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MERCERTOTAL REMUNERATION SURVEYS 2012A closer look at regional, industry-specific and gender pay differences in Switzerland

Christa Zihlmann, Geneva

1MERCER 1

A global leader in human resource consulting and related services:

• $3.8 billion in revenue

• 65-year history

• 4 business segments

• Offices in more than 40 countries

• 20,000+ colleagues

Mercer

WHO WE ARE

2MERCER 2

We help clients optimize the value of their human and financial resources.

Business Segments Mercer’s Clients

• Talent

• Health

• Retirement

• Investments

• 80% of top US public companies

• 70% of FTSE 100 companies

• 70% of CAC 40 companies

• 65% of Nikkei 225 companies

• 75% of DAX 30 companies

• 80% of clients <5,000 employees

Mercer

WHAT WE DO

3MERCER

Agenda

• Mercer’s Total Remuneration Surveys

• Worldwide Pay in 2012

• What is equal pay ?

• A closer look at salaries in Switzerland

4MERCER

Mercer’s Compensation Data

MERCER SOLUTIONS

Three distinct HR challenges to expand and grow to meet the global economic challenges

Three distinct HR challenges to expand and grow to meet the global economic challenges

LOCAL PAY EXPATRIATE PAY

Understand and determine

COMPETITIVE LOCAL COMPENSATION

elements and pay levels for all positions within all countries

GLOBAL MEMBERSHIPS

Access to local pay benchmarking databases + high-value services

GLOBAL MOBILITY

Calculate competitive pay packages + manage compensation function globally + integrate into

new country

Understand and manage

COMPETITIVE EXPATRIATE COMPENSATION

elements and pay package levels for all expats across all home/host

locations

5MERCER

Annual Guaranteed Cash

Annual Total Cash

Annual Base Salary

• Meal allowance : The monthly fixed allowance for meals • Transportation allowance : The monthly fixed allowance for transportation• Position/Job based allowance : The monthly fixed allowance for holding a position• Skill allowance : The monthly fixed allowance for a specific skill/ license• Other monthly allowance : Other monthly fixed allowance not listed above

• Variable bonus : All payments which were associated with individual, team and/or corporate performance• Sales incentive bonus : All payments which were associated with sales achievement.• Other bonus : All payment, which were associated with other bonus scheme

• Monthly base salary : The monthly base salary excluding all allowances that your incumbent receives from your organization • Number of month paid : The number of times the incumbent receives monthly basic salary in a full year, including Fixed / Guaranteed Bonus

*: Long-term incentive cash

Annual Total Cash + Long Term Incentives

Annual Total Remuneration

• Flexible Benefit• Car Subsidized • Car Loan• Housing Loan• Personal Loan• Leave• Holiday Bonus

• Health Insurance• Dental reimbursement• Life Insurance• Accidental Insurance• Medical Check-up• Membership• Employee and the Children’s

Education

AnnualVariable Cash

Annual Fixed Allowance

Annual Base SalaryComp 5 Stock Options

Stock Grants* Key Benefits

AnnualVariable Cash


Annual Base SalaryComp 4 Stock Options

Stock Grants*

Annual Variable Cash


Annual Base SalaryComp 3


Annual Base SalaryComp 2

Annual BaseSalaryComp 1

Mercer Total Remuneration Survey (TRS)Compensation Elements

6MERCER

Mercer Total Remuneration Survey (TRS)Typical Position Class (PC) Ranges

White collar employee with a university degree and up to five years experience / or equivalent professional experience

Professionals PC 47 – 51

University degree, at least 5 years of experience (supervisors, coordinators)

Junior ManagementPC 50 – 54

Sub-department heads in larger organizations (e.g. HR manager)

Middle ManagementPC 54 – 58

Department heads in larger organizations (HR director, finance director, IT director)

Senior ManagementPC 57 – 62

Head of organization in mid-sized or larger organizations

Top Management PC 60 +

White collar employees, generally clerical EmployeesPC 40 – 47

6

7MERCER

Position evaluation is based on size of organization, number of employees and turnoverBenchmark positions and corresponding position class

55

53

52

51

50

49

Benchmark Position: Human Resource Manager

Position Code: 120.100.220

Position Description: Implement the organisation's human resource strategy so that the organisation attracts, manages, develops and retains the employees it needs to achieve its current and future business objectives. Normally reports to. Head of HR or HR Executive;e.g. HR Director.

Position Class

54

Company X Company Y Company VCompany Z

48

47

46

45

44

International Position Evaluation

8MERCER 8

0

100'000

200'000

300'000

400'000

500'000

600'000

700'000

800'000

40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

IPE Position Class

Switzerland Germany France RussiaIndia Brazil China (Beijing) United States

Worldwide Salary Comparison 2012 Annual Total Guaranteed Cash

Ann

ual T

otal

Gua

rant

eed

Cas

h(in

EU

R)

Blue collar ProfessionalSpecialist

ManagerDirector

VP

9MERCER 9

2012 Switzerland TRSSurvey Partcipants Overview

Number of organizations 201

Number of incumbents 51,001

Mainly large multinational companies

10MERCER 10

2012 Switzerland TRSSurvey Participants – Industry Representation

Consumer Goods; 24%

Pharma; 5%

Durable; 29%Nondurable; 9%

Services; 8%

High-Tech; 7%

Energy; 4%Finance/Banking; 1%

Retail/Wholesale Trade; 3%

Other; 10%

11MERCER

What is equal pay ?

Data interpretations vary:– By region– By career stream– By industry– By age– By gender– By tenure– By function– By company nationality– By Position Class

12MERCER 12

Regional Pay Differences in Switzerland (1)Annual Base Salary in CHF - Junior Management

SFr. 10'000 SFr. 30'000 SFr. 50'000 SFr. 70'000 SFr. 90'000 SFr. 110'000 SFr. 130'000

Swiss German Region

Swiss French Region

Swiss Italian Region

13MERCER

Regional Pay Differences in Switzerland (2)Total Remuneration in CHF - Professionals

140'943

126'689

79'300

0

50'000

100'000

150'000

French Region German Region Italian Region

Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Regional comparison

Source: 2012 TRS Switzerland

14MERCER

160'548147'445

122'171

0

50'000

100'000

150'000

200'000

German Region French Region Italian Region

Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Regional comparison


Regional Pay Differences in Switzerland (3)Total Remuneration in CHF - Junior Management SALES

15MERCER 15

Gender comparison – Switzerland: Sales FunctionsSenior Management : Female / Male Compensation

161'982150'777

122'171

147'962 144'057

116045

0

50'000

100'000

150'000

200'000


Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Regional comparison

16MERCER 16

Regional Pay Differences in Switzerland (4)Total Remuneration in CHF - Junior Management SALESFemale / Male Compensation

161'982150'777

122'171

147'962 144'057

112078

0

50'000

100'000

150'000

200'000


Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Regional comparison

Few positions

17MERCER 17

Regional Pay Differences in Switzerland (5)Total Remuneration in CHF - Human Resources Manager Senior Management: Female / Male Compensation

248'074

213'051225'017

213'801

0

50'000

100'000

150'000

200'000

250'000

French Region German Region

Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Regional comparison

73% 54%27% 46%

18MERCER 18

0%

5%

10%

15%

20%

25%

30%

Para-Professional Professional Management Executive

Female Male

Gender Distribution in Switzerland by Career Stream

19MERCER 1906 March 2013

All Data comparison - Switzerland : Annual Guaranteed CashFemale / Male Comparison – Regressed Median


0

50'000

100'000

150'000

200'000

250'000

300'000

350'000

400'000

450'000

500'000

550'000

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Female Male

Position Class

CH

F 29’500 CHF


All data comparison - Switzerland : Annual Total Cash (Target and ActualBonus) Female / Male Comparison – Regressed Median


0

50'000

100'000

150'000

200'000

250'000

300'000

350'000

400'000

450'000

500'000

550'000

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Female Target Male Target

Female Actual Male Actual

Position Class

CH

F

51’200 CHF


All data comparison - Switzerland : Annual Total RemunerationFemale / Male Comparison – Regressed Median


0

50'000

100'000

150'000

200'000

250'000

300'000

350'000

400'000

450'000

500'000

550'000

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Female Male

Position Class

CH

F

53’500 CHF

22MERCER 22

Functional Pay Differences in Switzerland (1)Total Remuneration in CHF - Top Management/Head of Organization


319'867

435'934 422'681

0

50'000

100'000

150'000

200'000

250'000

300'000

350'000

400'000

450'000

Female Male All Data

FemaleMale

Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Comparison by gender

11%

89%

23MERCER 23

Functional Pay Differences in Switzerland (2)Annual Base Salary in CHF – Middle Management / Environmental Health & Safety Manager


205'529 207'467 203'354

0

50'000

100'000

150'000

200'000

250'000


FemaleMale

Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)


43%

57%

24MERCER 24

Functional Pay Differences in Switzerland (3)Annual Base Salary in CHF – Junior Management Process Engineer -Experienced


131'641 135'531 135'531

0

50'000

100'000

150'000


FemaleMale

Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)


23%

77%

25MERCER 25

Functional Pay Differences in Switzerland (4)Annual Base Salary in CHF – Professional : IT Support Analyst -Experienced


104'226 108'284 105'618

0

50'000

100'000

150'000


FemaleMale

Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)


16%

84%

26MERCER 26

Pay Differences by company size in Switzerland (1)Annual Base Salary in CHF – Middle Management

210'123200'291

0

50'000

100'000

150'000

200'000

250'000

Less than 5,000 5,000 or more


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Comparison by company size

Number of Employees

27MERCER 27

Pay Differences by company size in Switzerland (1)Annual Base Salary in CHF – Middle Management

211'847202'460206'435

191'929

0

50'000

100'000

150'000

200'000

250'000

Less than 5,000 5,000 or more


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Comparison by company size

Number of Employees

Female Female

28MERCER

Company Nationality Differences in Switzerland (1)Total Remuneration in CHF – Middle/Senior Management

230'378 223'415

0

50'000

100'000

150'000

200'000

250'000

Switzerland United States

Ann

ual T

otal

Rem

uner

atio

n m

edia

n(C

HF)

Comparison by parent organization country


29MERCER 29

Company Nationality Differences in Switzerland (2)Total Remuneration in CHF – Middle/Senior ManagementFemale / Male Compensation

223'518211'078

251'635

204'126

0

50'000

100'000

150'000

200'000

250'000

300'000

Switzerland United States

Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Comparison by parent organization country

30MERCER

Tenure Pay Differences in Switzerland (1)Human Resources Manager (Senior Management)

168'980

207'393

258'705

230'864211'618

0

50'000

100'000

150'000

200'000

250'000

300'000

0 - 3 3 - 5 5 - 10 10 - 20 20 or more

Ann

ual T

otal

Rem

uner

atio

n m

edia

n(C

HF)

Comparison by tenure

Source: 2012 TRS Switzerland Tenure in years

31MERCER

Pay Differences by age in Switzerland (1)Total Remuneration in CHF – Middle Management

229'346220'412

205'689

0

50'000

100'000

150'000

200'000

250'000

30 - 40 40 - 50 50 - 60

Ann

ual T

otal

Rem

uner

atio

n m

edia

n(C

HF)

Comparison by age bracket of employee


32MERCER

Industry Pay Differences in Switzerland (1)Total Remuneration in CHF – Middle Management

259'302

208'741 207'253

0

50'000

100'000

150'000

200'000

250'000

300'000

Consumer Goods Nondurable (excludingConsumer Goods)

Durable

Ann

ual T

otal

Rem

uner

atio

n m

edia

n(C

HF)

Comparison by industry super sector


33MERCER 33

Industry Pay Differences in Switzerland (2)Total Remuneration in CHF – Middle ManagementFemale / Male Compensation

255'181

205'794 207'253200'988 202'787

259'898

0

50'000

100'000

150'000

200'000

250'000

300'000

Consumer Goods Nondurable (excludingConsumer Goods)

Durable

Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Comparison by industry super sector

Few data

34MERCER 34

Pay Differences by age in Switzerland (2)Annual Base Salary in CHF – Middle ManagementFemale / Male Compensation

213'051 215'053 207'253

235'276220'649

204'126

0

50'000

100'000

150'000

200'000

250'000

300'000

30 - 40 40 - 50 50 - 60

Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)

Comparison by age bracket of employee

35MERCER

Pay Differences by tenure in Switzerland (1)Total Remuneration in CHF – Middle Management

168'980

207'393

258'705

230'864211'618

0

50'000

100'000

150'000

200'000

250'000

300'000

0 - 3 3 - 5 5 - 10 10 - 20 20 or more

Ann

ual T

otal

Rem

uner

atio

n m

edia

n(C

HF)


Source: 2012 TRS Switzerland Tenure in years

36MERCER 36

Pay Differences by tenure in Switzerland (2)Total Remuneration in CHF – Middle ManagementFemale / Male Compensation

218'959 216'318

284'679

211'618

167'415

211'186

274'605

224'963

0

50'000

100'000

150'000

200'000

250'000

300'000

0 - 3 3 - 5 5 - 10 10 - 20 20 or more

Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (C

HF)


Tenure in years

37MERCER 37

European country comparisonHuman Resources Manager Female / Male Compensation

174'8

85

108'7

48

94'43

9

115'5

33

97'70

3

76'43

0

65'40

8

54'90

4

61'88

9

182'2

80

107'1

00

84'17

6

82'81

9

79'91

1

58'35

2

55'71

9

57'83

7

53'97

1

0

50'000

100'000

150'000

200'000

Switzerl

and

Sweden Ita

lyUnit

ed King

don

France

Russia

Poland

Hunga

ryCze

ch R

epub

lic

Male

Female


Ann

ual T

otal

Rem

uner

atio

nm

edia

n (E

UR

)


38MERCER

78%59% 65%

39%29%

15%

12%

24%27%

36%

23%

22%

10% 18%25%

48%63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China

Sweden

Switzerl

and

Europ

e UK USSalary Short Term Incentives Long Term Incentives

2012 Pay Mix by Region

39MERCER

Conclusion

• Overall women still earn less than men

• The main difference is the bonus (variable part)

• There are far less women in Management and Top Management positions, their salary might sometimes be higher that their male peers

• Differentiation of data sources are also important such as age group, parent company nationality, industry sector, region and function

• Gender pay differences are omnipresent all over Europe

40MERCER

Comparison PC 45 (Total Remuneration – Comp 5) Gross, Net and Net Salary COL adjusted – married + 1 child, base Frankfurt

0

10'000

20'000

30'000

40'000

50'000

60'000

70'000

80'000

Vietna

m

India

Poland

China (

Beijing

)

Russia

(Mos

cow)

Nigeria

Brazil

UAE

Italy

Spain

United

States

France

United

Kingdo

mSwed

enGerm

any

Japa

nSwitz

erlan

d

Gross Net COL adjusted DE Level

Tota

l Rem

uner

atio

n (in

EU

R)

41MERCER

Comparison PC 55 (Total Remuneration – Comp 5) Gross, Net and Net Salary COL adjusted - married + 1 child, base Frankfurt

0

20'000

40'000

60'000

80'000

100'000

120'000

140'000

160'000

180'000

200'000

India

Vietna

mHun

gary

Czech

Rep

ublic

Poland

Russia

Mexico

China (

Beijing

)Spa

inFran

ce Italy

United

States

Sweden

Nigeria

United

Kingdo

mGerm

any

UAEBraz

ilJa

pan

Switzerl

and


Tota

l Rem

uner

atio

n (in

EU

R)

42MERCER

Comparison PC 65 (Total Remuneration – Comp 5) Gross, Net and Net Salary COL adjusted – married + 1 child, base Frankfurt

0

100'000

200'000

300'000

400'000

500'000

600'000

700'000

India

Russia

(Mos

cow)

France

Spain

Sweden

United

States Ita

lyGerm

any

Japa

nUnit

ed K

ingdo

mChin

a (Beij

ing)

Vietna

mSwitz

erlan

d

UAENige

ria

Brazil


Tota

l Rem

uner

atio

n (in

EU

R)

43MERCER

EQAL PAY NEW 020613 - equalpayday.ch · 0 - 3 3 - 5 5 - 10 10 - 20 20 or more Annual Total...

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