willis towers watson data services - mail.ccift.com general industry... · agenda about willis...

Willis Towers Watson Data Services

General Industry Feedback Seminar

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson cl ient use only.

Agenda

About Willis Towers Watson

About Willis Towers Watson Compensation Surveys

Economic Indicators

Job Mapping Methodology

Hi-Tech Compensation Survey Results

CompSource Online Database & Compensation Surveys Feedback File


About Willis Towers

Watson


About Us...

Turkey:• More than 120 employees

• 4 different regional offices: İstanbul, Ankara, İzmir and

Bursa • Human Capital and Benefits, Corporate Risk and

Broking

Risk Consultancy and Software, Reinsurance Broking

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

Willis Towers Watson

Help in executing strategy

Values

Strategy System

Skills Style

Structure

Staff

7-S Framework

Organization Design & Efficiency

Job Architecture & Evaluation

HR Technology & Process

HR Enablers

Leadership Development

Manager Effectiveness

Data Surveys

Career Management Framework

Succession Management

Workforce Planning & Analytics

Total Rewards Design

Talent Management

Assessment & Development

Competency Architecture

Employee Value Proposition

Cultural Alignment

Organizational Surveys &

Insights

Human Capital Strategy

Performance

Management

Optimization of Human

Capital Investments


About Willis Towers

Watson Compensation

Surveys


Global Products - Sector Coverage

Energy

Financial

Services

High TechMedia

Pharmaceutical

and Health

Sciences

Retail

General

Industry

General Industry compensation survey:

Focuses on Functions and Disciplines

common to most industries

Industry-Specific compensation surveys:

Focuses on industry-specific and general

industry Functions and Disciplines

Additional sector cuts:

Insurance

Pharmaceuticals

Medical Technology

Consumer Goods

Sourcing

Club Surveys:

With the sponsorship of one or more

companies club surveys analyse specific

issues requested by the sponsors.

Executive Compensation:

Focuses on CEO and the executive

positions reporting directly to the CEO


200

251

323

406

486

618

203

262

384

522

606

685

0

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015 2016

A

D

V

A

N

C

E

D

P

U

B

L

I

S

H

E

D

Average Participation Growth Rate 32%

Willis Towers Watson Compensation Surveys - TurkeyYıllar itibariyle

2011 – 2016


2016 General Industry Compensation Surveys Participation Figures

2015-2016

Retention Rate

Published

Report Growth

Rate in # of

incumbents

Growth in GI Published

database

Total # of Participants

accross all surveys

including late comers

General Industry

Published Report

Participants

82% 27% ̴ 685

72%614# of Incumbents in General Industry

Published Report+160,000© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson cl ient use only.

General Industry

HIGH TECH – 141

RETAIL – 115

AUTOMOTIVE – 33

MEDIA – 52

FMCG – 60

FINANCIAL SERVICES – 97

PHARMA – 65

MEDICAL TECH – 24

ENERGY – 31

INDUSTRY – 40

PROF. SERVICES – 16

CONGLOMERATES – 16

2016 Compensation Surveys Participation Figures


Economic Indicators


Salary review trends in Turkey: Role of CPI/Cost of Living increases

in salary review practices has changed in the last decades.

72.0

66.071.0

126.0

76.080.0

99.0

70.0 69.0

39.0

69.0

30.0

18.0

9.0 7.7 9.7 8.4 10.16.5 6.4

10.56.2 7.4 8.2 8.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Willis Towers Watson General Industry Compensation Surveys and TURKSTAT

Change in salary review practices: Decreasing inflation and relatively more stable and predictable

economic environment led companies to revisit their annual base salary review approaches.

‘90s Early ‘00s Today

Economic Environment High Inflation Downturn Relative Stability

Considerations Retroactive Hybrid Proactive

Frequency Twice a year Quarterly Once a year

Components CPI + Merit Increase Fix Increase < CPITotal Increase % (inc. both CPI and

adjustment)


CPI typically shows a higher increase towards the end of the year: Relatively

higher progression of CPI in Quarter 4 brings challanges for the right salary

budget planning

2.4

1.6

1.0

3.3

94.0

96.0

98.0

100.0

102.0

104.0

106.0

108.0

110.0

Year T-1 Q1 Q2 Q3 Q4Year: T-1 Quarter 1 Quarter 2 Quarter 3 Quarter 4

Source: TURKSTAT

Based on CPI movement between quarters for each period from June, 2005 to Oct, 2015


Expected, budgeted increase against actual CPI: Expected and budgeted

salary budget increases are showing less volatility than actual CPI increase

between years 2011 and 2016.

6.5%

7.5%

8.0% 8.0% 8.0% 8.0%

7.1%

8.0% 8.0% 8.0%8.2% 8.2%

10.5%

6.2%

7.4%

8.2%

8.8%

00%

02%

04%

06%

08%

10%

12%

2011 2012 2013 2014 2015 2016

Beklenen Ücret Artışı Gerçekleşen Ücret Artışı Enflasyon


Salary Forcast Salary Movement Inflation

Economic Indicators

2017 Expected

Salary Increase

Budget

%7,6 - %9

2016

Salary Budget

Increase

%8,0

%8,2%8,8

YTD Inflation

%7,22016 Expected

Inflation Rate

%7,5

2015 Inflation RateSame Companies

2015-2016 Market

Movement

%8,9


Job Mapping

Methodology


Job Mapping: A Three Step Process

Determine the Global Grade of the Organization (Sizing the Business)Global Grade of the organization based on:

a. Number of employees

b. Company turnover

c. Geographical scope and Business Complexity/Diversity

Confirm against CEO benchmark descriptions by Global Grade

Assign Levels and Global Grades Determine the Career Band

Identify the Levels within the Executive Career Band: Global Grade only

Identify the Levels within the other Career Bands: Career Level and Global Grade

Differentiator

Assign Functions and Disciplines For all Positions:

Function (Job Family)

Discipline (specialty within Function)


Dimension 1&2: Company Turnover and Number of FTE

Global Grade 16 17 18 19 20 21 22 23 24 25

Turnover <$75m$75m-

$150m

$150m-

$500m

$500m-

$1bn

$1bn-

$2bn

$2bn-

$5bn

$5bn-

$10bn

$10bn-

$50bn

$50bn-

$100bn

>$100

bn

FTE = 19

Global Grade 16 17 18 19 20 21 22 23 24 25

FTE <9090-

240

240-

620

620-

1,600

1,600-

4,100

4,100-

10,600

10,600-

27,500

27,500-

75,000

75,500-

200,000

>200,00

0

Turnover = 17


Dimension 3: Business Unit Classification

GlobalMajority of functions

represented across three or more continents

20 22 24

InternationalMulti-function operations

across a region or in several countries across

two continents

19 21 23

DomesticMajority of operations

based in a single country or small cluster of

countries in one region

16 18 20

Diversity/Complexity

Low Related products/services

in a single industry AND

Does not control full value chain of activities (1)

MediumDiverse/unrelated products in more than one industry

ORControls full value chain of

activities (1)

HighDiverse/unrelated products in more than one industry

ANDControls full value chain of

activities (1)

Diversity

Complexity

(1) Full Value Chain of Activities means that the organization maintains end to end control of the business, including design, creation, sale and support of products and/or services. These activities are fulfilled internally and not outsourced to a third party organization or external contractors/agents (for a subordinate entity, not fulfilled by the parent or another business unit)

Geog

rap

hic

Bre

ad

th


Sizing the Organization

Parent Summary Scope Data

Parent Revenue

Currency

Parent Annual

Revenues (millions)

Parent Annual

Revenue Range

Parent Number of FTE

Employees

Parent FTE Employee

Range

Parent Geographic

Scope

Parent has Full Value

Chain of Activities

(Y/N)

Diversified Parent

(Y/N)

USD 15,000 [G] $5bn to $10bn [H] 27,500 to 75,000 Global Y N

Parent Estimated Global Grade (based on Parent Summary Scope Data above, for validation purposes only)

Dimension 1: Annual Revenue Range

Global Grade

Dimension 2: FTE Employee Range

Global Grade

Dimension 3: Business Unit Classification

Global Grade

Parent Aggregated Estimated Global Grade (average)

[B] $75m to $150m [D] 620 to 1,600 International Y N

17 19 21

19


General Alignment for Survey Purposes

Career BandGroups jobs with similar skill requirements and career progression

Career Level• Discernible broad step in a career progression

• Consistent across organizations

• Reflects normal market progression of jobs requiring higher levels of competence and knowledge as people advance in their careers

Global Grades• Provide the underpinning

(foundation) for both Executive Benchmarks and the Career Levels

• Not collected in North America, reported upon request


Detailed Function List

Code Function

AAA Top Executive

AAB Profit Center Management

AAS Administrative Services

AAT Administrative Transportation Services

AAY Security

ACA Corporate Affairs/Communications

ACD Strategic Planning/Corporate Development

AEC Economics

AEM Modeling, Forecasting and Economic Analysis

AEO Business Operations Analysis

AFA Finance

AFB Accounting

AFC Credit and Collections

AFG Finance and Accounting

AFP Business Unit Control

AFQ Valuation Control

AFT Financial Analysis and Tax

AFU Audit and Financials/Business Controls

AFW Fraud

AFY Risk Management

AFZ Credit Policy/Administration and Collection

AGA General Management and Administration

AGE Estate Operations

AGM Mill Operations

AGR Agricultural Services

AGS Geosciences

AHR Human Resources

AHS Environmental Health and Safety

AIC Information Technology

AID IT Development

Code Function

AIT IT Administration

AIX Securities Operations

ALC Compliance

ALG Legal

ALS Legal Support

AMJ Sales and Marketing

AMK Marketing

AMS Customer Support/Operations

AMT Technical Customer Support

AOL Manufacturing and Engineering

AOM Manufacturing/Operations

AOO Outsourced/Contract Manufacturing

APA Plant Administration

APM Project/Program Management

AQY Quality Assurance Methods

ARE Real Estate and Facilities

ARO Research and Development

ARP Product Development

ARR Product Development Support

ARS Research Science

ARU Research Science Support

ASB Purchasing

ASC Supply Chain Management

ASD Shipping Terminal Operations

AZA Engineering and Construction

AZC Construction

AZE Engineering

AZT Technical Specialty/Skilled Trade

AZU Manual/Unskilled Labor

AZZ Specialized Consulting

General Industry (65)


Detailed Function List

Sales (21)

Code Function

CAH Animal Health Sales

CAM Account Management

CBM Bid Management

CCH Over-The-Counter (OTC)/Consumer Health Sales

CDM Client Service Delivery Management

CMR Medical Representation

CSA Advertising Sales and Account Management

CSC Channel Sales

CSD Direct Sales

CSG Government Sales

CSI Audience Development/Circulation/Subscription Sales

CSL Large Deal Acquisition Sales

CSN New Account Acquisition Sales

CSP Program/Affiliate Licensing Sales and Account Mgt

CSR Retail Store Sales

CSX Retail Store Luxury Goods Sales

CTS Telesales

CUC Advertising Sales Creative Services

CUS Sales Support and Administration

CUT Technical Sales Support

CUX Luxury Goods Sales Training

Code Function

TCA Consulting/Professional Services

TCB Business Consulting

TCT Technology/Systems Consulting

TID Technology/Systems Development

TMO Outsourcing Services

TMP External Project/Program Management

TPD Technology Product Development

TPG Computer Game Development

TPS Technology Product Development Support

Technology Sector (9)

Code Function

PCK Pharmaceutical Research and Development

PCL Clinical Development

PDR Drug Discovery Research

PCC Drug Development and Preclinical Studies

PRA Medical Affairs

Pharmaceutical and Health Sciences (5)

Code Function

MBA Media Business Affairs

MPB Media Operations

MPC Media Programming

MPD Media Production/Development

MPG Media Production Creative Design

MPN Presenting/On Screen/On Air

MPO Media Production Operations

MPP Media Post-Production

MPT Media Localization/Translation Services

MRE Broadcast Engineering

MSJ Journalism

MTC Online/Digital Content Production and Management

MVP Printed/Recorded Materials Production

MXS Event/Exhibit Production and Operations

Media Sector (14)


An example of Discipline for One Function

AHR Human Resources

AHR000 HR Generalist / Consultant Generalist / Multidiscipline

AHR010 Compensation and Benefits Generalist / Multidiscipline

AHR050 Compensation – Sales Compensation

AHR060 Benefits

AHR070 Pension Plan Administration

AHR080 International / Expatriate

AHR090 Employee/ Labor Relations Generalist / Multidiscipline

AHR095 Employee Relations

AHR100 Labor Relations

AHR120 Organization Development

AHR130 Employee Development / Training Generalist / Multidiscipline

AHR134 Technical Training

AHR140 Recruitment Generalist / Multidiscipline

AHR150 Human Resources Information Systems (HRIS)


AHR 000 - P3 - 11

First letter of Function Code =

Industry Indicator:

A General Industry

C Client Management (Sales)B BPO

E Energy

F Financial Services

N Energy

P Pharmaceutical and Health Sciences

R Retail

T Technology

U University

Y Construction, Real Estateand Property Management

Last two letters of the Function code derived

from title to maintain sequence and group

related Functions together

AHR Human Resources

TCB Business ConsultingCUS Sales Support and Administration

Discipline (specialty) within a Function assigned

a six-character code comprised of Function code

+ three-digit suffix

AHR000 “000”Generalist/ MultidisciplineAHR010 Compensation and Benefits Generalist

/ Multidiscipline

Career Band/Career Levels/Global Grades

M Management/M1-M5/GG10-17

P Professional/P1-P6/GG8-17

S Customer/Client Management and

Sales/S1-S6/GG 8-17T Technical Support/T1-T4/GG5-10

U Business Support/U1-U4/GG4-9

W Production/Manual Labor/

W1-W4/GG 2-7

Willis Towers Watson Job Codes


How to use Market Data

Base Salary

#Company #FTE Median

11 225 7,000 97,000

P3-11 175 4,250 99,000

AHR-P3-11 50 175 96,500

AHR000-P3-11 40 100 93,000


General Industry

Compensation Survey

Results


Demographics


33%67%

62 : 38

Management Individual

Contributor

69 : 31

<20

50-59

20-29

30-39

40-49

Demographic Information

Distribution of Grades


4%

21%

47%

27%

0%

0% 10% 20% 30% 40% 50%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Base Salary / Target Total Compensation Markets


Annual Base Salary

2014 – 2015 – 2016


02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

2014 2015 2016

Av.

Progression

btw Grades

Market

Movement

2015 29% 7,7%

2016 29% 8,1%

Target Total Compensation

2014 – 2015 – 2016


02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

2014 2015 2016

Av.

Progression

btw Grades

Market

Movement

2015 30% 6,9%

2016 30% 9,5%

Annual Base Salary Markets

2015 – 2016


2015 2016

31% 29% 37%

Target Total Compensation Markets

2015 – 2016


2015 2016

34% 28% 34%

Segmented Salary Policy


Segmented Salary Policy

Variable Pay

Base Salary

Market Position

Management (M)

Professionals (P)

Sales (S)


Managers are paid higher at the same grade

Management (M)

Professionals (P)

Sales (S)

Base SalaryTarget Total

Cash

Actual Total

Cash


+2% +3% +1%

-3% -8% -6%

-21% -6% 0%

Salary Band Spread in Career Bands


P-16% +15%

S-18% +22%

+38%-13%

M-17% +16%

EX

P

M

S

Career Path

Proffessionals / Managers / Executives


P1-08 P1-09 P2-10 P3-11 M2-12 M2-13 M3-14 M3-15 EX-16 EX-17 EX-18

27%

37%

New Grad. vs CEO

ABS : X15

TTC : X17

Function Based Analyses



Individual Contributors


-25% -20% -15% -10% -5% 0% 5% 10% 15%

Direct Sales

Account/Relationship Management

Accounting

Supply Chain and Logistics

Manufacturing/Operations

Financial Analysis and Tax

Human Resources

Engineering

Corporate Affairs/Communications

Marketing

Strategic Planning/Corporate Development

IT Development

Base Salary Target Total Cash


Managers


-20% -15% -10% -5% 0% 5% 10% 15% 20% 25%

Direct Sales



Account/Relationship Management

Accounting

Human Resources

Engineering

Marketing


Corporate Affairs/Communications

Finance

IT Development



Executives


-10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

Engineering

Marketing


Human Resources

Finance

Sales, Marketing and Business Development



Sales

Information Technology


Variable Pay Markets


Management Career Band - 2016

Target vs Actual Variable Pay


0%

20%

40%

60%

80%

100%

120%

0%

5%

10%

15%

20%

25%

30%

M1-10 M1-11 M2-12 M2-13 M3-14 M3-15 M4-16

Target Total Variable Pay % of Base Salary Actual Total Variable Pay % of Base Salary Eligible for Performance Bonus


Professsional Career Band - 2016


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

5%

10%

15%

20%

25%

P1-08 P1-09 P2-10 P3-11 P3-12 P4-13 P4-14 P5-15

Target Total Variable Pay % of Base Salary Actual Total Variable Pay % of Base Salary Eligible for Performance Bonus


Sales Career Band - 2016


0%

10%

20%

30%

40%

50%

60%

70%

S1-08 S1-09 S2-10 S3-11 S3-12 S4-13 S4-14 S5-15

Target Total Variable Pay % of Base Salary Actual Total Variable Pay % of Base Salary

Benefits


Benefits

Lunch TicketsDaily btw. 15 TRY - 21 TRY

Health Insurance• ChronicDisease– 81%

• Ameliyat - %100

• Ayakta Tedavi – 100%

• Maternity – 81%

• Dental Care – 38%

• Vision – 44%

84%

Private PensionDefined Contribution Plan

%5 or less

26%18Life InsuranceDeath-in-Service X 2 times

base salary

Accidental Death X 4 times

57%

54% 6% 57%

Management Career Band

1) VW PASSAT 1.6

2) AUDI A4 2.0

3) VW JETTA 1.6

Proffessioanl Career Band

1) VW JETTA 1.6

2) RENAULT FLUENCE 1.5

3) FORD FOCUS 1.6

Sales Career Band

1) VW GOLF 1.6

2) RENAULT FLUENCE 1.5

3) FIAT LINEA 1.8

General Industry

Company Car


CompSource Online

Database


Compsourcehttp://compsource.towerswatson.com

CompSource Database Features

CompSource – Features

Advanced Report

Analytical features additional to the

features of the standard report

Unlimited number of peer group analyses

Market comparison

Comparison by countries

Comparison by years

Customized reports (percintile – breaks)

Standard Report

Detailed compensation and benefits

report

Viewing policies and practices in detail

Ready for presentation reporting

Export data

Age the data

Change the currency

Complimentary Services

1 to 1 meetings with local experts and regional / global client support

Job matching

EMEA Salary Budget Planning Report

Feedback Meetings


CompSource

Compensation Tables


CompSource

Compensation Tables – Career Level


CompSource

Compensation Tables – Global Grade


CompSource

Compensation Tables – Function / Discipline


Creating Peer GroupsAdvanced Version


Profile Combinations

Advanced Version


Data Export – Standard VersionExcel


Data Export – Advanced Version: Market ComparisonExcel


Benefit Practices & HR Policies


Thank you


willis towers watson data services - mail.ccift.com general industry... · agenda about willis...

Documents