2012 Retail Industry Compensation & Benefits SurveyFall HR Roundtable

September 18, 2012

Bill Strobl, Mercer

Annisa Au, Mercer

2012 Retail Industry Compensation & Benefits SurveyFall HR Roundtable

September 18, 2012

Bill Strobl, Mercer

Annisa Au, Mercer

MERCER

Today’s Agenda

Morning8:30 – 8:45 Welcome8:45 – 9:45 Guest Speaker: Trevor Lawson, McCarthy T9:45 – 10:00 Break10:00 – 11:15 2012 Survey Results11:15 – 11:30 Break11:30 – 12:15 HR Roundtable Discussion Lunch12:15 – 1:00 Networking LunchAfternoon1:00 – 2:00 Guest Speaker: Stephen Hornberger, Mercer 2:00 – 2:15 Break2:15 – 3:15 Guest Speaker: Allison Griffiths, Mercer 3:15 – 3:30 Break3:30 – 4:15 HR Roundtable Discussion 4:15 – 4:30 Meeting Evaluations / Adjourn

1

Guest Speaker: Trevor Lawson, McCarthy Tétrault

HR Roundtable Discussion – Part I

Guest Speaker: Stephen Hornberger, Mercer – Compensation Planning

Guest Speaker: Allison Griffiths, Mercer – Talent Management

HR Roundtable Discussion – Part IIMeeting Evaluations / Adjourn

Guest SpeakerTrevor LawsonMcCarthy T

Guest SpeakerTrevor LawsonMcCarthy Tétrault

MERCER

Networking Break

3

Networking Break

2012 Survey Results2012 Survey Results

MERCER

Retail Trends

• New Competition (for customers and employees)– Influx of US retailers into Canada– Product Mix

- Food retailers offering non-food items (and vice versa)- Private label and exclusive collections

– Acquisitions

• Unionization

• Gender based selling

• Direct sourcing of products

5

New Competition (for customers and employees)

food items (and vice versa)Private label and exclusive collections

5

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2012 Survey ResultsPublished Reports

2009 Survey Results

• Survey Published in Mercer WIN 16th

6

2009 Survey Results

th August

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Overview of Compensation ResultsWhat We Will Cover

• Survey Sample• Year-Over-Year Report• Base Pay Analysis• Total Cash Compensation Analysis• Employee Group Analysis• Store Management Career Progression• Geographic Analysis• Selected Policy and Practice Data• Scope Data Differentials

Changes in market base salary and total cash data reflect a combination of factors, which may include: – Changes in number of incumbents reported– Sampling– Individual salary increases

NOTE!

7

Store Management Career Progression

Changes in market base salary and total cash data reflect a combination of factors, which may include:

Changes in number of incumbents reported

Individual salary increases

Survey SampleSample

MERCER

2012 Participants (N=79)

9

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2012 Participants (N=79)

10

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20

15

26

1816

23

17

0

10

20

30

Apparel / Footw ear Gif ts / Entertainment /Communication

Home / Office / Multi-

General Merchandise Category

# of

Org

aniz

atio

nsSurvey SampleSample Size and Industry Distribution

• Number of Companies – 79 (+9.7%)

• Number of Positions – 120 (+3.5%)

• Number of Incumbents – 343,226 (+5.7%)

• Number of Geographic Regions (Cities) Reported

11

26

9

5

26

8

3

20

8

3

Home / Office / Multi-Department

Grocery / Convenience Restaurants

General Merchandise Category

2010 2011 2012

Sample Size and Industry Distribution

%)

Number of Geographic Regions (Cities) Reported – Over 250

Participation was up compared to last year

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SO FT/PT81.6%

Other18.4%

HO/DC Salaried1.5%

Survey SampleDistribution of Incumbents by Employee Group

A similar distribution to 2011 with a slight increase in the proportion of HO/DC

and Salaried incumbent matches

LegendSO FT/PT – Store Operations Full-time/Part-timeSO Mgmt – Store Operations ManagementHO/DC Hourly – Head Office/Distribution Center HourlyHO/DC Salaried – Head Office/Distribution Center SalariedHO/DC Mgmt – Head Office/Distribution Center Management

SO Mgmt11.7%

Executives0.1%

HO/DC Hourly4.5%

HO/DC Mgmt0.6%

12

Distribution of Incumbents by Employee Group

A similar distribution to 2011 with a slight increase in the proportion of HO/DC - Hourly

and Salaried incumbent matches

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Survey SampleDistribution of Incumbents by Geography

14%

7%

5%

7%

2%

8%6%

Movement in the geographic distribution of incumbents

remain fairly constant this year

13

Distribution of Incumbents by Geography

5% 8%

9%

2%

6%

6%

22%

Greater Vancouver 7%Other British Columbia & Territories 5%Alberta 14%Saskatchewan & Manitoba 7%Southwestern Ontario 8%Northern Ontario 2%Greater Toronto 22%Eastern Ontario 6%Other Ontario 6%Greater Montréal 9%Other Québec 5%Atlantic Canada 8%

Year-OverOver-Year Report

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Year-Over-Year Report

2012 Position Comparison to Prior Year Report

• 2011 vs. 2012: by job– All organizations– Same organizations (Core companies– % range of pay changes

• Shows changes in Average (Mean) Base Salaries

• Core Companies are those organizations that participated in the survey in both 2011 and 2012.

• The number of Core Companies is 51, representing 65% of the survey participants.

• A high proportion of Core Companies in the sample enhances the degree to which the statistics are truly reflective of the market movement.

15

2012 Position Comparison to Prior Year Report

Same organizations (Core companies)

changes in Average (Mean) Base Salaries

Core Companies are those organizations that participated in the survey

The number of Core Companies is 51, representing 65% of the survey

A high proportion of Core Companies in the sample enhances the degree to which the statistics are truly reflective of the market

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Year-Over-Year Report Example

All Organization Market Changes

Position Code Position Title

Current Year # Orgs

% Change

in # Orgs

Current Year # Obs

% Change

in # Obs

Change

70020

Top Domestic Traffic / Logistics Manager 14 40 14 40

In this example, there are 14 organizations matching to this position, a 40% increase from the previous year’s survey

Increase in pay from previous survey is 10.6%, which is substantially higher than the 5.4% market increase obtained when we use the same 8 orgs. and same positions to calculate the market change.

Approach 1

16

Same Organizations, Same PositionMarket Changes

Actual OrganizationPercent Changes in Base

% Change

Base

# Same Orgs

Current Year # Obs

% Change

in # Obs

% Change

Base 25%ile 50%ile 75%ile

10.6 8 8 0 5.4 2 6 8

Increase in pay from previous survey is 10.6%, which is substantially higher than the 5.4% market increase obtained when we use the same 8 orgs. and same positions to calculate the market change.

For the individual organization changes, we see a range of increases of:• 2% (25th %ile)• 8% (75th %ile) • Typical increase of 6% (50 %ile).

Approach 2 Approach 3

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Year-Over-Year ReportCore Participants (N=51)

17

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Base Pay Analysis

18

Base Pay Analysis

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Base Pay AnalysisOverall Changes

Base Pay

2012 - Overall 2.3%

2012 - Core 2.1%

2011 - Overall 3.4%

19

% Change of Medians

Base Pay TCC

2.3% 1.3%

2.1% 0.5%

3.4% 4.6%

MERCER

Base Pay AnalysisOverall Changes – HO/DC

% Change of Median Market Data

Base Pay

Hourly - All -5.9%

Hourly - Core -4.7%

Salaried - All -0.7%

Salaried - Core -5.4%

Mgmt - All 2.8%

Mgmt - Core -0.8%

Execs - All 8.1%

Execs - Core 11.8%20

% Change of Median Market Data

Base Pay TCC

5.9% -6.6%

4.7% -4.9%

0.7% -2.1%

5.4% -6.0%

2.8% 3.2%

0.8% -0.7%

8.1% 3.4%

11.8% 9.0%

MERCER

0%

5%

10%

15%

20%

25%

30%

Med

ian

Bas

e S

alar

y %

Cha

nge

All Orgs 8% 23%

Core 28% 27%

Head of Store Planning/Design and

ConstructionHuman Resource Manager Head of Store Operations

Base Pay Analysis Hot Jobs: Market Movement Comparison

Overall % Chg 2.3%

Core % Chg 2.1%

Note: Data from 2012 Market Pay Trends Report with at least 10 organizations

21

16% 17% 19%

19% 15% 13%

Head of Store OperationsHead of Visual Merchandising Special Events Coordinator

Hot Jobs: Market Movement Comparison – All Orgs vs. Core (HO/DC)

#5 Hot Job in 2011

+7.8% (Core)

It’s always a good idea to compare both samples to get a better picture of the

movement

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-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

Med

ian

Bas

e S

alar

y %

Cha

nge

All Orgs -31% -12%

Core -36% -15%

Warehouse Shipper/Receiver Distribution Centre Processing Supervisor

Distribution Centre Manager

Base Pay Analysis Cold Jobs: Market Movement Comparison

Overall % Chg 2.3%

Core % Chg 2.1%

Note: Data from 2012 Market Pay Trends Report with at least 10 organizations

22

-14% -7% -9%

-14% -13% -6%

Distribution Centre Manager Lease Administrator Loss Prevention Auditor

Cold Jobs: Market Movement Comparison – All Orgs vs. Core (HO/DC)

#3 cold jobs last year at -4.1% (Core)

MERCER

Base Pay AnalysisOverall Changes - SO

Base Pay

FT/PT - All 1.3%

FT/PT - Core 1.6%

Mgmt - All -0.8%

Mgmt - Core -1.6%

23

% Change of Medians

Base Pay TCC

1.3% 0.6%

1.6% 1.4%

0.8% -1.3%

1.6% -2.0%

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0%

5%

10%

15%

20%

Med

ian

Bas

e Sa

lary

% C

hang

e

All Orgs 13%

Core 5%

Head Cashier

Base Pay Analysis Hot Jobs: Market Movement Comparison

Overall % Chg 2.3%Core %

Chg 2.1%

Note: Data from 2012 Market Pay Trends Report with at least 10 organizations

24

4% 15%

4% 3%

Store Manager Sales Specialist

Hot Jobs: Market Movement Comparison – All Orgs vs. Core (SO)

#1 Cold job last year at -11.7% (Core)

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-15%

-10%

-5%

0%

5%

Med

ian

Bas

e Sa

lary

% C

hang

e

All Orgs -7%

Core -10%

Assistant Store Manager Department Sales Mgr/Second Assistant Mgr

Base Pay Analysis Cold Jobs: Market Movement Comparison

Overall % Chg 2.3%

Core % Chg 2.1%

Note: Data from 2012 Market Pay Trends Report with at least 10 organizations

None of these positions were on the cold

25

-1% 3%

-1% 0%

Department Sales Mgr/Second Assistant Mgr Shift Supervisor

Cold Jobs: Market Movement Comparison – All Orgs vs. Core (SO)

None of these positions were on the cold jobs list last year

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Total Cash Compensation Analysis

26

Total Cash Compensation

MERCER

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Head of Store Planning/Design and Construction

Human Resource Manager

Head of Store

Med

ian

Tota

l Cas

h

All Core

Total Cash Compensation Analysis Hot Jobs: Actual Total Cash – All Orgs vs. Core (HO/DC)

Head of Store Operations

Head of Visual Merchandising

Special Events Coordinator

27

All Orgs vs. Core (HO/DC)

XX%% Difference in Median Total Cash Between All and Core Sample

MERCER October 1, 2012

Total Cash Compensation Analysis Cold Jobs: Actual Total Cash – All Orgs vs. Core (HO/DC)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Warehouse Shipper/Receiver

Distribution Centre Processing

SupervisorCentre Manager

Med

ian

Tota

l Cas

h

All Core

28October 1, 2012

All Orgs vs. Core (HO/DC)

Distribution Centre Manager

Lease Administrator

Loss Prevention Auditor

XX%% Difference in Median Total Cash Between All and Core Sample

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Total Cash Compensation Analysis Hot Jobs: Actual Total Cash – All Orgs vs. Core (SO)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Head Cashier

Med

ian

Tota

l Cas

h

All Core

29

All Orgs vs. Core (SO)

Store Manager Sales Specialist

XX%% Difference in Median Total Cash Between All and Core Sample

MERCER

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Assistant Store Manager Department Sales Manager/Second Assistant

Med

ian

Tota

l Ca

sh

All Core

Total Cash Compensation Analysis Cold Jobs: Actual Total Cash – All Orgs vs. Core (SO)

0%

Department Sales Manager/Second Assistant

Manager

Shift Supervisor

30

All Orgs vs. Core (SO)

XX%% Difference in Median Total Cash Between All and Core Sample

0%

MERCER

Employee Group Analysis

31

Employee Group Analysis

MERCER

$0

$20

$40

$60

$80

$100

$120

2010 2011 2012 2010 2011 2012 2010

Med

ian

Bas

e Sa

lary

(00

0s)

75th percentile

Median

25th percentileAverage

Employee Group AnalysisBase Pay – 3 Year Trend – All Companies

SO FT / PT SO Mgmt

Moderate increases over period for most employee groups

Note: Data are incumbent weighted for the overall sample year-over-year

XX% % Change in Median Base Salary from 2010

32

2010 2011 2012 2010 2011 2012 2010 2011 2012

Companies

HO / DC Hrly

HO / DC Salaried

HO / DC Mgmt

Moderate increases over the 3 year period for most employee groups

% Change in Median Base Salary from 2010-2012

MERCER

Employee Group AnalysisIncentive Payouts vs. Targets – Core Companies

79%

89%

80%

54%

73%

81%

0%

20%

40%

60%

80%

100%

120%

SO Full-time SOManagement

HO Hourly

Perc

ent S

TI A

war

ded

vs. T

arge

t

2011 2012

33

Core Companies

104%

95%

111%

89%

99%

81%78%

HO Hourly HO Salaried HOManagement

Executives

STI payouts vs. Targets are much lower than 2011 for most groups

MERCER

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

$320,000

SO FT/PT SO Mgmt HO/DCHourly

Ave

rage

Tot

al C

ash

Com

pens

atio

n

Annual Base Average

Employee Group Analysis Average Total Cash Compensation and Pay Mix (All)

2%98% 100%

Note: Data are incumbent weighted for all incumbents. Total Cash Compensation = annual base pay + actual STI + Sales Commission

5%

95%0%

34

HO/DC HO/DCSalaried

HO/DC Mgmt HO/DC Execs

Annual Base Average Total Incentives

Compensation and Pay Mix (All)

77%

23%

95%87%

5%

13%

MERCER

Store Management Career Progression

35

Management Career Progression

MERCER

Store Management Career ProgressionMedian Market Base Pay – Core Companies

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Manager inTraining

Assistant StoreManager

Store Manager

Med

ian

Mar

ket B

ase

Pay 2011 2012

Career progression for the store management ladder remain consistent year

1.1%

36

Store Management Career ProgressionCore Companies

Store Manager District Manager RegionalManager of SO

2012

Career progression for the store management ladder remain consistent year-over-year

XX% % Change in Median Base Salary

MERCER

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2011 2012 2011 2012 2011

Act

ual T

otal

Cas

h (0

00s)

75th percentile

Median

25th percentileAverage

Store Management Career Progression Actual Total Cash Compensation – Core Companies

ManagerIn

Training

AssistantStore

Manager

A reduced focus on the

XX% % Change in Median Total Cash from 2010

*Note: The jobs displayed include those where a minimum sample threshold of 10 organizations has been met. 37

2011 2012 2011 2012 2011 2012

Store Management Career Progression Core Companies

StoreManager

DistrictManager

RegionalManager

of SO

A reduced focus on the entry level?

% Change in Median Total Cash from 2010-20112

*Note: The jobs displayed include those where a minimum sample threshold of 10 organizations has been met.

MERCER

$0

$30,000

$60,000

$90,000

$120,000

$150,000

Manager in Training Assistant StoreManager

Ave

rage

Tot

al C

ash

Com

pens

atio

n

Annual Base Average

Store Management Career Progression Actual Total Cash Pay Mix (All)

9%

97%

Note: Data are incumbent weighted for incumbents for all incumbents

3%

91%

38

Store Manager District Manager Regional Managerof SO

Annual Base Average Total Incentives

Store Management Career Progression

82%

18%

91%

85%9%

15%

MERCER

Executive Summary

• The survey continues to grow

– 10% more companies

– 6% more incumbents

– 250+ cities reported

• Head Office/Distribution Center (HO/DC)

– Hourly and Salaried positions saw an overall decrease in market median base pay and TCC

– Management and Executive positions saw an overall increase in market median base pay and TCC

• Store Operations positions also saw an increase in market median base pay and TCC

• There can be a big difference when reviewing data movement depending on which sample you are using (all, core, or peer group)

39

Head Office/Distribution Center (HO/DC)

Hourly and Salaried positions saw an overall decrease in market median base

Management and Executive positions saw an overall increase in market median

Store Operations positions also saw an increase in market median base pay and

There can be a big difference when reviewing data movement depending on which sample you are using (all, core, or peer group)

MERCER

Geographic Analysis

40

Geographic Analysis

MERCER

Geographic AnalysisHead Office / DC Executives

2%

22%

1%

22%

21%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

BC &Territories

Alberta Sask. &Manitoba

Perc

ent D

evia

tion

from

Nat

iona

l Med

ian

Nat

iona

l Med

ian

= 0

2010

41

1%

-12%

3%

-9%

-35%

1%

-19% -1

6%

GreaterToronto

OtherOntario

Québec AtlanticCanada

2010 2011 2012

2012 National Median Base Salary $200,000

MERCER

Geographic AnalysisHead Office / DC Management

-4%

-2%

-9%

3%

-1%

-6%

-10%

-6%

-16%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

BC &Territories

Alberta Sask. &Manitoba

Perc

ent D

evia

tion

from

Nat

iona

l Med

ian

Nat

iona

l Med

ian

= 0

2010

42

7%

-7%

-3%

-14%

10%

-10%

-8%

-5%

11%

-3%

-9%

-18%

GreaterToronto

OtherOntario

Québec AtlanticCanada

2010 2011 2012

2012 National Median Base Salary $90,000

MERCER

Geographic AnalysisHead Office / DC Salaried

-3% -1

%

-4%

-3%

-9%

-17%

-20%

-10%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

BC &Territories

Alberta Sask. &Manitoba

Perc

ent D

evia

tion

from

Nat

iona

l Med

ian

Nat

iona

l Med

ian

= 0

2010

43

9%

-4%

-7%

-32%

13%

-16% -1

4%

-2%

10%

7%

-11%

-40%

GreaterToronto

OtherOntario

Québec AtlanticCanada

2011 2012

2012 National Median Base Salary $54,000

MERCER

Geographic AnalysisHead Office / DC Hourly

-4%

-4%

-16%

7%9%

1%

-17%

-1%

2%

-22%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

BC &Territories

Alberta Sask. &Manitoba

Perc

ent D

evia

tion

from

Nat

iona

l Med

ian

Nat

iona

l Med

ian

= 0

2010

44

7%

-15%

-17%

-22%

10%

-11%

-14% -1

2%

23%

-12%

-13%

-5%

GreaterToronto

OtherOntario

Québec AtlanticCanada

2011 2012

2012 National Median Base Salary $32,000

MERCER

Geographic AnalysisStore Operations Management

-2%

3%

-6%

3% 3%

-5%

2%

5%

-4%

-20%

-10%

0%

10%

20%

BC &Territories

Alberta Sask. &Manitoba

Perc

ent D

evia

tion

from

Nat

iona

l Med

ian

Nat

iona

l Med

ian

= 0

2010

45

5%

1%

2%

-7%

6%

2%

-1%

-7%

8%

4%

-8%

-10%

GreaterToronto

OtherOntario

Québec AtlanticCanada

2010 2011 2012

2012 National Median Base Salary $44,000

MERCER

Geographic AnalysisStore Operations Full-Time / Part-Time

-2%

5%

-4%-2

%

4%

-4%-2

%

6%

-4%

-20%

-10%

0%

10%

20%

BC &Territories

Alberta Sask. &Manitoba

Perc

ent D

evia

tion

from

Nat

iona

l Med

ian

Nat

iona

l Med

ian

= 0

2010

46

Time

2% 1%

-5% -4%

2%

0%

-4%

-1%

0% 0%

-3% -1

%

GreaterToronto

OtherOntario

Québec AtlanticCanada

2010 2011 2012

2012 National Median Base Salary $21,000

MERCER

Geographic AnalysisSummary

• Alberta and Greater Toronto tend to have the largest geographic differential across all job families.

• Geographic differentials can vary across different job families. When using the data don’t just apply one differential for all positions.

47

Alberta and Greater Toronto tend to have the largest geographic differential

Geographic differentials can vary across different job families. When using the data don’t just apply one differential for all positions.

Selected Policy and Practice Data

• Compensation Practices• Employment Practices• Benefit and HR Staff Trends

Selected Policy and Practice

Compensation PracticesEmployment PracticesBenefit and HR Staff Trends

MERCER

Compensation PracticesMerit Increase Budget

For Employees who 'Meets Requirements' and areAt Midpoint

2.2% 2.2% 2.3%2.4% 2.4% 2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

SO FT SO Mgmt HO / DCHrly

Mea

n m

erit

% in

crea

se

201149

For Employees who 'Meets Requirements' and areAt Midpoint

2.3% 2.3%2.5%2.5% 2.4% 2.4% 2.5%

HO / DC HO / DCSalaried

HO / DCMgmt

HO / DCExecs

2011 2012

MERCER

Compensation PracticesSalary Freezes

6.8%

5.6% 5.6%

1.4% 1.5% 1.4%1.4%

0.0%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

SO PT SO FT SO Mgmt

% o

f Org

aniz

atio

ns

2010Source: Mercer 2012/2013 Compensation Planning Survey & 2012 Retail Industry Compensation & Benefits Survey

Salary freezes are back to the level we saw before 2009

50

11.5%

10.0%9.4%

3.1% 3.1% 3.4%

1.4%1.4% 1.6% 1.5% 1.7%

SO Mgmt HO/DC Hrly HO/DCSalaried &

Mgmt

HO/DCExecs

2010 2011 2012Source: Mercer 2012/2013 Compensation Planning Survey & 2012 Retail Industry Compensation & Benefits Survey

Salary freezes are back to the level we saw before 2009

MERCER

Employment PracticesAssociate Turnover Rates - Historical Trend

51%

18%23%

46%

16%

42%

16%

10%

38%

0%

10%

20%

30%

40%

50%

60%

All CompanyAssociates

District Managers Store Managers

Ave

rage

Tur

nove

r R

ate

2009

Turnover is still trending down for most employee groups

51

Historical Trend

18%

27%

18% 17%22%

13%

19%22%

14%17%

27%

18%

Store Managers Assistant StoreManagers

Home Office Staff

2010 2011 2012

Turnover is still trending down for most employee groups

MERCER

Employment PracticesAssociate Turnover Rates - Historical Trend

42%

81%

64%

40%

67%

32% 35%

56%

0%10%

20%30%

40%50%

60%70%

80%90%

Sales Associates - FT Sales Associates - PT(incl. temp/seasonal

staff)

Ave

rage

Tur

nove

r Rat

e

2009

Quite a sharp reduction in turnover rates for Sales Associates

52

Historical Trend

25%

74%

18%

67%

32%

53%56% 54%

20%

Sales Associates - PT(incl. temp/seasonal

Sales Associates - PT(excl. temp/seasonal

staff)

Distribution CentreHourly Staff

2010 2011 2012

Quite a sharp reduction in turnover rates for Sales Associates - PT

MERCER

2009 2010

1.21 1.10

Benefit & HR Staff Trends• Health Care Cost Coverage

– Although eligibility for most health benefits is similar to previous years it is worth noting that a number of these plans where costs are employee seems to be on the increase:- Extended Health- Dental - STD Supplemental Insurance- Basic Life Insurance- Stock Purchase Plan- Fitness Club- “Wellness” Physical Exams

• HR Staffing Ratios– Median HR staff levels per 100 associates has continued to rise

2010 2011 2012

1.10 1.44 1.5753

Although eligibility for most health benefits is similar to previous years it is worth noting that a number of these plans where costs are bared by the employee seems to be on the increase:

Median HR staff levels per 100 associates has continued to rise

Scope Data Data Differentials

MERCER

Scope Data DifferentialsIndustry

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Store Stock Help Assistant StoreManager

Med

ian

Bas

e Sa

lary

Apparel / Footwear

Gifts / Entertainment / Communication

Home / Office / Multi-Department

Note: Data are Incumbent weighted for all organizations

55

Store Manager District Manager Regional Managerof Store

Operations

Gifts / Entertainment / Communication

Home / Office / Multi-Department

MERCER

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Store Stock Help Assistant StoreManager

Med

ian

Bas

e Sa

lary

AlbertaAtlantic CanadaBritish Columbia & TerritoriesGreater TorontoOther OntarioQuébecSaskatchewan & Manitoba

Scope Data DifferentialsLocation

Note: Data are Incumbent weighted for all organizations

Store Manager District Manager RegionalManager of Store

Operations

British Columbia & Territories

56

MERCER

Scope Data DifferentialsFTEs

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Store Stock Help Assistant StoreManager

Store Manager

Med

ian

Bas

e Sa

lary

Less than 1,000

1,000 - 5,000

5,001 - 10,000

Greater than 10,000

Note: Data are Incumbent weighted for all organizations

57

Store Manager District Manager RegionalManager of Store

Operations

HR Roundtable DiscussionPart IHR Roundtable Discussion

MERCER

Hot Topics / Key InitiativesBelow is a summary of some of the key initiatives provided:

Key Initiative

Compensation Planning/Structure/Re-design

Attraction and Retention

Benefit, Wellness, Pension Plan (Review/Re-design)

Business Process and Communication

Employee Engagement/Recognition

Geographic Differentials

Succession Planning/Training and Development

System and Technology

Compliance and Regulation

Incentive Plans (Review/Redesign)

Performance Management and Review59

Below is a summary of some of the key initiatives provided:

# of Orgs

15

12

design) 12

7

6

5

Succession Planning/Training and Development 5

4

3

3

2

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Key Initiatives / Hot Topics

1. Compensation Planning2013 Compensation planningRegional compensation trendsSalary structure re-designOvernight/On-call pay for Loss Prevention and IT staff

2. Attraction and RetentionRecruitment and retention in AlbertaCompetition with new retailers entering into Canada

3. Benefit, Wellness, Pension PlanChanges in benefit plansPart-time benefits

4. Employee Engagement/Recognition Recognition programsService awards

60

call pay for Loss Prevention and IT staff

Recruitment and retention in AlbertaCompetition with new retailers entering into Canada

Employee Engagement/Recognition

Networking LunchNetworking Lunch

Guest SpeakerStephen HornbergerMercer

Guest SpeakerStephen Hornberger

MERCER

Networking Break

63

Networking Break

Guest SpeakerAllison GriffithsMercer

Guest SpeakerAllison Griffiths

Networking BreakNetworking Break

HR Roundtable DiscussionPart IIHR Roundtable Discussion

2013 Retail Survey2013 Retail Survey

MERCER

2013 Survey OverviewKey Dates

Survey Milestones Feb

Participation Materials Distributed Mid

Retail Spring Roundtable/Job Matching Meeting

Data Effective Date

Early Bird Bonus Deadline

Data Submission Deadline

Results Available

WIN Webcast

Fall Roundtable/Post-Survey Meeting

68

Mar Apr May June July Aug Sept

Mid

1

Mid

Early

Mid

Early

Late

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2013 Survey OverviewSuggested Enhancements and Revisions Process

• Review feedback from 2012 Submissions

• Review feedback from Spring and Fall meetings

• Client conversations throughout the year

• Review data submitted - job analysis

69

Suggested Enhancements and Revisions Process

Review feedback from 2012 Submissions

Review feedback from Spring and Fall meetings

Client conversations throughout the year

Mercer WINMercer WIN® is finally here!

MERCER 71

Introducing Mercer WIN

• The Mercer Workforce Intelligence Network is:

– An interactive search and analysis tool

– Providing local, regional and global survey results

– And producing charts, graphs and reports at the click of a button

71 71

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What’s in it for you?

• Interactive, easy to use, solution

• Access to your survey results across industry and across borders

• Unlimited, free peer cut reports

• Ability to compare your submission to the market

• Refine the results exactly the way you want

• Interactive, configurable charts

• And more

72

, solution

survey results across industry and across borders

Unlimited, free peer cut reports, on the fly, for participants

compare your submission to the market instantly

exactly the way you want

Thank you for joining us today

Please remember to fill out your meeting evaluation

Thank you for joining us today

Please remember to fill out your meeting evaluation

MERCER