2012 Retail Industry

2013 RETAIL INDUSTRYCOMPENSATION & BENEFITS SURVEYSpring HR Roundtable

Annisa Au & Bill StroblApril 2, 2013Toronto, ON

MERCER 1

Retail SurveyToday’s Agenda

Morning9:00 – 9:15 Welcome and Introductions9:15 – 10:00 Guest Speaker: Trevor Lawson, McCarthy Tétrault10:00 – 10:15 Break

10:15 – 11:30 Retail Industry Compensation & Benefits Survey – 2013 Survey Overview

11:30 – 12:15 HR Roundtable Discussion (Part I)

Lunch12:15 – 1:15 Networking Lunch

Afternoon

1:15 – 2:15 Guest Speaker: Margaret French, Mercer and Pierre Julien, Median Solutions – Quality of Life Services

2:15 – 2:30 Break2:30 – 3:45 HR Roundtable Discussion (Part II)3:45 – 4:00 Q & A and Meeting Evaluations / Adjourn

MERCER 2

Retail SurveyMeeting Objectives

• Comfort with the survey participation process– Accessing participation materials– Pre-populated questionnaire (for returning participants)

• Comfort with the position matching process– Ensuring quality position matches– Ensuring consistency in matching from company to company

• Provide a forum to discuss issues affecting your organization

• Networking and knowledge sharing opportunity

• Opportunity to listen to guest speakers on issues relating to the Retail Industry

Guest SpeakerTrevor Lawson, McCarthy Tétrault

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2013 Survey Overview

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MERCER 5

2013 Survey OverviewKey Dates

Survey Milestones Mar Apr May June July Aug Sept

Participation Materials Distributed 15

Data Effective Date 1

Spring Roundtable/Job Matching Meeting 2

Data Submission Deadline 30

Data Cleaning & Audit Workbooks (AWB) mid early

Data Processing

Results Available Mid

Mercer WIN Training Early

Fall Roundtable/Post-Survey Meeting Late Sept/ Early Oct

MERCER 6

2013 Survey OverviewAdvantages to Participating

• Participation is easier than ever!– All you need to participate in one Excel workbook– Includes guide, position list, incumbent and benefits information– Benefits data is pre-populated for returning participants

• Position Matching Booklet in Excel format to easily search, scroll and filter

• Survey results will be delivered in Mercer WIN®

• Your data is transferred to the Mercer Benchmark Database (MBD)automatically for the jobs that are in both surveys (no additional work required on your part!)

• Purchase selected modules of MBD at the participant price within your Retail submission

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2013 Survey OverviewChanges

• Focus group meeting in late November to discuss the survey and potential changes– 15 clients from 13 companies– Discussion topics included: job families and descriptions, data elements,

participation, and meetings

• Eight new positions and Four revised positions

• New Position Groups: Central Administration, Design, Distribution, e-Commerce, Finance/Accounting, HR, LP, Marketing & Sales Promotion, Merchandising, Store/Field Operations, Real Estate, Systems & Data Processing

• Collect the actual Store Volume $ amount, instead of within defined buckets

• Three Retail Industry jobs are being removed from CA MBD:– Sales Clerk– Account Merchandiser– Merchandise Manager

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MERCER 8

2013 Survey OverviewCalling All Participants!

• Encourage your peers to participate in the 2013 Retail Survey– Competitors– National retailers– Regional retailers

• Looking for increased participation across all geographies– New participants– Complete submissions from current participants

Send contact information to [email protected] we will supply survey materials

MERCER 9

2013 Survey Overview2013 Submission Process

Step 1: Download your questionnaireFor 2012 participants it is pre-populated; instructions sent via e-mailFor all other participants, go to www.imercer.ca/retail

Step 2: Review Position Descriptions

Step 3: Gather your data and complete questionnaireData effective: April 1, 2013

Step 4: Save a copy of your questionnaire for your reference Carefully review data for errorsHave someone else in your company review before submitting

Step 5: Submit Your Data Upload questionnaire to secure websiteData Submission Deadline: April 30, 2013

Step 6: Ensure you receive a confirmation e-mail receipt from Mercer within 24 hours of submitting

MERCER 10

2013 Survey OverviewOverview of Excel Questionnaire

• 2013 CA Retail Questionnaire Excel workbook contains the following tabs:

Tab 1: Introduction Tab 8: Incumbents

Tab 2: Features Tab 9: Feedback

Tab 3: Order Tab 10: Incumbent Definitions

Tab 4: Guide Tab 11: Position List

Tab 5: Organization NAICS Codes

Tab 6: Comp Practices Working Sheet

Tab 7: Benefits

Data Verification Process

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MERCER

Retail Survey2013 Data Verification Process

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

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Mercer checks each submission for completeness

and accuracy

Mercer performs stringent data

validation checks 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

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

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Useful Tip!

• Tabs requiring your review of data issues are highlighted in orange.

• The Severity Level Flags identify critical data needed from you.

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

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Useful Tip!

Never remove data rows from the Audit Workbook – use the

‘Exclude Row from Survey’ column

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• 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

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Position Matching

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MERCER 17

Position MatchingEnsuring Quality Matches

• Match on content, not title or individual performing the job– Titles can mislead you (e.g., a Project Manager)

• Focus on essence of position when comparing to survey descriptions

• If one or several major responsibilities included in the survey description are not a part of your position (or vice-versa), another position match may be more appropriate

• Each incumbent should be matched to only one position

• Identify anomalies with the “Quality of Match”

Survey Benchmark

Your Position

80% Overlap

Good Match

MERCER 18


• Hybrid jobs:– 60% or more job content, otherwise exclude– Some jobs are too unique to match – e.g., Person who spends 50% of time in marketing and 50% in IT

• Who should not be included:– Expatriate employees should not be included in your input– Positions that are currently vacant– Incumbents who are paid a Youth/Training or "Inexperienced"

hourly rate– Hourly rates for incumbents below minimum wage unless the

incumbent is also eligible for sales commissions and you can provide the annual commission amount

MERCER 19


Position Main Responsibilities

10107 Sales Specialist• Provides a high level of customer service support with

product expertise and advanced selling skills (i.e., beauty, travel, technical etc.).

10110 Sales Staff

• Assists customers in the selection and purchase of merchandise.

• May maintain store's appearance and/or restock merchandise.

Sales Specialist is a higher level salesperson (e.g., retired electrician or plumber working at a hardware store).An organization might call their salespeople "Specialist" internally, but they should not match the Sales Specialist unless they require employees have expertise/advanced training in a specific area.Typically we receive many more matches to 10110 Sales Staff, than to 10107 Sales Specialist.

MERCER 20


Single Incumbent Positions• Many of the most senior roles are expected to be filled by a single incumbent –

multiple matches would not be expected and will be questioned• 22 Single Incumbent Positions• Examples include:

• CEO/President - Head of Chain• Executive VP/Chief Operating Officer (COO)• Senior VP/Chief Administrative Officer (CAO)• Chief Financial Officer (CFO)• Head of Store Operations• Head of Legal Department• Head of Real Estate Department• Head of Merchandise Buying (GMM)• Head of Human Resources

MERCER 21

Position MatchingNew and Revised Positions

New Positions Revised Positions11095 – Head of Risk Management

11123 – Store LP Officer

11125 – DC LP/Security Officer

30071 – e-Commerce Merchandiser

30072 – e-Commerce Marketing Mgr

30073 – e-Commerce Marketing Coord

40083 – Region Visual Merchandiser

40085 – Home Office Visual Merchandiser

10005 – Senior/Area Store Manager

10006 – Store Manager

10007 – Assistant Store Manager

40090 – In-Store Visual Merchandiser

Review the legend column in the position matching booklet

MERCER 22

Position Matching Revised Positions

Position Description Revisions

10005Senior/Area Store Manager

• This position either oversees the operation of multiple stores in a given geographic area, smaller than a district, or manages one of the company's largest or "Flagship" stores.

10006 Store Manager

• Management position responsible for all aspects of managing a single retail store. Has complete operation authority to achieve sales, service, organization, customer satisfaction and profitability goals for the store in compliance with company procedures. Develops and executes short and long-term plans to achieve goals in support of district/region strategy. Ensures the maintenance of expected operational and merchandising standards. Ensures staff maintains store presentation and supports brand consistency. Provides effective training to staff in the areas of customer service, product knowledge, inventory control and merchandising while offering developmental opportunities. May handle store level loss prevention issues. Typically reports to District Manager (10004).

10007Assistant Store Manager

• Assists the Store Manager in the daily operation of a retail store. Under the direction of the Store Manager, schedules employees, maintains inventories, conducts physical inventories, maintains store appearance, and completes day-to-day paperwork as directed.

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Position Matching Revised Positions

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Position 2012 Description

40090 In-Store Visual Merchandiser

• This position is typically one of three types: (1) In-Store Visual Merchandisers are found in big box stores that need and can afford a person per store or locality. This position typically reports through to the Store Manager, with a dotted line staff relationship to the Head of Visual Merchandising position. The duties are essentially the same as the regional position, but with less training and more doing, within one store or locality. (2) Regional Visual Merchandisers are typically found in small box specialty store chains. They may report to the Head Visual Merchandising position above or to a Regional Store Operations Manager. They have responsibility for in-store staff training on visual merchandising and for monitoring compliance to company visual directives across multiple stores within a given geographic area. They may be based in the Home Office but are more typically based in the region served. (3) Home Office Visual Merchandisers have national responsibility for a specific brand or merchandise category.

40085Home Office Visual Merchandiser

40083 Region Visual Merchandiser

Compensation Planning Update

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MERCER 25

2013 Mercer Compensation Planning ReportPay Increase Budgets

• The national average base salary increase in 2012 was 3.2%. Projections for 2013 indicate that budgets will remain at 3.2%

• Executives had the highest salary increases at 3.4%

• The Oil and Gas industry had the highest increases at 4.6% and Wholesale/Retail had the lowest increases at 2.9% (up from 2.7% in 2011 though).

• Greater Calgary had the highest increases among cities at 3.4%. Other Alberta had the highest increases among Provinces at 3.4%, followed closely by Saskatchewan at 3.3%.

• Approximately 28% of responding organizations indicated that promotional increases are budgeted separately from merit increases. For these organizations, the average award was just over 6% of base pay.

Source: Mercer’s 2012/2013 CA Compensation Planning Survey for Non-Union Employees

MERCER 26

Salary Differentiation

• Organizations continue to differentiate performance and focus onrewarding high performing employees with greater than average salary increases.

2013 Mercer Compensation Planning Report


Performance Rating 2012 actual 2013 projected

% of Workforce

Avg Salary Inc.

% of Workforce

Avg Salary Inc.

Highest 6% 4.9% 7% 5.0%

Next Highest 25% 3.9% 23% 3.9%

Middle 60% 2.9% 60% 3.0%

Low 8% 1.2% 8% 1.2%

Lowest 2% 0.1% 2% 0.1%

MERCER

2013 Mercer Compensation Planning Report

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Performance Differentiation

• Organizations seem to be having a harder time differentiating performance.


Performance Rating 2010 actual 2011 actual 2012 actual

% of Workforce % of Workforce % of Workforce

Highest 8% 7% 6%

Next Highest 22% 24% 25%

Middle 45% 58% 60%

Low 19% 9% 8%

Lowest 6% 3% 2%

85%67%

HR Roundtable Discussion (Part I)

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Group Discussion: Hot Topics / Key Initiatives

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MERCER 30

Group DiscussionHot Topics

Benefits, Wellness, Pension (Review/Re-design)

1. How do organizations collect benefit premiums (e.g. health and savings plan) from employees who are on leave (i.e. maternity leave), especially if they are not on payroll?

2. Do you provide or are considering providing commuting subsidy (eg. parking, transit) to their office and store employees? Can you share your policy and process?

3. What kind of wellness initiatives are you implementing at store level?

Current theme/trend/fad/quick question for discussion. What is the burning issue of the day or a problem you would like some direction on. Typically phrased in the form of a question, and is something you wish to solicit feedback from the group.Example: What are some of the ways you use to reward employees through non-monetary means?

MERCER 31

Group DiscussionHot Topics

Business Process and Communication

1. How do you reach your employees in the stores who don't have email addresses?

2. How are you making use of social media in regards to employees as opposed to customer facing social media?

Total Rewards Program/Philosophy

1. In what ways do you reward employees through non monetary awards?

2. Are you having a different salary scale or benefit plan for managers based on sales volume, square footage of the store?

MERCER 32

Group DiscussionKey Initiatives

Key Initiative # of Orgs

Benefit, Wellness, Pension Plan (Review/Re-design) 3

Business Process and Communication 3

Employee Recognition and Value 3

Compensation Planning/Structure/Re-design 2

Compliance and Regulation 1

Incentive Plans - STI/Sales (Review/Re-design) 1

Organization Restructure 1

A key or strategic initiative that a company will undertake to accomplish its identified goals and objectives. Generally longer term in nature, and is something that you wish to share or discuss with the group. Example: Implementation of a retiree benefit plan

Below is a summary of some of the key initiatives provided:

Networking Lunch

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Guest SpeakerMargaret French, Mercer

Pierre Julien, Median SolutionsQuality of Life Services

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HR Roundtable Discussion (Part II)

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MERCER 36

Contacts

• Customer Service: 1 800 333 3070 [email protected]

• Annisa Au, Lead Analyst 416 868 2851 [email protected]

• Bill Strobl, Industry Manager 502 561 6985 [email protected]

Thank you for joining us today!

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Appendix

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MERCER

2013 Survey Overview Tab 1: Introduction

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• Key Dates for submitting your data• Tips for using other versions of Excel

MERCER 40

2013 Survey Overview Tab 3: Order - Results and Reporting Tool Access

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

Enter 1 to be considered a participant

MERCER 41

2013 Survey Overview Tab 4: Guide• Includes what’s ‘New This Year’• Important Dates• A guide on ‘How to Participate’• Helpful Hints

MERCER 42

2013 Survey Overview Tab 5: Organization

MERCER 43

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

Primary Merchandise Category

• 20+ categories to choose from

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

Annual Dollar Volume

• Gross Sales/Revenue

• Allows you to benchmark against organizations of a similar size

• Canadian-headquartered companies provide both Canadian and global amounts

• Non Canadian-headquartered companies provide Canadian operations only

Total Headcount (FTEs)

• Number of FTEs for Union and Non-union employees

• Should be Full-time equivalents and not Headcount. Can include contract staff but do not include seasonal staff

• Allows you to benchmark against similarly staffed organizations

• Canadian-headquartered companies provide both Canadian and global amounts

• Non Canadian-headquartered companies provide Canadian operations only

MERCER 44

2013 Survey OverviewTab 6: Comp Practices

Data Collected

• Salary Administration:– Timing of Increases– Budget Estimates– Salary Structures

• Turnover

• Variable Pay:– Short-term and Long-term

Incentive Plan Designs

• Other Compensation Policies and Practices:– Employment Practices (work hours)– Overtime Pay– Uniforms– Pager & Call-in Pay– Signing Bonuses– Recognition Practices– Shift Operations– Acting Pay

MERCER 45

2013 Survey OverviewTab 7: Benefits

Data Collected

• Eligibility and cost coverage by plan type and employee group

• Drug Plan Co-payments

• Dental Plan Deductibles

• Flexible Benefits

• Associate Discounts

• STD and Sick Leave

• Statutory Holidays, Maternity Leave Top-up and Vacation Entitlements

• Associate Relocation Practices

MERCER 46

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 47

2013 Survey Overview Tab 8: Incumbents

Used as a reference for data questions

Participant benefits:

• Enhances reporting analysis

• Consistent year-to-year IDs makes data submission easier

1. Employee Identifier

• New Workforce Planning fields

2. Year of Hire, Birth & Gender • Key information for

geographical analysis

3. Workplace Postal Code

1 2 3

Key Incumbent Information

MERCER 48

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 49

Once complete, save a copyupload through Mercer’s

secure website

2013 Survey OverviewSubmitting Your Data

Mercer (Canada) Limited

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2012 Retail Industry

Documents

Transcript of 2012 Retail Industry