity Leave
- Wellness Programs
- In terms of employee programs companies offer, the following are the top three in each category:
- Offered to full and part-time employees:
- Company Outing
- Bereavement Leave
- Employee Assistance Programs
- Full-time employees only:
- Bereavement Leave
- Cell Phone/Smart Phone Reimbursement
- Tuition Reimbursement
- Do not offer:
- Housing and Relocation Assistance
- Transit and Parking Subsidy
- Charitable Contribution Match
- Offered to full and part-time employees:
