2017 Compensation and H.R. Surveys General Membership Webinar - - PowerPoint PPT Presentation

2017 Compensation and H.R. Surveys General Membership Webinar September 7, 2017

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AGENDA

• Business Challenges
• Solution
• Confidentiality
• Survey Report
• Survey Participation
• New for 2017
• How To Use Data

AGENDA

• Sample Data
• HR Practices Survey

– Bonus/Incentive – Field Worker Incentive Plans – Merit Budgets

• 2018 Survey
• Next Steps

• Finding and growing great talent
• Employee retention/engagement
• Large number of retirements anticipated as well as continued

millennial job-hopping

• Competition from other industries
• Hiring and retaining the right employees in the face of

high growth

• Fierce talent competition shifting the balance of power to

candidates

• Improving company culture and fighting attrition for

newly trained employees

• Shortage of farm labor workers

BUSINESS CHALLENGES

• As competitive markets tighten, the need

for a Total Rewards strategy becomes more pronounced

• Part of your Total Rewards strategy is a

compensation strategy

• A comp strategy is about being intentional with your comp

spend

SOLUTION

• A comp strategy factors in every comp driver

– Culture, performance, hot jobs, and even hot geographic markets

• How do organizations take the nature of competitive jobs

into account when planning their compensation strategy?

– You guessed it – SHOW THEM THE MONEY – How? Typically target pay higher in the competitive market

• Top-performing companies are strategic in their approach to
• compensation. They know peanut butter is a sandwich

topping, not a salary practice

SOLUTION

• How do you develop a compensation strategy

absent competitive market data? YOU DON’T

• What was once thought of as a tactical exercise is

becoming a centerpiece of business

• Compare your pay to the market
• Conduct a market study – use 2 to 4 sources

ENTER WESTERN GROWERS COMPENSATION AND HR PRACTICES SURVEYS

SOLUTION

• Your data is submitted and stored on a secure server
• Individual company data is seen only by

PEOPLEMatters

• Individual company information is not reported or

identified

• Survey data is summarized and reported in the

aggregate

Your Data Is Protected and Kept Confidential

Our Responsibility

NOTICE OF SURVEY CONFIDENTIALITY

Use of this survey and all subsequent data reporting should be considered confidential. The survey participant and/or authorized purchaser of the data has the right to use the data in the regular course of business solely for its own internal use. The survey participant and/or authorized purchaser acknowledges the survey instrument and methodology are the intellectual property rights of PEOPLEMatters Compensation Resources, and the survey results/report are confidential and the proprietary rights of Western Growers Association. As a survey participant or purchaser, you may not copy, forward, sell, distribute or otherwise disclose any part of this survey format or data without the written permission of Western Growers Association.

Your Responsibility

The 2017 Compensation and HR Practices surveys are one example of the valuable services provided by Western Growers to its membership. Survey results are free of charge for

• participants. All associated costs are underwritten by Western Growers.

The survey results summary reports are designed to provide users with cash compensation data and Human Resource policy and practice benchmarking information specific to the produce industry. The user can use this competitive data as a resource for comparing total annual cash compensation levels and H.R. program offerings and benefit plan data with their peers. When comparing your cash reward programs to that of the industry, it is important to remember that the data published in this report should be used as a guideline. A number of factors influence your pay decisions. For instance, your total reward philosophy may be to invest more heavily in employee benefit plans as opposed to offering higher levels of cash

• compensation. Additionally, company size, location, and other criteria all contribute to

determining your employment offerings. IMPORTANT: This survey data should be used as a point of reference to the competitive market to assist you in reviewing your compensation philosophy, pay programs, and H.R. programs and benefit plans.

SURVEY REPORT

SURVEY PARTICIPATION

• It’s a time commitment….with a big pay-off

– FREE Survey Results – Data to support:

• Crafting your Total Rewards/Compensation strategy
• Managing your payroll costs
• Making day-to-day pay decisions
• HR program design

COMPENSATION SURVEY PARTICIPATION

• Two ways to participate

– Complete survey online – Submit your data using Excel webform

ONLINE SURVEY - DASHBOARD

• 1. Demographics
• 2. Jobs
• 3. HR Survey

ONLINE SURVEY - DEMOGRAPHICS

Edit Company Demographics

ONLINE SURVEY - JOBS

Add Jobs

1 2 3

ONLINE SURVEY - JOBS

Job Details

ONLINE SURVEY - PAY

Pay

ONLINE SURVEY - AUTOMOBILE

Automobile

ONLINE SURVEY – HR SURVEY

Complete HR Survey

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Survey Title Your Company's Job Title Reports To Home Base Scope Management Responsibility Managed Employees Hourly/Salaried Hourly Rate Annual Base Pay Bonus Bonus Paid Bonus Frequency Overtime A/P Clerical AP Clerk 1 General Acctg Mgr CA Equal to No Hourly $14.50 Yes 500 annual yes A/P Clerical General Acctg Mgr CA Equal to No Hourly yes

USE EXCEL TO SUBMIT SURVEY DATA

Blue columns = fields with drop down menus to select responses Yellow fields = variable data to change for multi-incumbent jobs

2017 SURVEY PARTICIPATION

2016 Survey 2017 Survey Comp Survey Participants 75 94 HR Survey Participants 60 66 New Comp Survey Participants 21 companies 28% of survey 34 companies 36.2% of survey Repeat Comp Survey Participants 54 companies 72% of survey 60 companies 63.8% of survey Survey Repeat Participation Rate 56.3% 78.9%

Pay data for 3,000+ employees classified in 70 different job titles

NEW FOR 2017 HR PRACTICES SURVEY

• New section added for Hourly Field Workers
• Surveys piece rate programs, incentive and

benefit programs, and Farm Labor Contractor pay for general laborers

• Health Care Section
• Updated and expanded to collect data more

pertinent to ACA

NEW FOR 2017 COMPENSATION SURVEY

• New survey module added for Hourly Field Jobs
• FELS Survey discontinued
• Western Growers decision to be replacement provider
• 13 jobs added to survey to provide expanded

product/service for membership

NEW FOR 2017 COMPENSATION SURVEY

• Refined revenue scope criteria for reporting survey results
• More representative of WG membership participation; pay reflective
• f competitive market within revenue category

Revenue Scope 2016 % Participation 2017 % Participation

< $5 Million N/A 12.8% $5 - $20 Million N/A 16.0% < $20 Million 26.0% N/A $20 - $50 Million 25.0% 22.3% $50 - $100 Million 16.0% 20.2% $100 - $200 Million 13.0% N/A $100 - $250 Million N/A 11.7% $200+ Million 20.0% N/A $250+ Million N/A 17.0%

PARTICIPANT DEMOGRAPHICS BY REVENUE

12.8% 16.0% 22.3% 20.2% 11.7% 17.0% < $5 Million $5 - $20 Million $20 - $50 Million $50 - $100 million $100 - $250 Million $250+ Million

• Survey provides you with competitive pay data –

specific to your industry – by company size (revenue), type of business, and geographic location

• Make this data work for you when….
• Hiring a new employee
• Promoting an employee
• Creating a new job for your organization
• Determining merit increases
• Conducting a pay equity evaluation by job
• Determining your compensation philosophy
• Determining the compensation mix for jobs (amount of base

pay and incentive pay as a % of total annual cash compensation)

How To Use and Interpret Compensation Survey Data

PAY RECAP BY JOB - SAMPLE

2017 SURVEY DATA

ANNUAL BASE PAY ANNUAL PAID INCENTIVES * TOTAL ANNUAL CASH COMPENSATION 25th 50th 75th 25th 50th 75th 25th 50th 75th Job Title %ile %ile Average %ile %ile %ile Average %ile %ile %ile Average %ile

Accounts Payable Clerical $34,346 $39,520 $41,115 $47,580 $1,500 $2,147 $2,486 $3,500 $35,360 $41,160 $42,834 $48,616 Accounts Receivable Clerical $37,440 $45,000 $45,522 $51,896 $2,000 $2,550 $3,347 $3,500 $37,440 $46,260 $47,621 $55,012 Administrative Assistant $37,487 $45,540 $52,653 $60,611 $1,851 $3,300 $4,529 $4,400 $37,522 $49,079 $56,373 $64,149 Agronomist $80,975 $96,363 $101,305 $121,884 $4,400 $5,000 $10,895 $12,070 $84,300 $107,266 $109,229 $129,453 Area Manager $100,538 $117,247 $130,200 $147,558 $15,116 $30,500 $35,572 $44,000 $122,697 $155,000 $163,035 $187,704 Bookkeeper $41,340 $50,250 $51,862 $60,450 $1,125 $2,928 $5,814 $6,942 $47,728 $56,447 $56,222 $64,100 Cold Storage Manager $76,618 $91,387 $92,843 $112,574 $4,400 $15,000 $20,559 $32,000 $78,118 $114,060 $109,731 $125,713 Controller $100,000 $120,000 $118,020 $133,258 $6,588 $15,000 $21,538 $31,250 $106,065 $129,975 $134,695 $151,519 Dock Foreman $31,668 $44,236 $50,212 $71,630 $1,038 $3,450 $4,297 $5,375 $33,400 $44,236 $52,926 $76,130

PAY HIERARCHY - SAMPLE

Base Pay % of * Total Annual Cash % of CEO Job Title Average CEO Pay

Job Title

Average Total Cash

CEO (Non-Owner) $292,304 CEO (Non-Owner)

$375,094

Area Manager $130,200 44.5% Area Manager

$163,035

43.5% Controller $118,020 40.4% Controller

$134,695

35.9% Refrigeration Mechanic Senior $107,879 36.9% Refrigeration Mechanic Senior

$115,053

30.7% Vineyard Manager $104,212 35.7% Information Technology Manager

$114,429

30.5% Information Technology Manager $102,765 35.2% Farm/Ranch/Agriculture Manager

$111,742

29.8% Agronomist $101,305 34.7% Cold Storage Manager

$109,731

29.3% Farm/Ranch/Agriculture Manager $94,470 32.3% Agronomist

$109,229

29.1% Cold Storage Manager $92,843 31.8% Vineyard Manager $106,625 28.4%

H.R. Practices Survey Topics

1. Bonus/Incentive Programs 2. Merit Increases 3. Salary Structure 4. Austerity Measures 5. Hourly Field Workers 6. Health and Welfare Benefits 7. Work Schedule 8. Retirement Plans 9. Paid Time Off

• 10. Other Benefits

HR PRACTICES SURVEY

Annual Bonus Plan

• 91% of participants (60 companies) offer an annual

bonus plan

• Broad eligibility (in upper quartile) for management and office

employees and 45% offer eligibility to full-time field employees

• Other industry data – from WorldAtWork Survey
• Variable pay – bonus and/or incentive plans –
• Used by 85% of companies as part of their comp strategy
• Emerging trends
• Individual incentive plans – most popular – 60% of survey
• Team incentives – 25% of survey

HR PRACTICES SURVEY – BONUS/INCENTIVE

Annual Bonus Plan

• 16 of the 60 companies have a formal bonus

plan/structure

• Performance metrics and target earnings for achieving metrics

are communicated to employees at beginning of year, as

• pposed to “manna from heaven” bonus awarded on

discretionary basis at year-end

HR PRACTICES SURVEY – BONUS/INCENTIVE

HR PRACTICES SURVEY 2017 VS 2016 TARGET INCENTIVE

HR PRACTICES SURVEY FIELD WORKER INCENTIVE PROGRAMS

HR PRACTICES SURVEY – MERIT BUDGETS

42% of survey participants formally budget for merit increases 7% of survey participants reduced merit budgets for 2017 7% of survey participants increased merit budgets for 2017 86% of survey participants merit budgets remained the same

11% 50% 26% 7% 7% 11% 57% 21% 0% 11%

0% 10% 20% 30% 40% 50% 60% 0-2% 2-3% 3-4% 4-5% 5% +

MERIT BUDGETS

2016 merit budget 2017 merit budget

• Looking forward

– Advisory Board – Expanding field workers section of HR Practices survey – Adding new jobs?

2018 SURVEY

• Purchase Western Growers 2017 Compensation and

HR Practices Surveys

– Contact Karen Timmins, Sr. VP Human Resources – ktimmins@wga.com or 949-885-2295

• Participate in the 2018 survey – 2 reasons

– Your participation robust database – SURVEY RESULTS FREE OF CHARGE

• Encourage your peer companies to participate
• Let us hear from you if you want additional jobs or HR

Practices added to survey

YOUR NEXT STEPS

Fran Mueseler, CCP PEOPLEMatters Compensation Resources 818.324.0035 fran@peoplematters-hrresources.com

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