Outsourcing in CEE. Country Overview. Hungary - Hay Group

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Outsourcing in CEE. Country Overview. Hungary - Hay Group

  1. 1. Shared Services Centres in HungaryHay Group Sector Compensation Survey
  2. 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. 3. Introduction
  4. 4. Hay Group is a globalconsulting firm thatworks with leaders totransform strategy into realityand to help peopleand organizationsrealize their potential
  5. 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. 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. 7. Hay Group methodologyJob Evaluation and Job Mapping
  8. 8. Determining a job size Problem Total job Know-how + solving + Accountability = size© 2007 Hay Group. All Rights Reserved 8
  9. 9. Identification, comparison of jobs Field of activity (Job Family) Job size (reference level)© 2007 Hay Group. All Rights Reserved 9
  10. 10. Participants & database
  11. 11. Participanting organizations 32 participating companies with data of 10660 employees© 2007 Hay Group. All Rights Reserved 11
  12. 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. 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. 14. Salary markets
  15. 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 tili25%20%15%10% 5% 0%-5% Base Salary-10% Total Cash-15%© 2007 Hay Group. All Rights Reserved 15
  16. 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. 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. 18. Salary policy
  19. 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. 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. 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. 22. Benefits
  23. 23. Company carsRate 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. 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. 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. 26. Other HR issues
  27. 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. 28. International comparison
  29. 29. Analyzed countries Countries Czech Republic CZ Hungary H Poland PL Romania RO Slovakia SK© 2007 Hay Group. All Rights Reserved 29
  30. 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. 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. 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. 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. 34. Thank you for your attention! szilvia.magyar@haygroup.com

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