COMPENSATION REVIEW AND ANALYSIS SERVICES TAKING THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS

Size: px

Start display at page:

Download "COMPENSATION REVIEW AND ANALYSIS SERVICES TAKING THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS"

Harold Wells
5 years ago
Views:

1 COMPENSATION REVIEW AND ANALYSIS SERVICES TAKING THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS

COMPENSATION REVIEW AND ANALYSIS SERVICES WHAT ARE MERCER S COMPENSATION REVIEW AND ANALYSIS SERVICES?... facing a challenging timeline with a lack of resources? WHY USE CRAS?

2 COMPENSATION REVIEW AND ANALYSIS SERVICES WHAT ARE MERCER S COMPENSATION REVIEW AND ANALYSIS SERVICES?... facing a challenging timeline with a lack of resources? WHY USE CRAS?... still looking for the best way to go about the process? Facing a challenging timeline and resource constraints? CRAS can help provide: Additional resources: A dedicated team of consultants and analysts will provide the extra help you need to ensure you keep to your set timeline. Efficiency and accuracy: Mercer s expertise, tools, and experience will add greater efficiency and accuracy to your process. Maximize attraction and retention: Maximize your organization s talent attraction and retention with effective analysis of competitive pay levels throughout the market. Greater return on investment: The value of greater efficiency, reduced errors, and expert analysis and reporting translates into much greater returns to your business. HOW MERCER CAN HELP Compensation analysis External market competitiveness C onducting data analysis on market competitiveness among peers and/or industry-wide on pay levels S tudying compa-ratio with the market as per company pay philosophy U nderstanding competitive practices on market pay mix policy Internal analysis C onducting data analysis on company data to gauge internal parity and see alignment of actual pay practices to the pay policy Salary range review Review of existing salary range at each level to ensure marketcompetitive base salary structure to guide informed pay decisions. Analysis would also include recommendations on salary range spread, salary overlap, and progression rates that correlate with each level. 2 1 ARE YOU... Mercer s Compensation Review and Analysis Services (CRAS) are specifically designed to assist clients during their annual salary review process. We become an extension of your compensation function and apply our expertise to your review process.... concerned that your current pay levels aren t competitive?

Typical Compensation Activity Cycle 1. Identify benchmark jobs 2. Participate in remuneration survey a) Perform job matching. 3. Analyze compensation and review salary range 4.

Expected Deliverables from Mercer's Compensation Review and Analysis Services (CRAS) 1.

3 Typical Compensation Activity Cycle 1. Identify benchmark jobs 2. Participate in remuneration survey a) Perform job matching. 3. Analyze compensation and review salary range 4. Complete year-end reporting and budgeting 5. Review salaries b) Evaluate positions. c) Submit data. d) Receive survey results. Expected Deliverables from Mercer's Compensation Review and Analysis Services (CRAS) 1. Compensation analysis External market competitiveness Key findings of market competitiveness against a peer group/industry Market analysis by job family, career level, and incumbent Compa-ratio as per company philosophy Compensation mix analysis by company level/grade or career level Company trendline vs. market trendline, based on regressed data Internal analysis Pay dispersion index: compa-ratio scatter plotting compared to target compa-ratio at each position class Internal compensation practice vs. policy (XXth percentile philosophy) at each position class Incumbent scatter diagram at each position class 2. Salary range review Each job or group of jobs is linked to a salary grade considering internal and/or external value Each grade has a salary range with a minimum, midpoint, and maximum along with range spread and midpoint differential 32

4 PRICING Compensation review and analysis services Price in SGD for TRS members Price in SGD for non-trs member* Compensation analysis 4,950 14,950 Compensation analysis AND salary range review 15,000 25,000 * Access to latest Mercer Total Remuneration Survey shall be provided via the online tool WIN (Workforce Intelligent Network). SAMPLE OUTPUT Data Analysis by Job Family 90% 70% 80% 73% Deviation from median (%) 50% 30% 10% -10% 14% -5% 49% 37% 21% 36% 20% -11% 0% -30% -50% HR Administration IT analysis and design Marketing Engineering -40% -40% Finance Information technology Sales and marketing Research and development Supply and logistics -29% Compensation Mix Analysis 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Market PC45 86% 14% Level 2 93% 12% Market PC47 90% 12% Level 3 93% 10% Market PC49 88% 13% Level 4 90% 14% Market PC50 89% 11% Level 5 90% 10% Market PC51 90% 14% Level 6 84% 8% Market PC53 86% 14% Level 7 87% 15% Fixed cash % Variable % 3

5 Company Trendline vs. Market Trendline Salary p.a. (SGD) 350, , , , , ,000 50, Position class Market ratio 25th percentile Market ratio 75th percentile Market ratio 50th percentile Company trendline Company Practice vs. Policy 300,000 Salary p.a. (SGD) 250, , , ,000 Company policy 50,000 Incumbent scatter as per current practice Position class 4

6 Pay Dispersion Index 160% 140% 120% Current compa-ratio scatter 100% Target comparatio 80% 60% Position class Salary Range Review (SGD) Grade Minimum Midpoint Maximum 1 $27,200 $34,000 $40,800 2 $30,464 $38,080 $45,696 3 $34,120 $42,650 $51,180 4 $38,214 $47,768 $57,321 5 $42,800 $53,500 $64,200 6 $47,936 $59,920 $71,904 7 $53,688 $67,110 $80,532 8 $60,131 $75,163 $90,196 Salary Range Review (USD) Salary p.a. (USD) $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Grade Salary range 5

8 For further information, please contact your local Mercer office or visit our website at: Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Finland France Germany Hong Kong India Indonesia Ireland Italy Japan Malaysia Mexico Netherlands New Zealand Norway Peru Philippines Poland Portugal Saudi Arabia Singapore South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom United States Venezuela Copyright 2013 Mercer LLC. All rights reserved IS

WORKFORCE METRICS BENCHMARK REPORT

WORKFORCE METRICS BENCHMARK REPORT THE MORE YOU KNOW, THE SMARTER YOU WORK As an HR professional, you focus on helping your organization optimize its human capital, but how do you show that achievement?