Using Data for Compensation Decisions

bar graph and dollar signs August 10, 2016

ASAE’s 2016 association compensation and benefits benchmarking study supports staffing and benefits decision making.

Personnel costs remain the largest single expense for associations, which spend about 38 percent of their total budget on salary and benefits (the median percentage in recent ASAE research). Attracting and retaining that vitally important asset depends to a large degree on offering competitive compensation and benefits. Using data to guide decisions about these significant expenditures can help remove the guesswork.

ASAE’s new Association Compensation and Benefits Study, 2016–2017 Edition, based on an ASAE Foundation study, contains data on compensation for 75 positions in the association field, as well as benefits information for staff and CEOs.

Findings show that, overall, median reported CEO compensation rose 18 percent, from $197,983 in 2014 to $233,600 in 2016. This follows a similar 16.9 percent rise between 2012 and 2014. Median deputy CEO compensation reported in this study stayed nearly flat, at $161,968, actually dipping 1.8 percent from numbers reported in the 2012–2014 edition of the study.

Overall, median reported CEO compensation rose 18 percent, while median deputy CEO compensation dipped 1.8 percent from numbers reported in the 2012–2014 edition of the study.

Specific functional areas experienced a rise in compensation. For example, from 2014 to 2016, median reported compensation rose in eight of 10 technology positions. Notably, participating organizations reported paying their top information technology position a median of $123,128, versus $114,181 in the previous study.

The study gathered comprehensive data for most senior positions, as well as mid- and functional-level roles. At the senior level, survey participants reported increased median salaries for their top public relations position, general counsel, strategic initiatives executive, and top foundation position. Participating associations reported lower median salaries in some areas, including the top administrative, component relations, government lobbying, and publications positions.

Tracking Trends

Compensation benchmarking numbers are collected to support the association industry in making compensation and benefits decisions, assist boards in the process of CEO searches or performance evaluations, and help association staff gauge market levels for their roles. They also help associations make financial plans related to benefits. For example, the compensation study found that healthcare costs rose at a median rate of 8 percent from 2014 to 2016, close to the 7.5 percent increase reported between 2012 and 2014. Associations that track these trends can anticipate and build those kinds of increases into their budgets.

8% The rise in healthcare costs from 2014 to 2016, according to the Association Compensation & Benefits Study, 2016–2017 Edition.

A challenge when using benchmarking data is that member-serving organizations vary. The study addressed differences by surveying associations diverse in industry, geography, location, industry, and staff size. Tools associated with the study, notably AssociaMetrics, allow association professionals to filter and review data specific to their unique profiles.

One note of caution: Fluctuations in reported compensation and benefits can be attributed to a variety of factors, including the changing profile of survey participants from one data collection cycle to the next. Hence, no compensation report is definitive. Benchmarking is most effective when associations compare data from multiple sources. Further, compensation and benefits data should be read with the unique operational makeup of individual organizations in mind, and with the understanding that deviations from the norm are points for inquiry, not necessarily an indicator that something is wrong.

The 2016–2017 Association Compensation & Benefits Study is available in the ASAE bookstore. The data is also available through AssociaMetrics, ASAE’s new online portal that allows subscribers to access survey data and create reports tailored their organization’s profile.