hay group egypt it sector forum - eitesal · hay group around the world & mea region...

27th April 2015 Cairo, Egypt

Hay Group Egypt IT Sector Forum

© 2015 Hay Group. All rights reserved 2

THE INFORMATION IN THIS DOCUMENT AND ANY ORAL PRESENTATIONSMADE BY HAY GROUP CONTAINS TRADE SECRETS AND CONFIDENTIALAND PROPRIETARY INFORMATION OF HAY GROUP, THE DISCLOSURE OFWHICH WOULD PROVIDE SUBSTANTIAL BENEFIT TO COMPETITORS. AS ARESULT, THIS DOCUMENT SHOULD NOT BE DISCLOSED, USED ORDUPLICATED – IN WHOLE OR IN PART – FOR ANY PURPOSE OTHER THAN TOTHE RECIPIENT OF THIS DOCUMENT. IF AN ENGAGEMENT IS NOTAWARDED TO HAY GROUP, THIS DOCUMENT AND ANY DUPLICATE COPYTHEREOF SHOULD BE RETURNED TO HAY GROUP, OR DESTROYED.

Statutory warning

Agenda


11:15 – 11:30

Q&A session

09:00 – 09:30 Registration

About Hay Group, Hay Group Activate App, Compensation &

Benefits Survey Requirements

09:30 – 09:45

11:30 – 12:30

09:45 – 11:15

Eitesal Overview

Survey Deliverables Egypt Market insight and IT sector Report

plan of action

Networking and Coffee Break

12:30 – 12:45

Hay Group around the world & MEA region

Established in

1943 in

Philadelphia

Vast presence

with data in

120 countries

around the world

worldwide

Approximately Over

3,200 employees 22,000 clients

working with more

than half of the

Fortune 500

Started working in

the MEA region in

late 70’s

MEA presence

35 countries in the

region

Approximately

150 employees in

the MEA Region

Over

4,500 clients

working in the MEA

region


Hay Group global businesses and practices

CRDs /

Account

Managers

Business leaders

HR

On demandPackaged

productized/ services

Talent

Effectivenes

s

Pay

Direct sales

Experts, advisers

Reward

BEO

Exec remuneration

Exec coaching

Top team work

BEO

L&T Reward

L&T

Expertise

services

Business

solutions

HR

services

Insight

Consulting

Productized

ServicesJE


Hay Group has taken its 70 years ofresearch and experience and channeled itinto a new suite of powerful off- the-shelftools that will help you find, reward anddevelop the talent within your organisation– and maximise your return on investmentin your people.

Our offerings split into three core areas

Effectiveness zoneEngage and enable your people

Pay zonePay the right amount

Talent zoneSelect and develop your employees

Applications across the talent lifecycle

Talent QPotential

Potential Report

Development Profile

RecruitmentTrait report

Role Match Profile

Individual developmentBehavioural Type Profile

Development Profile

Team building and

developmentTeam Report

What is ILS OCS?

Hay Group’s ILS OCS assessments measure the leadershipstyles and dimensions of climate that have the biggestimpact on team performanceLeaders who can draw from a wide range of leadership styles– tailoring their behavior to suit the demands of a situation –create positive climates that energize team members andfocus them on doing their best workLeaders who choose from a narrow range of leadership stylescreate mediocre climates which dampen motivation anddiminish performance

Leadership styles

Organizationalclimate Results

50-70% of the variance in organizational climate can be

explained by differences in leadership style

Up to 30% of variance in bottom line performance can be explained

by differences in organizational climate

ILS OCS is a 180° survey that collects data form the managers and their direct reports

ILS

Contains 68 questionnaire items

Reports on 6 leadership styles

Compares managers’ perceptions to team perceptions

OCS

Contains 47 questionnaire items

Reports on 6 climate dimensions

Shows the actual and ideal climate

ILS OCS is available in over 30 languages including Arabic

Hay Group

Activate

Helping your people makeyour strategy happen

Hay Group Activate

Activate – Styles and Climate App

Styles and Climate

It’s a coach in the pocket, helping managers to create an automatically scheduled bespoke development plan of impactful but do-able daily tasks

Gamification elements keep managers glued to the app, creating ‘stickiness’

HR can monitor and assess manager’s progress

Use of gamification techniques can enhance employees’ ability to learn by as much as 40%

Activate – Job Grading App

Grade a job

Thinks like a manager – in terms of people, not jobs

Based on Hay Group’s leading job evaluation methodology

Pre-loaded with a company’s grading structure and the line managers’ team

Managers can quickly and easily view the level of a job

HR remain in control

Activate – Job Pricing App

Price a job

Based on Hay Group PayNet, the industry leading pay and benefits database

Pre-loaded with company salary bands

Comparison across countries

HR remain in control of what data is accessed and seen

Activate - Job Description

Job description

Makes sure managers are looking for the right skills when hiring.

Is flexible allowing you to edit roles to suit your business.

Builds a robust foundation of roles across your business.

Packed with 70 years of people expertise from the pioneers of job evaluation.

Activate – Journey For Graduate Hires

Journey

Designed for new graduate recruits already in the workplace

Helps develop their emotional and social skills so they can make an impact in the workplace more quickly

Pushes graduates out into the workplace to learn ‘on the job’

Paced development program over 4 months

Fun, engaging and mobile

Based on Hay Group’s extensive knowledge of EI and learning styles

16© 2015 Hay Group. All rights reserved

Survey Launch

Client Meeting

Data Collection

Job Mapping

Survey Analysis

Main Findings

Individual Feedback Meetings

Hay Group PayNetTraining

Mid Year Update

Annual Pay & Benefits Survey Cycle

Our annual

survey

approach

Egypt Compensation

and Benefits Study

Survey Requirements


• Electronic Datasheet: Hay Group

Excel datasheet with columns

relevant to salary, allowances

and bonus practices

• Policy Questionnaire: Our

detailed policy questionnaire

enables you to submit your HR

related company policies

• Job Mapping: In order for us

to accurately size your data

against the Hay Group

Reference levels:

Job Descriptions (for up to 50

benchmark jobs)

Organisation Structure(s)

Financial dimensions of the

organisation

Our Survey Methodology

Many of our

competitors use Job

Title Matching

however this

methodology is not

robust for detailed

analysis. Hay Group’s

methodology takes

into account the

scope of the job and

size of the company.

Different methods for job comparison

VALUE ADD

TIME

INVESTMENT

Job Title matching

Job Status

(hierarchically) matching

Job Matching

with job

descriptions

Job Mapping with

structured approach

and evaluated job

descriptions

Job Evaluation


Our Survey Methodology

Hay Group Levels: Job Evaluation Criteria

In what way does

the position have

influence

on company’s results?

What are the problems

to be solved and how

are they treated?

What are the

requirements

necessary to take

over the position?

ACCOUNTABILITIES

KNOW-HOW

PROBLEM

SOLVING


Step Differences

12

13

14

15

Hay

Group

Level

1 STEP

“Career Ladder” Promotion

“The logical next step”

Lower Job

Higher Job

2 STEPS

Normal/Solid Promotion

3 STEP

“Career Ladder” Promotion

“The logical next step”

Lower Job

Higher Job

Lower Job

Higher Job


A typical “1 & 2 Hay Step move”

Typical sales department

14

Hay

Group Reference

Level

19

16

17

18

15

Area Sales

Manager

Area Sales

ManagerArea Sales

Manager

Sales

Representative

Sales

Representative

Sales

Representative

Regional Sales

Manager


Senior Sales

RepresentativeSenior Sales

Representative

Senior Sales

Representative

JobMappingSM

Example – Internal Hierarchy Grading Structure

Job Family Mapping – Internal Relativity

IT JOBS

Hie

rarc

hy

Str

uctu

re


SALES JOBS HR JOBS

Job 3 Job 3 Job 3

Job 2 Job 2 Job 2

Job 1 Job 1 Job 1

Comparisons with similar jobs in other Organisations

14

18

16

17

15 Job 1

IT JOBS IN

COMPANYA

Job 3

Job 2

Job 1

Job 3

Job 2

Job 1

IT JOBS IN

COMPANY B

Level


IT JOBS IN

COMPANY C

Job 3

Job 2

JobMappingSM Matrix - Example

Hay Group will be using its JobMappingSM methodology to size the jobs. More importantly, we closely work

with the organisations and understand the size of the roles & complexities

57© 2015 Hay Group. All Rights Reserved

92 Jobs in the IT, Call Centre and Customer Service Job Families in the Hay Group Job Model

Hay Group IT Sector Family and Sub-Families

Information Technology /

Internet-based Technology

Call Center

Application Development


Customer Service

Infrastructure Development

Technical Operations and End User Support

Data Management and Security

Service Level and Process Management

IT Consultancy

Internet-Based Services and Support

Technical

Non Technical

Inbound and Outbound

Agenda


11:15 – 11:30

Q&A session

09:00 – 09:30 Registration

About Hay Group, Hay Group Activate App, Compensation &

Benefits Survey Requirements

09:30 – 09:45

11:30 – 12:30

09:45 – 11:15

Eitesal Overview

Survey Deliverables Egypt Market insight and IT sector Report

plan of action

Networking and Coffee Break

12:30 – 12:45

Feedback Reports

Year Round SupportOnline Database Access

Hay Group PayNet

Mid year Updates & Up to date

Market Studies

Egypt Survey Deliverables

IT Sector Report

Overview on PayNet

■ It aids to extract data

via locally

consolidated

parameters

■ Provides access to

benefits prevalence

practices of local

importance

■ Data aggregates are

based on local

country requirements

underpinned by the

global methodologies

■ Data on PayNet is

available in local

currency of the

respective country

■ PayNet is specifically

designed for reward

managers


PayNet is Hay Group’s online portal covering the

reward practices

www.haygrouppaynet.com

http://www.haygrouppaynet.com/

Example Objective

This task supports organisations’

in identifying gaps in its current

compensation positioning

against other organisations to

which they can lose and gain

human capital and in

understanding the pay practices

within the selected peer group

companies in Egypt.

The external market

competitiveness are delivered

for Basic Salary, Base Salary

and Total Cash against all

organisations and selected peer

group markets.

*The chart shown above is for graphical purposes only

Example of Customized Peer Group Analysis


Feedback Benchmark Report

85

140

177

212 217 208

262

293

0

50

100

150

200

250

300

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2007 2008 2009 2010 2011 2012 2013 2014

>180,000employees

293companies

2014 Egypt reward database


Hay Group provides insight across sectors

16%

13%

12%

8%7%6%

5%

4%

4%

4%

4%

3%

2%

2%

2%

1%1%1%

Fast Moving Consumer Goods

Oil and Gas

Industrial Goods

Construction and Materials

Chemicals

Banks

Financial Services

Natural Resources

High Technology

Retail

Services

Consumer Durables

Life sciences

Transportation

Telecommunications

Utilities

Insurance

Healthcare

Leisure and Hospitality

Others

22

sectors


1.8%

Economic Outlook

2013

2014

2015(f)

2.1%

3.3%

9.9%

9.5%

10.6%

GDP

GrowthInflation


All IndustriesSalary movements (same companies) and forecasts

Base Salary

forecasts (2014-15)

10.8%

Base Salary

movement (2013-14)

11.3%

Employee

Groups

10.0%

is the Basic

10.3%is the Base

Salary

Movement

Clerical

Supervisory

Middle

Management

Senior

Management

10.2%

10.4%

5.8%

95% of organisations have provided a salary increase

10.8%

11.1%

11.4%


10.7%

6.8% 6.8%

10.3%11.0%

0.6% -2.4% -2.7% 0.4% 0.4%

2011 2012 2013 2014 2015 (F)

Actual increase Real increase

10.1% 9.2% 9.5% 9.9% 10.6%

What was the real increase?

Real increase = actual base salary increase - inflation

Inflation


74% 75% 74% 75%

11% 11% 13% 14%

15% 14% 13% 11%

Supervisory2013

Supervisory2014

Clerical/Operational2013

Clerical/Operational2014

Basic Salary Cash Allowances Variable Pay

2014 Remuneration mix


70% 69% 73% 73%

8% 10%10% 10%

22% 21% 17% 17%

Senior Mgt.2013

Senior Mgt.2014

Middle Mgt.2013

Middle Mgt.2014

Basic Salary Cash Allowances Variable Pay

2014 Remuneration mix (cont.)


-10

%

7%

-14

%

8%

-20%

-10%

0%

10%

20%

30%

Local Companies Multinational Companies

Basic Salary Base Salary

Pay difference by ownership

All market = 0%


Regional comparison : Base Salary

Egypt pay market is in line with the north African region

The pay in GCC on average is 2.5 times higher than Egypt

8 9 10 11 12 13 14 15 16 17 18 19 20 21

Base S

ala

ry (

Annually

in U

SD

)

Hay Group Reference Level – Job size

Egypt Gulf Countries Algeria Morocco Tunisia


Bonus as a % of Basic Salary

15% 15%18%

26%

19%21%

23%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Clerical Supervisory MiddleManagement

SeniorManagement

Target bonus Actually paid

91% of organisations paid bonus in 2014


Housing Allowance

34% of the participating organisations stated that they provide housing allowance to their employees out of which more than 50% of them pay it as a form of cash.

Transportation Allowances

82% of the organisations provide Transportation Allowance to their employees, and 58% provide company transport such as company bus

Fuel Allowance

Over 50% organisations have planned to increase fuel allowance in response to the recent hike in fuel prices

Most of the employees expect an increase in their transportation allowance varying from 20% - 40%

Rising Trends: Allowances


Rising Trends: Benefits

Company cars

62% of the participating organisations stated that they offer car plans to their employees. Organisations purchase the job status cars provided to their employees at higher grades and lease the job requirement cars.

Holiday Entitlement

26% of the participating organisations stated that they provide their employees with extra days off in addition to national holidays or legally required vacation.

Telecommunication Assistance

42% of the participating organisations stated that they provide their employees with telecommunications assistance (mobile phone benefit)


Most people think they are paid unfairly

On average only 37% of employees think they are paid fairly

compared to people in similar roles in other organisations


How do employees feel in Egypt?

45%

59%

37%

42%

47%

61%

0% 20% 40% 60% 80%

I believe I am paid fairly for the work I do

The organization provides employeebenefits that meet my needs

Global

Egypt

High Technology Sector


Your Road Map

To ensure your pay is

aligned:

Internally between employees Externally against the market


We propose the below timelines of around 10 weeks. The time taken to complete

the Reward benchmarking project would also depend upon the IT companies that

agree to work with us in this critical project :

Project Timelines

Task DescriptionWeeks

1 2 3 4 5 6 7 8 9 10

1 Conduct an IT sector forum in Egypt

2Feasibility study to get project participation for

the Reward Benchmarking project

3 Face to Face meetings to collect Data

4 Job Mapping Trainings / Sessions

5 Deliver the Reward Benchmarking report

6 Face to face meetings to deliver the final results


Fees for Hay Group Egypt Survey

Hay Group Egypt IT Compensation & Benefits Report Package Fees in USD

Hay Group Egypt compensation & benefits IT sector report

$3,500

Peer group benchmark feedback report

Hay Group 24/7 online database access, PayNet

Egypt mid-year update report

Year Round Support through dedicated Account Managers


Investment for IT Sector Organisations

Hay Group Egypt IT Compensation & Benefits Report PackageFees in

USD

Fees after

discount

Hay Group Egypt compensation & benefits IT sector report

$3,500 $3,325

Peer group benchmark feedback report

Hay Group 24/7 online database access, PayNet

Egypt mid-year update report

Year Round Support through dedicated Account Managers

Contact Us:

[email protected] [email protected]

[email protected] [email protected]

hay group egypt it sector forum - eitesal · hay group around the world & mea region...

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