Managers' salaries rise, benefits tightencontinued from page 1 Also, fewer retail businesses are paying the full cost of health insurance for their managers in 2002 than they were two years ago, a reflection of sharply-rising medical premiums. Those are among the first findings in the latest Michigan Retailers Association statewide survey of retail employee salaries, wages and benefits. The survey was conducted in June for MRA by Anderson Economic Group of Lansing and Mitchell Research of East Lansing. Results for the full range of employees were still being analyzed at press time. The 561 MRA members who participated in the survey will receive a free copy of the final report when it becomes available in late September. Other members may purchase the report from MRA for $75; non-members for $125. The survey is a followup to MRA’s landmark 2000 survey. It was designed to help owners gauge if they are in step with other retailers when making critical decisions about employee compensation, according to Bruce Johnson, of Gazelle Sports in Kalamazoo. Johnson chaired the committee of MRA board members who helped Anderson officials design the survey. The data for store managers show their average salary before commissions or bonuses rose to $31,110 in 2002 from $29,800 in 2000, a 4.4-percent increase. They also show that while 71 percent of retailers offer at least some health care benefits to their managers, the percentage providing fully paid health care benefits declined from 46 percent in 2000 to 41 percent in 2002. “Some erosion of health care benefits is not surprising,
given the fact that businesses, especially small retailers, have been
hit hard by consecutive years of double-digit premium increases,”
said MRA’s James P. Hallan, president and chief operating officer.
Retailers in northern Michigan (49 percent) and the Greater Detroit area (47 percent) were most likely to pay 100 percent of their managers’ health coverage. Retailers in southwest Michigan (35 percent) were least likely to pay 100 percent of coverage. Store managers in Greater Detroit were most likely to receive at least some employer-paid coverage. Only 23 percent of retailers in that region did not provide any health care benefits. That contrasted with the Lansing area, where 38 percent of retailers did not offer any health benefit. Although respondents were not asked to identify themselves, they did provide some demographic information. Fifty-four percent of respondents reported gross annual sales of less than $500,000, 35 percent registered sales between $500,000 and $2 million and 11 percent rang up sales above $2 million. The survey and final report cover salaries, wages, commissions and bonuses, health insurance, dental insurance, 401(k), vacation days, sick days and merchandise discounts for a wide range of retail employees. The categories of employees include: store managers, assistant managers, full-time salesperson, part-time salesperson, clerical, buyer and delivery. |