H E A LT H
W E A LT H
CAREER
C O M P E N S AT I O N
A N A LY S I S
AND REVIEW
SERVICES
TA K I N G T H E W O R K
OUT OF YOUR
C O M P E N S AT I O N
REVIEW PROCESS
W W W. I M ER C ER .C O M /C A R S
M O R E I N F O R M AT I O N
W W W.IMERCER.COM/CARS
Mercer’s Compensation
Analysis and Review
System has been carefully
conceptualized by Mercer
experts after detailed
research and close
collaboration with our
clients for their annual
salary review process.
The tools used for
salary reviews, often
spreadsheets, lend
themselves to human
error and as a result, many
hours are lost struggling
with outdated tools to
audit the data and keep
the compensation review
process on track.
2
WITH MERCER’S
C O M P E N S AT I O N
A N A LY S I S A N D
REVIEW SERVICES,
Y O U C A N S W I F T LY
G A I N C O M PE T I T I V E
INSIGHTS
• Obtain data analysis on pay
levels to access market
competitiveness by market,
region or industry.
• Study compa-ratio against the
market using your company
pay philosophy and guidelines
to understand competitive
practices and gain insights
into market pay mix policies.
USE MERCER’S ONLINE
C O M P E N S AT I O N A N A LY S I S
AND REVIEW SERVICES TOOL
T O G E N E R AT E T H E R E P O R T
I N D E P E N D E N T LY
This online rewards tool is an off-theshelf software application that is simple
to implement, genuinely easy to use and
cost-effective.
Allows for multiple customized analyses
on compensation components to be
conducted instantaneously, boosting
effectiveness during your annual salary
review.
A customer service team will be available
to advise on technical issues should
you have problems with data inputs and
report generation.
W H AT ’ S N E W ?
E N S U R E FA I R N ES S W I T H
I NTE R N A L CA LI B R AT I O N
• Obtain data analysis on
company data to gauge
internal parity and ensure
alignment of actual pay
practices to pay policy.
ENSURE BUDGETS ARE
U S E D W I S E LY T H RO U G H
A N A LYS I S O F PAY
D I S PE R S I O N
• Obtain reports on statistics
from 5th percentile to 95th
percentile.
W W W.IMERCER.COM/CARS
Enhanced the tool to cater to different
countries/ regions outside Asia.
With this enhancement now it is very
easy for a multinational company or
conglomerate to do the analysis for any
country /markets with multiple peer
groups. Regional HR representatives can
run reports for respective countries by
the click of a button, saving time and
increasing accuracy.
Added a new analysis ‘Internal Grade
and PC’ in the Report section. Map
internal grades within your organisation
to the Mercer’s position class to gauge
competitiveness & facilitate decision
making at each grade level.
Administrative access holders can help
create additional users and assign
respective countries.
3
V A R I O U S A N A LY S I S F R O M M E R C E R ’ S C O M P E N S AT I O N
A N A L Y S I S A N D R E V I E W S E R V I C E S ( S A M P L E O U T P U T S)
1. D E V I AT I O N A N A LYS I S BY J O B
Analysis done at each incumbent level where deviation percentage is calculated against the
actual market data for the Mercer job code (MUPCS) mapped, at all chosen percentiles based
on the peer group selected. The tool also summarizes the number of incumbents falling below or
above the market for quick decision-making.
SELECTED CRITERIA
Country
Italy
Compensation chosen
Annual Total Cash Actual
Market Set
My_peergroup
Percentile chosen
P25,P50,P75
Dated
2/2/2016 10:52:24 AM
JOB WISE REPORT
Company Data
Market Data
Employee ID
Actual Title
Job Code
Mercer Title
Z0000PRQ
Buyer - Entry - Supp
610.572.360
Z0005V0R
Buyer - Senior - Sup
Z0005V1B
Z0005V1E
Customer
R l ti - Senior
hi
Accountant
Z0005V1F
Accountant - Senior
210.316.340
Z0005V1K
430.532.340
Z0005V1Q
Customer Service
A
Buyer - Senior
- Sup
Z0005V3V
Z0005V4G
Deviations %
Career
Stream
36
Incumbent
Salary
33,540
P25
P50
P75
P25
P50
Buyer - Entry - Supply & Logistics
Internal
Grade
C
-
30,212
-
-
11
-
610.572.340
Buyer - Senior - Supply & Logistics
E
34
103,628
42,373
51,637
56,364
145
101
84
610.528.420
Customer Relationship Representative E
i Accountant
d S - Senior
l & L i ti
A
42
41,243
-
-
-
-
-
-
D
34
46,693
36,820
50,672
58,146
27
-8
-20
Accountant - Senior
D
34
60,672
36,820
50,672
58,146
65
20
4
C
34
55,413
-
38,227
-
-
45
-
610.572.340
Customer Service Analyst - Senior C t - Supply
t C t & Logistics
Buyer - Senior
E
34
63,364
42,373
51,637
56,364
50
23
12
Accountant - Senior
210.316.340
Accountant - Senior
D
34
65,922
36,820
50,672
58,146
79
30
13
Accountant - Senior
210.316.340
Accountant - Senior
D
34
44,851
36,820
50,672
58,146
22
-11
-23
210.316.340
P75
2 . D E V I AT I O N A N A LYS I S BY J O B FA M I LY
View average deviation at each Mercer Job Family or Sub Family based on Career Level/Stream
for all compensation components.
This analysis allows you to view market competitiveness at the department level and highlights
focus areas for your organization.
SELECTED CRITERIA
Country
Italy
Compensation
Annual Guaranteed Salary
Deviation By
Family
Market Set
My_peergroup
Percentile Used
Median
Dated
2/2/2016 11:05:28 AM
Career Stream & Level
Professional Senior
Grouping
Mean
4
3 . C O M PA N Y T R E N D LI N E A N A LY S I S
Regression is done for both the chosen peer market and the company data to assess the
company’s overall positioning at each Mercer Position Class (PC) for all compensation
components. You can also view regressed data tables for accurate comparison.
SELECTED CRITERIA
Country
Philippines
Market Set
All_Data_PH
Compensation
Annual Guaranteed Salary
Dated
2/19/2016 6:26:37 AM
PC
Company Trend
Line
MR10
MR20
MR30
MR40
Median
41
226,053
136,507
152,592
164,860
178,913
190,950
42
264,385
158,852
179,060
194,281
211,433
226,235
43
309,218
184,855
210,118
228,953
249,863
268,040
44
361,654
215,115
246,563
269,813
295,280
317,570
45
422,982
250,328
289,330
317,964
348,950
376,252
46
494,709
291,306
339,514
374,708
412,377
445,778
47
578,599
338,991
398,403
441,579
487,332
528,152
48
676,715
394,482
467,507
520,385
575,912
625,747
49
791,469
459,057
548,597
613,254
680,592
741,377
50
925,682
534,202
643,752
722,696
804,300
878,373
51
1,082,654
621,646
755,409
851,667
950,489
1,040,680
52
1,266,245
723,411
886,440
1,003,663
1,123,259 1,232,990
53
1,480,969
841,830
1,040,195
1,182,779
1,327,428 1,460,830
54
1,732,104
979,632
1,220,617
1,393,859
1,568,706 1,730,770
55
2,025,826
1,139,992
1,432,333
1,642,608
1,853,838 2,050,590
56
2,369,355
1,326,603
1,680,773
1,935,751
2,190,798 2,429,510
57
2,771,138
1,543,761
1,972,305
2,281,210
2,589,007 2,878,450
58
3,241,053
1,796,468
2,314,406
2,688,321
3,059,598 3,410,350
4 . C O M PA N Y PR AC T I C E V S . P O LI CY
You may view how incumbent scatter points on Actual and Average Pay compare against the
Company Pay Policy line, so as to understand the company’s actual pay practice against the
established philosophy.
SELECTED CRITERIA
Country
Philippines
Compensation
Annual Total Cash Actual
Grouping
Mean
Market Set
All_Data_PH
Percentile
P60
Dated
2/19/2016 6:24:03 AM
5
5. I NTE R N A L EQ U I T Y
This report plots the actual salaries of all incumbents at each position class against the Minimum,
Median and Maximum regressed lines of the company pay. It helps you to view pay equity between
like-positions and the report highlights if all roles are governed by the same guidelines.
6. C O M PE N S AT I O N M I X A N A LY S I S
The ratio between annual guaranteed (fixed) compensation versus annual variable pay is
illustrated by each Mercer career stream and level for both market and company.
SELECTED CRITERIA
Country
Italy
Variable Pay Type
Actual
Grouping On
Mean
Market Set
My_peergroup
Career Stream and Level
Management
Dated
2/2/2016 12:07:25 PM
Compensation Mix on Actual
Guaranteed cash
Variable cash
Career stream & levels
Management Team Leader (Proffessionals) Mkt
Management Team Leader (Proffessionals) Co
29
81
Management Team Leader (Para-Proffessionals) Mkt
19
88
12
Management Senior Manager Mkt
71
29
Management Manager Mkt
71
29
Management Manager Co
6
71
81
19
7. PAY D I S PE R S I O N
The Pay Dispersion index provides the scatterplot of compa-ratio of each incumbent at each
Position Class against the index of 100% compa-ratio market reference salary. It helps you to see
if incumbents are paid significantly lower/higher for a similar job size.
SELECTED CRITERIA
Country
Italy
Compensation
Annual Guaranteed Salary
Grouping On
Mean
Market Set
My_peergroup
Percentile
P65
Dated
2/2/2016 12:10:38 PM
8. I NTE R N A L G R A D E A N D P C
Quickly assess your company’s overall positioning at each internal grade level for all
compensation components against a chosen peer market. The internal grade levels will be
mapped to the Mercer Position Class ranges that you can choose to enter in the tool.
SELECTED CRITERIA
Country
Italy
Compensation
Annual Total Cash Actual
Market Set
My_peergroup
Percentile
P25,P40,P55
Dated
2/2/2016 12:12:43 PM
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W A N T A M E R C E R C O N S U LTA N T T O H E L P Y O U I N T E R P R E T
T H E C O M P E N S AT I O N A N A LY S I S A N D R E V I E W S E R V I C E S
T O O L R E S U LT S ?
CA R S C O N S U LT I N G S E RV I C ES
A dedicated, experienced Mercer consultant will help you with your salary review
process by sharing various kinds of analyses required to understand market
competitiveness & internal parity issues.
Based on our experience across industries, Mercer will identify the benchmarks that
best represent your organization’s compensation situation and utilize these in your
report.
Your consultant will also present the findings and recommendation to your management
at a face-to-face meeting if required.
W H I C H C A R S O P T I O N S U I T S M Y O R G A N I Z AT I O N?
GET THE
C O M PE N S AT I O N A N A LYS I S
A N D R E V I E W S E RV I C ES
O N LI N E TO O L
D O I T YO U R S EL F
C O M PE N S AT I O N A N A LYS I S
A N D R E V I E W S E RV I C ES
TO O L PLU S C O N S U LT I N G
S E RV I C ES
M ER C ER G EN ER AT ED
If Your
Organization
What’s
Included
...needs to do quick and
multiple tweaks to data and run
all kinds of analysis at a click
...needs quick help to do all
kinds of analysis and wants a
Mercer consultant to share key
findings with stakeholders
• Access to the online tool for
your multiple analyses
• Access to the online tool for
your multiple analyses
• Reports generated as Excel
files
• Consolidated analysis report
presented by a Mercer
consultant along with key
findings
• Customer service support on
your technical needs
• Consultant working closely to
interpret the analyses based on
your organization needs
8
SAMPLE OUTPUT OF EXECUTIVE SUMMARY PRESENTED
B Y T H E M E R C E R C O N S U LTA N T F O R C O M P E N S AT I O N
A N A LY S I S A N D R E V I E W S E R V I C E S R E S U LT S
E X EC U T I V E S U M M A RY
E X T E R N A L M A R K E T C O M PE T I T I V E N ES S
Executive Summary
• [Company X] is well positioned above the market 60th percentile for all levels at annual
base salary (Comp 1)
• [Company X] should review the 34% incumbents whose individual pay is below the market
60th percentile at Comp 1 as per job analysis even though the overall positioning at Comp
1 is above market 60th percentile.
• However, there are certain allowances prevailing in the market that are not part of
[Company X]’s compensation.
• As a result, the positioning drops closer to median for guaranteed cash (Fixed salary/
Comp 2).
• [Company X] ‘s variable pay proportion is slightly lower than the market at junior levels, but
has higher variable pay at management levels.
• As a result [Company X]’s positioning at annual total cash (Comp 3 Target) varies with
level – below median at lower levels, above median at middle management and above 60th
percentile for senior management levels.
• At an incumbent level, although 90% of the incumbents are above the market median at
Comp 1 but only 40% of incumbents are above market median at Comp 3. Similarly, 55%
of incumbents are above the 60th percentile at Comp 1 but only 30% above the 60th
percentile at Comp 3.
9
COMPENSATION ANALYSIS AND REVIEW SERVICES
- ONLINE TOOL
USD 4,000
per user access per year for the first country
USD 900
thereafter for every additional country
USD 1,000
additional for data upload services per country
COMPENSATION ANALYSIS AND REVIEW SERVICES
- ONLINE TOOL PLUS CONSULTING SERVICES
USD 5,000
per user access per year per country for the tool.
Consulting services are available for any 1 peer
group in a year.
10
F O R M O R E I N F O R M AT I O N : W W W. I M E R C E R . C O M /C A R S
P R I C I N G ( VA L I D F O R T O TA L
R E M U N E R AT I O N S U R V E Y ( T R S)
M E M B E R S O N LY )
FOR QUERIES ON THE
C O M P E N S AT I O N A N A LY S I S
AND REVIEW SERVICES TOOL,
C O N TA C T:
CLIENT SOLUTIONS TEAM , ASIA
E: [email protected]
T: +65 6398 2323
W W W.IMERCER.COM/CARS
11
For further information, please contact your
local Mercer office or visit our website at:
www.imercer.com
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