1. Shared Services Centres in Hungary
Hay Group Sector Compensation Survey

2. All rights reserved. No part of this publication may be reproduced or
used up without the written permission of Hay Group Management
Consultants Ltd.
Hay Group Management Consultants Ltd.
1122 Budapest, Maros u. 12.
Tel: +36-1-393-0000
Fax: +36-1-393-0001
E-mail: survey-hu@haygroup.com
www.haygroup.com/hu
www.haygrouppaynet.com
© 2007 Hay Group. All Rights Reserved 2

3. Introduction

4. Hay Group is a global
consulting firm that
works with leaders to
transform strategy into reality
and to help people
and organizations
realize their potential

5. How we organize our business
Our purpose Helping organizations work
Our practice Building effective Leadership and
Reward services
clusters organizations talent
Learning: online diagnostics
Our service BEO solutions Leadership Executive
lines rewards
Hay Group Transforming
transformation
Job
evaluation
Capability
assessment Reward Information
Performance
Services
management
Talent Reward
management strategies
Hay Group Insight: employee and customer surveys
© 2007 Hay Group. All Rights Reserved 5

6. Who we are in Hungary?
409 20 12 250 000
Partciaipants Sectors Cosultants Individauly salary data
© 2007 Hay Group. All Rights Reserved 6

7. Hay Group methodology
Job Evaluation and Job Mapping

8. Determining a job size
Problem
Total job
Know-how
+ solving
+ Accountability
= size
© 2007 Hay Group. All Rights Reserved 8

9. Identification, comparison of jobs
Field of activity (Job Family)
Job size (reference level)
© 2007 Hay Group. All Rights Reserved 9

10. Participants & database

11. Participanting organizations
32 participating companies with data of 10660 employees
© 2007 Hay Group. All Rights Reserved 11

12. Database structure
Rate of incumbents by job families
Other Payable/
10% Receivable
Procurement
Accounting
4%
17%
Data
Management
General Financial Services
5%
Accounting
35%
HR Services 10%
6%
Financial
Analysis
8%
Customer
Service
19% IT Services
21%
© 2007 Hay Group. All Rights Reserved 12

13. Compensation elements
 Base salary
Includes:
 all cash remuneration paid to an employee on an annual basis and which can be classified as a
“vested cash benefit”.
 monthly salary (12 month salary), any “extra” payment such as 13th and 14th months,
 language premiums, length of service premium, regional allowances, and fees, other special skills
and job premiums, market supplements.
Overtime and shift premiums are not included in base salary.
 Total cash
Includes:
- base salary plus variable cash payments made to employees, such as bonuses. profit
sharing, and commissions.
BASE SALARY + PREMIUMS/BONUS + SALES COMMISSION + COMMISSION = TOTAL CASH
Overtime and shift premiums are not included in total cash.
© 2007 Hay Group. All Rights Reserved 13

14. Salary markets

15. Sector comparison
Average deviaton of median values to all sectors
il
do ce a i al
an an CG ar m str il ty
Ga
s
Fin ICT SS
C
FM Ph Ind
u
R et a U tili
25%
20%
15%
10%
5%
0%
-5%
Base Salary
-10%
Total Cash
-15%
© 2007 Hay Group. All Rights Reserved 15

16. Comparison of regions
Mean deviation of median values compared to the all companies market
– base salary and total cash
Budapest Province
4%
2,0%
2% 1,2%
0%
-2%
-4%
-6%
-8%
-10%
-10,4%
-12%
-12,0%
Base Salary Total Cash
© 2007 Hay Group. All Rights Reserved 16

17. Comparison of job families
Mean deviation of median values compared to the all companies market
– total cash
HR TB FA PA IT GA QA DM CS LSA
7,7% 7,4%
8%
5,8%
4% 2,8% 2,6% 2,4%
0%
-0,7%
-1,6%
-4%
-4,3%
-6,7%
-8%
Legend
PA: Payable/Receivable Accounting IT: IT Services DM: Data Management QA: Quality Assurance
GA: General Accounting CS: Customer Service LSA: Procurement
FA: Financial Analysis HR: HR Services TB: Treasury
© 2007 Hay Group. All Rights Reserved 17

18. Salary policy

19. Age
The following table shows the average age of the employees by employee groups
Age
Managers 36
Team Leaders / Supervisors 29
Vendors / Specialists 27
© 2007 Hay Group. All Rights Reserved 19

20. Graduate salaries
The average gross monthly entry-level base salaries by field of activity
300
290 284
280 275
270 266 265 264
260 258 257
'000 HUF
250
239 239
240
230
220
210
200
Procurement IT Services HR Services Treasury Financial General Customer Pay./Rec. Data
Analysis Accounting Service Accounting Management
© 2007 Hay Group. All Rights Reserved 20

21. Compensation of language knowledge
 66.7% of participants compensate the knowledge of special languages
% of companies providing
higher base salary % of base salary
Norwegian 100.0% 16.3%
Danish 100.0% 16.0%
Swedish 83.3% 15.6%
Dutch 76.9% 17.5%
Polish 66.7% 13.0%
Finnish 66.7% 15.0%
French 61.1% 10.6%
Spanish 57.1% 9.9%
Italian 53.8% 10.9%
© 2007 Hay Group. All Rights Reserved 21

22. Benefits

23. Company cars
Rate of companies offering company cars:
Typical car models:
SSC National
100% 93,1%
85,1%
80% 75,7%
71,4%
Ref.
% of companies
60,7%
level Car Model % of comp.
60% 49,7% 50,0% Ford Mondeo 46.7%
Managers
40% VW Passat 26.7%
17,9% Ford Focus 26.7%
20%
Volvo S60 13.3%
0%
Team Leaders/ Ford Focus 41.7%
Leaders
Team
Supervisors Managers
VW Golf/Jetta 41.7%
 Average car prices are between
5-7 million HUF Ford Mondeo 33.3%
© 2007 Hay Group. All Rights Reserved 23

24. Trainings
 96.4% of participants provide training courses to their employees.
Team
Managers Specialists
Leaders
Job related trainings 82.1% 96.4% 96.4%
Non-job related trainings 64.3% 57.1% 53.6%
Number of days spent on
11.2 11.2 9.9
trainings per year
© 2007 Hay Group. All Rights Reserved 24

25. Cafeteria
 96.5% of participants provide benefits in cafeteria system
 Only 28.6% of companies offer every benefit in cafeteria system
% of % of
Median value of cafeteria
companies employees
SSC National
Holiday Voucher 96.3% 47.8% 400
348
Hot meal allowance 92.6% 74.6% 350
300
300 274 269
Public Transport 88.9% 61.4% 250 255
250
Culture allowance 85.2% 39.7%
200
Voluntary Health 85.2% 50.3% 150
Fund 100
Internet 77.8% 22.3% 50
Subscription 0
Specialists Team Managers
Leaders
© 2007 Hay Group. All Rights Reserved 25

26. Other HR issues

27. Employee turnover
The avearge employee turnover of SSC copmanies was 24.5% in 2008.
Most frequent reasons of turnover Next job of leaving employees
Other;
39,5% 38,6% 2,4%
40% Non SSC;
33,4% 23,8%
30%
20%
SSC -
10%
another
job; 54,0% SSC -
0% same job;
Monotony / Career Compensation
19,8%
Stress
© 2007 Hay Group. All Rights Reserved 27

28. International comparison

29. Analyzed countries
Countries
Czech Republic CZ
Hungary H
Poland PL
Romania RO
Slovakia SK
© 2007 Hay Group. All Rights Reserved 29

30. Analyzed elements
Analyzed element
Taxes, allowances paid by the Gross salary
employee
Cost of living Net salary
Purchasing power of the salary Purchasing
power
© 2007 Hay Group. All Rights Reserved 30

31. International comparison
Vendor / Specialist (Hungary = 100%)
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
CZ RO PL SK H
Gross salary Net salary Purchasing power
© 2007 Hay Group. All Rights Reserved 31

32. International comparison
Team Leader (Hungary = 100%)
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
CZ RO PL SK H
Gross salary Net salary Purchasing power
© 2007 Hay Group. All Rights Reserved 32

33. International comparison
Manager (Hungary = 100%)
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
CZ RO PL SK H
Gross salary Net salary Purchasing power
© 2007 Hay Group. All Rights Reserved 33

34. Thank you for your attention!
szilvia.magyar@haygroup.com