Compensation & Benefits Survey

Transcription

1 People Advisory Services Georgia Compensation & Benefits Survey 2016 Demo version December 2016 People Advisory Services

2 Georgia Compensation & Benefits Survey 2016 This document is proprietary information for the familiarization. It may not be passed on in whole or in part to third parties nor quoted nor disseminated in public in any way without the prior approval of EY. EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

3 Table of contents General information about Survey How to use Compensation & Benefits Survey Report...5 Methodology of the Survey... 5 Structure of the Compensation Package... 7 Definitions of Terms used in the Survey... 8 Description of the job code formation... 9 Description of Categories and Levels...10 List of participants...11 Contact information..38 Volume 1. Salary report General information about the Survey...13 Monthly Fixed Pay summary...15 Annual Fixed Pay and Annual Total Pay - summary Remuneration on particular positions...24 Electronic tool for benchmarking analysis Volume 2. HR Policies and Practices report Key points...30 Characteristics of the participants...32 HR Policies and Practices...34 HR metrics...36 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

4 General information about survey

5 How to use Compensation & Benefits Report This section of the survey contains information on how the data was put together, what it represents, and how to use the report in the most meaningful way possible. This section sets out the methodology through which the survey was compiled, defines key statistical terms, describes main elements of pay, and also gives a series of tips regarding easy access to various pieces of data. It is strongly recommended that persons unfamiliar with the usage of such reports read this section carefully before going into the survey report. Even those who have used to deal with such data could find this section a useful. Methodology of the survey Participants Companies, which operate in the Georgian market (see the section List of Participants ). Survey covers information on persons employed in Georgia. Expatriate packages are not covered by the survey. Data Collection The questionnaire was provided to the participants in the electronic format. Traditionally it consists of four sections: Sections A & D covering general information about the company, Sections B covering HR policies and practices (including non-cash benefits policies), Section C covering remuneration for particular positions. While completing the Questionnaire (Section C), participants matched jobs in their companies to the standard jobs defined by EY for reporting purposes. In this process, called job matching, the Job Descriptions Manual has been used. The Job Descriptions Manual was compiled and developed in the electronic format. We introduced a simple job classification table to help in job matching process; jobs were matched on the basis of responsibilities, and not the job title itself. Clarifications were given by telephone in order to ensure that data was given for appropriate jobs and categories. While the questionnaires were being filled out and data submitted, EY representatives could be contacted by participants via a "hotline" for consultations and explanations. The information and data received from each participating company was put into the unified, protected database. Each incoming questionnaire was checked for accuracy and consistency. In case of any doubts, the consultants contacted participants for refinements and clarifications. The degree to which the information provided corresponded to job duties was examined. Consultants evaluated the data by position, using a variety of indicators such as high and low salary levels, accountability of a job holder official and other indicators, casting doubt on the representative nature of the information for each group of jobs. Any significant variations were then checked with the provider for accuracy. The aggregated data was published in a format guaranteeing confidentiality and preventing the possibility to identify data o separate companies. Timeframe Data on monthly base salaries was gathered as of June 30, Data on variable pay received by jobholders was gathered for a 12-month period ending June 30, EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

6 Data presentation Information about monthly fixed pay is expressed in GEL before taxation (gross). For companies, which denominate salaries in foreign currency, we used the exchange rate of the National Bank of Georgia as of 30 June 2016 ( GEL/USD, GEL/EUR), if another exchange rate was not specified in a certain questionnaire. Salary data was presented in an aggregated format, with the use of statistical measures: deciles quartiles median average In addition to standard jobs, the report also provides information on job groups. Jobs with similar functions and tasks were included in groups (the level and experience of the jobs may differ). For example, the group FID110 «Accountants» includes such positions as: FID «Senior Accountant», FID «Accountant» and FID «Junior Accountant». The salary data was presented in the three sections: Monthly Fixed Pay, Annual Fixed Pay and Annual Total Pay, and Remuneration on particular positions. Please note that statistics on monthly salary and annual total pay are calculated separately. Therefore, the sum of statistical measure on a monthly salary for 12 months and the corresponding statistical measure on variable pay, in general, will not correspond to the annual total pay of the position. EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

7 Structure of the Compensation Package The information was gathered for the following main elements of pay: Monthly Fixed Pay, including: Monthly base salary Allowances Guaranteed payments + Variable Pay, including: Annual performance-related bonus Monthly, quarterly and semi-annual bonuses Basic element of compensation package; paid on a monthly basis or more frequently, usually guaranteed to the employee by the employment agreement. Paid regularly (usually on a monthly basis), always in the same amount, in addition to the base salary; usually linked to the function or working conditions (e.g. allowance for harmful conditions). These allowances may be statutory or company-provided. Payments predefined in the amount or percentage of a basic salary and are paid to employees. Payments that are not connected to employee or company performance. This type of remuneration is typically paid monthly or at the end of the year. Bonus paid only if company / employee meet certain annual goals. May be determined as a percentage of basic salary or based on other approach. Bonus paid to the employee on a monthly/ quarterly/ semi-annual basis, if company/ employee meets certain goals in the respective period. Commission remuneration Bonus paid to the employee after carrying out commercial operations / transactions, usually calculated as a percentage of the transaction amount. Long-term incentive payments Other forms of variable pay Cash payments to employees according to long-term incentive programs (e. g., bonuses based on the valuation of the company s shares, price of the company, company's key performance indicators, progress towards long-term projects, etc.) Other forms of variable pay not covered in the previous categories. = Annual Total Pay Sum of all the elements paid to a certain jobholder in annual terms. This is the main information for benchmarking, as it describes the overall remuneration for the jobholder. In the final report we present information regarding total monthly fixed pay, total annual pay and each element of variable pay for each of the jobs. However, the most important information concerns: Monthly Fixed Pay Annual Total Pay Structure of the compensation package (Fixed / Variable) The Survey also contains the proportion between the Fixed Pay and Variable Pay for each job. The average structure of the package shows how widespread are cash incentives within the compensation package for each position. The average percentage of Variable Pay in the Annual Total Pay is calculated for each job. This figure is calculated by determining the percentage of variable pay for each jobholder and then taking the median of this data. EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

8 Definitions of Terms used in the Survey Number of incumbents For each position, the number of employees reported by participants is presented. The higher the number, the more reliable are the results. Deciles For the purposes of statistical analysis, all the data is organized in an ascending order. Lower decile is the parameter that describes the first 10th percent of the sample. For example, if there were 100 employees on a Financial Analyst position and their salaries were organized in the ascending order, the 10th lowest salary would be the figure for the lower decile. Similarly, the upper decile describes the 90th percent point of the sample (in the above example the 90th salary). Generally speaking, deciles cut off the lower and upper 10 percent of the sample, due to this they describe the sample much better than the minimum and maximum that can sometimes be misleadingly extreme. Quartiles The abovementioned approach is used, the only difference is that quartiles represent respectively 25th percent (first or lower quartile) and 75th percent (upper quartile) of the sample, i.e., 25th salary out of 100 and 75th salary out of 100. Quartiles are considered as a stable and valid measure, because they represent the middle 50 percent of the sample (i.e., 50 percent of the salaries are between first and third quartile). Median Median represents the salary of the middle employee in the sample (or the average of the two middle employees if the number of data points in the sample is even). It is used for the purposes of compensation analysis due to its stability. Median shows the value that is considered to be the most representative for the distribution. For example, the answer to the question How much is HR Specialist paid? would be the value of the median. Average Standard arithmetic average calculated as a sum of all the salaries divided by the number of incumbents. Average itself is not a good measure, because it is highly sensitive to the extreme minimum and maximum values. However, it is commonly used together with the median, because it serves properly as a control parameter, and the comparison of both values gives additional information on the distribution of the sample. EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

9 Description of the job code formation The scheme below shows an example of job code formation, and also the link between the organizational structure and individual job code. Warehouse worker LOG Function (In example Logistics) LOG Number of subfunction to which the given position is matched (In example The Department of Warehousing as Logistics subfunction) Level of position (1-10) Where should I look if I want to know what lower decile really means? what is the average remuneration for middle management? what is the monthly fixed pay of HR Director? what is the annual fixed pay and annual total pay for a Senior Accountant? how much I should pay my Sales Representative? How to use this salary survey Number of position in the given subfunction at the given level. For example, if subfunction at one level has three positions, the last digits of their codes will be, respectively, 10, 20 and 30. Monthly Fixed Pay and Annual Total Pay information by levels Monthly Fixed Pay Fixed Pay and Total Pay Remuneration on particular positions EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

10 Description of Categories and Levels Job categories used in the survey Level Examples of job titles Top Management 1 CEO / President 2 First Deputy of CEO / First Vice-President 3 Vice-President / Director Senior Management 4 Head of Department / Directorate 5 Head of Division Middle Management 6 Head of Division (Unit) / Manager Professional Clerical / Manual Workers 7 Chief / Leading Specialist 8 Specialist 9 Junior Specialist / Worker 5-6th grade 10 Assistant / Worker 1-4th grade EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

11 List of participants

12 List of participants of General Industry Survey * 1. ABC Pharma 2. APM terminals Poti 3. Europe-bet 4. Geocell 5. Georgian National Communications Commission 6. Georgian Railway 7. GPC 8. Heidelberg Cement 9. Iberia Refreshments 10. Insurance Company GPI Holding 11. Insurance Company IC Group 12. Jacobs Georgia 13. Lukoil 14. Magticom 15. Megatechnica 16. Mobitel 17. Mondelez 18. Oriflame 19. PSP Insurance 20. PSP Pharma 21. Railway Property Management 22. Rompetrol 23. Saga 24. Silknet 25. Tegeta Motors 26. Telasi 27. VTB Bank EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

13 Georgia Compensation and Benefits Survey 2016 Volume 1. Salary report

14 Summary 27 companies participated in the Survey Information on monthly fixed pay Data as of June 30, Information on total annual pay Information by positions and by EY levels Information on cities and regions of Georgia 71% of participated companies increased salaries during the period from July 2015 to June % Actual salary increase (median) ACTUAL PLAN 7% Planned salary increase (median) 50% of participated companies have already planned salary increase for the period from July 2016 to June 2017 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

15 Monthly Fixed Pay - summary

16 Monthly Fixed Pay Georgia Gross remuneration expressed in GEL, including allowances and "guaranteed" payments as of 30 June 2016 Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents ADM Administration Director 7 ADM Office Manager 13 ADM Housekeeping Manager 15 ADM100 Translators/Interpreters 11 ADM Senior Translator / Interpreter 3 ADM Translator / Interpreter 8 ADM Personal Assistant to General Manager 13 ADM Executive Assistant / Secretary 16 ADM Department Assistant 19 ADM Receptionist , ADM Office Supplies Manager 7 ADM Office Supplies Specialist 14 ADM Head of Record Management Unit 6 ADM Chief Specialist of Record Management Unit 6 ADM Documentation Coordinator 8 ADM Archives Head 5 ADM Archivist 21 ADM Fleet Manager 6 ADM Head of Transport Department 3 ADM Traffic / Transportation Coordinator 32 ADM500 Drivers 57 ADM Driver 49 ADM Personal Driver 8 ADM Courier 9 ADM Bus Driver 7 ADM Facilities Engineer 11 ADM Mechanic 12 ADM Sanitary Technician 13 ADM Electrician 61 ADM Cleaner 70 ADM Landscape Architect 5 ADM Board Secretary 4 BDD Head of Business Development Department 8 BDD Business Development Manager 7 BDD Strategy Development Manager 3 CAC Head of Call Center 13 CAC Call Center Supervisor 14 CAC Call Center Direct Sales Specialist 5 CAC100 Call Center Operators 39 CAC Senior Call Center Operator 15 CAC Call Center Operator 24 CCD Architect 6 CCD Head of Real Estate Search and Evaluation Unit 3 CLS Customer Service Director 5 CLS Post-sale Service / Warranty Manager 3 CLS Post-sale Service Engineer 4 CLS Head of Customer Service Division 17 CLS Customer Service Manager 38 CLS200 Customer Care Specialists 134 CLS Leading Customer Service Specialist 25 CLS Customer Service Specialist 56 CLS Junior Customer Care Specialist 53 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

17 Monthly Fixed Pay Georgia Gross remuneration expressed in GEL, including allowances and "guaranteed" payments as of 30 June 2016 Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents CSD110 Specialists of Technical Claims Handling Unit 7 CSD Specialist of Technical Claims Handling Unit 4 CSD130 Specialists of Claims Settlement Unit 8 CSD Chief Specialist of Claims Settlement Unit 7 FID000 Finance Directors 16 FID Finance Director (Board) 9 FID Finance Director 7 FID Financial Department Head 7 FID Planning and Economic Department Head 6 FID Senior Planning and Economic Department Specialist 4 FID Chief Accountant 26 FID Deputy Chief Accountant 9 FID110 Accountants 113 FID Senior Accountant 27 FID Accountant 61 FID Junior Accountant 25 FID Cashier 74 FID120 Payroll Accountants 4 FID Accounts Receivable Control Specialist 16 FID Finance Controllers 19 FID Chief Finance Controller 9 FID Finance Controller 10 FID130 Finance Analysts / Economists 30 FID Senior Finance Analyst / Senior Economist 16 FID Finance Analyst / Economist 11 FID International Accounting Unit Head 4 FID140 IFRS/ GAAP Accountants 4 FID Senior IFRS / GAAP Accountant 3 FID Tax Manager 6 FID200 Tax Specialists 4 FID Head of Treasury 7 FID300 Specialists of Treasury 11 FID Chief Specialist of Treasury 3 FID Specialist of Treasury 6 FID Head of Payments Unit 7 FID400 Specialists of Payments Department 15 FID Chief Specialist of Payments Department 5 FID Specialist in Payments Department 10 FID Head of Budgeting Department 5 FID600 Budgeting Specialists 7 FID Senior Budgeting Specialist 5 GEM General Manager 15 GEM000 General Directors / Viсe-Presidents Deputy 18 GEM First Deputy General Director / First Viсe-President 10 GEM General Director / Viсe-President Deputy 8 GEM Division Manager 5 GEM Head of Regional Development Department 3 GRD Government Relations Specialist 5 HRD000 HR Directors 12 HRD HR Director (Board) 5 HRD HR Director 7 HRD Head of HR Department 4 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

18 Monthly Fixed Pay Georgia Gross remuneration expressed in GEL, including allowances and "guaranteed" payments as of 30 June 2016 Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents HRD Human Resources Manager 13 HRD200 Human Resources Generalists 7 HRD Human Resources Generalist 5 HRD Training and Development Manager 6 HRD300 Training and Development Specialists 10 HRD Chief Training and Development Specialist 5 HRD Training and Development Specialist 4 HRD Internal Trainer 11 HRD Compensation and Benefits Manager 7 HRD400 Compensation and Benefits Specialists 3 HRD Recruitment Manager 5 HRD500 Recruitment Specialists 7 HRD Recruitment Specialist 5 HRD HR Administration Manager 3 HRD600 HR Administration Specialists 16 HRD Leading HR Administration Specialist 3 HRD HR Administration Specialist 11 HRD Human Resources Assistant 6 HSE100 Labor Safety Inspectors / Specialists 10 HSE Senior Labor Safety Inspector / Specialist 5 HSE Labor Safety Inspector / Specialist 4 HSE300 Environmental Security Inspectors / Specialists 5 HSE Environmental Security Inspector / Specialist 5 HSE Assistant in Health, Safety and Environmental Security Department 3 IAT000 Head of Internal Audit 4 IAT Head of Internal Audit (Board) 3 IAT Internal Audit Manager 7 IAT Internal Auditor 18 IAT Employee Fraud Detection Specialist 4 IAT Compliance Manager 4 ISD300 Corporate Sales Specialists 10 ISD Corporate Sales Specialist 7 ITD000 IT Directors / Chief Information Officers 10 ITD Chief Information Officer (board) 3 ITD IT Director 7 ITD IT Auditor 3 ITD IT Manager 12 ITD001 IT Specialists 27 ITD Senior IT Specialist 6 ITD IT Specialist 18 ITD Head of Implementation and Development Department 3 ITD110 Implementation Specialists 14 ITD Senior Implementation Specialist 4 ITD130 System Analysts 13 ITD Senior System Analyst 5 ITD135 System Architects 3 ITD Database Administration Unit Head 8 ITD Database Administrator 12 ITD Desktop Support Manager 10 ITD300 Desktop Support Specialist 18 ITD Desktop Support Specialist 12 ITD Junior Desktop Support Specialist 6 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

19 Monthly Fixed Pay Georgia Gross remuneration expressed in GEL, including allowances and "guaranteed" payments as of 30 June 2016 Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents ITD Service Desk Manager (Helpdesk) 4 ITD305 Service Desk Specialists 18 ITD Service Desk Specialist (Helpdesk) 13 ITD Junior Service Desk Specialist (Helpdesk) 5 ITD Telecommunication Systems Support Administrator 9 ITD Information Security Manager 3 ITD400 System Administrator 5 ITD Head of System Administration Unit 6 ITD500 Information Security Specialists 32 ITD Senior System Administrator 11 ITD System Administrator 16 ITS Team Lead 5 ITS110 Developers (General) 20 ITS Expert Developer, General 8 ITS Middle Developer, General 7 ITS114 Developers (SAP) 13 ITS320 Business Analysts 45 ITS Business Analyst 28 LEG000 General Counsels 19 LEG General Counsel (Board) 8 LEG General Counsel 11 LEG100 Legal Advisors 48 LEG Senior Legal Advisor 13 LEG Experienced Lawyer 14 LEG Legal Advisor 17 LEG Junior Lawyer 4 LEG200 Lawyers on Claims and Litigation 10 LEG Senior Lawyer for Claims and Litigation 8 LEG300 In-House Lawyers 21 LEG Senior In-House Lawyer 6 LEG Experienced In-House Lawyer 6 LEG In-House Lawyer 9 LEG Research Assistant (Legal) 3 LOG Head of Logistics Department 7 LOG Logistics Manager 17 LOG100 Logistics Specialists 31 LOG Senior Logistics Specialist 6 LOG Logistics Specialist 23 LOG Import / Export Manager 3 LOG110 Import / Export Coordinators 8 LOG Import / Export Coordinator 6 LOG120 Transportation Coordinators / Operators 9 LOG Transportation Coordinator / Operator 6 LOG Truck Driver 50 LOG Customs Clearance Manager 4 LOG Customs Clearance Specialist / Customs Applicant 13 LOG Delivery Driver 9 LOG200 Supply Chain Specialists 5 LOG Warehouse Manager 14 LOG Warehouse Shift Supervisor 14 LOG Warehouse Specialist / Supervisor 15 LOG Warehouse Administrator 11 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

20 Monthly Fixed Pay Georgia Gross remuneration expressed in GEL, including allowances and "guaranteed" payments as of 30 June 2016 Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents LOG Warehouse Loader 19 LOG Warehouse Worker 21 LOG Inventory Inspector 9 LSS Supply Chain Director 3 LSS100 Distribution Specialists 24 LSS Distribution Specialist 16 LSS Purchasing Manager 18 LSS200 Purchasing Specialists 42 LSS Chief Purchasing Specialist 13 LSS Purchasing Specialist / Buyer 29 LSS Tender Manager 5 LSS Database Management Assistant 5 MAR000 Marketing Directors 9 MAR Marketing Director 6 MAR Advertising Manager 3 MAR100 Advertising Specialists 6 MAR Leading Advertising Specialist 3 MAR Marketing Manager 12 MAR200 Marketing Specialists 15 MAR Leading Marketing Specialist 5 MAR Marketing Specialist 7 MAR Designer 16 MAR Junior Marketing Specialist 3 MAR Research Manager 4 MAR300 Researchers 8 MAR Researcher 5 MAR Marketing Communications Manager / PR Manager 9 MAR400 PR Specialists 10 MAR Leading PR Specialist 3 MAR PR Specialist 7 MAR Product / Brand Manager 15 MAR500 Product / Brand Specialists 10 MAR600 Social Media Marketing (SMM) Specialists 5 MAR Social Media Marketing (SMM) Specialist 3 MAR CRM Specialist 3 MAR Digital Manager 6 PHS Senior Pharmacist 5 PHS Pharmacist 7 PHS Senior Medical Representatives 7 PHS Senior Medical Representative 7 PHS Medical Representatives 11 PHS Medical Representative 11 PMD Senior Project Manager 4 PMD Project Management Unit Head 9 PMD000 Project Management Specialists 15 PMD Chief Project Management Specialist 4 PMD Project Management Specialist 11 PRD Technical Director / Chief Engineer 5 PRD Shift Foreman 114 PRD Chief Maintenance Engineer 8 PRD400 Maintenance Engineers 17 PRD Senior Maintenance Engineer 5 PRD Maintenance Engineer 12 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

21 Monthly Fixed Pay Georgia Gross remuneration expressed in GEL, including allowances and "guaranteed" payments as of 30 June 2016 Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents PRD500 Senior Engineers (Production) 14 PRD Senior Engineer (Production) 9 PRD Engineer 5 PRD Chief Utilities Engineer 8 PRD600 Utilities Foreman 43 PRD Senior Utilities Engineer 30 PRD Crane Operators 58 PRD Welders 34 PRD Electric Fitters 84 PRD Electric Fitter (3rd Level) 78 PRD Mechanic, Repair of Process Equipment / Maintenance Service 199 PRD Mechanic, Repair of Process Equipment / Maintenance Service (3rd Level) 55 PRD Forklift Driver 13 PRE Registration Manager 4 PRE100 Registration Specialists 6 PRE Registration / Re-registration Specialist 4 QUC Quality Assurance Manager 12 QUC Quality Assurance Specialist 13 RST Retail Store Manager (less than 50 employees) 35 RST420 Sales Consultants 72 RST Senior Sales Consultant 25 RST Sales Consultant 47 SED Head of Security Department 9 SED Security Manager 19 SED Security Shiftman 12 SED220 Security Guards 49 SED Senior Security Guard 12 SED Security Guard 37 SLS000 Sales & Marketing Directors 7 SLS Sales & Marketing Director (Board) 5 SLS Sales Director / Commercial Director 11 SLS Sales Managers 56 SLS National Sales Manager 9 SLS Regional Sales Manager 23 SLS Area / Territory Sales Manager 24 SLS Supervisor (Sales Representative Group) 20 SLS Sales Representatives 35 SLS Sales Representative 31 SLS Merchandiser 11 SLS Key Account Manager 6 SLS Key Account Supervisor 7 SLS Key Account Specialist 7 SLS Technical Support Specialist 3 SLS Trainer 3 SLS Trade Marketing Manager 3 SLS Sales Manager 15 SLS Leading Sales Specialist 10 SLS Assistant of Sales Manager 16 SLS Sales Development / Support Leading Specialist 7 SLS Sales Analyst 16 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

22 Annual Fixed Pay and Annual Total Pay - summary

23 Annual Fixed Pay and Annual Total Pay Georgia Gross Annual Fixed Pay in GEL as of 30 June 2016: Gross Annual Total Pay in GEL July June 2016: Job title Job title Job Code Job Title Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents ADM Administration Director 7 ADM Administration Director 7 ADM Office Manager 13 ADM Office Manager 13 ADM Housekeeping Manager 15 ADM Housekeeping Manager 15 ADM100 Translators/Interpreters 11 ADM100 Translators/Interpreters 11 ADM Senior Translator / Interpreter 3 ADM Senior Translator / Interpreter 3 ADM Translator / Interpreter 8 ADM Translator / Interpreter 8 ADM Personal Assistant to General Manager 13 ADM Personal Assistant to General Manager 13 ADM Executive Assistant / Secretary 16 ADM Executive Assistant / Secretary 16 ADM Department Assistant 19 ADM Department Assistant 19 ADM Receptionist 5,533 6,150 9,000 11,802 16,500 9, ADM Receptionist 5,835 6,532 9,570 11,997 19,758 10, ADM Office Supplies Manager 7 ADM Office Supplies Manager 7 ADM Office Supplies Specialist 14 ADM Office Supplies Specialist 14 ADM Head of Record Management Unit 6 ADM Head of Record Management Unit 6 ADM Chief Specialist of Record Management Unit 6 ADM Chief Specialist of Record Management Unit 6 ADM Documentation Coordinator 8 ADM Documentation Coordinator 8 ADM Archives Head 5 ADM Archives Head 5 ADM Archivist 21 ADM Archivist 21 ADM Fleet Manager 6 ADM Fleet Manager 6 ADM Head of Transport Department 3 ADM Head of Transport Department 3 ADM Traffic / Transportation Coordinator 32 ADM Traffic / Transportation Coordinator 32 ADM500 Drivers 57 ADM500 Drivers 57 ADM Driver 49 ADM Driver 49 ADM Personal Driver 8 ADM Personal Driver 8 ADM Courier 9 ADM Courier 9 ADM Bus Driver 7 ADM Bus Driver 7 ADM Facilities Engineer 11 ADM Facilities Engineer 11 EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

24 Remuneration on particular positions

25 Position title: Receptionist Code: ADM Number of companies: 7 1. Characteristics of the sample Sales volume [mln USD] % of companies Number of employees % of companies < ,000 >1, % 14.3% 0.0% 42.9% 42.9% 0.0% 0.0% 0.0% 0.0% < ,000 1,000-2,000 2,000-5,000 >5, % 0.0% 14.3% 28.6% 28.6% 28.6% 0.0% 0.0% 2. Characteristics of the incumbents Level of professional qualification: Foreign language skills are necessary for this position International experience Actual scope of responsibilities: 3. Annual Fixed Pay and Annual Total Pay distribution [GEL gross] Please, note that information on compensation is published only if data on not less than 3 incumbents have been provided. Only those regions meeting the above requirement are included into the report. Georgia Tbilisi Monthly Fixed Pay Annual Fixed Pay Annual Total Pay Monthly Fixed Pay Annual Fixed Pay Annual Total Pay 4. Monthly Fixed Pay distribution [GEL gross] Entry-level salary (Median) Lower decile First quartile Median Third quartile Upper decile Average Number of incumbents , ,533 6,150 9,000 11,802 16,500 9, N/A 5,835 6,532 9,570 11,997 19,758 10, , ,978 6,000 7,500 11,988 15,602 9, N/A 6,087 6,476 8,125 11,988 18,902 10, Monthly Base Salary , Company-provided allowances Statutory allowances Amount of other forms of Monthly Fixed Pay Annual Variable Pay distribution [GEL gross] Annual performance - related bonus N/A Monthly, quarterly and semi-annual bonuses N/A Amount of other forms of Variable Pay N/A TOTAL VARIABLE PAY ,823 1,192 Target percentage of variable compensation (from annual base pay) N/A Target total annual cash compensation (GEL) Number of incumbents Number of incumbents 50.0% N/A Slightly lower than in Job Description Manual 0.0% 88.9% 11.1% FROM (Lower decile) FROM (Lower decile) Median Median Exactly like in Job Description Manual TO (Upper decile) TO (Upper decile) Average Average N/A Slightly higher than in Job Description Manual 6. Compensation Structure (median) Annual Fixed Pay 95.4% Annual Variable Pay 4.6% EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

26 Electronic tool for benchmarking analysis

27 Electronic tool for benchmarking analysis Electronic tool for benchmarking analysis (hereinafter the Tool) is provided with Salary report and allows for comparing salary levels in your company with corresponding market indicators on your own. Furthermore, the Tool allows the following: The Tool saves time you spent for analysis The results are presented in simple and illustrative format There is a possibility to prepare a brief analysis in PowerPoint or Excel format Additional options: Converting Survey data from Gross to Net and Net to Gross Conducting the comparative analysis in any currency (GEL / USD / EUR) Updating data on the percentage of market movement The Participants of the Surveys can visit the training How to use the Tool for free The results of the Electronic tool for benchmarking analysis usage are presented below The determination of the company market position Position of company`s jobs against the market EY Level Standard EY levels description This level represents personnel of ''Top Management'' Job category Examples of job titles: CEO / President This level represents personnel of ''Top Management'' Job category Examples of job titles: First Deputy of CEO / First Vice-President This level represents personnel of ''Senior Management'' Job category Examples of job titles: Vice-President / Director This level represents personnel of ''Senior Management'' Job category Examples of job titles: Head of Department / Directorate This level represents personnel of ''Middle Management'' Job category Examples of job titles: Head of the Division This level represents personnel of ''Middle Management'' Job category Ex amples of job titles : Head of Division (Unit) / Manager This level represents personnel of ''Professionals'' Job category Ex amples of job titles : Chief / Leading Spec ialist This level represents personnel of ''Professionals'' Job category Ex amples of job titles : Spec ialist This level represents personnel of ''Clerical/Manual Staff'' Job category Examples of job titles: Junior Specialist / Worker of 5-6th grade This level represents personnel of ''Clerical/Manual Staff'' Job category Examples of job titles: Assistant / Worker of 1-4th grade The results of the benchmarking analysis with market by levels and categories Low er Decile First Quartile Median Third Quartile Upper Decile 0% 100% 0% 0% 0% N/A N/A N/A N/A N/A 50% 50% 0% 0% 0% 0% 0% 100% 0% 0% 10% 40% 10% 40% 0% 0% 11% 11% 36% 42% 8% 11% 40% 30% 11% 0% 3% 22% 42% 33% 0% 0% 44% 31% 25% 0% 2% 14% 36% 48% More than 25% underpay in comparison with the market benchmark In line with the market benchmark More than 25% overpay in comparison with the market benchmark The most overpaid positions The most underpaid positions 4% Job Name Overpayment Job Name Underpayment 87% 61% 38% 32% 66% 13% 13% 4% 1% 2% Lower Decile First Quartile Median Third Quartile Upper Decile Average 13% 74% 67% 29% 30% 66% Courier - Kyiv +244% HR Director (Board) - Kyiv -43% Transportation Coordinator / Operator - Lviv Area / Territory Sales Manager - Kharkiv Transportation Coordinator / Operator - Ukraine Head of Call Center - Kyiv +105% +171% Chief Purchasing Specialist - Kyiv -38% +157% General Counsel (Board) - Kyiv -34% +131% Head of Support Department - Kyiv -34% Head of Supply Chain Department - Kyiv Housekeeping Manager - Kyiv +105% Finance Director (Board) - Kyiv -24% Transportation Coordinator / Operator - Donetsk Transportation Coordinator / Operator - Kharkiv Project Management Specialist - Ukraine Area / Territory Sales Manager - Donetsk -25% +100% Head of Security Department - Kyiv -23% +95% Sales Trainer - Dnipropetrovsk -23% +94% Head of Trade Marketing - Kyiv -21% +92% Office Manager - Kyiv -21% The deviation rate of employee s salaries with market data The deviation analysis of employees salaries on market indicators The positions, departments, levels and regions that have the highest deviation from the Survey data Comparative graph is an illustrative representation of the positions remuneration levels (the company data and the market) Comparison table - a detailed comparison of each position / employee of the company with the market EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

28 Georgia Compensation and Benefits Survey 2016 Volume 2. HR Policies and Practices report

29 HR Policies and Practices report table of contents* Key points List of participants Characteristics of the participants Salary arrangements Salary adjustments Grading pay structure Market data benchmarks policy Salary adjustments Policy of usage of regional coefficients metrics Frequency of salary adjustments Salary changes Short- and long-term incentive programs Short-term incentive programs Principles of variable pay determination Indicators that are used for calculation of variable pay Incentive programs for employees of sales department Bonus pool determination and distribution Long-term incentive plans (LTIPs) Performance management Management by objectives / key performance indicators (KPIs) Management by competencies Sales Department Employees in production Social benefits and allowances Benefits and non-cash remuneration Learning and development opportunities Health insurance and medical care Perquisites Non-cash benefits Working Time Arrangements Business travel policy Recruitment policy Policies / practices on transfer of employees to work in other Georgian regions / countries Employment plans Characteristics of the employees Succession pool Diversity HR Agenda and development plans Expatriate employees Internship programs HR * The table of contents of each report may vary due to the number of participants / quantity of provided information EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

30 Key points

31 27 participating companies Insurance Pharma Banks FMCG Salary increase: actual (July 2015 / June 2016) Participants Participating companies represent more than 10 different industries. The majority of participants are large companies (employing more than 500 employees) with a sales volume of mln USD 45% of participating companies are 100% foreign owned companies Retail Telecommunication Salary changes by industry of companies of companies of companies of companies of companies of companies Production Pharma Agrochemical FMCG Retail Salary increase: plan (July 2016 / June 2017) Telecom of companies of companies Banks Insurance of companies of companies of companies of companies of companies of companies of companies of companies Salary changes of companies review salaries annually, that is _% less than in the previous year, due to an increase in the number of companies that review salaries less frequently than annually of companies have already planned a salary increase in 2017 of The majorityof companies -, review salaries in January *General Industry Compensation and Benefits Surveys , EY of companies by of companies by of companies by of companies by _% of companies by _% of companies by of companies rely on market indicators while reviewing salaries. The majority of them rely on median and 3 rd quartile Salary arrangements of companieshave changed the salary denomination currency, the majority moved from foreign currency to local currency of companies use graded pay structure, as in the previous year of companies denominate salaries in foreign currency, that is _% less than in the previous year of companies are planning to develop / implement a graded pay structure in the next 12 months of companies outsource payroll calculation to an external provider, that is _% less than in the previous year of companies apply regional coefficients, that is _% more than the previous year s indicator Cash compensation structure of companies use variable pay, that is _% more Manual Workers than in the previous year Professional / Clerical Middle Management Senior Management Top Management of companies use long-term incentive plans, that is _% less than in the previous year Staff turnover general staff turover rate in 2016 (in 2015 ) General staff turnover rate by industry (median) Banks Production Retail Insurance Pharma FMCG Telecom Agrochemical minimum% of sales plan accomplishment required for of companies use short-term incentive plans, which Fixed pay Variable pay Company in general Sales department bonus eligibility for sales department specialists is 9% more than in the previous year of companies use services of recruitment agencies of companies lease personnel from external providers, of companies offer internship programs, which (_% in 2015) that is _% more than in the previous year is _% more than the previous year s indicator of companies provide trainings to employees, that is _% less than last year s indicator GEL is the annual training budget (median GEL amount per employee trained) which is _% lower than in the previous year _% of companies track training needs, which is _% more than in 2015 of employees changed positions in 2016, which is _% more than in the previous year Companies employment plans for the next year, % of companies Plan to reduce number of staff in 2017 by on average years is the average length of employee s service in one position, as was in 2015 Benefits Health insurance Meals Benefits (% of companies) Benefits for employee s children _% _% Company cars Staff The top-3 scarcest skills for management Plan to keep number of staff Plan to increase number of staff in 2017 by on average Top-5 priorities in HR agendas in 2017, % of companies Sports Transportation of employees Loans Mobile phones The top-3 scarcest skills for other specialists Pension plan Tablets EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

32 Characteristics of the participants

33 Characteristics of the participants Total number of participating companies 24 Total number of employees Annual revenue (mln USD) >1,000 25% >1,000 4% 500-1,000 25% % % % 5-10 <50 13% <5 8% Legal structure Ownership State agency, 4% Limited Liability Company (LLC), 63% Joint-stock company (JSC), 33% 500-1, % 0% 4% Joint venture, 17% 100% foreign owned, 45% 17% 17% 21% 100% locally owned, 38% 29% EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

34 HR Policies and Practices

35 Salary arrangements Currency regulations % of companies Salary denominated in local currency 79% Salary denominated in foreign currency 21% Salary denominated in foreign currency 17% 8% Foreign currency used (as a % of companies denominating salaries in foreign currency) Exchange rate arrangements Internal exchange rate determined by the company 17% 25% Salary payment Salary contracted as: Top Management Salary denominated in local currency 83% % of companies Top Management Senior Middle Management Professional / Clerical Manual Workers Management 100% 100% 100% 80% USD 92% 100% 100% 100% % of companies Top Management Senior Management Senior Management Middle Management Professional / Clerical Manual Workers National Bank's exchange rate 83% 75% 100% EUR 75% 100% Net, 29% Gross, 71% EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

36 HR metrics

37 HR metrics Organizational effectiveness Annual revenue per FTE Annual average cost per FTE Annual profit per FTE and others HR metrics Remuneration Annual average remuneration Annual average cash compensation Percentage of total cash compensation costs in total personnel costs and others HR metrics Recruitment External recruitment rate, internal recruitment rate Average monthly number of job openings Cost per hire and others HR metrics Performance management metrics % of top performers % of low performers and others HR metrics Training policy Proportion between internal and external trainings Annual training budget, GEL per employee completed training Percentage of the training budget in the total annual remuneration fund (%) and others HR metrics HR function Annual HR budget per FTE Outsourcing level of HR function and others HR metrics EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

38 Contact information

39 Contact information Zurab Nikvashvili Partner Tel (32) Tina Kachakhidze Manager Tel (32) Nana Khetsuriani Consultant Tel (32) Olena Boichenko Director Tel. 380 (44) Miranda Morchadze Senior consultant Tel (32) EY. COMPENSATION AND BENEFITS SURVEY (GEORGIA) - DEMO VERSION

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