Final Presentation on 'Conducting a survey and an analysis of remunerations in the civil service as compared to remunerations in other public administration offices and in other sectors of the economy Warsaw, 19 January 2011 The project is co-financed by the European Union from the European Social Fund within the framework of the Human Capital Operational Programme (Priority 5, Measure 5.1, Sub-Measure 5.1.1)
This is the Final Report for the project called 'Conducting a survey and an analysis of remuneration in the civil service as compared to remuneration in other public administration offices and in other sectors of the economy delivered following a commission by the Chancellery of the Prime Minister under the agreement No DSC/166/10 ID 112/DSC/10; financed from the project budget Job evaluation and changes in the remuneration system of the government administration, co-financed the European Union from the European Social Fund within the framework of the Human Capital Operational Programme (Priority 5, Measure 5.1, Sub-Measure 5.1.1); a source of valuable information on developing remuneration policy in the civil service; 1587 pages (including 1520 pages of statistical data for 29 functional regions and 57 areas of employment) it presents results of statistical analysis of data on both financial remuneration (i.e. total salary, base salary, regular supplements, bonuses and awards and other components of financial remuneration) and non-financial remuneration (additional allowances not included in the salary and training expenses) received by employees on selected positions in the civil service, in other offices of public administration and in private sector of the economy; the following entities were covered by the survey: 62 non-business entities (organisations being a part of the civil service and other organisations of the public administration) 31 business entities (companies); the project presents results for 91 positions; the list of organisations included in the survey was consulted with and accepted by representatives of the Chancellery of the Prime Minister Copyright by HRM partners S.A. 2
Project Schedule Schedule of conducting a survey and an analysis of remunerations in the civil service as compared to remunerations in other public administration offices and other sectors of the economy The project s duration Stage 1 drawing up a list of positions and entities Stage 2 Final Report s Structure Stage 3 Database Stage 4 Sourcing data, conducting a comparative analysis Stage 5 Survey close-out Final Report Approval Final Presentation Stages/actions completed [cze] = Jun [lip] = Jul [sie] = Aug [wrz] = Sep [paź] = Oct [lis] = Nov [gru] = Dec Copyright by HRM partners S.A. 3
Methodology applied MANAGEMENT SPECIALISTS SUPPORT According to the adopted methodology, the positions were divided into: M5 General M4 Integrating M3 Senior M2 Linear M1 Supervising MANAGERIAL POSITIONS P5 Experienced Expert P4 Expert P3 Independent P2 Junior P1 Novice SPECIALIST POSITIONS T4 Leading T3 Experienced T2 Junior T1 Novice SUPPORT POSITIONS DIRECTORS/MANAGERS INDEPENDENT AND SUPPORT POSITIONS Copyright by HRM partners S.A. Managerial, where employees achieve goals through managing people and assets they were entrusted with (listed in the M table, which includes five levels of competence labelled from M1 to M5) Independent, where employees are assessed on the basis of individual work results: Specialist (listed in the P table, which includes five levels of competence labelled from P1 to P5); Support (listed in T table with four levels of competence, labelled from T1 to T4) In the civil service: managerial positions these include senior positions in the civil service and middle management positions; they can also include coordinating positions, if they are a part of the managing level in an organisation specialist positions these include coordinating, independent or specialist positions within the civil service support positions these include support positions in the civil service. 4
Sample data 93 organisations: 48 civil service organisations 14 organisations from other sectors of public administration 31 business entities 38,364 employees 9,581 employed in the civil service 3,359 employed in other sectors of public administration 25,424 employed in business entities Copyright by HRM partners S.A. 5
Organisations included in the survey 1. ABB 2. Agora 3. ArcelorMittal Poland 4. National Archive in Poznań 5. National Archive in Warsaw 6. Bank Gospodarki Żywnościowej 7. Bank Pekao 8. BRE Bank 9. Budimex 10. Head Office of the National Health Fund (NFZ) 11. Dalkia 12. Energomontaż-Północ 13. Ernst & Young 14. Fiat Auto Poland 15. Generali Group 16. General Directorate of National Roads and Motorways (GDDKiA) 17. Chief Inspectorate for Environmental Protection 18. Chief Veterinary Inspectorate in Warsaw 19. Central Office of Measures 20. Central Statistical Office (GUS) 21. PZU Group 22. Hellmann 23. Hewitt Associates 24. Hewlett-Packard 25. ING Financial Services 26. Inter Cars 27. Tax Chamber in Gdańsk 28. Tax Chamber in Katowice 29. Tax Chamber in Poznań 30. Tax Chamber in Warsaw 31. Chancellery of the Senate 32. Regional Police Headquarters in Gdańsk 33. Regional Police Headquarters in Cracow 34. Kompania Piwowarska 35. Łódź Voivodeship Office 36. Office of the Marshal for Małopolska 37. Małopolskie Voivodeship Office 38. Masovian Voivodeship Office 39. Ministry of Finance 40. Ministry of Economy 41. Ministry of Agriculture and Rural Development 42. Ministry of the Interior and Administration 43. Ministry of Justice 44. Nestlé Polska 45. National Health Fund Branch in Katowice 46. Nowa Era 47. Regional Office of Measures in Gdańsk 48. Regional Office of Measures in Katowice 49. Orange 50. PHOENIX Pharma Polska Copyright by HRM partners S.A. 6
Organisations included in the survey 51. The First Tax Office in Gdynia 52. PKO Bank Polski 53. Polimex-Mostostal 54. Pomeranian Voivodeship Office in Gdańsk 55. PRESSPUBLICA 56. District Prosecutor s Office in Cracow 57. Polska Telefonia Cyfrowa 58. Raben 59. Regional Court in Warsaw 60. Silesian Voivodeship Office 61. Telekomunikacja Polska 62. Office of Electronic Communications in Warsaw 63. Tax Inspection Office in Gdańsk 64. Tax Inspection Office in Poznań 65. Tax Inspection Office in Warsaw 66. Office of the Marshall in Łódź 67. Office of the Marshall in Poznań 68. Tax Office for Łódź-Widzew 69. Tax Office in Sosnowiec 70. Statistical Office in Katowice 71. Statistical Office in Poznań 72. Statistical Office in Warsaw 73. Public Procurement Office 74. Wielkopolskie Voivodeship Office 75. Voivodeship Sanitary and Epidemiological Station in Poznań 76. Voivodeship Sanitary and Epidemiological Station in Cracow 77. Voivodeship Pharmaceutical Inspectorate in Łódź 78. Voivodeship Pharmaceutical Inspectorate in Poznań 79. Voivodeship Pharmaceutical Inspectorate in Warsaw 80. Voivodeship Construction Supervision Inspectorate in Warsaw 81. Voivodeship InspectorateforEnvironmental Protection in Cracow 82. Voivodeship Inspectorate for Environmental Protection in Poznań 83. Voivodeship Inspectorate of Road Transport in Gdańsk 84. Voivodeship Inspectorate of Road Transport in Katowice 85. Voivodeship Veterinary Inspectorate in Gdańsk 86. Voivodeship Veterinary Inspectorate in Katowice 87. Voivodeship Veterinary Inspectorate in Łódź 88. Wrigley Poland 89. Wydawnictwa Szkolne i Pedagogiczne 90. Headquarters of the Social Insurance Institution (ZUS) 91. Social Insurance Institution Division in Gdańsk 92. Social Insurance Institution Division in Cracow 93. Social Insurance Institution Division in Łódź Copyright by HRM partners S.A. 7
. Conclusions of the Survey
Salaries' competitiveness analysis whole sample Base salaries (CS/total) CS median total median 120% 80% 60% 85% 87% 85% 70% 81% 75% 73% 49% 75% 66% 58% 54% 75% 40% 31% 20% 0% T1 T2 T3 T4 P1 P2 P3 P4 P5 M1 M2 M3 M4 M5 Total salaries (CS/total) CS median total median 120% 104% 101% 95% 91% 87% 89% 82% 78% 80% 80% 74% 74% 68% 77% 60% 40% 41% 20% 0% Co pyright by T1 T2 T3 T4 P1 HRM partners S.A P2 P3 P4 P5 M1 M2 M3 M4 M5 9
Analysis of competitiveness of base salaries Base salaries (CS/other public admin.) CS median other public admin. median 140% 120% 80% 60% 40% 20% 116% 104% 95% 80% 83% 90% 81% 63% 95% 89% 94% 111% 96% 0% T1 T2 T3 T4 P1 P2 P3 P4 P5 M1 M2 M3 M4 M5 Base salaries (CS/business entities) CS median business entities median 120% 80% 83% 85% 78% 79% 71% 71% 60% 40% 56% 55% 39% 26% 54% 44% 35% 25% 20% 0% Co pyright by T1 T2 T3 HRM partners S.A T4 P1 P2 P3 P4 P5 M1 M2 M3 M4 M5 10
Analysis of competitiveness of total salaries 140% 120% 80% 60% 40% 20% total salaries (CS/other public admin.) CS median other public admin. median 12 2% 113% 81% 92% 97% 96% 93% 93% 99% 99% 99% 113% 0% T1 T2 T3 T4 P1 P2 P3 P4 P5 M1 M2 M3 M4 M5 total salaries (CS/business entities) CS median business entities median 120% 105% 95% 87% 84% 86% 80% 70% 63% 65% 69% 57% 60% 42% 40% 35% 33% 20% 0% T1 T2 T3 T4 P1 P2 P3 P4 P5 M1 M2 M3 M4 M5 Copyright by HRM partners S.A 11
Saleries competitiveness wrap-up positions ranked low on particular career paths (on T1, T2, P1, P2 and M1 levels) on average receive base salary amounting to 71 85 per cent of salaries in the business sector (for total salaries the ratio amounts to 84 105 per cent of total salaries in the business sector). Such salaries are competitive enough to attract, keep and motivate candidates displaying adequate qualifications. positions requiring highly skilled specialists and managers (P5 and M5 levels) offer base salaries at the level of 25 26 per cent of base salaries offered by the business sector, which may entail serious difficulties with attracting and keeping employees with suitable qualifications; luckily, variable remuneration slightly increases the competitiveness of total remuneration of managers and experts in the civil service (33 to 35 per cent of salaries on the private market); it may mean that awards do not have a motivational character, but that they simply compensate for the very low base salaries; Copyright by HRM partners S.A. 12
Internal consistency of salaries in the civil service - base salaries 30000 Base salaries civil service 27500 25000 22500 20000 17500 15000 12500 10000 MED-3Q 1Q-MED 7500 5000 2500 0 T1 T2 T3 T4 P1 P2 P3 P5 M2 M4 M5 Copyright by HRM partners S.A. 13
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