The Survey Business

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The Survey Business
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Breaking it Down
THE SURVEY BUSINESS
Gather and review relevant market practices
through the use of an appropriate vehicle to
price jobs and develop reward programs, to
monitor, measure, and evaluate their
effectiveness so that resources we dedicate to
employees for their benefit support our
customers, communities, and investorsand the
stock price goes up.
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Analyzing Your Position Compensation
THE SURVEY BUSINESS

• Benchmark job
• A position common to many companies that can be
  used as a basis for measurement and comparison
• Job coverage
• Wide range of job families
• Multiple levels in Management, Professional,
  Support
• Data elements
• Base Salary, Salary Ranges, Variable Pay, Equity,
  Benefits
• Report options
• Survey Totals, Region, Industry, Revenue,
  Headcount
• Selected companies, employees by region, industry
  or combination of both

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Common Calculations
THE SURVEY BUSINESS

• Average
• Weighted average (employee counts)
• Arithmetic average (company counts)
• Distribution of data
• Regression
• Percentiles
• 50th median
• Quartiles/quintiles
• The use of zero
• Diluted vs. undiluted

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Evaluate Data Sources
THE SURVEY BUSINESS

• Where does the data come from?
• How old is the data?
• What job families are included?
• What leveling systems are competing?
• Was the data reviewed, extrapolated?
• Availability of custom cuts of data for peer
  analysis?
• The Radford Network capabilities

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How is Quality Assured?
THE SURVEY BUSINESS

• Input guidelines provided to all participants
• Clear Job Descriptions
• Data submission reviewed against rules
• Compare input to expected values
• Numerical comparisons vs. prior results
• Distribution of matches by job level
• Warning and Fatal errors reviewed by Survey
  Consultants each client receives a call back
• Total survey results logic checked
• Job matching meetings

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Views of the Market
THE SURVEY BUSINESS

• Employers in same
• Geography
• Industry
• Companies of similar
• Organization type
• Revenue size
• Headcount size
• All available data

• Peer companies that
• Make similar products
• Serve similar customers
• Sell into similar channels
• Possesses similar capabilities/attributes
• Demonstrate desired characteristics
• Growth rate
• Profitability
• Return on investment

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Applying the Findings
THE SURVEY BUSINESS

• Design programs that attract, retain and motivate
• Translate people philosophy into
  programs/policies
• Measure competitiveness of programs/spot trends
• Support efforts to legally employ foreign workers
• Prepare for executive compensation/proxy
  disclosures
• Evaluate internal equity with an external
  perspective

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Executing the Plan
THE SURVEY BUSINESS

• Acquire insight into the practices of competitors
  as relates to compensating employees
• Survey says
• Evaluate market practices
• We currently
• Why do we do it that way?
• Does it work?
• If only(think outside the box)
• Refine and customize analysis to support
  recommendations
• Survey supports a decision to
• Evaluate data objectively to reach your
  conclusions

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The Compensation Function
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Some Food for Thought
THE COMPENSATION FUNCTION
HR must take actions that deliver value
remembering value is defined by the receiver more
than the giver. My best advice for any HR
professional is to focus on their strategic
contributions and personal credibility.
Dave Ulrich Leadership Requirements for Life in
the Fast LaneBIO HR Conference, Las
Vegas October 3, 2006
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Compensation Roles
THE COMPENSATION FUNCTION

• Attract effective hiring rates
• Retain competitive salaries/benefits
• Motivate reward and pay for performance
• Fiduciary steward of payroll dollars, shares
• Enforcer FLSA compliance, SEC disclosure
  requirements
• Partner refine programs for business need
• Advocate support employees with fairness
• Trainer/Facilitator help managers to act

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Key Attributes/Skills for Success
THE COMPENSATION FUNCTION

• Organized
• Passionate
• Objective
• Private
• Competent
• Creative
• Efficient
• Conversant
• Flexible

• Listen/Hear
• Translate/Articulate
• Reason/Rationalize
• Advocate/Defend
• Present/Outline
• Condense
• Transform/Customize
• Balance/Prioritize
• Compromise

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Operating Style One
THE COMPENSATION FUNCTION

• Just say No!
• The survey says
• The policy calls for
• Characteristics
• Stick to the numbers
• Plan practices should follow market
• Benchmarks are there for a reason
• The market is the master
• Theoretician
• Bureaucrat

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Operating Style Two
THE COMPENSATION FUNCTION

• Whatever feels right
• No way of tracking ourselves to the market
• We dont know what were doing
• If the candidate wants it, it must be right
• Fateful phrases
• Im busy right now
• Oh no.numbers.take that survey away!

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Operating Style Three
THE COMPENSATION FUNCTION

• The Balanced Partner
• The survey shows.
• The benefits to the business include.
• The risks in that program can be
• Characteristics
• Knowledgeable and objective
• Culturally sensitive/politically aware
• Flexible and conversant

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Questions? Thank You!