The FMS Compensation and Benefits Study, a comprehensive analysis tailored specifically for the independent grocery sector, offers an in-depth look into current compensation trends and benefits packages across the industry, providing crucial insights for grocery store owners and managers.
FMS’ study examines wages—including hourly pay, salaries and bonuses where applicable—for 30 roles ranging from store manager to bagger. This comprehensive dataset is especially valuable for grocers committed to adapting their strategies to meet market demands and employee expectations in a period marked by significant upheavals in the labor market.
FMS Solutions President and CEO Robert Graybill explored the study results during a recent webinar hosted by NGA.
Here are some key takeaways from the discussion:
Wages vs. inflation. The mean U.S. annual wage in April 2024 was $65,470; the mean hourly was $31.48, with a median of $23.11. The seasonally adjusted average hourly earnings increased 0.3%, which was offset by a 0.4% increase in the Consumer Price Index, resulting in a drop in real earnings of 0.1%.
Pay is important, but benefits can make or break you. Inflation and wage growth are only one part of the overall formula. Benefits are twofold; one is the benefit and the other is to show you care about your employees.
About three-quarters of independent grocers offer health and retirement plans to their employees. Much of America is under-saved for retirement; employers can provide benefits relatively inexpensively by offering a pre-tax savings tool.
Fewer than two-fifths of independent grocers offer education benefits to their employees. Employers might attract and retain younger employees with a stepped incentive; for example, offer high schoolers a bonus for staying through graduation.
Only 17% offer management incentive plans. Drive key team members by driving their desire to earn more. Set goals on which they can have an impact. But be careful of certain metrics and how they can be impacted by the economy, e.g., sales during inflationary periods.
Wage increases across exempt and non-exempt employees averaged 4.9% with a slightly higher contribution from the cost-of-living increase versus the performance/merit increase. Raises among nonexempt employees were similar to exempt employees.
90% have budgeted raises for some or all of their employees for 2024. The average increase is 3.9%, with a median of 3.0%.
Grocers worry most about the minimum wage. It has replaced competition as their main concern over the past 5-plus years. There have been public policy and voter-approved minimum wage increases in all sectors of the United States.
Median salaries of key store positions: Store manager, $70,000; assistant manager, $50,000; deli manager, $44,325; grocery clerk, $14.50/hour; online order picker, $13/hour; cashier, $13/hour; bagger, $12/hour.
For more exclusive insights, view a recording of the complete webinar at https://attendee.gotowebinar.com/recording/5080345593667927472.
The complete compensation study is available from FMS Solutions.
