55
2016 U.S. CSR General Industry Compensation Survey Results and Trends Webinar © 2016 Willis Towers Watson. All rights reserved. August 16, 2016 Willis Towers Watson Data Services Chris Shumate, Mike Patrick, Mei Nishiwaki, Lianne Cancellieri and Kristin Cappelli Please dial in using the following details: U.S. Attendee Dial-in: (855) 299-6703 International Toll Attendee Dial-in: (330) 863-8348 Conference ID: 15337474

2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

  • Upload
    dinhthu

  • View
    262

  • Download
    8

Embed Size (px)

Citation preview

Page 1: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 U.S. CSR General Industry Compensation

Survey Results and Trends Webinar

© 2016 Willis Towers Watson. All rights reserved.

August 16, 2016

Willis Towers Watson Data Services

Chris Shumate, Mike Patrick, Mei Nishiwaki, Lianne Cancellieri and Kristin Cappelli

Please dial in using the following details:

U.S. Attendee Dial-in: (855) 299-6703

International Toll Attendee Dial-in: (330) 863-8348

Conference ID: 15337474

Page 2: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Today’s presentation

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 2

• Welcome and introductions

• State of attraction and retention

• Pay-for-performance outcomes

• 2016 CSR General Industry Survey overview and methodology

• 2016 CSR General Industry Survey results

• Understanding CompSource

• Wrap up and Q&A

Please dial in using the following details:

U.S. Attendee Dial-in: (855) 299-6703

International Toll Attendee Dial-in: (330) 863-8348

Conference ID: 15337474

Kristin CappelliMei NishiwakiMichael PatrickChris Shumate Lianne Cancellieri

Presenters

Page 3: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Customized SurveysCustomized surveys and reports

tailored to your organization’s specific

compensation data questions or needs

Research & PublicationsStudies on benefits, employment terms

and conditions, global publications

written by a dedicated research team

Data & ConsultingPractical and actionable advice on

market competitiveness, ranging from

single benchmark to company-wide pay

practice review

Compensation SurveysLocal, regional and global Web-

based compensation market data,

analytics and reports

Willis Towers Watson Data Services

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 3

• Extensive global network of local and regional survey experts and local consulting offices – covering 100+

countries globally

• Best-in-class market data and interpretation reflecting unique local governance and cultural practices

Page 4: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson CSR General Industry Surveys

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 4

At a glance

CSR General Industry Compensation Reports Package

For organizations that want an easy-to-use snapshot of total cash compensation

for benchmark positions and specific job level

CSR general industry package is comprised of 14 surveys reports

Accounting and Finance

Call Center and Customer Service

Engineering, Design and Technical

Specialty

Human Resources

Information Technology

Logistics and Supply Chain Management

Marketing and Communications

Sales Compensation

Eight reports by job function

Office and Business Support

Technical Support and Production

Professional (Administrative and Sales)

Professional (Technical and Operations)

Supervisory and Middle Management

Top Management*

Six reports by job level

* There is a separate submission process for the Top Management report

Over 630 survey participants - predominantly less than $2.5 billion in revenue

Close to 340 disciplines, more than 4,500 discipline/career level combinations

Page 5: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 CSR General Industry Compensation Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 5

CSR Report Package

– results delivered

of participants overlap in

participation across 6 job

level reports

600+ June

368 3.1%

increase in the

number of

positions reported

in our 2016

reports positions reported

package participants

in 2016 Survey

65%

889,023 incumbents

Page 6: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 6

State of attraction and retention

2016 CSR General Industry Survey

Page 7: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 7

Talent mobility is rising

Competition for top talent is fierce

Attraction and retention risks abound particularly for key talent

Traditional reward program design and execution are falling short of

delivering a strong pay-for-performance orientation

Organizations are considering changes to performance management

approaches and processes

Organizations considering impact of CEO pay ratios and FLSA changes

Effectively integrating the design and delivery of pay-for-performance,

performance management, and career management programs in

meaningful ways is imperative to drive desired business results.

State of Attraction & Retention

The challenge: The talent landscape is more competitive than ever

Page 8: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 8

52%are reporting difficulty keeping critical-skill employees, compared with 41% in 2013.

2 in 3employers (66%) reported having problems attracting critical-skill employees.

State of Attraction & Retention

Pressures mount particularly for key talent like

critical-skill employees

Source: Talent Management & Rewards and Global Workforce Studies

Page 9: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 9

State of Attraction & Retention

The inability to get and keep top-performers

heightens the issue

42%are reporting difficulty keepingtop-performing employees,compared with 35% in 2013.

51%of employersreported having problems attracting top-performing employees.

Source: Talent Management & Rewards and Global Workforce Studies

Page 10: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 10

53% said hiring

activity has increased compared to last year.

40% indicated that

turnover is rising.

Talent mobility is still increasing

State of Attraction & Retention

Source: Talent Management & Rewards and Global Workforce Studies

Page 11: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 11

As attraction challenges increase, U.S. employers need to

understand what employees and top-performers value

State of Attraction & Retention

Employer view Employee view Top-performer view

1 Challenging work Base pay/Salary Base pay/salary

2 Base pay/salaryCareer advancement

opportunitiesJob security

3 Organization’s values Job security Organization’s reputation

4Career advancement

opportunitiesOrganization’s reputation Career advancement opportunities

5 Organization’s reputation Vacation/PTO Challenging work

6 Health care and wellness benefits Health care and wellness benefits Vacation/PTO

7Learning & development

opportunities / Job security

Learning & development

opportunitiesHealth care and wellness benefits

Source: Talent Management & Rewards and Global Workforce Studies

Page 12: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 12

Retaining top-performing employees requires a balanced total

rewards portfolio

State of Attraction & Retention

Employer view Employee view Top-performer view

1Career advancement

opportunitiesBase pay/Salary Career advancement opportunities

2 Base pay/salaryCareer advancement

opportunitiesBase pay/salary

3Relationship with

supervisor/managerJob security Job security

4 Manage/limit work-related stressTrust/confidence in senior

leadershipManage/limit work-related stress

5 Flexible work arrangements Manage/limit work-related stress Health care and wellness benefits

6Learning & development

opportunitiesLength of commute

Short-term incentives (e.g., annual

bonus)

7 Length of commuteRelationship with

supervisor/manager

Trust/confidence in senior

leadership

Source: Talent Management & Rewards and Global Workforce Studies

Page 13: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 13

Pay-for-performance outcomes

2016 CSR General Industry Survey

Page 14: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 14

Pay-For-Performance Outcomes

Employers are mostly tracking the market in a “business as usual”

model for merit budgets

Wage increases in local markets

Organizational financial performance in most

recent year

Budgets in previous cycles

Other

Long-term organizational performance

19%

71%

32%

54%

8%

Source: Talent Management & Rewards and Global Workforce Studies

Page 15: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Total salary increases

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 15

Where companies granted increases

2015 salary

increases

2016 salary

increases

2017 salary

increases

Avg %

granted

No. of

responses

Avg %

granted

No. of

responses

Avg %

granted

No. of

responses

Executives 3.3% 629 3.2% 658 3.1% 634

Management,

excluding executives3.0% 715 3.0% 739 3.0% 690

Exempt,

nonmanagement3.0% 712 3.0% 731 3.0% 686

Nonexempt salaried 2.9% 472 2.9% 495 3.0% 482

Nonexempt hourly 2.9% 616 2.9% 631 3.0% 591

Source: 2016 General Industry Salary Budget Survey - U.S.

Pay-For-Performance Outcomes

Page 16: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 16

But, some managers are rethinking the role of merit pay by moving

beyond short-term individual performance towards a more holistic

approach…

Pay-For-Performance Outcomes

In making decisions about merit increases, employer respondents say their managers

give more weight to the following indicators than was called for in program design:

Program

Design

Manager

Considerations

Criticality of roles 19% 42%Possession of skills critical to the success of

the future business model 25% 45%Demonstration of knowledge and skills

required in current role 46% 64%

Achievement of team goals 25% 41%

Source: Talent Management & Rewards and Global Workforce Studies

Page 17: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Salary increases related to performance ratings

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 17

Where companies granted increases

4.6% 4.6% 4.6% 4.5%

2.6% 2.6% 2.5% 2.5%

0%

1%

2%

3%

4%

5%

Management, excludingexecutives

Exempt, nonmanagement Nonexempt, salaried Nonexempt, hourly

Chart Title

Highest possible rating Average rating

Pay-For-Performance Outcomes

Source: 2016 General Industry Salary Budget Survey - U.S.

Page 18: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 18

In annual incentive plans, however, individual performance remains

the most prevalent factor used to differentiate payouts…

Pay-For-Performance Outcomes

Which of the following does your organization use in determining allocation of

bonuses??

Overall performance rating 70%

Managerial discretion 49%

Overall corporate performance 48%

Performance against specific goals 38%

Completion of project milestones 7%

Team performance against specific goals 5%

The final performance rating remains the most prevalent factor used to

determine final individual awards, tempered with managerial discretion

Source: Talent Management & Rewards and Global Workforce Studies

Page 19: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 19

…but unfortunately, companies end up differentiating less and

payouts for top-performers get decreased relative to average

performers

Short-term incentive payouts relative to expectations met

Pay-For-Performance Outcomes

Source: Talent Management & Rewards and Global Workforce Studies

Page 20: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 20

What organizations can start doing today to drive a stronger pay-

for-performance orientation

Pay-For-Performance Outcomes

Employers need to differentiate talent and reward programs for key employee

segments. Organizations that get this right prioritize the following:

• Essential to ensure

upside for top-

performers and

downside consequences

(i.e., no bonus payout)

for poor performers

• Funding at target should

not be blue moon event

• Calibrate plan funding

and targets to increase

likelihood of full funding

• May consider reducing

eligibility or target

payouts

• Must offer top-performers

and employees with

critical skills differentiated

training and development

and well defined road

map of advancement

opportunities

Accountability

Attention to

bonus plan

design and

goal setting

Accelerated

career

development

Page 21: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 21

CEO pay

CEO pay ratio – the basics

medianpay within the

company

253:1

Pay for all employees globally

(including part-time and

contingent workers) is used to

calculate median

CEO makes 253

times median pay

CEO pay has been disclosed in the

proxy for years

Employees will see the median

pay in their company for the first

time

Page 22: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

What we need from stakeholders

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 22

CEO and

Executive

Leaders

Know what the

ratio means in

comparison to

other organizations

Understand

potential reactions

from employees as

well as external

audiences

Don’t be defensive

or dismissive

HR

Create

communication to

support leaders,

managers and

employees

Provide education

around the ratio

Managers

Help employees see

that pay is only one

element of total

rewards; reinforce the

total value proposition

Communicate how the

company ensures pay

is competitive

Understand their role

and how to

communicate

messages about pay

transparency and

fairness

Employees

See their pay as fair

and competitive

Understand how pay

is only one element of

the larger total

rewards deal

Understand how pay

is set and why

different positions

have different pay

Page 23: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Fair Labor Standards Act (FLSA) has been in effect since 1938

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 23

What is it and why is it so important?

Applies to all U.S. employees: Exemptions from the law are based on how an

employee is paid, what he/she is paid, and her/his job duties

Who does it

affect?

A foundational element of compensation administration in the

U.S; it has implications on employee earnings, job levelling and architecture,

and other programs and processes (e.g., flexible workweeks, paid time off)

Why is it

important to our

clients?

U.S. federal law that establishes minimum wage, overtime pay eligibility,

recordkeeping and child labor standards; it affects full- and part-time workers in

the private sector and in federal, state and local governments

What is it?

There has been an upward trend in lawsuits related to FLSA; violations

may lead to civil and criminal penalties, extensive investigation by the

Department of Labor, and millions of dollars in settlements

Why else is it

important?

Last month, the U.S. DOL announced these major changes to the law

Page 24: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Clients must meet changes in the law by December 1, 2016

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 24

Intention of the law is to protect employees

from working extraordinary hours without

being fairly compensated

Key Change Current New Reality

Minimum weekly earnings required to be exempt

from overtime$455/week

($23,660 annual)

$913/week

($47,476 annual)

Minimum annual earnings required to be

designated as a Highly Compensated Employee

and exempt from overtime$100,000 $134,004

• Other changes:

Starting 1/1/2020 the minimum weekly earnings will be updated automatically every

three years

Inclusion of nondiscretionary incentives to make up to 10% of weekly earnings

Page 25: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 25

Survey methodology

2016 CSR General Industry Survey

Page 26: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson job matching methodology

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 26

CSR General Industry - top management executive benchmarks

Executive Benchmark PositionsSample Benchmark Description

12

Assign the Executive Benchmark

Infrastructure for job organization

• Job codes and titles

• Functions and families

• Areas of specialization

Describes work type and focus

• Accounting, HR, Engineering

• Internal vs. external focus

Matching to Benchmarks

• Incumbents’ actual work may vary from the

description (80% rule)

Finance

AFA000-EX CFO/Top Financial Officer

Establishes, implements, and maintains the financial plans and

policies of the organization, including fiscal controls, preparation

and interpretation of financial reports, and safeguarding of the

organization’s assets

Develops and maintains overall accounting policies and

controls

Establishes and maintains good corporate relations with the

investment and banking communities

May manage one or more significant staff functions, but primary

focus is the management of the organization’s finances

AFB000-EX Financial Controller

Has primary responsibility for management of the organization’s

accounting function

Maintains all accounting records (general, property, cost, etc.),

designs and implements budgetary and other systems for

internal control, and prepares financial reports for management

and shareholders

Page 27: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson job matching methodology

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 27

CSR General Industry - all employees excluding top management

Assign Job ContentAssign Job Level

12

Assign the Function and DisciplineAssign Job Levels

• Determine Career Bands

• Assign Career Levels Code Title

AFB Accounting

Discipline Code Discipline Title

AFB000 Accounting Generalist/Multidiscipline

AFB010 General Accounting

AFB020 Financial Reporting

Page 28: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson job matching methodology (continued)

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 28

Code Function

AAS Administrative Services

AAT Transportation Services and Admin

AAY Security

ACA Corporate Affairs/Communications

ACD Strategic Planning/Corporate Devt

AFB Accounting

AFC Credit and Collections

AFT Financial Analysis and Tax

AFU Audit and Financial/Bus Controls

AFY Risk Management

AHR Human Resources

AHS Environmental Health and Safety

AID IT Development

AIT IT Administration

ALG Legal

CAM Account Management

CSC Channel Sales

CSD Direct Sales

CSG Government Sales

CTS Telesales

CUS Sales Support and Administration

CUT Technical Sales Support

Multi-Industry

Code Function

ALS Legal Support

AMK Marketing

AMS Customer Support/Operations

AMT Technical Customer Support

AOM Manufacturing/Operations

APM Project/Program Management

AQY Quality Assurance Methods

ARE Real Estate and Facilities

ARP Product Development

ARR Product Development Support

ASC Supply Chain and Logistics

AZE Engineering

AZT Technical Specialty/Skilled Trade

AZU Manual/Unskilled Labor

Customer/Client Management and Sales

Assign the Function and Discipline1 Assign Job Content

Page 29: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson job matching methodology (continued)

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 29

Assign Job Levels2

Assign Job Levels

• Determine Career Bands

• Assign Career Levels

• Align survey levels with

your internal structure

Professional (Tech & Ops)

Professional (Admin and Sales)

Supervisory and

Middle Management

Technical Support

and Production

Technical Support

and Production

Office and

Business Support

Professional (Admin

and Sales)

Page 30: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson job matching methodology

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 30

Two steps to matching your jobs to job content and job levels

Assign Job ContentAssign Job Level

12

Professional Career Band (P)

P1 P2 P3 P4 P5 P6

Entry Interm. Career ExpertSr.

ExpertRenowned Expert

Job Code: AFB010-P2

Job Title and Level: Accounting Generalist – Intermediate

Assign the Function and Discipline

Code Title

AFB Accounting

Discipline Code Discipline Title

AFB000 Accounting Generalist/Multidiscipline

AFB010 General Accounting

AFB020 Financial Reporting

Assign Job Levels

• Determine Career Bands

• Assign Career Levels

Page 31: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 31

Overview and results

2016 CSR General Industry Survey

Page 32: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 CSR General Industry Compensation Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 32

Participant overview

Global Corporate Revenue Total FTEs

Less than $500M27%

$2B-$5B19%

Greater than $5B

24%

Less than 1,00020%

1,000 to 5,00031%

5,000 to 20,00029%

Greater than 20,00020%

$500M-$2B

30%

Page 33: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Organization Classification Quick Facts

8,923 employees

427 organizations

65 industry classifications

92 geographic areas

102 executive benchmarks

Actual Bonus Payout as a % of Target Bonus Top ‘Hot’ Executive Jobs

2016 CSR Top Management Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 33

In general, majority of participating organizations have revenues of

less than $2 billion.

30%

31%

21%

20%Greater than $5B

$2B - $5B

$500M - $2B

Less than $500M

Annual Median

Salary ($000)

% Increase

2015 to 2016

Top Marketing

Communications Executive

201.6 22.6%

Top Strategic Planning and

Development Executive

277.0 11.9%

Top Information

Technology Executive

203.3 11.6%

Top Sales and Marketing

Executive

275.0 10%

115%

110%

103%100%

120%

112%

103%100%

2008 2011 2014 2016

All Jobs (w/o CEO) CEO

Page 34: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

CEO and top executives

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 34

Total direct compensation ($000) and pay mix

Total Direct Compensation ($000) Pay Mix

Source: Willis Towers Watson 2016 CSR General Industry Top Management Report

4540 37 36

23

1518

14 18

15

40 4248 46

62

AHR001−EX − Top HR Executive

(with Labor Relations)

AAB002−EX − Group

Head

AFA000-EXCFO/TopFinancial

Offier

AAA020-EXChief

OperatingOfficer

AAA000-EXChief

ExecutiveOfficer

Base % Bonus % LTI %

350401

482

560

1,008

AHR001−EX − Top HR

Executive (with Labor Relations)

AAB001−EX − Segment Head

AFA000-EXCFO/TopFinancial

Offier

AAA020-EXChief

OperatingOfficer

AAA000-EXChief

ExecutiveOfficer

Base Bonus LTI

Page 35: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Long-term incentive plan design

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 35

LTI Plan Design

Restricted stock/restricted stock units (RSUs)

continue to be the dominant form of long-term

incentives

Number of LTI Awards

68% of companies are granting a portfolio of long-

term incentives

69%

58%

42%

24%

7%

RestrictedStock/Units

PerformanceShares

StockOptions

PerformanceCash

SARs

Number of LTI Awards Prevalence

One LTI Award 32%

Two LTI Awards 37%

Three LTI Awards 30%

Four LTI Awards <1%

Page 36: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 CSR Supervisory and Middle Management Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 36

Top Five Industries Quick Facts

• 138,177 employees

• 535 organizations

• 82 industry classifications

• 228 geographic areas

• 299 functions/families

Compensation Generalist

Median Base Salary ($000) by Career Level

Management Incumbent Distribution

by Career Level

Majority of participating organizations are in the Services sector

72.4

104.8

129.5

154.0

75.8

108.4

131.5

158.0

M1 M2 M3 M4

2015 Base Salary (000)

2016 Base Salary (000)

36%

42%

16%

6%0%

60%

M1 M2 M3 M4

6%

12%

16%

14%

35%Services

Banking, Finance andInsurance

Durable GoodsManufacturing

Health Care

Nondurable GoodsManufacturing

Page 37: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 CSR Professional Surveys

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 37

Company StructureProfessional Quick Facts

Admin & Sales Technical & Operations

• 147,486 employees

• 537 organizations

• 86 industry

classifications

• 222 geographic areas

• 164 job functions

• 125,043 employees

• 528 organizations

• 85 industry

classifications

• 209 geographic areas

• 101 job functions

Website Administration

Median Base Salary ($) by Career Level

P3 Career Level Year-Over-Year

Market Increase

Majority of participating organizations are for profit organizations

66%

34%

Not-For-Profit

For Profit

50,000

66,200

83,500 96,000

P1 P2 P3 P4 66 68 70 72 74 76 78

HRGeneralist

Recruitment

Median Base Salary

2013

2014

2015

2016

Page 38: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Base salary progression across all levels

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 38

Accounting - AFB (total sample)

Benchmark Career Level Median Base Salary

General

Accounting

Management

M1 - Superv 67,400

M2 - Manager 95,500

M3 - Sr. Mgr 120,000

Benchmark Career Level Median Base Salary

Accountant

P1 - Entry 46,900

P2 - Intermed 56,100

P3 - Career 69,000

P4 - Specialist 79,800

Sample

Benchmark Title Career Level

Median Base Salary $

Accounting

Accounting Clerk

U1 - Entry 35,800

U2 - Intermed 40,400

U3 - Senior 45,600

U4 - Lead 50,800

Page 39: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 CSR Support Surveys

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 39

Geographies

(Office & Business Support)

Support Quick Facts

Office & Business Support Technical Support & Prod

• 247,667 employees

• 531 organizations

• 73 industry

classifications

• 312 geographic areas

• 94 job functions

• 221,727 employees

• 512 organizations

• 73 industry

classifications

• 313 geographic areas

• 94 job functions

Administrative Support

Median Base Salary ($) by Career Level

Business Support (U) Career Band

Incumbent Distribution by Career Level

Majority of participating organizations are in the North Central followed by the

Southeast

15%

22%

38%

16%

9%

Northeast

Southeast

North Central

South Central

West Coast

78,061

111,175

45,722

12,70910,000

30,000

50,000

70,000

90,000

110,000

U1 U2 U3 U4

33,100 40,800

51,500

61,900

U1 U2 U3 U4

Page 40: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

101%

98%

101%

99%

108%

80%

85%

90%

95%

100%

105%

110%

New York-Newark

Atlanta-SandySprings

Detroit-Warren Houston-SugarLand

Los Angeles-Long Beach

Base Salary Differential

2016 CSR General Industry Compensation Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 40

Geographic differentials (Accounting)

103%

99% 99%

101%

105%

80%

85%

90%

95%

100%

105%

110%

Northeast Southeast NorthCentral

SouthCentral

WestCoast

Base Salary DifferentialsBy Region By Metropolitan Area

Page 41: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 41

Understanding CompSource

2016 CSR General Industry Surveys

Page 42: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Key functionalities of CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 42

Navigating CompSource

Quick Tips for Busy Users

• Accessing the Results

• Browse for Your Survey

• Access videos & Users Guides on Help

• Export & Download Files in Excel or PDF

• Report Sections for survey overview & supplemental data

• Compensation Tables for a quick view of the market data

Page 43: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Navigating CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 43

How to access the results

Page 44: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 44

How to access the results

Page 45: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Navigating CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 45

Report section

Page 46: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Navigating CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 46

Compensation tables

Page 47: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Navigating CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 47

Compensation tables

Page 48: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Navigating CompSource

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 48

Export and download

Page 49: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 49

Wrap up

Page 50: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

HR Software: overview

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 50

Talent Analytics

Software

Workforce dashboards

Workforce analytics

Custom dashboard

design and delivery

Workforce planning

and scenario modeling

Predictive modeling

Talent Assessment

Software

Personality assessments

Aptitude assessments

Behavioral strength

assessments

Talent management

Graduate solutions

Branded experience,

mobile access

Talent Management

Software

Compensation planning

Performance management

Career management

Succession planning

Learning

Compensation Software

Job leveling

Global survey data library

Market analysis

Compensation program

design

Analytics and modeling

Dashboard statistics and

configurable reporting

Total Rewards Statements

Statements

Data Services

Compensation, HR policies

and benefits, design

practices surveys and

publications for 120

countries

Custom client analysis and

studies

Flexible reporting and

analytics delivered online

Employee Engagement Software

Fully integrated, pre-populated action plans

Automated free-text analysis

Automatic issue prioritization by group

Optimized for time series (pulse survey)

results

Multiple reporting hierarchies and data

sources

HR Portal Software

Personalized, media-rich experience

Manager and HR community information

Integrated partner dashboards

Client-managed content

HR case management

Total Rewards Statements

Learn more about Willis Towers Watson HR Software

Page 51: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Willis Towers Watson Compensation Software

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 51

Provides an end-to-end solution for job leveling, compensation data management,

competitive market analysis, program design, analytics and reporting

Willis Towers Watson

Compensation Software is a

multi-faceted solution that

streamlines time-consuming,

tactical work and delivers insights

that elevate and reinforce HR as

a key, strategic business partner

Features and Functionalities include:

Job Leveling (Global Grading System) - Determine the relative value of jobs in an

organization through a rigorous, globally applicable, culturally neutral evaluation process.

Survey Cloud - Immediate access to client compensation surveys. Access to all surveys

purchased by client from any provider.

Market Pricing - Use compensation survey library to market price jobs consistently and

efficiently. Robust survey search capabilities help find the right matches quickly.

Salary Structures - Leverage job leveling and market pricing results to develop and maintain

salary structures that are externally competitive and internally equitable.

Cost Analysis - “Bring to target” analyses and merit matrix wizards simplify cost impact

analysis for proposed compensation program designs and modeling of key compensation

actions (e.g., market adjustment for critical skill high-performers).

Reporting and Insights - Dashboards, data visualizations, flexible reporting bring data to life.

Guided Tours - Interactive guided tours help new and experienced users get most value in

shortest amount of time.

Upcoming integration

with WTW surveys

Page 52: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

2016 CSR General Industry Compensation Survey prices

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 52

Survey Participant Rate Nonparticipant Rate

2016 CSR General Industry Reports Package — U.S. $4,500 $10,500

Five Job-Level Reports (price per report)

• Office and Business Support

• Technical Support and Production

• Professional (Technical and Operations)

• Professional (Administrative and Sales)

• Supervisory and Middle Management

$890 $1,890

Eight Job-Function Reports (price per report)

• Accounting & Finance

• Call Center & Customer Service

• Engineering, Design & Tech Specialty

• Human Resources

• Information Technology

• Logistics and Supply Chain Management

• Marketing and Communications

• Sales Compensation

$890 $1,890

Top Management Report $1,290 $2,290

Comp Calculator Participant Rate Nonparticipant Rate

Top Management Comp Calculator $890 $1,890

Supervisory and Middle Management Comp Calculator $890 $1,890

Page 53: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Additional survey offerings

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 53

Surveys

Participation required

For local national employees of multinational companies:

LTI grant values by salary range for 60 countries for employees outside the

home country

Plan design modifications for employees outside the home country

Participation not required

• Actual and projected salary budget increases segmented by geography,

industry, size, employee level

• Canada, U.S., and global reports available

Participation not required

• Actual and projected salary budget increases segmented by geography,

industry, size, employee level

• Canada, U.S., and global reports available

Participation not required

• Global 50 Pay practices for 50+ countries. Country-specific information on economic and

reward environment, statutory benefits, and salary structure

• Global Starting Salaries Starting salaries of graduates by education level and function. In

the United States broken down by State/Region/ Metropolitan areas

• Global Geographic Salary Differential -Base salary differentials by region relative to the

national average. Differentials for six employee categories.

Compensation Policies

and Practices

International General Industry

Long-Term Incentive Policies and

Practices Survey Report

Salary Budget Surveys

Global Publications

Results include

Page 54: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

What you should remember from today

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 54

Access Your Results

OnlineCentral online results through

CompSource

More Function reports coming soon!

(https://compsource.towerswatson.com/)

CSR Reports PackageTop-to-bottom coverage of

nearly every position in your

organization. Participate in

and order all six surveys for

best value.

Talent and Reward

TrendsAs organizations continue to

strive to optimize their total rewards

portfolio, the importance of robust

market data is more important

than ever before

Feedback MattersEvery suggestion is extensively

reviewed and considered.

Please don’t hesitate to provide

us with your feedback

Feedback matters

Every suggestion is extensively

reviewed and considered.

Please don’t hesitate to provide

us with your feedback.

Key points

Talent and rewards trendsAs organizations continue to strive to

optimize their total rewards portfolio,

the importance of robust market data is

more important than ever before

Access your results

online

Central online results through

CompSource

More function reports coming soon!

(https://compsource.towerswatson.com)

CSR Reports Package

Top-to-bottom coverage of nearly

every position in your organization.

Participate in and order all six

surveys for best value.

Page 55: 2016 U.S. CSR General Industry Compensation Survey Results ... · PDF file2016 U.S. CSR General Industry Compensation Survey Results and ... • 2016 CSR General Industry Survey

Contact us

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 55

Willis Towers Watson Data Services Client Care Center

44 South Broadway, 13th Floor

White Plains, NY 10601-4411

T +1 800 645 5771

F +1 914 289 3201

[email protected]

twdataservices.com

Willis Towers Watson Compensation Consultant

For questions about talent and rewards trends, contact:

Michael Patrick

T +404.365.1843

[email protected]