Helping Marriott Make Effective Pay Decisions by Optimizing Salary Survey Data

Transcription

1 Helping Marriott Make Effective Pay Decisions by Optimizing Salary Survey Data Bryan Briscoe, Director, Global Compensation, Marriott International Mark Avery, Founder and CEO, MarketPay Linda O'Shea, Associate Partner, Aon Hewitt April Fister, Consultant, Aon Hewitt Agenda Introductions Our Partnership Salary Surveys Data Mining Marriott Scenarios Salary Structures 1

2 Introductions Bryan Briscoe, Director, Global Compensation, Marriott International Mark Avery, Founder and CEO, MarketPay Linda O'Shea, Associate Partner, Aon Hewitt April Fister, Consultant, Aon Hewitt Our Partnership Vision statement is to be The world s favorite travel company. $13 Billion in Revenue 123,500 Employees Aon Hewitt is the world's preeminent human resources consulting and outsourcing firm with the resources, expertise, and global reach to solve the most pressing and complex people challenges that organizations face today. MarketPay is the leader in providing web-based market pricing and salary survey data management systems to the worlds leading organizations. 2

3 Our Partnership Vision statement is to be The world s favorite travel company. $13 Billion in Revenue 123,500 Employees Aon Hewitt is the world's preeminent human resources consulting and outsourcing firm with the resources, expertise, and global reach to solve the most pressing and complex people challenges that organizations face today. Our Partnership Aon Hewitt is the world's preeminent human resources consulting and outsourcing firm with the resources, expertise, and global reach to solve the most pressing and complex people challenges that organizations face today. MarketPay is the leader in providing web-based market pricing and salary survey data management systems to the worlds leading organizations. 3

4 Our Partnership Vision statement is to be The world s favorite travel company. $13 Billion in Revenue 123,500 Employees Aon Hewitt is the world's preeminent human resources consulting and outsourcing firm with the resources, expertise, and global reach to solve the most pressing and complex people challenges that organizations face today. MarketPay is the leader in providing web-based market pricing and salary survey data management systems to the worlds leading organizations. Maintaining Market-Based Pay Programs Marriott s Data Related Concerns: Return on investment for survey portfolio is marginal Matching company jobs to salary surveys is labor intensive Generic job codes make benchmarking difficult Job families typically have more levels than survey levels Refreshing and maintaining market data is time consuming Market volatility and limited data availability makes managing global market data a challenge 4

5 Salary Survey Participation How many salary surveys does your company typically participate in and/or purchase? More than 50 More than 100 Salary Survey Jobs What is the average number of jobs in a US general industry survey? 594 1,267 1,811 2,032 5

6 Salary Survey Data and Fees Aon Hewitt TCM Executive Total Comp by Industry Aon Hewitt TCM Management & Professional Culpepper Technology EmpsightLaw (Large Company) Mercer Finance, Accounting & Legal Mercer Information Technology Radford Global Technology Towers Watson CDB General Industry Executive Aon Hewitt TCM France Aon Hewitt TCM Germany Mercer TRS - France Mercer TRS Germany Towers Watson General Industry France Towers Watson General Industry Germany Towers Watson CDB Mid-Management, Professional & Support Western Management Marketing Total number of jobs? Total rows of market data? How much does it cost? 29,000 ~525,000 $68,000 MarketPay s Data Mining Functionality Marriott s survey results are all housed in MarketPay Data mining functionality allows the complete survey portfolio to be used to capture market trends 6

7 Data Mining What is data mining? Sifting through very large amounts of data for useful information Why use data mining? Increase the amount of data used in your analysis Shorten the amount of time you spend on your analysis Increase ROI on data investment Data Mining with MarketPay MarketPay reviews survey job descriptions and annually classifies and cross-maps all survey jobs Aon Hewitt s Accounting Senior Mercer s Accountant Senior Towers Watson s General Acctg Career = = We did this primarily to help our clients to find survey matches 7

8 Data Mining with MarketPay We realized that the way we had organized the survey data created new reporting capabilities to mine the survey data to answer questions like: How are IT executives in less than $10 Million scope cut paid compared to over $10 Billion? What are STI targets for Inside Sales Reps in Ohio, Texas and Florida? How are senior level general marketing positions paid relative to e- Commerce? Data Mining Comparing Data Cuts Pay rates are reported to be significantly higher in New York City. 8

9 Data Mining Comparing Functions HR paid higher to start, then Finance paid more at higher grade levels. Data Mining Comparing Publishers We always thought that Publisher C reported lower pay rates! 9

10 Data Mining Year over Year Trends Marriott Scenarios Marriott used Tableau to add visualization to the data gathered through data mining to tell a story: Year over Year Market Trends By Function By Level Geographic Differences Labor Market Trends 10

11 Marriott s Annual Market Analysis Former Approach Marriott reviewed year over year market data, by job, to gain insight into the market New Approach Used Data Mining to build a market data trend analysis Identified key areas of interest based on the changes in the survey portfolio Held proactive discussions with HR Generalists to review areas identified as major risk/flux points and seek their feedback Focused traditional, in-depth process on areas that may have the most impact or that still demand attention. Link to live demo in Tableau: briscoe#!/ 11

12 12

13 Marriott s Geographic Ad Hoc Requests Recent Questions: Is there a premium for Finance professionals in New York? Do Silicon Valley IT professionals make more than those in other locations? Are Lawyers paid higher in Washington, DC? 13

14 Data Mining with BLS Data Common Questions: What changes are happening over time that will likely change the labor pool and impact compensation? What localized areas are most likely to feel the most pressure on compensation? What markets have indicators for the most opportunity for growth? Where does the labor force most favor our industry and our type of jobs? 14

15 Source: Salary Structure Development Another application of Data Mining This new enhancement will be particularly useful for multi-nationals using survey data across multiple countries with global grading structures Reduce the work required AND enhance the use of survey data 15

16 Traditional Approach Senior Engineer Match survey jobs to your jobs HR Manager Accountant Director, Web Development Use benchmarks pricings to create salary ranges Problems with Traditional Approach It s a lot of job matching! Analysis could takes weeks and weeks if you have many countries to cover What if you only have a few jobs in a given country? 16

17 A Data Mining Approach Skip the job matching and do en-masse matching with your global surveys Match survey jobs directly to your grades Dir, Web Development Director, Finance Sr Engineering Manager Senior Engineer Org Design Specialist Database Administrator HR Manager Scientist Program Manager Accountant Marketing Specialist Desktop Support Structure Development with Data Mining Quickly summarize entire surveys by your grades Do this country by country to set midpoints 17

18 Enhanced Efficiency Weeks of work can be done in days or hours Use nearly all of the data in your surveys, not just a limited number of benchmarks Great for expansion into new countries, where you don t yet have jobs or matches Regional US Structures Quickly tabulate regional data cuts in the surveys Isolate the Northeast data cuts from your surveys 18

19 Requirements Needed: Consistent grading scheme across countries or regions A complete and accurate database of your survey information An ORGANIZED database of survey information Technology that can tie all of this together, run the reports, and develop proposed structures Optimizing Salary Survey Data Data Related Challenges Resolved Return on investment for survey portfolio is marginal Increased Return on Investment of survey portfolio Matching company jobs to salary surveys is labor intensive Decreased level of effort required Generic job codes make benchmarking difficult Easier to identify jobs requiring a deeper review Refreshing and maintaining market data is time consuming Reduced time required to refresh data Job families typically have more levels than survey levels Enhanced ability to view level movement Managing global market data is challenging Simplified way to create Global Structures 19

20 Q & A [email protected] aon.com/human-capital-consulting Linda.o [email protected] [email protected] [email protected] 20