Horizon Point Consulting

Tag: compensation

  • 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.

  • What To Know About Shopping For an HRM

    What To Know About Shopping For an HRM

    What To Know About Shopping For an HRM

    Over the past few years Horizon Point has helped multiple clients vet and implement a Human Resources Management System. Each client had very different wants and needs, and each implementation was unique. So what do companies need to know about vetting an HRM?

    1)      Understand what an HRM can offer your organization. Not every HRM system is created equally. Some systems are all-or-nothing, meaning that you cannot customize the functions you want or need, you pay for full functionality whether you use it all or not. Many vendors offer systems that are modular, meaning that you can pick and choose which functions you want built into your system and you pay based on the modules you select. HRMs have some or all of the functions below:

    a.       Data storage
    b.      Payroll
    c.       Timekeeping
    d.      Benefits administration
    e.       Applicant Tracking
    f.        Onboarding and offboarding
    g.       Performance Management
    h.      Compensation
    i.        Training
    j.        Asset Management
    k.       Employee Self-Service

    2)      Understand what you need from an HRM. Just because an HRM offers a vast array of functions doesn’t mean that your organization needs them all. Many organizations already have systems in place to manage some functions, such as payroll, timekeeping, or applicant tracking. In order to determine if these functions should be moved to a new system, you have to consider factors such as cost to convert the processes over, if the data can be imported from the old system to the new or will it have to be manually entered, or if the new HRM can work with the current systems you have in place.

    3)      Don’t just consider what your organization needs now, but what it may need in the future. Do the systems you’re considering not only meet your organization’s needs today, but will they grow with your organization and still be the right system for you in five or even ten years? Some systems are great for small businesses but as companies grow the system can no longer meet their needs and they find themselves needing to go through the vetting and implementation process all over again in just a few years. Some systems are great for large companies, but the expansive functionality is not needed for small businesses and the cost is too high. Be sure to consider if a month-to-month payment plan or a long-term contract is right for your organization as well.

    4)      What does implementation look like? As I mentioned above, I have implemented multiple systems for clients, and each vendor manages implementation differently. Generally, your company is assigned to a dedicated implementation specialist who walks you through the process of collecting and importing data. Depending on the system selected and the functions being implemented, the process can be fairly easy and take a few weeks, or can be extremely complicated and take a few months to fully set up and roll out.

    When vetting and implementing an HRM, it’s critical to understand the needs of your organization and what a system can offer you. That includes not only functionality, but growth capabilities, cost, implementation complexity, and the return on investment.

    To learn more about HRM vetting, read our blog post Selecting an HRIS that’s Right for You. If you’re interested in how Horizon Point can help you vet an HRM, ATS, you can read more about how We Help You Hire Right.

  • 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.