1. Salary & Benefits Benchmarking
April 18, 2018

2. Question
Do you pay competitive salaries and benefits for your employees?
Yes No ?

3. Underlying Principles1.
Internal Equity 2.
Competitiveness 3.
Meritocracy 4.
Return on Investment

4. Internal Equity

5. Competitiveness

6. Meritocracy

7. Investment
Return on

8. Salary & Benefits

9. What is Benchmarking?
The process of measuring the performance of a company's products, services, or processes against those of another business considered to be the best in the industry, or “best in class.”
Thru measurement and acceptable quantitative methods, the objective of benchmarking is to identify internal opportunities for improvement.

11. Benchmarking Guidelines
What is your company?
Which industry do you belong?
BPO? Banking? Mining? Manufacturing? Etc.
What is your company size?
Revenue Size
Employee Size
Which companies are your target comparators?
Direct competitors from the same industry
Customized target comparators
Functional Benchmarking Guidelines
Internal equity guidelines
Job Evaluation, Global Job Grading System
Functional Disciplines
Sales, Operations, Finance, IT, HR, Marketing, Supply Chain etc.

12. Components of Total Rewards
Level One: Annual Base Salary
12 months
Level Two: Guaranteed Pay
The Annual base salary plus all fixed and guaranteed bonus (Example: 13th, 14th month etc.)
Level Three: Benefits and Perks
Guaranteed pay plus the monetized value of all benefits and perks such as HMO, VL and SL, allowances such as rice, meal, clothing, communication and etc. plus other perks such as car, club membership if any.

13. Components of Total Rewards
Level Four: Variable Pay
Any compensation of a variable or discretionary in nature. Items included here are commissions, sales incentives, profit shares, performance bonuses, management incentives and etc.
Level Five: Total Annual Compensation (TAC)
Sum total of Level one to Four

14. Analysis of Total Rewards
What is Compensation Mix?
Compensation Mix or Pay Mix measures the ratio of Base salary, benefits, guaranteed pay and variable pay or performance bonuses to total compensation or TAC.
Analysis of Compensation Mix
Ratio of Base Salary to TAC
Ratio of Guaranteed Pay to TAC
Ratio of Benefits and Perks to TAC
Ratio of Variable Pay to TAC

15. Analysis of Total Rewards
What is Compa-Ratio?
Index of measurement to determine the competitiveness of a given salary with respect to its “Market Data Point” or MDP.
100% compa-ratio indicates that a given salary is competitive.
Formula: Present Salary/Desired MDP
Analysis of Compa-Ratio
Base Salary to Base Salary of Target MDP
TAC to TAC of Target MDP

16. Example: Analysis of Compensation Mix and Compa-Ratio
PMAP CR&P - Salary & Benefits Benchmarking Webinar - April 18, 2018.xlsx

17. The 2018 PMAP Salary and Benefits Survey:
PMAP CR&P PMAP Salary & Benefits Survey Flyer.jpg

18. The 2018 PMAP Salary and Benefits Survey:
PMAP CR&P Salary & Benefits Survey - Report Outline.docx

19. The 2018 PMAP Salary and Benefits Survey Questionnaire:
PMAP CR&P Salary and Benefits Survey Questionnaire.xlsx

20. Q and A

21. Thank You!