HEALTH WEALTH CAREER MERCER COMPTRYX A NEW WAY FOR HR TO DELIVER BUSINESS INTELLIGENCE 17 NOVEMBER 2017 BY PATRICK GUTMANN MERCER

HEALTH WEALTH CAREER MERCER COMPTRYX A NEW WAY FOR HR TO DELIVER BUSINESS INTELLIGENCE 17 NOVEMBER 2017 BY PATRICK GUTMANN MERCER

TODAYS PRESENTER Questions To submit a question, use the floating panel on the top of your screen and click the Q&A button: Patrick Gutmann CLICK HERE TO ASK A QUESTION TO ALL PANELISTS. Sector Leader Europe patrick.gutmann@mercer.com MERCER 2016 1

THE MERCER COMPTRYX DIFFERENCE? Are your Executives asking new questions that you just can t answer? How do our payroll cost compare to our competitors? What is our span of control, and what is its effect on cost? What s the most cost effective location for our next R&D center? Where are we losing engineers at a higher rate than our peers? MERCER 2016 2

MERCER COMPTRYX A GLOBAL PLATFORM IN 3 PARTS WORKFORCE METRICS Compare the size, shape, mix and demographics of your organization to the competition. LABOR COST MODELLING Design virtual organizations and get an instant calculation of payroll costs in potential locations around the world. GLOBAL SALARY PLATFORM The database of over 3 million employee records allows you to conduct pay analysis for all jobs across the globe. MERCER 2016 3

MERCER COMPTRYX WORKFORCE METRICS PROFILE YOUR ORGANIZATION AGAINST THE COMPETITION FINANCIAL LEVEL FUNCTION LOCATION DEMOGRAPHICS FULL ANALYTICAL CAPABILITY YOU VS. YOUR MARKET MERCER 2016 4

UNDERSTANDING PAY AND COST TRADITIONAL PAY ANALYSIS WHILE PAY APPEARS COMPETITIVE MEASURING PEOPLE COST PAYROLL AS % OF REVENUE Payroll as % of Revenue (Last FY) USD 35% 36.41% $ 30% 25% 30.60% 15% Job 1 Job 2 Job 3 Job 4 Job 5 Job 6 5% MERCER 2016 5

LEVEL ANALYSIS REVIEW OF LEVELS UNCOVER THE WHY BEHIND OVERALL PAYROLL COSTS MAJOR ROLE DISTRIBUTION OF PROFESSIONAL STAFF 80% 70% 60% 50% 40% 30% 7.54% 20.04% 71.69% 66.46% 18.78% 12.75% 1.99% 0.57% 35% 30% 25% 15% 5% 17.34% 5.88% 22.07% 17.52% 26.24% 31.25% 21.04% 31.64% 12.75% 11.35% 0.97% 1.45% Supp (all) Prof (all) Mgmt Exec P1 Entry P2 Developing P3 Proficient P4 Mastery P5 Expert P6 Advisory MORE EXECUTIVES AND MANAGERS CREATES LOWER SPAN OF CONTROL AND RAISES PAYROLL COST SKEW OF LOWER LEVEL STAFF CAN LOWER PAYROLL COST MERCER 2016 6

FUNCTIONAL ANALYSIS FUNCTIONAL DIFFERENCES CAN REFLECT STRATEGY OR CAN INFLUENCE COST % Headcount of selected pop. 60% 50% 49.22% 40% 32.91% 30% 27.33% 18.44% 3.24% 3.90% 1.58% 1.44% 3.75% 5.93% 8.96% 5.92% 5.03% 2.93% 4.73% 6.45% Finance HR IT Ops Services R&D ing Sales MORE HEADCOUNT IN HIGH COST FUNCTIONS (E.G. R&D) DRIVES UP PAYROLL COSTS MERCER 2016 7

LOCATION ANALYSIS LOCATION OF STAFF HAS BOTH STRATEGIC AND COST IMPACT %HEADCOUNT BY REGION %PAYROLL BY REGION 70% 70% 63.70% 60% 60% 54.57% 50% 45.97% 50% 40% 40% 31.81% 30% 22.48% 30% 21.64% 18.56% 15.02% 18.45% 15.71% 0% 6.51% 8.54% 3.67% 2.65% 1.28% 2.25% 2.45% 0.36% 0.81% 2.25% LATAM/Carrib. Canada Mexico US China/Central India/West Europe M. East/Africa 0% 7. 7.08% 1.24% 2.13% 2.47% 2.51% 3.29% 4.08% 2.07% 2.45% 0.26% 0.50% LATAM/Carrib. Canada Mexico US China/Central India/West Europe M. East/Africa LOWER UTILIZATION OF LOWER-COST COUNTRIES RAISES PAYROLL COSTS MERCER 2016 8

DEMOGRAPHIC ANALYSIS NEXT GENERATION DEMOGRAPHIC ANALYSIS % Promoted 40% 30% 0% 14% 12% 8% 7% 15% 19% 19% 8% 8% 8% 13% 13% 12% 8% 14% 17% 18% 17% 14% 11% 12% 12% 13% 12% 11% 14% 13% 11% 13% 12% 15% 27% 24% 19% 17% 16% 15% 15% 13% 13% 14% 11% 11% 11% 11% 11% 11% 11% 12% 12% 12% 12% 0% 40% 60% 80% 100% % Top Performers EUROPE Europe Finland Italy Spain Belgium Russia Czech Republic Denmark Switzerland United Kingdom Netherlands Sweden Ukraine Slovakia France Germany Romania Hungary Greece Slovenia Ireland Austria Norway Poland Bulgaria Serbia Estonia % Promoted Top Performer MERCER 2016 9

DEMOGRAPHIC ANALYSIS POWERFUL ORGANIZATIONAL INSIGHT THROUGH DEMOGRAPHIC ANALYSIS EXPERIENCE BY FUNCTION TOP PERFORMERS BY LEVEL 25 23.2 25% 20 15 16.3 16.4 14.8 18.1 15.1 18.4 19.9 15.3 17.1 15.3 16.6 18 21.2 20.7 20.9 15% 12.55% 13.12% 14.37% 16.77% 19.83% 13.64% 17.76% 9.78% 10 6.99% 6.37% 7.49% 6.96% 7.59% 7.63% 5 5% 3.8% 4.03% 5.41% 3.79% Finance HR IT Legal Services R&D Mktg Sales Supp (all) P1 Entry P2 Developing P3 Proficient P4 Mastery P5 Expert P6 Advisory Mgmt Exec MERCER 2016 10

TURNOVER/CHURN MONITOR TALENT MOVEMENT TO SUPPORT WORKFORCE PLANNING NEW HIRE TURNOVER (VOLUNTARY) 60% 16% 14.1% 50% 50% 14% 40% 30% 21.13% 8.88% 11.19% 21.03% 8.83% 43.77% 23.96% 16.24% 16.45% 17.97% 13.82% 15.27% 7.88% 16. 13.76% 12% 8% 6% 4% 2% 7.4% 11.4% 8.2% 10.7% 7% 6.9% 4.2% 2.7% 10.5% 8.1% 8.7% 9% 9.4% 7.7% 10.5% Americas LATAM/Carrib. US China/Central India/West S&E Asia Europe M. East/Africa Finance HR IT Ops Services R&D Mktg Sales AN ORGANIZATION S PROFILE CHANGES OVER TIME BASED ON THE CHURN IN YOUR WORKFORCE WHO IS HIRED AND WHO LEAVES. MERCER 2016 11

GENDER DEMOGRAPHIC ANALYSIS UNDERSTAND KEY GENDER DIVERSITY MEASURES HEADCOUNT (TECH SUPP, EUROPE) WAGE GAP (R&D, U.S.) Female Male Female Male 120,000 100,000 111,358 94,782 80,000 80,882 69,222 38% 29% 60,000 62% 71% 40,000 20,000 MERCER 2016 12

AGE DEMOGRAPHIC ANALYSIS UNDERSTAND AGE METRICS SEGMENTED BY CATEGORIES AGE BY AGE CATERGORY AGE CATERGORY BY COUNTRY India 40% 37% 35% China 30% 29% 27% Brazil 19% 22% 15% 13% USA UK 2% 2% Canada 0% 21-30 31-40 41-50 51-60 61-70 AGE CATEGORY Germany 0% 40% 60% 80% 100% 20's 30's 40's 50's 60's MERCER 2016 13

MERCER COMPTRYX LABOR COST MODELING COMPARE PEOPLE COSTS FROM ONE LOCATION TO ANOTHER ü ü ü ü BUILD YOUR MODEL ORGANIZATION CHOOSE STARTING AND PROPOSED LOCATIONS PROJECT COSTS TO FUTURE DATE DETERMINE THE AGGREGATE COST DIFFERENCE MERCER 2016 14

THE MERCER COMPTRYX DIFFERENCE Benchmark the size, shape and cost of your global organization against direct competitors via a Unique Workforce Metrics and Modeling tool. Deliver powerful insights necessary for HR to be an effective strategic business partner in the era of big data. Gain competitive advantage by determining your optimal organization structure to meet business objectives. MERCER 2016 15

MERCER COMPTRYX WHERE TO FIND US AND WHAT S COMING VISIT OUR WEBPAGE: www.comptryx.com JOIN OUR LINKEDIN COMMUNITY: Mercer Comptryx Global Pay and Workforce Analytics NEW EDITIONS FOR NEW SECTORS COMING IN 2017: Life Sciences Edition Financial Services Edition New Sector in Tech Version for Aerospace & Defence MERCER 2016 16

MERCER COMPTRYX CONTACT INFORMATION HIGH TECH Patrick Gutmann Tel: +49 69 689778 473 Email: patrick.gutmann@mercer.com FINANCIAL SERVICES Michelle New Tel: +44 20 7178 5651 Email: michelle.new@mercer.com LIFE SCIENCES Peter Stevenson Tel: +44 7584 389 265 Email: peter.stevenson@mercer.com MERCER 2016 17

QUESTIONS? Patrick Gutmann Sector Leader Europe patrick.gutmann@mercer.com QUESTIONS Please type your questions in the Q&A section of the toolbar and we will do our best to answer as many questions as we have time for. To submit a question while in full screen mode, use the Q&A button, on the floating panel, on the top of your screen. FEEDBACK Please take the time to fill out the feedback form at the end of this webcast so we can continue to improve. The feedback form will pop-up in a new window when the session ends. CLICK HERE TO ASK A QUESTION TO ALL PANELISTS

MERCER 2016 19