2014 Single-Family Builder Compensation Study
296
2014 Single-Family Builder Compensation Study
296eBook
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Overview
Product Details
| ISBN-13: | 9780867187380 |
|---|---|
| Publisher: | National Association of Home Builders |
| Publication date: | 01/01/2015 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 296 |
| File size: | 30 MB |
| Note: | This product may take a few minutes to download. |
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CHAPTER 1
EXECUTIVE SUMMARY
• The 2014 Single-Family Builder Compensation Study shows data on compensation and benefits for 39 common positions at single-family home building companies. The data are broken down by region and size of the builder (starts, dollar volume, and employees).
• A majority of all single-family builders (88 percent) responding to the survey have a President/CEO. Forty percent report having a Superintendent, 37 percent a Bookkeeper, 34 percent a VP of Construction, 27 percent a Project Manager, and 22 percent report having a CFO/Head of Finance. The remaining 33 positions listed exist at 20 percent or less of the responding firms.
• Respondents were asked to report the annual salary and bonus (if any) of each position existing at their firm. To produce the average total compensation for any one position, its average annual salary and its average bonus (computed among all respondents who actually reported the position) were combined.
• The top five highest average total compensation levels are: President/CEO, at $151,988 (position exists at 88 percent of responding firms); Head/Director of Land Acquisition, at $145,537 (exists at 7 percent of responding firms); VP of Construction, at $126,305 (exists at 34 percent of responding firms); Head/Director of Sales & Marketing, at $117,140 (exists at 20 percent of responding firms); and CFO/Head of Finance at $116,864 (exists at 22 percent of responding firms).
• The lowest five average total compensation levels are: Receptionist, at $31,997 (exists at 9 percent of responding firms); Model Home Host, at $34,270 (exists at 8 percent of responding firms); Administrative Assistant, at $37,743 (exists at 12 percent of responding firms); Bookkeeper, at $41,274 (exists at 37 percent of firms); and Executive Assistant at $42,612 (exists at 15 percent of firms).
• Respondents were also asked about which of a list of 13 fringe benefits (health insurance, dental insurance, vision program, prescription program, life insurance, short-term disability, longterm disability, flex spending, 401K, paid vacation leave, paid sick leave, tuition reimbursement, and training) they offered to each of the positions existing at the firm.
• The most common offered benefits were health insurance and paid vacation leave. Among builders who reported the existence of each of the positions, at least 70 percent provide them with health insurance, except for the production manager (59 percent). At least 74 percent of those who report each of the 39 positions offer paid vacation leave.
• For each position, except Office Manager and Project Manager, the lowest share of builders responding offered tuition reimbursement. Less than a third of builders responding offered tuition reimbursement to any of the 39 positions.
CHAPTER 2II. INTRODUCTION
The 2014 Single-family Compensation Survey was conducted in July 2014 by the NAHB Housing Policy and Economics Group. The objective of this survey is to collect data on compensation and benefits for common positions at single-family home building companies. The data can be used to benchmark how single-family builders compensate their employees.
The survey questionaire (Appendix V) was electronically sent to 4,939 single-family builders in July 2014. Responses were received from a total of 335 builders, for a response rate of 7 percent. Results in this report are broken down by region, expected 2014 dollar volume, number of single-family units started in 2013, and the number of employees on payroll (all details shown in Appendix IV). Exhibit 1 shows the distribution of responses for these categories.
CHAPTER 3III. BUILDER PROFILE
PRINCIPAL OPERATION
Fifty-six percent of respondents reported the principal operation of their firm to be single-family custom building, while 28 percent reported single-family spec/tract building, and 13 percent single-family general contracting. The remaining 4 percent reported some other type of principal operation (Exhibit 2).
The builder's principal operation varies over the number of units built. Builders who started a large number of units in 2013 tend to be single-family spec/tract builders, while builders who started fewer units tend to be single-family custom builders. Seventy-four percent of builders who starated 100 or more units in 2013 are single-famiy spec/tract builders, while 15 percent are single-family custom builders. Half of the builders who started 11 to 99 units are single-family spec/tract builders, while 37 percent are single-family custom builders. Ten percent of builders who started 1 to 10 units are single-family spec/tract builders, while 73 percent are single-family custom builders (Exhibit 3)
NUMBER OF UNITS STARTED
On average, single-family builders expect to build more units in 2014 than in 2013. The average number of single-family units started by survey respondents in 2013 was 39, and the expected number of starts for 2014 is 45. In 2013, 55 percent of respondents built between 1 and 10 single-family units, 18 percent built between 11 and 25 units, 14 percent built between 26 and 99 units, 8 percent built 100 or more units, and 5 percent built none. In 2014, 54 percent of respondents expect to build between 1 and 10 single-family units, 21 percent between 11 and 25 units, 16 percent between 26 and 99 units, 8 percent 100 or more units, while 1 percent expect to build no units (Exhibit 4).
EXPECTED 2014 DOLLAR VOLUME OF BUSINESS ACTIVITY
Among builders responding to the survey the median expected dollar volume in 2014 is $4.3 million. Seventeen percent expect their company's dollar volume to be less than $1 million, 39 percent between $1 million and $4.9 million, 18 percent between $5 million and $9.9 million, 10 percent between $10 million and $14.9 million, and 15 percent $15 million or more (Exhibit 5).
YEARS COMPANY HAS BEEN IN BUSINESS
A majority of respondents, 70 percent, have been in business for more than 12 years, 15 percent for 8 to 11 years, 14 percent have been in business for 3 to 7 years, and 1 percent for less than 3 years. The average number of years a respondent has been in business is 29 years (Exhibit 6).
NUMBER OF EMPLOYEES
Eighteen percent of respondents indicated there were 1 to 2 employees on their firm's payroll as of June 30, 2014, 22 percent reported 3 to 4 employees, 30 percent 5 to 9 employees, and 26 percent 10 or more. Two percent reported zero employees on payroll and 1 percent did not report the number of payroll employees at all (Exhibit 7).
TOTAL PAYROLL
The average payroll among those who reported it was $888,976. Nine percent of builders reported a total payroll of less than $100,000 as of the last day of June, 2014, 42 percent between $100,000 and $499,999, 14 percent between $500,000 and $999,999, and 11 percent reported a total payroll of $1,000,000 or more (Exhibit 8). About a quarter (24 percent) of builders did not respond to this question, a significantly smaller share than the 61 percent of respondents who chose not to report total payroll in the 2010 Compensation Survey.
The remainder of this report is divided into two sections that present the survey findings from two different perspectives:
• Compensations and Benefits Across 39 Positions - this section provides a broad view of all the full-time positions that currently exist at single-family building companies as well as a comparison of average total compensation and benefits across positions. For the purpose of this study the average total compensation is the sum of the average salary and the average bonus (for those cases where a salary is reported).
• Compensation and Benefits by Position - this section provides a more detailed view of each position's average compensation and benefits. It also shows how compensation can vary across firms of different size.
CHAPTER 4IV. COMPENSATION AND BENEFITS ACROSS 39 POSITIONS
POSITIONS THAT CURRENTLY EXIST AT SINGLE-FAMILY BUILDING COMPANIES
Respondents were asked to indicate which of 39 positions exist at their firm and to write in others not listed. A majority of single-family builders (88 percent) responding to the survey have a President/CEO. Less than half of the respondents report having any of the other positions listed. Forty percent of the respondents report having a Superintendent, 37 percent a Bookkeeper, 34 percent a VP of Construction, 27 percent a Project Manager, 22 percent report having a CFO/Head of Finance, and 20 percent a Head/Director of Sales and Marketing. Seventeen percent of respondents report having a Salesperson, and another 17 percent report having a Controller. A Home Services/Warranty Manager, Office Manager, and Executive Assistant each exist at 15 percent of responding firms. A Staff Accountant and Head/Director of Purchasing each exist at 12 percent of responding firms. An Estimator and Head/Director of Production each exist at 11 percent of responding firms. A Selections Coordinator and Receptionist each exist at 9 percent of responding firms. A Model Home Host and Settlement Coordinator each exist at 8 percent of responding firms. A Design Center Manager, Payroll Manager, and Head/Director of Land Acquisition each exist at 7 percent of responding firms. A Sales Manager and Purchasing Manager each exist at 6 percent of responding firms. A Customer Service Manager and Architect each exist at 5 percent of responding firms. A Director of IT exists at 4 percent of responding firms. A Contract Manager and Land Manager each exist at 3 percent of responding firms. A Web Design Specialist, Network Engineer, Director of Human Resources, Head/Director of Development and Training, and CIO/Head of IT each exist at 2 percent of responding firms. In-house legal counsel exists at only 1 percent of responding firms, and a recruiter exists at less than half a percent of responding firms. Twenty percent of builders report having positions at their firm other than the 39 listed. Some of these positions are carpenter, laborer, or position dedicated to handling punch lists (Exhibit 9).
TOTAL COMPENSATION BY JOB GROUP
Respondents were also asked to report the annual salary and bonus of each of the positions existing at their firm. Only full-time positions were considered in this report. To produce the average total compensation for a position, the average annual salary and the average bonus were combined. The average bonus was calculated taking into account "zero bonuses" (those who received a salary but not a bonus). When comparing average compensation levels, keep in mind that not all of the positions exist (at all or as a full-time job) at any one respondent's firm. Thus, the average total compensation for a particular position is only the average among those who actually have the position at their firm.
Also, the salary and bonus for positions that did not have 10 or more responses were tested for their homogeneity, and only included if their standard error was less than 20 percent of the mean. The salary and bonus were not reported for the following positions: In-house legal counsel, Network Engineer, and Land Manager. Although the salary of the Contract Manager and the Director of Human Resources passed the standard error test, the bonus did not and is not reported.
Appendix I lists all positions and their prevalence at responding firms (column A) as well as the average total compensation for each position (column D). In addition, a second bonus calculation is presented (column E) where only those who actually reported a bonus were averaged out (no "zero bonuses" were included).
Executive Jobs
Respondents reported that their firm's President/CEO has an average annual salary of $107,511 and an average bonus, across all those who got a salary, of $44,477. This gives the President/CEO an average total compensation of $151,988. The VP of Construction has an average total compensation of $126,305 ($102,994 salary and $23,311 bonus), followed by the CFO/Head of Finance with a total compensation of $116,864 ($89,332 salary and $27,532 bonus), and the CIO/Head of IT with a total compensation of $77,857 ($70,714 and $7,143 bonus) (Exhibit 10).
Operations Jobs
The Head/Director of Land Acquisition has an average annual salary of $114,341, and a bonus, averaged among all those with a salary, of $31,196, for a total compensation of $145,537. The Head/Director of Sales & Marketing has an average total compensation of $117,140 ($84,988 salary and $32,152 bonus), the Head/Director of Development and Training has an average total compensation of $115,000 ($97,500 salary and $17,500 bonus), the Head/Director of Production receives $93,815 ($76,122 salary and $17,693 bonus), and the Head/Director of Purchasing receives $89,000 ($76,676 salary and $12,324 bonus) (Exhibit 11).
Finance Jobs
The Controller has an average annual salary of $69,440, and a bonus, averaged among all those with a salary, of $5,396, for a total compensation of $74,836. The Staff Accountant has an average total compensation of $54,245 ($50,354 salary and $3,891 bonus), the Payroll Manager has an average total compensation of $48,733 ($46,933 salary, and $1,800 bonus), and the Bookkeeper has an average total compensation of $41,274 ($39,845 salary and $1,429 bonus) (Exhibit 12).
Human Resources
Within Human Resources, only the salary of the Director of Human Resources position received enough responses to report. The Director of Human Resources has an average annual salary of $77,200.
IT Jobs
The Director of IT has an average annual salary of $83,799, and a bonus, averaged among all those with a salary, of $13,505, for a total compensation of $97,304. The Web Design Specialist has an average annual salary of $43,750, and a bonus, averaged among all those with a salary, of $1,150, for a total compensation of $44,900 (Exhibit 13). The Network Engineer position did not receive enough responses to report the salary or bonus.
Administrative Jobs
The Settlement Coordinator has an average annual salary of $46,112, and a bonus, averaged among those all with a salary, of $4,889, for a total compensation of $51,001. The Office Manager has an average total compensation of $45,939 ($44,134 salary and $1,805 bonus), the Executive Assistant has an average total compensation of $42,612 ($40,020 salary, and $2,592 bonus), the Administrative Assistant has an average total compensation of $37,743 ($36,664 salary, and $1,079 bonus), and the Receptionist has an average total compensation of $31,997 ($30,867 salary and $1,130 bonus) (Exhibit 14).
Production Jobs
The Architect has an average annual salary of $74,994, and a bonus, averaged among all those with a salary, of $19,956, for a total compensation of $94,950. The Production Manager has an average total compensation of $77,044 ($64,074 salary and $12,970 bonus), the Project Manager has an average total compensation of $76,144 ($63,510 salary, and $12,634 bonus), the Purchasing Manager has an average total compensation of $75,862 ($64,027 salary and $11,835 bonus), and the Superintendent has an average total compensation of $64,956 ($57,702 salary, and $7,254 bonus). The Contract Manager has an average annual salary of $61,375, and not enough builders reported the bonus to report. The Home Services/Warranty Manager has an average total compensation of $54,958 ($50,137 salary and $4,821 bonus), and the Estimator has an average total compensation of $52,629 ($49,541 salary, and $3,088 bonus) (Exhibit 15). The Land Manager position did not receive enough responses to report.
Sales & Marketing Jobs
The Sales Manager has an average annual salary of $60,750, and a bonus, averaged among all those with a salary, of $40,813, for a total compensation of $101,563. The Salesperson has an average total compensation of $74,782 ($55,187 salary and $19,595 bonus), the Design Center Manager has an average total compensation of $55,992 ($49,974 salary and $6,018 bonus), the Customer Service Manager has an average total compensation of $49,205 ($45,791 salary, and $3,414 bonus), the Selection Coordinator has an average total compensation of $47,336 ($43,984 salary and $3,352 bonus), and the Model Home Host has an average total compensation of $34,270 ($30,820 salary and $3,450 bonus) (Exhibit 16).
Other
Builders were asked the salary and bonus of any other jobs in their company. Some common jobs listed are carpenter, laborer or position dedicated to handling punch lists. The average annual salary for all other positions was $46,776, and the bonus, averaged among all those with a salary, $4,356, for a total compensation of $51,132.
BENEFITS
Respondents were further asked about which of a list of 13 fringe benefits were offered to each of the positions existing at the firm. Fewer than 10 builders reported any benefits for 9 of the positions, so we did not report those findings. A comparison of the prevalence of each of the fringe benefits across the remaining 30 positions, including the 'Other' position is as follows:
Health Insurance
All of the positions, except the Production Manager, are offered health insurance by 70 percent or more of the respondents that reported them. The following 10 positions are offered health insurance by 90 percent or more of the respondents: Settlement Coordinator (96 percent), Selections Coordinator (95 percent), Head/Director of Land Acquisition (95 percent), Receptionist (95 percent), Architect (93 percent), Salesperson (93 percent), Head/Director of Purchasing (92 percent), Staff Accountant (91 percent), Administrative Assistant (90 percent), and Director of IT (90 percent). The following 10 positions are offered health insurance by 80 to 89 percent of the respondents that reported them: Controller (89 percent), Home Services/Warranty Manager (88 percent), Purchasing Manager (88 percent), Payroll Manager (85 percent), CFO/Head of Finance (84 percent), Executive Assistant (83 percent), Estimator (83 percent), Sales Manager (83 percent), Customer Service Manager (83 percent), and VP of Construction (81 percent). The following 8 positions are offered health insurance by 70 to 79 percent of the respondents that reported them: Office Manager (79 percent), Head/Director of Sales & Marketing (79 percent), Design Center Manager (79 percent), Bookkeeper (77 percent), President/CEO (77 percent), Project Manager (73 percent), Superintendent (70 percent), and Head/Director of Production (70 percent). Only 59 percent of firms with Production Managers offer them health insurance (Exhibit 17).
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