Washington Employment Growth – Things are Different Here

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

1997 1999 2001 2003 2005 2007

Employment Growth

WashingtonUS

COLA vs. Labor Market

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

*0.0

2.0

4.0

6.0

8.0

10.0

12.0

Seattle CPI versus Labor Market

Seattle CPI-U (COLA) Pay Increases (Market)

Total Salary Budget – Puget Sound

2009 Projections 2008 ActualNon-exempt

Exempt Executive Non-exempt

Exempt Executive

WorldatWork 3.5% 4.0% 4.0% 3.7% 3.8% 3.9%

CompData 3.6% 3.7% 3.6% 3.4% 3.6% 3.5%

Milliman 3.7% 3.6% 3.9% 3.8% 3.8% 3.9%

Research – What Employees Want

Rank Top-Performing Employees

Employees Employers

1 Nature of work (46%) Nature of work (41%) Employer reputation (37%)

2 Base pay (28%) Base pay (33%) Company culture (35%)

3 Health care benefits (22%) Employer reputation (29%)

Base pay (34%)

4 Job security (20%) Health care benefits (26%)

Career development opptys (25%)

5 Employer reputation (19%) Retirement benefits (19%)

Job security (23%) Nature of work (29%)

Watson Wyatt Global Strategic Rewards Report 2007/2008

Reasons to Join

Research – What Employees Want

Base pay Incent pay oppty

Career dev opptys

Work/life balance

Stress levels

Trust/conf in sr mgmt

0%

10%

20%

30%

40%

50%

60%

70%

80%

Employee satisfaction with…

Ees report active communicationEes report less communicationAll employees

from Watson Wyatt Strategic Rewards Re-port 2007/2008

Overall

Women

Men

0%

5%

10%

15%

20%

25%

30%

Number of Employees Hired in Last 3 Years, % Who Where Influenced by Flexible Work

Arrangements to Join Company

Source: Bristol-Myers Squibb Work-Life Survey

Flexible Work Arrangements Offered

Companies by Size

All Companies

Up to 100

101 to 1,000

Over 1,000

Flexible Work Hours

90% 95% 85% 95%

Telecommuting 88% 91% 90% 82%

Part-time Professional Ees

64% 50% 65% 77%

Compressed Work Weeks

29% 14% 29% 45%

Job Sharing 11% 5% 6% 27%

Culpepper survey of IT and biotech firms 1/2008

Percentages add to more than 100% because companies may have more than one option.

Productivity of Employees in Flex Work Programs

Percent of Companies Rating (Compared to Regular Schedule Ees)

Better About the Same

Worse

Flexible Work Hours 30% 70% 0%

Telecommuting 25% 69% 6%

Part-time Professional Ees

19% 81% 0%

Compressed Work Weeks

7% 93% 0%

Job Sharing 14% 86% 0%

Culpepper survey of IT and biotech firms 1/2008

Questions??

Thank you!

Contact information:Catherine Dovey, CCP, SPHRPrincipalCompensation Works LLC206-306-0299cdovey@compensationworks.com