MERCER TOTAL REMUNERATION SURVEYS 212 A closer look at regional, industry-specific and gender pay differences in Switzerland Christa Zihlmann, Geneva
Mercer WHO WE ARE A global leader in human resource consulting and related services: $3.8 billion in revenue 65-year history 4 business segments Offices in more than 4 countries 2,+ colleagues MERCER 1
Mercer WHAT WE DO We help clients optimize the value of their human and financial resources. Business Segments Talent Health Retirement Investments Mercer s Clients 8% of top US public companies 7% of FTSE 1 companies 7% of CAC 4 companies 65% of Nikkei 225 companies 75% of DAX 3 companies 8% of clients <5, employees MERCER 2
Agenda Mercer s Total Remuneration Surveys Worldwide Pay in 212 What is equal pay? A closer look at salaries in Switzerland MERCER 3
Mercer s Compensation Data Three Three distinct distinct HR HR challenges challenges to to expand expand and and grow grow to to meet meet the the global global economic economic challenges challenges LOCAL PAY EXPATRIATE PAY Understand and determine COMPETITIVE LOCAL COMPENSATION elements and pay levels for all positions within all countries Understand and manage COMPETITIVE EXPATRIATE COMPENSATION elements and pay package levels for all expats across all home/host locations MERCER SOLUTIONS GLOBAL MEMBERSHIPS Access to local pay benchmarking databases + high-value services GLOBAL MOBILITY Calculate competitive pay packages + manage compensation function globally + integrate into new country MERCER 4
Mercer Total Remuneration Survey (TRS) Compensation Elements Comp 1 Annual Base Salary Annual Base Salary Monthly base salary : The monthly base salary excluding all allowances that your incumbent receives from your organization Number of month paid : The number of times the incumbent receives monthly basic salary in a full year, including Fixed / Guaranteed Bonus Comp 2 Annual Base Salary Annual Fixed Allowance Annual Guaranteed Cash Meal allowance : The monthly fixed allowance for meals Transportation allowance : The monthly fixed allowance for transportation Position/Job based allowance : The monthly fixed allowance for holding a position Skill allowance : The monthly fixed allowance for a specific skill/ license Other monthly allowance : Other monthly fixed allowance not listed above Comp 3 Annual Base Salary Annual Fixed Allowance Annual Variable Cash Annual Total Cash Variable bonus : All payments which were associated with individual, team and/or corporate performance Sales incentive bonus : All payments which were associated with sales achievement. Other bonus : All payment, which were associated with other bonus scheme Comp 4 Annual Base Salary Annual Fixed Allowance Annual Variable Cash Stock Options Stock Grants* Annual Total Cash + Long Term Incentives Comp 5 Annual Base Salary Annual Fixed Allowance Annual Variable Cash Stock Options Stock Grants* Key Benefits Annual Total Remuneration *: Long-term incentive cash MERCER Flexible Benefit Car Subsidized Car Loan Housing Loan Personal Loan Leave Holiday Bonus Health Insurance Dental reimbursement Life Insurance Accidental Insurance Medical Check-up Membership Employee and the Children s Education 5
Mercer Total Remuneration Survey (TRS) Typical Position Class (PC) Ranges PC 4 47 Employees White collar employees, generally clerical PC 47 51 PC 5 54 Professionals Junior Management White collar employee with a university degree and up to five years experience / or equivalent professional experience University degree, at least 5 years of experience (supervisors, coordinators) PC 54 58 Middle Management Sub-department heads in larger organizations (e.g. HR manager) PC 57 62 Senior Management Department heads in larger organizations (HR director, finance director, IT director) PC 6 + Top Management Head of organization in mid-sized or larger organizations MERCER 6
Position evaluation is based on size of organization, number of employees and turnover Benchmark positions and corresponding position class Position Class 55 54 53 52 51 5 49 Company X Company Y Company V Company Z 48 47 46 45 44 Benchmark Position: Human Resource Manager Position Code: 12.1.22 Position Description: Implement the organisation's human resource strategy so that the organisation attracts, manages, develops and retains the employees it needs to achieve its current and future business objectives. Normally reports to. Head of HR or HR Executive; e.g. HR Director. International Position Evaluation MERCER 7
Worldwide Salary Comparison 212 Annual Total Guaranteed Cash 8' 7' Annual Total Guaranteed Cash (in EUR) 6' 5' 4' 3' 2' 1' Blue collar Professional Specialist Manager Director VP 4 41 42 43 44 45 46 47 48 49 5 51 52 53 54 55 56 57 58 59 6 61 62 63 64 65 66 67 68 69 7 IPE Position Class Switzerland Germany France Russia India Brazil China (Beijing) United States MERCER 8
212 Switzerland TRS Survey Partcipants Overview Number of organizations 21 Number of incumbents 51,1 Mainly large multinational companies MERCER 9
212 Switzerland TRS Survey Participants Industry Representation Other; 1% Retail/Wholesale Trade; 3% Finance/Banking; 1% Energy; 4% Consumer Goods; 24% High-Tech; 7% Pharma; 5% Services; 8% Nondurable; 9% Durable; 29% MERCER 1
What is equal pay? Data interpretations vary: By region By career stream By industry By age By gender By tenure By function By company nationality By Position Class MERCER 11
Regional Pay Differences in Switzerland (1) Annual Base Salary in CHF - Junior Management Swiss Italian Region Swiss French Region Swiss German Region SFr. 1' SFr. 3' SFr. 5' SFr. 7' SFr. 9' SFr. 11' SFr. 13' MERCER 12
Regional Pay Differences in Switzerland (2) Total Remuneration in CHF - Professionals Regional comparison Annual Total Remuneration median (CHF) 15' 1' 5' 14'943 126'689 79'3 French Region German Region Italian Region Source: 212 TRS Switzerland MERCER 13
Regional Pay Differences in Switzerland (3) Total Remuneration in CHF - Junior Management SALES Regional comparison Annual Total Remuneration median (CHF) 2' 15' 1' 5' 16'548 147'445 122'171 German Region French Region Italian Region Source: 212 TRS Switzerland MERCER 14
Gender comparison Switzerland: Sales Functions Senior Management : Female / Male Compensation Regional comparison Annual Total Remuneration median (CHF) 2' 15' 1' 5' 161'982 147'962 15'777 144'57 122'171 11645 Male Female German Region French Region Italian Region Source: 212 TRS Switzerland MERCER 15
Regional Pay Differences in Switzerland (4) Total Remuneration in CHF - Junior Management SALES Female / Male Compensation Regional comparison Annual Total Remuneration median (CHF) 2' 15' 1' 5' 161'982 147'962 15'777 144'57 122'171 11278 Few positions Male Female German Region French Region Italian Region Source: 212 TRS Switzerland MERCER 16
Regional Pay Differences in Switzerland (5) Total Remuneration in CHF - Human Resources Manager Senior Management: Female / Male Compensation Regional comparison Annual Total Remuneration median (CHF) 25' 2' 15' 1' 5' 248'74 225'17 213'51 27% 73% 46% 54% 213'81 Male Female French Region German Region Source: 212 TRS Switzerland MERCER 17
Gender Distribution in Switzerland by Career Stream Female Male 3% 25% 2% 15% 1% 5% % Para-Professional Professional Management Executive MERCER 18
All Data comparison - Switzerland : Annual Guaranteed Cash Female / Male Comparison Regressed Median Female Male CHF 55' 5' 45' 4' 35' 3' 25' 2' 15' 1' 5' 29 5 CHF 41 42 43 44 45 46 47 48 49 5 51 52 53 54 55 56 57 58 59 6 61 62 63 64 65 Source: 212 TRS Switzerland Position Class MERCER 6 March 213 19
All data comparison - Switzerland : Annual Total Cash (Target and Actual Bonus) Female / Male Comparison Regressed Median 55' 5' Female Target Female Actual Male Target Male Actual 45' 4' 51 2 CHF CHF 35' 3' 25' 2' 15' 1' 5' 41 42 43 44 45 46 47 48 49 5 51 52 53 54 55 56 57 58 59 6 61 62 63 64 65 Source: 212 TRS Switzerland Position Class MERCER 6 March 213 2
All data comparison - Switzerland : Annual Total Remuneration Female / Male Comparison Regressed Median Female Male 55' 5' 53 5 CHF 45' 4' CHF 35' 3' 25' 2' 15' 1' 5' Source: 212 TRS Switzerland 41 42 43 44 45 46 47 48 49 5 51 52 53 54 55 56 57 58 59 6 61 62 63 64 65 Position Class MERCER 6 March 213 21
Functional Pay Differences in Switzerland (1) Total Remuneration in CHF - Top Management/Head of Organization Comparison by gender Annual Total Remuneration median (CHF) 45' 4' 35' 3' 25' 2' 15' 1' 319'867 435'934 422'681 11% 89% Female Male 5' Female Male All Data Source: 212 TRS Switzerland MERCER 22
Functional Pay Differences in Switzerland (2) Annual Base Salary in CHF Middle Management / Environmental Health & Safety Manager Comparison by gender Annual Total Remuneration median (CHF) 25' 2' 15' 1' 5' 25'529 27'467 23'354 43% 57% Female Male Female Male All Data Source: 212 TRS Switzerland MERCER 23
Functional Pay Differences in Switzerland (3) Annual Base Salary in CHF Junior Management Process Engineer - Experienced Comparison by gender Annual Total Remuneration median (CHF) 15' 1' 5' 131'641 135'531 135'531 23% 77% Female Male Female Male All Data Source: 212 TRS Switzerland MERCER 24
Functional Pay Differences in Switzerland (4) Annual Base Salary in CHF Professional : IT Support Analyst - Experienced Comparison by gender Annual Total Remuneration median (CHF) 15' 1' 5' 14'226 18'284 15'618 16% 84% Female Male Female Male All Data Source: 212 TRS Switzerland MERCER 25
Pay Differences by company size in Switzerland (1) Annual Base Salary in CHF Middle Management Comparison by company size Annual Total Remuneration median (CHF) 25' 2' 15' 1' 5' 21'123 2'291 Less than 5, 5, or more Source: 212 TRS Switzerland Number of Employees MERCER 26
Pay Differences by company size in Switzerland (1) Annual Base Salary in CHF Middle Management Comparison by company size Annual Total Remuneration median (CHF) 25' 2' 15' 1' 5' 211'847 26'435 Female 22'46 191'929 Female Less than 5, 5, or more Source: 212 TRS Switzerland Number of Employees MERCER 27
Company Nationality Differences in Switzerland (1) Total Remuneration in CHF Middle/Senior Management Comparison by parent organization country Annual Total Remuneration median (CHF) 25' 2' 15' 1' 5' 23'378 223'415 Switzerland United States Source: 212 TRS Switzerland MERCER 28
Company Nationality Differences in Switzerland (2) Total Remuneration in CHF Middle/Senior Management Female / Male Compensation Comparison by parent organization country Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 223'518 251'635 211'78 24'126 Male Female 5' Switzerland United States Source: 212 TRS Switzerland MERCER 29
Tenure Pay Differences in Switzerland (1) Human Resources Manager (Senior Management) Comparison by tenure Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 5' 168'98 27'393 258'75 23'864 211'618-3 3-5 5-1 1-2 2 or more Source: 212 TRS Switzerland MERCER Tenure in years 3
Pay Differences by age in Switzerland (1) Total Remuneration in CHF Middle Management Comparison by age bracket of employee Annual Total Remuneration median (CHF) 25' 2' 15' 1' 5' 229'346 22'412 25'689 3-4 4-5 5-6 Source: 212 TRS Switzerland MERCER 31
Industry Pay Differences in Switzerland (1) Total Remuneration in CHF Middle Management Comparison by industry super sector Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 5' 259'32 28'741 27'253 Consumer Goods Nondurable (excluding Consumer Goods) Durable Source: 212 TRS Switzerland MERCER 32
Industry Pay Differences in Switzerland (2) Total Remuneration in CHF Middle Management Female / Male Compensation Comparison by industry super sector Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 255'181 259'898 25'794 27'253 2'988 22'787 Few data Male Female 5' Source: 212 TRS Switzerland Consumer Goods Nondurable (excluding Consumer Goods) Durable MERCER 33
Pay Differences by age in Switzerland (2) Annual Base Salary in CHF Middle Management Female / Male Compensation Comparison by age bracket of employee Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 5' 235'276 213'51 215'53 22'649 27'253 24'126 Male Female 3-4 4-5 5-6 Source: 212 TRS Switzerland MERCER 34
Pay Differences by tenure in Switzerland (1) Total Remuneration in CHF Middle Management Comparison by tenure Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 5' 168'98 27'393 258'75 23'864 211'618-3 3-5 5-1 1-2 2 or more Source: 212 TRS Switzerland MERCER Tenure in years 35
Pay Differences by tenure in Switzerland (2) Total Remuneration in CHF Middle Management Female / Male Compensation Comparison by tenure Annual Total Remuneration median (CHF) 3' 25' 2' 15' 1' 5' 274'65 218'959 211'186 216'318 167'415 284'679 224'963 211'618 Male Female - 3 3-5 5-1 1-2 2 or more Source: 212 TRS Switzerland Tenure in years MERCER 36
European country comparison Human Resources Manager Female / Male Compensation Comparison by gender 174'885 182'28 18'748 17'1 94'439 84'176 115'533 82'819 97'73 79'911 76'43 58'352 65'48 55'719 54'94 57'837 61'889 53'971 2' 15' 1' 5' Male Female Switzerland Sweden Italy United Kingdon France Russia Poland Hungary Annual Total Remuneration median (EUR) Czech Republic Source: 212 TRS Switzerland MERCER 37
212 Pay Mix by Region Salary Short Term Incentives Long Term Incentives 1% 9% 8% 7% 6% 5% 1% 12% 18% 24% 27% 25% 36% 48% 63% 4% 3% 2% 1% % 78% 59% 65% 39% 23% 29% 22% 15% China Sweden Switzerland Europe UK US MERCER 38
Conclusion Overall women still earn less than men The main difference is the bonus (variable part) There are far less women in Management and Top Management positions, their salary might sometimes be higher that their male peers Differentiation of data sources are also important such as age group, parent company nationality, industry sector, region and function Gender pay differences are omnipresent all over Europe MERCER 39
Comparison PC 45 (Total Remuneration Comp 5) Gross, Net and Net Salary COL adjusted married + 1 child, base Frankfurt 8' 7' 6' 5' 4' 3' 2' 1' MERCER 4 Total Remuneration (in EUR) Vietnam India Poland China (Beijing) Russia (Moscow) Nigeria Brazil UAE Italy Spain United States France United Kingdom Sweden Germany Japan Switzerland Gross Net COL adjusted DE Level
Comparison PC 55 (Total Remuneration Comp 5) Gross, Net and Net Salary COL adjusted - married + 1 child, base Frankfurt 2' 18' 16' 14' 12' 1' 8' 6' 4' 2' MERCER 41 Total Remuneration (in EUR) India Vietnam Hungary Czech Republic Poland Russia Mexico China (Beijing) Spain France Italy United States Sweden Nigeria United Kingdom Germany UAE Brazil Japan Switzerland Gross Net COL adjusted DE Level
Comparison PC 65 (Total Remuneration Comp 5) Gross, Net and Net Salary COL adjusted married + 1 child, base Frankfurt 7' 6' 5' 4' 3' 2' 1' MERCER 42 Total Remuneration (in EUR) Brazil India Russia (Moscow) France Spain Sweden United States Italy Germany Japan United Kingdom China (Beijing) Vietnam Switzerland UAE Nigeria Gross Net COL adjusted DE Level
MERCER 43