Understanding CTHRA's Compensation Survey Each year, the Cable Telecommunications Human Resources Association (CTHRA) surveys cable operators and programmers on a wide range of compensation practices. The comprehensive survey establishes valuable, industry-specific benchmarks for compensation components such as base salary, management incentives, sales bonuses, and stock options. Hali Croner, president and chief executive officer for The Croner Company, spearheads CTHRA's compensation survey effort, authoring the survey with participant input and analyzing its results. Ms. Croner has nearly 20 years of consulting and research experience in the fields of compensation design and implementation. We spoke to Ms. Croner about CTHRA's Annual Compensation Survey and how it benefits cable and satellite companies as well as the industry as a whole. We share her insights below. Why is it important for companies in the cable and satellite communities to participate in CTHRA's annual compensation survey? “Effective administration of compensation demands valid, up-to-date data on the market rates of positions. With such data, management can make enlightened decisions on such issues as hiring and promotions. In addition, the data from the CTHRA Annual Compensation Surveys allow management to benchmark important jobs to local markets and comparable companies.” What is the scope of CTHRA's compensation survey? What elements of compensation are researched? “The CTHRA compensation surveys cover the entire range of compensation elements, i.e., base salaries, management incentives, sales incentives, and long-term compensation elements such as stock options or restricted stock. They also cover such compensation practices as salary budgets, the use of salary structures, and incentive practices. All organization levels are covered: executive to non-exempt. In 2007, the surveys collected data on 125,950 employees.” How do participating companies benefit? “Participating companies benefit by having current, industry-specific data to assess and adjust their compensation practices rather than hearsay, guess work, internal politics, or war stories.” What is the value of establishing industry-specific compensation benchmarks? “The cable and telecommunications industry has a large number of jobs that are unique to the industry and present in most or all companies in the industry. Compensation benchmarks enable companies in the industry to compete without suffering the penalty of overpaying or risking underpaying for key positions. In a word, compensation benchmarks enable participants to compete effectively for their human resources.” “How do companies use the benchmarks?” “Companies use compensation benchmarks like an air controller uses radar. They provide accurate, valid and current data … and help greatly to avoid midair crashes.” What compensation trends have you identified that are unique to the cable industry? “Cable programmers, particularly in the past few years, have had high turnover. As a result, compensation on the whole has not necessarily increased. Some companies have replaced former incumbents with lower salaries or have hired in at lower organization levels. “Cable operators have been more consistent in their overall compensation growth with salary growth rates that match general industry (~3% annually).” How does compensation and its various components in the cable and satellite industry differ from other industries? “Cable and satellite companies generally have more ‘traditional' pay programs that have a balance of base salary, short-term incentives and long-term or equity compensation.” What surprises have you uncovered during the course of your research for CTHRA? Have companies changed their compensation practices as a result of survey participation? If so, how? “Many companies regularly adjust their salary structures, incentive plans and long-term pay elements based upon data derived from the CTHRA surveys. Some companies have completely overhauled their compensation practices based upon data from the CTHRA surveys.” Why do you involve survey participants in development of the questions? “The survey participants are the ‘owners' of the surveys. The world of the participants is changing constantly; the survey must change with them. The survey can best be kept current and relevant with the intensive participation of the survey participants in the planning of the survey.” How do you address participant concerns about confidentiality? “In addition to the agreement that each participant signs prior to submitting data, we regularly remind the participants about the confidential nature of the survey findings. Further, it makes good business sense.” What report findings are shared with each participating company? “The survey reports present ‘central tendencies,' i.e., averages, medians and percentiles. No data can be traced to any participant. The survey's reporting rules further protect the anonymity of each participant's data by requiring a sufficient number of cases before even averages are reported. In addition to the standard survey report, for an additional fee, participants may request special cuts of the survey data or competitive assessment analyses.” Is there anything else you'd like to add about CTHRA's annual compensation survey? “Any company that currently does not participate in the CTHRA surveys may sign up for the 2009 survey now. With written commitment to participate in the 2009 survey, the company may purchase the 2008 survey results at a nonparticipant rate. If your company is interested, please contact Sabrina Smith, manager of client relations for The Croner Company. You can reach her at: 415-485-5543 or sabrina@croner.biz.”
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