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![Page 1: COMPENSATION REVIEW AND ANALYSIS SERVICES · PDF fileMercer’s Compensation Review and Analysis Services (CRAS) ... — Conducting data analysis on market competitiveness among peers](https://reader031.vdocuments.site/reader031/viewer/2022011723/5aa773c17f8b9a6d5a8c5db4/html5/thumbnails/1.jpg)
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)
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Copyright 2013 Mercer LLC. All rights reserved. 12427-IS-190913
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For further information, please contact your local Mercer office or visit our website at:www.mercer.com