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2016
GLOBAL PAY SUMMARY
H E A LT H W E A LT H C A R E E R
ESTONIA
SAMPLE
© 2016 Mercer LLC. 2 Global Pay Summary—Estonia
PUBLICATIONS DIRECTORSamantha Polovina
CREATIVE DIRECTORStefani Baldwin
PRODUCT MANAGERChrisy Wilson
PRODUCTION MANAGERSumit Bajaj
PROJECT MANAGERRahi Sardana
ANALYSTSDeepak GaurDevi VDivya MRishi KumarSunil KaushalVinay PathaniaVishal Singla
WRITERSAashi ChoudharyVirginia McMorrow
COPYEDITORShubham Bhatnagar
DESIGNERSAshish MathewVishal Kapoor
PUBLISHED BY: MERCER 1166 Avenue of the Americas, New York, New York 10036, United States
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Copyright © 2016. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.
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In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Learn about our extensive product lineup at www.imercer.com/global.
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© 2016 Mercer LLC. 3 Global Pay Summary—Estonia
DATA MINING & INSIGHTSIn today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.
Compensation Handbook
Global Car Policies
Global Compensation
Planning Report
Global Diversity and Inclusions
Handbook
Global Mobility Handbook
Global Pay Summary
HR Atlas Asia Pacific
HR Management Terms
Short-Term Incentives around
the World
International Geographic Salary
Differentials
Total Employment Costs around
the World
Worldwide Benefit & Employment
Guidelines
H E A LT H W E A LT H C A R E E R
I N T E R N A T I O N A L L I V I N G W A G E R E P O R T 2015
International Living Wage
Report
Talent All Access Portal
Subscription Services
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© 2016 Mercer LLC. 4 Global Pay Summary—Estonia
TABLE OF CONTENTS
CORRESPONDENCE 2DATA MINING & INSIGHTS 3TABLE OF CONTENTS 4INTRODUCTION 5SEVEN QUESTIONS ABOUT COMPENSATION 6
COUNTRY BENCHMARK POSITIONS 9
Estonia 10
ABOUT THIS REPORT 16Methodology 16
Glossary 20
ABOUT MERCER 25 SAMPLE
© 2016 Mercer LLC. 5 Global Pay Summary—Estonia
INTRODUCTIONREPORT STRUCTUREThe 2016 Global Pay Summary report provides actionable salary information to formulate salary policies according to current practices across major world markets. Designed as a quick reference guide for human resources professionals, it offers data on annual base salary (ABS) and annual total cash compensation (ATC) for 50 benchmark positions across 11 job families, covering the spectrum from para-professionals to top management.
This report has four main sections:• The Summary of key findings highlights the key trends in inter- and intra-regional pay levels, using multiple comparisons, and
analysing salary differences by region, job function, and development level of development of a country. The insights into highest- and lowest-paying countries help companies understand the cost-effective locations within a region. This section also provides a list of hot jobs in a particular market.
• The Overview of benchmark positions section provides ABS and ATC data for a particular job across different locations. This information helps human resources professionals understand and compare pay scales for different positions and job functions, and supports informed decision-making without having to sort through voluminous survey data or complex databases.
• The Country benchmark positions section provides a snapshot of salary information for 50 benchmark jobs within a country. It exhibits vertical comparisons across different functions and career levels.
• The About this report section includes the methodology used in the report and lists key definitions, exchange rates, and data sources.
The job functions covered in the report are:
• Top management.• Legal.• Human resources.• Finance.• Administration.• Information technology.
• Sales and marketing.• Research and development.• Engineering.• Operations.• Supply and logistics.
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© 2016 Mercer LLC. 6 Global Pay Summary—Estonia
SEVEN QUESTIONS ABOUT COMPENSATIONQ. Why use benchmark jobs?
A. There are five key reasons to use benchmark jobs in compensation planning:
• Commonly found and defined, they allow pay comparisons within the organisation or to comparable jobs outside the organisation.
• Specific and realistic job specifications relate to what, why, and how work is done on a specific job. • As positions rarely match exactly, employers must decide whether a premium or discount is appropriate for the particular job
position based on survey data, thereby ensuring competitive pay. • Benchmark jobs help create career ladders, supporting the company’s motivation and retention of valuable talent. • They provide samples of various levels in most job functions, so employers have an overall picture of their organisation and pay
levels.
Q. Why is base salary important?
A. Base salary plays a key role in compensation planning and strategy for these reasons:
• Base salary is a core component of a total rewards package. • It is often the cornerstone of that reward package and the starting point for calculating other components of the package. • Employees view base salary as the most important element of “the deal” between the employee and employer. • The way in which salary is set and progressed can have a significant impact on whether an employee engages positively in work. • It is critical that base pay be “right,” which means it should be internally equitable and externally competitive. If base pay is not
“right,” it may distract employees from the task in hand.
Q. What is the difference between annual base salary and annual total cash compensation?
A. The two terms are defined as follows:
• Annual base salary (ABS) is monthly salary multiplied by the number of months (per company policy) used for computing annual compensation. Gross ABS includes salary sacrificed items but excludes any cash allowances, superannuation, and benefits.
• Annual total cash compensation (ATC) represents ABS, plus nonvariable remuneration and short-term incentives (STIs), which include, for example, bonus, sales commission, and profit sharing, but exclude share options.
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© 2016 Mercer LLC. 7 Global Pay Summary—Estonia
SEVEN QUESTIONS ABOUT COMPENSATION
Q. What are the key steps in the annual compensation planning process?
A. Most administrators follow this general planning process every year:
• Update job descriptions, if necessary. • Determine market comparators (peers by industry, region, headcount size, and so on). • Collect market salary data. • Match benchmark jobs to market salary data. • Set measurement standards to determine status against desired position. • Conduct measurement of:
— Internal equity (review for potential problem areas). — External competitiveness (review for underpayment or overpayment). — Alignment of pay and performance (consider whether the plan is workable). — Alignment with business and strategic goals (determine whether the plan helps employees achieve overall organisational goals).
• Formulate recommendations to adjust salary levels overall, for specific pay levels and/or job functions, and so on. • Obtain management approval of recommendations. • Implement the compensation plan. • Communicate the plan to employees.
Q. What factors affect compensation levels?
A. Among the many factors that have an impact on pay in different countries, the following are key:
• Talent supply and demand. • The competitive market. • The company’s desired pay position in the market. • The compensation mix of base salary and incentives. • The alignment of pay with the company’s business goals, mission, and cultural values. • Professional development programmes. • Mandatory minimum salaries. • Cost of living. • Standard of living.
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© 2016 Mercer LLC. 8 Global Pay Summary—Estonia
Q. What factors influence a company’s compensation strategy?
A. Both internal and external factors have an impact on compensation strategy. Internal factors include the following points:
• Business strategy may emphasise some job functions over others, such as sales positions. • Current pay programmes determine levels and components of the pay package. • Incumbent expectations and perceptions can affect their productivity. • Organisational ownership, structure, and financial constraints may limit pay budgets.
SEVEN QUESTIONS ABOUT COMPENSATION
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© 2016 Mercer LLC. 9 Global Pay Summary—Estonia
COUNTRY BENCHMARK POSITIONSSAMPLE
© 2016 Mercer LLC. 10 Global Pay Summary—Estonia
COUNTRY BENCHMARK POSITIONS
ESTONIAANNUAL COMPENSATION IN LOCAL CURRENCY, 2015
JOBS PC RANGE
LOW MEDIAN HIGH LOW MEDIAN HIGH
Top management
Head of organisation – Tier 3 59–66 69,856 71,900 96,893 74,372 81,850 108,147
Legal
Legal counsel – Experienced 50–54 19,776 21,600 24,000 19,961 22,800 26,287
Human resources
Head of human resources – Tier 3 58–61 – 54,186 – – 65,227 –
Human resources manager 52–59 26,813 34,800 39,541 30,392 37,971 44,962
Compensation and benefits manager – – – – – – –
Labour safety engineer – Experienced 47–48 – 18,000 – – 18,750 –
Human resources administration clerk – Experienced – – – – – – –
Finance
Head of finance and accounting – Tier 3 56–61 43,475 60,480 65,226 49,129 65,520 82,512
Credit and collections supervisor – – – – – – –
Credit and collections clerk – Experienced 45–45 – 14,880 – – 15,396 –
Accounting manager 53–55 35,112 36,000 40,044 40,278 40,793 43,469
Accountant – Experienced 46–49 13,200 14,400 14,880 13,715 14,630 15,496
Accounting clerk – Experienced – – – – – – –
Audit manager – – – – – – –
Administration
Executive secretary – Senior 47–50 13,152 14,400 15,804 13,520 14,400 15,996
Secretary – Experienced 42–45 10,800 11,160 12,228 10,800 11,160 12,228
Office administration manager 51–55 17,520 18,000 31,410 17,520 18,000 34,035
Security guard – Experienced – – – – – – –
ANNUAL BASE SALARY ANNUAL TOTAL CASH COMPENSATION
Note: The figures under the annual total cash compensation section include the actual amounts of the awards received over last 12 months.
USD1 = EUR0.89Exchange rate effective Nov-6-15.
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© 2016 Mercer LLC. 11 Global Pay Summary—Estonia
JOBS PC RANGE
LOW MEDIAN HIGH LOW MEDIAN HIGH
Information technology
Head of information technology – Tier 3 – – – – – – –
Systems development manager – – – – – – –
Systems analyst – Experienced 47–48 22,800 24,000 26,177 23,249 24,283 27,407
Systems programmer – Experienced – – – – – – –
Web applications developer – Experienced – – – – – – –
Computer operator – Experienced – – – – – – –
Sales and marketing
Head of sales and marketing – Tier 3 – – – – – – –
Head of marketing – Tier 3 – – – – – – –
Marketing manager 52–57 27,600 30,600 32,443 29,683 30,600 33,897
Market research analyst – Experienced – – – – – – –
Product/brand marketing professional – Senior 49–53 18,981 19,740 21,000 19,832 21,348 22,696
Sales manager 52–57 30,588 38,400 41,054 33,351 41,958 46,818
Sales manager – Regional 52–56 25,046 27,180 33,600 26,580 31,451 37,479
Sales representative – Experienced 45–50 8,400 11,952 12,768 13,652 14,481 15,743
Customer service manager 51–57 26,100 27,900 32,910 26,375 30,900 33,691
Customer service representative – Experienced 44–45 10,200 10,800 11,400 11,196 11,804 12,574
Research and development
Research and development manager 53–57 27,742 38,880 44,111 27,742 42,036 45,080
Research and development engineer – Experienced 48–53 21,061 25,224 27,661 21,551 25,224 27,916
ANNUAL BASE SALARY ANNUAL TOTAL CASH COMPENSATION
Note: The figures under the annual total cash compensation section include the actual amounts of the awards received over last 12 months.
COUNTRY BENCHMARK POSITIONS
ANNUAL COMPENSATION IN LOCAL CURRENCY, 2015, CONTINUEDESTONIA
USD1 = EUR0.89Exchange rate effective Nov-6-15.
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© 2016 Mercer LLC. 12 Global Pay Summary—Estonia
JOBS PC RANGE
LOW MEDIAN HIGH LOW MEDIAN HIGH
Engineering
Environmental health and safety manager 51–55 – 25,712 – – 28,396 –
Technical service manager 52–56 27,978 28,800 32,990 30,305 32,160 36,589
Technical service technician – Experienced 44–46 13,414 15,765 17,819 13,414 16,416 18,725
Process engineer – Experienced 47–53 – 19,920 – – 20,916 –
Operations
Head of plant – – – – – – –
Head of production – – – – – – –
Production supervisor 48–50 18,000 18,600 19,780 18,762 20,460 21,165
Production worker – Experienced 42–42 6,713 7,721 8,101 6,713 8,286 9,513
Head of quality – Tier 3 – – – – – – –
Repair and maintenance engineering manager 53–56 – 31,200 – – 33,083 –
Supply and logistics
Head of supply chain – Tier 3 – – – – – – –
Head of purchasing – – – – – – –
Traffic and distribution coordinator – Entry – – – – – – –
Warehouse – Team leader 47–48 14,999 17,412 18,087 17,983 18,614 20,202
ANNUAL BASE SALARY ANNUAL TOTAL CASH COMPENSATION
Note: The figures under the annual total cash compensation section include the actual amounts of the awards received over last 12 months.
COUNTRY BENCHMARK POSITIONS
ANNUAL COMPENSATION IN LOCAL CURRENCY, 2015, CONTINUEDESTONIA
USD1 = EUR0.89Exchange rate effective Nov-6-15.
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© 2016 Mercer LLC. 13 Global Pay Summary—Estonia
ANNUAL COMPENSATION IN USD, 2015
COUNTRY BENCHMARK POSITIONS
JOBS PC RANGE
LOW MEDIAN HIGH LOW MEDIAN HIGH
Top management
Head of organisation – Tier 3 59–66 78,445 80,740 108,806 83,516 91,914 121,444
Legal
Legal counsel – Experienced 50–54 22,207 24,256 26,951 22,415 25,603 29,519
Human resources
Head of human resources – Tier 3 58–61 – 60,848 – – 73,247 –
Human resources manager 52–59 30,110 39,079 44,403 34,129 42,640 50,490
Compensation and benefits manager – – – – – – –
Labour safety engineer – Experienced 47–48 – 20,213 – – 21,055 –
Human resources administration clerk – Experienced – – – – – – –
Finance
Head of finance and accounting – Tier 3 56–61 48,820 67,916 73,246 55,170 73,576 92,657
Credit and collections supervisor – – – – – – –
Credit and collections clerk – Experienced 45–45 – 16,710 – – 17,289 –
Accounting manager 53–55 39,429 40,426 44,967 45,230 45,809 48,814
Accountant – Experienced 46–49 14,823 16,171 16,710 15,401 16,429 17,401
Accounting clerk – Experienced – – – – – – –
Audit manager – – – – – – –
Administration
Executive secretary – Senior 47–50 14,769 16,171 17,747 15,182 16,171 17,963
Secretary – Experienced 42–45 12,128 12,532 13,731 12,128 12,532 13,731
Office administration manager 51–55 19,674 20,213 35,272 19,674 20,213 38,220
Security guard – Experienced – – – – – – –
ANNUAL BASE SALARY ANNUAL TOTAL CASH COMPENSATION
Note: The figures under the annual total cash compensation section include the actual amounts of the awards received over last 12 months.
ESTONIA
USD1 = EUR0.89Exchange rate effective Nov-6-15.
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© 2016 Mercer LLC. 14 Global Pay Summary—Estonia
ANNUAL COMPENSATION IN USD, 2015, CONTINUED
COUNTRY BENCHMARK POSITIONS
JOBS PC RANGE
LOW MEDIAN HIGH LOW MEDIAN HIGH
Information technology
Head of information technology – Tier 3 – – – – – – –
Systems development manager – – – – – – –
Systems analyst – Experienced 47–48 25,603 26,951 29,396 26,108 27,269 30,777
Systems programmer – Experienced – – – – – – –
Web applications developer – Experienced – – – – – – –
Computer operator – Experienced – – – – – – –
Sales and marketing
Head of sales and marketing – Tier 3 – – – – – – –
Head of marketing – Tier 3 – – – – – – –
Marketing manager 52–57 30,993 34,362 36,432 33,333 34,362 38,065
Market research analyst – Experienced – – – – – – –
Product/brand marketing professional – Senior 49–53 21,315 22,167 23,582 22,270 23,973 25,487
Sales manager 52–57 34,349 43,121 46,102 37,452 47,117 52,574
Sales manager – Regional 52–56 28,125 30,522 37,731 29,848 35,318 42,087
Sales representative – Experienced 45–50 9,433 13,422 14,338 15,331 16,261 17,679
Customer service manager 51–57 29,309 31,330 36,956 29,618 34,699 37,833
Customer service representative – Experienced 44–45 11,454 12,128 12,802 12,573 13,255 14,120
Research and development
Research and development manager 53–57 31,153 43,660 49,535 31,153 47,204 50,623
Research and development engineer – Experienced 48–53 23,650 28,325 31,062 24,201 28,325 31,348
ANNUAL BASE SALARY ANNUAL TOTAL CASH COMPENSATION
Note: The figures under the annual total cash compensation section include the actual amounts of the awards received over last 12 months.
ESTONIA
USD1 = EUR0.89Exchange rate effective Nov-6-15.
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© 2016 Mercer LLC. 15 Global Pay Summary—Estonia
ANNUAL COMPENSATION IN USD, 2015, CONTINUED
COUNTRY BENCHMARK POSITIONS
JOBS PC RANGE
LOW MEDIAN HIGH LOW MEDIAN HIGH
Engineering
Environmental health and safety manager 51–55 – 28,873 – – 31,887 –
Technical service manager 52–56 31,418 32,341 37,046 34,031 36,114 41,088
Technical service technician – Experienced 44–46 15,063 17,703 20,010 15,063 18,434 21,027
Process engineer – Experienced 47–53 – 22,369 – – 23,488 –
Operations
Head of plant – – – – – – –
Head of production – – – – – – –
Production supervisor 48–50 20,213 20,887 22,212 21,069 22,976 23,767
Production worker – Experienced 42–42 7,538 8,670 9,097 7,538 9,305 10,683
Head of quality – Tier 3 – – – – – – –
Repair and maintenance engineering manager 53–56 – 35,036 – – 37,151 –
Supply and logistics
Head of supply chain – Tier 3 – – – – – – –
Head of purchasing – – – – – – –
Traffic and distribution coordinator – Entry – – – – – – –
Warehouse – Team leader 47–48 16,843 19,553 20,311 20,194 20,903 22,686
ANNUAL BASE SALARY ANNUAL TOTAL CASH COMPENSATION
Note: The figures under the annual total cash compensation section include the actual amounts of the awards received over last 12 months.
ESTONIA
USD1 = EUR0.89Exchange rate effective Nov-6-15.
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© 2016 Mercer LLC. 16 Global Pay Summary—Estonia
READING THE REPORTThe 2015 Global Pay Summary (GPS) report presents concise information on pay levels for 50 benchmark job positions around the world, representing positions common across multinational companies. The report provides vertical and horizontal analysis of market pay for different job levels in different countries and regions. For example, horizontal comparisons are possible because compensation data for single positions can be compared across countries and regions. Vertical comparisons are possible because the positions represent the range of jobs from top management to junior-level positions. The report also provides the market pay range for a single job position within a country.
This definitive guide will help human resources professionals in their business expansion, talent, and compensation strategies, as well as identify cost-effective locations. The report is based on Mercer’s global consistent methodology of defining pay and positions, and our vast, country-by-country database of compensation data. Pay data within each country matches our core benchmark position structure, using Mercer’s International Position Evaluation (IPE) methodology. The IPE methodology ensures that position levels are consistent and accurately mapped for comparison, regardless of country or industry. This system also helps to map job roles to position classes (PCs) based on the scope of the roles, responsibilities, and company size, thereby supporting an accurate comparison of peers in the market.
Global Pay Summary provides annual base salary (ABS) and annual total cash compensation (ATC) data in local currency and USD, as well as information on annual guaranteed cash (AGC) for selected countries in the case studies.
• ABS is the monthly base salary multiplied by the number of months of pay (based on company policy).• AGC refers to ABS and the annual fixed allowances or any guaranteed cash. • ATC refers to the total ABS in addition to any guaranteed cash and actual annual short-term incentives.
The analysis displays pay data for low, median, and high values of ABS and ATC. Low figures represent the 33rd percentile of observations in Mercer’s pay database, high figures represent the 67th percentile, and median figures represent the median value.
ABOUT THIS REPORTMETHODOLOGY
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© 2016 Mercer LLC. 17 Global Pay Summary—Estonia
EXCEPTIONS AND NOTES• The ABS component includes base salary and allowances for Colombia (Americas), India (APAC), and South Africa (EEMEA). • The data presented for China (APAC), Kazakhstan, Russia, and Ukraine (EEMEA) pertains to major cities in these markets and is
denoted in tables by “Country–Market.”• The head of systems engineering and systems engineer positions are replaced by technical service manager and process engineer
— experienced benchmark jobs in this edition.• In 2015, Wuxi (China) does not include Changzhou, as it did in 2014. Therefore, the data for 2015 might vary compared to 2014.
The range of pay data may appear wide, primarily due to company size variation and the sampling of their pay practices in the database for some positions. The data is based on Mercer’s job evaluation in local markets, with statistics derived from individual country databases of Mercer’s 2015 All Industry Total Remuneration Surveys (TRS). TRS reports provide extensive details on all elements of compensation and benefits.
The salary information for some positions in a few countries might be less than in the previous year for the following reasons:
• The sample of participating companies is different this year, resulting in a change in Mercer’s IPE levels reported in the job titles. This change can be seen in the PC ranges of each job position.
• Increased unemployment rates, uncertain business conditions, and continued slow growth have increased talent availability. This increased talent supply, in turn, has reduced the pressure on employers to increase salaries to attract and retain desirable employees. New hires typically cannot demand, and do not receive, salaries as high as they did a few years ago, causing actual data to decrease for some positions.
• A large talent gap is an indirect reason for lower salaries in some areas. Although employers may promote employees in some positions at a faster rate to cover the talent gap, salaries for these promotions might be lower than previously offered.
ABOUT THIS REPORT
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© 2016 Mercer LLC. 18 Global Pay Summary—Estonia
ABOUT THIS REPORTABOUT THIS REPORT
Note: Year-over-year comparisons of data reported in Global Pay Summary are not recommended due to currency fluctuations.
CURRENCY CONVERSION RATES
Note: Exchange rates in this table are rounded to two significant digits; however, the data presented in the report was prepared using a higher degree of precision.
Estonia EUR 0.89
COUNTRY
CURRENCY CONVERSION RATES, IN USD, AS OF 6 NOVEMBER 2015
Estonia EE: Total Remuneration Survey (May) 56
COUNTRIES SOURCE NO. OF PARTICIPANTS
DATA SOURCES, 2015
CURRENCY USD1=
CODE
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ABOUT THIS REPORT
PC RANGES
JOBS ESTONIA
Top management
Head of organisation – Tier 3 59–66
Legal
Legal counsel – Experienced 50–54
Human resources
Head of human resources – Tier 3 58–61
Human resources manager 52–59
Compensation and benefits manager –
Labour safety engineer – Experienced 47–48
Human resources administration clerk – Experienced –
Finance
Head of finance and accounting – Tier 3 56–61
Credit and collections supervisor –
Credit and collections clerk – Experienced 45–45
Accounting manager 53–55
Accountant – Experienced 46–49
Accounting clerk – Experienced –
Audit manager –
Administration
Executive secretary – Senior 47–50
Secretary – Experienced 42–45
Office administration manager 51–55
Security guard – Experienced –
JOBS ESTONIA
Information technology
Head of information technology – Tier 3 –
Systems development manager –
Systems analyst – Experienced 47–48
Systems programmer – Experienced –
Web applications developer – Experienced –
Computer operator – Experienced –
Sales and marketing
Head of sales and marketing – Tier 3 –
Head of marketing – Tier 3 –
Marketing manager 52–57
Market research analyst – Experienced –
Product/brand marketing professional – Senior 49–53
Sales manager 52–57
Sales manager – Regional 52–56
Sales representative – Experienced 45–50
Customer service manager 51–57
Customer service representative – Experienced 44–45
Research and development
Research and development manager 53–57
Research and development engineer – Experienced 48–53
JOBS ESTONIA
Engineering
Environmental health and safety manager 51–55
Technical service manager 52–56
Technical service technician –
Experienced44–46
Process engineer – Experienced 47–53
Operations
Head of plant –
Head of production –
Production supervisor 48–50
Production worker – Experienced 42–42
Head of quality – Tier 3 –
Repair and maintenance engineering
manager53–56
Supply and logistics
Head of supply chain – Tier 3 –
Head of purchasing –
Traffic and distribution coordinator –
Entry–
Warehouse – Team leader 47–48
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© 2016 Mercer LLC. 20 Global Pay Summary—Estonia
GLOSSARY
COMPENSATION-RELATED DEFINITIONSAnnual base salary (ABS): Monthly base salary multiplied by the number of months per year that salary is paid (according to company policy).
Annual guaranteed cash (AGC): Annual base salary plus guaranteed allowances, which include meal allowance, vehicle allowance, and so on.
Annual total cash compensation (ATC): Annual base salary plus nonvariable remuneration and short term incentives, which include bonus (for example, bonus, sales commission, profit sharing) but exclude share options. The figures reported reflect the actual award amounts received over last 12 months.
Guaranteed cash allowances: Cash allowances that are guaranteed to the employee regardless of their performance. They can be either paid out in cash, as an addition to the base salary or in the form of vouchers or coupons and may significantly vary from country to country. Employees are given cash allowances in order to cover the costs of, for example, meals or transportation.
High: The 67th percentile of observations in Mercer’s salary database.
Low: The 33rd percentile of observations in Mercer’s salary database.
Median: The 50th percentile (median) of observations in Mercer’s salary database.
Position class (PC) range: Benchmark positions are displayed by job title, covering all PCs for a given job. PC is the Mercer level that is created using Mercer’s International Position Evaluation (IPE) system. Typical PCs for different employee levels are:
• Executives: PCs 57–62. • Management: PCs 52–57. • Professional: PCs 47–52. • Para-professional (staff): PCs 42–47.
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© 2016 Mercer LLC. 21 Global Pay Summary—Estonia
GLOSSARY
Short-term incentives: Rewards relating to the performance against selected criteria over a period of one year or less. These include performance-related bonuses, sales bonuses, sales commissions, profit-sharing schemes, other bonuses, and exceptional premiums.
Total Remuneration Surveys (TRS): Mercer conducts the TRS in more than 60 countries. Each TRS includes data for a set of core benchmark positions and, in many markets, industry-specific positions such as consumer goods, pharmaceuticals, and high-technology. Mercer’s TRS allows access to market data for pay and benefits, as well as the ability to generate statistics tailored to an organisation’s needs.
JOB FAMILY DEFINITIONSTop management: This job family works to achieve the company’s operational and financial goals. Employees help to control, direct, and participate in corporate activities through a hierarchy of managers and supervisors. Top managers undertake long-term strategic planning, determine policies, allocate resources, and make decisions on growth and diversification to accomplish corporate goals. Legal: This job family ensures that the company complies with the legal and regulatory requirements of the country(s) where it operates and strives to maintain positive relations with investors and regulatory bodies. Human resources: This job family manages human resources. Activities include developing human resources management strategies and policies to meet business needs; and planning, administering, and reviewing activities concerned with recruitment, training and development, compensation and benefits, and employee relations. In some companies, the activities of this job family may include payroll, employee communications, and health and safety.
Finance: This job family manages financial and accounting operations. Areas of responsibility include preparing, collecting, and interpreting financial information; preparing budgets, reports, forecasts, and statutory returns; conducting financial analyses of proposals, investments, and fund sources; managing taxation; managing cost accounting systems and cash flow; conducting audits; controlling treasury matters; and ensuring compliance with regulatory standards.
Administration: This job family handles a range of diverse administrative or staff functions, which may include finance, human resources, information technology, planning, supply, and other corporate services. Activities also include performing administrative and related support services.
Information technology: This job family acquires, designs, implements, and operates information technology resources, including computer hardware, operating systems, communications, software applications, data processing, and security. Activities include developing information technology strategies, policies, and plans; managing the acquisition, implementation, maintenance, and use of information technology resources; and training and supporting technology users.
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© 2016 Mercer LLC. 22 Global Pay Summary—Estonia
Sales and marketing: This job family oversees sales and marketing activities, including market research, pricing, sales, and merchandising activities; marketing campaigns and promotions; business development activities; customer service; and invoicing, credit, and payment administration.
Research and development: This job family’s operations include formulating research strategies; evaluating the cost and benefits of alternative research opportunities; and undertaking research, design, and development activities to improve the company’s products and services.
Engineering: This job family manages engineering and technical operations, and may involve various branches of the engineering profession — for example, electronic, environmental, mechanical, maintenance, or plant engineering. Activities include designing, constructing, testing, and operating equipment; ensuring that standards of quality, cost, safety, reliability, timeliness, and performance are met in production processes; and interpreting plans, drawings, and specifications.
Operations: This job family is responsible for the production activities of manufacturing companies to optimise resource use, minimise costs, and maintain quality standards. Activities include planning, managing, and reviewing production operations to achieve output and quality objectives; monitoring expenditures and forecasting resource inputs; and operating, monitoring, and maintaining machines and production equipment.
Supply and logistics: This job family manages the supply, storage, and transport and distribution of equipment, materials, and goods used and produced. Activities include materials control and planning, managing supplier relationships, logistics and supply chain management, purchasing, and inventory control.
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© 2016 Mercer LLC. 23 Global Pay Summary—Estonia
MERCER’S INTERNATIONAL POSITION EVALUATION (IPE) SYSTEMMercer surveys around the world are based on the IPE system. As part of the survey process, TRS members receive job-matching tools designed specifically to support this survey, including a set of benchmark evaluations for each survey role. The IPE system is a proven approach to position evaluation used by companies around the world.
IPE relies on evaluating positions, not the employees holding those positions — because the qualifications and performance of incumbents can differ from what positions actually require. Position evaluation is not just a tool for salary comparisons, but is also instrumental in recruiting, career planning, designing corporate structures, and dealing with expatriate compensation and planning.
This tool is a robust, user-friendly job evaluation process that can form the foundation of integrated human resources systems including:
• Rewards.
• Organisation design.
• Talent development.
• Career planning.
• Performance management.
• Mobility.
IPE focuses on four business-related dimensions:
• Impact and contribution to business unit results.
• Communication.
• Innovation.
• Required knowledge.
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© 2016 Mercer LLC. 24 Global Pay Summary—Estonia
Risk is an optional factor that may be used in high-risk industries or professions. Each factor is divided into degrees with individual weightings. The improvements to the system reflect the changes made by many companies to flatten their structure or transition to a network-based or team environment. The result is an easy-to-use system that facilitates position comparisons not only within a company but also across companies and industries.
The system allows accurate comparisons between positions, as job titles alone can be misleading. For example, a finance manager in one company may describe a position that has more operational responsibilities compared to a finance manager in a second company with more strategic responsibilities. In other words, the scope and content of a finance manager’s position could be broad in some companies and limited in others. Using the IPE method can further isolate similar positions and responsibilities.
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© 2016 Mercer LLC. 25 Global Pay Summary—Estonia
Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset – their people. Mercer’s 20,500+ employees are based in more than 40 countries, and we operate in more than 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.
ABOUT MERCER
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For further information, please contact your local Mercer office or visit our website at www.mercer.com
Copyright 2016 Mercer LLC. All rights reserved.
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