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CAMBODIA HR COFFEE SESSION 2014ADAPTING TO TALENT DYNAMICS -PREPARING FOR THE FUTURE8 AUGUST 2014
Kulapalee TobingPrincipal ConsultantSingapore, Myanmar & Cambodia Business Leader
Samuel TeoConsultantSingapore, Myanmar & Cambodia
Cambodia
MERCER 1
Introduction
Where will the World be in 2020?
About Mercer
Macro MechanismsGlobal | Asia | Cambodia
HR Trends
Salary Increase | Cash Components | Variable BonusBenefits | Hot Jobs | Attrition Rate
Mercer Survey Coverage & Methodology
Mercer Survey Report Output
211 August 2014
About Mercer
MERCER 33
A global leader in human resource consulting and related services:
$3.8 billion in revenue
65-year history
4 business segments
Offices in more than 40 countries
20,000+ colleagues
Mercer
WHO WE ARE
MERCER 44
We help clients around the world advance the health, wealth and performance oftheir most vital asset – their people.
27,000+ Mercer clients
9 million+ benefit plan participants
110 million+ employees of Mercer clients
Mercer
HOW WE MAKE A DIFFERENCE
MERCER 555
The Mercer Advantage
BUSINESS SEGMENTS
ADDITIONAL BUSINESSESMergers & Acquisitions
Outsourcing
Benefits designPlan management and insurance brokerage
Specialty benefits consultingInternational consulting
Individual insurance
Defined benefit risk managementPlan design
Plan management and administrationDefined contribution consulting
Research and toolsAdvice
Solutions
Surveys and productsWorkforce communication
and change
Human capital
MERCER 66
The Mercer Advantage
BREADTH OF SERVICES – TALENT
Technology & Data Solutions
CEO and board effectiveness
Leadership development andassessment
Organization performance
HR strategy
Talent management
HR effectiveness
‘Workforce analyticsand planning
Diversity and inclusion
Executive remuneration:
Workforce rewards
Benchmarking, paystructures, policies,
regulatory and governanceguidance
Pay for performance
Data and research-basedcompetitive benchmarks
and trends
Global mobility strategy
Program effectiveness
Policy review
Data and research-basedcompetitive benchmarks
and trends
Change communications
Employee engagement
Communication strategy
Web and mobilecommunications
Leadership andOrganizationPerformance
Rewards Mobility Communication
MERCER 7
Understanding Mercer’s BusinessOur Service Offering as a Total HR Information Provider
1.Compensation BenchmarkingTotal Remuneration SurveyExecutive Remuneration SurveyCustomised/Sponsored SurveysMarket Value Services
2. BenefitsBenefits Practices Survey
4. Employee Mobility ServicesCOL (Cost-of-Living) reportQOL (Quality-of-Living) reportShort-term Assignment AllowanceTableSpendable Income TableBusiness Travel Costs ReportEducation Cost TableExpatriate Accommodation CostsTableExpatriate calculations
3. MembershipAsia Monitor Membership ProgramEmployee Mobility MembershipProgram
5. PublicationsHR AtlasGlobal Pay SummaryWorldwide Benefits and EmploymentGuidelinesInternational Assignment ReportInternational Geographic SalaryDifferentialsInternational Car Policy Report
MERCER 8
A unique Asia Pacific footprintThe regional market leader
Is the only provider with local on-ground presence in almost everycountry
Dedicated survey unit in every location
Over 8,000 participating companiesregion-wide
Number 1 provider in most countriesin the region
Has a regional team of informationand consulting specialists drivingquality, consistency, and accuracy insurvey process, methodology, outputand technology
MAINLAND CHINABeijingDalian
GuangzhouNanjing
ShanghaiShenzhen
AUSTRALIAAdelaideBrisbane
Glen WaverleyMelbourneParramatta
PerthSydney
NEW ZEALANDAuckland
Wellington
INDIABangalore
BangladeshChennaiKolkattaMumbai
New DelhiPune
PakistanSri Lanka
THAILANDBangkok
MALAYSIAKuala Lumpur
INDONESIAJarkarta
HONG KONG
TAIWANTaipei
JAPANTokyo
SOUTH KOREASeoul
PHILIPPINESManila
SINGAPORE
VIETNAMHo Chih Min
Hanoi
MYANMARYangon
CAMBODIAPhnom Penh
9
Macro MechanismsGlobal | Regional | Cambodia
MERCER10
Global Outlook
Legacy of the crisis• Concerns over sustainable recovery• Jobless Rates
Growth Slowdown• According to IMF, mostly external reasons:
• Subdued export demand• Reform, not stimulus• Controlling capital flows• Raise productivity = domestic savings
MERCER11
Asia To Remain Global EconomicGrowth Leader• 5.3% growth for 2014• Strong domestic demand
Asia’s Expanding Middle Class• By 2020,
• 54% of middle class• 43.2% of economic weight
Asia Outlook
MERCER 12
ASEAN Labour News
Malaysia’s government committed to moderniselabour laws-New Straits Times, 20 Apr 2014
Vietnam youth unemployment on the rise- International Labour Organisation, 02 July 2014
Cambodia labor strife derails efforts to lureforeign direct investment- Khmer Times, 10 July 2014
Indonesia employers seek to cap wage gains, raising riskof labour disputes- Malay Mail Online, 4 Jun 2014
Thailand economy fears triggered by Cambodia workerexodus- AFP, 18 June 2014
MERCER
Global GDP Outlook
13Source: IMA Q4 2013 Forecast
MERCER
ASEAN GDP & Inflation Forecasts
14
Source: IMA Asia - Asia Forecast 2014 Q2* Source: World Bank East Asia Pacific
Economic Update: April 2014
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
KH* ID MM* MY PH SG TH VN
GDP 2013 GDP 2014 GDP 2015 Inflation 2013 Inflation 2014 Inflation 2015
MERCER
Growing CambodiaKey Industries
15
Garment
o Accounts for over 70% of exportso Employs over 600,000 people
Fast-Moving Consumer Goods
o Branded FMCG market to doublein value to USD 1 billion over nextseven years
Hospitality & Tourism
o 4.2 million tourist arrivals in 2013o Tourism receipts account for 15%
of GDPo Airport Infrastructure development
Agriculture
o Rice product – 10% contribution toGDP
o Increase focus on sustainableagriculture
MERCER 16
Hope and Balance of Cambodia
Top 5 Countries (% of Total Imports)
China 24.6%
Thailand 22.3%
Vietnam 16.7%
South Korea 5.5%
Hong Kong 5.4%
Top 5 Countries (% of Total Exports)
USA 27.7%
Hong Kong 14.4%
UK 7.9%
Germany 7.9%
Canada 5.2%
Source: The Observatory of Economic Complexity – MIT (2012)
MERCER 17Source: Mercer Cost of Living Calculator,
March 2013 & March 2014
Cost of livingASEAN Capital Cities
2014 (M/M)
Singapore 157
Bangkok 107
Yangon 103
Kuala Lumpur 101
Phnom Penh 100
Manila 97
Hanoi 97
Jakarta 96*Phnom Penh is used as the base city
MERCER 18Source: Mercer Quality of Living Calculator, Sept 2012 and Sept 2013
Quality of livingASEAN cities
*Phnom Penh is used as the base city
MERCER 19
Labour skill issuesPolitical instability
Rule of the lawExternal dependence
Young workforcePrecious resources
Unsaturated marketAttractive tax incentives
Open economyCapital Inflow
Overview of CambodiaThe Bs
Barriers
Bridges
20
HR TrendsSalary Increase | Cash ComponentsVariable Bonus | Benefits | Hot Jobs | Attrition Rate
MERCER 21
What is “Inside Employees’ Minds”?. . . Uncertainty on pay and career advancement
Base Pay
Job Security
Health Insurance
Career DevelopmentConcerns
Bonus or otherIncentives
Retirement Savings orPension Plan
Training Needs
Employability
Source: Mercer’s What’s Working Survey, 2011, 17 country Conjoint Analysis.
MERCER 22
Most important value proposition elementsBase pay ranks top 2 in all markets
How aboutCambodia?
“I can’t liveon bread
alone”
MERCER 23
Rewards in Asia – Focus on age, seniority & level
Westernized inthinking, buttempered by
Asian needs forhierarchy
Compensationstructures similar
to the U.S.Employee owns
their career
Competition fortalent
Performanceorientation
Best practiceVariable pay
critical tomanage
performance &cost
Becomingperformance
drivenQuick pay and
careerprogression
Vertically-mindedEmployee owns
their career
China / VietnamAge, service and
level drivestructure
Levels strictlydefined
Vertically-mindedMany grades
Company owns thecareer
Japan/Korea IndiaSingapore
MERCER
Human Resources TrendsCambodia vis-à-vis ASEAN
SalaryIncrement
BenefitsHot Jobs &
IndustryPremiums
CashComponents
VariableBonus
Attrition Rate
24
MERCER 25
2014 Cambodia TRS Participants List
Organization Name1 Adidas Sourcing Ltd (Representative Office in Vietnam)2 APL Cambodia Co., Ltd3 Bayer Thai Co., Ltd (Cambodia Branch)4 British American Tobacco (Cambodia) Ltd5 Cambodia Beverage Company Ltd6 Cambodia Brewery Ltd7 Chevron (Cambodia) Ltd8 DHL Express Cambodia Ltd9 DKSH (Cambodia) Ltd10 Du Pont (Cambodia) Co., Ltd11 General Electric (GE)12 GlaxoSmithKline (Cambodia) Co., Ltd13 Hoffmann-La Roche Ltd (Cambodia)14 Huotraco International Ltd15 Jotun (Cambodia) Ltd16 JT International Tobacco Services (Singapore) Pte Ltd,
Representative Office17 Manulife (Cambodia) PLC18 Moët Hennessy Asia Pte Ltd Cambodia Rep. Office19 Nestlé (Thai) Ltd20 Robert Bosch (Cambodia) Co., Ltd21 Sanofi Cambodia Co., Ltd22 Schneider Electric Cambodia23 Unilever (Cambodia) Ltd
MERCER
Participants Profile
26
Total Number ofCompanies: 23
Source: Mercer 2014 TRS - Cambodia
MERCER
Participants Profile
27Source: Mercer 2014 TRS - Cambodia
MERCER
Benchmarking Pay Policy - Target Pay PositionCambodia
28Source: Mercer 2014 TRS - Cambodia
MERCER
Factors that affect Salary IncrementsCambodia
29Source: Mercer 2014 TRS - Cambodia
MERCER 30
Salary Increase RangeCambodia
2013 2014 2015
25th %ile 5.0% 6.0% 7.3%
Average 7.2% 8.1% 8.8%
75th %ile 9.5% 10.0% 10.0%
Source: Mercer 2014 TRS - Cambodia
MERCER 31
Average Salary Increases by Career LevelCambodia
2013 2014 2015
Overall 7.2% 8.1% 8.8%
Head of Organization 6.9% 6.9% 7.9%
Executives 6.8% 6.5% 9.3%
Management - Sales 6.7% 7.5% 8.3%
Management - Non-Sales 7.7% 6.9% 8.0%
Professional - Sales 9.7% 8.9% 9.0%
Professional - Non-Sales 7.1% 8.2% 8.7%
Para-Professional - White Collar 7.5% 8.4% 8.7%
Para-Professional - Blue Collar 7.3% 8.8% 8.5%
Source: Mercer 2014 TRS - Cambodia
MERCER
2015 Inflation
2013 7.2% 10.0% 10.0% 5.4% 6.4% 4.3% 5.8% 11.1%
2014 8.1% 9.5% 10.0% 5.5% 6.6% 4.3% 5.9% 11.1%
2015 8.8% 10.2% 5.8% 6.8% 4.4% 5.8% 11.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
KH ID MM MY PH SG TH VN
Average Salary Increases across ASEAN2013 - 2015
32
Source: Mercer 2013 & 2014 TRSAPAC Pulse Survey Singapore April 2014
2013 Inflation 2014 Inflation
MERCER
25%ile 6.0% 8.0% 8.0% 5.0% 6.0% 4.0% 5.0% 10.0%
Average 8.1% 9.5% 10.0% 5.5% 6.6% 4.3% 5.9% 11.1%
75%ile 10.0% 10.0% 12.0% 6.0% 7.5% 5.0% 6.0% 13.0%
33
Salary Increase RangeASEAN 2014
Percentages excludes salary freeze Source: Mercer 2013 TRSMercer 2014 TRS - Cambodia
75%ileAverage25%ile
MERCER
Cambodia Salary Review
34
Note: Organizations can indicate more than one time of review; therefore total may exceed 100%87% of the companies review once a year
Salary Review Calendar
19% 0% 22%
48% 0% 0%
4% 0% 6%
0% 5% 5%
Source: Mercer 2014 TRS - Cambodia
MERCER 35
Common Allowance (Annually)Cambodia
Allowances (USD)
Career Stream
Executive Management Professional Para-professional
Transportation 2,600 1,400 500 100
Phone 1,100 500 200 200
Housing 12,500 1,400 900 600
Meal 300 300 300 300
Source: Mercer 2014 TRS - Cambodia
• Other Common Allowances in the market include Skill Allowance, Shift Allowance, Job BasedAllowance, Children Education Allowance, Training Allowance
*Values above are rounded off to the nearest 100s.
MERCER 36
Common Cash ComponentsCambodia vis-à-vis ASEAN
Types of Cash Components KH ID MM MY PH SG TH VN
Transport Allowance
Phone Allowance
Shift Allowance
Meal Allowance
Variable Bonus
Percentage of Incumbents Provided with Cash Components by Countries (%)
>0% to 30%
>30% to 60%
>60% to 100%Source: Mercer 2014 TRS – Cambodia
Mercer 2013 TRS
MERCER 37
Variable Bonus RangeCambodia
2013 Performance (Actual)paid out in 2014
2014 Performance (Target)paid out in 2015
25th Percentile 8.9% 8.9%
Average 13.4% 14.1%
75th Percentile 17.7% 16.1%
Note: % provided is based on % of Annual Base Salary
Source: Mercer 2014 TRS - Cambodia
MERCER 38
Average Variable Bonus by Career LevelCambodia
2013 Performance(Actual)
paid out in 2014
2014 Performance(Target)
paid out in 2015
Overall 13.4% 14.1%
Head of Organization 19.6% 20.9%
Executives 20.3% 20.1%
Management - Sales 14.9% 14.9%
Management - Non-Sales 14.0% 13.9%
Professional - Sales 13.8% 12.6%
Professional - Non-Sales 10.4% 11.2%
Para-Professional - White Collar 13.0% 10.8%
Para-Professional - Blue Collar 18.9% 13.3%
Note: % provided is based on % of Annual Base Salary
MERCER
25%ile 8.9% 13.2% 11.0% 12.0% 10.4% 13.7% 12.9% 10.7%
Average 13.4% 20.3% 16.0% 18.0% 15.0% 18.0% 20.6% 15.9%
75%ile 17.7% 23.1% 20.0% 20.6% 19.7% 23.1% 23.1% 19.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
KH ID MM MY PH SG TH VN
Varia
ble
Bon
us
39
Variable Bonus RangeCambodia vis-à-vis ASEAN
Note: % of Annual Base Salary;Cambodia Variable Bonus is based on Actual Pay-out in 2014ASEAN Variable Bonus is based on Projected Pay-out in 2014 Source: Mercer 2013 TRS
Mercer 2014 TRS - Cambodia
2014
75%ileAverage25%ile
MERCER
Shifting Perspective on BenefitsEmerging Market Benefits
40
ben·e·fit (noun):Something that promotes or enhances well-being; an advantage
Typical Benefits in Emerging MarketsAnnual Leave
Sick LeaveFamily Leave (Maternity, Childcare, Parent-care)
Congratulation LeaveCompassionate Leave
Marriage LeaveMedical In-Patient
Medical Out-PatientLife and Personal Insurance
Accident InsurancePension Schemes
Allowances
MERCER 41
Benefits FocusDifferent markets, different needs
Emerging markets Established markets Future markets• Understand local issues
• Benchmark local/multinationalorganizational provisions
• Identify employee benefitsexpectation and local practices
• Review local regulation andcompliance requirements
• Identify gaps in statutoryprovision and accessibility andquality of provision
• Review current provisions
• Ensure provisions ‘fit’ to need
• Maximize market innovation
• Implement cost controlmechanisms
• Integrate delivery/vendors
• Educate/engage employees
• Understand potential trends
• Review local regulation andcompliance requirements
• Identify gaps in statutoryprovision and accessibility andquality of provision
MERCER 42
=
EnterWorkforce
Marriage(dual coverage)
Parenthood
Childrenleave home
Retirement
Start Family
20 25 30 35 40 45 50 55 60
CashVacation
Car Allowance -saleCareer - Training
Life & MedicalHouse
Career ProgressionWork/Life Balance
PensionMedical
Work/Life BalanceChildren’s College
Companies are innovating their benefitsDifferent benefit needs during different life stages
Why?
MERCER
Benefits – Market PracticeCambodia
43
Benefits Prevalence Market Practice
Leave
Annual Leave100% • Minimum 18 days
• 1 more additional day after every 3 years of service• Provided for all employees levels
Sick Leave/Hospitalization
leave
84% • 13 days of sick leave• 56 days of hospitalization leave• Provided for all employees levels
Maternity Leave100% • 90 days
• Provided for all employees levels
Congratulations& Condolences
CompassionateLeave
80% • 6 days of paid compassionate leave• Provided for all employees levels
CongratulationsLeave
40%• 7 days of paid personal leave• Provided for all employees levels
Marriage Leave
Car Benefits Car Benefits52%
• Typically, company –owned car is provided
• Commonly provided to Head of Organization,Executive – Sales and Management - Sales
Source: Mercer 2014 TRS – Cambodiahttp://www.cambodiainvestment.gov.kh/the-labor-law-of-cambodia_970313.htmlhttp://www.nssf.gov.kh/
http://www.prake.org/home/labour-law
MERCER 44
Benefits Prevalence Market PracticeLoans Loans 0% • Not provided
Health Benefits
Inpatient82% • 100% Reimbursement for all employee levels only
• Not common to cover dependents• Median coverage: USD4,000 per annum
Outpatient
91% • 100% Reimbursement for all employee levels only• Not common to cover dependents• Median coverage: USD400 per annum
Insurance
Life Insurance 14% • Provided to all employees levels• Median coverage: 20 months of basic salary
Accident Death &Dismemberment
(AD&D) Insurance
73% • Provided to all employees levels• Median coverage: USD10,000 or• Median coverage: 27 months of basic salary
Retirement Pension 22% • Provided to all employees levels• Defined contribution.
Source: Mercer 2014 TRS – Cambodiahttp://www.cambodiainvestment.gov.kh/the-labor-law-of-cambodia_970313.htmlhttp://www.nssf.gov.kh/
http://www.prake.org/home/labour-law
Benefits – Market PracticeCambodia
MERCER 45
Common BenefitsCambodia vis-à-vis ASEAN
* Statistics pertaining to each benefit scheme are a percentage of respondents
Prevalence of Organisations to provide additional Benefits Scheme by Countries (%)
Source: Mercer 2013 TRSMercer 2014 TRS - Cambodia
MERCER 46
Annual LeaveCambodia vis-à-vis ASEAN
No of years KH MM ID MY PH SG TH VN
1 18 12 12 15 15 15 10 15
5 19 13 14 18 15.5 18 13 15
10 21 16 15 20 18 21 15 17
20 23 16 18 21 20 21 17 19
Maximumentitlement 23 17 18 21 20 21 18 20
* Median annual leave entitlement is reported
Cambodia provides more annual leave than other ASEAN countries.
Source: Mercer 2013 TRSMercer 2014 TRS - Cambodia
According to statutory, Special Leave is deducted from Annual Leave.Is it a common practice among the companies here?
MERCER 47
Hiring Intentions in ASEANClose to half of employers are looking to add headcount
Source: Mercer 2013 TRSMercer 2014 TRS - Cambodia
MERCER 48
Premium IndustriesASEAN pay master - Chemical & High-Tech
Shared ServicesLife Sciences
Consumer Goods
MiningHigh TechChemical
Oil & GasConsumer Goods
Life Sciences
High Tech
ChemicalLife InsuranceLife Sciences
EnergyConsumer Goods
Chemical
Ranking based on Annual Base Salary Source: Mercer 2013 TRSMercer 2014 TRS - Cambodia
Consumer GoodsLife SciencesElectronics
High TechChemical
Life Sciences
MERCER
Functional Premiums & Hot JobsCambodia
49
Sales, Marketing and Sales & Marketing Functions are found to bedifficult to attract and retain.
Management
Job Functions Deviation
Finance 89%
Quality 64%
Marketing 55%
Sales & Marketing 31%
Sales -30%
Professionals
Job Functions Deviation
Repair &Maintenance 145%
Quality 97%
Sales & Marketing 96%
Marketing 44%
Sales -29%
MERCER 50
Cambodia Pay DifferentialsEmployee category
Source: Mercer 2014 TRS - Cambodia
76%
226%
244%
Cambodia Pay Differential
246%
223%
292%
ASEAN-6 Pay Differential
MERCER 51
2013 Average Attrition RateCambodia
Attr
ition
Rat
e
Source: Mercer 2014 TRS - Cambodia
MERCER 52Source: Mercer 2014 TRS, 2013 Market Pulse
2013 Average Attrition RateCambodia vis-à-vis ASEAN
Attr
ition
Rat
e
MERCER
Shift of views on loyaltyWhat’s Matters Most?
Engagement Benefits Retirement Pay
Career Company Job Life
53
MERCER
New WorkforceGen X through Z start to play bigger roles
Source: Mercer interviews with clients
Expect to change jobs tobuild their skills.
Use mobility.Want opportunities togrow/learn/innovate.
Enjoy social aspects ofwork.
Demand a meritocracy.Want recognition, feedback,
and flexibility.Set clear criteria for
success.Recognize value through
regular pay increases.
Less focused onhierarchy/seniority.Are independent.Are self-reliant.
Have patience foropportunities and
recognition.Want rewards to
match risks.Say, “Show me the
money.”
Are loyal.Build life-long careers.
Deal face to face.Understand hierarchy.Expect to earn higher
salaries over time.Focus on benefits.
Gen YGen X
Boomers
Gen Z
First generation bornwith complete
technology – true “digitalnatives”
Highly creative &collaborative
At ease with virtualcommunications
Used to speed andmultitasking
Style and expectationsof work will be
completely differentwhen this group join the
workforce
54
MERCER 55August 11, 2014
Focus on Total rewards instead of Total Remuneration
Base payGuaranteed “bonuses”Short term incentivesLong term incentivesFinancial allowancesFinancial recognition
programsDeferred compensation
RetirementSavings & other wealth
creation programsMedical/Dental/Vision/Prescription Drug, etc
Life insuranceShort & Long term
disabilityAccident coverage
Job-related perquisites
Compensation Benefits
Performancemanagement
Learning & developmentCareer opportunity &
pathingTuition reimbursementMobility opportunities
Time offWellness programs
Dependent careWorkplace flexibilityCommuter programsWorkplace facilities &
perquisitesExperiential rewards
Non-financial and statusrecognition
Development & Career Work Lifestyle
Total Remuneration
MERCER 56
Summary
• Talent attraction and retention through strategic compensation &benefits
• Trending towards a more innovative approach– It is not only about the right pay– More than just traditional benefits– Training & development and career advancement
56
Flexibility and choices– No one-size fits all
– Understanding employee’s needs– Implementation is crucial
57
Mercer’s Survey Coverage
MERCER 58
Survey Coverage
Types of Survey Description of Report
Compensation & Benefits
Survey - Myanmar
•Provides detailed compensation and benefits analysisacross industries.
•Allows you to obtain Executive and Non-Executive data ofall positions from Head of Organization, Function Head,Manager, Professional and Para-Professional from AllIndustries.
•Provides predominant benefit plans in detail andassociated quantitative statistics drawn from all participantsin the survey sample.
MERCER 59
Compensation & Benefits Survey
• Compensation & Benefits Survey
– Positions include:- Head of Organization- Head of Functions- Manager and Sr. Manager- Professional- Para-Professional
– All Industries Database
– Delivered via PDF or WIN report
MERCER 60
Positions Covered
• General Management
• Finance
• Information Technology
• Human Resources
• Administration
• Marketing
• Sales
• Customer Engineering
• Operations Production
• Operations Engineering
• Quality Assurance
• Call Centre
• Supply & Logistics
MERCER 61
Compensation Coverage
• Comp1: Base Salary– Base Salary x no. of months paid per annum
• Comp2: Annual Guaranteed Cash (Comp1 + Allowances)– Transport Allowance– Meal Allowance– Job-Based Allowance– Shift Allowance– Other Guaranteed Allowance
• Comp3: Annual Total Cash (Comp2 + Variable Cash)– Variable Bonus– Sales Incentive
MERCER 62
Compensation Policies Coverage
• Salary Increase Policy
• Salary Review policy
• Variable Bonus Policy
• Sales Incentives Policy
• Hot jobs
• Hiring Intention
• Fresh Graduate Starting Salaries
MERCER 63
Benefits Policies Coverage
• Medical Healthcare
• Leave
• Car Benefit
• Insurance
• Loans
• Retirement
Mercer Survey Approach and Methodology
MERCER 65
Mercer Survey Process4 main steps for participants
PositionEvaluation
(Mercer to provide thejob size)
Job Matching Submitdata collection kit
Data checking& processing
Access thesurvey result
Delivery of Survey Result
Position Evaluation Data Input & Submission Data ProcessingData Collection KitStep 1 Step 2 Step 3 Step 4
PDF report or MercerWIN (on-line)
MERCER 6666
Survey Process (1)
Job Matching:– Benchmark position descriptions and specifications provided to enable
accurate matching for both generic and specific positions
Position Sizing:– International Position Evaluation (eIPE) system will generate standard
evaluation based on point system (Position Class)– Mercer to provide the position evaluation results based on standard
evaluation– Companies to review and fine tune the evaluations if necessary
MERCER 67
Job MatchingSample Exhibit
MERCER 68
Job Matching Table (Sample)
No. Mercer UniversalPosition Code (MUPC)
Mercer Position Title Your Actual Title Remarks
1 120.100.220 Human Resource Manager HR Manager
2 120.252.340 SR. HR/Admin Specialist HR Executive
3 210.100.130 Head of Finance Head of Finance
4 420.030.120 Head of Sales (Tier 3) Head of Sales
5
6
7
8
9
10
11
MERCER 69
Innovation
Complexity
Communication
Frame
Knowledge
Teams
Breadth
Contribution
Impact
Organization
Impact
Innovation
Communication
Knowledge
Position SizingInternational Position Evaluation System™
Mercer InternationalPosition Evaluation(IPE) System
The IPE has four factors,which are sub-divided intoten dimensions, toprovide a commonbaseline for evaluation ofthe job size of anybenchmark position in anorganization
MERCER 70
Position SizingWhy use the International Position Evaluation System™
Accurate comparison among different companies: those who usedifferent titles, operate in different industry segments, etc.
To compare positions in large companies with positions in smallcompanies as well as across functions
To make accurate comparisons between positions, as job titles alonecan be misleading. For example, the title of “HR Manager” in one company may describea position, which has very different responsibilities in another company
Covers all types of positions, no matter how unique
Market comparison at individual and organisation levels is possible
or
HR Manager HR Mgr PC 54HR Mgr PC 55HR Mgr PC 56
MERCER 7171
Survey Process (2)
Data Collection and Submission
– collect data for all incumbents to provide a representative marketanalysis
– Comp 1 to Comp 3 covering all aspects of compensation– use spreadsheet templates for convenience of data contribution
Data to be presented are as follows:
– Average: Minimum 3 datapoints from 3 companies– Median: Minimum 4 datapoints from 3 companies– 25P & 75P : Minimum 5 datapoints from 3 companies
Cambodia Compensation & Benefit Survey Output
MERCER 73
Survey OutputContent
Survey Overview and Executive Summary - includes information on GDP,Inflation, Unemployment
Policy and Practices ReportCompensation – includes salary increase indicators, variable bonusBenefit – includes benefit items: clinical and inpatient care, life insurance,company car provision, etc
Actual Market Data - statistical ranges of remuneration items by benchmarkpositions
Regressed Market Trend Lines – regressed market data points plotted on graph(Depending on data sufficiency)
Regressed Company and Market Trend Lines (Your Position versus Market)– regressed company data points plotted against market trend lines (Depending ondata sufficiency)
MERCER 74
Survey Overview (Sample)
Report covers:
• Participant Profile (e.g. revenue range,headcount)
• Economic Developments and Trends(e.g. GDP,inflation)
• Labour Developments and Trends (e.g.unemployment)
MERCER 75
Policy & Practices Report
Benefits Policy
• Retirement
• Insurance
• Healthcare
• Loans
• Car Benefits
Compensation Policy
• Salary Increase
• Hiring Intention / Voluntary Turnover
Short-term Incentives
• Variable Bonus
• Sales Incentive
MERCER 76
Actual Market DataJob Match (Sample)
Com
pone
nts
ofS
alar
yThe Position Family Reportreflects the actual median, 25th &75th Percentile compensation forall benchmark positions based on‘Job Match’
Used as a tool to determine thecompetitiveness of a positionagainst similar positions
This report provides the break-upof the salary components paid inthe market and hence can be usedfor compensation structuring
%of
data
poin
tsre
ceiv
ing
spec
ific
com
pens
atio
nco
mpo
nent
sin
the
mar
ket
MERCER 77
Actual Market DataJob Match & Job Size (Sample)
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The Position Family Reportreflects the actual median, 25th &75th Percentile compensation forall benchmark positions based onJob Match’ & ‘Job Match & JobSize’
Used as a tool to determine thecompetitiveness of a positionagainst similar positions
This report provides the break-upof the salary components paid inthe market and hence can be usedfor compensation structuring
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MERCER 78
Policy and Practices Report (Sample)
• Report covers:
• Company Remuneration Policy (e.g. salary increase%, staff turnover, fresh graduate starting salary)
• Short-term Incentives (e.g. variable bonus, salesincentive)
• Benefits (e.g. outpatient/inpatient, insurance coverage,car allowance)
• Cash Compensation Mix
MERCER 79
SAMPLE ONLYPolicy and Practices Report (Sample)Benefits
MERCER 80
Regressed Market Trend Lines(Depending on data sufficiency)
These tables are based onexponential regression analysiscalculated using the survey data.The reports, provide the co -ordinates of the regressed median &percentiles as well as actual meansand medians.
Enables a company to determinethe range of compensation in themarket on basis of actual datapoints plotted on the graph
MERCER 81
Regressed Company & Market Trend Lines(Depending on data sufficiency)
Company Trendline
Market 25th
Market Median
Market 75thUses of this Report :
Depicts the positioning of thecompany in the marketAssists the company in determiningand setting overall company policybased on desired versus actualposition in the marketAssists the company to take a call toimprove, retain or innovate itspositioning in the ‘defined’ market
Assists the company to establish a‘Reference Salary’ and a‘Compensation Range’ for each gradeAssists the company in identifyinginternal anomalies (if any)
MERCER 82
Incumbent Deviation Report(Depending on data sufficiency)
The table contains a list of all positions, sorted by Job Family, reported for yourparticular company. In this report, you will be able to see the positioning ofyour incumbent relative to the sample.
Allows the company to analyse the salary levels of individual incumbentsversus similar positions in the market
Enables the company to determine its ‘Ranking’ in the market with respect
to specific positions
MERCER
Survey Timeline for Cambodia TRS 2015
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DateSurvey Kickoff 1 March 2015Submission Deadline 31 May 2015Report Delivery 15 July 2015
MERCER
Contact Us
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Name Email NumberKulapalee Tobing [email protected] +65 6398 2637Samuel Teo [email protected] +65 6398 2930
Mercer (Singapore) Pte Ltd (1978 02499E)
