Horizon Point Consulting

Category: Compensation

We know Compensation. This archive includes stories and best practices from our experience with compensation analysis and planning, workforce studies, wage and benefit surveys, and more.

  • Inside the 2025 North Alabama Wage and Benefit Survey

    Inside the 2025 North Alabama Wage and Benefit Survey

    The 2025 North Alabama Wage and Benefit Survey, conducted by Horizon Point Consulting and hosted by NAIDA, North AlabamaWorks!, NARCOG, NACOLG, and seven participating counties, gives employers in our region valuable insight into compensation, workforce practices, and benefits. 

    With input from 152 participating organizations—including 81 manufacturers and 50 government contractors—this year’s report shows how pay and perk strategies are evolving across North Alabama.

    Who Took the Survey?

    Employers across diverse sectors contributed:

    • 152 total participants
    • 81 manufacturers
    • 50 government contractors
    • Representing Colbert, Cullman, Lauderdale, Lawrence, Limestone, Madison, and Morgan counties

    Hard-to-Fill Jobs

    Respondents identified persistent hiring challenges in:

    • Skilled trades and technicians, especially for off-hours and specialized roles
    • Engineering and IT
    • Finance, HR, and leadership
    • Production, warehousing, and frontline service roles
    • Education and hospitality support
    • Average last pay increase: 4.11%
    • Median last pay increase: 3.35%
    • Average next pay increase planned: 3.48%
    • Median next pay increase: 3.00%
    • Turnover: Down 16% from 2023—an encouraging trend across most industries

    Wage comparisons reveal moderate increases:

    • Accounting clerks: $23.00 to $24.48/hour
    • Customer service reps: $20.25 to $21.48/hour
    • HR assistants: $57,000 to $60,000/year
    • Production roles: $20.78 to $21.91/hour
    • Maintenance: $27.39 to $28.90/hour
    • Warehouse/logistics: $20.52 to $21.39/hour

    Some employers are adopting skills-based pay programs, offering:

    • $1.00/hour for learning additional skills
    • Maintenance progression increases of up to $5/hour based on testing and training
    • Pay raises tied to performance on a skills matrix

    A few employers are exploring non-traditional shift models:

    • Short shifts (3–8 p.m. options)
    • 8-hour formats instead of traditional 12-hour shifts
    • Part-time based on availability and business needs

    Benefits Overview

    • Average total benefit cost per employee: $14,098.61 (up 9.4%)
    • Individual medical coverage (median): $7,524.79 (up 15.8%)
    • Family medical coverage (median): $20,308.56 (up 18%)

    Non-Traditional Benefits Employers Are Offering

    In addition to traditional benefits, many employers are getting creative with their perks. Survey responses show a growing focus on holistic employee well-being, including:

    • Wellness Reimbursement Plans to cover the cost of fitness and personal health equipment
    • Charitable Gifts Matching to support employees’ financial support of community nonprofits, giving directly to organizations with personal meaning to internal staff 
    • Employee Stock Ownership Plan (ESOPs) increased this year, continuing the trend of giving employees more direct ownership in the success of the company. 

    These nontraditional offerings help employers stand out and signal a commitment to supporting employees beyond the basics.

    Paid Leave, Child Care, and Wellness Support

    31% of participating companies are offering Paid Family Leave for new parents after the birth or adoption of a child. The average leave time is 7 weeks, and 87% of participating employers pay a full 100% of salary. These stats are up from 2024. 

    13% of employers offer some type of Child Care benefit, primarily by offering an FSA or vouchers to nearby child care centers. This is up a bit from 2024. 

    53% of employers offer Remote/Telework employment options, most in a hybrid format. Additionally, 35% of employers offer Flex-Time, allowing employees to work alternate hours to accommodate child care and other needs.

    State-Funded Workforce Programs, Tax Incentives, and Child Care Credits

    • AIDT used by 18% of employers
    • Alabama Office of Apprenticeship: 15% of participants offer registered apprenticeships 
    • Existing Industry Training Program (EITP): only utilized by 4% of respondents with an additional 5% considering applying. 
    • Alabama’s Employer Tax Credit for Child Care is also gaining attention. It offers:
      • Up to $15 million in statewide tax credits in 2025, $17.5 million in 2026, and $20 million in 2027.
      • Small Businesses (fewer than 25 employees): Eligible for a credit equal to 100 percent of eligible expenses, with a maximum of $600,000 annually.
      • Other Employers (25 or more employees): Eligible for a credit equal to 75 percent of eligible expenses, with a maximum of $600,000 annually.

    However, only 1% of participants in this year’s survey have applied for the Child Care credit so far, and 53% do not intend to apply at all. 

    Why This Survey Matters

    With rising costs, shifting workforce expectations, and the competitive labor market, the 2025 North Alabama Wage and Benefit Survey provides critical benchmarks. It equips organizations with:

    • Reliable data for budgeting and planning
    • Insight into regional labor market pressures
    • A roadmap for strategic compensation and benefit design

    To learn more, access the full interactive survey reports via Sensible Surveys or contact the Horizon Point team for consultation and support.

  • AI Isn’t Replacing Jobs, Rather, It’s Writing Them

    AI Isn’t Replacing Jobs, Rather, It’s Writing Them

    This week we continue our exploration of AI. I must admit, I’ve been hesitant to give AI a chance. Given the ethical and legal concerns with its use and my own personal worries about whether it can perform for my needs, I saw no reason to engage with it. These past few weeks however, I’ve been testing its applications within the work place for HR-related tasks.

    Recently, I’ve been working on a compensation project that involved pulling market data, and reviewing job descriptions. I felt it would be a good opportunity to test AI and its research and writing capabilities. In recent months, ChatGPT, a Large Language Model AI developed by OpenAI, has undergone several updates providing it with new capabilities outside of just writing. One such new feature includes doing internet research, but how accurate is it?

    To test this, I enlisted my tech-savvy kids to ask ChatGPT for market data at the 25th Percentile in Huntsville, AL for a Market Assistant. Below I’ve attached screenshots of their results.

    When asking the same question, they both get slightly different answers. And when double checking their results, it seems that ChatGPT provided inaccurate information. Visiting the link it provided, it tells us that the range for the position as a whole is actually $46,530 to $58,286. See here for yourself: https://www.salary.com/research/salary/listing/administrative-assistant-salary/huntsville-al

    Comparing the ChatGPT results to CompAnalyst (Salary.com’s paid wage database) I found that the average salary for an Administrative Assistant for the 25th percentile in Huntsville is about $35,000, which aligns with the result one of my kids got, however, it doesn’t align with the source provided, so we’re unsure where this information is coming from. The results my other son got, $39,502 aligns with the median rate provided on CompAnalyst, which was $39,900. 

    Next, I decided to see how well ChatGPT wrote job descriptions. So, I asked ChatGPT to write a job description for an entry level GIS Analyst. The results were actually pretty decent. The job description had a well written summary of the role, accurately outlined key responsibilities, and specific qualifications including the requirement to know specific GIS software including ArcGIS and QGIS. ChatGPT also included the benefits offered by the employer and outlined the application process. My favorite part though is that ChatGPT even included an EEO statement. What it lacked was information on the physical requirements of the job and the work environment, so I decided to test it out on a job that requires more physical ability – a police officer. But once again, ChatGPT didn’t include any information on the physical requirements or work environment of the role. 

    These were just two simple tests of ChatGPT and how it could benefit HR professionals. Having given it a try, I do believe that AI can be beneficial to HR and help create a starting point for many HR tasks. However, the key takeaway for me is that AI is a starting point, it’s a tool to help aide you but you still have to do work – research the data you obtain through AI, review that document you have AI create for you for accuracy, compliance, and best practices, and remember that you are still responsible for the liability that using AI can create. 

  • Inflation and Competitive Wages – What do these mean to You?

    Inflation and Competitive Wages – What do these mean to You?

    Are your company’s wages in line with the market? Inflation is often the topic of conversation in the news and in everyday conversation. I recently read an article about Social Security increases, the largest in more than a decade, is on the horizon; you can check the article out here: Social Security Cost-of-Living Adjustment Could be the Highest in 13 Years.

    What does that mean for individuals? It means you should know your worth, or rather, know what the going rate is for your role. I’m currently working on a wage compensation study and researched the Consumer Price Index to ensure rates were on track. It is currently 5.4%; that’s considerable. Here are a few free sources you can use to dig into wage data:

    O*Net – (enter job title, scroll down to Wage & Employment Trends, enter zip code)

    Salary.com – (look for “Individuals” What am I worth? Enter job title & location)

    What does this information mean for companies? Just this week, I’ve received more than one request for a proposal from companies wanting a compensation study. I’ve also had more than one conversation about how hard it is for companies to find employees. One way to combat that issue is to ensure you are paying at least the going rate for the positions you are seeking to fill. If you’d like to learn more about how Horizon Point can help with this, let us know! In the meantime, check out this case study from our website: Regional Wage Survey Case Study.

  • 7 Things to Consider in Wage Fairness

    7 Things to Consider in Wage Fairness

    Pay disparity has long been a topic, most notably with discrepancies in pay between women and minority groups.   The #metoo movement and #blacklivesmatter movements have brought this issue even further to the forefront.   And rightly so. 

    Payscale published its annual Gender Pay Gap Report in March, stating that, “Since we have started tracking the gender pay gap, the difference between the earnings of women and men has shrunk, but only by an incremental amount each year. There remains a disparity in how men and women are paid, even when all compensable factors are controlled, meaning that women are still being paid less than men due to no attributable reason other than gender. As our data will show, the gender pay gap is wider for women of color, women in executive-level roles, women in certain occupations and industries, and in some US states.” 

    The report is definitely worth a deep dive to read if you have a chance.  

    If your organization is concerned about pay disparity, what should you do? It starts with considering all the factors that go into determining pay:

    1. Consider what your organization values.  What creates value for your organization by creating a competitive advantage?  These are compensable factors.   As another Payscale report states, “It’s also perfectly reasonable to pay people in the same position differently as long as the compensable factors are justified and aligned with legal requirements.” 

    2. Consider time.  Years of experience overall and tenure with the organization are important factors that affect pay. 

    3. Consider performance.   Performance can and should affect pay.  Make sure you have a documented and systematic way of measuring performance that can justify and backup pay differences. 

    Examine your wage data.

    4. Conduct a pay equity analysis.   A professional in the field can help you conduct regression analysis to see what factors are contributing to pay disparities if any, and if these factors are based on protected classes and/or on factors mentioned above like years of experience, compensable factors, etc. 

    5. Get your legal team involved.  I know, I know, I hate to call the attorney too unless it is absolutely necessary, but it is necessary here.  This can help you do a pay equity analysis under attorney-client privilege, and based on what you discover, help you chart the right path forward. 

    Finally, consider ways you can help to combat systemic issues with pay disparity: 

    6. Consider policies and “norms” that impact gender or other demographic factors like race differently.  A documented reason for macro gender pay disparity issues is tied to women leaving the workforce altogether or seeking more flexible work opportunities to raise children.   Considering how your organization can retain female talent during child-rearing years is an important consideration for individual organizations and for the entire economy on a macro level. 

    7. Teach advocating and negotiation skills to women and minority groups.  I personally believe one of the reasons women and some members are of minority groups are paid less is because they don’t ask for what they are worth.  There is evidence to support this (and there is evidence that contradicts it).  Helping people understand the market for their skills and experience and giving them the confidence to stand for what they are worth and ask for it is empowerment at its finest.  I’ve found that many people just don’t know what they don’t know when it comes to the knowledge and skills needed to advocate and negotiate, so they just don’t.  Over a lifetime, this could mean a substantial difference in lifetime earnings. 

    Are you concerned about pay fairness and pay disparity at your organization?