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Buyers Guide Accelerate

2013 Golf Industry Compensation and Benefits Report - Executive Summary

2013 Compensation and Benefits ReportThe NGCOA and Industry Insights, Inc., an independent professional research and consulting firm, jointly developed a survey to collect compensation and benefit information from NGCOA members. In total, 696 facilities responded to the survey. A total of 29 job titles were included in the survey. Below is a summary of average total compensation by all responding facilities (private and public-access) in 2013.

While there are numerous factors that can affect the compensation of club staff, the summary looks to identify a few of them that appear to have a clear and direct relationship. There are three such factors - facility classification, gross revenue of the facility and number of golf holes available at the facility. Other factors - including type of facility, tax status and geographic region - most certainly affect club staff compensation; however, no clear and direct relationship could be found and/or insufficient sample sizes existed to analyze some of these variables.

Gross Revenue of Facility
Employee compensation also showed a direct relationship with size of facility. Larger facilities tended to pay more than smaller ones. For instance, Chief Staff Executives/General Managers at facilities with annual gross revenue of less than $2 million earn an average total compensation of $81,989. Those working at facilities with annual gross revenue over $7.5 million, however, earn an average total compensation nearly two-and-a-half times larger at $208,613.

Employee Benefits/Policies
The vast majority (80%) of responding facilities provided health insurance, down from 87% in 2010. The most popular types of plans offered were Preferred Provider Organizations (PPO), Traditional Indemnity and Health Maintenance Organizations (HMO) at 41%, 36% and 34%, respectively.

Responding facilities experienced an average increase of 12.2% during their most recent health care insurance renewal, slightly higher than the 11.3% reported in 2010. On average, health insurance expenses accounted for 4.3% of an organization’s operating budget.

The responding facilities reported paying $5,764 in healthcare premiums per staff member during the most recent fiscal year, an increase from $5,302 reported in 2010.

Nearly three-quarters of the respondents (71%) reported that they have begun planning for the new healthcare reform laws.

More than half (56%) of the responding facilities provide a retirement plan. Of those providing a retirement plan, 60% offer a 401(k) plan.

The vast majority of the responding facilities (94%) pay respective professional association dues on behalf of staff members.

Compensation Outlook
With the economy slowly recovering over the past two years, we looked to see if companies have started making any changes to the compensation and benefits offered to employees. Nearly two-thirds (63%) indicated that they provided pay increases to employees and nearly one-third (31%) reported adding staff in the past twelve months. Looking forward, more than half of the responding companies plan provide pay increases to employees (69%) and add additional staff (50%) in 2014. Over one-third plan on increasing travel, training and other employee-related expenses (36% each).

Salary Budgets Increase Slightly
Across all industries, salary budget increases in 2013 remained at nearly 3.0% in the U.S. Prior to 2009, salary budgets had been increasing about 4 percent annually. In 2014, companies are projecting salary budget increases of 3.1%.

Inflation Picks Up
Modest economic growth and higher commodity prices increased inflation, measured by the Consumer Price Index (CPI), to 2.3% in 2012. Inflation is expected to pick up to 3.3% in 2013, but remain historically low.

Unemployment Rate Drops
The unemployment rate started dropping in the fall of 2010 and fell to an average of 8.2% in 2012. The unemployment rate is expected to average 7.5% in 2012, which is still historically high.

After several years of staff reductions and salary freezes, companies are starting to hire again and grant larger increases in pay. This trend should continue as the economy continues to grow and unemployment rates fall.

For a copy of the full report, which includes in-depth analysis and complete tables of data collected, visit www.ngcoa.org/bookstore or call (800) 933-4262. Cost is $150 for NGCOA members and $225 for non-members.

© 2000, National Golf Course Owners Association