For the first time in 15 years, construction equipment dealerships were included in the Employee Compensation Survey. The three main reasons for their inclusion were the increase in dual ownership of agricultural and construction equipment dealerships, a larger geographic base so more construction equipment dealers could report, and the change in the number of larger multi-store agricultural equipment dealerships which now operate like multi-store construction equipment dealerships.
When we conducted the last Iowa-Nebraska Equipment Distributors (construction equipment dealership) employee compensation survey, there were noticeable differences in wages paid by construction and agricultural equipment dealers. That is not true today. More now than ever, construction and agricultural equipment dealerships compete for the same skilled employees.
This survey was conducted in cooperation with the Iowa-Nebraska Equipment Dealers Association and Pioneer Equipment Dealers Association. The 5-state area includes Iowa, Nebraska, Minnesota, South Dakota and North Dakota. 55 firms completed the survey representing 376 locations. Nearly 16% were exclusively construction equipment dealerships or dual-purpose dealerships. The last Iowa-Nebraska Equipment Dealers Association survey was conducted in 2021.
I’ve been analyzing the data for at least 25 years for the Association, and it is always interesting to see where the largest change in compensation occurs. Sales personnel compensation is the most variable due to the economic conditions at the time of the survey since a large percentage of their wage is based on commission. In the last survey, location/store managers made the biggest jump at 19% over two years.
This year, the winner was Entry Level Service Technicians. Their total compensation leaped 45% over 3 years (13% annually). This is no surprise as it seems everyone is looking for technicians. Naturally there was a trickle up effect so Top Technician compensation increased nearly at a 7.4% annual pace. The hourly rate for entry level technicians increased 9% annually, whereas for top technicians it was 10%.
These past years, dealers also report the difficulty of hiring parts personnel. What was interesting in the results was that their hourly rate jumped 20%, but their total compensation only changed 10% from 2021. Commission and bonuses dropped by 66%, so it appears that dealers are offering more up front to lure employees.
This compensation survey also looked at the benefits that equipment dealers offer their employees. Tuition reimbursement, tool allowances, maternity/paternity leave, and HSAs are only a few of them. In many cases, there are a number of members that don’t offer any benefits across all types of employee benefits. Since members are competing for talent in localized areas, it’s valuable to keep in mind that local employers may be attracting labor by offering these benefits to their workforce.
The survey also showed the continued downward trend of employers requiring employees to work Saturdays year-round. In 2021, 60% of the employers required employees to work Saturdays year-round compared to 43% now.
Participants received complimentary survey results as a thank you for completing the survey. Non-participants can order the survey from the Association. The survey is $500 and will be received electronically. Should you have any questions about the survey contents, feel free to contact me at tomj@ineda.com or Mark Hennessey at markh@ineda.com. The next survey will be conducted in 2026.