2011 Compensation Surveys – Japan of over 200 local and multinational companies from leading employers in the local market. ... survey process, and questionnaire ... • View or

Towers Watson Data Services

Japan

Towers Watson has one of the largest total rewards database in Japan reflecting thepractices of over 200 local and multinational companies from leading employers in the localmarket. Our database provides a holistic view of reward packages, including value of jobsand benefit practices, in your marketplace.

2011CompensationSurveys–JapanThemostcomprehensivetotalrewardsdatabaseinJapan

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TowersWatsonDataServicesDeliversFullyIntegratedTotalCompensationDataSolutions


Towers Watson Data Services is a leading provider of compensation, benefits and employment practices information to the global employer community. Covering more than 100 countries across six continents, our data centers in the U.S., Canada, Europe, Middle East and Africa, Asia and Latin America annually compile reports on the compensation, benefits and employment practices of local and multinational companies.

Our portfolio of products and customized services helps organizations to:

• Develop cost-effective salary and benefit packages;

• Stay up-to-date with the latest HR developments; • Ensure compliance with local laws and customs; • Assess and compare the costs of employment within and across regions.

OurcorestrengthsOur industry knowledge, cutting-edge technology and unique survey methodology deliver the most current, high-quality compensation data available.

ProviderofchoiceOur robust surveys cover all aspects of compensation, including long-term incentives and benefits policies and practices. For more than 60 years, human resource professionals have turned to Towers Watson Data Services for the quality pay data they need to develop and administer their pay programs.

CompanycoverageOur surveys contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world’s largest conglomerates.

LocalexpertiseandglobalreachOur extensive global network of dedicated in-country experts is unmatched in terms of geographic and industry expertise.

Consistency,reliabilityandhighqualityOur consistent survey methodology reflects our extensive knowledge and experience in job leveling, job architecture, our understanding of how cross-industry and industry-specific jobs are structured and how they evolve as industries change. This ensures accurate and meaningful comparisons of data across all countries and regions of the globe.

ResearchdrivenTowers Watson makes significant investments in technical resources (e.g., legal, tax, statutory research) and tracking market practices (e.g., executive pay and benefits surveys, compensation and benefits policies and practices).

2011 Compensation Surveys – Japan 3


AsiaPacificIn Asia Pacific, Towers Watson provides timely and comprehensive data from 17 countries/locations, including: Australia, Bangladesh, Brunei, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Taiwan, Thailand, and Vietnam.

Over 200 surveys are conducted annually, with data contributed by over 2,500 companies from a broad range of industries, including:

• Automotive • Business Process Outsourcing • Consumer Products (including FMCG) • Chemical • Construction

LatinAmerica

ArgentinaBrazilChileColombiaCosta RicaDominican RepublicEcuadorEl SalvadorGuatemala

HondurasMexicoNicaraguaPanamaPeruPuerto RicoTrinidad & TobagoUruguayVenezuela

AsiaPacific

AustraliaBangladeshBruneiChinaHong KongIndiaIndonesiaJapanKorea

MalaysiaNew ZealandPakistanPhilippinesSingaporeSri LankaTaiwanThailandVietnam

Europe,MiddleEastandAfrica

AlbaniaAlgeriaAustriaAzerbaijanBahrainBelarusBelgiumBosniaBulgariaCroatiaCyprusCzech RepublicDenmarkEgyptEstoniaFinlandFranceGeorgiaGermanyGhanaGreeceHungary

IraqIrelandIsrealItalyIvory CoastJordanKazakhstanKenyaKuwaitLatviaLebanonLibyaLithuaniaLuxembourgMacedoniaMoldovaMontenegroMoroccoNetherlandsNigeriaNorway

OmanPolandPortugalQatarRomaniaRussiaSaudi ArabiaSenegalSerbiaSlovakiaSloveniaSouth AfricaSpainSwedenSwitzerlandTunisiaTurkeyUkraineUnited Arab EmiratesUnited Kingdom

NorthAmerica

CanadaUnited States

OurGlobalCoverage

Our extensive global network of dedicated in-

country experts apply their local knowledge of

the varied employment markets, practices and customs to deliver a complete picture that can be used to create sound, market-based pay programs for entire organizations.

• Financial Services (banking, fund management, insurance, private equity, securities)

• High Tech • Manufacturing • Media • Pharmaceutical (including medical devices, clinical research, animal health)

• Real Estate

Towers Watson Data Services also offers an array of custom services, including customized surveys, compensation policy audits and compensation policy design.

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Our unique survey methodology combines the expertise of Towers Watson consultants and incorporates extensive input from clients across the globe. The combination of Executive Benchmarks, Career Bands/Levels, and Global Grades represents Towers Watson’s view on best practices for aligning internal structures with market pay levels, and provides a consistent process for mapping jobs to external market data with jobs grouped by job functions and disciplines.

Global Grades provide the underpinning for executive and non executive jobs. They measure the relative internal values of jobs in an organization and align to quantifiable differences in market pay. In the context of survey job matching, Global Grades validate job matches and ensure consistent results across geographic areas and different lines of business.

OurUniqueSurveyMethodology–RobustResultsandGlobalConsistency

OverviewofthesurveymethodologyStep1:DeterminetheGlobalGradeoftheorganization.Determine the Global Grade of the organization by using revenue, employee numbers, geographical scope and reference to benchmark for the CEO (or Profit Center Head).

Step2:Alignyourorganization’slevelstothesurveylevels.Determine the Global Grade for the remaining executives and assign a Career Band, Career Level and Global Grade to non executive jobs. •MatchingExecutiveJobs– The Towers Watson Data

Services approach to executive jobs integrates benchmark descriptions with critical scoping measures, such as revenue and total FTE (full time equivalent) employees. Executive leveling through Global Grades and company scoping measures is used to analyze data from different size organizations.

•MatchingMiddleManagement,ProfessionalandSupportJobs – The Towers Watson Data Services leveling approach integrates Career Levels (representing broad career steps) and Global Grades (providing a more granular approach to leveling) that yield a vast array of data.

Step3:Matchyourorganization’sjobstoFunctions,ExecutiveBenchmarksandDisciplines.

CareerBands/Levels&GlobalGrades

* Bands available through industry specific surveys only

GlobalGrade2-25

ExecutiveCareerBand(11GlobalGrades)

Supervisory/ManagementCareerBank(5CareerLevels)

ProfessionalCareerBand(6CareerLevels)

Revenue(FinancialServices)CareerBand(6CareerLevels)*

Customer/ClientManagementandSales(6CareerLevels)

MedicalRepresentationCareerBand(4CareerLevels)*

TechnicalSupportCareerBand(4CareerLevels)

BusinessSupportCareerBand(4CareerLevels)

Productions/OperationsCareerBand(4CareerLevels)

This example illustrates functions, levels/global grades and the compensation and benefits discipline within Human Resources.

Function:

Human Resources

Discipline:

Compensation and Benefits Generalist/Multi

CareerLevel:P3/GlobalGrade12

Compensation and Benefits Professional

DisciplineDescription:

Plans, designs, evaluates and administers employee compensation and benefit programs, such as salaries, short and long-term incentives, job evaluations, performance appraisals, retirement plans, and life, health and disability insurance

CareerLevel/GlobalGradeDescription:

• Requires in-depth knowledge and experience • Uses best practices and knowledge of internal or

external business issues to improve products or services

• Solves complex problems; takes a new perspective using existing solutions

• Works independently; receives minimal guidance • Acts as a resource for colleagues with less

experience; may direct the work of other staff members

• Represents the level at which career may stabilize for many years or even until retirement

Ourjobmatchingprocessismoreflexiblethantraditionalmethods,andeasytoimplement,understandandmanage.

AlignyourinternalstructuretothesurveyCareerLevelsandGlobalGrades,functions(jobfamilies)anddisciplines.

Matchyourorganization’sjobstofunctionsanddisciplines.


SurveyscopeA comprehensive coverage of functions and disciplines (specialties within a function) is available in the general industry and industry-specific surveys. Reward data is collected from top management to entry-level staff across different job functions. All the elements of compensation, benefits, and HR practices are captured:

Incumbentdata • Base Salary (Monthly Salary x 12) • Annual Base Salary (Base Salary + Guaranteed Bonus)

• Total Guaranteed Compensation (Annual Base Salary + Fixed Allowances)

• Total Cash Compensation (Total Guaranteed Compensation + Variable Bonuses, Commissions, Incentives)

• Total Direct Compensation (Total Cash Compensation + Long Term Incentives)

Companydata • Company profile • Compensation policies • Benefits policies and practices

IndustrySurveys

• Financial Services • Private Equity • High Tech • Pharmaceutical • Media • General Industry

Over 140 professional consultants in Japan contribute to our clients’ success through their unique capabilities and deep expertise, gained through Towers Watson Data Services’ 30 years of local market experience. Our comprehensive total rewards database, one of the largest in the Japan market, reflects the practices of over 200 participating local and multinational companies. Ten industry surveys are available:

TowersWatsonDataServicesinJapan


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An orientation meeting is held to provide participants with a detailed understanding of Towers Watson’s survey methodology and proper job matching.

SurveyProcessandSchedule


The process consists of six key steps. To maintain the quality of data, our consultants work closely with participating companies from survey orientation to data collection and validation.

Onemonth

1.Projectplanning

2.Participationconfirmation

3.Group/individualjobmatching

4.Datacollection

5.Datavalidationandanalysis

6.Reportdeliveryandpresentation

OnemonthTwomonths

Projectplanningandparticipationconfirmation

•Orientation meeting to introduce Towers Watson benchmarks, survey process, and questionnaire

Group/individualjobmatching

•Understand participants’ compensation system

•Assist participants in job matching using Towers Watson methodology

Datacollection,validationandanalysis

•Participants to submit data

•Multi-level data validation process:– Company-level validation– Market-level validation– In-house validation tools

•Consultant to contact participants if clarification required

Reportdeliveryandpresentation

•Report delivered through CompSource

•CompSource training sessions to participants

•Client conference with participants:– Present survey highlights

and findings – Collect feedback to ensure

client satisfaction

2011Schedule Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Participation form submission

Compensation & benefits data collection

Compensation & benefits data verification

Report delivery

Annual client conference

2011Schedule Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Participation form submission

Compensation & benefits data collection

Compensation & benefits data verification

Report delivery

Annual client conference

SurveyScheduleData Effective date: 1st April 2011Industry: High Tech

Data Effective date: 1st April 2011Industries: Financial Services, Private Equity, Pharmaceutical, Media & General Industry


AccessSurveyResultOnline


2.PublishedcashreportsAnalysis of cash components, including annual base salary, fixed allowances, guaranteed and variable bonuses, sales incentives. A variety of reports are available including:

• Position summary of reward elements • Position listing of reward components by discipline/grade/level

• Reward components by job scope dimension • Reward elements by salary range • Pay mix analysis

3.AdvancedcashreportsAll Published option capabilities plus self-service custom analyses

• Selection of peer companies of your choice from the database to create a peer group for comparison purposes.

• Creation of competitive reports based on Towers Watson Global Grades/Career Levels, functions and disciplines, and individual job holder.

• Customize report layouts • Combine jobs and levels • Produce year-to-year comparisons • Run regression

CompSourceAccessmarketdataandresearchreportsfromaroundtheworldviaTowersWatsonCompSourceCompSource unifies the richness of our market data with integrated, high-end analytical capabilities to create a dynamic system that allows users to self-service reports and advanced custom analyses. With CompSource you can:

• View or download survey results in seconds • Create peer group reports by company name or characteristic (e.g., industry type, company size and performance measures)

• Compare your data to the market (compa-ratios) • View in-depth policies and practices information by country, including benefit practices

• Export data in a variety of formats, create color graphs, presentation-ready PDFs and spreadsheet output for uploading to other systems

• Convert currencies • View annual, monthly and custom salary representation

• Age data

SurveydeliverablesAs a participant in Towers Watson’s survey, you will receive the broadest insights, from industry analysis to total rewards of individual employees.

1.Executivesummary • Overview of current economic, business, and HR environment

• Compensation and benefits trends and analysis

• Salary increase and industry pay trends • Market comparison by industry/function • Staff turnover rate

AboutTowersWatsonTowers Watson is a leading global professional services company that helps organizations improve performance through effective people, financial and risk management. With 14,000 associates around the world, we offer solutions in the areas of employee benefit programs, talent and reward programs, and risk and capital management.

Copyright © 2011 Towers Watson. All rights reserved.

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TowersWatsonDataServicesDeliversFullyIntegratedTotalCompensationDataSolutions

4.Benefitspolicyandconditionsofservicereport

We offer unrivaled coverage of benefits policies and practices. Our reports provide detailed data on key compensation, benefits, and HR practices, including:

• Salary review trends and practices • Bonuses, performance incentives, and sales commissions

• Long-term incentives (LTI): stock options and stock purchase plans

• Cash allowances (i.e. meal, transportation) • Retirement benefits • Life and accident insurance benefits • Medical benefits (inpatient and outpatient) • Company loans and subsidies • Long service and recognition awards • Business travel • Education subsidy/employee development programs

• Perquisites such as company car, car allowance, club membership, accommodation, mobile phones

• Working hours, overtime/shift premiums, and leaves

• Starting salaries for graduates

ContactUsOur in-country experts apply their local knowledge of the varied employment markets, practices, and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire organizations.

Consultant Telephone Email

Yuko Nagahara +81 3 3581 6738 [email protected]

Makiko Kudo +81 3 3581 6557 [email protected]

Yu Hashikura +81 3 3581 6639 [email protected]

Japan Compensation Survey enquiry email: [email protected]

Documents

2011 Compensation Surveys – Japan of over 200 local and multinational companies from leading employers in the local market. ... survey process, and questionnaire ... • View or