Thobe Group Finds Annual Merit Increases in Technology Sector Differing 20% Between What's on Paper and What's Really Needed

Apr 19, 2001, 01:00 ET from Thobe Group, Inc.

    DALLAS, April 19 /PRNewswire/ -- Thobe Group, Inc., a leading human
 resources management consulting firm specializing in compensation issues for
 the communication technologies industry, announced today that reported annual
 merit increases may be significantly understated by as much as 20 percent
 because of discrepancies between budgeted amounts and what many companies are
 actually paying to retain top technology talent, according to the Thobe Group
 2001 Merit Budget Update.
     "When we asked in our survey, 'What is your 2001 merit budget?' our
 participants answered precisely that question," said Deborah J. Thobe,
 president of Thobe Group.  "But then we called each participant back and asked
 'How much do you predict salaries moving in 2001?' and 'How much are you
 spending to stay competitive this year?' because what's budgeted and what's
 being spent are two different matters.  The secret is knowing where to look to
 find the answers."   The Thobe Group projects that 2001 average merit
 increases for communication technologies firms including telecommunications,
 Internet and other related companies are 5.3%.
     According to the Thobe Group findings, many companies have salary
 administration policies that constrain what a manager can do to accommodate
 market movement, so many managers circumvent these constraints by giving
 employees a promotion, although the promotion is frequently in title only --
 the job responsibilities remain the same.  Managers also offer special
 retention bonuses, lump cash awards and other unique gifts to meet actual full
 market value merit increases.
     "This circumvention eventually impacts market data reporting since what's
 incorporated are dollar values for a higher-level job that really reflect what
 they're paying for a lower level job," Thobe said.  Thobe added that several
 communication technology companies specifically requested documented numbers
 that substantiated this phenomenon, and the Thobe Group 2001 Merit Budget
 Update was the only available source.
     Based in Dallas, Thobe Group, Inc. (http://www.thobe.com) specializes in
 compensation program design and implementation consulting support and conducts
 a broad range of compensation surveys regarded as the premiere data source for
 the telecommunications and Internet industries.
 
 

SOURCE Thobe Group, Inc.
    DALLAS, April 19 /PRNewswire/ -- Thobe Group, Inc., a leading human
 resources management consulting firm specializing in compensation issues for
 the communication technologies industry, announced today that reported annual
 merit increases may be significantly understated by as much as 20 percent
 because of discrepancies between budgeted amounts and what many companies are
 actually paying to retain top technology talent, according to the Thobe Group
 2001 Merit Budget Update.
     "When we asked in our survey, 'What is your 2001 merit budget?' our
 participants answered precisely that question," said Deborah J. Thobe,
 president of Thobe Group.  "But then we called each participant back and asked
 'How much do you predict salaries moving in 2001?' and 'How much are you
 spending to stay competitive this year?' because what's budgeted and what's
 being spent are two different matters.  The secret is knowing where to look to
 find the answers."   The Thobe Group projects that 2001 average merit
 increases for communication technologies firms including telecommunications,
 Internet and other related companies are 5.3%.
     According to the Thobe Group findings, many companies have salary
 administration policies that constrain what a manager can do to accommodate
 market movement, so many managers circumvent these constraints by giving
 employees a promotion, although the promotion is frequently in title only --
 the job responsibilities remain the same.  Managers also offer special
 retention bonuses, lump cash awards and other unique gifts to meet actual full
 market value merit increases.
     "This circumvention eventually impacts market data reporting since what's
 incorporated are dollar values for a higher-level job that really reflect what
 they're paying for a lower level job," Thobe said.  Thobe added that several
 communication technology companies specifically requested documented numbers
 that substantiated this phenomenon, and the Thobe Group 2001 Merit Budget
 Update was the only available source.
     Based in Dallas, Thobe Group, Inc. (http://www.thobe.com) specializes in
 compensation program design and implementation consulting support and conducts
 a broad range of compensation surveys regarded as the premiere data source for
 the telecommunications and Internet industries.
 
 SOURCE  Thobe Group, Inc.