H E A L T H W E A L T H C A R E E R

P A Y S T A R T

M E R C E R ’ S A L L - I N - O N E P A YS T R U C T U R E T O O L K I T

Take control of your people cost and talent challengeswith market data insights and simple, robust tools

9th February 2016

Chris Charmanchris.charman@mercer.com

John Ambridgejohn.ambridge@mercer.com

© MERCER 2015 2

T O D AY ’ S S P E A K E R S

John Ambridge Chris Charman

SE NIOR ASSOC IATE207 178 5473

JOHN.AMBR ID GE@ ME RC ER .C OM

PRINCIPAL207 178 3132

CHRIS .CHARM AN@M E RC ER .C OM

© MERCER 2015 3

I T U S E D T O B E E A S Y

© MERCER 2015 4

B U T I T M A K E S M O R E D I F F I C U L T O V E R T I M E

• Dunbar’s Number

• Robin Dunbar: Head of the Social andEvolutionary Neuroscience ResearchGroup in the Department of ExperimentalPsychology at the University of Oxford

Internal noise? Complaints:• fairness

• slow decision-making

• inconsistent people decisions

• waste

• inefficiency

© MERCER 2015 510 February 2016

W H A T I S A L E V E L L I N G S T R U C T U R E ?

Top line characteristics

1 CEO and Executives

2 Commercial or functional leadership role with the most significant anddirect impact on the business

3 Function specific managerial and specialist roles driving theimplementation of strategy and delivering results that have a significantimpact on business success

4 Experienced professional roles tasked with delivering results orSupervisory roles responsible for leading large teams on a day-to-daybasis

5 Junior professional roles moving towards full competence or seniortechnician position

6 Senior administrative support, production role or established Technicianpositions

7 Entry/Junior level administrator, production or support role

L E V E L O RG R AD E

LEVELS CANBEDESCRIBEDIN TERMS OFWORDS ORPOINTS

EACH LEVELCAN HAVE ARANGE OFPAYATTACHED TOALIGN TO THEMARKET

© MERCER 2015 6

H O W D O E S A L E V E L L I N G S T R U C T U R E H E L P ?

© MERCER 2015

BUSINESS VIEW

More control over people cost

Get pay levels right to attractand retain talent

Improve consistencyand transparency

More structure todiscuss career paths

EMPLOYEE VIEW

Consistent and fair treatment

Market rewards

Employer trust, engagement

Clearer career discussions

© MERCER 2015 7

C H A L L E N G E S

PRICE

EXPERTISE

COMPLEXITY

© MERCER 2015 8

LEV ELLI NGS T R U C TU R E

PAY DES IGNAN D

MODE LLING

CONSULT INGS U P P O R T

© MERCER 2015

S O W E H A V E D E V E L O P E D P AY S T A R T

M A R K E TD ATA

© MERCER 2015 9

LEV ELLI NGS T R U C TU R E

PAY DES IGNAN D

MODE LLING

CONSULT INGS U P P O R T

M A R K E TD ATA

1 : L E V E L L I N G S T R U C T U R E

1

2

3

4

5

6

7

Executive

Senior Manager

Manager/Senior Professional

Supervisor/Established Professional

Senior Technical/Clerical, Junior Professional

Established Technical/Clerical

Junior Clerical/Production

CEO

4 0 Y E A R SL E V E L L I N G

E X P E R I E N C E

KEYINPUTS

Based on typicalcareer stepsImprove internal transparency and support communication of career progression and paths

© MERCER 2015

• Established and productive professional individualcontributor

• Capable of working autonomously under generalsupervision.

• Tasked with delivering results that make a directcontribution to a department or project delivery

• Responsible for making adjustments or recommendedenhancements to systems or processes

• Communicates with contacts typically within thedepartment on matters that involve obtaining orproviding information requiring simple explanation orinterpretation

Supervisor/Established Professional

© MERCER 2015 10

1 : L E V E L L I N G S T R U C T U R E

B U I LT O N ME R C E R ’ SJ O B E VAL U AT I O N

H E R ITAG E

M AP T O S T R U C T U R EB AS E D O N W H O L E J O B

C O N T E N T

I P E U N D E R P I N L I N K AG ET O M AR K E T D ATA

© MERCER 2015 11

2 : A C C E S S T O M A R K E T D A T A A N D M O R E

MERCERWIN

© MERCER 2015 12

Full trainingYearly datasubmission

2 : A C C E S S T O M A R K E T D A T A A N D M O R E

MERCERWIN

Interact and analysepay data

Inform pay structure

Policies

iCompensation plans

BenefitsPerquisites

© MERCER 2015 13

2 : A C C E S S T O M A R K E T D A T A A N D M O R E

V IE W D ATA B Y J O B

© MERCER 2015 14

2 : A C C E S S T O M A R K E T D A T A A N D M O R EREFINE THE MARKET AS DESIRED

© MERCER 2015 15

2 : A C C E S S T O M A R K E T D A T A A N D M O R EUNDERSTAND MARKET POLICY AND PRACTICE

© MERCER 2015 16

PAY BAND TOOL

3 : M A R K E T - A L I G N E D P AY S T R U C T U R E SA N D C O S T M O D E L S

© MERCER 2015 17

PAY BAND TOOL

3 : M A R K E T - A L I G N E D P AY S T R U C T U R E SA N D C O S T M O D E L S

Job family ranges

Simple ranges

Marketalignment

Model the cost andpeople implications

Aids interpretation and supportsstakeholder discussions

© MERCER 2015 18

3 : D E V E L O P P AY S T R U C T U R E S A N D M O D E L

© MERCER 2015 19

E X P E R T C O N S U L T A N T S W I T H Y O UE V E R Y S T E P O F T H E W AY

U N D E R S TAN DTOOLS

K E YS T RAT E GI CDECIS IONS

S U P P O R TYO U R S E LFU N AI D E D

IN IT IAL DES IGN ROLLOUT

• Principles of pay management and using market data

• Strategic pay structure design

• Tool training

• How to slot jobs to the structure and to surveys

• Getting the most from Mercer WIN

• Consistency in process and outcome

• How to model salary ranges

• People implications and transitioning

© MERCER 2015 20

P R O J E C T P R O C E S S

M E R C E RA C T I V I T I E S

Y O U RA C T I V I T I E S

J O I N TW O R K S H O P S

3 – 4 W E E K S

Create levellingstructure

Develop payranges in pay

band tool

Education & payrange strategy

design, market data

Mercer WINtraining

Review structure,slotting training

Review pay ranges,pay band tool training,review of implications,

transitioning

Iterate payranges and

finalise

Provide revenueheadcount andbusiness info

i

Slot remainingjobs. Providepeople data

© MERCER 2015 21© MERCER 2015

P AY S T A R T

A pay band tool todevelop structures andmodel implications

One year for onecountry, withweb access

Full levelling structure withdescriptors

3xDAYS

StrategyTrainingTransitioning

Key Features

Fixed price

Price varies by market - between€20,000 and €30,000

Market data for one country that goesbeyond just compensation

Levelling is based on career steps andaligned back to IPE

© MERCER 2015 22

Q U E S T I O N S ?

QUESTIONSPlease type your questions in the Q&A section of the toolbarand we will do our best to answer as many questions as wehave time for.

To submit a question while in full screen mode, use the Q&Abutton, on the floating panel, on the top of your screen.

CLICK HERE TO ASK A QUESTIONTO “ALL PANELISTS”

FEEDBACKPlease take the time to fill out thefeedback form at the end of this webcastso we can continue to improve. Thefeedback form will pop-up in a newwindow when the session ends.

John Ambridge Chris Charman

S E N I O RAS S O C I AT E

2 0 7 1 7 8 5 4 7 3J O H N . A M B R I D G E@ M E R C E R . C O M

P R IN C I PA L2 0 7 1 7 8 3 1 3 2

C H R I S . C H AR M A N@ M E R C E R . C O M

© MERCER 2015 23