launch of benefits & compensation survey 2010

To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.

2010 AMCHAM Compensation & Benefits SurveyConducted by Hewitt Associates (Thailand) Ltd

8th June 2010

2

Agenda

Summary of 2009 AMCHAM SurveySummary of Participants

Feedback from Participants

Launch of 2010 AMCHAM SurveyWhat the Survey will cover

Survey Process

Timeline

Survey Questionnaire

Sample Deliverables

Additional Offer

Highlights of Hot Topic Survey (March/April 2010)

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Survey Process

Timeline


Sample Deliverables

Additional Offer


4

Summary of Participants

We had a total of 72 participants from the chamber that participated in the survey. The tables below summarizes the industry representation and Headcount of Participants:

Summary of 2009 AMCHAM Survey

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…76% ‘Satisfied’ with survey process/report and 11% ‘Very Satisfied’…

Summary of 2009 AMCHAM Survey

Overall, we received good feedback from participants for the survey process and the post-survey presentation:


Please keep continue this

survey.

Big improvement. Well done! It’d be nice to

expand again to invite other chambers.

Survey format is excellent. I like the

Hewitt format. It would be ideal to include

other chambers in this annual survey to

broaden the base of survey participants.

Best practice sharing

Should do it every year.

Good survey.

Better than before.

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Survey Process

Timeline


Sample Deliverables

Additional Offer


7

What the Survey will cover

Compensation Analysis by Job

Positions(33 benchmark

positions)

Compensation Analysis by Job

Levels

Benefit Prevalence by

Job Levels

Salary Increase Trends

Bonus Trends

Turnover Analysis

Compensation Analysis by *• Revenue Size• Headcount• Industry

* Can only be done if there is sufficient data for each category.

Launch of 2010 AMCHAM Survey

New

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Note : Hewitt will provide Job Descriptions for the job positions to be used for matching of your internal jobs.

Job Levels


What the Survey will cover – 33 Benchmarking Positions

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1. Base Salary1. Base Salary - Annual Base Salary

2. Guaranteed Bonus2. Guaranteed Bonus - Fixed Bonus

4. Guaranteed Pay (1+2+3)4. Guaranteed Pay (1+2+3)

3. Cash Allowances3. Cash Allowances - Cash Allowances

5. Variable Pay5. Variable Pay- Variable Bonus

- Commission

6. Total Compensation (4+5)6. Total Compensation (4+5)

For each position, the following compensation component will be analyzed

Actual Payouts and Target Payout

What the Survey will cover – Compensation Components


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DataAnalysis

DataAnalysis

Data Treatment

Data Treatment

Data Analysis

Data Analysis

Preliminary Analysis

Preliminary Analysis

Report DeliveryReport Delivery

Data Collection

Data Collection

Distribution of Questionnaire

Distribution of Questionnaire

Data Collection & Entry

Data Collection & Entry

Data Clarification & Validation


Report Generation

Report Generation

ReportSubmission

ReportSubmission

Post Survey PresentationPost Survey Presentation

Survey ProcessLaunch of 2010 AMCHAM Survey

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The entire survey process is expected to be completed with the survey presentation in the mid of September.


Timeline

Week

Survey Launch

Distribute Questionnaire

Survey Confirmation

Data Collection


Data Analysis

Reporting

Post Survey Presentation

August September2 3 4

JulyJune31 2 2 33 4 1 2 44 1

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The survey will be conducted in excel (similar to 2009).Questionnaire will be mailed out by Amcham to all members

Completed questionnaire will be mailed directly back to Hewitt

Questionnaire consist of 3 sections (to be completed)Company Profile

Positional Data

Benefits

Survey Questionnaire – Overall


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Covers the following Company Details

Contact Details

Employee Demographics

HR to Employee ratio

Historical Turnover

Salary Increase Timing

Salary Increase – Actual & Projected

Variable / Performance Bonus – Actual & Projected

Employee Performance Distribution

Identification of High Performers

Survey Questionnaire – Company Profile Questionnaire


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Covers all compensation components by Job PositionAnnual Base Salary (THB)Annual Fixed/Guaranteed Bonus (THB)Annual Allowances

Annual Variable/Performance Bonus

Annual Commissions/Sales IncentiveEligibility?Actual received for last financial year (THB)Target for current financial year (in % of Annual Base Salary)

TransportationCar AllowanceMeal AllowanceEntertainmentHousing

ShiftPositionalPhone/MobileOther Cash Allowances

EligibilityActual received for last financial yearTarget for current financial year (in % of Annual Base Salary)

Survey Questionnaire – Positional Data Questionnaire


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Covers the prevalence of the following Benefits by Job LevelRetirement PlanMedical - OutpatientMedical - Inpatient (H&S)DentalOpticalMaternityLife InsuranceAD&DHousing LoanCar LoanOther LoansLong Service AwardCompany Car / Car AllowanceClub MembershipsLong Term Incentive

Provident Fund contribution ratesProvident Fund – Employee Choice practicesBenefits spending (as a % of Base Salary) by Job Level

Survey Questionnaire – Benefits Questionnaire


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Overview of market trends and economy

To provide statistics of participating companies by

Industry representation

Ownership (country of origin)

Number of employees

Launch of 2010 AMCHAM SurveyDeliverable (Standard Report)- Base Salary Analysis By Position

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Deliverable (Standard Report)- Base Salary Analysis By Position

For each Job Position (33 jobs), the Median Annual Base Salary will be provided


Wor

ker

Gen

eral

St

aff

/ Sup

port

Head of Manufacturing

Operations

Accounting/ Financial Manager

Human Resource Manager

Marketing Manager Sales Manager IT Manager Legal Manager Internal Audit

Manager

Prof

essi

onal

/ Exe

cutiv

e

Plant Manager

Head of Finance / CFO

Head of Legal Affairs

Head of Internal Audit

Head of Human Resource

Head of Marketing Head of Sales

Head of Information Technology

2,371,578

Sales Administrative

Assistant

Production ForemanSecretary

Managing Director/Chief

Executive Officer

Marketing Assistant

Accounting/ Finance

Executive

Human Resource Executive

Marketing Executive

Sales Representative /

Executive

IT Consultant / Executive

467,190

2,341,860 3,012,000 1,977,960

Legal Advisor / Executive

Internal Auditor / Executive

1,060,608 1,332,000 1,248,366

2,704,956

Man

agem

ent

Top

Man

agem

ent

1,228,200 1,280,280

2,100,000 2,260,764 1,983,312

1,123,518

682,715562,173449,400

Production Line Manager

3,879,996

413,400 263,820 204,060

516,000448,509487,920491,838

1,036,779 1,631,100

300,000

180,000 164,087 160,612 132,306

Receptionist Production WorkerDriver Messenger

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Deliverable (Standard Report)- Compensation Analysis By Job Level (Median)

For each Job Level, median value of each compensation component will be provided


Top Management Management Professional /

ExecutiveGeneral Staff /

Support Worker

ANNUAL BASE SALARY 2,395,800 1,200,000 507,264 308,933 159,900

Fixed Bonus 189,354 110,932 48,812 26,924 14,102

Cash Allowances 174,000 72,000 24,000 24,000 7,800

TOTAL GUARANTEED PAY 2,596,920 1,377,000 585,000 352,110 176,719

Actual Variable Pay 359,685 174,781 73,305 40,760 17,083

TOTAL CASH 2,867,148 1,518,255 646,307 388,042 189,920

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Deliverable (Standard Report)- Compensation Analysis By Job Level

For each Job Level, the Lower Quartile, Median, Upper Quartile and Average value of each compensation component will be provided


Lower Quartile Median Upper Quartile Average

ANNUAL BASE SALARY 365,014 507,264 695,561 567,074

Fixed Bonus 36,123 48,812 72,853 65,843

Cash Allowances 12,000 24,000 72,600 93,849

TOTAL GUARANTEED PAY 398,479 585,000 793,867 648,007

Actual Variable Pay 41,232 73,305 128,734 108,599

TOTAL CASH 465,698 646,307 898,991 727,394

Professional / Executive

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Deliverable (Standard Report)- Analysis of Bonus By Job Level

Bonus prevalence and practices is analyzed by Level.


Variable Bonus - Target % and Actual Paid (Median Levels)

17%

13%15%

13%

10%

12% 12% 12%

10%8%

0%

5%

10%

15%

20%

Top Management Management Professional /Executive

General Staff / Support Worker

% o

f Em

ploy

ees

Median Target Variable Bonus Actual Amount Paid for last year

Prevalence of Bonus and Allowance Entitlement

56%

87%

69%62%

79%

60%62%

76%

43%

62%

73%

44%

64%68%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fixed Bonus Variable Bonus Eligibility Cash Allowances

Top Management Management Professional / Executive General Staff / Support Worker

Variable Bonus - Eligibility and Actual Paid

87%

79% 76%73%

68%67% 69%66%

60% 58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Top Management Management Professional /Executive

General Staff / Support Worker

% o

f Em

ploy

ees

Var. Bonus Eligibility Actual % of Employee who received Var. Bonus

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Deliverable (Standard Report)- Salary Increase Analysis by Industry & Job Level

Note : Breakdown by industry will also be provided for industries with sufficient number of participants


Lower Quartile Median

Upper Quartile Average

0.0% 4.0% 5.0% 3.1%0.0% 5.0% 5.6% 4.0%0.4% 5.0% 6.1% 4.2%0.1% 5.0% 6.0% 4.3%2.4% 5.0% 5.9% 4.4%3.0% 4.9% 5.6% 4.3%

WorkersOverall

LevelTop ManagementManagementProfessional Staff / ExecutivesGeneral Staff / Support



0.0% 4.0% 5.5% 3.5%2.8% 5.0% 6.0% 4.1%3.0% 5.0% 6.0% 4.2%3.0% 5.0% 6.0% 4.3%3.0% 4.7% 6.0% 4.2%3.0% 5.0% 6.0% 4.3%

WorkersOverall

Top ManagementManagementProfessional Staff / ExecutivesGeneral Staff / Support

Level

Actual Increase

Projected Increase

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Deliverable (Standard Report)- Salary Increase Cycle


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Deliverable (Standard Report)- Turnover Analysis by Job Level & Industry




0.0% 0.0% 11.7% 7.5%0.0% 7.1% 13.7% 11.7%2.8% 10.3% 14.5% 11.8%3.6% 10.5% 15.4% 14.1%3.0% 10.1% 26.0% 17.9%5.5% 11.3% 19.6% 15.1%

Professional Staff / ExecutivesGeneral Staff / SupportWorkersOverall

LevelTop ManagementManagement

Median Turnover by Industry

7%

9%

11%

11%

12%

13%

19%

19%

21%

32%

0% 5% 10% 15% 20% 25% 30% 35%

Chemicals

Electrical/Electronics

Automotive

Banking / Finance / Insurance

Transportation Services / Logistics

Professional Services

Food/Beverage/Tobacco

Computers / Information Technology

Manufacturing

Hospitality / Retail

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Deliverable (Standard Report)- Benefits Prevalence by Job Level


BenefitsRetirement Plan 88% 86% 83% 83% 83%Outpatient- Employee 92% 92% 89% 86% 86%Outpatient- Dependants 50% 47% 42% 39% 36%Inpatient - Employee 93% 93% 92% 92% 89%Inpatient - Dependants 51% 50% 44% 40% 38%Dental 58% 57% 57% 54% 50%Optical 15% 15% 14% 14% 13%Life Insurance 88% 86% 85% 85% 83%AD&D 61% 61% 60% 60% 60%Long Service Award 65% 65% 65% 65% 63%Housing Loan 10% 10% 10% 10% 10%Car Loan 6% 6% 6% 4% 4%Other Loans 17% 17% 17% 17% 17%

PerquisitesCompany Car / Car Allowance 75% 43% 17% 0% 0%Club Memberships 22% 11% 4% 0% 0%

WorkerTop Management Management Professional /

ExecutiveGeneral Staff /

Support

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Deliverable (Standard Report)- Provident Fund Analysis


Flat Contribution Rate

Tiered Contribution RateEmployer Tiered Contribution Rates

0%

2%

4%

6%

8%

10%

12%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year >10

Empl

oyer

Con

trib

utio

n %

Lower QuartileMedianUpper Quartile

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Deliverable (Standard Report)- Benefits Spending


Analysis of Benefits spending as a % of Base Salary

Benefits Spending as a % of Base Salary (Median figures)

30% 30%

20%

27%22%17%

0%

5%

10%

15%

20%

25%

30%

35%

Top Management Management Professional Staff /Executives

General Staff /Support

Workers All Employees

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Deliverable (Standard Report)- Long Term Incentive (LTI)


Eligibility of LTI Plans by Level

19.4%13.9%

8.3% 8.3% 8.3%

20.8%

9.7%

5.6% 1.4%1.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Top Management Management Professional Staff /Executives

General Staff /Support

Workers

Selected Employees in Level

All Employees in Level

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Deliverable (Standard Report)- Other Analysis


HR to Employee Ratio

Performance Distribution

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To provide compensation analysis in more detail

There are 2 options

Comprehensive Report

Custom Report


Additional Offer – Overview

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The comprehensive report will provide more detailed compensationanalysis

Analysis by PositionIn addition to Base Salary, all compensation components will be provided (i.e fixed bonus, allowance, variable bonus etc)

In additional to Median results, the P25 and P75 results will also be provided.

Report Price : Baht 17,500

Additional Offer – Comprehensive Report


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This option allows companies to select their own comparator companies from all participating companies.

Criteria to select own comparator companies can be:Industry

Revenue size

Employee headcount

For particular criteria, a comparator group must consist of at least 8 companies

Report format will be similar to Comprehensive Report

Report Price : Baht 28,000

Additional Offer – Custom Report


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Survey Process

Timeline


Sample Deliverables

Additional Offer


33

Survey conducted by Hewitt Associates in March/April 2010

265 companies participated in the survey across South East Asia (Indonesia, Malaysia, Philippines, Singapore and Thailand)

Background of SurveyHewitt Hot Topic Survey- Attrition and Retention

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Key Findings- Business Outlook

Hewitt Hot Topic Survey- Attrition and Retention

Business Situation in 2008/2009

0%

10%

20%

30%

40%

50%

Significant Decline Slight Decline Business As Usual Slight Improvement SignificantImprovement

Perc

enta

ge o

f Com

pani

es

Indonesia Malaysia Philippines Singapore Thailand

Business Outlook for 2010

0%

10%

20%

30%

40%

50%

60%

70%

Significantly Declining Slightly Declining Stabilizing Slightly Improving SignificantlyImproving

Perc

enta

ge o

f Com

pani

es


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Key Findings- Projected Salary Increase


Indonesia Malaysia Philippines Singapore Thailand8.0% 4.5% 6.0% 3.0% 5.0%8.7% 5.0% 7.0% 3.4% 5.0%9.7% 6.0% 8.0% 4.0% 6.0%8.9% 5.4% 7.1% 3.6% 5.4%Average

Percentile 25MedianPercentile 75

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Key Findings- Voluntary Attrition Rate


Voluntary Attrition By Level in 2009

5% 5%

7% 7%

10%

7%7%

12%

14%

12%

16%

5% 5%6%

10%9%

13%

10%11%

3%

7%

12%

9%

12%

14%

7%

1%

10%

12%

9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Top Executive SeniorManagement

MiddleManagement

Professional Clerical / AdminSupport

Manual Workforce

Perc

enta

ge o

f Em

ploy

ees


Overall Voluntary Attrition in 2009

8.1%

11.6%

14.3%

9.6% 9.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%


Perc

enta

ge o

f Em

ploy

ees

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Key Findings- Job Functions with the Highest Attrition


Top 3 Job Functions with highest Voluntary Attrition in 2009

Sales, 56%

Sales, 31%

Sales, 42%

Sales, 40%

Sales, 45%

Admin, 25%

Finance, 29%

Finance, 39%

Finance, 37%

Production, 30%

Finance, 25%

Engineering, 23%

Call Center, 35%

Technical Support, 17%

Finance, 26%

0% 10% 20% 30% 40% 50% 60% 70%

Indonesia

Malaysia

Philippines

Singapore

Thailand

Percentage of Companies

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Thank You &

We Look Forward To Partnering You…For further details, please contact :

• Surendran Ramanathan | [email protected]• Preeya Singhnarula | [email protected]• Ravjit Singhthavekhoon | [email protected]• Supakorn Nittayanantha | [email protected]• Animesh Mukherjee | [email protected]

launch of benefits & compensation survey 2010

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