By: Juan P. Garcia Organizational Research Services Director Total Rewards, Trends and Plan Design Take a Chomp Out of Your Comp!

By: Juan P. GarciaOrganizational Research Services Director

Total Rewards, Trends and Plan Design

Take a Chomp Out of Your Comp!

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Total Rewards, Trends and Plan Design

ABOUT THIS PRESENTATION

Plan Design & Compensation Trends Top Trends Overall Market Movement Industries

Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy General Framework EG’s Employers of Choice Model Check-off Inventory Sample Case

EG’s New Online Compensation program

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Total Rewards, Trends and Plan Design

Plan Design & Compensation: Top Trends

Tops Trends

Soft salary increases likely trend for the next two years

Soft employment levels & low turnover

About 45% of cos. will rebuild / overhaul existing plans

More Cos. are evaluating other costs, pension, leaves, etc.

Cos. are actively evaluating / building their performance

management program

Recalibrating payouts, executive compensation

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Total Rewards, Trends and Plan Design

Plan Design & Compensation: Top Trends

Top Trends - continued

Internal equity and alignment – job evaluation programs

Concerns for Federal Contractors re employment Practices

that lead to Compensating Disparities

Concern on new minimum wage:

1% of employees earn less than new min; 5% earn between

$9 and $10

non-profits, 3% are below new minimum, 7% earn between

$9 and $10

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Total Rewards, Trends and Plan Design

Market Movement, Increases & Employment

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Total Rewards, Trends and Plan Design

Plan Design & Compensation: Top Trends

Industry Trends Manufacturing:

Soft increases, 3%; Increase in OT, “OT is better than adding staff”

Finance, non-banking sector: Above average increases, 3.7%+, aggressive bonus plans, 70% percentile

Non-profits:Transparency, especially with executive pay, very receptive to internal pay equity, managing hours of part-time employees

Hospitality: Concerns with new minimum wage, wage compression concerns; dealing with part-time employees, adding more $$ to train entry level EEs

Sales: Recalibrating commission plans; as economy improves, payout and thresholds are being examined

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Total Rewards, Trends and Plan Design

Plan Design & Compensation: Top Trends

OVERALL:On existing Talent:

Moderate Increases likely to continue into 2016 Cos. are more very receptive to retain and train Investing to develop EEs, existing skills, job families Address market disparities by spot market adjustments

On New Talent: Wait-and-see before adding to payroll ranks Wage compression caused by new EEs demanding

higher salaries

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Total Rewards, Trends and Plan DesignBuilding Blocks, Compensation & Benefits: Key

Foundation of a Total Rewards Strategy

Best Places to Work & Employers of Choice:

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CommunityInvolvement

6%

Perks & Incentives12%

Benefits15%

Turnover12%

Pay12%

Employee Voice and Workplace

Culture12%

Work-Life Balance13%

Diversity6%

Training and Opportunities for

Advancement12%

Employers Group: Employers of Choice Model

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Total Rewards, Trends and Plan Design Building Blocks, Compensation & Benefits: Key

Foundation of a Total Rewards Strategy

From WorldatWork, Total Rewards Model

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Total Rewards, Trends and Plan Design Building Blocks, Compensation & Benefits: Key

Foundation of a Total Rewards Strategy

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Total Rewards, Trends and Plan Design

Building Blocks, Compensation & Benefits: Key Foundation of a Total Rewards Strategy

How to rebuild or build a basic program - Checklist:

1. Where is your plan vs. key measures? Costs and market HR Metrics & Bureau of Labor Statistics

2. Has the plan been maintained? How? Upgrade ranges by 2%

3. Internal alignment: Is it defendable?

4. Updated JDs, jobs with multiple areas of responsibility?

5. Define your market; consider your recruiting practices

6. Update your performance management program, clear performance measures

7. Surveys – If possible, have 2 to three different sources

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Total Rewards, Trends and Plan Design

EG’s Survey Program Effective 2013, program has been converted to an online model

Features: Personalized Survey Libraries (2009- ) Access to all Survey Data, Comp & Benefits (900 classifications) Online comp market analysis

Quarterly Updates based on market movement

How to enroll? Build your Library by uploading your data: (a) Match jobs to EG (b) EG will do match for you

System Enhancements Allow users to enter non-EG market data – Q2, 2014 Benefit Cost Assessment Analysis – Q3, 2014 Job Evaluation System of all EG Jobs – Q4, 2014 Consulting Program: Comp Administrative Modules

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Total Rewards, Trends and Plan DesignAttendees have been enrolled: egsurveys.net

2014 Budgets and Economic Trends, (Reg. $295) Employer Healthcare Benefits Survey, (Reg. $395) This PowerPoint Presentation

Access your account:Existing Users:

your email address your current password

New Users: your email address passwords: bluela (My EG Compensation Page): bluela

If you did not select this as your PM Breakout, please see me after the presentation.

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Total Rewards, Trends and Plan Design

egsurveys.net

Existing Users New Users• Arroyo Insurance Services Inc• AS Consulting• Autry National Center• Baker Brand Communications• Barney & Barney LLC• BLT Enterprises• Bolton & Company• Clinicas Del Camino Real• Crown Media Family Networks• Film LA Inc• Forest Lawn• Key Health Group Inc• Living Spaces• MMC Inc• Poly-Tainer, Inc.• Screen Actors Guild - Producers

Pension and Health Plans• Sigue Corporation• The Bobrick Corp.• The Buckley School• Youth Policy Institute

• Deluxe Media Services• Fashion Institute - LA• Legalzoom.com• Phoenix House of California• Photo Sonics, Inc.• Platinum Group of Companies• Southern California Gastroenterology

Associates• Trial Memberships

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Total Rewards, Trends and Plan Design

EG Compensation Tools:

Site Tour

Personalize Library

Online Market Analysis

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Total Rewards, Trends and Plan Design

Thank you!!!

Juan P. Garcia

213.765.3969

[email protected]