Report provides comparative compensation and benefits data across distribution industries.

The National Association of Electrical Distributors (NAED) announces the results of its benchmarking survey, the 2008 Employee Compensation Report. Conducted bi-annually in conjunction with 30 other distribution trade associations, the survey provides detailed information on compensation and benefits amongst both NAED-member companies and amongst distributors in a broad range of industries. Survey results are based on 2007 data gathered in early 2008.

Electrical distributor employee compensation revealed modest increases between 2005 and 2007. "In distribution, compensation continues to be strongly influenced by profit performance," said the report's author, Dr. Al Bates of Profit Planning Group in Boulder, Colorado. He continued, "The 2006 report trac ked compensation results between 2003 and 2005 when sales were increasing rapidly, and large compensation increases followed along. For this report, sales results varied widely by line of trade. By the end of 2007, firms in some industries were feeling significant sales pressures, while other lines of trade were still experiencing moderate growth. That mixed message on sales needs to be noted in reviewing the 2008 results for compensation and benefits."

For the top management team, overall compensation increases for 2007 were between 3 and 5 percent. At the same time, the bonus component of compensation reached its highest level in recent history. Bonuses for the CEO accounted for about 35 percent of total compensation, reflecting a much more significant pay for performance approach to compensation.

The largest beneficiary of continued economic expansion was the outside sales force, whose compensation is tied to sales. Their compensation grew by an average of 16 percent. Operating employees' compensation rose by nearly 10 percent.

The report did not offer good news in the area of health-insurance costs, where the rate of cost increases continued their upward movement. One recognizable strategic initiative with regard to health insurance was a marked increase in the percentage of firms providing Health Savings Accounts. By 2007, a full 18 percent of the firms offered such programs.

NAED's Employee Compensation Survey offers comprehensive results in two volumes:

  • Vol. I - Contains compensation data specific to NAED member distributors, including benchmarks in executive and employee compensation, sales commission plans, outside sales policies, benefit programs and more.
  • Vol. II - Compiles data from all participating firms, reported by sales volume and geographic area. This report supplies the latest data on salaries and bonuses, as well as health, retirement, vacation and other benefits.

    Both Volumes I and II are conveniently presented in CD-ROM format.

    The 2008 NAED Employee Compensation Report is available for $95 for survey participants and $295 for non-participants. For more information or to purchase a report, contact NAED Customer Service at (888) 791-2512 or