MERCER S COMPENSATION ANALYSIS AND REVIEW SYSTEM AN ONLINE TOOL DESIGNED TO TAKE THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS

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1 MERCER S COMPENSATION ANALYSIS AND REVIEW SYSTEM AN ONLINE TOOL DESIGNED TO TAKE THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS

2 MERCER S COMPENSATION ANALYSIS AND REVIEW SYSTEM Mercer s Compensation Analysis and Review System (CARS) is an online rewards tool that has been carefully conceptualized by Mercer experts after detailed research and close collaboration with our clients for their annual salary review process. The tools of the trade, often spreadsheets lend themselves to human error and as the result, many hours are lost struggling with outdated tools to audit the data and keep the compensation review process on track. This online rewards tool is an off-theshelve software application that is simple to implement, genuinely easy to use, and cost-effective. It will help you to analyse your organisation s compensation both internally as well as externally in an effective and robust manner during the annual salary review process by allowing you to conduct multiple detailed analyses on a variety of compensation components before arriving at a final decision. Reward and retain key employees using a reliable tool that is carefully designed to help you conduct effective analysis on competitive pay levels throughout the market. The value of greater efficiency, reduced errors, and expert analysis and reporting translates into much better returns for your business WITH THE CARS ONLINE TOOL, YOU CAN IMMEDIATELY Gain competitive insights Conduct data analysis on pay levels to access market competitiveness by market, region or industry. Study compa-ratio against the market using your company pay philosophy and guidelines to understand competitive practices and gain insights into market pay mix policies. Ensure fairness with internal calibration Conduct data analysis on company data to gauge internal parity and ensure alignment of actual pay practices to pay policy. Review salary range Review existing salary range at each level to ensure objective, fact-based decisions around compensation by removing manual calibration. Assure budgets are used wisely with the ability to choose customised percentiles Produce reports on statistics from 5th percentile to 95th percentile (interval of 5 percentiles). Run regression reports using custom percentile. You can choose percentiles starting from the 10th percentile up to the 90th percentile ( interval of 10 percentiles) Get visibility on your analysis Convert analysis into ready to use Tables or Charts. Export reports as PDF or Excel. 2

3 REPORT OUTPUT OPTIONS 1. Job Analysis Report For every incumbent in your company mapped to MERCER MUPCs through International Position Evaluations (IPE) system, an analysis on chosen percentile can be prepared based on the Market peer group selected. This report calculates the deviation of the incumbent data from the market chosen. This tool allows you to choose percentiles starting from 5th Percentile to 95th percentile (interval of 5 percentiles). 2. GAP Analysis Report You can prepare deviation reports on the chosen market based on Family or Sub Family. The market deviation is calculated based on Career Level/Stream chosen and Compensation items Comp1, Comp2, Comp3 (Actual) or Comp3 (Target). 3

4 3. Company Trend Line Line of Best fit can be created using company trend line options. A smooth regressed line will be prepared for the selected market and company data. The graph provides you with a view of your company data by plotting each incumbent s data against the position class. 4. Company Practice vs. Policy Helps you understand the competitive pay practice for every incumbent against the market percentile as per Company s pay policy. It has the ability to draw incumbent s salary as scatter points. 4

5 5. Internal Equity Allows you to view compensation gaps within the same level or grade. The report prepares Min, Median and Max values followed by line of best fit using these 3 values. The graph allows you to plot individual scatter points. 6. Compensation Mix Analysis The ratio between annual guaranteed (fixed) compensation versus annual variable bonus can be generated by career level. A visual representation in the form of a graph will highlight the difference between the market and company data. 5

6 7. Pay Dispersion Dispersion reports can be created on the percentile chosen starting from 5th to 95th percentile at every 5 percentiles interval, using the market as a base with an index of 100 and then plotting the company data over it, superimposing incumbent s data on the graph. 6

7 The value of greater efficiency, reduced errors, and expert analysis and reporting translates into much better returns for your business CARS online tool is a powerful system with all the right features in a small package. What we developed is driven by our deep understanding of what HR needs and what makes the annual salary review an easier process to manage. With user interfaces that are intuitive, you will become a user expert in no time. Don t just listen to us, find out if this suits your needs. Prices start from an affordable USD 4,000. If you have special requirements, we ll work with you to input the information that is most valuable to your business. CONTACT visit to learn more 7

8 For further information, please contact your local Mercer office or visit our website at: Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Finland France Germany Hong Kong India Indonesia Ireland Italy Japan Malaysia Mexico Netherlands New Zealand Norway Peru Philippines Poland Portugal Saudi Arabia Singapore South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom United States Venezuela Copyright 2015 Mercer LLC. All rights reserved.

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