SALARY SURVEY 2012 IFR-A.COM

SALARY SURVEY 2012 IFR-A.COM 1

IFRA (International Food Recruitment Alliance), 2012. All Rights Reserved. Published by IFRA. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to IFRA. Requests to the Publisher for permission should sent to: IFRA, Focus Management Consultants Limited, Exchange House, Albert Road, Bollington, Cheshire, SK10 5HS, or by email to: info@foodjob.dk. Limit of Liability/Disclaimer of Warranty: While the publishers and authors have used their best efforts in preparing this Report, they make no representations or warranties with respect to the accuracy or completeness of the contents of this publication. The advice and strategies contained herein may not be suitable for your situation. You should consult with independent advisors where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. To ask a question about this report, to contact the author, or to report a mistake in the text, please contact info@foodjob.dk. For general information about the services that IFRA provides, please contact the relevant partner: Denmark : Foodjob Denmark info@foodjob.dk France : ManageriA infos@manageria.fr Germany : Rau Consultants info@rau-consultants.de Netherlands : DUPP / Den Uijl Ploeg & Partners info@dupp.nl Poland : Recfood Consulting office@recfood.pl United Kingdom : Focus Management Consultants consultants@fmcl.co.uk 2

Contents About the International Food Recruitment Alliance... 4 Data Gathering / Research... 5 Average Food Industry Salaries... 6-7 Production... 6 Technical/Engineering... 6 Sales... 6 Marketing... 6 R&D... 7 Quality... 7 Administration... 7 Average Net Value of Food Industry Salary Packages... 8-9 Comparison of Wages Across Countries... 10-11 Wage Comparison Table... 11 Relative Worth of Wages Across Countries (Table)... 12 About the Partners of IFRA... 13-15 Dupp... 13 Focus Management Consultants... 13 Foodjob.dk... 14 ManageriA... 14 Rau Consultants... 15 Recfood... 15 3

IFRA Salary Survey 2012 The definitive guide for international salary information in the food and drink industry Welcome to the International Food Recruitment Alliance 2012 Salary Whitepaper. This whitepaper has been created using the most up to date information available, and gives industry averages of salary levels, according to the samples we used. Salaries range across disciplines, and may also differ substantially from similar roles in other industries. This paper is intended for research purposes only, and has been collated and distributed to provide insight into the pay rates across the food and drink industry. About the International Food Recruitment Alliance The International Food Recruitment Alliance (IFRA) was established in 2009 to give international food clients and candidates choice of opportunities. IFRA recruits for the majority of functions found in the food, drink, ingredients, food equipment, logistics and, generally speaking, all along the Agro-Food channel and its evolution. From farm to fork, from agricultural roles through all manufacturing disciplines, supply chain jobs and retail positions. IFRA is the only dedicated International Food Recruitment Alliance and is established by the leading specialist food recruiters in distinct international markets. IFRA offers the largest and most diverse range of job vacancies in the food sector internationally. IFRA is represented by the following countries / recruitment consultancies: Denmark : Foodjob Denmark France : ManageriA Germany : Rau Consultants Netherlands : DUPP / Den Uijl Ploeg & Partners Poland : Recfood Consulting United Kingdom : Focus Management Consultants All members of the International Food Recruitment Alliance are independent recruitment consultancies with full specialism in the food sector and leading positions in their home markets. Based on a professional background in the food area in combination with many years of recruitment experience, all IFRA members are true food experts and share a passion for the food industry. Clients have the opportunity of sourcing and selecting the best candidates for their specific role from a variety of international food markets. Each IFRA partner brings their local knowledge and experience to provide the best international solutions. Uniform in recruitment approach, all partners follow the same principles for selection and candidates will undertake very similar processes before representation to clients. Candidates are able to consider the best jobs in most of the major international food markets. Candidates with international ambitions will find the biggest array of jobs in the broadest range of markets. Talking to their local country Recruitment Consultant will open the gateway for their international career. All IFRA partners share their international vacancies and can recommend candidates to each other and their specific clients. IFRA is multi-lingual and multi-cultural, so we are able to understand the needs of clients and candidates, by combining local knowledge and international perspective. For more information you can contact your nearest IFRA country and recruitment consultancy. 4

Data Gathering / Research The data displayed in this document is non-confidential, and represents the industry, as we understand it. The partners of the International Food Recruitment Alliance have been at the forefront of the food and drink recruitment industry for over 20 years. In that time, a substantial amount of valuable information has been collected and stored in our database. We are able to utilize this data on a confidential basis to produce industry norms and averages, and provide statistics that we believe accurately represent the current state of the food and drink industry. There is no personal or individual information illustrated in this report, all research has been performed using our databases and various internet sources, and all figures or statements represent groups of individuals, not a single individual. Our collective database consists of more than 500,000 employees across the international food and drink industry. These represent employees in all functions within the food and drink industry, with the exception of IT. The data displayed in this Salary Survey is created by combining quantitative data gathering methods (such as polls and questionnaires), with recent and up-to-date input from candidates in our databases with the experience and knowledge of the IFRA team of recruitment consultants. This is done to ensure maximum reliability and representation of the current salary levels in the food industry in the countries included in this survey. 5

Average Food Industry Salaries This section lists various functions within food industry businesses, and then a number of typical job titles within those functions. Each job title has an average annual gross salary that can be seen across all businesses within the food industry. The annual salaries stated are base averages and do not include the broader benefit package that may be associated with the role. Salaries are displayed in thousands. PRODUCTION Denmark France Germany NL Poland UK Average COO / Director Operations 187 150 206 150 85 206 162 Plant Manager (big plant) 99 120 122 120 70 127 113 Plant Manager (small plant) 85 90 83 90 60 82 81 Production Manager 72 80 71 70 45 51 66 Department Manager 57 60 60 55 36 54 54 Shift Manager 48 60 46 45 24 44 45 TECHNICAL/ENGINEERING Denmark France Germany NL Poland UK Average Head of Engineering 82 90 84 90 50 95 84 Department Manager Technical 72 75 74 70 40 51 64 Project Engineer 67 65 65 65 28 44 57 SALES Denmark France Germany NL Poland UK Average Managing Director Sales / 185 150 199 150 57 152 156 Marketing Head of Sales 130 120 120 120 59 114 116 National Key Account Manager 89 90 83 75 46 76 84 Regional Key Account Manager 68 65 66 60 36 62 65 Export Manager 101 90 101 90 40 63 94 Area Export Manager 87 75 79 70 30 76 68 Head of B2B Sales 115 120 114 110 42 101 100 National Sales Manager B2B 70 80 79 80 53 76 72 Export Sales Manager B2B 98 80 95 90 40 76 81 MARKETING Denmark France Germany NL Poland UK Average Marketing Director 112 120 115 100 58 139 106 Senior Product Manager 71 75 74 75 40 70 67 Product Manager 62 50 61 55 26 57 53 6 6

R&D Denmark France Germany NL Poland UK Average Head of R&D 85 100 91 90 44 101 91 Senior Product Developer 72 65 73 60 25 63 62 Product Developer / Application Manager 64 45 53 50 23 41 48 QUALITY Denmark France Germany NL Poland UK Average Head of Quality Control and 89 90 91 80 42 108 83 Management Quality Manager 76 65 67 65 32 51 61 Laboratory Manager 63 50 60 55 22 38 49 ADMINISTRATION Denmark France Germany NL Poland UK Average Managing Director Administration 167 180 205 * 42 * 149 Head of Accounting and Finance 88 120 97 * 54 124 103 Head of Controlling 87 90 95 * 48 87 86 Head of Purchase 89 100 90 100 53 76 90 Purchasing Manager 69 70 62 70 44 63 66 HR Manager 92 100 92 * 53 63 83 * Function not covered by Partner in this area British and German food companies pay the highest gross salaries on average of the six countries compared across Europe, followed by France, Denmark and Holland with the lowest average salaries paid in Poland. The statistics indicate that the largest differences on salaries are on the higher salary levels, where Germany and UK stand out with significantly higher salary levels for directors, senior managers and senior specialist positions. The salary levels of middle managers and specialists are more comparable across the countries. On segments, the highest salary levels are found in General Management and Sales, followed by Finance and Administration, Product Development, Engineering, Quality Control and Packaging. Average Net Value of Food Industry Salary Packages This section shows standard conditions and benefits in employment contracts across five countries, and an example of comparison of the net value of salaries after tax. The empirical data shows that terms and conditions of salary packages varies a lot between job functions and salary levels, but this table will give an overview of standard conditions found in each country based on an example of a 70,000 base salary. 7

Denmark France Germany Netherlands Poland United Kingdom 70,000 on 12 months all included 70,000 based on 12 months all included 70,000 based on 12 months and holiday pay 8% 70,000 based on 12 months all incl., sometimes divided by 13 or plus some holiday or christmas extra 70,000 based on 12 months and holiday pay 12,5% 1 Gross salary (in Euro) 70,000 based on 12 months and holiday pay 12,5% In this case 40% income tax 0-10,084-0% 10,085-42,762-20% 42,763-186,625-40% Depending on salary level in this case 19% income tax up to 19 500 +32% from above 19 500 Depending on salary level. In this case 40% income tax Depending on salary level. In this case: 17,7 % income tax + 1,4 % labour market contribution + 9,4 % pension + 5,8 % health and nursing care insurance Depending on salary level. In this case 30% income tax + 8% labour market contributions 2 Income tax rate Depending on salary level. In this case 43% income tax + 8% labour market contributions 3 Net salary (in Euro) 39,020 42,000 45.983 (based on being married with 2 children) 42,000 50,135 49,026 10-20% Most positions - varying level of bonus 10% - 20% Normally only management and commercial positions + 10% Normally only management and commercial positions + 10% Normally only management and commercial positions + 10-15% Normally only management and commercial positions + 10-15% Normally only management and commercial positions 4 Bonus (in %) based on gross salary Yes 5,000-7,000 per annum or cash equivalent Fuel could be included but is unlikely to be fully expensed YES or NO Normally only management and commercial positions YES or NO 14-25% of list price, depending on environmental impact Normally only management and commercial positions YES or NO 1 % of list price + distance home-workplace in km* 0,03 will be add to monthly gross salary and is subject to taxation Normally only management and commercial positions YES or NO 9% of list price. Normally only management and commercial positions 5 Company car YES or NO 5% of list price below 40,000 (min. 21,333), 20% of list price above 40,000 Normally only management and commercial positions 5-10% paid by employer; employee may also contribute 10% pension 8% paid by employer and 2% paid by employee 19,9% pension 9,95% paid by employer 9,95% paid by employee few companies have additional pension system 15% pension 10% paid by employer and 5% paid by employee 10-15% pension 5-10% paid by employer and 5% paid by employee 6 Pension based on gross salary 20-25 days + 8 public hols (28 days is legal minimum, and includes 8 days public hols, based on full working week of 40 hours.) 26 days and 11 additional days (based on 40 H work week) 25 holidays and 8 additional days (based on average working week of 38-40 hours) min. 20 holidays, Ø 28 holidays no add. days all hours incl., no overtime payment 25 holidays and 7 additional days (based on 35 H work week) 7 Holidays 25-30 holidays (by law) and 7 additional days (based on 37 H work week) Yes, plus life Assurance 2-4 x salary Possibility to participate in company s health insurance program. Possibility to participate in company s health insurance program. So low premium 15,5% health + 1,95% nursing care 8,2% paid by employer 9,2% paid by employee these figures apply on reduced gross salary Possibility to participate in company s health insurance program. 8 Health insurance Possibility to participate in company s health insurance program. So low premium No, not allowed If no company car: compensation of 0,30 / KM simple driving distance between domicile + workplace If no company car: compensation of 0,19 / KM based on max. 60 KM If no company car: compensation of 0,30 / KM simple driving distance between domicile + workplace If no company car: No compensation If no company car: compensation of 0,49 / KM based on min. 20 KM 9 Travel costs from home to work Not considered a perk. Usage of company's laptop and mobile phone without additional costs Usage of company's laptop and mobile phone without additional costs Usage of company's laptop and mobile phone without additional costs Usage of company's laptop and mobile phone without additional costs 10 Laptop and phone Usage of company's laptop and mobile phone is subjectable to tax (ca. 270 annualy) 8

* Income salary systems differ significantly depending on the salary level and the personal situation of the employee. ** We have used an example whithout compensations and deductions, which may of course affect calculations significantly. *** From home to workplace if no company car. Whilst many businesses within the food and drink manufacturing industry are operating profitably and successfully throughout 2012, budgets are still tight and as a result pay rises are being kept in line with the average for the private sector. We believe the average salary increase in the food and drink industry has been around 2%. Good performance has been rewarded on a 2-2.5% basis which allows businesses room for managing performance reward. Due to some businesses still struggling in the economic climate, pay rises have not been across all businesses. 9

Comparison of Wages Across Countries Price Level Index: Naturally, we cannot compare mere figures. Differences in price level, living costs and tax levels make it impossible to really guess what is left from the gross salaries after the end of the month. One possibility to make the figures more comparable is provided by the Price Level Index. It is a hypothetical measure of overall prices for some set of goods and services in a given region during a given interval, normalized relative to some base set. This level is approximated by an index. Country Price Level 2011 EU (27) 100 Euro Zone 104 Denmark 142.2 France 103.4 Germany 110.7 Poland 60.1 Netherlands 101.7 UK 108 The figures are taken from the official website for statistics in the Eurozone: Eurostat.ec Methodology We take the EU 27 as reference and compare Prices in all countries of the EU. Hence, we observe that the price level in Denmark is significantly higher than in Poland, which is indicated by a higher index. Salaries have to be divided by the percentage in order to show how much worth a gross salary is in terms of goods one is able to buy. This equalizes differences and makes figures more comparable. Analysis When taking a look at the new data provided, we can state the following. In Poland, salaries paid are always the lowest when compared internationally. The highest wages are received in the UK. This is most presumably due to the current relative appreciation of the British pound. In Germany, France and Denmark, wages can be considered to be rather equal. Whereas the Netherlands stays often below the European average and just one position pays the highest wage in international comparison. When the data is divided by the international price index, we can observe significant changes in the data. Poland s wages increased in comparison to the other countries. Nevertheless, polish salaries are still relatively low. Denmark is now the country with the lowest wage ratio. UK is the country in which the highest salaries are received. Germany profits from a relatively moderate price level and pays higher wages relative to the other countries. No significant changes in France and the Netherlands are observed. This methodology provides another view on the data and allows people to make a more considered choice on where to work in the European Food and Beverage Industry. 10

Comparison of Wages Across Countries Area Position Denmark France Germany NL Poland UK Production COO 187 150 206 150 85 206 Production Plant Manager (big plant) 99 120 122 120 70 127 Production Plant Manager (small plant) 85 90 83 90 60 82 Production Production Manager 72 80 71 70 45 51 Production Department Manager 57 60 60 55 36 54 Production Shift Manager 48 60 46 45 24 44 Technical Head of Engineering 82 90 84 90 50 95 Technical Department Manager Technic 72 75 74 70 40 51 Technical Project Engineer 67 65 65 65 28 44 Sales Managing Director Sales / Marketing 185 150 199 150 57 152 Sales Head of Sales 130 120 120 120 59 114 Sales National Key Account Manager 89 90 83 75 46 76 Sales Regional Key Account Manager 68 65 66 60 36 62 Sales Export Manager 101 90 101 90 40 63 Sales Area Export Manager 87 75 79 70 30 76 Sales Head of B2B Sales 115 120 114 110 42 101 Sales National Sales Manager B2B 70 80 79 80 53 76 Sales Export Sales Manager B2B 98 80 95 90 40 76 Marketing Marketing Director 112 120 115 100 58 139 Marketing Senior Product Manager 71 75 74 75 40 70 Marketing Product Manager 62 50 61 55 26 57 R&D Head of R&D 85 100 91 90 44 101 R&D Senior Product Developer 72 65 73 60 25 63 R&D Product Developer / 64 45 53 50 23 41 Application Manager Quality Head of Quality Control 89 90 91 80 42 108 and Management Quality Quality Manager 76 65 67 65 32 51 Quality Labratory Manager 63 50 60 55 22 38 Administration Managing Director Administration 167 180 205 * 42 * Administration Head of Accounting and Finance 88 120 97 * 54 124 Administration Head of Controlling 87 90 95 * 48 87 Administration Head of Purchase 89 100 90 100 53 76 Administration Purchasing Manager 69 70 62 70 44 63 Administration HR Manager 92 100 92 * 53 63 = highest salary = lowest salary 11

Relative Worth of Wages Across Countries Area Position Denmark France Germany NL Poland UK Production COO 132 136 199 139 158 203 Production Plant Manager (big plant) 70 108 118 111 116 125 Production Plant Manager (small plant) 60 81 80 83 100 81 Production Production Manager 51 72 69 65 75 50 Production Department Manager 40 54 58 51 60 53 Production Shift Manager 34 54 44 42 39 43 Technical Head of Engineering 58 81 81 83 83 93 Technical Department Manager Technic 51 68 72 65 67 50 Technical Project Engineer 47 59 63 60 47 43 Sales Managing Director Sales / Marketing 130 136 192 139 99 149 Sales Head of Sales 91 108 116 111 99 112 Sales National Key Account Manager 63 81 80 69 77 75 Sales Regional Key Account Manager 48 59 64 56 60 61 Sales Export Manager 71 81 98 83 67 62 Sales Area Export Manager 61 68 76 65 50 75 Sales Head of B2B Sales 81 108 110 102 71 99 Sales National Sales Manager B2B 49 72 76 74 88 75 Sales Export Sales Manager B2B 69 72 92 83 67 75 Marketing Marketing Director 79 108 111 93 95 137 Marketing Senior Product Manager 50 68 72 69 67 69 Marketing Product Manager 44 45 59 51 44 56 R&D Head of R&D 60 90 88 83 73 99 R&D Senior Product Developer 51 59 71 56 42 62 R&D Product Developer / 45 41 51 46 38 40 Application Manager Quality Head of Quality Control 63 81 88 74 70 106 and Management Quality Quality Manager 53 59 65 60 53 50 Quality Labratory Manager 44 45 58 51 37 37 Administration Managing Director Administration 117 163 198 * 71 * Administration Head of Accounting and Finance 62 108 94 * 94 122 Administration Head of Controlling 61 81 92 * 80 86 Administration Head of Purchase 63 90 87 93 88 75 Administration Purchasing Manager 49 63 60 65 75 62 Administration HR Manager 65 90 89 * 88 62 Index: 142.2 Index: 110.7 Index: 103.4 Index: 101.7 Index: 60.1 Index: 108 12

About the Partners of IFRA DUPP / Den Uijl Ploeg & Partners aims to be first choice in the food sector in the Netherlands, for Food Recruitment, Executive Search and Interim Management. From our central location in the Food Valley Wageningen, DUPP is continuously investing in creating connections and knowledge in the food sector and its job market. By specializing in this way DUPP has grown to become the food sector s market leader in the Netherlands. DUPP has long-standing partnerships with various employers in the food sector, ranging from large multinationals to medium-sized organizations and smaller family businesses. They include Fast Moving Consumer Goods (FMCG) businesses who work with famous-name brands, and business-to-business (B-to-B) companies who work with ingredients, packaging materials, production or services destined for the food sector. DUPP acts on behalf of applicants educated to Bachelor s or Master s level, who are seeking employment in the food-related sector in various positions. Our main functional disciplines are: Marketing & Sales, Operations, Research & Development, Quality Assurance and General Management. This concerns applicants with work experience, from a second career step to a top position in a functional discipline as well as general management positions. In close cooperation with our IFRA partners we can meet the increasing demand for internationalisation of human resources in the food sector across countries and cultures. Tel: +31 317468686 :: Email: info@dupp.nl :: Web: www.dupp.nl Focus Management Consultants Ltd (FMCL) commands a premier position in the Food and Drink recruitment industry. Working in long term partnership with many leading manufacturers, retailers and foodservice organisations, it has developed a strong credibility in its sector for high performance standards and results delivery. Established in 1990 in the recruitment sector, it comprises seven specialist divisions each offering a bespoke, confidential and targeted response to client needs, and offers candidates a route through to the leading employers in their chosen industry. With over 22 years experience in working with the very best manufacturers, retailers and foodservice companies, it has placed candidates and built whole teams covering Manufacturing, Technical, Engineering, Product Development, Sales, Marketing, HR, Supply Chain and Purchasing disciplines. Its success has been across Senior Managers and Main Board Executives through to Graduate food job recruitment campaigns. Tel: +44 1625 560778 :: Email: consultants@fmcl.co.uk :: Web: www.fmcl.co.uk 13

Foodjob.dk is an international recruitment company started in 2010 and is located in Agro Food Park, which is an international science and business park in Skejby, Aarhus. This location gives us a large and broad network of companies, organizations, universities and authorities operating in the food area. We believe in the value of partnerships with businesses and employees in the food sector. Foodjob.dk is a sparring partner and advisor to both groups, so that together we can come to the right choice. Our consulting services include: Recruitment of key staff in areas such management, sales, R&D and production Market analysis and business case for recruitment Career counseling of the best candidates Establishment of international and specialized networks in the food industry Competition for the best talent in the global labor market intensifies, both nationally and internationally. At Foodjob.dk we are experts in professional recruitment processes for top qualified personnel for the food industry. Our mission is to be the leading consultancy to match the best candidates with the right food employer on the basis of professional studies of both parties. Our 5 core values are: credibility, insight, creativity, commitment and partnership. Tel: +45 2912 6119 :: Email: info@foodjob.dk :: Web: www.foodjob.dk Founded in 1990, ManageriA is a Human Resources and Recruitment consulting company specialized on the agro-food business. We currently deal all along the channel with all the actors from agri-supplies to mass-market distribution. We are particularly involved in food intermediary products, as functional and nutraceutic ingredients, aromas, technology, process and packaging and are developing now our activity in sectors like cosmetics, environment and biotechnologies. For our customers, most of them worldwide established, we recruit Managing Directors, specialists, executives in General Management, Production, Sales, Marketing, R&D, Supply chain, Buying and positions strongly related to biology and environment sciences. Tel: +33 144541350 :: Email: infos@manageria.fr :: Web: www.manageria.fr 14

In the German-speaking region, Rau Consultants is the leading personnel and recruiting consultancy in the food industry and its value chain partners. In this sector, we search for, select and integrate executives and experts for all levels and function areas of company management. Founded in 1975, we offer consultancy for people from people with the tag-line If success counts, it is the people who matter. Our work is backed up by many years of experience, both in consulting practise and the food industry. Rau Consultants currently winds up over 100 successful recruiting projects per year, 20% of which have an international background. The more food specific the job requirements are, the greater our strength is. Thus, we mainly fill positions along the supply and value chain, in research and development as well as marketing and sales. Our wide and versatile client pool includes major global players as well as innovative medium-sized enterprises and family-owned businesses. Our support exceeds searching for and selecting candidates. Clients and candidates benefit from our individual and personal support in every phase of our joint projects. Furthermore, we integrate all resources of our consulting portfolio, including personnel and organizational development. Tel: +49 815390600 :: Email: info@rau-consultants.de :: Web: www.rau-consultants.de RECFOOD Consulting aims to be the first choice for recruitment services in the food sector in Poland. The company was founded in 1997 and for over 13 years market presence its consultants have established excellent relationships with various employers in the food business, ranging from large multinationals, to mediumsized organizations and smaller family businesses. The current team of 5 consultants and 5 researchers share a passion for food and specialist knowledge of the food sector and its job market. Their proven track record in the food business is an important asset for selecting the right candidates and guarantees excellent understanding of our Clients business. Most of the roles for which RECFOOD acts as recruitment partner are in the functional areas of sales and marketing, operations, research & development and quality assurance. Tel: +48 224362070 :: Email: office@recfood.pl :: Web: www.recfood.pl 15

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