Competitive pay analysis - Aon Hewitt


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Competitive pay analysis - Aon Hewitt

  1. 1. Competitive Pay AnalysisCompetitive pay structure is critical in attracting and retaining talentStaff turnover is expensive, and with remuneration typically representing the largest financialinvestment an organisation will make each year, it is imperative that organisations get it right. Findingthe right data sources and conducting analysis in a fluid business context can be a challenge,especially when there are competing demands on HR and Reward professional’s time and resources.Aon Hewitt delivers valueOur pay analysis develops and applies sound methods for benchmarking market remuneration data toprovide unbiased assessments of competitive positioning practice. At Aon Hewitt, we not only analysemarket remuneration data sources, we interpret the results in the context of our clients’ current andpreferred competitive positioning.Armed with extensive and up-to-date market data for different sectors and job families, we customisecompetitive pay analysis depending on the size, need, objectives and resources of your organisation.Flexible and PracticalWe can assist you as much or as little as you would like in your remuneration benchmarking exercise,drawing from our experience and wealth of market data.We can conduct competitive pay analysis for executive teams, strategic job families, an individual roleor the whole organisation.We can do this to support your remuneration review, as part of a targeted review of specific parts ofthe organisation or on an ad-hoc basis to respond to urgent tactical needs.CustomisedWhile utilising our market intelligence, experienced Aon Hewitt consultants will develop a deepunderstanding of your organisation and the market in which you are operating in. In determining yourcurrent and preferred competitive positioning, we will assist you in selecting the right peer group andmarket positioning.Our customised approach will help you gain a clear understanding of your organisation’s marketposition and the competitiveness of employees’ remuneration packages. We can identify employeesin your organisation who are remunerated at a rate far higher, or lower, than the market norm. Ifrequired, we can offer solutions to close any gaps related to such practices.Aon Hewitts global compensation database, Total Compensation Measurement™, spans 180countries, over 550 benchmark positions, and over 5 million incumbents. That’s more than any othercompensation data provider worldwide
  2. 2. The Aon Hewitt approach Our advice provides solutions for the most significant competitive pay policy issues, including:  Market positioning: factors to consider when positioning the company-wide pay policy  Fixed pay and benefits: types of flexible benefits applicable to job families and sectors – prevalence, cost and value of benefits  Short and long-term incentives: type and prevalence of incentives, job family and employee group-specific incentives and sector-specific practices  Pay mix: the proportion of fixed pay and incentives within the total pay mix and variations depending on employee groups and job families  Strategic and customised analysis: depending on the needs of your organisation we can design, develop and conduct special diagnostic analysis to find out more about the relationship between internal pay and gender equity, age, seniority or other factors within your organisation. Aon Hewitt’s reward team relies on its fact-based methodology to help clients design, develop and deliver effective reward programs that establish a direct connection between the organisation’s goals and objectives and an employee’s focus and actions. Case study – Financial Services Organisation The client: Major financial services organisation The issue: Remuneration Committee reported criticism of the existing benchmarks due to the relative importance of certain roles internally that was not mirrored in other organisations. How Aon Hewitt added value: We supplemented the job benchmarks with role hierarchy analysis of executives in peer organisations. This allowed us to apply a secondary analysis to provide additional context for the Remuneration Committee. Case study – Engineering Organisation The client: International engineering organisation The issue: International data sources were challenging and time-consuming to identify, co-ordinate and analyse. The client required data on operational, professional and executive staff in a number of international locations. How Aon Hewitt added value: Our international databases covering 45 countries, over 300 globally consistent benchmark jobs and a user-friendly online reporting tool enabled us to deliver the project before the agreed deadline, provide the client with a consistent cross-country comparison, as well as broader context and expert commentary drawn from our reward consultants’ experience in the local markets. Aon Hewitt Contacts: Andrew MacLeod +44 (0)207 086 9181 Steve Munday +44 (0)207 086 9213 About Aon Hewitt Aon Hewitt is the global leader in human capital consulting and outsourcing solutions. We design, Nishant Mahajan +44 (0)207 086 9184 implement, communicate, and administer a wide range of human capital, retirement, management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees.