The U.S. composting industry is a fast-growing sector that continues to be steeped in small business and lean, fluid workforce practices even as it grows through consolidations and acquisitions, the US Composting Council’s first-ever payroll and benefits study has found.
Originally launched to enable USCC members to benchmark salaries and benefits (including paid time off, employee-sponsored insurance, retirement plans, and professional development opportunities) against others in their region and size categories, the study found that job titles and duties are diverse across the industry to accommodate fast-growing organizations. Those responding to a call for data included private companies, publicly run facilities, and non-profit organizations. The report can be downloaded on USCC’s website.
“We have always known we are an industry grounded in the American way of small business entrepreneurship, which can mean stretching precious dollars as we grow and being flexible with multifaceted duties for employees,” said Executive Director Linda Norris-Waldt. “The challenges our respondents had in pinning down standardized job titles across the industry has highlighted that even as some in our industry have grown into established companies and organizations, many compost organizations are still fully in growth mode with many employees filling hybrid, dual-duty positions.”
The USCC hired compensation experts Compensation Resources to contextualize the results when it became evident that the standardized job titles chosen to collect data were a challenge for respondents to the year-long benchmarking study. Their report, Compensation and Industry Trends Whitepaper, (which can be found on USCC’s website) explored the still-nascent workforce development in the industry. Some key points from the report include:
- Data collected from respondents on compensation and benefits included indicators that the composting industry is still in its “growth” phase, characterized by rapid increases in demand, the innovation and creation of technologies and business processes, and the entrance of new firms. Companies may be focused on scaling up operations, engaging in marketing to reach potential customers, and accessing capital to fuel growth.
- The number of employees and establishments in the industry have both grown approximately 50% since 2022 while average weekly wages have grown 34%
- The average retention rate for respondents fluctuated between 85% and 95% depending on the quarter.
There is currently no comprehensive national or federal data about the composting industry, although a North American Industry Classification System (NAICS) code instituted in 2022 after years of pressure by USCC on the US Census Bureau is just beginning to collect more data. A range of studies indicate that the industry has between 2,000 and 3,000 composting facilities of varying sizes, about a third of whom have been active members of the trade organization.
An economic study conducted in 2021, showed that in the five years prior to the study the industry had grown 55% by facility numbers and 83% in tonnage processed. A follow-up study will be conducted in 2027 of 2025 facility economic data.