competitive pay analysis - aon hewitt
TRANSCRIPT
Competitive Pay AnalysisCompetitive pay structure is critical in attracting and retaining talent
Staff turnover is expensive, and with remuneration typically representing the largest financial investment an organisation will make each year, it is imperative that organisations get it right. Finding the right data sources and conducting analysis in a fluid business context can be a challenge, especially when there are competing demands on HR and Reward professional’s time and resources.
Aon Hewitt delivers value Our pay analysis develops and applies sound methods for benchmarking market remuneration data to provide unbiased assessments of competitive positioning practice. At Aon Hewitt, we not only analyse market remuneration data sources, we interpret the results in the context of our clients’ current and preferred competitive positioning.
Armed with extensive and up-to-date market data for different sectors and job families, we customise competitive pay analysis depending on the size, need, objectives and resources of your organisation.
Flexible and Practical
We can assist you as much or as little as you would like in your remuneration benchmarking exercise, drawing from our experience and wealth of market data.
We can conduct competitive pay analysis for executive teams, strategic job families, an individual role or the whole organisation.
We can do this to support your remuneration review, as part of a targeted review of specific parts of the organisation or on an ad-hoc basis to respond to urgent tactical needs.
Customised
While utilising our market intelligence, experienced Aon Hewitt consultants will develop a deep understanding of your organisation and the market in which you are operating in. In determining your current and preferred competitive positioning, we will assist you in selecting the right peer group and market positioning.
Our customised approach will help you gain a clear understanding of your organisation’s market position and the competitiveness of employees’ remuneration packages. We can identify employees in your organisation who are remunerated at a rate far higher, or lower, than the market norm. If required, we can offer solutions to close any gaps related to such practices.
Aon Hewitt's global compensation database, Total Compensation Measurement™, spans 180 countries, over 550 benchmark positions, and over 5 million incumbents. That’s more than any other compensation data provider worldwide
The Aon Hewitt approach Our advice provides solutions for the most significant competitive pay policy issues, including:
Market positioning: factors to consider when positioning the company-wide pay policy
Fixed pay and benefits: types of flexible benefits applicable to job families and sectors – prevalence, cost and value of benefits
Short and long-term incentives: type and prevalence of incentives, job family and employee group-specific incentives and sector-specific practices
Pay mix: the proportion of fixed pay and incentives within the total pay mix and variations depending on employee groups and job families
Strategic and customised analysis: depending on the needs of your organisation we can design, develop and conduct special diagnostic analysis to find out more about the relationship between internal pay and gender equity, age, seniority or other factors within your organisation.
Aon Hewitt’s reward team relies on its fact-based methodology to help clients design, develop and deliver effective reward programs that establish a direct connection between the organisation’s goals and objectives and an employee’s focus and actions.
Case study – Financial Services Organisation
The client: Major financial services organisation
The issue: Remuneration Committee reported criticism of the existing benchmarks due to the relative importance of certain roles internally that was not mirrored in other organisations.
How Aon Hewitt added value: We supplemented the job benchmarks with role hierarchy analysis of executives in peer organisations. This allowed us to apply a secondary analysis to provide additional context for the Remuneration Committee.
Case study – Engineering Organisation
The client: International engineering organisation
The issue: International data sources were challenging and time-consuming to identify, co-ordinate and analyse. The client required data on operational, professional and executive staff in a number of international locations.
How Aon Hewitt added value: Our international databases covering 45 countries, over 300 globally consistent benchmark jobs and a user-friendly online reporting tool enabled us to deliver the project before the agreed deadline, provide the client with a consistent cross-country comparison, as well as broader context and expert commentary drawn from our reward consultants’ experience in the local markets.
About Aon Hewitt Aon Hewitt is the global leader in human capital consulting and outsourcing solutions. We design, implement, communicate, and administer a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. www.aonhewitt.com
Aon Hewitt Contacts:
Andrew MacLeod+44 (0)207 086 9181
Steve Munday+44 (0)207 086 9213
Nishant Mahajan+44 (0)207 086 9184
aon.co.uk