1. Human Resource & Workforce Analysis
Report for the Private Club Industry
August 17, 2017

2. Presentation Overview
Club Benchmarking Mission
Comments on Survey and Report Methodology
What We Have Learned
Executive Summary
Overview of Human Resource Expense
Overview of Payroll Taxes and Benefits
Individual Position Benchmarks
Discussion

3. Connecting each club and manager with the wisdom of the crowd
Our Mission and Vision
Healthier clubs, more empowered staff, and more strategic boards result by elevating fact over opinion
Why
Respectfully but passionately…
How
Connecting each club and manager with the wisdom of the crowd
What
The club industry’s single, standardized, centralized data-sharing platform

4. Comments on Survey and Report Methodology
Benefits of new Compensation & Benefits Analysis
The most up to data compensation ranges
Year-over-year trend analysis in staffing, benefits and wages
Strategic look at how staff are allocated throughout the club
More transparent, easier to interpret information

5. Comments on Survey and Report Methodology
Driving the Industry Forward
Carmel Country Club is a high volume, fun, family oriented club …We were referred to this past weekend as the “Top Golf” of country clubs, fun, wild and innovative!
We wanted to be able to have comparative data to keep us in line with hiring additional staff in time for our budgeting process.
Standards and Service Committee Formed this year – Focused on Service and increasing “Wow” moment. Question came about what is the “Optimal Staffing” needed throughout the Club to be able to consistently provide excellent service.
Department Heads to determine by position, by department how many employees they need to be able to provide consistently exceptional service. If approved by senior management their proposals will be submitted with their budgets for approval by finance committee and board for 2018.
The goal is to answer the question “Is Carmel CC staffed at a level that balances the club’s financial results and the members service expectations?” That is what Ray & his team they have set out to do…

6. Changing the Dialogue: A Common Framework
CAGR 8.7%
CAGR -3.9%
Carmel has invested heavily over the last ten years.
Their Net Worth (Member’s Equity) has increased at a Compounded Annual Growth Rate of 8.7% - very close to the top of the industry
Their Initiation Fee has increased consistently over that period.

7. Changing the Dialogue: A Common Framework
CAGR
25th = -1%
Median = 2%
75th = 5%
Google Equity 5 Yr. 18%
Walmart Equity -.3%
Top Club = 11.6%
Can only increase Net Worth with significant Capital Income
Carmel CC
Club XYZ

8. Comments on Survey and Report Methodology
This report provides a comprehensive analysis of 2016
staffing allocation and payroll expense for Carmel Country Club
Answering the question… “Is Carmel Country Club staffed at a level that balances the club’s financial results and the members’ service expectations?”
Peer set comparison of payroll and benefits
This preliminary analysis benchmarks Carmel Country Club against the 85 clubs that have submitted payroll reports in 2016 and 2017.

9. Comments on Survey and Report Methodology
Mapping Payroll Reports
13 Standard Departments
155 Standard Positions
4 Standard Employment Statuses
Org chart
Salary hourly hybrid

10. Executive Summary
The club’s total operating revenue in 2016 was $18,673,265 falling at the 83rd percentile in the comparative set.
Total Operating Revenue for Golf Clubs that submitted a payroll report (85 Clubs)

11. Executive Summary
Total Payroll includes all salaries, wages, payroll taxes and benefits.
The total salaries & wages expense for Carmel Country Club falls at the 79th percentile.
The total payroll taxes and benefits expense for Carmel Country Club falls slightly lower at 75th percentile.  
Total Operating Revenue for Golf Clubs that submitted a payroll report (85 Clubs)

12. Executive Summary
The payroll to operating revenue ratio is a critical Key Performance Indicator (KPI).
The median payroll to revenue ratio for the industry is 56%. Payroll is the largest single expense in a club.
The median payroll ratio for this peer set is 56%
The payroll ratio for Carmel was 53% in 2016.
There is a correlation between the payroll ratio and operating results – clubs with lower ratios tend to generate operating surpluses while those with higher ratios tend to generate operating deficits.
Operating Result (Median)
$258,000
$134,000
($150,000)

13. Overview of Human Resource Expense in Clubs
Peak employee count is the highest number of employees on staff during the year.
Carmel’s peak employee count is at the 73rd percentile indicative of headcount falling in line with the club’s revenue.

14. Overview of Human Resource Expense in Clubs
Carmel’s cost per full time equivalent employee falls nearly at the 25th percentile.
Full Time Equivalents = total number of hours worked divided by 2080 which is the number of hours in hour workweeks.
New graph

15. Payroll to Salary & Wages vs. Payroll Taxes & Benefits to the Peer Set
Overview of Human Resource Expense in Clubs
Payroll to Salary & Wages vs. Payroll Taxes & Benefits to the Peer Set
Payroll to Salary & Wages vs. Payroll Taxes & Benefits to Clubs with Golf
The slope of the lines indicates that the ratio does not vary significantly across the industry.

16. Overview of Human Resource Expense in Clubs
The breakdown of Carmel’s labor expense by department for the most part is in line with the allocation of labor expense in this peer set. Note that some clubs in the peer set operate yachting operations and/or guest rooms.

17. Overview of Human Resource Expense in Clubs
Departments not represented in this peer set include:
Youth Services, Yachting, Spa and Other.

18. Overview of Human Resource Expense in Clubs

19. Overview of Human Resource Expense in Clubs

20. Overview of Human Resource Expense in Clubs

21. Overview of Human Resource Expense in Clubs

22. Overview of Payroll Taxes and Benefits

23. Overview of Payroll Taxes and Benefits
Carmel’s healthcare insurance expense is $3,224 per full time equivalent employee (27th percentile). The mid-range expense for the comparative set is between $3,201 (25th percentile) and $5,551 (75th percentile) per full time equivalent employee.

24. Overview of Payroll Taxes and Benefits
In this peer set, total healthcare expense as a percentage of the club’s total payroll ranges from 3% to 11%. At the midrange for this peer set, there is less variation, with half the clubs investing between 5% and 7% of their total payroll for healthcare insurance. Carmel is in the mid-range at 6% (44th percentile).

25. Overview of Payroll Taxes and Benefits
100% of the clubs in the peer set offer 401k to their employees
Carmel Country Club

26. Overview of Payroll Taxes and Benefits
Carmel Country Club

27. Overview of Payroll Taxes and Benefits
Carmel Country Club

28. Overview of Payroll Taxes and Benefits
Payroll ratio 53%
Payroll ratio 56%
The club’s executive team includes:
- Head of Club - Head of Finance - Executive Chef - Head of Food & Beverage
- Head of Golf - Head of Greens & Grounds - Head of Tennis - Human Resources Director
- Membership Director - Head of Fitness - Director of Communication/Marketing

29. Background Benchmarks
Assistant Golf Pro
Compensation and Benefits
My Club's Range
Background Benchmarks
% Reporting Given Perk
Metric
Low
Median
High
10th Percentile
25th Percentile
75th Percentile
90th Percentile
Base Pay
Hourly Base Range
$11
$13
$16
$18
$23
57%
Salary Base Range
$50,000 (100th)
$22,880
$25,550
$33,280
$36,770
$47,840
43%
Effective Rate
24 (78th)
$14
$31
100%
Bonuses
Performance Bonus % 3% 5%
20%
Performance Bonus $
$1,500 (57th)
$345
$500
$750
$1,375
$4,900
14%
Holiday Bonus $
$100
$269
$489
$704
$975
56%
Variable Pay
Commissions/Lesson Income
$109,391(100)
$315
$1,061
$7,077
$13,610
$24,675
Gratuities 0%
Auto Allowance
Clothing Allowance
Competitive Dining Allowance
Education Allowance
1500 (65th)
$324
$509
$1,000
$1,750
$2,300 8%
Housing Allowance
Other Allowance
$3,000
Benefits
Clubs Total Contribution to 457b
Clubs Total Contribution to 457f
$1,000 (5th)
$4,800
$6,000
$8,000
$10,925
$12,680
15%
$ Value of Life Insurance Plan
$20,000
$25,000
$30,000
$49,429
$50,000
Total Compensation
Assistant Golf Pro
Demographics
Number of Respondents 20
FLSA Status
35%
Exempt
65%
Non-Exempt
Hire Status
Year Round Full Time 0%
Year Round Part Time
Seasonal-Full Time
Seasonal-Part Time
Other

30. Background Benchmarks
Executive Chef
Compensation and Benefits
My Club's Range
Background Benchmarks
% Reporting Given Perk
Metric
Low
Median
High
10th Percentile
25th Percentile
75th Percentile
90th Percentile
Base Pay
Hourly Base Range
Salary Base Range
$118,114 (24th)
$86,156
$120,773
$147,351
$169,120
$204,971
100%
Effective Rate
$204,941
Bonuses
Performance Bonus % 3% 5%
10%
45%
Performance Bonus $
$9,500 (19th)
$5,819
$10,000
$13,206
$18,333
$24,227
77%
Holiday Bonus $
$462
$671
$930
$2,225
$4,460
55%
Variable Pay
Commissions/Lesson Income 0%
Gratuities
Auto Allowance
$3,300 
$3,750
$4,500
$5,250
$5,700 9%
Clothing Allowance
$1,000 
$1,000
Competitive Dining Allowance
$775 
$1,150
$1,750
$2,500
$3,700
36%
Education Allowance
$5,000 (20th)
$4,000
$5,000
27%
Housing Allowance
Other Allowance
Benefits
Clubs Total Contribution to 457b
Clubs Total Contribution to 457f
$ Value of Life Insurance Plan
$32,000
$87,500
$137,500
$224,063
$483,225
Total Compensation
 $132,614 (24th)
 $86,561
$133,423
$161,908
$193,194
$220,931
Executive Chef
Demographics
Number of Respondents 22
FLSA Status
100%
Exempt 0%
Non-Exempt
Hire Status
Year Round Full Time
Year Round Part Time
Seasonal-Full Time
Seasonal-Part Time
Other

31. Individual Hourly Position Benchmarks
* 2016 range in peer set of clubs more than $15 million in revenue (20 Clubs)