Professional and Support Compensation Survey and Support Compensation Survey Results and Trends...

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2016 U.S. CDB General Industry Middle Management, Professional and Support Compensation Survey Results and Trends Webinar © 2016 Willis Towers Watson. All rights reserved. September 15, 2016 Willis Towers Watson Data Services Rachel Wiese, Katie Lind, Lianne Cancellieri, Hatti Johansson and Christina Ho 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: 15357894

Transcript of Professional and Support Compensation Survey and Support Compensation Survey Results and Trends...

Page 1: Professional and Support Compensation Survey and Support Compensation Survey Results and Trends Webinar ... Employers are mostly tracking the market in a “business as usual”

2016 U.S. CDB General Industry Middle Management,

Professional and Support Compensation Survey

Results and Trends Webinar

© 2016 Willis Towers Watson. All rights reserved.

September 15, 2016

Willis Towers Watson Data Services

Rachel Wiese, Katie Lind, Lianne Cancellieri, Hatti Johansson and Christina Ho

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: 15357894

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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 introduction

• Top drivers of employee attraction and retention

• Pay for performance

• 2016 survey results

• Understanding Comp Online

• Wrap up and Q&A

Christina HoRachel Wiese Lianne Cancellieri

Presenters

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: 15357894

Katie Lind Hatti Johansson

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Willis Towers Watson Data Services

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• 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

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

• In addition, present results from Talent Management and Rewards and Global Workforce Studies

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Willis Towers Watson CDB General Industry Surveys

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At a glance

• Base salary

• Actual and target bonus

• Total cash compensation

• Long-term incentive values by job and salary level;

plan design by award type; grant guidelines

and process

• Total direct compensation

• Data effective date: March 1

• Results available to participants only

• Results available on Comp OnlineTM

• Discounts available for participants in both surveys

Executive Compensation Survey

• More than 1,000 participants by year-end (over 550 in

Published Report)

• More than 46 Functions common to all industries

• Close to 400 Disciplines, more than 5,000

Discipline/Level combinations

• Career Level job matching design

Middle Management, Professional and Support (MMPS)

Compensation Survey

CDB is the most comprehensive executive compensation survey in the country with over 1,000 participants and the most

extensive database of long-term incentive company policies, practices and award values

• More than 1,300 participants by year-end (over 480 in Published

Report)

• NEW! Advanced Plus offering allows participants to blend

disclosed (proxy) data of select S&P 500/Fortune 1000

companies with survey data

• More than 40 Functions common to all industries

• More than 160 jobs

• Benchmark job matching design

Data Elements Key Dates

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Willis Towers Watson industry expertise

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Industry-specific reports available to participants only

U.S. CDB General Industry reports available to participants

only

Dedicated functions/disciplines

Dedicated report formats

Local industry experts

8 Global Industry Surveys

Additional Industry surveys in selected countries include:

Automotive

Banking

Construction

Fast Moving Consumer Goods

Health Care

Insurance

Luxury Goods

Manufacturing, Distribution

and Services

Professional Services

Telecommunications

Media

Pharmaceutical and

Health SciencesEnergy Services

Long-term IncentiveFinancial Services

RetailHigh Tech

General Industry — All sectors

Participation is required

in CDB General Industry

and industry surveys

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Upcoming webinars

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Webinar Date

2016 General Industry Compensation Survey - Canada Wednesday, September 21

2016 Financial Services Compensation Survey - U.S. Thursday, September 22

2016 CDB Energy Services Compensation Survey - U.S. Thursday, October 6

2016 CDB High Tech Compensation Survey - U.S. Thursday, October 13

2016 CDB Retail/Wholesale Compensation Survey - U.S. Tuesday, October 18

2016 CDB Pharmaceutical & Health Sciences Compensation Survey - U.S. Tuesday, October 25

2016 CDB Media Compensation Survey - U.S. Thursday, October 27

2016 Long-Term Incentives, Policies and Practices Survey - Global Tuesday, November 1

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2016 CDB General Industry Middle Management and Support (MMPS) Survey

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of participants overlap in

participation from 2015 to

2016

– results delivered

Sept

1,357,480incumbents

1,200 3.0%increase in the

number of

participants

participants by year end

participants in 2016

Published Survey

581 72%

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2016 CDB General Industry MMPS survey

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Participant overview

Global Corporate Revenue Total FTE Employees

Less than $1B12%

$1B - $3B23%

$3B-$6B19%

$6B-$10B11%

$10B-$20B14%

Greater than $20B

21%

Less than 1,0007%

1,000 to 5,00021%

5,000 to 20,00030%

Greater than

20,00042%

Source: Towers Watson 2016 U.S. CDB General Industry Middle Management, Professional and Support Survey

Median size of database $4.8 billion

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Top drivers of employee attraction and retention

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The challenge: The talent landscape is more competitive than ever

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State of Attraction & Retention

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 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.

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Talent mobility is still increasing

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State of Attraction & Retention

48% said hiring

activity has increased compared to last year.

35% indicated that

turnover is rising.

Source: Talent Management & Rewards and Global Workforce Studies

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Pressures mount particularly for key talent like critical-skill employees

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State of Attraction & Retention

59% IN EMERGING

MARKETS AND

37% IN MATURE

MARKETSare reporting difficulty keeping critical-skill employees.

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

Source: Talent Management & Rewards and Global Workforce Studies

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The inability to get and keep top-performers heightens the issue

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State of Attraction & Retention

65% IN EMERGING

MARKETS AND

44% IN MATURE

MARKETSare reporting difficulty keepingtop-performing employees.

76%of employersreported having problems attracting top-performing employees.

Source: Talent Management & Rewards and Global Workforce Studies

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

understand what employees and top-performers value

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State of Attraction & Retention

Employee view Employer view

1 Base pay/salary Career advancement opportunities

2 Job security Base pay/salary

3 Career advancement opportunities Organization’s reputation

4 Challenging work Challenging work

5 Opportunities to learn new skills Job security

6 Organization’s reputationOrganization's mission, vision and values

7 Health care and wellness benefits Opportunities to learn new skills

Source: Talent Management & Rewards and Global Workforce Studies

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Employee View Employer View

1 Base pay/salary Career advancement opportunities

2 Career advancement opportunities Base pay/salary

3 Physical work environment Relationship with supervisor/manager

4 Job security Ability to manage work-related stress

5 Ability to manage work-related stress Opportunities to learn new skills

6 Relationship with supervisor/manager Flexible work arrangements

7 Trust/Confidence in senior leadership Short-term incentives (e.g., annual bonus)

Retaining top-performing employees requires a balanced total

rewards portfolio

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State of Attraction & Retention

Source: Talent Management & Rewards and Global Workforce Studies

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Pay for performance

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

model for merit budgets

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Pay-For-Performance Outcomes

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

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Total salary increases

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Pay-For-Performance Outcomes

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

2015 salary

increases

2016 salary

increases

2017 salary

increases

Avg %

granted

No. of

responses

Avg %

budgeted

No. of

responses

Avg %

projected

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

Where companies granted increases

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

beyond short-term individual performance towards a more holistic

approach…

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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

Pay-For-Performance Outcomes

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Salary increases related to performance ratings

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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.

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In annual incentive plans, however, individual performance remains

the most prevalent factor used to differentiate payouts…

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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

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

for-performance orientation

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Pay-For-Performance Outcomes

Source: Talent Management & Rewards and Global Workforce Studies

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

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

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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

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

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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

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Survey methodology and results

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Willis Towers Watson job-matching methodology

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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

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

Page 27: Professional and Support Compensation Survey and Support Compensation Survey Results and Trends Webinar ... Employers are mostly tracking the market in a “business as usual”

Revenue Breakdown Quick Facts

• 260,823 employees

• 563 organizations

• 39 industry groups

• 165 Metropolitan Areas

• 46 functions/families

Management Median Base Salary ($)

by Career Level

Management Incumbent Distribution

by Career Level

2016 CDB General Industry MMPS

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Supervisory and Middle Management

Majority of participating organizations are $1 Billion to $3 Billion

12%

23%

19%

13%

12%

21%Greater than $20B

$10B-$20B

$6B-$10B

$3B-$6B

$1B-$3B

Less than $1B

80,383 107,476

140,268

170,235

202,537

M1 M2 M3 M4 M5

23%

39%

26%

12%

1%0%

60%

M1 M2 M3 M4 M5

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Top Four Industries Quick Facts

• 599,233 employees

• 570 organizations

• 39 industry groups

• 175 Metropolitan Areas

• 36 functions/families

Professional Median Base Salary ($)

by Career Level

Professional Incumbent Distribution

by Career Level

2016 CDB General Industry MMPS

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Professional

5%

18%

28%

35% Services

Durable GoodsManufacturing

Non Durable GoodsManufacturing

Health Care

Majority of participating organizations are in the Services sector

56,541 69,809

87,763 109,211

139,628

169,833

P1 P2 P3 P4 P5 P6

10%

24%

33%

25%

8%

1%0%

10%

20%

30%

40%

P1 P2 P3 P4 P5 P6

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Geographic Regions Quick Facts

• 178,158 employees

• 505 organizations

• 39 industry groups

• 180 Metropolitan Areas

• 20 functions/families

Business Support Median Base Salary ($)

by Career Level

Business Support Incumbent Distribution

by Career Level

2016 CDB General Industry MMPS

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Business Support

21%

20%

21%

21%

17%

West Coast

Southeast

South Central

Northeast

North Central

26%

36%

25%

13%

0%

10%

20%

30%

40%

U1 U2 U3 U4

36,062 42,592

50,800 58,446

U1 U2 U3 U4

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Management Compensation

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Total direct compensation by global corporate revenue

Total Direct Compensation

by Organization Revenue (Accounting-M4)

Target Bonus 2015 vs. 2016

Actual Bonus 2015 vs. 2016

912

18

23

29

1013

19

25

31

0

10

20

30

40

50

M1 M2 M3 M4 M5

2015 Actual Bonus %

2016 Actual Bonus %

165

215.2

230.7 235.1 239.4 243.1

0

50

100

150

200

250

300

Less than$1 Billion

$1 - $3Billion

$3 - $6Billion

$6 - $10Billion

$10 - $20Billion

Greaterthan $20

Billion

Total Direct ('000)

10

15

20

25

30

1014

20

25

30

0

10

20

30

40

50

M1 M2 M3 M4 M5

2015 Target Bonus %

2016 Target Bonus %

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20%

18% 18% 18%19%

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2016

2016 CDB General Industry MMPS survey

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Human Resources, Target vs. Actual Bonus

Senior Manager (M3) Career Professional (P3)

Target Bonus= 20%

9% 9% 9% 9% 9%

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2016

Target Bonus = 10%

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2016 CDB General Industry MMPS Survey

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Bonus progression by career level Accounting - AFB

Function/Discipline/

Level

% Eligible

for Bonus

Target Bonus

as a % of Salary

Avg. Bonus

as % of Salary

AFB-U1 43% 5% 5%

AFB-U2 44% 5% 5%

AFB-U3 51% 5% 5%

AFB-U4 48% 5% 5%

AFB-P1 54% 5% 5%

AFB-P2 60% 7% 6%

AFB-P3 66% 9% 8%

AFB-P4 77% 10% 10%

AFB-P5 86% 15% 12%

AFB-M1 68% 10% 9%

AFB-M2 82% 15% 12%

AFB-M3 87% 20% 18%

AFB-M4 92% 25% 24%

AFB-M5 100% 26% 27%

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108%

94%

97% 97%

106%

80%

85%

90%

95%

100%

105%

110%

115%

NY-N. NJ Atlanta Detroit Houston LosAngeles

Base Salary Differential

111%

95%

96% 97%

105%

80%

85%

90%

95%

100%

105%

110%

115%

Northeast Southeast NorthCentral

SouthCentral

WestCoast

Base Salary Differentials

2016 CDB General Industry MMPS survey

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Geographic differentials (AFB-Accounting)

By Region By Metropolitan Area

National = 100% National = 100%

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Accounting Professional/Clerk

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Total direct compensation by global corporate revenue and geography

Accounting Professional (P3) Accounting Professional (P3)

Accounting Clerk (U2) Accounting Clerk (U2)

75 76 75 76 78 80

0

20

40

60

80

100

Less than$1 Billion

$1 - $3Billion

$3 - $6Billion

$6 - $10Billion

$10 - $20Billion

Greaterthan $20

Billion

Base Salary ('000)

41 41 40 42 43 44

0

20

40

60

80

100

Less than$1 Billion

$1 - $3Billion

$3 - $6Billion

$6 - $10Billion

$10 - $20Billion

Greaterthan $20

Billion

Base Salary ('000)

72 75 78 80 83

0

20

40

60

80

100

Atlanta Dallas Chicago LosAngeles

New York

Base Salary ('000)

3842 44 42 46

0

20

40

60

80

100

Atlanta Dallas Chicago LosAngeles

New York

Base Salary ('000)

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66

60

57 56 55 54 5351

49

61

5653 52 51 52

5047

45

0

10

20

30

40

50

60

70

Engineering IT Dev't IT Admin Fin Analy andTax

HR Marketing Supply ChainMgmt

Accounting CustomerSupp/Ops

Functions

Starting Salaries 2011 vs 2016

2016 Base Salary Median 2011 Base Salary Median

2016 CDB General Industry MMPS survey

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Starting Salaries (P1-Entry)

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Hot jobs in marketing

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2015 vs. 2016

Discipline Level %

AMK112 Social Media Marketing P2- Intermediate 9.6%

AMK110 Digital Marketing Generalist P4 - Specialist 8.3%

AMK090 Marketing Program Management P3- Career 7.9%

AMK130 Web Graphic/Visual Design P4 - Specialist 5.5%

AMK140 Web Multimedia P2- Intermediate 5.3%

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0 20 40 60 80 100 120

HR Generalist

Recruitment

Accounting

Credit and Collections

Financial Analysis and Tax

Audit and Financial/Business Controls

Risk Management

IT Development

IT Administration

2013 2014 2015 2016

Average base salary ($) increase from 2013 to 2016

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P3 - career level

IT Average Annual Increase :

1.7%

5.1% over 4 years

Finance Annual Increase :

2.2%

Total increase 6.6% over 4

years

HR Average Annual

Increase: 1.1%

Total increase 3.3% over 4

years

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Base salary progression across all levels

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Accounting - AFB (total sample)

General

Accounting

Management

M1 - Superv 75,500

M2 - Manager 104,500

M3 - Sr. Mgr 135,500

M4 – Group Mgr 168,700

M5 – Sr. Grp. Mgr 197,800

Benchmark Career Level Median Base Salary

Accountant

P1 – Entry 51,400

P2 – Intermed 61,300

P3 – Career 77,100

P4 – Specialist 95,100

P5- Master 132,400

Sample

Benchmark Title Career Level

Median Base Salary $

Accounting

Accounting

Clerk

U1 - Entry 36,500

U2 - Intermed 41,200

U3 - Senior 47,400

U4 - Lead 54,000

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Base salary progression across all levels

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Accounting - AFB (total sample)

General

Accounting

Management

M1 - Superv 75,500

M2 - Manager 104,500

M3 - Sr. Mgr 135,500

M4 – Group Mgr 168,700

M5 – Sr. Grp. Mgr 197,800

Benchmark Career Level Median Base Salary

Accountant

P1 – Entry 51,400

P2 – Intermed 61,300

P3 – Career 77,100

P4 – Specialist 95,100

P5- Master 132,400

Sample

Benchmark Title Career Level

Median Base Salary $

Accounting

Accounting

Clerk

U1 - Entry 36,500

U2 - Intermed 41,200

U3 - Senior 47,400

U4 - Lead 54,000

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Base salary vs. variable pay ratio across all levels

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Management

15%

Non Management

85%VS

Source: Willis Towers Watson 2016 U.S. CDB General Industry Middle Management, Professional and Support Survey

Middle Management

M2-M5

Professional &

Supervisor

P1-P6, M1

Sales

(S1-S6)

Technical/

Business Support

U&T

Manual Worker

(W)

Headcount 15% 46% 6% 20% 13%

Pay Mix

Base Pay (%) 88% 93% 83% 97% 99%

Variable Pay (%) 10% 6% 16% 3% 1%

LTI (%) 2% 1% 1% 0% 0%

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Understanding Comp Online

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Online delivery through Comp Online TM

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More than just a report delivery vehicle, Comp Online is the fully loaded data resource you need to

create customized, meaningful and presentation-ready reports to support your compensation planning

objectives. To access Comp Online, log into www.twdataservices.com.

Accessto accurate,

easy-to-use data

Insightinto year-on-year

trends

Answersto your questions

and needs

Published users can: Advanced users can:

Published Published + Advanced

Export data in a variety

of formats

View, download and

print reports

Age data

Segment data by

industry, organization

unit, size/revenue,

geography (MMPS)

Access all companies

which participated by

publishing-deadline

Access the Published reports, plus...

Create custom peer group reports by

selecting participants based on name, size,

performance measures or industry

Access a much larger database of over 1,300

participants (including all companies from

industry surveys and new participants who

submit data after publishing -deadline)

Download results in seconds showing your

data for all positions vs. all participants or a

custom peer group

Choose from several LTI valuation

methodologies

Customize over 10 report templates to

include your preferred remuneration and

statistical elements, and regression

Combine positions, functions and levels

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Published analyses

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Custom analyses (cont’d)

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Custom analyses (cont’d)

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Sample report templates

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Function/level summary table

View target and actual bonus as % of

base or expressed in currency

amount.

View long-term incentives by plan type

and select preferred valuation

methodology.

Prevalence detail: incentives

(annual and long-term), other

scopes.

Reveal your company’s data only

to selected users. View your

incumbents for each position –

individually or aggregated – vs. the

market.

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Sample report templates

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Function/level/discipline listing

Export all position/levels/

functions in PDF and

spreadsheet format.

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Sample report templates

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Long-term annualized value table

Annual incentives, actual and

target, can be expressed as a % of

base or currency amount.

Combine all long-term plan types or run

separate reports for each plan type (e.g.,

options, restricted); choose from multiple

valuation methodologies; include # of shares

granted.

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Wrap up and Q&A

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HR Software: overview

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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

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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. 52

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 your compensation surveys. Access to all surveys

purchased 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

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Willis Towers Watson U.S. CDB General Industry survey offerings

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Surveys

Participation required

• Total direct compensation (including LTI values) by position

• Bonus and LTI values by job and salary range

• Data segmented by industry, organization unit, revenue, geography (MMPS)

• Top 20 highest paid positions and regression modeling (Executive)

• Results available in Comp Online (Published or Advanced)

Results Include

No extra data submission required for CDB participants

• For U.S.-based employees:

LTI plan design by award type, stock ownership guidelines, restrictive

covenants

LTI participation and grant process: determination of LTI grant values,

award timing, individual participation/awards

LTI values presented by salary range ( $80K and above)

segmented by industry and revenue

• Results available in Comp Online

U.S. CDB General Industry

Compensation Survey

Reports Package

• Executive Compensation

Survey

• MMPS Compensation Survey

U.S. Long-Term Incentives

Policies and Practices

Report

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Willis Towers Watson additional survey offerings

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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

Results Include

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

• Full range of policies, e.g., short-term incentives, shift differentials and

recruitment/retention.

• Covers executive through non-exempt levels

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.

General Industry International

Long-Term Incentives Survey

Report

Salary Budget Reports

Global Publications

U.S. Compensation Policies

and Practices Report

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2016 U.S. General Industry Survey results options

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Survey

AdvancedFor custom peer

groups and analytics

with disclosed (proxy)

data

Published

2016 CDB General Industry Reports Package — U.S. $9,800 $7,200

• CDB General Industry Executive $7,300 $4,500

• CDB General Industry Middle Management, Professional

and Support$5,700 $4,300

Long-Term Incentive Policies and Practices Survey report N/A $2,900

General Industry International Long-Term Incentive Survey

reportN/A $6,700

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2016 U.S. industry-specific surveys

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AdvancedFor Custom Peer

Groups and Analytics

Published

CDB Energy Services Reports Package $9,800 $7,200

• CDB Energy Services Executive $7,300 $5,000

• CDB Energy Services Middle Management, Professional and Support $5,700 $4,300

CDB High Tech Reports Package $9,800 (includes GI)/

$5,800 (excludes GI)

$7,200 (includes GI)/

$4,400 (excludes GI)

• CDB High Tech Executive $4,000 $3,000

• CDB High Tech Middle Management, Professional and Support $3,500 $2,500

CDB Media Reports Package $9,800 $7,200

• CDB Media Executive $6,800

Parent company with annual revenues with less than $500M $2,000

Parent company with annual revenues $500M to $1B $3,800

Parent company with annual revenues with over $1B $5,600

• CDB Media Middle Management, Professional and Support $5,200 $3,100

CDB Pharmaceutical and Health Sciences Reports Package $9,800 $7,200

• CDB Pharmaceutical and Health Sciences Executive $7,300 $5,200

• CDB Pharmaceutical and Health Sciences Middle Management, Professional and

Support$5,700 $3,000

Purchasers of the Advanced Option for

Industry-Specific surveys also receive

General Industry surveys for free

If you participate in our Industry-Specific surveys, you should not participate in CDB General Industry surveys.

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2016 U.S. industry-specific surveys (continued)

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If you participate in our Industry-Specific surveys, you should not participate in CDB General Industry surveys.

AdvancedFor Custom Peer Groups

and Analytics

Published

CDB Retail/Wholesale Reports Package $9,800 $6,200

• CDB Retail/Wholesale Executive $7,300 $4,500

• CDB Retail/Wholesale Middle Management, Professional and

Support$5,700 $3,400

Financial Services Reports Package $9,800

Parent company with less than $2B in assets $4,200

Parent company with more than $2B in assets $5,200

• Financial Services Executive $7,300

Parent company with less than $2B in assets $3,500

Parent company with more than $2B in assets $4,500

• Financial Services Middle Management, Professional and

Support$5,700

Parent company with less than $2B in assets $2,200

Parent company with more than $2B in assets $3,200

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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. 58

Access Your Results

Online

Central online results through

CompOnline

CDB Reports Package

Top-to-bottom coverage of

nearly every position in your

organization. Participate in

and order MMPS and Exec for

best value.

Talent and Reward

Trends

As organizations continue to

strive to optimize their total

rewards portfolio, the importance

of robust market data is more

important than ever before

CDB LTI Policies and

Practices Survey

Deepest, most comprehensive

data for long-term incentives.

Available to organization who

submit LTI data to CDB

General Industry MMPSKey Points

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Contact us

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 59

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]

wtwdataservices.com

Willis Towers Watson Compensation Consultant

For questions about Talent & Reward trends:

Katie Lind

T +1 952-842-6750

[email protected]