towers watson presentation to the american chamber of ... · pdf file© 2012 towers...

© 2012 Towers Watson. All rights reserved.

Towers Watson

Presentation to the American Chamber of Commerce in Egypt

Cairo, 5 March 2012

Roman Weidlich+971 50 910 85 39

towerswatson.com© 2012 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

Towers Watson Data ServicesContent

l About Towers Watson

l Towers Watson Data Services

l Survey Process and Methodology

l Focus on Egyptl Robust Compensation Database

l Global Competitivenessl Salary Movements Elements

l Cross Industry Sharing of Talents

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Towers Watson


Towers Watson

Towers Watson is a leading global professional services company that helps organisationsimprove performance through effective people, risk and financial management.

With 14,000 associates around the world, we offer solutions in the areas of employee benefit programmes, talent and reward programmes, and risk and capital management.

© 2012 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 5

Mergers and AcquisitionsTowers Watson helps organizations across all industries evaluate and address the people-related costs, risks and challenges of corporate transactions, from due diligence through full integration.

Talent and Rewardsl Executive Compensation: Our global expertise and experience help

clients make sound decisions about how and how much to pay senior executives.

l Talent Management and Organizational Alignment: We help develop integrated programs and processes to engage and develop leaders and employees, and align their behaviors with the critical drivers of business performance.

l Rewards: We provide the data, tools, strategy, design and execution support essential to ensure pay and other reward programs are cost-effective and deliver the behavior and performance needed.

l Communication and Change Management: We combine expertise in change management, organizational effectiveness and communication to drive employee engagement and performance, and help align behavior with business results.

l Employee Surveys: We design and administer employee surveys and apply benchmark data and advanced analytics to develop practical insights about improving employee engagement, shaping a high-performance culture and achieving optimal return on talent investments.

l Sales Effectiveness and Compensation: We collaborate with you to drive profitable growth designing incentive plans, increasing productivity and identifying traits of top sales performers.

l HR Function Effectiveness and Technology: We help accelerate the transition to a high performance HR function one that adds measurable value to both the top and bottom line.

l Data Services: A global center of excellence for compensation, benefits and employment practices information.

Towers Watson

By the Numbers

l More than 14,000 employees

l Offices in 37 countries worldwide

l Annual revenues in excess of $3 billion (2010)

l Business roots back to 1878

Our clients include:

l Over three-quarters of the Fortune 500 global companies

l Over 700 of the Fortune 1000 largest U.S. companies

l 83% of the FTSE 100 Index companies

Benefitsl Retirement: We combine expertise in retirement and investment

consulting to support organizations worldwide in designing, managing, administering and communicating all types of retirement plans.

l Health and Group Benefits: We provide advice on the strategy, design, financing, delivery, ongoing management and communication of health and group benefit programs.

l Technology and Administrative Solutions: We deliver cost-effective benefit outsourcing, integrate and automate talent management and enhance HR’s impact.

Risk and Financial Servicesl Insurance Consulting: We offer innovative consulting services that

help insurers manage risk and capital, improve business performance and create competitive advantage.

l Investment: As a leading investment consultant, we help manage investment complexity, establish clients’ risk tolerance and improve governance.

l Reinsurance: As a leading reinsurance broker, we combine creative risk transfer solutions with full-service insurance consulting and financial modeling software.

l Financial Modeling Software: Towers Watson’s actuarial know-how, industry knowledge and software expertise help measure value, manage risk and safeguard solvency.

l Risk Management: Towers Watson’s risk specialists can help address the risks that affect a client’s ability to achieve strategic goals and add shareholder value.

Intelligence. Insight. Impact.

About Towers Watson


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l Putting clients first for more than 130 years

l Global leader in all our segments

l Trusted by the world’s leading organizations

l Worldwide expertise and thought leadership

l Culture of integrity, professionalism and respectl European pensions consultancy of the year in 2008 and 2009

l Pension & Investment Provider Awards De-risking Consultant of the Year 2010

l Engaged Investor Most Innovative Pensions Consultant of the Year 2010

l Global Investor’s Consultant of the Year 2010

At a glance…

Towers Watson was formed by the merger of Towers Perrin and Watson Wyatt on January 1, 2010. We trace our roots to the world’s oldest actuarial firms.

© 2012 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.towerswatson.com 7

ASIA-PACIFIC • Australia • Greater China • India • Indonesia • Japan Malaysia • Philippines • Singapore • South Korea • Taiwan • Thailand • Vietnam

EMEA • Austria • Belgium • France • Germany • Ireland • Italy • Netherlands Portugal • Russia • South Africa • Spain • Sweden • Switzerland • Turkey United Arab Emirates • United Kingdom

LATIN AMERICA • Argentina • Brazil • Chile • Colombia • Mexico • Uruguay

NORTH AMERICA • Bermuda • Canada • United States

Our 14,000 associates in 37 countries work together to deliver the perspectives that give your organization a clear path forward.

Global breadth and depth


Project Manager and Consultants have in-depth experience developing and implementing integrated HR systems, policies and procedures in the Middle East & Africa and across the world

Towers Watson qualities have made us a preferred HR provider for key clients in the MEA.

Towers Watson Qualities

Transfer of knowledge and skills to HR project team to ensure successful execution and implementation of the new policies and systems

Strong emphasis on quality through effective project management, quality of deliverables and overall client satisfaction

Rigorous and robust approach to integrated talent management system design

Examples of Our Track-recordUAE

Abu Dhabi Chamber of CommerceAbu Dhabi Department of Economic DevelopmentAbu Dhabi Fund for DevelopmentAbu Dhabi Education CouncilAbu Dhabi Government Restructuring CommitteeDubai Economic Development Department (DED)Dubai HoldingDubai World Trade CenterCommunity Development AuthorityJumeirah GroupNational Bank of Abu Dhabi

MENAAl-Faisaliah Group, KSADohaland, QatarCapital Markets Authority, KSAKJO, KSAKuwait Oil Authority, KuwaitLuberef, KSAMumtalakat, BahrainOrascom, EgyptQFIRST investments, QatarQatar Foundation, QatarQtel, QatarSADARA, KSASaudi Arabian Chevron, KuwaitSaudi Aramco, KSA

Our Qualifications & Experience


Towers Watson Data Services


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Towers Watson Data ServicesGeographical Breadth – Survey Coverage in Over 100 Countries

l Omanl Polandl Portugall Qatarl Romanial Russial Saudi Arabial Senegall Serbial Slovakial Slovenial South Africal Spainl Swedenl Switzerlandl Tunisial Turkeyl Ukrainel United Arab

Emiratesl United

Kingdom

l Iraql Irelandl Israell Italyl Ivory Coastl Jordanl Kazakhstanl Kenyal Kuwaitl Latvial Lebanonl Libyal Lithuanial Luxembourgl Macedonial Moldoval Montenegrol Moroccol Netherlandsl Nigerial Norway

l Albanial Algerial Austrial Azerbaijanl Bahrainl Belarusl Belgiuml Bosnial Bulgarial Croatial Cyprusl Czech

Republicl Denmarkl Egyptl Estonial Finlandl Francel Georgial Germanyl Ghanal Greecel Hungary

Europe, Middle East and Africa

l Canadal United States

North America

l Mexicol Nicaragual Panamal Paraguayl Perul Puerto Ricol Trinidad &

Tobagol Uruguayl Venezuela

l Argentinal Brazill Chilel Colombial Costa Rical Dominican

Republicl Ecuadorl El Salvadorl Guatemalal Honduras

Latin America

l Malaysial Myanmarl New Zealandl Pakistanl Philippinesl Singaporel Sri Lankal Taiwanl Thailandl Vietnam

l Australial Bangladeshl Bruneil Cambodial Chinal Hong Kong l Indial Indonesial Japanl Koreal Laos

Asia Pacific

In 2011, we surveyed 35,000 organizations, providing data on 9.2 million incumbents worldwide


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Global Data Services

Global Compensation Studies Customized Surveys

Compensation, Benefits and Employment

Research

Data and Consulting

l Collaborating with technical experts from other parts of Towers Watson to provide integrated human capital and risk management solutions

l Sophisticated custom client analysis helps companies understand more than just the numbers. We spell out the implications and identify potential solutions.

We provide an extensive global network of regional survey experts and local consulting offices to ensure that each country’s surveys provide decision quality data and interpretation that reflect its local governing laws and cultural practices.

l Published compensation and benefits reports

l Web-based data access, reporting and analytics tools

l Total rewards surveysl Extensive policies and

practices information including benefits

l Custom surveys to address all components of rewards

l Individual client or association sponsored surveys

l Trend reports around current reward issues and pay movements

l Dedicated research Function

l Published reports/studies on benefits, employment terms and conditions based on HR-relevant research

l Partnering with internal and external sources

Expertise, methodology, tools and technology are the backbone of Global Data Services

Towers Watson Data ServicesGlobal Service Offering


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Towers Watson Data ServicesIndustry Expertise

Energy

Financial Services

High TechMedia

Pharmaceutical

Private Equity

General Industry

General Industry Compensation Survey:l Available to both participants and non-

participants.

Six Global Industry Surveys:l Available to participants onlyl Dedicated functions/disciplinesl Dedicated report formatsl Local industry experts

Additional Industry surveys (inselected geographies only):l Automotivel Chemicall Constructionl Manufacturing, Distribution and Servicesl Professional Servicesl Insurancel Bankingl Retaill Fast Moving Consumer Goodsl Luxury Goodsl Telecommunications


Survey Process & Methodology


Towers Watson Data ServicesIntegrated Global Levelling Methodology …

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Towers Watson Data Services… and Straightforward Job Matching Process

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1. Determine the Global Grade of the Organization

2. Assign Levels

3. Assign Functions and Disciplines


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Towers Watson Data ServicesSurvey Timeline & Customers Support

Pre-Survey Forums

SurveyLaunch

Data Return

Job Matching Meetings

Data Handling/Analysis

Report Production/Distribution

Post-Survey Forums

January to May June to October Nov./Dec.

End-To-End Support


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Towers Watson Data ServicesOnline Delivery - CompSource

Key Product OfferingsDelivered via CompSource

Advancedl Includes everything in Published

plus advanced analytical capabilities

l Peer group analysisl Customize reports (percentiles,

breaks)l Combine jobs/levelsl View your data vs. marketl Cross-country comparisonsl Year-on-year comparisons

Publishedl Standard survey reportl Age data l Select currencyl View in-depth policies and

practicesl Export data l Presentation-ready reportsPolicies Reportsl Company Car Benefitsl Benefits/ Perquisites

CompSource unifies the richness of our market data with integrated, high-end analytical capabilities to create a dynamic and secure system that allows users around the world to design highly customized reports in a variety of formats.

The overall functionality applies globally, although some features differ by survey.

CompSource is two powerful tools in one: Published and Advanced.

Additional Modules(available for select surveys)

l Global Grade Calculatorl Regression Analysis Modulel Worldwide Taxation Module


Focus on Egypt


Towers Watson Data ServicesEgypt Samplel More than 130 companies* participate annually in the Towers Watson Survey in Egypt

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0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0%

Corporate Structure

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Nationality of Parent Company%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Type of Operation%

*Participant List in Appendix


Towers Watson Data ServicesOverall 2011 Actual vs. 2012 Planned Salary Increases - Egypt

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

All Industry Hi-Tech Pharma

2011 Actual 2012 Forecast

Source : Towers Watson Compensation Surveys 2011

2020


21

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

200920102011

Towers Watson Data ServicesBasic Salary Evolution 2009-2011 (EGP By Global Grades) - Egypt

Overall Median Movement: 6.8% 2009-20109.4% 2010-2011

Watson Wyatt 2009, Towers Watson 2010 and 2011 General Industry Survey Egypt

ABS

TW Global Grade


Towers Watson Data ServicesGlobal CompetitivenessComparative Expected Growth Rate (GDP) and Inflation Rate (CPI) in 2012

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2012 GDP 2012 CPI


2222


Towers Watson Data ServicesGlobal Competitiveness (Cont’d)Comparative 2011 Actual vs. 2012 Overall Planned Salary Increases – All Industries

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2011 Actual 2012 Forecast


2323


Towers Watson Data ServicesGlobal Competitiveness (Cont’d)Comparative Gross Base Salary for Professional (GG12) – All Industries

0

20,000

40,000

60,000

80,000

100,000

120,000

Annual Base Salary(USD)


2424


Towers Watson Data ServicesSalary Movement FactorsApplicable to Base Pay

0%10%20%30%40%50%60%70%80%90%

100%

GM EX MM PR TB MW

General Increase

Merit Increase

Combination


2525

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015

GDP (% real change p.a.)CPI (avg. % change p.a.)Total Salary Increases (avg. % p.a.)

Type of Salary Increases Provided - EGYPT(By Employee Category)

GM = General ManagementEX = ExecutiveMM = Middle ManagementPR = ProfessionalTB = Technical & Business SupportMW = Manual Workers

Gross Domestic Product and Consumer PriceIndex Rates Movements - EGYPT

Source : Economic Intelligence Unit – January 2012


Towers Watson Data ServicesSalary Movement Factors (Cont’d)Applicable to Variable Pay


2626

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Sales ProfessionalsNon-Sales Professionals

Performance measurement criteria taken into account for determining bonus - EGYPT


Cross Industry Sharing of Talents


Talent Management ChallengesBrief notes from the discussion

l Around 50% of attendees experience actual issues with attraction and especially retention of their employees

l Anecdotal evidence suggests that those leaving often move on to other Middle Eastern/ GCC countries

l Areas for improvement to increase retention:l Some level of turnover will be beyond the company’s ability to influence

l Non-monetary aspects play an important role in retaining employees, especially, the relationship between the employee and his/her supervisor/ manager

l Importance of management communication to employees in difficult times; clarify company vision and commitments, build trust

l Clarify career opportunities with the companies; help employees to grow

l Targeted rewards interventions. E.g. Retention programs for selected key employees; or review pay positioning for selected employee segments (labour market for talent with MNCs pays premium versus ‘local’ companies).

l Explore current levels of employees’ engagement across AMCHAM members or within individual companies.

2828


Appendix


Towers Watson Data ServicesList of Participants in Egypt Compensation Survey - 2011

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ABBOTT LABORATORIESALCATEL-LUCENTALCON PHARMACEUTICALSALKAN CITAMERICAN EMBASSY OF EGYPTAMERICAN EXPRESS BANKAMERICAN UNIVERSITY IN CAIROANDREW WIRELESS SOLUTIONSAPLARPU PLUSASTRAZENECA COMMERCIALASTRAZENECA OPERATIONSAT&TAVON COSMETICSBANK OF ALEXANDRIABAXTERBAYERBNP PARIBASBOEHRINGER INGELHEIMBRAINLABBRISTOL-MYERS SQUIBBBRITISH EMBASSYCARGILLCISCO SYSTEMSCIT GLOBALCOMPASSCONVERGYSCOVIDIENDANONEDHL EXPRESSDOW CHEMICALDUPONTEATON ELECTRICELI LILLY MANUFACTURINGELI LILLY SALES & MARKETINGEMCEPSONERICSSONETIHAD AIRWAYS

ETISALAT ISPETISALAT TELECOMMUNICATIONEXTERRANFRANKE KITCHEN SYSTEMSFUJITSU SERVICESGE CORPORATEGE HEALTHCAREGENZYMEGLAXOSMITHKLINEGOODYEARGOOGLEGRANITE SERVICESHB FULLERHEWLETT-PACKARDHILTONHONEYWELLIBMIDEAL STANDARDIMS HEALTHINTELINVENSYSITS GLOBAL BUSINESS SOLUTIONSITWORXJANSSEN-CILAGJOHNSON & JOHNSON CONSUMERJOHNSON & JOHNSON PROFESSIONALJOHNSON CONTROLSKRAFT FOODSLUNDBECKMAJID AL FUTTAIM GROUPMASTER FOODSMENTOR GRAPHICSMERCK SHARP & DOHMEMERCKSERONOMETHANEXMICROSOFTMISR PIONEER SEED (PIONEER HI-BRED)MOBINILNCR

NESTLÉNISSANNOKIA SIEMENS NETWORKSNORGINE PHARMACEUTICALSNOVARTIS CONSUMER HEALTHNOVARTIS EGYPT HEALTHCARENOVARTIS PHARMANOVO NORDISKNUTRICIA MEDICAL NUTRITIONNYCOMEDORACLEORANGE BUSINESS SERVICESORASCOM TELECOM HOLDINGOT VENTURESPEPSICOPFIZERQUINTILESRAYA HOLDINGSANDOZSANOFI-AVENTISSC JOHNSONSCHLUMBERGERSERVIERSITASYNGENTASYNOVATETERADATATHE GAPTHOMSONREUTERSUPSVESUVIUSVODAFONEXEROXYAHOO!


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l Roman Weidlichl Rewards Practice Leader, Middle East and Africa

l Talent & Rewards

l +971 50 910 8539

l [email protected]

l Hugues Munautl Senior Consultant

l Middle East and Africa Lead

l Data Services Brussels

l +32 2 663 87 07

l [email protected]

Contact Details

l Laurent Leclèrel Senior Consultant

l Middle East and Africa Lead

l Data Services Dubai

l +971 44 55 17 19

l [email protected]

mailto:[email protected]



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