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  • Actual for You - Compensation Resources, Inc. Releases Its 2005 Year-End Compensation Survey

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    Upper Saddle River, N.J. - November 2005 - Compensation Resources, Inc. (CRI) has released the results of its 2005 Year-End Compensation Survey. The purpose of this study was to obtain compensation data used for trending and planning purposes at companies of all sizes and shapes. Data was compiled from survey questions that were developed by CRI and distributed to companies in 16 industrial classifications, in addition to Not-for-Profit organizations. The survey sampled year-end compensation data from a variety of organizations, collected in October and November 2005.

    Results indicated that the average merit/salary increase for all employee functional groups was 4.0% in 2005, and 4.2% is the average projected merit/salary increase for all groups in 2006, an increase over 2004 year-end survey results. Generally speaking, Privately-Held companies reported higher percentages of actual 2005 and budgeted 2006 merit increases overall as compared to Publicly-Traded and Not-For-Profit organizations. As reported in 2004, survey participants indicated that they expected the number of layoffs, hiring freezes, and salary freezes to decrease from 2004 to 2005; in fact, projections were accurate, as respondents in this year’s survey reported actual decreases in these corporate events.

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    l sizes and shapes. Data was compiled from survey questions that were developed by CRI and distributed to companies in 16 industrial classifications, in addition to Not-for-Profit organizations. The survey sampled year-end compensation data from a variety of organizations, collected in October and November 2005.

    Results indicated that the average merit/salary increase for all employee functional groups was 4.0% in 2005, and 4.2% is the average projected merit/salary increase for all groups in 2006, an increase over 2004 year-end survey results. Generally speaking, Privately-Held companies reported higher percentages of actual 2005 and budgeted 2006 merit increases overall as compared to Publicly-Traded and Not-For-Profit organizations. As reported in 2004, survey participants indicated that they expected the number of layoffs, hiring freezes, and salary freezes to decrease from 2004 to 2005; in fact, projections were accurate, as respondents in this year’s survey reported actual decreases in these corporate events.

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    rganizations, collected in October and November 2005.

    Results indicated that the average merit/salary increase for all employee functional groups was 4.0% in 2005, and 4.2% is the average projected merit/salary increase for all groups in 2006, an increase over 2004 year-end survey results. Generally speaking, Privately-Held companies reported higher percentages of actual 2005 and budgeted 2006 merit increases overall as compared to Publicly-Traded and Not-For-Profit organizations. As reported in 2004, survey participants indicated that they expected the number of layoffs, hiring freezes, and salary freezes to decrease from 2004 to 2005; in fact, projections were accurate, as respondents in this year’s survey reported actual decreases in these corporate events.

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    over 2004 year-end survey results. Generally speaking, Privately-Held companies reported higher percentages of actual 2005 and budgeted 2006 merit increases overall as compared to Publicly-Traded and Not-For-Profit organizations. As reported in 2004, survey participants indicated that they expected the number of layoffs, hiring freezes, and salary freezes to decrease from 2004 to 2005; in fact, projections were accurate, as respondents in this year’s survey reported actual decreases in these corporate events.

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    rticipants indicated that they expected the number of layoffs, hiring freezes, and salary freezes to decrease from 2004 to 2005; in fact, projections were accurate, as respondents in this year’s survey reported actual decreases in these corporate events.

    Highlights of this year’s results, including a comparison with the prior year’s findings:

    MERIT/SALARY INCREASE

    2004 Results 2005 Results
    Group Actual 2004 Projected 2005 Actual 2005 Projected 2006

    Executive 4.3% 4.3% 4.5% 5.1%

    Management 3.8% 3.8% 4.1% 4.4%

    Exempt Salaried 3.6% 3.7% 4.1% 4.0%

    Non-Exempt Salaried 3.5% 3.6% 3.6% 3.7%

    Hourly/Production 3.5% 3.5% 3.8% 3.8%

    All Groups Average 3.7% 3.8% 4.0% 4.2%

    These results reflect a general rise in merit increase budgets and awards, consistent with the upward swing in the marketplace with regard to labor conditions. Consistent with these findings is the general expectancy of the following corporate events among participants (including a comparison with the prior year’s findings):
    ACTION EXPERIENCED

    2004 Results 2005 Results
    Action Actual 2004 Projected 2005 Actual 2005 Projected 2006

    Layoffs 28.8% 13.5% 20.1% 11.4%

    Hiring Freezes 19.8% 9.0% 14.8% 6.7%

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