CTHRA's 2009 Compensation Survey Results
Starz Shares Green HQ Remodel Strategy
Election Results
Fellowship's CTAM Experience
Social Media & Recruiting
Did You Know?
LEED Certification for green buildings may require changes to building products and light bulbs to hand soap? Read all about it
The majority of industry employers participated in CTHRA's 2009 Compensation Survey? Check out the results
An HR professional attended CTAM's Summit? Find out what she learned
Resource
Center
The recession has had far-reaching impact on employers. Check out the Change Management section of CTHRA's online Resource Center
Recent Issues
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Sept-Oct 2009
Time Warner's Outboarding Strategy
July-Aug 2009
Q&A with WOW!'s CEO and HR VP
May-June 2009
• Comcast's human capital management strategy
• CTHRA's 2009 award winners
• Swine flu pandemic flash survey results
Mar-April 2009
Case Study: Discovery's winning approach to a reorg
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Strategy Showcase: Starz Green Renovation
Q&A with Jeffrey Evans, Vice President Facilities and Administration
Starz Entertainment's corporate headquarters in Englewood, Colorado at the Meridian Office Park is home to more than 500 employees. The company renovated the existing structure with a green approach and is currently in the process of obtaining Leadership in Energy and Environment Design (LEED) Existing Building Certification. We asked Jeffrey and Sheryl to share some insight into the process.
Q: What prompted Starz to consider a green approach for its new headquarters? John Sie made a career out of looking ahead. More than a decade ago, he recognized that green technology would make sense from both an economic and environmental standpoint. While serving as our president and CEO, his vision led us to specify green materials to renovate our company's headquarters—from recycled materials in precast concrete to carpeting and even furniture.
Q. Did Starz hire a consultant or a specially qualified firm to manage the green build? Yes, we did. Fortunately, the mechanical/electrical engineering firm that helped design our facility, also provides LEED certification services. Not only do they know our facility, they also know the intricacies of the LEED certification process.
Q. Can you shed some light on the Leed certification process?
It is time consuming. In addition to inspections and paperwork, we had to get some of our subcontractors on board and that extended beyond construction crews. For instance, we had to change the types of cleaning products used in the facility, develop a solid waste program, and implement sustainable purchasing throughout the company in all areas We saved time and money by having a consultant that specified the original systems and "green replacements."
Q. Did a green renovation cost more or take longer than a traditional approach?
In some cases it did cost more. However, we have been able to participate in several rebate programs that have off-set the cost of many of our retrofits. For example, we took advantage of rebates offered by our local energy provider for lighting retrofits, cooling system modifications and building automation.
Q. What immediate benefits were realized upon completion of the building and what long term benefits do you anticipate?
Because we retrofitted an existing building, immediate benefits were reduced energy consumption and less waste. In fact, the modifications to
our building automation system resulted in a 15 percent reduction in electricity
costs. In the long haul, we'll realize reduced maintenance costs and more efficient operations.
Q. What unique challenges were encountered from the green approach?
Waiting for technology to become available, like for our recent lighting retrofit. We replaced over 1,200 MR-16 lamps with an LED equivalent, but had to wait for the wattage replacement to become available. Also, some of the building controls we needed to change to operate more efficiently were not designed to perform in the manner we needed. So it took some ingenuity with our control company to make some of our operations work in a green manner.
Q. What advice can you offer to industry companies seeking to achieve a green build?
Do your research. There are a lot of rebate programs out there—especially from your energy providers. This can really help selling the up-front costs to senior management. Also, the day-to-day changes required to achieve LEED certification will impact the people who work in the building, so keep them in the loop! Our employees have experienced the building lights shutting off earlier, reduced temperatures during off-peak hours and the introduction of a "touchless" restroom which impacted the type of paper towels and hand soap.
Q. Is there anything you'd like to add about Starz green experience?
It's important to recognize that being green is an ongoing process. New technologies continue to become available and less cost prohibitive. Additional rebate programs are introduced. My primary reference points to stay on top of developments are the www.usgbc.org Web site, Buildings magazine, and the book "Going Green - Case Studies in Outstanding Green Business Practices" from PR News.
Spotlight On: CTHRA's 2009 Compensation Survey Results
Workforce compensation is the single largest expenditure for most employers. So the burning question is: How have operators, programmers and broadcast networks adjusted their compensation practices in light of the recession? It's not surprising CTHRA's 2009 Compensation Surveys found that industry employers tightened their belts. However, it is reassuring to learn that less than a quarter of the companies issued pay freezes for the year, and variances in compensation from 2008 to 2009 remained in the single digits for all indicators except one.
"Results from CTHRA's Compensation Surveys indicate that industry employers are working diligently to manage compensation expenditures in a fiscally responsible manner that allows them to retain talent and maintain employee motivation," shared Pam Williams, CAE, CTHRA's executive director.
CTHRA's 2009 Compensation Surveys were conducted by The Croner Company, a leading compensation consulting firm specializing in compensation plan design, compensation surveys and organizational design. Comprehensive data was submitted by 60 cable operators, satellite providers, programmers and broadcasters.
"The majority of the industry's employers participated in CTHRA's Compensation Surveys, which enables CTHRA to provide accurate, industry-specific benchmarks and trend analyses that companies can utilize in their strategic decision making," shared Linda Chambers SPHR, corporate vice president of human resources for Bright House Networks.
The participating companies reported data for 163,000 positions, up 20,000 from last year. The types of jobs analyzed included exempt and nonexempt positions ranging from technicians to top executives. CTHRA's 2009 MSO survey added 65 new positions in sales and customer care, while the 2009 survey for cable and broadcast networks [henceforth referred to as programmers] featured expanded job family levels. Survey data was collected in March 2009, thus reflecting 2009 budgets for base compensation.
Not surprisingly, employers in both industry segments budgeted salary adjustments more conservatively in 2009 than in previous years as shown in Diagram 1.
Diagram 1
CTHRA's analysis determined that 2009 salary adjustment budgets were reduced approximately one percent from the prior year. On average, MSOs budgeted a 3.3 percent salary increase for 2009, compared to 4.0 percent for 2008, and programmers budgeted a 3.0 percent salary increase compared to 3.9 percent last year.
Hay Group's Reward in a Downturn report provides some insight into how the cable and satellite industry compares to others. In March 2009, the global marketing consulting firm surveyed a cross-section of 2,000 organizations across the globe and found that the average budgeted salary increase across industries was 2.8 percent.
CTHRA's surveys determined that actual base salary movement was slightly lower than salary adjustment budgets among MSOs, and slightly higher among the programmers and broadcast networks. According to Hali Croner, president and CEO of The Croner Company, "We have found that when base salary movement is less than budget, we are in a steady employers' market. When market movement exceeds budget, there are more market adjustments and new hires putting pressure on pay."
Pay freezes were less prevalent in the cable and satellite industry than others. In The Hay Group's report, 36 percent of the 2,000 organizations surveyed indicated they had implemented salary freezes. In comparison, only 18 percent of CTHRA's MSO survey participants and 24 percent of the programmer participants issued budget freezes for salary adjustments this year. Of those, only five (all of whom were programmers/broadcasters) implemented a full freeze.
While both industry segments experienced a decline in bonus awards based on performance during January-December 2008, programmer and broadcast network employees were hit harder than their MSO counterparts. The programmers and broadcast networks experienced a 7.8 percent drop in bonus awards over last year, double that of MSOs' 3.7 percent decline.
Long-term Incentives
Long-term incentives (LTI) that are linked to a company's financial performance (such as stock options, shares and long term cash) are a common component of compensation within the cable and telecommunications industry. Among CTHRA's survey respondents, 71 percent of the MSOs and 79 percent of the programmers have a LTI program. Due to the recession's far reaching impact on most companies' financial performance, long term incentives declined 9.2 percent among MSOs and 14 percent among the programmers.
Like companies in the general industry index, CTHRA's survey participants are responding to increased regulatory and shareholder pressures as well as severe declines in stock price affecting price per share and share dilution. Twenty five (25) percent of the MSO respondents and 23 percent of the programmers made changes to their LTI plans in 2008. Changes included reduced eligibility and lowered target awards, the introduction of performance-based equity, and implementing changes to comply with IRS 409(a). In comparison, 28 percent of Hay Group's cross section of employers indicated that they have already made changes or are considering changes to their LTI programs.
The recession has prompted many companies to take a comprehensive look at compensation. In addition to managing compensation budgets and making changes to long-term incentive programs, industry employers reported that they are building infrastructure in such areas as universal titling and leveling, universal incentive plans, and HRIS systems and data upgrades. To stay on top of industry trends, plan on participating in CTHRA's 2010 surveys. For more information or to enroll to participate, please contact The Croner Company at 415.485.5530.
HR Pro Enters The Marketers' Arena
By Kimberly Hulsey, TV One LLC
In October, Kimberly Hulsey of TV One LLC received the CTHRA-CTAM Summit Fellowship which provided her with a complimentary registration to the CTAM Summit in Denver on October 25-27. She was kind enough to write about her experience.
You would think that an HR professional would get lost or feel out of place in a sea of more than 1,900 sales and marketing specialists from the industry, but my CTAM Summit experience generated just the opposite feeling. Regardless of stature or role in the cable industry, for two and a half days, EVERY attendee sat with rapt attention as a variety of panelists, both inside and outside the cable industry, gave their prescriptions for keeping cable and cable products relevant to consumers.
Technical folks got clear on the need to furnish cable operators with high-capacity equipment that can exploit the plethora of SD, HD and VOD content. Marketers got a front seat to witness the industry's debate on consumers' appetites, such as if subscribers want their subscription content to be portable via PDA or personal media players or do they want time-shifted content that is accessible on a home HD screen? And programmers continued to be encouraged to create compelling content. To my (pleasant) surprise, the product, sales and marketing focus of the CTAM conversation didn't alienate, but rather illuminated, some clear messages for the HR segment of the industry.
CTAM emphasized that qualities like flexibility, agility, quick study, responsiveness, uncomplicated and promise keeping are characteristics the 2009 media consumer expects from the cable industry. My time at the Summit made clear these same qualities must inform the HR mission. The staff hired, the teams assembled and the plant/field organizational strategy must each reflect the dynamic, uncompromising expectations that consumers demand of the industry. With focused recruiting and internal consulting, human resource professionals can animate the 2009 CTAM Summit themes in each of their respective companies.
This Just In...
CTHRA Names 2010 Officers and 3 New Board Members
The votes are in! The following individuals will join CTHRA's board of directors on January 1: Tomas Matthews, EVP of HR for Time Warner Cable, Christopher Powell, EVP of HR for Scripps Networks and Gerard Zack, SPHR, Director of HR for Cisco Systems. In addition, CTHRA's members voted to renew the terms of these board members:
Sheryl Anderson, SVP of HR and Administration, Starz Entertainment
Karen Bennett, SPHR, CCP, SVP of HR, Turner Broadcasting Systems Inc.
Rosalind Clay Carter, SVP of HR, A&E Television Networks
Linda Chambers, SPHR, VP of Corporate HR, Bright House Networks
Also on January 1, Lisa Chang, SVP of HR for Turner Broadcasting Inc. will take the helm as CTHRA's president. She'll be joined by these officers:
Vice-President/President-elect: Erin Hand, VP of Talent and Development for Cox Communications
Treasurer: William Strahan, VP of Compensation and Benefits for Comcast Cable
Secretary: Ted Stewart, SVP of Total Rewards/HR for Discovery
Communications
Executive Committee Member: Michael Butler, SVP of Compensation and Benefits for Cablevision Systems
For a complete list of CTHRA's board of directors, please visit our Web site.
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CTHRA Pens Articles to Help Job Seekers
Each month, CTHRA shares its expertise on the tough issues facing today's job seekers in Multichannel News and Broadcasting & Cable new publication, Television Careers. The weekly publication features the latest job listings for TV professionals and insider analysis of media industry moves. More than 30,000 industry professionals subscribe to Television Careers, which is delivered directly to their e-mail inbox. Would you like to receive it? Click the image below to sign up for a free subscription. Then, look for CTHRA's October article on whether or not candidates should negotiate salaries during the recession.
Using Social Media to Recruit Talent
In October, CTHRA hosted a Regional Roundtable in Atlanta focused on the topic of social media in the workplace. Based on the great attendance, it's apparent it is a hot topic among HR professionals. Please check out CTHRA's article that recently appeared in CableFAX's The Skinny.
Member Connection
Congratulations to these members on the move:
Comcast promoted Ron Phillips to Senior Vice President of Employee Engagement
Please send promotions/new hire information to CTHRA's editor.
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New Members
We welcome these individuals who joined CTHRA in October and November:
Junique Burrell, Time Warner Cable
Tonya Carr, Time Warner Cable
Clarence Frazier, Time Warner Cable
Heather James, Time Warner Cable - Corporate
Nesa Khajehali, Discovery Communications Inc.
Carol Kratz, Cox Communications
Wendy Roys, Time Warner Cable - Corporate
Debbie Smith Rayford, Discovery Communications Inc.
Evelyne Steward, Discovery Communications Inc.
Gerard Zack SPHR, Cisco Systems Inc.
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