Hay Group Egypt IT Sector Forum 27 th April 2015 Cairo, Egypt
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Agenda 09:00 09:30 Registration 09:30 09:45 Eitesal Overview 09:45 11:15 About Hay Group, Hay Group Activate App, Compensation & Benefits Survey Requirements 11:15 11:30 Networking and Coffee Break 11:30 12:30 Survey Deliverables Egypt Market insight and IT sector Report plan of action 12:30 12:45 Q&A session 3
Hay Group around the world & MEA region Established in 1943 in Philadelphia Started working in the MEA region in late 70 s Vast presence with data in 120 countries around the world MEA presence 35 countries in the region Approximately worldwide Over 3,200 employees 22,000 clients Approximately 150 employees in the MEA Region working with more than half of the Fortune 500 Over 4,500 clients working in the MEA region 4
JE Hay Group global businesses and practices Consulting Expertise services Business solutions Exec remuneration Exec coaching Top team work BEO L&T Reward Insight Experts, advisers CRDs / Account Managers Business leaders HR services L&T Reward BEO HR Productized Services Packaged productized / services Pay Talent Effectivenes s Direct sales On demand 5
Hay Group has taken its 70 years of research and experience and channeled it into a new suite of powerful off- the-shelf tools that will help you find, reward and develop the talent within your organisation and maximise your return on investment in your people.
Our offerings split into three core areas Talent zone Select and develop your employees Effectiveness zone Engage and enable your people Pay zone Pay the right amount
Applications across the talent lifecycle Recruitment Trait report Role Match Profile Potential Potential Report Development Profile Talent Q Individual development Behavioural Type Profile Development Profile Team building and development Team Report
What is ILS OCS? Hay Group s ILS OCS assessments measure the leadership styles and dimensions of climate that have the biggest impact on team performance Leaders who can draw from a wide range of leadership styles tailoring their behavior to suit the demands of a situation create positive climates that energize team members and focus them on doing their best work Leaders who choose from a narrow range of leadership styles create mediocre climates which dampen motivation and diminish performance Leadership styles 50-70% of the variance in organizational climate can be explained by differences in leadership style Organizational climate Results Up to 30% of variance in bottom line performance can be explained by differences in organizational climate ILS OCS is a 180 survey that collects data form the managers and their direct reports ILS Contains 68 questionnaire items Reports on 6 leadership styles Compares managers perceptions to team perceptions OCS Contains 47 questionnaire items Reports on 6 climate dimensions Shows the actual and ideal climate ILS OCS is available in over 30 languages including Arabic
Hay Group Activate Hay Group Activat Helping your e people make your strategy happen
Activate Styles and Climate App Styles and Climate It s a coach in the pocket, helping managers to create an automatically scheduled bespoke development plan of impactful but do-able daily tasks Gamification elements keep managers glued to the app, creating stickiness HR can monitor and assess manager s progress Use of gamification techniques can enhance employees ability to learn by as much as 40%
Activate Job Grading App Grade a job Thinks like a manager in terms of people, not jobs Based on Hay Group s leading job evaluation methodology Pre-loaded with a company s grading structure and the line managers team Managers can quickly and easily view the level of a job HR remain in control
Activate Job Pricing App Price a job Based on Hay Group PayNet, the industry leading pay and benefits database Pre-loaded with company salary bands Comparison across countries HR remain in control of what data is accessed and seen
Activate - Job Description Job description Makes sure managers are looking for the right skills when hiring. Is flexible allowing you to edit roles to suit your business. Builds a robust foundation of roles across your business. Packed with 70 years of people expertise from the pioneers of job evaluation.
Activate Journey For Graduate Hires Journey Designed for new graduate recruits already in the workplace Helps develop their emotional and social skills so they can make an impact in the workplace more quickly Pushes graduates out into the workplace to learn on the job Paced development program over 4 months Fun, engaging and mobile Based on Hay Group s extensive knowledge of EI and learning styles
Annual Pay & Benefits Survey Cycle Survey Launch Our annual survey approach Hay Group PayNet Training Mid Year Update Individual Feedback Meetings Egypt Compensation and Benefits Study Client Meeting Data Collection Job Mapping Main Findings Survey Analysis 16
Survey Requirements Electronic Datasheet: Hay Group Excel datasheet with columns relevant to salary, allowances and bonus practices Policy Questionnaire: Our detailed policy questionnaire enables you to submit your HR related company policies Job Mapping: In order for us to accurately size your data against the Hay Group Reference levels: Job Descriptions (for up to 50 benchmark jobs) Organisation Structure(s) Financial dimensions of the organisation 17
Our Survey Methodology Different methods for job comparison TIME INVESTMENT Job Title matching Job Matching with job descriptions Job Status (hierarchically) matching Job Evaluation Job Mapping with structured approach and evaluated job descriptions Many of our competitors use Job Title Matching however this methodology is not robust for detailed analysis. Hay Group s methodology takes into account the scope of the job and size of the company. VALUE ADD 18
Our Survey Methodology Hay Group Levels: Job Evaluation Criteria What are the requirements necessary to take over the position? KNOW-HOW ACCOUNTABILITIES In what way does the position have influence on company s results? PROBLEM SOLVING What are the problems to be solved and how are they treated? 19
Step Differences 15 Higher Job 14 Higher Job 13 Higher Job 12 Lower Job Lower Job Lower Job Hay Group Level 1 STEP Career Ladder Promotion The logical next step 2 STEPS Normal/Solid Promotion 3 STEP Career Ladder Promotion The logical next step 20
A typical 1 & 2 Hay Step move Typical sales department 19 Regional Sales Manager 18 17 Area Sales Manager Area Sales Manager Area Sales Manager 16 Senior Sales Representative Senior Sales Representative Senior Sales Representative 15 Sales Representative Sales Representative Sales Representative 14 Hay Group Reference Level 21
Hierarchy Structure JobMapping SM Example Internal Hierarchy Grading Structure Job Family Mapping Internal Relativity IT JOBS SALES JOBS HR JOBS Job 3 Job 3 Job 3 Job 2 Job 2 Job 2 Job 1 Job 1 Job 1 22
Comparisons with similar jobs in other Organisations 18 IT JOBS IN COMPANY A Job 3 IT JOBS IN COMPANY B IT JOBS IN COMPANY C Job 3 17 Job 2 Job 3 16 Job 2 15 Job 1 Job 2 Job 1 14 Job 1 Level 23
JobMappingSM Matrix - Example Hay Group will be using its JobMapping SM methodology to size the jobs. More importantly, we closely work with the organisations and understand the size of the roles & complexities 2015 Hay Group. All Rights Reserved 57
Hay Group IT Sector Family and Sub-Families 92 Jobs in the IT, Call Centre and Customer Service Job Families in the Hay Group Job Model Application Development Infrastructure Development Information Technology / Internet-based Technology Technical Operations and End User Support Data Management and Security Service Level and Process Management IT Consultancy Internet-Based Services and Support Call Center Customer Service Technical Non Technical Inbound and Outbound 25
Agenda 09:00 09:30 Registration 09:30 09:45 Eitesal Overview 09:45 11:15 About Hay Group, Hay Group Activate App, Compensation & Benefits Survey Requirements 11:15 11:30 Networking and Coffee Break 11:30 12:30 Survey Deliverables Egypt Market insight and IT sector Report plan of action 12:30 12:45 Q&A session 2
Egypt Survey Deliverables IT Sector Report Feedback Reports Online Database Access Hay Group PayNet Mid year Updates & Up to date Market Studies Year Round Support
Overview on PayNet It aids to extract data via locally consolidated parameters Provides access to benefits prevalence practices of local importance Data aggregates are based on local country requirements underpinned by the global methodologies Data on PayNet is available in local currency of the respective country PayNet is specifically designed for reward managers PayNet is Hay Group s online portal covering the reward practices www.haygrouppaynet.com 28
Example of Customized Peer Group Analysis Feedback Benchmark Report Example Objective This task supports organisations in identifying gaps in its current compensation positioning against other organisations to which they can lose and gain human capital and in understanding the pay practices within the selected peer group companies in Egypt. The external market competitiveness are delivered for Basic Salary, Base Salary and Total Cash against all organisations and selected peer group markets. *The chart shown above is for graphical purposes only 29
2014 Egypt reward database 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 293 262 212 217 208 177 140 85 2007 2008 2009 2010 2011 2012 2013 2014 300 250 200 150 100 50 0 >180,000 employees 293 companies
Hay Group provides insight across sectors 3% 4% 4% 4% 4% 2% 5% 2% 2% 6% 1% 1% 1% 22 sectors 7% 8% 16% 12% 13% Fast Moving Consumer Goods Oil and Gas Industrial Goods Construction and Materials Chemicals Banks Financial Services Natural Resources High Technology Retail Services Consumer Durables Life sciences Transportation Telecommunications Utilities Insurance Healthcare Leisure and Hospitality Others 31
Economic Outlook GDP Growth Inflation 2015(f) 3.3% 10.6% 2014 1.8% 9.9% 2013 2.1% 9.5% 32
All Industries Salary movements (same companies) and forecasts 95% of organisations have provided a salary increase 10.0% is the Basic Employee Groups Clerical Base Salary movement (2013-14) 11.3% Base Salary forecasts (2014-15) 10.8% 10.3% is the Base Salary Movement Supervisory Middle Management Senior Management 10.2% 10.4% 5.8% 10.8% 11.1% 11.4% 33
What was the real increase? Real increase = actual base salary increase - inflation 10.7% 10.3% 11.0% 6.8% 6.8% 0.6% -2.4% -2.7% 0.4% 0.4% 2011 2012 2013 2014 2015 (F) Inflation 10.1% 9.2% 9.5% 9.9% 10.6% Actual increase Real increase 34
2014 Remuneration mix 15% 14% 13% 11% 11% 11% 13% 14% 74% 75% 74% 75% Supervisory 2013 Supervisory 2014 Clerical/Operational 2013 Clerical/Operational 2014 Basic Salary Cash Allowances Variable Pay 35
2014 Remuneration mix (cont.) 22% 21% 17% 17% 8% 10% 10% 10% 70% 69% 73% 73% Senior Mgt. 2013 Senior Mgt. 2014 Middle Mgt. 2013 Middle Mgt. 2014 Basic Salary Cash Allowances Variable Pay 36
-14% -10% 7% 8% Pay difference by ownership 30% 20% 10% 0% -10% -20% Local Companies Multinational Companies All market = 0% Basic Salary Base Salary 37
Base Salary (Annually in USD) Regional comparison : Base Salary Egypt pay market is in line with the north African region The pay in GCC on average is 2.5 times higher than Egypt Egypt Gulf Countries Algeria Morocco Tunisia 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Hay Group Reference Level Job size 38
Bonus as a % of Basic Salary 91% of organisations paid bonus in 2014 40% 35% 30% 25% 20% 15% 10% 5% 0% 19% 15% 15% 21% 18% 23% Clerical Supervisory Middle Management 26% 37% Senior Management Target bonus Actually paid 39
Rising Trends: Allowances Housing Allowance 34% of the participating organisations stated that they provide housing allowance to their employees out of which more than 50% of them pay it as a form of cash. Transportation Allowances 82% of the organisations provide Transportation Allowance to their employees, and 58% provide company transport such as company bus Fuel Allowance Over 50% organisations have planned to increase fuel allowance in response to the recent hike in fuel prices Most of the employees expect an increase in their transportation allowance varying from 20% - 40% 40
Rising Trends: Benefits Company cars 62% of the participating organisations stated that they offer car plans to their employees. Organisations purchase the job status cars provided to their employees at higher grades and lease the job requirement cars. Holiday Entitlement 26% of the participating organisations stated that they provide their employees with extra days off in addition to national holidays or legally required vacation. Telecommunication Assistance 42% of the participating organisations stated that they provide their employees with telecommunications assistance (mobile phone benefit) 41
Most people think they are paid unfairly On average only 37% of employees think they are paid fairly compared to people in similar roles in other organisations 42
How do employees feel in Egypt? 61% The organization provides employee benefits that meet my needs 42% 59% 47% I believe I am paid fairly for the work I do 37% 45% 0% 20% 40% 60% 80% Global Egypt High Technology Sector 43
Your Road Map To ensure your pay is aligned: Internally between employees Externally against the market 44
Project Timelines We propose the below timelines of around 10 weeks. The time taken to complete the Reward benchmarking project would also depend upon the IT companies that agree to work with us in this critical project : Task Description 1 Conduct an IT sector forum in Egypt Weeks 1 2 3 4 5 6 7 8 9 10 2 Feasibility study to get project participation for the Reward Benchmarking project 3 Face to Face meetings to collect Data 4 Job Mapping Trainings / Sessions 5 Deliver the Reward Benchmarking report 6 Face to face meetings to deliver the final results 45
Fees for Hay Group Egypt Survey Hay Group Egypt IT Compensation & Benefits Report Package Fees in USD Hay Group Egypt compensation & benefits IT sector report Peer group benchmark feedback report Hay Group 24/7 online database access, PayNet $3,500 Egypt mid-year update report Year Round Support through dedicated Account Managers 46
Investment for IT Sector Organisations Hay Group Egypt IT Compensation & Benefits Report Package Hay Group Egypt compensation & benefits IT sector report Fees in USD Fees after discount Peer group benchmark feedback report Hay Group 24/7 online database access, PayNet $3,500 $3,325 Egypt mid-year update report Year Round Support through dedicated Account Managers 47
Contact Us: Varun.Sampath@haygroup.com Mohamed.Al-Nizami@haygroup.com Farhan.Mahmood@haygroup.com Khaled.El-Gayar@haygroup.com