MERCER WEBCAST SERIES

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1 HEALTH WEALTH CAREER MERCER WEBCAST SERIES TACKLING TRENDS IN TURNOVER JUNE 23, 2016 Patrick Gutmann Principal Frankfurt, Germany

2 WELCOME TODAY S PRESENTER Questions To submit a question, use the floating panel on the top of your screen and click the Q&A button: Patrick Gutmann CLICK HERE TO ASK A QUESTION TO ALL PANELISTS. Sector Leader Europe MERCER

3 TRENDS IN EMPLOYEE TURNOVER What s New What Can We Do? Q&A MERCER

4 THE MEASUREMENT CONTINUUM WHAT IS HAPPENING? WHY AND WHERE IS IT HAPPENING? Simulations & Forecasting Causation Benchmarks Correlations Anecdotes Reactive checks Ongoing reports Less Powerful Measurement Continuum More Powerful MERCER

5 DATA FEATURED TODAY HIGHLIGHTS MERCER COMPTRYX Workforce Metrics On- demand analytics and industry peer benchmarking for 20+ critical metrics including payroll cost, productivity, organizational leverage and turnover Labor Cost Modeling Enables instant virtual organization design to model payroll costs in 85+ countries around the world Global Salary Survey Global pay data with a database of nearly 3 million records for 250+ jobs MERCER

6 MERCER COMPTRYX WORKFORCE METRICS Profile your organization against the competition Financial Function Demographics Level Location FULL ANALYTICAL CAPABILITY YOU VS. YOUR MARKET MERCER

7 TURNOVER RATES - EMPIRICALLY BASED TOTAL TERMS DIVIDED BY AVERAGE POPULATION One of several employment rate calculations in Mercer Comptryx Average Population = (Beginning + Ending Headcount / 2) MERCER

8 KEY LEARNINGS TRENDS IN TURNOVER KEEP PEELING BACK THE ONION CONTEXT MATTERS DON T FORGET TOTAL TURNOVER MERCER

9 KEEP PEELING BACK THE ONION MERCER

10 VOLUNTARY TURNOVER BY FUNCTION GLOBAL VS EUROPE 15% GLOBAL Voluntary Turnover 12.6% 12.7% 10% 9.6% 7.1% 7.6% 8.6% 9.6% 9.6% 10.4% 10.9% 5% 0% 15% 10% 5% Global 7.1% IT 5.5% Legal R&D 6.0% 6.4% PS 7.1% CS EUROPE Voluntary Turnover 7.6% 7.7% 9.7% 9.9% 11.0% 0% Europe overall IT PS R&D Legal Marketing CS HR Sales Finance Marketing HR Sales Finance APAC: 13,5% US: 8,1% MERCER

11 TURNOVER (VOLUNTARY AND INVOLUNTARY) BY LOCATION 25.00% Western Europe Eastern Europe 20.00% 15.00% 10.00% 5.00% 0.00% 6% 7% 3% 2% 9% 5% 3% 3% 7% 4% 4% 4% 4% 4% 5% 5% 11% 7% 7% 6% 6% 6% 8% 5% 5% 4% 3% 8% 8% 8% 8% 9% 9% 1% 2% 4% 3% 3% 6% 6% 8% 8% 13% 6% 3% 2% 10% 11% 12% 12% 2% 16% Europe Finland Greece Italy Austria Belgium Germany France Spain Netherlands Switzerland Sweden Norway Denmark United Kingdom Ireland Slovenia Serbia Slovakia Czech Republic Russia Ukraine Bulgaria Poland Hungary Romania Turnover Rate in % Turnover Rate (Voluntary) Turnover Rate (Involuntary) MERCER

12 VOLUNTARY TURNOVER BY LEVEL EUROPE NEW HIRE RATE VS TURNOVER BY LEVEL E - Exec 7.4% Turnover Rate (Voluntary) 7.4% New Hire Rate M - Mgmt 4.7% 7.5% P - Prof. (All) 7.1% 15.9% S - Supp. (All) 9.6% 21.2% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% MERCER

13 VOLUNTARY TURNOVER BY LEVEL EUROPE: R&D AND SALES PROFESSIONALS 20% 15% 18.1% 15.3% Sales Voluntary Turnover 10% 10.7% 9.3% 6.9% 7.9% 5% 0% 15% 10% P1 - Entry 11.4% P2 - Dvlpng 9.6% P3 - Proficient P4 - Mastery 6.8% 5% 5.1% 4.1% 2.9% 0% P1 - Entry P2 - Dvlpng P3 - Proficient P4 - Mastery P5 - Expert P6 - Advisory R&D Voluntary Turnover P5 - Expert P6 - Advisory MERCER

14 VOLUNTARY TURNOVER BY GENDER EUROPE Overall Career Level Support Sales Function 10% 10% 9.6% 10% 9.9% 7.7% 8.9% 6.5% 6.7% 5% 5% 0% 0% 5% Female Male Female Male Female Male MERCER

15 CONTEXT MATTERS MERCER

16 VOLUNTARY TURNOVER AROUND THE WORLD PROFESSONAL LEVEL TECH- FOCUSED INDUSTRY MERCER

17 WHAT FUNCTIONS ARE PRESENT AND MOST CRITICAL IN THE UK? % of Headcount Professionals UK by Function 40% 35% 30% 25% 20% 38% 15% 10% 16% 18% 5% 0% 3% Admin Operations Services R&D The analysis indicates that in the UK the mojority of the professional headcount is in the Services and the Sales & Marketing Function. 25% Sales & Marketing MERCER

18 AND WHERE ARE THE TOP PERFORMERS? 40.00% 16.00% % of Headcount 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 12% 16% 6% 14% 38% 12% 18% 10% 25% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% Top Performer 0.00% 3% 0.00% Admin Operations Services R&D Sales & Marketing and most of the Top Performers can be found in Services and R&D and Admin. MERCER

19 FINALLY WHAT FUNCTION IN THE UK SHOWS THE HIGHEST TURNOVER? 40.00% 35.00% 12% 14.00% 12.00% % of Headcount 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 8% 16% 9% 7% 38% 8% 18% 25% 10.00% 8.00% 6.00% 4.00% 2.00% Turnover (voluntary) 0.00% 3% 0.00% Admin Operations Services R&D Sales & Marketing Whereas higherst turnover can be found in Sales & Marketing MERCER

20 DON T FORGET TOTAL TURNOVER MERCER

21 TURNOVER BY LOCATION VOLUNTARY AND TOTAL TURNOVER 25% VOLUNTARY TURNOVER 20% 15% 14.06% 11.44% 11.41% 15.81% 13.17% 13.82% 10% 7.85% 6.85% 5% 0% China Hong Kong South Korea Thailand India Japan Phillipines Singapore 25% 20% 19.24% 17.37% TOTAL TURNOVER 20.21% 18.07% 20.32% 19.66% 15% 10% 12.08% 13.23% 5% 0% China Hong Kong South Korea Thailand India Japan Phillipines Singapore MERCER

22 SUMMARY TRENDS IN TURNOVER KEEP PEELING BACK THE ONION CONTEXT MATTERS DON T FORGET TOTAL TURNOVER Start with the aggregate and drill down to the details through different lenses. Contrast your turnover data with other factors.. Voluntary turnover is just part of the reason why people are leaving. MERCER

23 WHAT NEXT AND WHERE TO GO? Thursday, 30st June 10 o clock Mercer Comptryx Discussion Group Mercer Comptryx Website Webcast: Understanding People Cost nkedin.com/gr oups/ comptryx.com MERCER

24 QUESTIONS? Patrick Gutmann Sector Leader Europe QUESTIONS Please type your questions in the Q&A section of the toolbar and we will do our best to answer as many questions as we have time for. To submit a question while in full screen mode, use the Q&A button, on the floating panel, on the top of your screen. FEEDBACK Please take the time to fill out the feedback form at the end of this webcast so we can continue to improve. The feedback form will pop-up in a new window when the session ends. CLICK HERE TO ASK A QUESTION TO ALL PANELISTS MERCER

25 MERCER

41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50.

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