Total Rewards, Trends and Plan Design

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Take a Chomp Out of Your Comp!
EMPLOYER OF CHOICE
Total Rewards, Trends and
Plan Design
By: Juan P. Garcia
Organizational Research Services Director
Total Rewards, Trends and Plan Design

ABOUT THIS PRESENTATION

Plan Design & Compensation: Top-line trends
 Top Trends
 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
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Plan Design & Compensation: Top Trends

Tops Trends
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Soft salary increases seem to be the trend for the next two years
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Soft employment levels & low turnover
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Rebuilding / Overhauling existing plans
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Cos. more likely to evaluate other costs, pension, leaves, etc.
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Evaluating / building their performance management program
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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 aligment
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Upgrading Job Descriptions
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Concerns for Federal Contractors re employment Practices that lead
to Compensating Disparities

Concern on new minimum wage:
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1% of employees earn less than new min; 5% earn between $9
and $10
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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

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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

Services:
Recalibrating performance management and compensation plans to meet
market levels and business goals

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:

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Moderate Increases likely to continue into 2016
Cos. very receptive to retain and train
Investing to develop existing skills, job families
Address current needs, 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 Design
Building Blocks, Compensation & Benefits: Key
Foundation of a Total Rewards Strategy

Best Places to Work & Employers of Choice:
8
Training and
Opportunities for
Advancement
12%
Diversity
6%
Work-Life Balance
13%
Employee Voice
and Workplace
Culture
12%
Perks & Incentives
12%
Employers
Group:
Employers
of Choice
Model
Community
Involvement
6%
Turnover
12%
Benefits
15%
Pay
12%
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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

2.
3.
4.
5.
6.
60% of companies have no salary ranges, they run on pure
market pricing
Has the plan been maintained?
Internal alignment: Is it defendable?
Acknowledge jobs with multiple areas of responsibility
Define your market: Consider recruiting practices
Performance Management program: Include clear
performance measures
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Total Rewards, Trends and Plan Design
EG’s Survey Program

Effective 2013, program has been converted to an online model
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Features:
Personalized Survey Libraries (2009- )
Access to all Survey Data, Comp & Benefits
Online comp market analysis



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How to enroll? Build your Library by uploading your data:

(a) Match jobs to EG (b) EG will do match for you

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Quarterly Updates based on market movement
System Enhancements
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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 Design
Attendees have been enrolled: egsurveys.net

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
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: blueoc (My EG Compensation Page): blueoc
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
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7 For All Mankind
Alumafold Pacific Inc
American Dental Partners of California Inc
APRIA Healthcare
Barney & Barney LLC
BI Nutraceuticals
Bicycle Casino
California Foundation for Independent Living Centers
Deschner Corporation
Endologix
Festival of Arts of Laguna Beach
Flatirons Solutions
Galardi Group
Griswold Controls
Griswold Industries
Horiba International Corporation
Keystone Pacific Property Management
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Lake Mission Viejo Association Inc
Living Spaces
Mattco Forge Inc
Mirion Technologies (GDS) Inc
Multiquip Inc
Nobel Biocare
Parker Hannifin Corporation
Sigue Corporation
SkyOne Federal Credit Union
Sohnen Enterprises
Spatz Laboratories Inc
Statek Corporation
Unified Grocers
Vans Inc - Santa Fe Springs
Village Nurseries
Weber Metals, Inc.
Workman Molina LLC
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Hospice Care of California
Kelly Pipe Co LLC
Realty One Group
Skyworks Solutions Inc
Smith Micro Software
VIP Rubber
Existing Users
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APTwater
Arena Pharmaceuticals
Citizens of Humanity
Deluxe Media Services
El Centro Regional Medical Center
Elevation Consulting Group
Ergobaby
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Total Rewards, Trends and Plan Design
EG Compensation Tools:

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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
jgarcia@employersgroup.com
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