2005 HAY BENEFITS VALUE REPORT · PDF file2005 _ HAY BENEFITS _ VALUE REPORT ... The...

2005 _____________________________________________________________________________

HAY BENEFITS _____________________________________________________________________________

VALUE REPORT _____________________________________________________________________________

ABC Company Vs

Selected Comparator Group

Hay Benefits Value Report 2005 PROPRIETARY

Table of Contents

I. Benefits Value Comparisons ........................................................................................................................................ 1

Explanation and Use ....................................................................................................................................................... 1

Determination of Benefits Values .................................................................................................................................... 1

The "Common Cost" Approach........................................................................................................................................ 1

Effect of Employee Contributions .................................................................................................................................... 3

Effect of Employee Salaries on Values............................................................................................................................ 3

Benefits Value Charts...................................................................................................................................................... 4

Chart EP — Your Organization vs. Selected Organizations, Employer-Paid Benefit Value

Chart TB — Your Organization vs. Selected Organizations, Total Benefit Design Value

List of Participants of Selected Organizations ................................................................................................................. 6

II. Summary Results .......................................................................................................................................................... 7

Table 1 —"Average Value" Employer-Paid and Total Benefits Value Comparison ........................................................ 7

List of Participants by Industry Classification................................................................................................................... 9


1

I. Benefits Value Comparisons Explanation and Use

Benefits value comparisons are presented in chart series EP and TB. The "EP" and "TB" designations reflect, respectively, the employer-paid benefit values and total benefit design values displayed on the charts. The former is obtained by reducing the total design value of each benefit by the proportion financed by employee contributions.

The chart lines show the range of practices in the group for specified compensation levels. In addition to 90th and 10th percentiles, average, and median, each chart displays first quartile (Q1) and third quartile (Q3) results that separate the lowest 25% and highest 25% from the middle 50% of practices.

The charts and overlays contained in the pocket of this report enable you to ascertain the competitive position of your benefits program among those of the survey groups. Summary sheets indicating the actual values from which the overlays were produced are also included. The overlays are based on your individual benefit plans and on the assumption that you have employees at all pay levels. Any pay level that does not apply should be disregarded.

It should be noted that the salary levels shown represent whatever compensation is credited for coverage under earnings-related benefits and are not necessarily either base salary or total cash (base plus bonus). Essentially, all participants are treated equally in terms of pay levels, so that a pure comparison of benefits value is achieved.

The charts may be used to compare the value of your benefits package to other employers and to judge the internal equity of the benefits provided at different salary levels. For example, an employer's benefits package may be competitive (falling in the upper 50% of practices) at some levels, but less so (falling in the lower 50% of practices) at other levels.

Determination of Benefits Values Benefits values are based on the average cost of providing the benefits to employees in a typical mid- to large size U.S. company.

For plans offering optional amounts of coverage, it is assumed that all employees participate and choose the highest amount of coverage available. For flexible benefit plans, the most common or typical plan is valued.

All group insurance, sick leave, and retirement benefits are valued, as are capital accumulation plans (e.g., average employer contributions), holiday and vacation schedules, company subsidized cafeterias, child care, company contributions to flexible spending accounts, and tuition reimbursement plans. Values for the employer-paid portion of Social Security benefits, workers' compensation, and unemployment insurance are also included. Executive benefit plans (life insurance, disability, medical, retirement, vacation) are included. Executive perquisites (cars, clubs, etc.) are not valued, although they can be upon request.

The "Common Cost" Approach Benefit plans are complex and multi-faceted. Within the rather broad parameters of legal restrictions for a "qualified" benefit plan (i.e., a plan for which Federal tax deductions are permitted equal to employer contributions), the design alternatives are almost endless. Consequently, any comparison of several, almost invariably dissimilar, benefit plans is extremely difficult without a single common denominator or "yardstick" against which all plans can be measured.

Cost is clearly the most direct common denominator. All benefits cost somebody something, and if a dollar value could be assigned to each plan in a survey, almost limitless comparisons would be possible. However, actual cost is not the ideal comparative measure if the relative competitive value of various employers' plans is desired.


2

Although actual cost is clearly of vital concern to any employer, it has the following serious disadvantages that render it unsuitable for most benefit plan comparison studies.

♦ Actual costs are very often not available from participants. This can be true either because of the difficulty in collecting the desired figures, or because of a conscious decision not to share such data.

♦ Funding, financing, and accounting techniques differ widely among firms. Therefore, the actual cost of two identical benefits can be greatly different for a host of reasons in no way related to the benefit itself.

♦ The employee "mix" can vary substantially from one employer to another. That is, the distribution of employees by age, gender, service, salary level, and relative health is rarely similar from one firm to another. Therefore, even if the same benefit and the same financing method were used, the actual cost could, and probably would, be different.

♦ A firm's bargaining power and skill as a benefits buyer is yet another variable making actual cost unreliable as a tool for measuring relative value of benefits. A poor plan in one environment can cost more than a superior plan in another.

♦ Lastly, actual cost rarely relates accurately to the perception of benefits held by a firm's own employees. Employees rarely know or, sadly enough, rarely care how much benefits actually cost their employer, but at the same time they are becoming more aware of what benefits are available. Key features are compared with friends (and sometimes prospective employers) and rough value judgments are made, but relative actual costs are neither compared nor understood by the vast majority of employees.

For all these reasons, Hay does not use actual cost in studies comparing benefits values, but has developed a technique of calculating "common costs." This permits the assignment of dollar values, a common yardstick, without the problems associated with using actual costs.

The key to the Hay "common cost" approach is the use of a single, realistic method for evaluating all plans being valued. All plans in the study are, in effect, "purchased" for the same group of employees from the same source using the same financing technique. The "employees" used are a typical mix of employees as might be found in a large industrial environment. The "providers" are a hypothetical group of insurance companies and/or trustees who are "selling" coverage using the same average group rates, actuarial assumptions, and experience ratings for all the plans in the study. The result is an actuarially derived "common cost" for each plan, expressed as a dollar value.

As an example of this approach, assume two employers have life insurance plans that provide a single death benefit and no other features. At a salary level of $20,000 per year, the comparison could be as follows:

Death Benefit

Employer Formula Amount Actual Cost/Month

A 1 x Pay $20,000 44¢ per $1,000 of Benefit

B 2 x Pay $40,000 22¢ per $1,000 of Benefit

On an actual cost basis and a "common cost" basis (using a rate of 33¢ per month per $1,000), the comparison would be:

Employer Actual Cost/year Actual Cost Per Month

A $105.60 (44¢ x 20 x 12) $ 79.20 (33¢ x 20 x 12)

B $105.60 (22¢ x 40 x 12) $158.40 (33¢ x 40 x 12)

Clearly, the actual cost distorts the relative value of the two plans showing them to be the same, whereas the "common cost" technique shows plan B to be "twice as good" as plan A — which it is, on the basis of either benefit level provided or perceived value to covered employees. Although this example is oversimplified and most plans involve many complex calculation steps, it does describe the "common cost" method of value comparison.


3

Effect of Employee Contributions On a perceived basis to employees, plans that are contributory have a lesser value than those that are provided entirely at employer expense. For this reason, Hay has chosen to present all its "common cost" comparisons in two ways.

In these instances, one set of comparisons is made on a "total benefit design value" basis where the existence of employee contributions is not considered. These provide a pure look at comparative design, but not at contributions or, probably, perceived value.

The other set of comparisons is made on an "employer-provided" basis where the total value of any plan is discounted to reflect the relationship of required employee contributions to total cost. For cost shared plans, the percentage of employee contribution is deducted from the value of the plan. Fully employee-paid benefits are given a minimum value of 5% of the total benefit design value (some value remains due to group purchasing power, the absence of any requirement for a physical, and similar things). For a fully employer-paid plan, there is no discount.

Effect of Employee Salaries on Values For salaried employees, most benefit plans are a function of salary (e.g., a 1 x pay life insurance benefit). This is true because the intent of the benefit is to replace some desired portion of the employee's income, or standard of living, in the event of death, disability, or retirement. For this reason, Hay feels it is not sufficient to compare benefits at a single earnings level, even if such level represents a weighted average salary for the firm.

A quick example will illustrate this point using two hypothetical life insurance plans:

Actual Benefits at Salary of:

Employer Benefit Formula $20,000 $40,000

A 1 x Pay $20,000 $40,000

B Flat $20,000 $20,000 $20,000

Were a comparison made at only the $20,000 salary level, these two plans would appear equal, which they are at that level. However, a comparison at both salary levels quickly reveals the comparative weakness in the design of plan B relative to the self-adjusting formula of plan A. This difference is, of course, obvious in this oversimplified example. In more complex, integrated plans, such differences are often not so obvious, but can be equally critical from the standpoint of internal equity.

For those plans where salary is not an issue, like medical or dental, single values are used. However, for any benefit plan where salary-related coverage exists, the Hay methodology will display relative value at multiple salary levels to provide a comparison of both external competitiveness and internal equity.

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6

List of Participants of Selected Organizations A.G. Edwards & Sons, Inc. AAA Mid-Atlantic

Bank of New York Company, Inc., The Bank One Columbus

Care First Blue Cross Blue Shield Caxton Associates, LLC

Dain Rauscher Dallas Central Appraisal District

Empire Blue Cross and Blue Shield of New York City Energy Insurance Mutual, Ltd.

Farm Bureau Insurance (Indiana) Farm Family Insurance

GEICO German American Bancorp

Hancock Bank

Independence Blue Cross

Jefferson-Pilot Life Insurance

Knights of Columbus

Lancer Insurance Company Latin American Argribusiness Development Corporation

M.I.T. Medical Department Marshall & Ilsley

National Western Life New York Board of Trade

Ohio Casualty Insurance Company Old National Bancorp Oxford Health Plans

Pacific Life Insurance Company Pan American Life Insurance

Reliance Standard Life Insurance Company RLI Royal & Sun Alliance

Salem Five Cents Savings Bank Sally Mae

T. Rowe Price Group, Inc. TD Waterhouse Group, Inc. Telhio Credit Union Texas Guaranteed Student Loan Corporation

U.S. Bank United Healthcare Corporation

Velocity Credit Union

Waypoint Bank Westcom Credit Union


7

II. Summary Results This Hay Benefits Value Report volume of the 2005 Hay Benefits Report (HBR) provides a quantitative summary of the benefit practices of 1,003 survey participants. It enables you to easily evaluate your competitive position against other participants.

♦ Employer-Paid Benefit Value charts show salary equivalent values for the employer-paid portion of the benefits program. The salary equivalent value represents the additional, often "hidden," compensation an employer pays for group benefits and time off with pay.

♦ Total Benefit Design Value charts display salary equivalent values for the total worth of the benefit program, reflecting both employer- and employee-paid portions.

The Hay "common cost" proprietary actuarial model measures benefit value by taking into account all the significant elements of plan design and coverage levels. With this approach, the common cost value attributed to each benefit is based on assessments of these plan design elements as well as standard actuarial assumptions, rather than actual dollar amount paid to provide the benefits. Comparisons of a wide range of plans can thereby be made that focus on the value of plan design without the introduction of a bias from company buying power, size, location, or demographic profile.

Annual updates to the Hay cash equivalent model may cause some variance in benefits value from previous years. These updates are made to reflect changes in Section 415 and Social Security limits and health care insurance costs, and to ensure that the "model" continues to represent the approximate cost of providing each benefit program to an average exempt employee population in a major organization.

"Average Value" Employer-Paid Benefits Value Comparison

Table 1, below, shows the average values at various salary levels broken out by the three major industry types.

Benefit values at the lower salary levels are proportionally greater than those at higher levels because health care benefits are not related to pay, and Social Security benefit costs are a larger percentage of pay below $87,900.

In observing the differences in benefits values among various participant groups, it should be kept in mind that this analysis relates benefits to constant salary levels rather than to constant job content levels. In other words, the benefit programs are looked at in relation to pay, rather than in relation to job level and the amount of pay given at particular job levels. As a result, participants with liberal benefits in relation to pay — regardless of benefits, salary, or total remuneration policy according to job levels — will have higher values.


8

As the following table indicates, the sectors studied require similar levels of employee contributions. Contribution requirements in general have the most impact in the health care and survivor benefit areas. Required contributions to pension plans, while significant for any given participant, are uncommon and have little effect on the results of the groups as a whole. The employer-paid percentages of total plan value are greater at higher salary levels. This occurs because some cost shared benefits (primarily health care) are unrelated to salary or relate to salary only up to certain limits and, therefore, have more impact at the lower salary levels.

Table 1

Average Values ($000)

Industrial Organizations Financial Organizations

Salary Level

Employer-

Paid Value

Total BenefitDesignValue

%

Employer-

Paid

Employer-

Paid Value


%

Employer- Paid

$150,000 $49.8 $64.7 77% $54.7 $69.4 79% $100,000 $36.8 $48.2 76% $40.2 $51.5 78% $ 70,000 $28.5 $37.7 76% $30.9 $40.0 77% $ 50,000 $22.7 $30.3 75% $24.6 $32.1 77% $ 30,000 $17.1 $23.1 74% $18.3 $24.3 75% $ 20,000 $14.3 $19.4 73% $15.1 $20.5 74%

Average Values ($000)

Service Organizations Healthcare Organizations

Salary Level

Employer-

Paid Value


%

Employer-

Paid

Employer-

Paid Value


%

Employer-

Paid

$150,000 $54.0 $69.0 79% $49.4 $65.2 76% $100,000 $40.5 $51.9 78% $37.3 $49.2 76% $ 70,000 $30.0 $40.1 77% $29.1 $38.5 76% $ 50,000 $24.3 $32.6 77% $23.2 $30.9 75% $ 30,000 $18.4 $24.7 75% $17.5 $23.5 74% $ 20,000 $15.5 $20.8 74% $14.6 $19.8 74%

The employer-paid values shown throughout this section are higher than the actual employer costs shown in Section I of the Hay Benefits Prevalence Report. The primary reason for the difference is that the employer-paid values include values for paid time off — vacations, holidays, and salary continuance sick leave. Vacation and holiday values, calculated at one day's pay [1÷(5 days x 52 weeks)], generally amount to between 10.2% and 11.5% of pay. Salary continuance sick leave generally amounts to 2.5% to 2.7% of pay.

The other major reason is that the values are based on the employee's opportunity and assumes all employees take available coverage. The actual cost figures in Hay Benefits Prevalence Report reflect the fact that not all employees participate in the contributory plans — 401(k), health, life, and disability insurance. As a result, the cost figures are lower reflecting the reductions for some non-participation.


List of Participants by Industry Classification

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Industrials A.T. Cross Company Acco Brands Ace Hardware Adams Golf ADIA Information Technologies Advance Auto Parts Advanced Drainage Systems AES Corporation AFC Enterprises, Inc. AFG Industries, Inc. AGCO Corporation AGL Resources, Inc. Air Products & Chemicals Akzo Nobel, Inc. Alabama Electric Cooperative Alexander & Baldwin All Seasons Services Allied Domecq QSR Alside Altria Corporate Services, Inc. Amerada Hess American AGIP Company, Inc. American Crystal Sugar American Eagle Outfitters American Management Systems, Inc. American Seafoods International, LLC Amgen, Inc. Amsted Industries, Inc. Amuneal Manufacturing Corporation Andersons, The Ann Taylor Applebee's International Appleton Papers, Inc. Aramark Corporation Arch Wireless, Inc. Arrow International, Inc. Ashland Oil-Valvoline ATC Phoenix ATMI Materials, Ltd. Atmos Energy Corporation Auburn Gear, Inc. Austin Commercial, Inc. Auto Zone, Inc. Avaya Aventis Pasteur Aviall, Inc.

Banta Corporation Bausch & Lomb Bimbo Bakeries Binney & Smith BJ Services Blockbuster Entertainment Group BMW of North America Bob Evans Farms, Inc. Boddie-Noell Enterprises, Inc. Boral Industries Bourns, Inc. Bravo Development, Inc. Brinker International

Browning America Brunswick Corporation Buffets, Inc. Builder Homesite, Inc. Burger King Corporation Business Interiors Butler Manufacturing Company BWX Technologies–Nuclear

Equipment Division BWXT of Ohio BWXT Y-12, LLC

Cabot Corporation California Independent Systems

Operator Cambrex Corporation Capital Metropolitan Transportation

Authority Caribou Coffee Company, Inc. Carlson Restaurants Worldwide Cash America International Caterpillar CEC Entertainment, Inc. Charrette Corporation Chemical Lime Company Chep USA Chicago Pizza & Brewery, Inc. Chicago Transit Authority Chipotle Mexican Grill, Inc. CHS, Inc. Cingular Wireless CITGO Petroleum Corporation Citizen Watch Company CNH Global Coats North America Coca-Cola Enterprises, Inc. Cole National Corporation Colonial Pipeline Columbus Dispatch Comp USA Compass Group NAD Conair Group, The Consolidated Edison Company of

New York City Cooper Industries Copperweld Corporation Cox Enterprises Cracker Barrel Old Country Store CSK Auto, Inc. Custom Products of Litchfield, Inc. CVS Corporation Cytec Industries, Inc.

Dallas Morning News, The Daou Systems, Inc. Darden Restaurants, Inc. Dassault Falcon Jet Dave & Buster's, Inc. Dead River Deere & Company Delaware North Companies, Inc. Delta Technology, Inc.

Denny's Restaurants Des Moines Water Works Dobson Communications Donaldson Company, Inc. Donatos Pizzeria DSM Chemicals North America, Inc. Duke Energy

Eddie Bauer Eimo Americas Electric Reliability Council of Texas, Inc. Electronic Data Systems Elkem Metals ELTECH Systems Corporation Empire District Electric Company Essilor of America Explorer Pipeline Company

Famous Dave's of America Fazoli's Federated Department Stores, Inc. Finch, Pruyn, & Company, Inc. Florida Power & Light Fort Worth Transportation Authority Foster Poultry Farms Frank's Nursery & Crafts, Inc. Freudenberg Nonwovens Friendly Ice Cream Corporation Frisch's Restaurants, Inc. Frito-Lay

Galderma Laboratories, LP Gambrinus Company, Inc. Gap, Inc. General Shale Products Genuine Parts Company Glenayre Electronics, Inc. Golden Corral Corporation Gorton's Graham Packaging Company Great Lakes Chemical Corporation Great Plains Energy Gruner & Jahr USA Publishing

H.E. Butt Grocery Company H.J. Heinz Company H.S. Crocker Company Hallmark Cards Hard Rock Café Hartmarx Corporation Heidelberg USA, Inc. Helzberg Diamond Shops, Inc. Henkel Corporation Heraeus Tenevo, Inc. Hillenbrand Industries HMS Host Home Telephone Company, Inc. Honeywell FM&T Hosokawa Micron Power System Houlihan's Restaurant Group Hughes Network Systems, Inc.

IBM IHOP Corporation



10

IMCO Recycling, Inc. In-N-Out Burger Integris Metals Intermountain Power Service Ionics, Inc. ISO New England, Inc.

J C Penney Company, Inc. J. Crew Group, Inc. Jack in the Box, Inc. John H. Harland Company Joy Global, Inc. JPI

K & W Cafeterias KAO Corporation Keithley Instruments, Inc. Kellogg USA, Inc. Kennametal, Inc. Key Span Energy Kimberly-Clark Corporation Kmart Corporation Kohl's Department Stores Krispy Kreme Doughnut Corporation Krystal Company, The

La Madeleine de Corps, Inc. Leprino Foods Company Lexmark International, Inc. Lifeway Christian Resources Limited, The Little Caesar Enterprises, Inc. Loop, LLC Lord Corporation L'Oreal USA Lowe's Companies, Inc.

Maritrans Massachusetts Municipal Wholesale

Electric Company Mattel, Inc. Matthews International Corporation Mayflower Transit Mayne Pharma USA, Inc. McDermott International, Inc. McDonald's Corporation MDC Holdings, Inc. Memphis Light, Gas & Water Division Mentor Corporation Merichem Company Metromedia Restaurant Group–

Ponderosa Metromedia Restaurant Group–Steak

& Ale and Bennigan’s Metropolitan Nashville Airport

Authority Metropolitan St. Louis Sewer District Metropolitan Transportation Authority Metropolitan Tulsa Transit Authority Metropolitan Washington Airports

Authority Metso Minerals Industries, Inc. Midas International

Mid-Carolina Electric Cooperative Midland Cogeneration Venture Midwest ISO Minnkota Power Cooperative, Inc. Mission Research Corporation Mitsubishi International Corporation Moog, Inc. Motoman, Inc. Murphy Oil

Nashville Electric Service National Fuel Gas National Institute for Automotive

Service Excellence National Railway Labor Conference Navigation Technologies NetQo's, Inc. New Jersey Transit–Railroad New Times, Inc. Newark Electronics Nextel Nissan North America, Inc. Norfolk Southern Corporation North Texas Tollway Authority Northern Indiana Commuter

Transportation District Novartis Pharmaceuticals

Corporation NPC International–Pizza Hut NTN USA Corporation Nuclear Fuel Services NYISO–New York Independent

System Operator

O'Charley's, Inc. OFS Fitel O'Reilly Auto Parts Oriental Trading Company, Inc. Orthofix, Inc. Osteotech, Inc. O'Sullivan Industries, Inc. Owens & Minor

P.F. Chang's China Bistro Panda Restaurant Group Panera Bread Company PaPa Gino's, Inc. Papa John's International, Inc. Pasminco Zinc, Inc. Pathmark Stores, Inc. Payless Shoe Source Pella Corporation Pennfield Corporation Penske Truck Leasing Peoples Energy Pep Boys Perkins Restaurant and Bakery Philadelphia Gas Works Philips Consumer Electronics Piedmont Natural Gas Pier 1 Imports Pioneer Hi-Bred International, Inc. Pioneer Standard Electronics, Inc.

Pirelli Cable PJM Interconnection, LLC Playboy Enterprises, Inc. Plexus Corporation PNM People Services Port Authority Transit Corporation of

PA/NJ Price Brothers PSEG Public Service Company of North

Carolina Public Works Commission of

Fayetteville, NC Purdue Pharma, LP

R.D. Werner Company Rainbird Sprinkler Rare Hospitality International, Inc. Red Robin Gourmet Burgers Reebok International, Ltd. Rent-A-Center Resolution Performance Products, LLC Rheem Manufacturing Company (Air

Conditioning Division) Rhodia Inc. Rio Tinto Services, Inc. Roadway Corporation Robbins & Myers, Inc. Rock Bottom Restaurants, Inc. Rock Hill Telephone Company Roquette America, Inc. Ruby Tuesdays, Inc. Russell Corporation

Sage Telecom, Inc. SAIA, Inc. Saks, Inc. Samsung Austin Semiconductor Santee Cooper Sasol North America, Inc. Schwarz Pharma, Inc. Sears, Roebuck & Company Serono, Inc. Sharp Electronics Shaw Group, Inc., The Sherwin-Williams Company, The Shopko Stores Sicor, Inc. Siemens Energy & Automation, Inc. Sierra Southwest Solar Turbines, Inc. Solvay Pharmaceuticals South Carolina State Port Authority Southco Company Southeastern Pennsylvania

Transportation Authority Southern Company Southern Minnesota Municipal Power

Agency Southern Pride Catfish, LLC Spiegel, Inc. Stanadyne, Inc.



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Standex International Corporation Swarovski Consumer Goods, Ltd. Staples Steak n Shake Company Sterling Chemicals, Inc.Chemicals/Petroleum (continued) Subaru of America, Inc. Sun Chemical Corporation Sun Company, Inc. SunGard Data Systems, Inc. Super Stores Industries Super Valu, Inc.

T.D. Williamson Taco John's International Talbots Target Corporation Techneglas Tennessee Valley Authority Terex Mining Corporation Texas Petrochemicals Corporation Textron Aerospace Fasteners Timet Timken Titan America, LLC TJX Corporation Toll Brothers, Inc. Toro Company, The Totes Isotoner Corporation Toyota Material Handling USA, Inc. Toyota Motor Sales USA, Inc. Transcontinental CC3 Triarc Restaurant Group–Arby's Tyson Foods, Inc.

U.S. Oil Company, Inc. UCB, Inc. Unichema North America Union Pacific Railroad United McGill Corporation UNITIL UPM - Kymmene Company US Filter Envirex Utah Transit Authority (UTA)

Valley Services Valmont Industries, Inc. VarTec Telecom, Inc. Vicorp Restaurants, Inc. VVP America, Inc.

W.W. Grainger, Inc. Wacker Corporation Walgreen Company Wal-Mart Stores, Inc. Warner Chilcott Webcrafters, Inc. Wendy's International, Inc. Wilbur-Ellis Company William L. Bonnell Company, Inc. Williamson Printing Corporation Williams-Sonoma, Inc.

Womack Machine Supply

Yaskawa Electric America, Inc. York International Corporation YUM Brands, Inc.

Financials A.G. Edwards & Sons, Inc. AAA Mid-Atlantic Admiral Insurance Company Aegis Insurance Services, Inc. AIM Management Group, Inc. Allmerica Financial American Family Insurance Group American Fidelity Ameritas Life Insurance Corporation AmSouth Bancorporation Annuity Board of Southern Baptists APA Insurance Trust Archon Group, LP, The Arthur J. Gallagher & Company Assured Guaranty Austin Housing Authority Automobile Club of Southern CA AV-MED Health Plan AVP Management Services, Inc.

Bank of New York Company, Inc., The Bank One Columbus Baptist Foundation, TX Baring Asset Management Blue Cross and Blue Shield (Rochester

Region) Blue Cross and Blue Shield of

Baltimore, MD Blue Cross and Blue Shield of Florida Blue Cross and Blue Shield of Kansas

City, MO Blue Cross and Blue Shield of Michigan Blue Cross and Blue Shield of

Mississippi Blue Cross and Blue Shield of

Nebraska Blue Cross and Blue Shield of

Oklahoma Blue Cross and Blue Shield of Rhode

Island Blue Cross and Blue Shield of Vermont Blue Cross of Northeastern PA Blue Shield of California HMO

Brown & Brown, Inc.

Care First Blue Cross Blue Shield

Caxton Associates, LLC Central Bank Company Central Insurance Companies Centura Banks, Inc. Chicago Stock Exchange Childress Klein Properties CIGNA

Cincinnati Insurance Companies, The Citibank (South Dakota), N.A. Citizen's Business Bank CNA Insurance Company Colorado PERA Commerce Insurance Company Community First Bankshares, Inc. Continental Western Insurance

Company Corus Bank Country Insurance & Financial

Services Country Wide Credit Credit Union Service Corporation Criimi Mae Management, Inc. Cuna Mutual Insurance Society Cuna Mutual Life Insurance

Dain Rauscher Dallas Central Appraisal District Delta Dental Plan Downey Savings and Loan

Association, F.A. Empire Blue Cross and Blue Shield of

New York City Energy Insurance Mutual, Ltd. EquiServe, Inc. Erie Insurance Group Erste Bank New York Branch Farm Bureau Insurance (Indiana) Farm Family Insurance Farmers Insurance Group FBL Financial Services Federal Home Loan Bank of Dallas Federal Home Loan Bank of Des

Moines Federal Home Loan Bank of Pittsburgh Federal Reserve Bank of Atlanta Federal Reserve Bank of Boston Federal Reserve Bank of Dallas Federal Reserve Bank of Minneapolis Federal Reserve Bank of Richmond Federated Insurance Companies Federated Rural Electric Insurance

Corporation First Merit Corporation First National Bank First Niagara Financial Group FM Global Frankenmuth Insurance

GEICO German American Bancorp Glatfelter Insurance Group GMAC Insurance GMAC Mortgage Government Employees' Hospital

Association Guaranty Federal Bank–Dallas, TX Guide One Insurance

Hancock Bank Hays Group, Inc., The



12

Health Care Service Corporation Health Insurance Plan of Greater

New York Health Net, Inc. Household International Huntington Bancshares

Independence Blue Cross

Jefferson-Pilot Life Insurance

Knights of Columbus

Lancer Insurance Company Latin American Argribusiness

Development Corporation Legg Mason Wood Walker, Inc. Liberty Mutual Insurance Company Lincoln National Corporation Louisiana Workers' Compensation

Corporation

M.I.T. Medical Department Marshall & Ilsley Merchants Insurance Group Minnesota Life Insurance Company Missouri Employers' Mutual

Insurance Mutual of America Mutual of Omaha Insurance

National Western Life New York Board of Trade Nissan Motor Acceptance Northwestern Mutual Life Norwest Financial, Inc.

Ohio Casualty Insurance Company Old National Bancorp Oxford Health Plans

Pacific Life Insurance Company Pan American Life Insurance Penn National Insurance Physician's Plus Insurance

Corporation PPM Services, Inc. Principal Financial Group Progressive Companies Providence Mutual Fire Insurance

Company

Reliance Standard Life Insurance Company

RLI Royal & Sun Alliance

Salem Five Cents Savings Bank Sally Mae Sammons Enterprises, Inc. Security Benefit Group Security Mutual Life Insurance

Company of New York Sentry Insurance SHA, LLC DBA Firstcare Shelter Insurance

ShoreBank St. Joe Company, The State Farm Insurance Companies Susquehanna Bancshares, Inc.

T. Rowe Price Group, Inc. TD Waterhouse Group, Inc. Telhio Credit Union Texas Guaranteed Student Loan

Corporation Texas Medical Liability Trust TIAA-CREF TIB–The Independent Bankers Bank Tower Federal Credit Union Trammell Crow Company Trustmark Insurance Company

U.S. Bank United Healthcare Corporation

Velocity Credit Union

Waypoint Bank Westcom Credit Union William Blair & Company, LLC Woodmen of the World Life Workers' Compensation Fund

Health Care Advocate Health Care Alegent Health Allina Health System Appalachian Regional Healthcare, Inc. Ascension Health Atlanti Care Health System Aurora Health Care, Inc. Austin Radiological Association

BJC Health System Banner Health System Baptist St. Anthony's Health System Brim Healthcare, Inc. Brockton Hospital

CMC (Community Medical Centers) Capital Health System Caremark Rx, Inc. Catawba Valley Medical Center Catholic Health Initiatives Catholic Healthcare Partners Catholic Healthcare West Cedars-Sinai Medical Group Centene Corporation Centura Health Systems Chester County Hospital, The Chestnut Hill Hospital Children's Healthcare of Atlanta Children's Hospital Children's Physicians Clinic City of Hope National Medical Center Clarian Health Partners, Inc. Cleveland Clinic Health System Coffee Health Group

Columbia–St. Mary's Columbia/HCA Healthcare

Corporation Commonwealth Health Corporation Community Health Systems, Inc. Concord Hospital Condell Medical Center Connecticare, Inc. Cooper Health System, The

Danbury Health Systems, Inc. Deaconess Billings Clinic Doylestown Hospital Duke University Health System

Emory Clinic, The Evanston Hospital Corporation Exempla Healthcare

Fairview Hospital and Healthcare Services

FirstHealth of the Carolinas Fletcher Allen Health Care, Inc. Fox Chase Cancer Center Franciscan Health System Frankford Hospital

Geisinger Health System Genesis Health System Good Shepherd Health Systems Grady Health System Grand View Hospital Greenville Hospital System Group Health Cooperative Gwinnett Hospital System, Inc.

HCR Manor Care Harvard Pilgrim Health Care Harvard Vanguard Medical

Associates Health Care District of Palm Beach

County Health East Care System Health New England, Inc. Health Partners, MN Health Partners, PA Health Quest Heart Hospital of Austin Huntington Memorial Hospital

Immanuel St. Joseph's–Mayo Health System

Infirmary Health System, Inc. Inova Health System Intermountain Health Care, Inc.

Jackson Health Systems Johns Hopkins Health System

Kaiser Foundation Health Plan, Inc. Kelsey-Seybold Clinic, PA Kendal Corporation, The

Legacy Health System



13

Legacy Health System (Physicians)

MVP Health Plan Main Line Health, Inc. Marianjoy Medical Group Mayo Foundation McLaren Health Care Corporation MedCath, Inc. Medco Health Solutions, Inc. Medstar Health Memorial Health Services Memorial Health System of East

Texas Memorial Hermann Healthcare

System Memorial Medical Center System MeritCare Health System Methodist Hospital Methodist Hospital System, The Metropolitan Jewish Health System Mission Hospitals Mississippi Baptist Health Systems,

Inc. Montgomery Hospital Mountain States Health Alliance MultiCare Health System

NYU Hospitals Center Nebraska Medical Center, The Neighborhood Health Plan New York Presbyterian Healthcare

System North Mississippi Health Services, Inc. North Texas Healthcare Network Northern Arizona Healthcare Northside Hospital

Ohio Permanente Medical Group, Inc. Olathe Health System, Inc. Our Lady of the Lake Regional

Medical Center Owensboro Medical Health System

Parkland Health and Hospital System Penn State Hershey Medical Center Physician Practice Management Physician Practice Network Piedmont Medical Center Pinnacle Health System Pottstown Memorial Medical Center Premier, Inc. Presbyterian Healthcare Services Princeton Community Hospital Providence Health System Providence Health System– Oregon

Region

Rancocas Hospital Rush North Shore Medical Center

SSM Health Care Saint Luke's Health System Santa Cruz Medical Foundation Sarah Bush Lincoln Health Center

Sentara Health System Shands Healthcare Sharp HealthCare Sharp HealthCare (Physicians) Shriners Hospital for Children Sierra Health Services Sioux Valley Hospital Sisters of Charity of Leavenworth

Health System Southcoast Health System Southern New Hampshire Regional

Medical Center Southern Regional Health System Southwest Washington Medical

Center Southwestern Vermont Medical

Center Specialty Medical Group Central

California St. Agnes Health Care St. Cloud Hospital St. Joseph's Health System St. Joseph's Regional Medical

Center, Inc. St. Luke's Episcopal Health System Stanford Hospital & Clinics Suburban Hospital Summa Health System Sun Health Corporation Sutter Gould Medical Group Sutter Health Sutter Medical Group of the

Redwoods Sutter Medical Group West Sutter Medical Group, Inc. Sutter North Medical Group SwedishAmerican Health System

Corporation

Texas Health Resources Company Texas Scottish Rite Hospital for

Children Texoma Healthcare System Thomas Jefferson University TriHealth Trinity Mother Frances Health System Tufts Associated Health Plans, Inc.

UCLA Healthcare UCSF Medical Center UPMC Health System University of Texas Medical Branch at

Galveston

VCU Health System Valley Medical Center Vanguard Health Systems, Inc. Vytra Health Plans

W.A. Foote Memorial Hospital Wellspan Health William Beaumont Hospital

Corporation

Wyoming Valley Health Care System

Services

401K Company, The

AAA East Central AAA of Florida ABM Industries, Inc. Accor North America Agnes Scott College Alzheimer's Disease and Related

Disorders Association AMEC E&C Services American Association for the

Advancement of Science American Bar Association American Chemical Society American Chemical Society–

Chemical Abstract American College of Emergency

Physicians American College of Physicians–ASIM American Council of Life Insurers American Dietetic Association American Forest & Paper Association American Insurance Associations American Multi-Cinema, Inc. American Red Cross, National

Headquarters American Society of Mechanical

Engineers American Trucking Associations, Inc. America's Health Insurance America's Second Harvest Ames Laboratory Anser Arbitration Forums, Inc. Argonne National Laboratory Arizona Board of Regents ASHRAE, Inc. Associate Reformed Presbyterian

Church ATP Tour, Inc. Automatic Data Processing, Inc.

Baby Fold, The BARC Baylor College of Medicine Beaumont Foundation of America Bechtel BWXT Idaho, LLC Bechtel Nevada Board of Governors of the Federal

Reserve System Bon Appetit Boston Symphony Orchestra Brookhaven Science Associates, LLC

California Endowment, The CARE USA Carnegie Library of Pittsburgh



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Catholic Charities USA CGI Consulting Group, Inc. Chemical Manufacturers Association Chernoff Diamond & Company, LLC Child Care Group, The Christian Children's Fund Church World Service City of Appleton, WI City of Arlington, TX City of Austin, TX City of Bismarck, ND City of Bloomington, MN City of Carrollton, TX City of Colorado Springs, CO City of Dallas, TX City of Davenport, IA City of Fargo, ND City of Fayetteville, AR City of Fort Worth, TX City of Garland, TX City of Kenosha, WI City of Lakewood, CO City of Lincoln, NE City of Middletown, OH City of Naperville, IL City of Newark, NJ City of Philadelphia, PA City of Raleigh, NC City of Rapid City, SD City of Savannah, GA City of Sioux City, IA City of Sioux Falls, SD City of Troy, MI Cleveland Indians Baseball Company CNA Corporation, The College of American Pathologists College of the Holy Cross County of Champaign, IL County of Collin, TX County of Dane, WI County of DuPage, IL County of Ellis, TX County of Fort Bend, TX County of Hillsborough, FL Civil

Service County of Jackson Courthouse, MO County of Johnson, KS County of Miami-Dade, FL County of Milwaukee, WI County of Peoria, IL County of Schuylkill, PA County of Ulster, NY

Dallas Convention & Visitors Bureau Daymon Associates, Inc. Dayton & Montgomery County Public

Library Daytona Beach Community College Dial America Marketing, Inc. Diamond Cluster International Disabled American Veterans

Easter Seal of SEPA Education Assistance Foundation Educational Testing Service ElectriCities of North Carolina, Inc. Electronic Industries Alliance Elwyn, Inc. Embassy Suites Embry-Riddle Aeronautical University Equifax Ethical Culture Fieldston School Ewing Marion Kauffman Foundation

FANUC America Corporation Farm Credit Council Services, Inc. Federal Bureau of Investigation Federal Government FelCor Lodging Trust, Inc. Fermi National Accelerator

Laboratory Ford Foundation, The Four Seasons Hotel Franklin Institute, The Fulton County Schools, GA

Gallaudet University Gartner, Inc. Gaylord Entertainment GCA Services Group, Inc. Georgia Baptist Foundation Georgia Institute of Technology Girl Scouts of the USA Gordon, Thomas, Honeywell Graceland University Grain Elevator and Processing

Society (GEAPS) GTECH Corporation Guest Services

Habitat for Humanity International HDR Engineering Heat Transfer Research, Inc. Hershey Entertainment & Resorts

Company Hillsborough County Superior Court

I.C. System, Inc. Impel Management Services, LLC Indian Creek Foundation InfoEdge Technology, Inc. Institute for Supply Management InterContinental Hotels Group International Baccalaureate

Organization International Executive Service Corps

(IESC) International Reading Association

Jacob K. Javits Convention Center

Kansas City Royals Baseball Club Kellogg Foundation Kiwanis International Kramer, Levin, Naftalis & Frankel, LLP

Lady Bird Johnson Wildflower Center Lawrence Livermore Laboratories Lee Marketing Services Lexington Fayette Urban County

Government Lighthouse International LIMRA International Loyola College In Maryland, Inc. Lynn University

M & W Zander Man Power, Inc. Massachusetts Institute of

Technology–Lincoln Laboratory MedSynergies Metro Nashville Public Schools Metropolitan Development & Housing

Agency Metropolitan Museum of Art Metropolitan Water Reclamation

District of Greater Chicago Milton Hershey School MITRE Corporation Myrl & Roy's Paving, Inc.

National Association of Manufacturers National Audubon Society National Board of Medical Examiners National Exchange Carrier

Association National Food Processors Association National Futures Association National Multiple Sclerosis Society National Wildlife Federation Navigant Consulting, Inc. New Mexico State University New York Community Trust, The New York State Department of Civil

Service North Dakota Public Employees'

Retirement System

Office of the Commissioner of Baseball

Office of the Special Deputy Receiver Ohio Hospital Association Ohio State University, The Omni House Behavioral Health

System

Pacific Maritime Association Pittsburgh Ballet Theatre, Inc. Population Council Prevent Blindness America Princeton Family YMCA Professional Services Project Hope

Randstad North America Recreation Vehicle Industry

Association Regis Corporation Riverside Research Institute Rutgers University



15

Sioux Falls School District Society of Petroleum Engineers Sodexho Marriott Services Spellman College St. Thomas University Stark State College of Technology

State Auditor's Office, Austin, TX State Employees' Retirement System

of Illinois State of Colorado State of Connecticut State of Idaho State of Minnesota, Department of

Human Services State of Nebraska State of North Carolina Texas A & M University System, The Texas Department of Housing &

Community Affairs Texas Farm Bureau and Affiliated

Companies Texas Society of Certified Public

Accountants Township of Hillsborough, NJ Treasure Island Resort & Casino Trust for Public Land

UCP of Metro Dallas, Inc. Underwriters Laboratories, Inc. Unified Government of Wyandotte

County/KCK

United Jewish Communities United Way/Capital Area Universities Space Research

Association University Corporation for

Atmospheric Research University of Dayton University of Kentucky University of Maryland University of Michigan Health System University of Minnesota University of Mississippi University of Tennessee, The University of Wisconsin

Vanderbilt University Villanova University

Wackenhut Services Wackenhut Services–Nevada

Operations Warren County Employees'

Retirement Board Wayne State University Weston Solutions, Inc. Williams Scotsman, Inc. Workforce Safety & Insurance World Vision, Inc. Worldspan Wyndham International

YMCA Retirement Fund


About the Hay Group With offices in 12 U.S. cities and 38 countries, the Hay Group is one of the largest management consulting firms in the world. Our size, breadth, and more than 50 years of experience allow us to help you align your quality programs with your organizational and human resources management processes by: ♦ Supporting our consulting assignments with data. Hay maintains extensive databases on employee attitudes, corporate

culture, pay, and benefits. ♦ Focusing on your industry. Hay has established dedicated consulting practices in most major industries, such as

banking, consumer products, insurance, energy, health care, pharmaceuticals, and telecommunications. ♦ Implementing our recommendations. Hay does not just leave you with ideas. Hay also creates and — when called

upon — implements plans for action.

Hay North America has offices in the following cities:

Worldwide Headquarters Philadelphia The Wanamaker Building 100 Penn Square East Philadelphia, PA 19107-3388 (215) 861-2000

Canadian Corporate Headquarters Toronto Standard Life Centre 121 King Street West Suite 700 Toronto, Ontario M5H 3X7 (416) 868-1371

Atlanta (770) 901-5600 Boston (617) 425-4500 Calgary (403) 215-6730 Charlotte (NC) (704) 333-1591 Chicago (312) 228-1800

Dallas (469) 232-3800 Edmonton (780) 415-8021 Halifax (902) 491-4289 Kansas City, MO (816) 329-4900 Los Angeles (213) 629-3921

Mexico City (525) 523-2121 Montreal (514) 866-7831 New York Metro (201) 557-8400 Norwalk (203) 750-6200 Ottawa (613) 238-4785

Regina (306) 359-0181 San Francisco Metro (925) 945-8220 Vancouver (604) 682-4269 Washington, D.C. Metro (703) 841-3100

Hay has offices in the following cities outside North America:

Athens Auckland Bangkok Barcelona Berlin Birmingham Bogota Bratislava Brisbane Bristol Brussels Budapest Buenos Aires

Caracas Dubai Dublin Frankfurt Glasgow Helsinki Hong Kong Istanbul Jakarta Kuala Lampur Lille Lisbon London

Lyon Madrid Manchester Melbourne Milan Moscow Munchen Oslo Paris Prague Rome Santiago Sao Paulo

Shanghai Singapore Stockholm Strasbourg Sydney Tokyo Warsaw Wellington Windsor Zeist Zurich

Visit us at our Website: www.haygroup.com

2005 HAY BENEFITS VALUE REPORT · PDF file2005 _ HAY BENEFITS _ VALUE REPORT ... The...

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Transcript of 2005 HAY BENEFITS VALUE REPORT · PDF file2005 _ HAY BENEFITS _ VALUE REPORT ... The...

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Transcript of 2005 HAY BENEFITS VALUE REPORT · PDF file2005 _____ HAY BENEFITS _____ VALUE REPORT ... The...

2005 HAY BENEFITS VALUE REPORT · PDF file2005 _ HAY BENEFITS _ VALUE REPORT ... The...

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