mercer sirs 2012 survey results … ls...mercer sirs® 2012 survey results connecting the dots...
Post on 29-Jan-2020
4 Views
Preview:
TRANSCRIPT
MERCER SIRS® 2012 SURVEY RESULTS CONNECTING THE DOTSSEPTEMBER 12, 2012
Chicago, IL
MERCER 1
Agenda
• Welcome
• Mercer SIRS® Survey Process
• Industry Trends
• Economic Context
• 2012 Survey Results and Trends
• Year-over-Year Trends
• Incentives Analysis
LIFE SCIENCES RESULTS MEETINGMERCER SIRS® SURVEY PROCESS
MERCER 33
Mercer SIRS® Survey ProcessOverview
• 126 participating organizations (6% increase) • 5,094 incumbents (3% increase)• 126 reportable benchmarks
• 126 participating organizations (6% increase) • 5,094 incumbents (3% increase)• 126 reportable benchmarks
Executive Survey
Executive Survey
• Improved ease of use of the Survey Questionnaire and Audit Workbook for participants
• Provided PDF version Benchmark Manual and SIRS Guide with data submission materials
• New compensation fields added to the survey output: Sales Incentive Eligibility, Sales Incentive Target Percentage, and Target Total Cash Compensation
• Added North Carolina to Standard Geographic Location market scopes• Added the ability to run analysis in PayMonitor based on Job Family, Category
and Level• In the Executive Survey, enabled Quick Report and pre-defined query analysis
capabilities in PayMonitor
• Improved ease of use of the Survey Questionnaire and Audit Workbook for participants
• Provided PDF version Benchmark Manual and SIRS Guide with data submission materials
• New compensation fields added to the survey output: Sales Incentive Eligibility, Sales Incentive Target Percentage, and Target Total Cash Compensation
• Added North Carolina to Standard Geographic Location market scopes• Added the ability to run analysis in PayMonitor based on Job Family, Category
and Level• In the Executive Survey, enabled Quick Report and pre-defined query analysis
capabilities in PayMonitor
2012 Enhancements
2012 Enhancements
SIRS® Benchmark Survey database shows continued growth and expansion• 512 participating organizations (94% retention rate; 2% participation increase)• 1.6M incumbents (4% increase)• 1,052 reportable benchmarks• The Life Sciences industry participation grew by 5% in both the number of
participating organizations and the total number of incumbents
SIRS® Benchmark Survey database shows continued growth and expansion• 512 participating organizations (94% retention rate; 2% participation increase)• 1.6M incumbents (4% increase)• 1,052 reportable benchmarks• The Life Sciences industry participation grew by 5% in both the number of
participating organizations and the total number of incumbents
Benchmark Survey
Benchmark Survey
MERCER 4September 17, 2012 4September 17, 2012
Mercer SIRS® Survey Process What is the Data Exchange Agreement (DEA)?
Tool used for sharing company profile information, selecting peer groups and executing Data Exchange Agreements (DEAs) with other participants
Requires annual update of company profile
Requires participants to select a peer group and send data exchange agreement requests annually
Enables others to view participating company’s demographics and company descriptions
Provides companies opportunity to share line detail informationby requesting to have a DEA
Companies can deny or accept such invitationsData Exchange Agreement is a reciprocal agreementConfidentiality is maintainedSafe Harbour Guidelines are strictly abided byExchange Agreements must be established every yearSufficient amount of DEAs are required
Companies can deny or accept such invitationsData Exchange Agreement is a reciprocal agreementConfidentiality is maintainedSafe Harbour Guidelines are strictly abided byExchange Agreements must be established every yearSufficient amount of DEAs are required
MERCER 55
Mercer SIRS® Survey ProcessWhat is the Data Exchange Agreement (DEA)?
Open from April to June
Companies who do not submit a peer group in the data exchange will not receive …
Planned changes and improvements for 2013
Enhanced “User Guide” will be easy to locate and detailed instructions will be communicated at the beginning of the processSystem modifications, such as allowing participants to select multiple peer groups at same time
Enhanced “User Guide” will be easy to locate and detailed instructions will be communicated at the beginning of the processSystem modifications, such as allowing participants to select multiple peer groups at same time
Once closed, no new exchange agreements can be executed for current survey cycle
Peer group pre-loaded in PayMonitorPeer Group Report (including line detail)Levels Analysis Report
Peer group pre-loaded in PayMonitorPeer Group Report (including line detail)Levels Analysis Report
DEA reopens as a read-only directory of company information and contactsDEA reopens as a read-only directory of company information and contacts
MERCER 66
Mercer SIRS® Survey ProcessWhat is PayMonitor?
Web-based analytical tool to quickly access market data using template reports or custom reports you create specific to your needs
Secure and confidentialunique ID and password for system to recognize you and your organization
Results are online as soon as report results are availableaccess 24/7
Three ways to access data
Published survey reportCustomized market comparisonsReport Wizard to customize report templates and output
Published survey reportCustomized market comparisonsReport Wizard to customize report templates and output
MERCER 77
Mercer SIRS® Survey ProcessWhat is PayMonitor?
Customize reports in three easy steps
Step 2: Select market using predefined Industry, peer group, or geographic areasselect specific revenue data cut, create analysis based on industry, geography, and other factors*
Step 3: Run reportrequest the system to age survey results or compare your data to the market dataprint or export results to PDF or Excel; including Report Appendix that summarizes selections
Training
Online user guideKnowledge base of articles and detailed instructions for accomplishing specific tasksClient Contact Center
Online user guideKnowledge base of articles and detailed instructions for accomplishing specific tasksClient Contact Center
Step 1: Select benchmarks you want to analyzeview benchmark descriptions, highlight submitted benchmarks or create “blended/hybrid” jobs
*Some market selections require Premium PayMonitor access
MERCER 88
PremiumStandard
Mercer SIRS® Survey ProcessPayMonitor Options
• Access for 2 users
• One peer group
• One industry cut
• One Peer Group Report
• One Levels Analysis Report
• Standard geographic cuts
• Some interactive analytical capability:– Compare My Data– Aging– Exporting
Everything in Standard, PLUS …
• Unlimited peer groups– Each peer group request must be approved and
meet Mercer standards:- at least 10 organizations- at least 8 distinct organizations- at least 4 different organizations compared to
any other peer group
• Access to 19 industry and sub-industry cuts
• All geographic locations including city and state
• Additional market selections including revenue, headcount, organization ownership and more
• Full analytical flexibility to combine/create statistics based on any queries and filters
MERCER 9
The Mercer Workforce Intelligence Network:
• An easy-to-use interactive search and analysis tool
• Access your survey results across industry and across borders
• Unlimited, free peer cut reports, on the fly, for participants
• Ability to compare your submission to the market instantly
• Produces charts, graphs and reports at the click of a button
• Refine the results exactly the way you want
• And more
The Mercer Workforce Intelligence Network:
• An easy-to-use interactive search and analysis tool
• Access your survey results across industry and across borders
• Unlimited, free peer cut reports, on the fly, for participants
• Ability to compare your submission to the market instantly
• Produces charts, graphs and reports at the click of a button
• Refine the results exactly the way you want
• And more
99
Mercer SIRS® Survey ProcessMercer WIN®
SIRS® is currently exploring the feasibility of transitioning from PayMonitor to WIN in 2013You may already have access to other US or global Mercer surveys in WIN
MERCER 10
• MLS Provides clients with consistent regional methodologyreport delivery through Mercer WIN®
deep industry databasesbroad market and job coverage
• MLS will have enhanced data levels and more reportable benchmarks compared to current SIRS®
International reports.
• MLS Provides clients with consistent regional methodologyreport delivery through Mercer WIN®
deep industry databasesbroad market and job coverage
• MLS will have enhanced data levels and more reportable benchmarks compared to current SIRS®
International reports.
• SIRS® International for Europe and Canada will be transitioned to the Mercer Life Science (MLS) Survey for the 2013 survey cycle.
• SIRS® International in Latin America, including Puerto Rico, is still under discussion.• Mercer is comparing the SIRS benchmarks to MLS to ensure consistency and will provide a
translation table for SIRS benchmarks and levels to MLS.• The fee structure will change to a per-country cost.
• SIRS® International for Europe and Canada will be transitioned to the Mercer Life Science (MLS) Survey for the 2013 survey cycle.
• SIRS® International in Latin America, including Puerto Rico, is still under discussion.• Mercer is comparing the SIRS benchmarks to MLS to ensure consistency and will provide a
translation table for SIRS benchmarks and levels to MLS.• The fee structure will change to a per-country cost.
• MLS brings all of Mercer’s industry-specific and general industry data together under a single harmonized methodology.
• MLS covers 32 markets.• The MLS survey benchmarks are coded using Mercer Universal Position Coding System (MUPCS),
and International Position Evaluation (IPE) output is produced in all EMEA countries.• Compensation data consists of base salary, variable pay, and any other guaranteed cash payments.
• MLS brings all of Mercer’s industry-specific and general industry data together under a single harmonized methodology.
• MLS covers 32 markets.• The MLS survey benchmarks are coded using Mercer Universal Position Coding System (MUPCS),
and International Position Evaluation (IPE) output is produced in all EMEA countries.• Compensation data consists of base salary, variable pay, and any other guaranteed cash payments.
10
Mercer SIRS® Survey ProcessSIRS® International & Mercer Life Sciences Survey
Why change?
Why change?
What’s changing?
What’s changing?
What is the MLS Survey?
What is the MLS Survey?
MERCER 1111
Mercer Life Science Survey
Separate Mercer industry offering
No industry offering
Mature Markets
Belgium
Canada
Denmark
France
Germany
Ireland
Italy
Netherlands *
Portugal
Spain
Sweden
Switzerland *
United Kingdom
Emerging Markets
Algeria
Bulgaria
Czech Rep.
Egypt
Gulf Region
Hungary
Levant Region
Morocco
Poland *
Romania
Russia
Saudi Arabia
Serbia
Slovakia
Tunisia
Turkey
Ukraine
(*) available combined with comprehensive benefits survey
Mercer SIRS® Survey ProcessSIRS® International & Mercer Life Sciences Survey (MLS)
MERCER 1212
Mercer SIRS® Survey ProcessQuestions and Comments
Thank you for your continued support and participation
Please continue to provide us with
feedback
LIFE SCIENCES RESULTS MEETINGINDUSTRY TRENDS
MERCER 14
Industry Trends Life Sciences Perspective
Life Sciences IndustryLife Sciences Industry
• Agricultural Science• Animal Health• Biotechnology• Contract Healthcare
Services• Medical Devices• Pharmaceutical
• Agricultural Science• Animal Health• Biotechnology• Contract Healthcare
Services• Medical Devices• Pharmaceutical
Overall Industry Perspective
Consolidation will continue to take place as established companies strive to
improve product pipelines and portfolios.
FDA authority expanding; regulating approximately a quarter of the US
economy.
Growing patient awareness, copayment models, and subsequent increases in
patient influence/voice regarding treatment decisions.
Social media bound to play more prominent role; FDA is taking social
media seriously and has embraced its use with eight Twitter feeds.
MERCER 15
Industry Trends Biotechnology Perspective
BiotechnologyBiotechnology
• Personalized medicine• Nearly 31% of the
molecules in R&D are cancer and auto-immune
• Venture funding in the domestic biotech sector topped $4.7B in 2011, 22% more than 2010
• Personalized medicine• Nearly 31% of the
molecules in R&D are cancer and auto-immune
• Venture funding in the domestic biotech sector topped $4.7B in 2011, 22% more than 2010
Industry Trends
After seeing tightening of R&D budgets with a greater focus on revenue in the past few years, 2011 saw an increase
of 6% in R&D spending and jobs.
Several biotech companies are also moving into biosimilars (large molecule drugs) as follow-on manufacturers do
not have access to the molecular clone, cell bank or fermentation and
purification process.
MERCER 16September 17, 2012
Industry Trends Medical Devices Perspective
Medical Devices Medical Devices
• Diagnostic companies will increase in importance as gene chips are used to “personalize”drug therapy
• Increased medical device and pharmaceutical partnerships/alliances as devices are used as drug delivery methods
• FDA Safety and Innovation Act doubles the charge medical device companies will pay the FDA in exchange for the promise of a faster approval process
• Diagnostic companies will increase in importance as gene chips are used to “personalize”drug therapy
• Increased medical device and pharmaceutical partnerships/alliances as devices are used as drug delivery methods
• FDA Safety and Innovation Act doubles the charge medical device companies will pay the FDA in exchange for the promise of a faster approval process
Industry Trends
Patient Protection and Affordable Care Act (PPACA) Health Care Law is threatening to decrease
Medical Device Companies’ US manufacturing presence through
taxing revenues, prompting companies to cut jobs and move
factories to other countries.
MERCER 17
Industry Trends Pharmaceutical Perspective
PharmaceuticalPharmaceutical
• Global sales expected to expand 6–9% in 2012, to over $960B
• US sales account for 33%, Europe 15%, Japan 11%, emerging markets 15% and all others 19%
• Industry-expanding shift for clinical trial studies toward low-cost countries
• Global sales expected to expand 6–9% in 2012, to over $960B
• US sales account for 33%, Europe 15%, Japan 11%, emerging markets 15% and all others 19%
• Industry-expanding shift for clinical trial studies toward low-cost countries
Industry Trends
Patent cliff expected to hit the big pharmaceutical companies
through 2014 is causing reshaping and restructuring.
Increasing M&A activity between Pharmaceutical and Biotechnology
companies, blurring the line of distinction between the two sub-
industries.
Patient Protection and Affordable Care Act will be generating 30M
new customers.
LIFE SCIENCES RESULTS MEETINGECONOMIC CONTEXT
MERCER 19
Economic Context Key Indicators for the United States Economy
Indicator 2008 2009 2010 20112012
Projected
Real GDP Worldwide 2.9 3.7 3.5 4.0 3.1Real GDP US -0.4 -3.5 3.0 1.8 2.1Inflation (CPI) 3.8 -0.4 1.6 3.2 2.1Unemployment Rate 5.8 9.3 9.6 8.9 8.2
Source: www.bls.gov
MERCER 2020
Economic ContextAverage Base Salary Percent Increase
On average, base salary increases for SIRS® Life Sciences organizations are leading CPI.
2012 SIRS® Life Science Average Salary
Increase = 2.4%*2012 Inflation
Increase = 2.1%
* Salary Increase Source: Mercer SIRS® 2011 and 2012 Benchmark Surveys effective April 1 of calendar year (excluding Sales and U coded benchmarks)
MERCER 2121
Economic ContextInflation and Base Salary Increases
Continued alignment of general industry and life sciences base salary increase budgets, both forecast to stay above CPI in 2013.
Inflation Source: Current Consumer Price Index published monthly by the Bureau of Labor Statistics (BLS)
Salary Increase Source: Mercer US Compensation Planning Survey
LIFE SCIENCES RESULTS MEETING2012 SURVEY RESULTS AND TRENDS
MERCER 23
2012 Survey Results and Trends Key Findings• The industry has prioritized product and compliance training as well as process
improvement in the quality and manufacturing areas resulting in large population growth in Engineering and Sciences Support, Manufacturing and Quality job families.
• Companies are in the process of implementing shared services models and investing in outsourcing services; the survey will continue to show a reduction in reported employees in Communications and IT job families.
• There is a close alignment in the median base pay levels for the Technical and Administrative categories. As companies face cost constraints and potential changes in compensation philosophy and peer group comparisons, the survey expects to show a wider gap in the pay lines for the Administrative positions compared to Technical category.
• As companies deal with limited budgets, reward and recognition have become even more essential to compensation leading to increased use of dual career ladders across most job families. The survey shows one degree of separation between SIRS® levels for management and individual contributor roles based on average base salary.
MERCER 2424
2012 Survey Results and Trends Sub-Industry Participation Distribution
Number of Incumbents: 541,864
Sub-Industry Organizations Participating
Number of Incumbents
Agricultural Sciences 9 17,047
Animal Health 12 9,482
Biotechnology 28 27,619
Contract Healthcare 27 75,195
Medical Device 73 162,648
Pharmaceutical 84 249,873
Total 233 541,864
MERCER 2525
2012 Survey Results and Trends Job Category and Family Incumbent Distribution – Life Sciences
Number of Incumbents: 541,864
Job FamilyNumber of
Incumbents% change from 2011
Sales 116,728 6.2%Engineering and Sciences 82,802 2.5%Manufacturing 73,000 8.8%Information Technology 36,218 -5.6%Quality 34,356 11.8%Material and Distribution 30,347 4.9%Engineering and Sciences Support 26,235 29.2%Marketing 23,321 0.2%Fiscal 22,649 3.3%Administrative Services 21,391 -4.5%Legal and Regulatory 18,381 5.8%Facilities 11,158 8.2%Technical Product Support 10,544 -7.0%Strategy and Planning 9,736 0.4%Human Resources 9,216 4.7%Procurement 5,118 -0.7%Contracts 4,006 3.9%Communications 2,926 -30.8%Environmental, Health and Safety 2,433 10.1%Security 788 -5.1%
Engineering & Sciences Support, Manufacturing and Quality showed the largest growth in incumbents, while Communications and IT saw a reduction in reported employees.
MERCER 2626
Support Administrative Technical Management
Medical Devices lags both Biotechnology and Pharmaceutical pay levels on average across all categories.
75th %ile
25th %ile
MedianAverage
2012 Survey Results and TrendsSub-Industry Analysis
MERCER 2727
2012 Survey Results and Trends All Life Sciences: Administrative
75th %ile
25th %ile
MedianAverage
The Administrative category shows an average mid-point base salary progression of 30% between each level step, consistent with 2011.
MERCER 2828
2012 Survey Results and Trends All Life Sciences: Technical
75th %ile
25th %ile
MedianAverage
The Technical category is closely aligned with the Administrative median base salary and ranges by level.
MERCER 2929
2012 Survey Results and Trends All Life Sciences: Management
75th %ile
25th %ile
MedianAverage
In creating a dual career ladder for a job family, the data shows a single SIRS® level separation between management and individual contributor roles when looking at average base salary.
MERCER 3030
2012 Survey Results and Trends All Life Sciences
Interquartile Range (25th to 75th percentile)
All Functions Median = $79.7
Legal & Regulatory and Marketing show highest median base salary overall across categories.
MERCER 3131
2012 Survey Results and Trends Pharmaceutical
Interquartile Range (25th to 75th percentile)
All Functions Median = $92.5
Pharmaceutical pays higher than overall Life Sciences for most job families except Manufacturing.
MERCER 3232
2012 Survey Results and Trends Biotechnology
Interquartile Range (25th to 75th percentile)
All Functions Median = $89.6
Compared to other job families within biotechnology, marketing jobs are paid the highest.
MERCER 3333
2012 Survey Results and Trends Medical Device
Interquartile Range (25th to 75th percentile)
All Functions Median = $69.1
The spread of pay within a job family is generally smaller within Medical Devices than other sub-industries.
MERCER 3434
2012 Survey Results and Trends: Geographic Base Salary Differences Life Science Industry Non-Support* Benchmarks
6%
-8% -9% -5%
-13%-8%
7%9%
-15%
Compared to all SIRS® Life Sciences, average base pay is lowest in the South and highest in the Northeast.
* Includes Administrative, Technical, and Management benchmarks
MERCER 3535
2012 Survey Results and Trends: Geographic Base Salary Differences Life Sciences Industry Support* Benchmarks
4%
-8% -5% 1%
-13%-7%
11%12%
-16%
Geographic base pay differences for Support roles are similar, however show more variance.
* Includes Office/Clerical, Production/Maintenance, and Technician benchmarks
LIFE SCIENCES RESULTS MEETINGYEAR-OVER-YEAR TRENDS
MERCER 37
Year-over-Year TrendsMethodology
• Constant 2011–2012 population– By Company, Benchmark Code and Level
• Incorporates Job Family Changes– Public Relations to Communications
• Incorporates Benchmark Code Changes– T116 Healthcare Economics Analyst moved to T188 Health Economics– T003/S078 Sales-Diagnostic moved to T004/S080 Sales-Medical
Devices
• Excludes Subfamily 04.04– Sales Positions
• Excludes Licensed Professionals– U-Coded Benchmarks
Changes in base salary and total cash may reflect a combination of factors (staffing changes, promotions, individual increases)
Changes in base salary and total cash may reflect a combination of factors (staffing changes, promotions, individual increases)
MERCER 3838
With the increased focus of organizational resources on quality, this key area shows the largest growth in incumbent population.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year TrendsIncumbent Population Growth By Job Family – All Life Sciences
MERCER 3939
The largest growth for management roles was within the Contracts and Marketing job families.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year TrendsIncumbent Population Growth By Job Family – Management
MERCER 4040
The Administrative category shows strong growth for individual contributor roles within Quality.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year TrendsIncumbent Population Growth By Job Family – Administrative
MERCER 4141
Organizations are increasing their HR technical-based individual contributor populations.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year TrendsIncumbent Population Growth By Job Family – Technical
MERCER 4242
The overall IT incumbent population drop is driven largely by Support category benchmarks.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year TrendsIncumbent Population Growth By Job Family – Support
MERCER 4343
2.1% base salary increase across all categories –Largest increases in Contracts and Human Resources job families.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year TrendsBase Salary Increases By Job Family – All Life Sciences
MERCER 4444
2.5% total cash compensation increase across all categories –Largest increases in Contracts and Communications job families.
* Top Job Growth job families analysis include only those benchmarks with sufficient amount of incumbents matched. Data includes common organizations, common benchmarks across both years.
Year-over-Year Total Cash Compensation Increases By Job Family – All Life Sciences
LIFE SCIENCES RESULTS MEETINGINCENTIVES ANALYSIS
MERCER 46
Incentives AnalysisKey Findings
• The shift away from stock options and towards performance awards that are earned based on achieving performance goals continued in 2012.
• As the industry looks to re-build sustainable pipelines with high value products, R&D organizations are focusing on actively balancing resources across the pipeline. The data indicates a change in eligibility that is more centered on longer term performance and commitment from the scientific/engineering staff. In 2012 Technical category showed a decrease in STI eligibility of 15% and 11% for levels 3 and 4, compared to an increase in LTI eligibility of 10% and 14% respectively.
• LTI eligibility is not as common at lower levels of management as STI. One contributing factor is the 2008 SEC ruling that requires companies disclose their performance measures and goals as well as resulting payout levels.
• As expected, short and long term variable pay make up more of the total package for administrative, technical and management categories as roles become more senior.– Management category benchmarks show increases from 15% of total direct
compensation at SIRS® level 3, up to 43% by SIRS® level 7.
MERCER 4747
Incentive Analysis: Target and Actual Short-Term Incentives Plan Payout Analysis
On average, there was no significant change to target bonus award levels, however more incumbents were paid out at less than target in 2012 than the prior year.
*Data reflects incumbents who were eligible for short-term incentives and provided target information in the 2011 and 2012 SIRS Benchmark Survey
Incentive Plan Payout -Percent of Incumbents No Payout
Less than Target At Target
More than Target
2011 Survey* 10% 23% 34% 33%
2012 Survey* 10% 29% 29% 32%
MERCER 4848
Incentives Analysis: Long-Term IncentiveEligibility by Plan Type
The prevalence of Performance Shares/Share Units rose while the prevalence of Stock/Share Options and Restricted Shares/Share Units decreased
top related