Estudio towers watson salary budget planning spain 2011 2012

SPAIN

2011/12 EMEA Salary Budget Planning Report I 1

2011/12 EMEA SALARY BUDGET PLANNING REPORTGENERAL INDUSTRIES SALARY MOVEMENT

This report summarises the findings of Towers Watson’s annual survey on salary movement and review practices as a means of helping companies with their compensation planning for 2012.

The survey was conducted on-line in July/August 2011 amongst companies participating in Towers Watson’s compensation surveys. We received approximately 6,800 sets of responses covering more than 60 countries across the EMEA (Europe, Middle East and Africa) region.

The main sections of this report include actual and projected data for 2011 and 2012 respectively. Details include:

• Summary of key findings • Graphic overview of results • Salary movement in comparison with key economic indicators • Salary movement by employee group for all industries and by specific industry sectors • Salary review status • Allocation of salary budget increase to high performers • List of participants by sector

Notes:

The salary movement figures provide median salary increases awarded or anticipated overall and for each employee group as a percentage of base salary. They include merit and statutory increases, promotions and cost of living adjustments.

The employee groups are generally defined as:

Executive Directors - The most senior executive position in the organisation coordinating the full range of functions. Provides leadership and has overall direction and control of the company’s operations/divisions. Responsible for long-range planning and establishment of basic policy. This position excludes the Chairman with no executive responsibility in the organisation.

Senior Management - Is defined as those executives who report directly to the General Management with full responsibility for major departments or functions. They actively participate in developing company policy and closely advise the General Management on strategy.

Middle Management - Is defined as those employees who may report directly to the General Management but are not regarded as the top level of management, or alternatively report directly or indirectly to department heads or heads of function.

Professionals - Professional employees are personnel who through a specific qualification or a level of skill/competence in a particular discipline are considered as experts in their field e.g. Accountants, Legal Advisors, Key Account Managers, Product Marketing Specialists, Business/Technical Consultants, HR Professionals.

Technical/Business Support - Are defined as white collar personnel employed directly by an organisation, either in an office environment or in the field. Managerial levels should not be included here.

Production/Operations - Are defined as blue-collar personnel, operators or technicians employed in a plant/factory, as well as basic clerical support roles in an office environment, kitchen staff, security personnel, drivers etc. For this category of personnel, job descriptions often differentiate between highly skilled, skilled, semi-skilled and unskilled personnel.


2011/12 EMEA SALARY BUDGET PLANNING REPORTGENERAL INDUSTRIES SALARY MOVEMENT

SUMMARY OF KEY FINDINGS

The following is a summary of current economic forecasts from the (EIU) Economist Intelligence Unit and key findings from our Salary Budget Planning Survey, highlighting the current trends in salary movement and review practices across EMEA.

Economic conditions in the Euro zone continue to be a tug-of-war between the strongest economies (real GDP growth of 3% or more) and the weakest (growth of 1% or less). Led by Germany, the strongest economies account for about one third of the Euro zone’s total GDP while the weakest account for slightly more than a third. The middle group, where growth is neither very strong nor very weak is led by France and comprises about 28% of total GDP in the EU. The situation has barely changed from 2010 in terms of the strength of the respective economies. In fact, overall real GDP growth in the Euro zone is forecast to be 1.8% in 2011, compared with 1.7% in 2010. In the EU as a whole, the situation is the same, with the EU economy forecast to expand by 1.8% in 2011; the same as in 2010. The central issue within the Euro zone and the EU going forward into 2012, is the performance of the German economy. The EIU is currently forecasting real GDP growth in Germany of just 2.0% in 2012. If this turns out to be the case, it would mean that growth in the largest EU economies (Germany, France, the UK and Italy) would average 1.4% per annum next year. There are however, a few EU markets where the economies are forecast to perform well above the average in 2011 and 2012. This includes Lithuania (5.0%/3.6%), Poland (4.2%/4.2%) and Sweden (3.7%/3.2%). Outside the EU, real GDP growth across EMEA is expected to be higher in general, led in particular by Qatar (15.8%/5.9%), Ghana (10.5%/7.5%), Kazakhstan (6.7%/6.3%), Saudi Arabia (6.3%/5.3%), Nigeria (6.2%/6.7%) and Turkey (6.0%/4.5%).

Inflation (CPI) rates are up in 2011 and far off the lows recorded in 2009. In the Euro zone, CPI is expected to peak at 2.6% in 2011 (compared with 1.6% in 2010) falling back to 1.9% on average in 2012. The situation is the same for the EU as a whole, with CPI expected to average 3.0% in 2011, falling back to 2.2% in 2012. Of the big four EU economies, CPI is expected average around 2.5% for 2011/12, with the UK continuing to see the highest rates of inflation (CPI expected to average 4.5% in 2011 before falling back to 2.9% in 2012). Inflation rates are highest in the economies of the Mideast and North Africa where CPI is sharply up from last year, forecast to average 8.8% in 2011, compared with 5.8% in 2010. However, inflationary pressures are expected to ease somewhat in 2012, with CPI expected to average 7.5%. Prices are rising in Sub-Saharan Africa also, with CPI forecast to average 7.7% in 2011 and 7.2% in 2012. EMEA countries that are struggling the most to contain inflationary pressures include the Ukraine (forecast CPI of 10.6% and 9.4% respectively in 2011 and 2012), Russia (8.9%/7.7%), Belarus (15%/11%), Egypt (16.2%/11.6%), Ghana (9.7%/9.1%) and Nigeria (11.8%/11.0%).

Unemployment levels generally remain elevated in most EMEA markets as economic growth tends to slowly impact labour markets. Across the EU, unemployment is expected to continue to decline modestly in most economies, falling from an estimated average of 9.6% in 2011 to 9.3% in 2012. However, this is not the case in the troubled economies of Greece, Ireland and Portugal where unemployment is expected to continue to rise amidst their recessions. Labourmarkets where unemployment levels are expected to be considerably better than the EU average in 2011 and 2012 include Germany (6.1%/5.9%), Sweden (7.6%/7.2%), Denmark (5.9%/5.3%) and Finland (7.7%/7.0%).


OVERVIEW - The graph below compares the projected salary budget increases reported by country with the local inflation rate. Salary budget increase figures include promotions and zero salary budget increases. Macroeconomic data source: Economist Intelligence Unit (EIU)

TABLE 1: Overall salary budget increases in comparison with key economic indicatorsMedian actual and projected overall salary budget increases as a percentage of annual base salary are presented in comparison with the consumer price index inflation, gross domestic product increase and unemployment rates for each country. The overall percentage figures are based on the General Industry sample.

20122011

3,0

Overall%

2,0

Inflation%

0,9

GDP

19,7

UnemploymentRate

%

20,60,83,12,7Spain

UnemploymentRate

%GDPInflation

%Overall

%Sector Country

NB: Macroeconomic data source: Economist Intelligence Unit (EIU)The data for salary budget increases includes zero values (salary freezes)“-“ indicates where there is insufficient data to report a result

TABLE 2: Salary budget increases by employee group – excluding zero salary budget increasesThis table reports the median salary budget increase by employee group. Note: not all companies providing an overall salary increase also provided data broken down by employee group. This resulted in a different sample and sometimes higher or lower statistics. This information is reported by General Industry only.

2012 Projected Salary Increase Budget (%)2011 Actual Salary Increase Budget (%)

3,0

Overall

3,0

ExeccutiveDirectors

3,0

Senior Managem

ent

3,0

MiddleManagem

ent

3,0

Professionals

3,0

TechnicalBusiness

3,0

Production

2,72,62,82,82,62,52,8Spain

Professionals

TechnicalBusiness

Production

ALL INDUSTRY

MiddleManagem

ent

Senior Managem

ent

ExeccutiveDirectors

Overall

Sector Country

TABLE 3: Salary budget increases by employee group – including zero salary budget increasesThis table reports the median salary budget increase by employee group. Note: not all companies providing an overall salary increase also provided data broken down by employee group. This resulted in a different sample and sometimes higher or lower statistics. This information is reported by General Industry and then by sector.

RETAIL

2,02,02,02,02,02,02,02,52,52,32,32,32,02,3Spain

2012 Projected Salary Increase Budget (%)2011 Actual Salary Increase Budget (%)

3,0

Overall

3,0

ExeccutiveDirectors

3,0

Senior Managem

ent

3,0

MiddleManagem

ent

3,0

Professionals

3,0

TechnicalBusiness

3,0

Production

2,62,52,72,72,52,42,7Spain

Professionals

TechnicalBusiness

Production

ALL INDUSTRY

MiddleManagem

ent

Senior Managem

ent

ExeccutiveDirectors

Overall

Sector Country


NB: Macroeconomic data source: Economist Intelligence Unit (EIU)The data for salary budget increases includes zero values (salary freezes)“-“ indicates where there is insufficient data to report a result

TABLE 4: Salary review statusCompanies were asked to indicate the status of their salary review for 2011 and 2012. This information is reported by all industries and specific sectors. Some companies provided more than one response, and is hence why some percentages add up to more than 100.

RETAIL

257500406000Spain

ALL INDUSTRY

2012 Projected review status (% of responses)2011 Salary review status (% of responses)

3

Freeze

2

Postponed

89

Regular Review

6

Statutory

78355Spain

StatutoryRegular ReviewPostponedFreezeSector Country

TABLE 5: Salary budget increase – allocation to high performersCompanies were asked to indicate how they plan to administer their salary budget increase in relation to high performers. This information is reported by All Industries and then by sector.

RETAIL

0176617Spain

110827Spain

Salary budget increase allocation for 2012 (% respondents)

ALL INDUSTRY

Exclude high performers from planned salary

decreases

Budget increase allocated to all employees at same

rate

Larger portion to high performers

Entire budget increase to high performers Sector Country