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welcome to brighter
Mercer | Comptryx
U.S. Virtual Conference
December 2nd, 2020
2
Colleen Resca
3
Agenda
1. Introduction/Welcome (Roger Sturtevant / Colleen Resca)
2. Mercer SSO: Login changes & client federation
3. Mercer | Comptryx: Hot Jobs & Market Trends
Europe (Patrick Gutmann), U.S. (Roger Sturtevant)
4. Pay for Distributed Work (Tauseef Rahman)
How the pandemic has altered pay practices for remote work
5. Product Roadmap with Your Input: Interactive (Michael Anderson)
6. Trend Analysis Feature in Comptryx: Tips & Trends (Nivasen Govender)
7. D&I Reporting: Gender, Age & U.S. Ethnicity Benchmarking (Ashley Blackman)
8. Q&A and Wrap-Up
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 4
Mercer SSO (Single Sign On)
Mercer | Comptryx
• SSO represents a secure way of accessing Mercer Products
• Comptryx was added to Mercer SSO in late October
• It is important to use the direct Comptryx URL … https://comptryx.mercer.com
• With your Mercer SSO account you can log into Comptryx and other subscribed products
• If you would like to have your company “Federated” with Mercer SSO (log directly to
Mercer with your company’s credentials), please contact us at mc_support@mercer.com
5
6
Patrick Gutmann
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 7
89%
71%
50%
45%
41%
38%
38%
37%
36%
34%
Cloud Services -Operations
User Interface Design
Scrum ProjectManagement
Release Engineering
DocumentationManagement
Software Engineering -Apps
Data Scientist
Information SystemsSecurity
Cloud Engineering
Human FactorsEngineering
New Hire Rate / EngineeringProfessionals
47%
41%
34%
34%
33%
31%
30%
28%
28%
27%
Lisbon
Madrid
Cambridge
Stockholm
London
Dublin
Prague
Budapest
Warsaw
Milan
New Hire Rate / R&D Professionals
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 8
2.6
%
2.8
%
3.1
%
3.1
%
3.0
%
3.1
%
3.4
%
3.2
%
3.2
%
3.4
%
3.8
%
7.6
%
2.2
%
2.4
%
2.5
%
2.4
%
2.5
%
2.5
%
2.8
%
2.7
%
2.8
%
2.9
%
3.4
%
5.4
%
2.6
%
2.7
%
2.7
%
2.8
%
2.8
%
2.8
%
3.0
%
3.0
%
3.1
%
3.1
%
3.7
%
7.9
%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Port
ug
al
Denm
ark
Ita
ly
Fra
nce
Spain
Sw
ed
en
Germ
any
Ne
therl
and
s
Irela
nd
Unite
d K
ing
do
m
Pola
nd
Ukra
ine
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 9
2.6
%
2.7
%
2.7
%
2.8
%
2.8
%
2.8
%
3.0
%
3.0
%
3.1
%
3.1
% 3.7
%
3.3%
3.7%
3.2%
3.8% 3.9%3.7%
4.0%
3.4%
3.7%3.9%
4.4%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
Port
ug
al
Denm
ark
Ita
ly
Fra
nce
Spain
Sw
ed
en
Germ
any
Neth
erl
and
s
Irela
nd
Unite
d K
ing
do
m
Pola
nd
General Tech market Hardware Internet /Ecommerce Software
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 10
Industries have a different approach on compensationDublin, Non Sales Roles P3, EUR
Mercer | Comptryx 2019
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 11
69,70061,900
77,60085,300
67,200
103,600
Software/SaaS Overall Internet/E-Commerce
Non Sales Jobs Software Function
Segmentation of pay by industryDublin, Non Sales Roles vs Software Function, P3, EUR, Total Direct Pay
Mercer | Comptryx 2019
∆ 9%∆ 22% ∆ 34%
25%
54%
Segmentation of pay
by function within
Industry
Differences in levels of
pay between Industries
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 12
35,400
36,00037,900
76,10078,600 77,800
66,90070,100 68,800
32,600
38,200 39,600
42,500
47,600
58,700
62,90065,300
68,60072,500
75,300
20,000
40,000
60,000
80,000
2018
2019
2020
Germany: 2%
Increase from 2018 to 2020
UK: 10%
Netherlands: 3%
Sweden: 11%
Portugal: 12%
Poland: 21%
Czech: 7%
*Total Direct Compensation, Comp weighted
average, EUR
13
Roger Sturtevant
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 14
*Pay Premium of New Hire
Total Direct Comp /
Tenured EE TDC
Professional Level
Employee Hiring
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 15
*Pay Premium of New Hire
Base Salary / Tenured EE Base
Professional Level
Employee Hiring
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 16
Hiring Rates by Core Function by U.S. Location
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 17
Voluntary Turnover Rates by Core Function by U.S. Location
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 18
Hot Jobs– Software Engineering vs. AI / Machine Learning18
AI/ML pays higher (TDC)
than generic SW
Engineering and at the
90th percentile even the
P2-AI level pays more
than the P5-SW!
Definitely a hot job!
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
50th 60th 75th 90th
Software Engineering vs. AI / Machine Learning Engr (by Level)
Total Direct Comp 50th to 90th P'cile
P5-SW
P4-SW
P3-SW
P2-SW
P5-AI
P4-AI
P3-AI
P2-AI
19
Tauseef Rahman
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 20
The evolution of flexibility
pre-COVID future
Treated as a benefit
• ‘We work better together” culture or
locations where ‘face time’ is a cultural
norm
• Office is a space for both individual and
collaborative work
• Companies may allow work from home
with no support
• Work environment is catered to an on-site
• Culture where employees expect to flex
where they work
• Office is a space for collaboration (rather
than individual work)
• Company provides resources and benefits to
support remote work
• Work environment is adapted for a
blended model
No policy / manage
by exception
Part of company
culture and employee
mindset
Deter Accommodate Promote
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 21
The future of flexible working
Amir, engineer“I collaborate with my
team a few days a week
at the office, but otherwise
work from home!”
James, technician“I work 40 hours a week,
but vary the days and
times I work to meet the
needs of my family.”
Liz, accountant“I work 60 hours per week
during busy seasons, but
scale back to 30 hours per
week the rest of the year.”
Darnell, nurse
manager“I share my case load with
another manager, and work
a reduced schedule to meet
my personal needs.”
Hannah, designer“I work on demand on
projects that fit my interests
across multiple employers.
I’m my own boss!”
wherelocation & infrastructure
whenhours and scheduling
howscaling, technology
whatjob content and sharing
whoalt. workforce, automation
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 22
Three critical questions to drive flexibility at scale
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 23
Driving sustainable execution
em
plo
yee e
xp
eri
en
ce
foundational enablers: establish the building blocks
people programs: evolve for a new way of working
Infrastructure: resources to drive successful execution
policy and
governancecommunication
and change
analytics and
measurement
culture
and trust
performance
and careerstalent
acquisition
health and
well-beingdiversity and
inclusion
EVP and total
rewards
leadership /
training
onboarding
real estate
and space
remote
workplace
setup
virtual
collaboration
technology
Social
connectedness
compensation and
reimbursements
24
Will pay cuts persist related to flexible working?
VM Ware Cuts Pay for Remote
Workers Fleeing Silicon Valley
Bloomberg
Facebook employees could receive
pay cuts as they continue to work
from home USA Today
Silicon Valley Pay Cuts Ignite
Tech-Industry Covid-19
Tensions Wall Street Journal
Stripe Workers Who Relocate
Get $20,000 Bonus and a Pay Cut
Bloomberg
Will organizations make pay cuts for
workers who relocate?
3%
8%
54%
35%
Yes, employees will
receive a pay cut
Maybe, if pay is well
above market
No pay cuts for remote
workers
Yet to be determined
6%
23%
29%
42%
General
IndustryHigh
Tech
Source: Mercer US COVID Pulse Survey, General
Industry (n= 305), High Tech (n=31)
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 25
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 26
What will happen to compensation with more flexible working?Statistical analysis of Comptryx shows tech tends to pay different to all industries even when it comes to geographic differentials
-13%
-4%
-11%-10%
-16%
-21% -21%
-10%
-18%
-21%
-6%-7%
-9%
-11% -11% -11%
-14% -15%
-18%
-23%-25%
-20%
-15%
-10%
-5%
0%
Seattle New York Los Angeles Washington Chicago Portland Atlanta Boston Dallas Austin
Geographic Pay Differentials Relative to Silicon Valley
All Industry Geo Diff (ERI) Tech Geo Diff (Comptryx Analysis)
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 27
Determining a path forward
33%
12%
5%
11%
38%
23%
19%
6%
6%
45%
All Industries High Tech
Pay at the market rate
of the office location
Pay at the market rate
of the home location
Pay at a national rate
Pay at the defined labor
market for the role
Yet to be determined
What are you paying for today, and
how should that evolve?Cost of labor, Cost of living, skills
What is the labor market for your roles,
and how is it shifting with flex
working? Local, regional, national
How will you transition to align with
the new labor market?Will pay cuts happen – and if so, when,
how and what is adjusted?
How are companies handling localization of
pay for employees who work remotely?
Source: Mercer US COVID Pulse Survey, General Industry (n= 305), High Tech (n=31)
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 28
29
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 30
Comptryx Roadmap Feedback
Simplify Data Input
Mercer Data Connector
Show my Organization
ILM (Internal Labor Map) with external benchmarks
Surface Diversity Insights
DEI Dashboard to highlight key
diversity insights about my
organization vs peers
Custom Exec Reports
Enable me to build customized
reporting & dashboards that I can use
for executive reporting
Integrate Comptryx to our
Systems (HRIS, etc)
Give me fresh and automated insights
into my organizational metrics (with
benchmarks)
Total Rewards
Benchmarks
Add detail for benefits costs
(Health, Wealth) so that I can
better optimize my total rewards
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 31
Mercer Data Connector
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 32
Mercer Internal Labor MapGender Focused View
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 33
Gender Equity – External Labor Marketmale vs. female (hiring, promo, term)
33
Source: Mercer | Comptryx
• Females exceed males on these 3 metrics for the U.S. and each location
• NY Tri-State metro has the highest female hiring (32.6%), but also the highest turnover (12.9%)
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 34
35
Nivasen Govender
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 36
Outline
What is the Trend Analysis Functionality
Value of Trend Analysis
Demo of Trend Analysis Feature
Insights Derived from the System
Mercer | Comptryx
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 37
What is the Trend Analysis Functionality
Mercer | Comptryx
• A tool within the Mercer | Comptryx system that allows users to view year over year
trends
• Trends in Pay (base salary, total cash etc.) & Workforce Metrics (turnover, hiring,
promotion rates etc.)
• Analysis of trends in pay/metrics for the Market & Your Own Data – if data submitted
consistently for at least 2 years
• Ability to trend historical data over a 2 to 5 year time span & drill down into specific
categories (location, function, level, gender, age etc.)
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 38
Value of Trend Analysis
A C T U A L PAY
G R O W T H O V E R T I M E
Pay Trends
H I R I N G / T U R N O V E R
C H A N G E S B Y J O B /
L O C AT I O N
Workforce Churn
A R E I N I T I AT I V E S
T U R N I N G I N T O
R E A L I T Y ?
Diversity
P O P U L AT I O N A N D
PAY R O L L S H I F T S
Transformation
Mercer | Comptryx
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 39
Demo of Trend Analysis Feature
METRICS IN TREND% Population
% Payroll
Pay (Base, Tot Cash,
Bonus, LTI, Total Direct)
Hiring Rates
Turnover
% Female
Gender Wage Gap
Age/Age Groups
Tenure/Tenure Categories
Promotion Rates/Amounts
% Top Performer
Pay Leverage Calcs
TRENDING OF PAY AND WORKFORCE ANALYTICS
Mercer | Comptryx
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 40
METHODOLOGY
• Your data* and market data
• Market Views include all
Comptryx, standard market
views, and peers
• Can choose “same company” or
“all companies” for each trend
increment
• Trending from two to five years
• Choose the metric to analyze
• Market data is updated
quarterly, your data with each
annual submission
* Your data dependent on frequency and timing of input
Mercer | Comptryx
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 41
METRICS TO TREND
Mercer | Comptryx
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 42
PAY ELEMENTS TO TREND
Mercer | Comptryx
Companies in pay trending are a subset
of the global pay module and will not
align with those values
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 43
Mercer | Comptryx
ADDING CATEGORIES FOR COMPARISON
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 44
Mercer | Comptryx
UP TO 11 VALUES WITHIN A CATEGORY CAN BE ADDED
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 45
Mercer | Comptryx
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 46
CHARTING
• Your Data
• Market Data
• Your Data & Market
• Vertical or Horizontal
Mercer | Comptryx
CHARTING OPTIONS
FOR “YOU” &
“MARKET”
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 47
Mercer | Comptryx
Insights- Population Growth by Function, in the US, Across Levels
Growth within R&D
Decline and levelling out across ServicesIncreases in roles related to Software and Hardware
Engineering
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 48
Mercer | Comptryx
Insights- % Female & Wage Gap by Location
Tri State Metro only one to show growth when compared to
5 years ago.
At this typically most populated level, all locations have closed
the wage gap, with the most noticeable impact occurring in the
Tri State Metro
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 49
Mercer | Comptryx
Insights- Promotions as a % of Base by Gender (US, All Prof)
The data shows that women's promotion amounts as a % of base
have been slightly exceeding that of their male counterparts,
which could also be contributing to decreased wage gaps that we
saw in the previous slide.
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 50
Mercer | Comptryx
Insights- LTI Total by Level & Location (US, within R&D)
Sharp spike in Seattle, but beginning to trend down
Increases in Silicon Valley and the Tri State
Vast difference in total LTI between the two levels
Strong continuing upward trends – Seattle, Silicon Valley, Tri State
51
Ashley Blackman
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 52
But how do you identify
wider trends?Mercer | Comptryx
Platform
Gain insights into
workforce patterns
You know your
workforce
Get to know your workforce
D&I
Are you meeting your
diversity initiatives?
Compensation Metrics
Are you promoting
talent equitably?
Equity
Are you compensating equally
across genders?
Benchmark to
your competitors
Copyright 2020 Mercer LLC. All rights reserved. 52
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 53
Set achievablediversity targets
See where there is
work to do
Scan workforce Scan industry
Use benchmarks to
set targets
Meet pay equity requirements &
create realistic diversity goals
Legislation calls
for transparency
You need to see
the full picture
53
Gender ● U.S. Ethnicity
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 54
Use market industry benchmarks to establish diversity targetsGender
Analyze by: Standard Data Table Dynamic Data Visuals
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 55
% Female by Level Gender Metric Analysis
Use market industry benchmarks to establish diversity targetsGender
% Female
For each displayed category within the selected
population the percentage indicates the percentage of
female employees in the population.
Wage Gap (Base, STI, Total Cash, LTI, Total Direct Comp)
Calculated as the employee average pay of women
divided by the average of men. The wage gap will vary
with the "Pay Element" selected in the "Global
Parameters" in the upper left of the web tool.
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 56
Gender
56
Use market industry benchmarks to establish diversity targets
Boston, USA - P3 Level by Function
% Female - Software Engineers by Country
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 57
U.S. Ethnicity
57
Use market industry benchmarks to establish diversity targets
Hiring RateBlack turnover 39% greater than white.
Second only to Two/+ Races, at 54%Black hiring rate 72% greater than white.
Second only to Two/+ Races, at 88%Turnover Rate (Vol)
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 58
U.S. Ethnicity
58
Use market industry benchmarks to establish diversity targets
% Top Performer % Promoted Black/African American has the lowest
promotion rates of any ethnicity category
Black ee's receive top performer rating
at half the rate of White, Asian
Copyright © 2020 Mercer (UK) Inc. All rights reserved. 59
Age Benchmarks
59
Use market industry benchmarks to establish diversity targets
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