COMPENSATION REVIEW ANDANALYSIS SERVICESTAKING THE WORK OUT OF YOUR COMPENSATION REVIEW PROCESS

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WHAT ARE MERCER’S COMPENSATION REVIEW AND ANALYSIS SERVICES?

Mercer’s Compensation Review and Analysis Services (CRAS) are specifically designed to assist clients during their annual salary review process. We become an extension of your compensation function and apply our expertise to your review process.

WHY USE CRAS?

Facing a challenging timeline and resource constraints? CRAS can help provide:

•Additional resources: A dedicated team of consultants and analysts will provide the extra help you need to ensure you keep to your set timeline.

•Efficiency and accuracy: Mercer’s expertise, tools, and experience will add greater efficiency and accuracy to your process.

•Maximize attraction and retention: Maximize your organization’s talent attraction and retention with effective analysis of competitive pay levels throughout the market.

•Greater return on investment: The value of greater efficiency, reduced errors, and expert analysis and reporting translates into much greater returns to your business.

HOW MERCER CAN HELP

Compensation analysisExternal market competitiveness — Conducting data analysis on market competitiveness among

peers and/or industry-wide on pay levels — Studying compa-ratio with the market as per company

pay philosophy — Understanding competitive practices on market pay mix policy

Internal analysis — Conducting data analysis on company data to gauge internal parity

and see alignment of actual pay practices to the pay policy

Salary range review•Review of existing salary range at each level to ensure market-

competitive base salary structure to guide informed pay decisions. Analysis would also include recommendations on salary range spread, salary overlap, and progression rates that correlate with each level.

COMPENSATION REVIEW AND ANALYSIS SERVICES

ARE YOU ...

... facing a challenging timeline with a lack of resources?

... still looking for the best way to go about the process?

... concerned that your current pay levels aren’t competitive?

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Typical Compensation Activity Cycle

1. Identify benchmark jobs

3. Analyze compensation and review salary range

4. Complete year-end reporting and budgeting

5. Review salaries

2. Participate in remuneration survey

a) Perform job matching.

b) Evaluate positions.

c) Submit data.

d) Receive survey results.

Expected Deliverables from Mercer's Compensation Review and Analysis Services (CRAS)

1. Compensation analysisExternal market competitiveness — Key findings of market competitiveness against a peer group/industry — Market analysis by job family, career level, and incumbent — Compa-ratio as per company philosophy — Compensation mix analysis by company level/grade or career level — Company trendline vs. market trendline, based on regressed data

Internal analysis — Pay dispersion index: compa-ratio scatter plotting compared to target compa-ratio at each position class — Internal compensation practice vs. policy (XXth percentile philosophy) at each position class — Incumbent scatter diagram at each position class

2. Salary range review — Each job or group of jobs is linked to a salary grade considering internal and/or external value — Each grade has a salary range with a minimum, midpoint, and maximum along with range spread and midpoint di�erential

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Dev

iati

on fr

om m

edia

n (%

)

90%

70%

50%

30%

10%

-10%

-30%

-50%

14%

49%

-5%

-40% -40%

37%

21%

80%

36%

20%

-11%

0%

73%

-29%

HR

Administration

IT analysis and design

Marketing

Engineering

Finance

Information technology

Sales and marketing

Research and development

Supply and logistics

SAMPLE OUTPUT

Data Analysis by Job Family

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Market PC45

Level 2

Market PC47

Level 3

Market PC49

Level 4

Market PC50

Level 5

Market PC51

Level 6

Market PC53

Level 7

86%

93%

14%

12%

90%

93%

12%

10%

88% 13%

90% 14%

89% 11%

90% 10%

90% 14%

84% 8%

86% 14%

87% 15%

Fixed cash %

Variable %

Compensation Mix Analysis

PRICING

Compensation review and analysis services

Price in SGD forTRS members

Price in SGD fornon-TRS member*

Compensation analysis 4,950 14,950

Compensation analysis AND salary range review 15,000 25,000

* Access to latest Mercer Total Remuneration Survey shall be provided via the online tool WIN® (Workforce Intelligent Network).

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350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

Sala

ry p

.a. (

SGD

)

42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

Position class

Market ratio 25th percentile

Market ratio 75th percentile

Market ratio 50th percentile

Company trendline

Company Trendline vs. Market Trendline

42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

Position class

300,000

250,000

200,000

150,000

100,000

50,000

0

Sala

ry p

.a. (

SGD

)

Incumbent scatter as per current practice

Companypolicy

Company Practice vs. Policy

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160%

140%

120%

100%

80%

60%42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

Position class

Target compa-ratio

Current compa-ratio scatter

Pay Dispersion Index

$100,000

$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Sala

ry p

.a. (

USD

)

1 2 3 4 5 6 7 8Grade

Salary range

Salary Range Review (SGD)

Grade Minimum Midpoint Maximum

1 $27,200 $34,000 $40,800

2 $30,464 $38,080 $45,696

3 $34,120 $42,650 $51,180

4 $38,214 $47,768 $57,321

5 $42,800 $53,500 $64,200

6 $47,936 $59,920 $71,904

7 $53,688 $67,110 $80,532

8 $60,131 $75,163 $90,196

Salary Range Review (USD)

Copyright 2013 Mercer LLC. All rights reserved. 12427-IS-190913

Argentina

Australia

Austria

Belgium

Brazil

Canada

Chile

China

Colombia

Czech Republic

Denmark

Finland

France

Germany

Hong Kong

India

Indonesia

Ireland

Italy

Japan

Malaysia

Mexico

Netherlands

New Zealand

Norway

Peru

Philippines

Poland

Portugal

Saudi Arabia

Singapore

South Korea

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

United Arab Emirates

United Kingdom

United States

Venezuela

For further information, please contact your local Mercer office or visit our website at:www.mercer.com