submission presentation -

2013 US RETAIL Compensation & Benefits SurveySurvey Submission WebcastAPRIL 4, 2013

Bill StroblLouisville

MERCER 1

Agenda

• Welcome • Webcast Objectives• Survey Overview

– Highlights– Changes– Key Dates

• Survey Process– Participation Materials– Submitting Your Data– Data Cleaning Process & Verification– Confidentiality

• Job Matching Guidelines– Tips– Leveling to Benchmarks

• Questions and Feedback• Appendix – Screen Shots

MERCER 2

Welcome

• Welcome to the Mercer US Retail Compensation and Benefits Surveyparticipation planning webcast

• This is your chance to review the submission materials and get your questions answered

• Your participation is vital to the success of this meeting and the survey results

• Mercer Retail Survey Team

Bill Strobl – Client Relationship Manger [email protected] 561 6985

Annisa Au – Lead Analyst [email protected] 868 2851

Chris Myers – Compensation Operations Lead [email protected] 561 4655

Karen Kinser – Benefits Operations Lead [email protected] 560 8978

MERCER 3

Webcast Objectives

• Provide participants with:– Better understanding of overall survey process– Awareness of what participation involves– Best practices to complete and submit the questionnaire– Tips for easier participation– Important dates and milestones for the survey

• Share guidelines and tips for better job matching

• Provide insight into the data verification process to ensure quality data

• Knowledge sharing and Q&A

US Retail Compensation & Benefits SurveySurvey Overview- Highlights- Changes- Key Dates

MERCER 5

Survey OverviewHighlights

• Conducted in partnership with the National Retail Federation (NRF)

• One data collection spreadsheet for three surveys:– Retail– Apparel and Footwear Manufacturing– Supermarket

• Results delivered through Mercer WIN, our new online data access system

• Survey deliverables:

Compensation Survey Report

Benefits Prevalence

ReportData

Exports

Position & Participant

ListsExecutive Summary

Turnover Report

Year over Year

Analysis

Retail

Apparel

Supermarket

MERCER 6

Survey OverviewChanges

• Eliminated and combined policy and benefits questions

• Eliminated: Degree of Match and Pay Range data

• Pricing: 50% off Apparel or Supermarket with purchase of Retail

Participant Nonparticipant, NRF Member Nonparticipant

Retail (A) $1,300 $2,600 $3,900 Apparel Module (B) $1,400 $4,200 $4,200 Supermarket Module (C) $1,300 $3,900 $3,900 Retail + Apparel (A + ½B) $2,000 $4,700 $6,000 Retail + Supermarket (A + ½C) $1,950 $4,550 $5,850

MERCER 7

Survey OverviewKey Dates

Survey Milestones Mar Apr May June July Aug Sept

Participation Materials Distributed 15

Data Effective Date 1

Survey Participation Webcast 4

Data Submission Deadline 30

Data Cleaning & Audit Workbooks (AWB) Mid Early

Data Processing

Results AvailableRet – 9/5 Sup – 9/6 App – 9/9

Mercer WIN Training Early

Fall Roundtable/Post-Survey Meeting Mid Oct

US Retail Compensation & Benefits SurveySurvey Process- Participation Materials- Submitting Your Data- Data Cleaning Process & Verification- Confidentiality

MERCER 9

Survey ProcessParticipation Materials

• Survey materials can be found at: www.imercer.com/participate– Job matching booklet – Excel questionnaire

• Pre-populated questionnaires have been distributed to 2012 participants – if you haven’t received yours, please email us: [email protected]

http://www.imercer.com/benefitsenrollment

MERCER 10


• Compensation Survey Questionnaire– Excel workbook that collects compensation, policy, and some benefits data – Overview of survey participation process, definitions of data elements collected,

and survey position descriptions– Some positions collect additional data elements allowing for more detailed

information in the results; refer to the Position Descriptions tab

• For 2012 participants, your unique matches (upon request)– Shows the survey positions you matched to last year

• Job Matching Booklet– List of survey jobs by Retail, Apparel, and Supermarket– Job matching tips

• Benefits Questionnaire– Past participants – download your 2012 data from your My Account page on

imercer. Update your data and send in your new SPDs – New organizations - complete the enrollment form at

www.imercer.com/benefitsenrollment and send in SPDs

MERCER 11


Tab 8 – Incumbents

• All compensation data are effective as of April 1, 2013

• Report individual incumbent data only; do not report average data

• Report an incumbent for only one survey position; do not match an incumbent to more than one survey position

• Indicate Hourly or Annual Base Pay data

• Include Full-time or Part-time status for all incumbents

• Bonus data are collected for positions if the incumbent is eligible for short-term incentives– Report “zero” for eligible incumbents who did not receive payouts– If payout amounts are not available, leave blank– Report annualized amounts, covering the most recently completed 12 month

period– Report STI threshold%, STI target %, and STI maximum %, if applicable

MERCER 12

Survey ProcessSubmitting Your Data

• Once your questionnaire is complete, upload it through the secure file upload link in your questionnaire

Useful Tip!

Don’t forget to save a copy of the file for your records!

MERCER 13

Survey ProcessSubmitting Your Data

• You should receive an e-mail confirmation within 24 hours of submitting – if you don’t, please let us know: [email protected] or 1 800 333 3070.

Useful Tip!

If you password protect your file, email the password to us separately at: [email protected]

MERCER 14

Survey Process Data Cleaning Process

• Data cleaning helps ensure all the participants are “on the same page”

Mercer checks each submission for completeness

and accuracy

Mercer performs stringent data

validation routines on each

submission

You review our questions,

update your Audit Workbook, and return to us

within 5 days

Mercer conducts a thorough review and

analysis of the aggregated market data

Mercer approves and finalizes the database to be

used for publication

Mercer prepares questions for

each organization (Audit Workbook) and sends them

for review

Mercer may call you to discuss

specific questions if

needed

MERCER 15

Survey Process Data Verification

• The Audit Workbook is provided in a similar layout to your questionnaire –with the addition of one tab: Audit Summary

• You may need to take action on one or all of the identified tabs

Useful Tip!

Impacted tabs are highlighted in orange for easy identification.

MERCER 16


• Each tab containing issues is in the same format as the questionnaire with four additional columns.

Useful Tip!

Never remove data rows from the Audit Workbook – use the

‘Exclude Row from Survey’ column

MERCER 17

• Cells requiring action are color coded according to the severity or impact to your submission

• Make corrections to highlighted cells only – other changes to data may result in more issues and a need for additional data cleaning


MERCER 18

Survey ProcessConfidentiality

• To ensure the confidentiality of all data, a minimum number of observations is required for variable statistics to display

• Mercer uses the following reporting criteria to ensure the protection of participants’ data:

Statistic # Organizations # Observations # Distinct organizations

Average or mean 3 3 3

10th Percentile 5 10 3


50th Percentile or median 4 5 3



US Retail Compensation & Benefits SurveyJob Matching Guidelines- Tips- Leveling to Benchmarks

MERCER 20

Job Matching GuidelinesTips

Use a variety of resources to ensure a thorough understanding of your jobs

Review the survey position descriptions to determine which positions you will match

• Leverage organizational knowledge– Ask for a second opinion– Talk to line managers– Separate your organization’s jobs by

family for review• Discuss matches with peers and Mercer

• Review internal documentation– Job descriptions– Job evaluations– Organizational charts /

Reporting relationships

MERCER 21

Job Matching GuidelinesTips

• Matching the positions accurately on the front end will increase the value of the data when you receive the results. Like many areas of compensation, matching position content is often more of an art rather than a science.

• Match jobs on content, not title or individual performing the job– Titles and job performance can mislead you

• Hybrid jobs– 60% or more job content, otherwise exclude – Some jobs are too unique to match

Benchmark Position

Your Position

80% Overlap

MERCER

Chief Financial Officer

Controller

Accounting Director

Accounting Manager

Accounting Supervisor

Accounting Specialist

Accountant – Senior

Accountant – Intermediate

Accountant - Associate

22

Job Matching GuidelinesLeveling to Benchmarks

• Many organizations level their positions differently; it is important to match positions by responsibilities included in the position description, not by position title

Manager, Accounting

Accountant II

Accountant I

Mercer PositionsABC USA Inc. XYZ Inc.

CFOSVP AccountingDir Accounting Mgr AccountingAccounting SupvAccounting Bus AnalystAccountant AAccountant BAccountant C (no match)Accountant D

MERCER 23

Questions & Feedback

Thank you for your continued participation.

- The Mercer Retail Team

Bill Strobl – Client Relationship Manger [email protected] 561 6985

Annisa Au – Lead Analyst [email protected] 868 2851

Chris Myers – Compensation Operations Lead [email protected] 561 4655

Karen Kinser – Benefits Operations Lead [email protected] 560 8978

US Retail Compensation & Benefits SurveyAppendix

MERCER

2013 Survey Overview Tab 1: Introduction

25

• Links to the other tabs• Tips for submitting your data and using other versions of Excel• Instructions for submitting your completed questionnaire

MERCER

2013 Survey Overview Tab 2: Guide

26

• Key Dates for submitting your data• Definitions for each field by Tab

MERCER 27

2013 Survey Overview Tab 4: Order - Results and Reporting Tool Access

• Participants will be invoiced when results are delivered• Order additional users

MERCER 28

2013 Survey Overview Tab 5: Organization

• Identifies and captures the organizational scopes for each Division, Subsidiary, and Group

MERCER 29

2013 Survey Overview Tab 5: Organization

Mercer will validate this data based on information available in the public domain.

Key Organization Data to Provide Benefits in the Results

Merchandise Category• 20+ categories to choose from

• Allows you to benchmark against your peers in a specific merchandise category

Total Revenue/Sales• Gross Sales/Revenue

• Allows you to benchmark against organizations of a similar size

Total Headcount (FTEs)• Number of FTEs for Union and Non-union

employees

• Allows you to benchmark against similarly staffed organizations

Total Number of Stores• Number of stores for each entity

• Allows you to benchmark against similarly sized organizations based on the number of stores

Most Prevalent Store Size (by square footage)• Four different categorizes to choose from

• Allows you to benchmark against organizations with similar sized stores

MERCER 30

2013 Survey OverviewTab 6: Pay & HR Practices

Data Collected

• Pay:– Pay Philosophy– Salary Increase Budgets – Salary Structures Adjustments– Incentive Plans– Commissions

• Store Ops & DC:– Differentials & premiums

• HR Practices:– Turnover– Employee Relations Policies– Hours Worked– Dress Code– Emergency Closings– Staffing Ratios– Employee Relocations– Stock Option & Purchase Plan– Work/Life Initiatives– Performance Recognition– Career Opportunities

MERCER 31

2013 Survey OverviewTab 7: Benefits

Data Collected

• Eligibility and cost coverage by plan type and employee group

• Vacation, Sick Leave, and PTO

• Holidays

• Employee Discounts

• Recruiting and Retention Practices

• Company Car Policy

MERCER 32

2013 Survey OverviewTab 8: Incumbents

Mercer Position Code and Title• Match an incumbent only once, to only one Mercer position code• Include only Canadian employees (no expatriates)

Enter the position code

or use the drop-down list

Mercer position title will automatically populate

Alerts you if an invalid Mercer Position Code has been entered

MERCER 33

2013 Survey OverviewTab 8: Incumbents

Base Salary– Please do not submit average data– Multiple rows for multiple incumbents– Enter annual base salary for employees paid on an ANNUAL basis

Annualize pay for employees working a reduced week– Enter hourly rate for employees paid on an HOURLY basis

DO NOT ANNUALIZE HOURLY RATES

Example: If you have four Store Manager matches, report them as follows:

Your Position TitleMercer Position

Code Pay TypeBase Salary (Canadian $)

Store Manager 10006 A 40,100

Store Manager 10006 A 42,200Store Manager 10006 A 39,800Store Manager 10006 A 43,700

MERCER 34

Once complete, save a copyupload through Mercer’s

secure website

2013 Survey OverviewSubmitting Your Data

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