COMPENSATION ANALYSIS AND REVIEW SERVICES

Transcription

1 HEALTH WEALTH CAREER COMPENSATION ANALYSIS AND REVIEW SERVICES TAKING THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS

2 MORE INFORMATION Mercer s Compensation Analysis and Review System has been carefully conceptualized by Mercer experts after detailed research and close collaboration with our clients for their annual salary review process. The tools used for salary reviews, often spreadsheets, lend themselves to human error and as a result, many hours are lost struggling with outdated tools to audit the data and keep the compensation review process on track. 2

3 WITH MERCER S COMPENSATION ANALYSIS AND REVIEW SERVICES, YOU CAN SWIFTLY GAIN COMPETITIVE INSIGHTS Obtain 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 Obtain data analysis on company data to gauge internal parity and ensure alignment of actual pay practices to pay policy. ENSURE BUDGETS ARE USED WISELY THROUGH ANALYSIS OF PAY DISPERSION Obtain reports on statistics from 5th percentile to 95th percentile. USE MERCER S ONLINE COMPENSATION ANALYSIS AND REVIEW SERVICES TOOL TO GENERATE THE REPORT INDEPENDENTLY This online rewards tool is an off-theshelf software application that is simple to implement, genuinely easy to use and cost-effective. Allows for multiple customized analyses on compensation components to be conducted instantaneously, boosting effectiveness during your annual salary review. A customer service team will be available to advise on technical issues should you have problems with data inputs and report generation. WHAT S NEW? Enhanced the tool to cater to different countries/ regions outside Asia. With this enhancement now it is very easy for a multinational company or conglomerate to do the analysis for any country /markets with multiple peer groups. Regional HR representatives can run reports for respective countries by the click of a button, saving time and increasing accuracy. Added a new analysis Internal Grade and PC in the Report section. Map internal grades within your organisation to the Mercer s position class to gauge competitiveness & facilitate decision making at each grade level. Administrative access holders can help create additional users and assign respective countries. 3

4 VARIOUS ANALYSIS FROM MERCER S COMPENSATION ANALYSIS AND REVIEW SERVICES (SAMPLE OUTPUTS) 1. DEVIATION ANALYSIS BY JOB Analysis done at each incumbent level where deviation percentage is calculated against the actual market data for the Mercer job code (MUPCS) mapped, at all chosen percentiles based on the peer group selected. The tool also summarizes the number of incumbents falling below or above the market for quick decision-making. Country Italy Compensation chosen Annual Total Cash Actual Dated 2/2/ :52:24 AM Market Set My_peergroup Percentile chosen P25,P50,P75 JOB WISE REPORT Company Data Market Data Deviations % Employee ID Actual Title Job Code Mercer Title Internal Career Incumbent P25 P50 P75 P25 P50 P75 Grade Stream Salary Z0000PRQ Buyer - Entry - Supp Buyer - Entry - Supply & Logistics C 36 33,540-30, Z0005V0R Buyer - Senior - Sup Buyer - Senior - Supply & Logistics E ,628 42,373 51,637 56, Z0005V1B Customer Customer Relationship Representative - A 42 41, Z0005V1E Accountant - Senior Accountant - Senior D 34 46,693 36,820 50,672 58, Z0005V1F Accountant - Senior Accountant - Senior D 34 60,672 36,820 50,672 58, Z0005V1K Customer Service Customer Service Analyst - Senior - C 34 55,413-38, Z0005V1Q Buyer - Senior - Sup Buyer - Senior - Supply & Logistics E 34 63,364 42,373 51,637 56, Z0005V3V Accountant - Senior Accountant - Senior D 34 65,922 36,820 50,672 58, Z0005V4G Accountant - Senior Accountant - Senior D 34 44,851 36,820 50,672 58, DEVIATION ANALYSIS BY JOB FAMILY View average deviation at each Mercer Job Family or Sub Family based on Career Level/Stream for all compensation components. This analysis allows you to view market competitiveness at the department level and highlights focus areas for your organization. Country Italy Compensation Annual Guaranteed Salary Deviation By Family Market Set My_peergroup Percentile Used Median Dated 2/2/ :05:28 AM Career Stream & Level Professional Senior Grouping Mean 4

5 3. COMPANY TREND LINE ANALYSIS Regression is done for both the chosen peer market and the company data to assess the company s overall positioning at each Mercer Position Class (PC) for all compensation components. You can also view regressed data tables for accurate comparison. Country Market Set Compensation Philippines All_Data_PH Annual Guaranteed Salary Dated 2/19/2016 6:26:37 AM PC Company Trend MR10 MR20 MR30 MR40 Median Line 136, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,082, , ,489 1,040, , , ,266,245 1,003,663 1,123,259 1,232, , , ,480,969 1,182,779 1,327,428 1,460, ,830 1,040, ,732,104 1,393,859 1,568,706 1,730, ,632 1,220, ,025,826 1,642,608 1,853,838 2,050,590 1,139,992 1,432, ,369,355 1,935,751 2,190,798 2,429,510 1,326,603 1,680, ,771,138 1,543,761 1,972,305 2,281,210 2,589,007 2,878,450 1,796,468 2,314, ,241,053 2,688,321 3,059,598 3,410, COMPANY PRACTICE VS. POLICY You may view how incumbent scatter points on Actual and Average Pay compare against the Company Pay Policy line, so as to understand the company s actual pay practice against the established philosophy. Country Philippines Compensation Annual Total Cash Actual Grouping Mean Market Set All_Data_PH Percentile P60 Dated 2/19/2016 6:24:03 AM 5

6 5. INTERNAL EQUITY This report plots the actual salaries of all incumbents at each position class against the Minimum, Median and Maximum regressed lines of the company pay. It helps you to view pay equity between like-positions and the report highlights if all roles are governed by the same guidelines. 6. COMPENSATION MIX ANALYSIS The ratio between annual guaranteed (fixed) compensation versus annual variable pay is illustrated by each Mercer career stream and level for both market and company. Country Italy Variable Pay Type Actual Grouping On Mean Market Set My_peergroup Career Stream and Level Management Dated 2/2/ :07:25 PM Compensation Mix on Actual Guaranteed cash Variable cash Management Team Leader (Proffessionals) Mkt Career stream & levels Management Team Leader (Proffessionals) Co Management Team Leader (Para-Proffessionals) Mkt Management Senior Manager Mkt Management Manager Mkt Management Manager Co

7 7. PAY DISPERSION The Pay Dispersion index provides the scatterplot of compa-ratio of each incumbent at each Position Class against the index of 100% compa-ratio market reference salary. It helps you to see if incumbents are paid significantly lower/higher for a similar job size. Country Italy Compensation Annual Guaranteed Salary Grouping On Mean Market Set Dated 2/2/2016 My_peergroup Percentile P65 12:10:38 PM 8. INTERNAL GRADE AND PC Quickly assess your company s overall positioning at each internal grade level for all compensation components against a chosen peer market. The internal grade levels will be mapped to the Mercer Position Class ranges that you can choose to enter in the tool. Country Italy Compensation Annual Total Cash Actual Dated 2/2/ :12:43 PM Market Set My_peergroup Percentile P25,P40,P55 7

8 WANT A MERCER CONSULTANT TO HELP YOU INTERPRET THE COMPENSATION ANALYSIS AND REVIEW SERVICES TOOL RESULTS? CARS CONSULTING SERVICES A dedicated, experienced Mercer consultant will help you with your salary review process by sharing various kinds of analyses required to understand market competitiveness & internal parity issues. Based on our experience across industries, Mercer will identify the benchmarks that best represent your organization s compensation situation and utilize these in your report. Your consultant will also present the findings and recommendation to your management at a face-to-face meeting if required. WHICH CARS OPTION SUITS MY ORGANIZATION? GET THE COMPENSATION ANALYSIS AND REVIEW SERVICES ONLINE TOOL DO IT YOURSELF COMPENSATION ANALYSIS AND REVIEW SERVICES TOOL PLUS CONSULTING SERVICES MERCER GENERATED If Your Organization...needs to do quick and multiple tweaks to data and run all kinds of analysis at a click...needs quick help to do all kinds of analysis and wants a Mercer consultant to share key findings with stakeholders What s Included Access to the online tool for your multiple analyses Reports generated as Excel files Customer service support on your technical needs Access to the online tool for your multiple analyses Consolidated analysis report presented by a Mercer consultant along with key findings Consultant working closely to interpret the analyses based on your organization needs 8

9 SAMPLE OUTPUT OF EXECUTIVE SUMMARY PRESENTED BY THE MERCER CONSULTANT FOR COMPENSATION ANALYSIS AND REVIEW SERVICES RESULTS EXECUTIVE SUMMARY EXTERNAL MARKET COMPETITIVENESS Executive Summary [Company X] is well positioned above the market 60th percentile for all levels at annual base salary (Comp 1) [Company X] should review the 34% incumbents whose individual pay is below the market 60th percentile at Comp 1 as per job analysis even though the overall positioning at Comp 1 is above market 60th percentile. However, there are certain allowances prevailing in the market that are not part of [Company X] s compensation. As a result, the positioning drops closer to median for guaranteed cash (Fixed salary/ Comp 2). [Company X] s variable pay proportion is slightly lower than the market at junior levels, but has higher variable pay at management levels. As a result [Company X] s positioning at annual total cash (Comp 3 Target) varies with level below median at lower levels, above median at middle management and above 60th percentile for senior management levels. At an incumbent level, although 90% of the incumbents are above the market median at Comp 1 but only 40% of incumbents are above market median at Comp 3. Similarly, 55% of incumbents are above the 60th percentile at Comp 1 but only 30% above the 60th percentile at Comp 3. 9

10 PRICING (VALID FOR TOTAL REMUNERATION SURVEY (TRS) MEMBERS ONLY) COMPENSATION ANALYSIS AND REVIEW SERVICES - ONLINE TOOL USD 4,000 per user access per year for the first country USD 900 thereafter for every additional country USD 1,000 additional for data upload services per country COMPENSATION ANALYSIS AND REVIEW SERVICES - ONLINE TOOL PLUS CONSULTING SERVICES USD 5,000 per user access per year per country for the tool. Consulting services are available for any 1 peer group in a year. FOR MORE INFORMATION: 10

11 FOR QUERIES ON THE COMPENSATION ANALYSIS AND REVIEW SERVICES TOOL, CONTACT: CLIENT SOLUTIONS TEAM, ASIA E: T:

12 For further information, please contact your local Mercer office or visit our website at: Mercer LLC. All rights reserved.