KnowledgeBank surveys technology company salaries, incentives and total cash compensation for key positions

Report also covers data on HR practices and flexible benefits

The findings show employer expenses continue to rise for compensation and benefits, but at a modest rate.

Mid-Atlantic Salary Survey Projects 2014 technology company salary adjustments will average slightly less than 3.0%

By Steven A. Rosenthal, Vice President, Compensation, KnowledgeBank

The summary report for the 2013-2014 KnowledgeBank Total Compensation Survey of Mid-Atlantic Technology Companies is now available.

The size of average actual salary adjustments decreased to 2.2% from last year’s 3.2% actual average, and continues well below the 4.2% average increase in 2008.  For 2014, survey participants projected an average salary adjustment rate of 2.9%.  This was the fifth year in a row that the actual average increase was less than the projected increase.

The survey is co-sponsored as a member service by regional technology councils and other membership-based organizations that serve the technology sector in Virginia, Maryland, the District of Columbia, West Virginia, Pennsylvania and New Jersey. KnowledgeBank, Inc., of Ashburn, Va., is a leading provider of human capital management, organizational effectiveness, human resource management and consulting services to the commercial, nonprofit and government sectors.

The survey collected data from 60 firms with total employment of 28,444 and incumbent pay data for 1,461 employees. The survey respondent median revenue was $6.0 million and the median staff size was 41 employees, and nearly 75% of the companies had annual revenue of less than $20 million, reflecting a comprehensive set of total compensation and human resource data for primarily privately-held small- to medium-sized firms.

“Overall survey participation this year remained at the same level as last, and we continue to receive feedback from  participants that the compensation and benefits data collected is unique, particularly for small to mid-size firms” said Steve Rosenthal, Vice President & Compensation Practice Leader for KnowledgeBank. “We  continue to enhance the survey each year, without fundamentally changing the core focus of providing critical pay data for technology jobs.”

Benchmark Job Information

The 2013-2014 summary report provides data on base salary, cash incentive, and total cash compensation for 44 key positions; with data provided for companies with revenue of less than $10 million, companies with revenue between $10 and $49 million, companies with revenue greater than $50 million, and in total.

The five most popular jobs benchmarked this year (and the average salary reported) were:

  1. Senior Software Developer/Engineer –  $98,00
  2. Software Developer/Engineer – $72,600
  3. Program/Project Manager – $104,800
  4. Senior Engineer – $111,400
  5. Technical Support Specialist. – $52,600

Executive Incentives

Executives are provided the opportunity for annual bonuses in 70% of the responding companies, 35% of the firms provide executives stock options, and 22% of the firms provide them with annual incentives. The number of companies providing short term incentives remained about the same as last year, while stock options grants increased and restricted stock granted decreased from last year. These and other short and long term incentive awards that are offered to employees appear in the survey by employee level.

Benefits and Flexible HR Policies

Nearly all  survey participants (98%) provide health care coverage for employees and/or families, and cost sharing between the employer and employee continues to shift to the employee. In 2013, employees contributed 20% of the total cost (vs. 18% in 2012) for single coverage (vs. 18% in 2012) and 38% of the total cost  for family coverage (vs. 36% in 2012).

Other common benefits provided to 80% or more of full-time employees include vision care, 401(k) retirement savings, dental care, and prescription drug coverage. Additional employee benefit plan practices are contained in the survey report.

The survey findings also revealed that responding companies embrace flexible human resource practices in a challenging marketplace to recruit and retain staff: 87% provide flexible work schedules, 85% encourage casual dress, 62% provide special recognition awards, and 60% provide telecommuting. The complete list of HR Practices is in the report.

In addition, this year’s survey reported on the continuing shift from a traditional leave package (separate vacation and sick time) to paid time off (PTO). Over 60% of the companies in the survey now offer PTO.  In addition the survey reports on health care plans, waiting periods, company paid holidays and wellness plans.

Included in the report is an article written by Shiv Krishnan, President of INDUS Corporation, a nationwide Federal IT Solutions firm, who discusses the outlook for the Mid-Atlantic technology sector in 2014.

A copy of the summary report is available for purchase at www.knowledgebank.us.com.

About KnowledgeBank

KnowledgeBank, based in Ashburn Virginia, is a leading provider of human capital management, organizational effectiveness and learning solutions to organizations in the commercial, nonprofit and government sectors. Our clients include small and emerging growth technology companies, middle-market and Fortune 500 firms, Federal agencies, state and local governments and nonprofit organizations. We specialize in services that cover the entire spectrum of human capital management and organizational effectiveness to include compensation and rewards systems, benefit program design and analysis, recruitment and selection, performance management, strategic planning, organizational and personnel assessment, change management and transformation, human resource (HR) management, training and employee development, executive and career coaching and mentoring, leadership development, workforce planning and survey design and administration.

KnowledgeBank was selected by Inc. magazine to its list of fastest growing companies in America in 2007 and 2008, and has been recognized by Washington SmartCEO Magazine as one of the fastest growing companies in the Greater Washington region from 2007 – 2009. In 2008, the United States Department of Agriculture’s Farm Service Agency honored KnowledgeBank with its Small Business Contractor of the Year Award.


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