SUNCOASTHR MEMBER MEETING

Transcription

1 HEALTH WEALTH CAREER SUNCOASTHR MEMBER MEETING JUNE 2018 DANIEL N. HAELSIG SENIOR ASSOCIATE

2 US COMPENSATION PLANNING AND MBD SURVEY OVERVIEW US Compensation Planning Survey Comprehensive budget data collected for a broad spectrum of compensation planning aspects 16 M ILLION EMPLOYEES REPRESENTED Surveying this topic for 20+ YEARS More Than 1,500 PARTICIPATING ORGANIZATIONS Mercer Benchmark Database (MBD) Survey Job based research on changes in compensation across industries, job families, and career streams 2.5 MILLION EMPLOYEES REPRESENTED 1,500+ POSITIONS 35 JOB FAMILIES 16 CAREER LEVELS More Than 3,100 PARTICIPATING ORGANIZATIONS 2

3 US COMPENSATION PLANNING KEY FINDINGS 98% OF PARTICIPATING ORGANIZATIONS WILL AWARD SALARY INCREASES 88% 3.4% HIGH PERFORMERS GET AVERAGE 2017 TOTAL INCREASE BUDGET (INCLUDES SALARY INCREASE BUDGETS AND PROMOTIONAL INCREASE BUDGETS) 1.7x THE SALARY INCREASE OF AN AVERAGE PERFORMER. 2.8% AVERAGE BASE SALARY INCREASE BUDGET IN 2017 (1) 2.9% AVERAGE PROJECTED 2018 BASE SALARY INCREASE BUDGET (1) OF PARTICIPATING ORGANIZATIONS TIE SALARY INCREASES TO INDIVIDUAL PERFORMANCE 2017 SALARY INCREASES REMAIN CONSISTENT WITH THE PAST 5 YEARS. Source: 2017/2018 US Mercer Compensation Planning Report, effective July (1) Including 0 s. 3

4 ACTUAL BASE SALARY CHANGES POSITIONS WITH LARGEST CHANGES* Social Media Communications Professional Entry had the greatest increase in median base salary (5.8%) for the second consecutive year; other positions ranged from 4.5% to 5.4%. Median % Change in Base Salary 8.6% 5.8% Social Media Communications Prof - Entry 1.5% Technologist - Senior 5.4% 5.3% 3.5% *Data is representative of same organization, same jobs, with the highest change in median base salary. Only jobs with 10 or more organizations reporting were included. Each year of historical analysis (2016) is taken in isolation Category Management Director 4.9% 4.8% 4.7% 4.6% 4.5% 4.1% 3.2% 3.0% Research Scientist - Entry Product/Brand Mktg Supv 2016 Change 2017 Change Public Relations Prof - Entry Employee Assist Program (EAP) Manager Web Applications Developer - Entry JOB FAMILY Communications Engineering Marketing R&D Marketing Corporate Affairs HR IT Analysis & Design *Source: 2017 US Mercer Benchmark Database, effective March 1,

5 BASE SALARY ADJUSTMENT BY PERFORMANCE DIFFERENTIATION CONTINUES 88% of organizations use individual performance to drive base salary Actual 2018 Projected PERFORMANCE RATINGS HIGHEST NEXT HIGHEST MIDDLE LOW LOWEST 0.2% 0.1% 1.0% 1.0% 2.6% 2.7% 3.6% 3.7% 4.5% 4.7% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% AVERAGE INCREASE Source: 2017/2018 US Mercer Compensation Planning Report, effective July

6 PROMOTIONAL INCREASES ORGANIZATIONS CONTINUE TO BUDGET SEPARATELY 10.0% PROMOTIONAL INCREASES (AS % BASE SALARY) FIVE- YEAR TREND 9.0% 8.0% Executive Management Professional (sales) 7.0% 6.0% Professional (Non-Sales) Office /Clerical/Technical Trades/Production/Service 5.0% All averages exclude 00 s. Some data points may not be visible due to similar values in more than one employee group. Source: 2017/2018 US Mercer Compensation Planning Report, effective July

7 PROMOTIONAL INCREASES PROFESSIONALS CAREER STREAM DIFFERENTIATION The median change in base salary for professional-level incumbents promoted to the next level ranges from 7-12%. EXPERT LEVEL 7% ($8.7K) SPECIALIST LEVEL 10% ($9.6K) SENIOR LEVEL 12% ($8.7K) EXPERIENCED LEVEL 11% ($6.4K) ENTRY LEVEL PROMOTED TO PROMOTED TO PROMOTED TO PROMOTED TO Promotional increase % ($) n=19,879 incs *Source: 2017 US Mercer Benchmark Database, effective March 1,

8 AN EMPLOYEE S CAREER JOURNEY At 3% merit and 10% promotional increases (or bring to minimum), our employee is still not at market median after 10 years $90,000 $80,000 $70,000 Base Pay $60,000 $50,000 $40,000 $45,000 $46,350 $50,985 $52,515 $54,090 $59,499 $61,284 $63,122 $65,016 $66,967 $30,000 $20,000 $10,000 $ Year Salary Range Employee Pay (3% Merit) 8

9 AN EMPLOYEE S CAREER JOURNEY At 5% merit and 10% promotional increases (or bring to minimum), our 5-star rated employee is finally compensated above market median in year 9 $90,000 $80,000 Base Pay $70,000 $60,000 $50,000 $40,000 $45,000 $47,250 $51,975 $54,574 $57,302 $63,033 $66,184 $69,494 $72,968 $76,617 $30,000 $20,000 $10,000 $ Year Salary Range Employee Pay (5% Merit) 9

10 SALARY STRUCTURE ADJUSTMENTS STRUCTURE ADJUSTMENTS BY INDUSTRY 2.4% Transportation 2.6% 83% of organizations reported having a formal salary structure. 2.3% 2.4% 2.4% Healthcare Services* Services (Non-Financial) Retail & Wholesale 2.1% 2.2% 2.3% 2.5% Other Non-Manufacturing 2.2% 2.2% Other Manufacturing 2.2% 2.0% Mining & Metals 2.0% 74% 2.3% 2.7% Logistics Life Sciences 2.3% 2.5% Of organizations plan to adjust their salary structure in % 2.5% 2.2% Insurance/Reinsurance High Tech Energy 2.2% 2.3% 2.2% 2.3% Consumer Goods 2.3% 2.2% Chemicals 2.2% 2.7% Banking/Financial Services 2.4% 3.0% 2.0% 1.0% 2017 ACTUAL 0.0% 0.0% 1.0% 2.0% 3.0% 2018 PROJECTED *Healthcare Services is an industry sector and is included in the Services (Non-Financial) Industry Super Sector Source: 2017/2018 US Mercer Compensation Planning Report, effective July

11 AN EMPLOYEE S CAREER JOURNEY At 3% merit and 10% promotional increases (or bring to minimum) along with 2% structure movement, our employee consistently rides the range minimum $120,000 $100,000 $80,000 Base Pay $60,000 $40,000 $45,000 $46,350 $50,985 $52,515 $54,090 $61,829 $63,683 $65,594 $67,562 $69,589 $20,000 $ Year Salary Range Employee Pay (3% Merit) 11

12 AN EMPLOYEE S CAREER JOURNEY At 5% merit and 10% promotional increases (or bring to minimum) along with 2% structure movement, our 5-star rated employee is below market median all 10 years $120,000 $100,000 $80,000 Base Pay $60,000 $40,000 $45,000 $47,250 $51,975 $54,574 $57,302 $63,033 $66,184 $69,494 $72,968 $76,617 $20,000 $ Year Salary Range Employee Pay (5% Merit) 12

13 AN EMPLOYEE S CAREER JOURNEY AN OPTIMAL JOURNEY Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-6 Years 6-7 Years 7-8 Years 8-9 Years % 15% 10% 10% 5% 5% 5% 5% 5% $120,000 $100,000 Base Pay $80,000 $60,000 $40,000 $45,000 $49,500 $56,925 $62,618 $68,879 $72,323 $75,939 $79,736 $83,723 $87,909 $20,000 $ Year Salary Range Employee Pay 13

14 AN EMPLOYEE S CAREER JOURNEY AN OPTIMAL JOURNEY DIVIDING THE RANGE Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-6 Years 6-7 Years 7-8 Years 8-9 Years % 14% 9% 9% 4% 9% 5% 6% 8% $120,000 $100,000 $94,811 Base Pay $80,000 $60,000 $40,000 $43,333 $51,000 $58,262 $63,672 $69,276 $72,133 $78,831 $82,773 $87,484 $20,000 $ Year Salary Range Employee Pay 14

15 GLOBAL COMPENSATION PLANNING G7 COUNTRIES 15

16 GLOBAL COMPENSATION PLANNING OTHER NOTABLE COUNTRIES (2017) Country GDP Change Inflation Rate Unemployment Rate Salary Increases Brazil 0.4% 3.5% 13.1% 6.3% Venezuela -4.8% % 25.3% % China 6.6% 2.4% 4.0% 6.5% India 7.2% 4.8% 3.4% 9.5% South Korea 2.7% 1.8% 3.8% 4.4% Poland 3.5% 1.8% 5.2% 3.1% UAE 1.5% 2.8% 3.6% 4.0% Switzerland 1.5% 0.4% 4.5% 1.5% South Africa 0.8% 6.2% 26.9% 6.9% 16

17 SHORT- TERM INCENTIVES BY CAREER STREAM* ELIGIBILITY AND RECEIVERSHIP Incentive eligibility and receivership remained largely unchanged year over year. 2016: N=1,507,673 Incs 2017: N=1,580,947 Incs *Each year of historical analysis (2016) is taken in isolation. 91% 90% 78% 77% 75% 72% 59% 58% 51% 51% 40% 40% 32% 30% 19% 17% Executive Management Professional Para-professional % Eligible % Receiving *Source: 2017 US Mercer Benchmark Database, effective March 1,

18 LONG- TERM INCENTIVES BY CAREER STREAM* ELIGIBILITY AND RECEIVERSHIP Long-term incentive eligibility and receivership remained consistent across all career streams. 2016: N=1,507,673 Incs 2017: N=1,580,947 Incs *Each year of historical analysis (2016) is taken in isolation. 62% 61% 50% 50% 17% 17% 11% 10% 6% 6% 2% 2% 2% 2% 1% 1% Executive Management Professional Para-professional % Eligible % Receiving *Source: 2017 US Mercer Benchmark Database, effective March 1,

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