China Salary Planning Report - Aontcmchina.aon.com/TCM/China_Salary_Planning_Report_2016-17.pdf · China Salary Planning Report ... of the 29th annual Global Salary Increase Survey

Aon Hewitt Talent, Rewards & Performance Proprietary and Confidential

Risk. Reinsurance. Human Resources.

China Salary Planning Report 2016–2017


Table of Contents

Survey Highlights and Insights 1

Global Salary Increase Survey Report Availability 2

Overview of Survey Results 4

Pay and Performance 14

Workforce Size 26

Pay Delivery & Management 32

High Potentials and Top Performers 36

Participation Demographics 40

Employee Engagement 46

Appendix 48

Definitions of Terms 49

Participant List 52

Aon Hewitt Talent, Reward & Performance

Survey Highlights This report presents the results of the 29th annual Global Salary Increase Survey conducted by Aon Hewitt. The survey focuses on overall changes in employee compensation for the calendar year 2016 and on current projections for 2017. The survey spans 120 markets with over 13,000 country submissions received during June, July and August. Participants include service, manufacturing, and multi-industry organizations.

The China country report consists of 457 companies.

How Data is Collected The survey data is collected through multinationals that submit multicountry data and also from companies that are recruited locally and submit data for one single country. The salary increase budget information reported in this report encompasses data for all companies reporting data for China.

Special Note

Occasionally we are asked how survey antitrust rules apply to collecting and reporting salary increase information. In fact, some organizations request that they receive the report with any prospective information removed. Aon Hewitt believes that, because such data (as is presented in this report) is widely available and is sufficiently general in nature, it falls within standard survey safe harbor guidelines.

However, if your company’s legal counsel suggests taking a more conservative approach, we can provide a version of the report that excludes projected data.

China Salary Planning Report 2016 - 2017 1

Aon Hewitt Performance, Reward & Talent Proprietary and Confidential

Salary Planning Light Report 2015-2016 2

Global Salary Increase Survey Report Availability



Global Salary Increase Survey Report Availability

North America

Canada United States

Asia Pacific

Australia China Fiji Guam Hong Kong India Indonesia Japan Korea Macau Malaysia New Zealand Papua New Guinea Philippines Singapore Sri Lanka Taiwan Thailand Vietnam

Europe/Middle East/ Africa

Angola Austria Azerbaijan Bahrain Belgium Botswana Bulgaria Croatia Cyprus

Czech Republic Denmark Egypt Estonia Finland France Georgia Germany Ghana Gibraltar Greece Hungary Ireland Israel Italy Jordan Kazakhstan Kenya Kuwait Latvia Lebanon Lithuania Luxembourg Malta Morocco Mozambique Netherlands Norway Oman Poland Portugal Qatar Romania Russia Saudi Arabia Serbia Slovakia Slovenia South Africa Spain Sweden

Switzerland Tanzania Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom Yemen Zambia

Latin America

Antigua Argentina Bahamas Barbados Bermuda Bolivia Brazil Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Jamaica Mexico Netherlands Antilles Nicaragua Panama Peru Puerto Rico Trinidad and Tobago Uruguay Venezuela

You may purchase detailed survey results from any of the countries above. The 29th annual Global Salary Planning Report will be available in September 2016. For an order form or additional information, please send an email to [email protected].




Overview of Survey Results


Overview of Total Salary Increases Across Employee Groups

have projected salary freeze for 2017.

Employee Groups

Top Executive/Sr. Mgmt

Middle Management

Junior Mgmt/Prof./Supv

Clerical/Admin/Tech

Manual Workforce

All Employees

0.7% of participating organizations reported salary freeze for 2016, whereas none of the organizations

(423) (420) (367) (367)6.8% 6.8% 6.9% 6.9%6.7% 7.1% 6.7%(139) (123) (119)(147) 7.0%6.8% 6.9% 6.8% 6.8%(219) (216) (180) (173)6.8% 6.9% 6.7%(226) (222) (180) 6.8% (179)

Average

Actual 2016 Projected 2017

6.6%6.6% 6.7% 6.7% 6.7%

Including Salary Freezes and Pay Cuts

Excluding Salary Freezes and Pay Cuts



6.3% 6.7% 6.5%(228) (224) (179) (179)(216) (204) (168) (164)

6.3%

6.6%

6.8%

6.8%

6.7%

6.8%

6.7%

6.7%

6.9%

6.9%

7.1%

6.8%

6.5%

6.7%

6.7%

6.8%

6.7%

6.9%

6.6%

6.7%

6.8%

6.8%

7.0%

6.9%


Middle Management


Clerical/Admin/Tech

Manual Workforce

All Employees

2016 Average, Including Salary Freezes and Paycuts 2016 Average, Excluding Salary Freezes and Paycuts



Overview of Merit Increases Across Employee Groups

Employee Groups


Middle Management


Clerical/Admin/Tech

Manual Workforce

All Employees (367)

(217) (216) (173) (173)(140) (139) (119) (119)6.8%

(179)

(205) (204) (164) (164)6.5%

Average


6.5% 6.5% 6.5% 6.5%




6.5% 6.5% 6.7% 6.7%6.8% 6.9% 6.8%

6.6%6.6% 6.6% 6.6% 6.6%6.6% 6.6% 6.6%(223) (222) (179)

(421) (420) (367)


6.4% 6.4% 6.5%(225) (224) (179) (179)

6.4%

6.5%

6.6%

6.6%

6.8%

6.5%

6.4%

6.5%

6.6%

6.6%

6.9%

6.5%

6.5%

6.5%

6.6%

6.6%

6.8%

6.7%

6.5%

6.5%

6.6%

6.6%

6.8%

6.7%


Middle Management


Clerical/Admin/Tech

Manual Workforce

All Employees


2017Average, Including Salary Freezes and Paycuts 2017 Average, Excluding Salary Freezes and Paycuts


Overview of General Salary Increases Across Employee Groups

Employee Groups


Middle Management


Clerical/Admin/Tech

Manual Workforce

All Employees (76) (75) (54) (54)

(22)(19) (18) (14) (14)

(37) (36) (25) (25)(36) (35) (24) (24)

1.7%

(28) (27) (21) (21)1.4%

1.5% 1.5% 1.3% 1.3%1.7% 1.8% 1.7%

1.5%1.7% 1.8% 1.5% 1.5%1.7% 1.8% 1.5%

(30) (29) (22)

1.5% 1.6% 1.4% 1.4%1.6% 1.6% 1.4%

Average






1.6%

1.5%

1.7%

1.7%

1.7%

1.5%

1.6%

1.6%

1.8%

1.8%

1.8%

1.5%

1.4%

1.4%

1.5%

1.5%

1.7%

1.3%

1.4%

1.4%

1.5%

1.5%

1.7%

1.3%


Middle Management


Clerical/Admin/Tech

Manual Workforce

All Employees


2017Average, Including Salary Freezes and Paycuts 2017 Average, Excluding Salary Freezes and Paycuts


Total Salary Increase Budgets by Type of Company Ownership

Type of Company Ownership

Locally owned company

Foreign owned company

Joint venture company

Other Increase Budgets

Budgets

Salary structure movement

Promotional budget

Special adjustments (103)(162) (162) (141) (141)

0.5%1.5% 0.5% 1.6%(113) (113) (103)3.3% 1.0% 3.4% 1.0%

(173) (173) (149) (149)7.5%(200) (200) (176) (176)

4.7% 4.2%(144) (144) (116)


Average Median Average Median

(116)4.7%4.2%

7.5%6.3% 5.9% 7.0%(18) (18) (18) (18)7.0% 7.0% 6.9% 7.0%6.7% 7.0% 6.9%


Average Median Average Median


Total Salary Increase Budgets by Annual Revenue (in USD)

Annual Revenue

Less than $0.5 million

$0.5–$1.0 million

$1.1–$5.0 million

$5.1–$10.0 million

$10.1–$25.0 million

$25.1–$50.0 million

$50.1–$100.0 million

$100.1–$250.0 million

$250.1–$500.0 million

Above $500 million

Annual Revenue


$0.5–$1.0 million

$1.1–$5.0 million

$5.1–$10.0 million

$10.1–$25.0 million

$25.1–$50.0 million

$50.1–$100.0 million

$100.1–$250.0 million

$250.1–$500.0 million

Above $500 million

Annual Revenue


$0.5–$1.0 million

$1.1–$5.0 million

$5.1–$10.0 million

$10.1–$25.0 million

$25.1–$50.0 million

$50.1–$100.0 million

$100.1–$250.0 million

$250.1–$500.0 million

Above $500 million (10)

(14) (12) (10) (9)(9) (8) (7) (6)

(2)(7) (3) (6) (3)

(8) (5) (6) (4)(9) (9) (7) (7)

6.8%

(3)(6) (6) (5) (5)

(18) (16) (17) (16)

(8) (7) (5) (4)

7.3%

Clerical/Admin/Tech Manual Workforce

Actual 2016 Projected 2017 Actual 2016 Projected 2017

6.5% 7.1% 6.8% 7.1%

(12)(10) (8) (10) (8)

(4) (3) (4) (3)(7) (3) (7) (3)

7.1%

(5)(9) (9) (9) (9)

(4) (4) (4) (4)(7) (7) (7) (7)

6.9%

(14)

(7) (6) (8) (7)

(23) (21) (15) (12)(13) (13) (10) (8)

5.1%

7.1%

(3)

(10) (9) (6) (4)(14) (13) (8) (8)7.2%

(6)

(10) (8) (4) (3)

4.1%

7.4%6.5% 7.1% 6.4% 6.9%7.4% 7.4% 7.7%

(18) (16) (11)

6.3% 6.5% 6.6% 6.0%8.1% 6.5% 7.9%

7.6%7.4% 4.8% 7.3% --6.8% 6.8% 5.4%

(4) (3) (3)

7.1% 6.5% 7.2% 6.8%6.6% 6.9% 7.3%

8.0%7.2% 7.6% 4.5% 4.8%5.8% 5.6% 7.5%

(4) (4) (3)

6.9% 7.2% 7.1%

6.5%6.2% 6.6% 6.5% 6.5%8.0% 6.5% 8.1%

(14) (12) (14)

7.4% 4.8% 7.4% 4.8%6.6% 7.2% 7.1%

6.6%6.9% 6.5% 7.0% 6.7%5.9% 6.7% 6.7%

(7) (5) (7)

7.2% 7.6% 7.2% 7.6%5.5% 6.0% 5.6%

Middle Management Junior Mgmt/Prof./Supv


6.5% 6.7% 6.0% 7.2%7.4% 7.0% 7.3%

6.2%6.5% 6.7% 6.2% 6.5%6.8% 6.9% 7.8%(13) (10) (7)

(30) (28) (16)

7.3% 6.5% 7.4% 4.8%7.4% 7.5% 6.0%

6.2%6.9% 6.7% 6.2% 5.5%6.7% 7.1% 5.9%(13) (12) (6)7.2% 7.6% 7.2% 7.6%6.5% 6.4% 4.3%

All Employees Top Executive/Sr. Mgmt


(11) (9) (8) (7)(4) (4) (4) (4)


Total Salary Increase Budgets by Number of Full-Time Employees

Full–Time Employees

Under 500

500–1,000

1,001–2,000

2,001–5,000

5,001–10,000

10,001–20,000

20,001–50,000

Over 50,000


Under 500

500–1,000

1,001–2,000

2,001–5,000

5,001–10,000

10,001–20,000

20,001–50,000

Over 50,000


Under 500

500–1,000

1,001–2,000

2,001–5,000

5,001–10,000

10,001–20,000

20,001–50,000

Over 50,000 (0)

(3) (3) (2) (2)(2) (2) (2) (2)

(7)(15) (11) (12) (8)

(27) (26) (23) (24)(16) (13) (14) (11)

7.8% 7.8%(14) (11) (8)

(40)

(4) (3) (4) (3)(2) (2) (2) (2)

Clerical/Admin/Tech Manual Workforce


---- -- -- ---- -- --

(2)

(13)(15) (11) (14) (11)

(26) (26) (27) (26)(17) (13) (17) (13)

6.7%

(1)

(85) (68) (84) (69)

(7) (6) (4) (3)(4) (5) (2) (2)

7.0%

--

(13)(24) (20) (14) (10)

(44) (40) (29) (26)(28) (26) (17) (13)6.9%

(160) (148) (76) (61)

All Employees Top Executive/Sr. Mgmt


(2) (2) (2)

-- -- -- ---- -- --

6.5%7.0% 7.2% -- --6.7% 6.8% 6.4%

(2) (2) (0)--

6.8% 7.0%7.0% 6.8% 7.5%

6.8%6.5% 6.3% 6.2% 6.5%7.0% 7.1% 6.7%

6.9%

(82) (66) (47)

6.5% 7.2% 6.9% 7.2%6.8% 6.9% 7.0%

6.9%6.4% 6.5% 6.8% 6.9%7.6% 6.9% 7.5%

(16) (13) (16)

6.4% 6.2% 6.6% 6.2%6.7% 7.1% 6.8%

Middle Management Junior Mgmt/Prof./Supv


-- -- -- --7.5% 7.1% --

6.9%6.3% 5.9% 6.7% 7.2%6.6% 6.9% 6.4%

(2) (2) (1)

6.6% 7.2% 5.6% 5.7%7.2% 6.9% 6.3%

7.0%6.4% 6.5% 6.2% 5.9%7.0% 7.2% 6.7%

(30) (24) (16)


Overall Salary Increase by Performance

% of % of % of % of % of % Salary % Salary % Salary % Salary % Salary

Far Exceeding Expectations

Often Exceeded Expectations

Met ExpectationsOften Did Not Meet

ExpectationsDid not meet Expectations

0.4% 2.4%

Increases Employees Increases Employees Increases Employees Increases Employees Increases

(105)(112) (112) (117) (117) (126) (126) (107) (107) (105)

Employees

10.3% 6.5% 8.3% 22.0% 5.9% 61.8% 2.0% 7.5%


Total Salary Increases By Industry

Manufacturing

Aerospace

Agriculture

Automotive/Vehicle Manufacturing

Auto ProducersAuto Suppliers

Chemicals (not Pharmaceutical)

Consumer Products

Consumer Products - Durable Goods

Consumer Products - Nondurable Goods

Electronics/Electrical

Food/Beverage/Tobacco

Diversified/Multi-Organization

Energy (Power/Oil/Gas)

Oil/Gas

PowerEngineering/Manufacturing

Industrial Machinery/Equipment

Building Materials

Textiles/Apparel Manufacturing

Rubber/Plastics/Glass

Forest & Paper Products/Packaging

Life SciencesAnimal Health

CRO

Pharmaceutical

Medical Devices

Metals

Mining/Milling/Smelting

Other Manufacturing

All Manufacturing

(4)(40) (40) (37) (37)

(14) (14) (13) (13)(2) (2) (2) (2)

(1)(15) (15) (17) (17)

(33) (33) (32) (32)(1) (1) (0) (0)--

(0)(3) (3) (2) (2)

(0) (0) (0) (0)(0) (0) (0) (0)--

(22)(22) (22) (19) (19)

(3) (3) (2) (2)(4) (4) (4) (4)6.9%

(14)(6) (6) (5) (5)

(1) (1) (1) (1)(10) (10) (9) (9)6.9%

(16)(18)

(25) (25) (19) (19)(45) (43) (44) (44)6.7%

(5) (5) (5) (5)(5) (5) (5) (5)

7.0%

--

(20)

6.7% (227) 6.8% (224) 6.8% (202) 6.8% (202)

7.0% 7.0% 7.0%7.2% 9.6% 6.3% 6.3%

-- -- --

7.1%7.6% 7.6% 7.8% 7.8%7.1% 7.1% 7.1%

(4) (3) (4)

-- -- -- ---- -- --

--7.4% 7.4% 7.3% 7.3%6.3% 6.3% --

(2) (2) (1)

-- -- -- ---- -- --

6.1%-- -- -- --

5.8% 5.8% 6.1%

(0) (0) (0)

6.0% 6.0% 6.3% 6.3%7.1% 7.1% 6.9%

6.3%3.9% 3.9% -- --5.4% 5.4% 6.3%

(24) (24) (22)

6.1% 6.1% 6.1% 6.1%6.4% 6.4% 6.9%

7.1%-- -- -- --

7.0% 7.0% 7.1%(19) (19) (18)

(16) (16) (14)

(4) (4) (2) (2)

6.8%6.1% 6.1%

6.6% 6.6% 6.9%(20) (20) (18) (18)

6.9%

6.8% 6.8% 6.8%

7.4% 7.4% -- --6.7% 6.7%

5.9% 6.8% 6.4% 6.4%6.5% 6.8% 6.7%

6.9%6.7% 6.7% 6.9% 6.9%

(15) (13) (16)

6.9%(24) (24)6.9% 6.9%

Average

Actual 2016 Projected 2017Including

Salary Freezes and Pay Cuts




(20)


Total Salary Increases By Industry

Average

Actual 2016 Projected 2017Including

Salary Freezes and Pay Cuts




Services

Banking/FinanceBanks

Insurance - Life & Health

Insurance - Property & Casualty

Insurance - Other

Funds/Asset Management

Investment Banks

Securities

Other Financial Services

Construction/Engineering

Education Services

Engineering Design

Entertainment/Communications/PublicationMedia

Printing/Publishing

Government

Health Care/Medical Services

Hi - Tech

Business/Computer Services

Computers (Software and Hardware)

Application Services/Consulting

Semiconductors

Hospitality/Restaurants/ Travel

Infrastructure

ITeS (IT Enabled Services)

BFSI Captives

KPO/Analytics

Other Captives

Third Party Service Providers

Not-for-Profit (not Hospitals/Schools)

Professional ServicesAdvertising and PR

Accounting

Consulting

Legal

Real Estate

Research/Development

Retail (incl. Wholesale & Distribution)

Telecommunications

Mobile Service ProvidersOther Telecommunication Services

Transportation/ Logistics/ Shipping Services

Other Service

All Services

All Companies

(8)(18) (18) (16) (16)

(3) (3) (3) (3)(6) (6) (6) (6)

(12)(10) (10) (10) (10)

(6) (6) (6) (6)(1) (1) (1) (1)

(6)(1) (1) (1) (1)

(0) (0) (0) (0)(2) (2) (2) (2)

(1)(11) (11) (11) (11)

(1) (1) (1) (1)(2) (2) (2) (2)

(0)(0) (0) (0) (0)

(0) (0) (0) (0)(4) (4) (4) (4)

(11)(18) (18) (18) (18)

(19) (19) (9) (9)(12) (12) (12) (12)

(36)(3) (3) (2) (2)

(0) (0) (0) (0)(1) (1) (0) (0)

(3)(1) (1) (1) (1)

(2) (2) (1) (1)(4) (4) (4) (4)

(4)(2) (2) (1) (1)

(0) (0) (0) (0)(8) (8) (7) (7)

(1)(0) (0) (0) (0)

(1) (1) (1) (1)(3) (3) (2) (2)

(23)(5) (5) (5) (5)(7) (7) (6) (6)

(367)

(165)

8.7%

--

--

--

8.0%

7.5%

--

7.3%

7.7%

--

7.2%

6.8% (423) 6.8% (420) 6.9% (367)

6.8%

6.9% (196) 6.9% (196) 7.1% (165) 7.1%

7.2% 7.2% 6.8%

6.9%

6.8% 6.8% 6.5% 6.5%8.3% 8.3% 8.7%

8.1%7.0% 7.0% 7.0% 7.0%7.9% 7.9% 8.1%

(10) (10) (8)

7.1% 7.1% 6.9% 6.9%-- -- --

--6.9% 6.9% 6.9% 6.9%

-- -- --

(17) (17) (12)

7.9% 7.9% 8.8% 8.8%-- -- --

8.0%-- -- -- --

7.3% 7.3% 8.0%

(6) (6) (6)

-- -- -- ---- -- --

---- -- -- ---- -- --

(1) (1) (1)

-- -- -- --7.7% 7.7% 8.0%

5.7%-- -- -- --

5.6% 5.6% 5.7%

(0) (0) (0)

7.2% 7.2% 7.2% 7.2%7.1% 7.1% 7.5%

--7.1% 7.1% 7.2% 7.2%7.6% 7.6% --

(14) (14) (11)

7.1% 7.1% 7.4% 7.4%-- -- --

---- -- -- ---- -- --

(51) (51) (36)

7.2% 7.2% 7.2% 7.2%7.3% 7.3% 7.3%

---- -- -- ---- -- --

(3) (3) (3)

5.5% 5.5% 6.4% 6.4%7.1% 7.1% 7.7%

---- -- -- ---- -- --

(8) (8) (4)

-- -- -- --7.7% 7.7% --

8.4%-- -- -- --

6.8% 6.8% 8.4%

(1) (1) (1)

4.6% 4.6% 4.7% 4.7%6.7% 6.7% 7.2%(27) (27) (23)




Pay and Performance


Pay and PerformanceVariable Pay Plans

80.5% of the organizations have variable pay programs for employee groups apart from the sales incentive plans forsales population.

Alignment of Variable Pay Plan54.3% of the organizations have reported having a Corporate variable plan, while 15.7% of respondents have a Global Business

Line variable pay plan.

Additionally, 23.3% of 146 respondents reported having separate local plans in addition to global/regional plans.Of the organizations aligning their variable pay plan globally or at a regional level, 76.7% reported that they do not make any adjustments.

Adjustments made to the global/regional plan at the country level

No adjustments are made

Eligibility Criteria

Targets

Measures

*Percentages will total more than 100% due to multiple responses given by some participants

(n=154)

(n=70)

(n=95)

Percent of Organizations*

29.5% (28)

41.1% (39)15.8% (15)41.1% (39)

Yes80.5%

No19.5%

No10.0%

Yes, Corporate54.3%

Yes, Global Business Line

15.7%

Yes, Regional14.3%

Yes, Regional Business Line

5.7%


Pay and PerformancePrevalence by Award Type

Individual performance awards are the most prevalent type of plan with 67.2% of the organizations providing the same.

Individual performance awards

Team awards

Gain Sharing/Productivity Awards

Cash profit sharing awards

Business incentive awards

Special recognition awards

*Percentages will total more than 100% due to multiple responses given by some participants

**Any bonus or incentive plans intended only for sales population have been excluded from these calculations.

16.0% (21)30.5% (40)42.0% (55)

Type of PlansPercent of

Organizations*

26.0% (34)16.0% (21)

67.2% (88)

(n=131)


Pay and PerformancePrevalence of Variable Pay Plans by Employee Group

Individual performance awards

Top Executive/Sr. Mgmt (64)Middle Management (75)Junior Mgmt/Proff./Supv (77)Clerical/Admin/Tech (63)Manual Workforce (37)

Team awards


Gain sharing/productivity awards


Cash profit sharing awards


Business incentive awards


Special recognition awards


*Percentages will total more than 100% due to multiple responses given by some participants (n=131)**Any Bonus or incentive plans intended only for sales population have been excluded from these calculations.

39.7%35.1%26.7%

8.4%

20.6%32.8%

13.7%

11.5%9.9%

11.5%11.5%7.6%

22.1%26.0%22.9%

13.0%

7.6%8.4%9.2%7.6%

13.0%

16.8%

Type of PlanPercent of

Organizations

48.9%57.3%58.8%48.1%28.2%

9.9%16.0%20.6%


Pay and PerformancePrevalence of Variable Pay by Industry

Manufacturing

Aerospace -- (1)Agriculture -- (2)Automotive/Vehicle Manufacturing 42.9% (7)

Auto Producers -- (0)Auto Suppliers 42.9% (7)

Chemicals (not Pharmaceutical) 91.7% (12)Consumer Products 88.9% (18)

Consumer Products - Durable Goods 60.0% (5)Consumer Products - Nondurable Goods 100.0% (5)Electronics/Electrical -- (1)Consumer Products - Food/Beverage/Tobacco 100.0% (7)

Diversified/Multi-Organisation 100.0% (3)Energy (Power/Oil/Gas) -- (1)

Oil/Gas -- (1)Power -- (0)

Engineering/Manufacturing 76.9% (13)Industrial Machinery/Equipment 75.0% (12)Building Materials -- (0)Textiles/Apparel Manufacturing -- (0)Rubber/Plastics/Glass -- (0)

Forest & Paper Products/Packaging -- (2)Life Sciences 93.8% (16)

Animal Health -- (0)CRO -- (1)Pharmaceutical 100.0% (7)Medical Devices 87.5% (8)

Metals -- (1)Mining/Milling/Smelting -- (2)Other Manufacturing 62.5% (8)

All Manufacturing 85.2% (54)

Percent of

Organizations


Pay and PerformancePrevalence of Variable Pay by Industry

Percent of

Organizations

Services

Banking/Finance 90.9% (11)Banks -- (2)Insurance - Life & Health 75.0% (4)Insurance - Property & Casualty -- (1)Insurance - Other -- (0)Funds/Asset Management -- (1)Investment Banks -- (0)Securities -- (0)Other Financial Services -- (2)

Construction/Engineering -- (1)Education Services -- (0)Engineering Design -- (0)Entertainment/Communications/Publication -- (0)

Media -- (0)Printing/Publishing -- (0)

Government -- (0)Health Care/Medical Services -- (0)Hi - Tech 88.0% (25)

Business/Computer Services -- (1)Computers and Related Products (Software and Hardware) 80.0% (10)Application Services/Consulting 100.0% (4)Semiconductors 88.9% (9)

Hospitality/Restaurants/ Travel 75.0% (4)Infrastructure -- (0)ITeS (IT Enabled Services) -- (2)

BFSI Captives -- (0)KPO/Analytics -- (0)Other Captives -- (0)Third Party Service Providers -- (1)

Not-for-Profit (not Hospitals/Schools) -- (0)Professional Services 50.0% (4)

Advertising and PR -- (0)Accounting -- (2)Consulting -- (1)Legal -- (0)

Real Estate -- (1)Research/Development -- (1)Retail (incl. Wholesale & Distribution) 60.0% (5)Telecommunications 100.0% (3)

Mobile Service Providers -- (0)Other Telecommunication Services 100.0% (3)

Transportation/ Logistics/ Shipping Services 66.7% (6)Other Service 60.0% (5)

All Services 83.7% (43)

All Companies 79.5% (156)


Pay and PerformanceOrganisation's Variable Plan Payout

70.2% of the organizations did make a payout in 2016.

All employees


Middle Management

Junior Mgmt/Proff./Supv

Clerical/Admin/Tech

Manual Workforce

Organization Spending on Broad Based Variable Pay Awards

The Variable Pay spending reported below is based on an average of the organizations that report prevalence of a Variable

Pay Plan. Spending is calculated by the amount of all Variable Pay awards divided by the amount of Total Cost to Company

(excluding Sales Incentive Plans) of the eligible employee group.

Average Spending as a Percent of Payroll

All employees


Middle Management


Clerical/Admin/Tech

Manual Workforce

*All organizations having no or zero payout have been excluded from the above numbers

(38)73.0%

(58)75.8% (56)78.1%

(n=141)

89.0% (72)

Employee Groups

(85)

Employee GroupsAverage percentage of Employees

receiving a payout

(58)77.2% (60)70.5%


(77)(72)

18.0%11.9%

(76)(78) 21.4%

22.8%24.6%19.6%16.2%10.9%9.9% 9.6%(46)

(71)(66)(68)(66)(64)(40)

24.6%25.7%

Yes70.2%

No29.8%


Pay and PerformanceLong-Term Incentives

45.4% of the responding organizations have reported that they offer long-term incentives.

Restricted stock is the most prevalent type of LTI plan, with 39.4% of the responding organizations offering it.

Stock options

Performance shares/units

Restricted StockPhantom Stock

Other

*Percentages will total more than 100% due to multiple responses by some participants (n=66)

31.8% (21)

39.4% (26)

33.3% (22)39.4% (26)6.1% (4)

(n=152)

Types of PlansPercent of

Organizations*

Yes45.4%

No54.6%


Pay and PerformancePrevalence of Long Term Incentives by Employee Group

Stock Options


Middle Management


Performance Shares/Units


Middle Management


Restricted Stock


Middle Management


Phantom Stocks


Middle Management


Other


Middle Management


*Percentages will total more than 100% due to more than one response by some participants (n=66)

Types of Plans

(21)(8)(4)

31.8%12.1%6.1%

Percent of Organisations *

4.5%1.5%3.0%

(23)(14)(9)

(3)

34.8%21.2%13.6%

(1)

40.9%21.2%13.6%

33.3%9.1%4.5%

(2)

(27)(14)(9)

(22)(6)(3)


Pay and PerformancePercentage of Employees Receiving Long-Term Incentives

Employee Group


Middle Management


LTI Earning Opportunity / Potential Gain as a percentage of Total Fixed Pay

Employee Group


Middle Management


17.4%

24.9%12.8%6.7%

(39)(29)(22)

an average to Total Fixed PayOpportunity / Potential Gain as

Average LTI Earning

for 2016

Average percent of Employeesreceiving grants of any type

51.2%39.8%

(48)(34)(24)


Pay and PerformancePrevalence of Long Term Incentive Plans by Industry

Manufacturing

Aerospace

AgricultureAutomotive/Vehicle Manufacturing

Auto Producers

Auto Suppliers


Consumer Products




Consumer Products - Food/Beverage/Tobacco

Diversified/Multi-Organisation


Oil/Gas

Power

Engineering/Manufacturing


Building Materials




Life Sciences

Animal Health

CRO

Pharmaceutical

Medical Devices

Metals


Other Manufacturing

All Manufacturing 51.9%

------

68.8%----

71.4%62.5%

----

28.6%

--

66.7%60.0%66.7%

--66.7%66.7%

------

38.5%33.3%

54.5%

Percent ofOrganizations

----

16.7%--

16.7%

(1)(2)(6)(0)(6)

(6)(3)(1)(1)(0)

(11)(18)(5)(6)(1)

(2)(16)(0)(1)(7)

(13)(12)(0)(0)(0)

(8)(1)(2)(7)

(52)


Pay and PerformancePrevalence of Long Term Incentive Plans by Industry

Percent ofOrganizations

Services

Banking/Finance

Banks



Insurance - Other


Investment Banks

Securities



Education Services

Engineering Design

Entertainment/Communications/Publication

Media

Printing/Publishing

Government


Hi - Tech


Computers and Related Products (Software and Hardware)


Semiconductors


Infrastructure


BFSI Captives

KPO/Analytics

Other Captives



Professional Services

Advertising and PR

Accounting

Consulting

Legal

Real Estate



Telecommunications

Mobile Service Providers

Other Telecommunication Services


Other Service

All Services

All Companies

0.0%

42.9%

45.4%

--0.0%0.0%

--0.0%33.3%

--

------------

25.0%--------

--

----------

60.0%--

70.0%75.0%44.4%25.0%

--

36.4%--

25.0%----------------

(11)(2)(4)(1)(0)

(0)(0)(0)(0)(0)

(1)(0)(0)(2)(2)

(4)(9)(4)(0)(2)

(0)(0)(25)(1)(10)

(4)(0)(2)(1)(0)

(0)(0)(0)(1)(0)

(3)(6)(4)

(42)

(152)

(1)(1)(4)(3)(0)




Workforce Size


Workforce SizeAttrition across Employee Groups


Middle Management


Clerical/Admin/Tech

Manual Workforce

Critical Talent

All Employees

(58)1.5%(68)(63)7.7%(59)6.1%

8.2%(65)6.3%(60)1.8%

4.9% (83) 14.0% (92) 18.3% (101)

(34)5.5% (42) 13.7% (43) 19.5% (45)1.2% (31) 3.9% (33) 4.9%

(62)2.9% (63) 8.5% (67) 11.3% (72)3.1% (57) 8.1% (61) 11.4%

Employee GroupsInvoluntary Turnover

RateVoluntary

Turnover RateOverall

Turnover Rate

1.5%

1.8%

2.9%

3.1%

5.5%

1.2%

4.9%

6.1%

6.3%

8.5%

8.1%

13.7%

3.9%

14.0%

7.7%

8.2%

11.3%

11.4%

19.5%

4.9%

18.3%


Middle Management


Clerical/Admin/Tech

Manual Workforce

Critical Talent

All Employees

Overall Turnover Rate Voluntary Turnover Rate Involuntary Turnover Rate


Workforce SizeOverall Attrition by IndustryThe average turnover rate for responding organisations is 18.3%.

Manufacturing

Aerospace

Agriculture


Auto Producer

Auto Suppliers


Consumer Products







Oil/Gas

Power



Building Materials




Life Sciences

Animal Health

CRO

Pharmaceutical

Medical Devices

Metals


Other Manufacturing

All Manufacturing

(3) 21.9% (4)

16.6% (31) 6.4% (12) 8.6% (10)(12) 10.2% (12) 14.6% (11) 21.8%

33.2% (3) 0.0% (3) 0.4% (3) 3.4% (3) 1.2%

-- (0) -- (0) -- (0)-- (0) -- (0) -- (0) -- (0) --

(0) -- (0) -- (0) --(0) -- (0)

(6) 1.4% (4)14.7% (6) -- (2) 7.1% (3) 12.8% (3) -- (2) -- (2)18.6% (7) 10.9% (6) 10.4% (6) 15.5% (6) 14.6%

(0) -- (0)-- (1) -- (0) -- (0)(0) -- (0) -- (0) ---- (0) -- (0) -- (0) -- (0) --

-- (1) -- (0) -- (0)16.6% (14) 9.5% (8) 9.3% (9) 14.6% (9) 13.6%

(0) -- (0) -- (0) --(8) 4.3% (6)

(0) -- (0)-- (0) -- (0) -- (0) -- (0) -- (0) -- (0)-- (0) -- (0) -- (0) -- (0) --

(5) 19.4% (5)-- (0) -- (0) -- (0)(0) -- (0) -- (0) --

11.8% (9) 0.0% (5) 5.3% (5) 8.3% (5) 14.2%

-- (0) -- (0) -- (0)11.3% (10) 0.0% (5) 5.3% (5) 8.3% (5) 14.2%

(0) -- (0) -- (0) --(5) 19.4% (5)

(0) -- (0)-- (1) -- (0) -- (0) -- (0) -- (0) -- (0)-- (1) -- (0) -- (0) -- (0) --

(3) 21.3% (3)23.4% (3) -- (1) -- (0)(1) -- (1) -- (1) --17.0% (5) 11.1% (3) 13.7% (3) 15.3% (3) 14.7%

16.4% (5) -- (2) 9.1% (2)-- (1) -- (1) -- (1) -- (1) --

(3) 5.4% (3) 12.4% (3) --(1) -- (1)

(8) 17.2% (6)-- (2) -- (1) -- (1) -- (1) -- (1) -- (0)

15.1% (13) 8.7% (7) 10.8% (8) 9.9% (8) 12.3%

--

(4) 18.5% (4)11.8% (6) 8.8% (3) 8.8% (2)(3) 11.1% (3) -- (2) --20.6% (4) 1.1% (3) 1.0% (3) 1.5% (4) 5.5%

20.6% (4) 1.1% (3) 1.0% (4)-- -- (0) --

(3) 1.5% (4) 5.5% (4) 18.5%(0)

(1) -- (0) -- (0) -- (0) --

-- (0)

Junior Manager/

Supervisor/Professional

General StaffManual

Workforce

(0) -- (0)(0) -- (0)

Overall

-- (2) -- (0) -- (0) -- (0) --

Top Executive

Middle Management

(0) -- (0) -- (0)

Critical Talent

--

-- (1)-- (2)-- (1)-- (0)-- (0)

2.1% (3)-- (0)

4.4% (4)-- (1)-- (0)

--(0)(0)

2.1% (3)-- (0)

-- (0)-- (0)

3.9% (4)-- (0)-- (0)

-- (0)2.8% (5)2.8% (5)

-- (0)-- (0)

4.1% (8)

-- (2)-- (2)-- (0)-- (0)-- (2)


Workforce SizeOverall Attrition by IndustryThe average turnover rate for responding organisations is 18.3%.

Junior Manager/

Supervisor/Professional

General StaffManual

WorkforceOverall

Top Executive

Middle Management

Critical Talent

Services

Banking/Finance

Banks



Insurance - Other


Investment Banks

Securities



Education Services

Engineering Design


Media

Printing/Publishing

Government


Hi - Tech


Computers and Related Products


Semiconductors


Infrastructure


BFSI Captives

KPO/Analytics

Other Captives




Advertising and PR

Accounting

Consulting

Legal

Real Estate



Telecommunications




Other Service

All Services

All Companies

(2) --

(10)

18.3% (101) 7.7% (63) 8.2%

(2) -- (0)

19.4% (28) 8.5% (20) 10.0% (22) 14.3%

(45)(68) 11.3% (72) 11.4% (62) 19.5%

(23) (17) 14.6%12.4%

-- (2) --

(0)17.4% (5) 5.9% (6) 5.8% (4)(6) 4.3% (6) 8.2% (6) 23.6%

-- (2) -- (1) -- (1) --

(2) -- (2) --

(2) --

-- (2) -- (1) -- (0)-- (0) -- (0) -- (0) -- (0) --

(1) -- (2) -- (1) --(0) -- (0)(1) --

(1) -- (1)35.4% (4) -- (2) -- (2) -- (2) -- (2) -- (2)

-- (1) -- (1) -- (1) -- (1) --

(0) -- (0)-- (1) -- (0) -- (0)(0) -- (0) -- (0) ---- (0) -- (0) -- (0) -- (0) --

-- (2) -- (1) -- (1)-- (1) -- (0) -- (0) -- (0) --

(1) -- (1) -- (1) --(0) -- (0)

(1) -- (1)-- (0) -- (0) -- (0) -- (0) -- (0) -- (0)

19.7% (3) -- (1) -- (1) -- (1) --

(0) -- (0)-- (0) -- (0) -- (0)(0) -- (0) -- (0) ---- (1) -- (0) -- (0) -- (0) --

-- (0) -- (0) -- (0)-- (0) -- (0) -- (0) -- (0) --

(0) -- (0) -- (0) --(0) -- (0)

(0) -- (0)-- (0) -- (0) -- (0) -- (0) -- (0) -- (0)-- (1) -- (0) -- (0) -- (0) --

(1) -- (1)-- (0) -- (0) -- (0)(0) -- (0) -- (0) ---- (1) -- (1) -- (1) -- (1) --

-- (2) 4.8% (3) 9.3% (1)18.3% (6) 0.1% (4) 0.3% (5) 8.3% (6) 2.4%

(3) 20.1% (3) -- (2) --(5) 29.8% (4)

(1) -- (1)21.5% (6) 5.8% (4) 21.5% (6) 23.5% (7) 8.5% (3) -- (1)

-- (1) -- (2) -- (2) -- (2) --

(0) -- (0)19.6% (15) 3.1% (13) 10.4% (7)(16) 16.1% (18) 9.1% (11) 21.2%

-- (0) -- (0) -- (0) -- (0) --

-- (0) -- (0) -- (0)-- (0) -- (0) -- (0) -- (0) --

(0) -- (0) -- (0) --(0) -- (0)

(0) -- (0)-- (0) -- (0) -- (0) -- (0) -- (0) -- (0)-- (0) -- (0) -- (0) -- (0) --

(0) -- (0)-- (0) -- (0) -- (0)(0) -- (0) -- (0) ---- (0) -- (0) -- (0) -- (0) --

-- (1) -- (0) -- (0)-- (1) -- (1) -- (1) -- (1) --

(1) -- (1) -- (1) --(1) -- (1)

(0) -- (0)-- (0) -- (0) -- (0) -- (0) -- (0) -- (0)-- (0) -- (0) -- (0) -- (0) --

(0) -- (0)-- (0) -- (0) -- (0)(0) -- (0) -- (0) ---- (0) -- (0) -- (0) -- (0) --

-- (2) 10.0% (4) 11.8% (1)-- (1) -- (0) -- (0) -- (0) --

(4) 13.7% (4) 18.5% (4) --(0) -- (0)

(5) -- (1)-- (2) -- (1) -- (0) -- (0) -- (0) -- (0)

18.8% (6) 28.0% (5) 10.1% (5) 15.3% (5) 16.5% ----

(2)(0)

-- (2)-- (0)

-- (1)-- (0)-- (0)-- (0)-- (0)

-- (0)-- (0)-- (0)-- (0)-- (0)

-- (2)-- (1)-- (1)-- (0)-- (0)

-- (0)-- (0)-- (0)

2.3% (4)-- (0)

-- (0)-- (1)-- (0)-- (1)-- (0)

-- (0)-- (0)-- (0)-- (0)-- (0)

4.9%

(8)

(34)

-- (0)-- (1)

7.1% (4)-- (0)

1.1%

-- (0)-- (0)-- (1)-- (1)-- (1)


Workforce SizeReasons for Voluntary Attrition

External Equity of Compensation

Better External Opportunity

Limited growth opportunities

Work life balance

Other

(n=117)* Prevalence denotes the frequency of reason for attrition as cited by responding organisations, irrespective of rank.

Key Retention Measures

Pay above market (Off cycle Market Adjustment or Merit Increases)

Long-Term Incentives

Short-Term Incentives

Accelerated Career Development Opportunities

Improved Work Life Balance

Timely and meaningful feedback from managers

Attractive benefits package

Other

(n=120)* Prevalence denotes the frequency of retention measures cited by responding organisations, irrespective of rank.

Key Attraction Measures

Competitive fixed compensation

Competitive variable compensation (eg. Bonus, stock awards etc)

Competitive benefits and perquisites (eg. Pension, company car, time off)

Work environment (eg. Leadership, culture, flexible work arrangements)

Career development opportunities

Other

(n=118)* Prevalence denotes the frequency of attraction measures cited by responding organisations, irrespective of rank.

6.8%36

83.9%61.9%

278.0%

81.4%61.9%

145

Measures Prevalence

50.0%

8.3%

61.7%

Rank

52

752.5% 4

72.5%62.5% 3

1

50.0%37.5%

86

27.4%

Measures Prevalence Rank

5

Reasons Prevalence

61.5%

68.4%94.9%74.4%

3124

Rank


Workforce SizeCommunication

Of the 154 responding organizations, 72.1% have formal salary ranges. Out of these, 17 organizations communicate their

salary ranges to their employees, details of which are given in the table below.

Employees know their own salary range information only (21)Communicate all salary range information to all employees, excluding executive salary ranges (6)

Total Compensation StatementsOf the responding organizations, 47% provide their employees with total compensation statements.

(n=151)

Communicate Compensation PhilosophyOf the responding organizations, 47% communicate their compensation philosophy to their employees.

(n=151)

Leadership\Line Manager (47)Human Resource Department (30)Joint responsibility between Leadership/Line Manager and Human Resource Department (82)

(n=147)

32.0%20.4%55.8%

CommunicationPercent of

Organisations

77.8%22.2%

Responsibility of CommunicationsPercent of

Organizations

Yes47.0%

No53.0%

Yes47.0%

No53.0%




Pay Delivery & Management


Pay Delivery & ManagementFactors Considered while making Budget Recommendations

Organization Performance is the most prevalent factor driving budget recommendations with 88% of the organisations citingthis as a factor.

Organization Performance

Industry Performance

Competitive positioning with respect to the relevant market

Market survey benchmarking the % granted/ Planned by other companies

Payroll Cost as a percentage to Revenue

Other Employee Costs such as Training, Recruitment etc.

Manpower Productivity

Employee Attrition

Inflation

Others


Factors Influencing Organisation's Pay Decisions

Performance is the most prevalent factor driving pay decisions with 96.1% of the organisations citing this as an influence.

Factors

Knowledge & Skill

Internal Equity

Performance

Potential

Scope & Size of Role

Seniority of Level

Availability of Budgets

Market Competitiveness of Pay

Others


72.2% (114)

75.5% (117)85.2% (132)1.3% (2)

45.8% (71)46.5% (72)38.1% (59)

96.1% (149)

24.1% (38)58.9% (93)3.2% (5)

Percent of Organizations*

58.1% (90)77.4% (120)

39.2% (62)12.0% (19)17.7% (28)

Factors

64.6% (102)

Percent of Organisations*

88.0% (139)41.8% (66)


Pay Delivery & ManagementPay Ranges for Internal Pay Management Process We asked companies to identify the pay range they use for their internal pay management process

Methodologies Used to Determine Pay Increase

Frequency of Salary Increases

93.2% of responding organisations have a yearly frequency for Salary Increases.

Once a year

2 Times a year

More than 2 times a year

(n=148)Factors affecting the frequency of Salary Increases

Individual assessment

Cost of living adjustment

Others

(n=19)

FactorsPercentage ofOrganizations

100.0% (19)21.1% (4)5.3% (1)

6.1%0.7%

(9)(1)

A majority of the organisations confirmed differentiating salary increases by performance rating and by the current positioning / compa-ratio of employees within the current pay range. This approach promotes a fine balance between external as well as internal parity.

Percentage ofOrganizations

93.2%

(n=158)

(n=156)

(138)

Frequency

Level Pay Ranges41.1%

Level Functional Pay

Ranges34.8%

Position Pay Ranges13.9%

No Pay Ranges10.1%

Performance Rating26.9%

Merit Matrix based on performance and positioning/compa

ratio of the individual in the current range

60.9%

Discretionary7.7%

Others4.5%


Pay Delivery & ManagementPerformance Rating Scale

Month of Salary Revision

The graph below indicates the months in which organisations revise their salaries. As seen below, 32.6% of the respondents

reported April as the month of salary revision.

(n=135)

(n=158)

No performance rating scale,

7.0%3-point scale,

7.0%

4-point scale, 15.8%

5-point scale, 58.9%

6-point scale, 5.7%

Others, 5.7%

17.0%

1.5%

17.0%

32.6%

0.7%

2.2%

5.9%

2.2%

2.2%

5.2%

3.7%

9.6%

January

February

March

April

May

June

July

August

September

October

November

December




High Potentials and Top Performers



High Potentials—An elite group of employees who are seen as being capable of contributing to the organisation in a role with greater complexity, impact, scope and scale than their current roles. They have the versatility to play

a number of roles in the organisation; demonstrate the ability to see things from new perspectives and to quickly

adapt; would be difficult to replace due to the value that they bring to the organisation; and consistently deliver

strong results.

Top Performers—A group of employees who clearly and consistently demonstrate extraordinary and exceptional accomplishments in all major areas of responsibility. Performance of this caliber is rarely qualed by others who

hold positions of comparable responsibility. A top performer is not automatically a High Potential.

Critical Talent/ Key Positions —Those positions that require specific knowledge and specialisation. Would be difficult to replace them due to the value that they bring to the organisation. Positions that support

the core business, without them the operations are at risk and with them profitability and growth is achieved.

Low Performers— A group of employees who clearly and consistently demonstrate a performance under the minimum expectations in mayor areas of responsibility. Low performers could be either or both in terms of

results or versus individual objectives or disruptive behaviors for the team or for the company efficiency and/or values.

Identification of High Potentials, Top and Low Performers and Key Positions70% of the responding organisations could identify their high potentials. 88.1% can identify their top performers.

Low performers can be identified by 76.2% and 88.7% could identify key positions.

Separate Merit Budget for High Potentials, Top and Low Performers and Key Positions6% of the responding organisations use a separate merit budget for high potentials, 12.6% for top performers and 8.6% for

critical talent.

Separate Merit Budget

In addition to the overall merit budget for all employees

A "carve out" of the overall merit budget for all employees

Unsure

Percentage of Overall Merit Budget allocated for High Potentials, Top Performers and Key Positions

Count (16)(16) (14) (23) (20) (18)

11.8% 0.0%

Actual 2016 Projected 2017 Actual 2016 Projected 2017 Actual 2016 Projected 2017

Percentage of Overall Merit Budget

Percentage of Organisations

28.2% (11)

High Potentials Top Performers Key Positions

35.9% (14)35.9% (14)

(n=39)

12.6% 14.1% 11.2% 12.5%



Rewards with the Greatest Impact

Most participants indicated that merit increases and promotions and variable pay as well have the greatest ability to reward high

potentials as well as top performers and key positions

Type of Reward

Merit increases to base salary

Promotions

Variable pay (bonus/incentive)

Stock/Stock options

Unsure

Other

High Potentials Top Performers

Key Positions

(n=132) (n=135) (n=131)

(4)

(10)

(26)

(14)

(18)

10.7%

High Potentials Top Performers Key Positions

2.3% (3) 1.5% (2) 3.1%

6.1% (8) 0.7% (1) 19.8%

8.3% (11) 3.7% (5) 7.6%

14.4% (19) 39.3% (53) 13.7%

Special recognition (cash, merchandise, travel) 3.0% (4) 5.9% (8)

(26)

9.8% (13) 32.6% (44) 25.2% (33)

56.1% (74) 16.3% (22) 19.8%


9.8%

Promotions56.1%Special

recognition (cash,

merchandise, travel)3.0%

Variable pay (bonus/incen

tive)14.4%

Stock/Stock options6.1%

Unsure8.3%

Other2.3%


32.6%

Promotions16.3%

Special recognition

(cash, merchandise

, travel)5.9%

Variable pay (bonus/incen

tive)39.3%


Unsure3.7%

Other1.5%


25.2%

Promotions19.8%

Special recognition (cash, merchandise,

travel)10.7%

Variable pay (bonus/incentive)

13.7%


Unsure7.6%

Other3.1%


High Potentials and Top PerformersMethods Used to Ensure Differential Pay

The methods used to differentiate pay increases for high potentials, top performers and/or key positions are shown

in the table below.

Methods used

(9) 32.0% (8)

Other (2) 50.0% (1) 0.0% 50.0% (1)(0)

Managers receive training in differentiation in pay decisions for :

(13) 15.4% (2) 53.8% (7) 30.8% (4)

Written guidance is given to managers around high differentiation for :

(15) 40.0% (6) 46.7% (7) 13.3% (2)

59.0% (23)(6)Pay adjustments outside the merit process budget for :

(39) 25.6% (10) 15.4%

Mid-year/more frequent salary reviews for:

(25) 32.0% (8) 36.0%

(5) 56.3% (9)Separate merit budget for: (16) 12.5% (2) 31.3%

(n) High Potentials Top Performers Key Positions

Merit matrix includes highest increases for:

(68) 1.5% (1) 85.3% (58) 13.2% (9)




Participation Demographics


Participant DemographicsParticipant Demographics by Industry

Manufacturing

Aerospace

Agriculture


Auto Producers

Auto Suppliers


Consumer Products







Oil/Gas

Power



Building Materials




Life Sciences

Animal Health

CRO

Pharmaceutical

Medical Devices

Metals


Other Manufacturing

All Manufacturing

1214132540

244

31

101685425230003

2

Number of Participants

652632229461815


Participant DemographicsParticipant Demographics by Industry

Number of Participants

Services

Banking/Finance

Banks



Insurance - Other


Investment Banks

Securities



Education Services

Engineering Design


Media

Printing/Publishing

Government


Hi - Tech


Computers and Related Products (Software and Hardware)


Semiconductors


Infrastructure


BFSI Captives

KPO/Analytics

Other Captives




Advertising and PR

Accounting

Consulting

Legal

Real Estate



Telecommunications




Other Service

All Services

All Companies

61118

213

457

3

21110261612010

1

13543191415180510

0

320010822431

1

3167


Participant DemographicsParticipant Demographics by Annual Revenue

All Companies


$0.5-$1.0 million

$1.1-$5.0 million

$5.1-$10.0 million

$10.1-$25.0 million

$25.1-$50.0 million

$50.1-$100.0 million

$100.1-$250.0 million

$250.1-$500.0 million

Above $500 million

Manufacturing


$0.5-$1.0 million

$1.1-$5.0 million

$5.1-$10.0 million

$10.1-$25.0 million

$25.1-$50.0 million

$50.1-$100.0 million

$100.1-$250.0 million

$250.1-$500.0 million

Above $500 million

Services


$0.5-$1.0 million

$1.1-$5.0 million

$5.1-$10.0 million

$10.1-$25.0 million

$25.1-$50.0 million

$50.1-$100.0 million

$100.1-$250.0 million

$250.1-$500.0 million

Above $500 million

(n=47)

19.1% (9)

12.8% (6)

12.8% (6)

17.0% (8)

4.3% (2)

14.9% (7)

4.3% (2)

30.3% (20)

(n=66)

6.4% (3)

4.3% (2)

4.3% (2)

Annual RevenuePercent of

OrganizationsNo. of

Responses

Annual RevenuePercent of

OrganizationsNo. of

Responses

(2)

9.1% (6)

1.5% (1)

4.5% (3)

3.0%

2.7% (3)

4.5% (3)

(8)

14.2% (16)

15.9% (18)

11.5% (13)

7.1%

23.0% (26)

(n=113)

Percent of Organizations

5.3%

3.5% (4)

7.1% (8)

Annual RevenueNo. of

Responses

(6)

9.1% (6)

13.6% (9)

13.6% (9)

10.6% (7)

9.7% (11)


Participant DemographicsParticipant Demographics by Organisation Size

All Companies

Under 500

500-1,000

1,001-2,000

2,001-5,000

5,001-10,000

10,001-20,000

20,001-50,000

Over 50,000

Manufacturing

Under 500

500-1,000

1,001-2,000

2,001-5,000

5,001-10,000

10,001-20,000

20,001-50,000

Over 50,000

Services

Under 500

500-1,000

1,001-2,000

2,001-5,000

5,001-10,000

10,001-20,000

20,001-50,000

Over 50,000

0.0% (0)

58.8% (87)14.2% (21)9.5% (14)

0.7% (1)

(n=148)

8.1% (12)6.8% (10)2.0% (3)

Number of Full-Time Employees


No. ofResponses

10.5% (19)7.7% (14)2.2% (4)2.8% (5)0.6% (1)

(n=181)

50.3% (91)14.4% (26)11.6% (21)

0.6% (2)

(n=329)



No. ofResponses

7.3% (24)2.1% (7)1.5% (5)

14.3% (47)10.6% (35)9.4% (31)



No. ofResponses

54.1% (178)


Participant DemographicsParticipant Demographics by Company Ownership

All Companies




Manufacturing




Services




(n=197)

(n=225)

44.2% (87)6.6% (13)

Company OwnershipPercent of

OrganizationsNo. of

Responses

49.2% (97)

(n=422)

41.8% (94)2.7% (6)


OrganizationsNo. of

Responses

55.6% (125)

42.9% (181)4.5% (19)


OrganizationsNo. of

Responses

52.6% (222)




Employee Engagement


Employee Engagement

51.5% of the organizations measure their employee engagement score.

(n=136)

Employee Engagement Score

Actively Disengaged (8)Highly Engaged (7)46.7%

(n=15)

Level of EngagementPercent of

OrganizationsNo. of

Responses

53.3%

Yes51.5%

No48.5%




Appendix



Definitions of Terms

Report Definitions The following are brief definitions of some of the concepts that are used throughout this report.

Top Executive/Senior Management

Top executives and senior managers play a key role in both short- and long-term decision-making of a major function area or business unit, direct or coordinate activities within two or more major departments, establish policy, and have a major impact on the achievement of the business unit or function goal.

Example: Country manager and direct reports

Middle Management

Middle management are first-line managers, who manage the activities of one major department and set-up standard procedure and policy or lead projects or programs which have broad effect on overall policy and achievement of Organisation-wide objectives.

Example: Plant manager, business unit controller, marketing manager, systems manager

Junior Management/Professional/Supervisor

Provide day-to-day management of a team has knowledge of a specialized field of technical or administrative function and resolve problems of some difficulty, could be supervising a team or individual contributor or be an entry-level professional.

Example: Production engineer/production planning manager, key account manager systems analyst, business process team leader

Clerical/Admin/Tech

Administrative and support level staff.

Example: Administrative employee—sales trainee, merchandiser, business process associate—junior

Manual Workforce

Employees in positions such as skilled-production worker, unskilled-production worker, and warehouse handler.

Example: Assembler, loaders etc.



Data Collection Terms The following are brief definitions of some of the concepts that are used within the data collection materials.

Mandatory Salary Increase Budget

This is an increase that is mandated by either a government or by a union. It could apply to the entire company or to different groups in the organisation.

Merit Salary Increase Budget

The amount of any nonguaranteed, individual performance-based increases, including merit lump sums. The budget percentage is calculated by dividing the sum of increases granted/anticipated in the year, divided by the total salaries of all eligible employees, whether or not they received a merit increase.

Note: For India the numbers represent a percent of total fixed pay.

General Salary Increase Budget

Any increases given over and above the merit salary and mandatory increase. The budget percentage is calculated by dividing the sum of increases granted/anticipated in the year, divided by the total salaries of all eligible employees, whether or not they received a general increase. General increase includes market correction, special adjustment and promotional budgets.


Total Salary Increase Budget

The total amount of all increases combined (that is, merit increases plus general increases plus mandatory salary increases).


Special Adjustment and/or Miscellaneous Budget

The amount of any salary adjustment granted to an employee for a special, or unique, situation that is not typically covered by a merit increase. This would include market, equity, or “hot skills” adjustments. The budget percentage is calculated by dividing the sum of increases granted/anticipated in the year, divided by the total salaries of all eligible employees, whether or not they received a special adjustment and/or miscellaneous increase.


Promotional Budget

The amount of any promotional increase granted to an employee for receiving a promotion. The budget percentage is calculated by dividing the sum of increases granted/anticipated in the year, divided by the total salaries of all eligible employees, whether or not they received a promotional increase.




Salary Structure Movement

This is an increase that is applied to the salary grades and bands to reflect movements in the market. In other words, this represents an increase to the salary structure and not an individual or employee group increase.


Participant List

Manufacturing Services

A. O. Smith Corporation A.T. Kearney, Inc. AB Agri China AccentureAbbVie ACI WorldWideACCO Brands Corporation Adobe SystemsADISSEO AECOMAl built Consulting (Shanghai) Co., Ltd. AFD (Agence Française de Développement)Aleris Allianz China LifeAllergan Singapore Pte Ltd ALS LimitedALLNEX American ExpressALTANA AG American Society for QualityAmazon ANZ Banking Group LimitedAmerican Axle & Manufacturing (AAM) AricentAmway (China) Co., Ltd Artesyn Embedded TechnologiesAnalogic Corporation ASM Technology Hong Kong Ltd.Archer Daniels Midland Company AT&TAREVA Automatic Data ProcessingAshcroft Instruments (Suzhou) Co., Ltd. Axis BankAssociated British Foods plc Bain & CompanyAvery Dennison Corporation Bank Julius Baer & Co. Ltd.B. Braun Melsungen AG Bechtel Global Corporation Baker Hughes Inc BMC SoftwareBall Corporation Booking.comBarnes Group Inc. Brambles LimitedBaxter Pvt. Ltd. Branded Lifestyle Trading (Asia) LimitedBayer Aktiengesellschaft British Standards InstitutionBHP Billiton Brookfield Global Reloctaion ServicesBlue Focus Communication Group CapgeminiBoehringer Ingelheim Capgemini Business Service IndiaBombardier Aerospace Capgemini India Pvt. Ltd. (FSSBU)BorgWarner Inc. Capillary Technologies India Private LimitedBP China CapitaLand LimitedBriggs & Stratton Carl Zeiss AGBrooks Sports Inc_Global Carlson Rezidor Hotel GroupBrunswick Corporation Cartus CorporationCabot Microelectronics Corporation Caterpillar Financial Services CorporationCallaway Golf Company CEGIDCapsugel, Inc. CH2M HillCarestream Health Chicago Bridge & IronCargill Investments (China) Ltd. Cigna CorporationCATL Citrix SystemsCelanese (China) Holding Co., Ltd City Super LtdCelestica Inc. CME GroupCharter Manufacturing Columbia Sportswear CompanyChemtura Corporation Compass Group PLCChina International Marine Containers (Group) (Stock) Co., Ltd. Convergys CorporationChina Resources Sanjiu Pharmaceutical Co., Ltd CoriantCliffs Natural Resources Corning IncorporatedCLP Holdings Limited Costa CoffeeCNHI Costa Cruises Shipping Service (Shanghai) Co., Ltd.Coats Group plc Cover-More GroupCoca-Cola Bottling Investment Group China Dachser SECochlear Ltd Danaher CorporationCommScope Asia (Suzhou) Technologies Co., Ltd. Dassault SystemesConAgra Foods Dealertrack Technologies, Inc.Connie Nanjing Electric Co., Ltd. Dell IncConocoPhillips Dentsu Aefis NetworkContinental AG Deutsche Telekom


Participant List


Cooper Standard Discover Financial ServicesCooperVision, Inc. Discovery CommunicationsCovestro Deutschland AG Double A International Network Co., Ltd.Cummins Inc. Drew Marine USA Inc.Curtiss Wright Dun & Bradstreet, Inc.Cymer, LLC E2V Asia Pacific LimitedCytec Solvay Group Electrocomponents PlcDah Chong Hong Holdings Limited EMC Information Technology Research & Development (Shanghai) Co., LtdDaimler AG EPCOS (Shanghai) LtdDanfoss Ernst & Young_ChinaDeere & Company Excelitas TechnologiesDelphi FedEx ExpressDelphi Packard Electric Systems Co., Ltd. (Chengdu) Branch Fluor (China) Engineering & Construction Co. LtdDelphi Packard Electric Systems Co., Ltd. Chongqing Branch FRHI Hotels & ResortsDentsply China Gap Inc.Doble Engineering Company Gartner, IncDr. Reddy's Laboratories Ltd GEFCO SADuPont GemaltoDuracell (China) Co., Ltd. GenworthEcolab (China) Investment Co., Ltd GLOBALFOUNDRIES Singapore Pte LtdEdwards Lifesciences Guoco Group LimitedElo Touch Solutions Hang Lung Properties LimitedEmerson | LeroySomer Electro-Technique (Fuzhou) Co., Ltd Harman International (Harman Connected Services Division)EnerSys HERE International B.V.Faurecia Hewlett Packard EnterpriseFederal-Mogul Corporation HGSTFesto (China) Co., Ltd. HiltonFirst Solar HILTON WORLDWIDEFiskars Corporation HP Inc.Flextronics Hyatt Hotels CorporationFlowserve Corporation IBMFresenius Medical Care Products (Shanghai) Co., Ltd INDRAFuyao Glass Industry Group Co., Ltd Infineon Technologies (Wuxi) Co., Ltd.Gardner Denver, Inc Infosys LimitedGeneral Electric INGENICO GROUPGeneral Mills, Inc. Ingram MicroGerflor Floorings China Co.,Ltd Institute of International EducationGestamp Automotive Products (Chongqing) Co., Ltd. Intelsat, S.AGildan InterContinental Hotels Group (Shanghai) Ltd.Givaudan Management Consulting (Shanghai) Ltd International Dairy Queen, Inc.Glen Raven Textile Technology (Suzhou) Co., Ltd International SOSGrace Trading (Shanghai) Ltd. Interpublic Group of Companies, Inc.Graco Inc. InvescoH.B. Fuller Company Ivanhoé CambridgeHabasit AG Jardine OneSolutionHalyard Health Jones Lang LaSalleHarbour Group Sourcing LLC Shanghai Representative Office KantarHasbro, Inc. KDDI CorporationHendrickson Kronos IncorporatedHenkel L Brands, Inc.Henniges Automotive LACOSTEHenry Schein Inc. LairdHERMES INTERNATIONAL Latham & Watkins LLPHoneywell International Inc. Laureate Education, Inc.Hubbell Incorporated LEVI STRAUSS & CO.Husky Energy Inc. Liberty Insurance Company LimitedIBA SA lululemon athleticaICF International ManulifeIDEXX Mapletree Investments Pte LtdIMMI Marks & Spencer Group plc


Participant List


Ingersoll Rand, PLC MasterCard WorldwideInternational Automotive Components (IAC) Group McDonald'sInternational Paper MetLife Inc.inVentiv Health METRO AGJaguar Land Rover Microsoft CorporationJohn Bean Technologies Singapore Pte Ltd Mitel NetworksJohn Wiley & Sons Inc. Moody'sJohnson Controls (China) Investment Co., Ltd. Mphasis LtdJohnson Matthey Plc Munich ReKelvion Holding GmbH MUREX SASKen Di (Shanghai) Co., Ltd. MWH GlobalKeurig Green Mountain, Inc. Nagra Kudelski GroupKey Safety Systems, Inc. National InstrumentsKeystone Foods NavigantKnorr-Bremse Asia Pacific (Holding) Ltd. NBA ChinaKohler China Investment Co., Ltd Neptune Orient LinesKONE Oyj NOKIAKrones AG Northern TrustL.L.Bean, Inc. ON SemiconductorLa Prairie (Shanghai) Co., Ltd Orange Business ServicesLee Kum Kee International Holdings Limited PayPalLennox International Inc. Principal Financial GroupLittelfuse, Inc PrologisLonza (China) Investments Co.Ltd PVH CorporationLORD Corporation Qualcomm, Inc.LyondellBasell QuintilesMagneti Marelli (China) Co. Ltd Ralph Lauren CorporationMary Kay Asia Services Limited ReSource Pro (Qingdao) Data Technology, LLCMattel Asia Pacific Sourcing Limited Samsonite Asia LimitedMcKesson Shangri-La International Hotel Management LtdMead Johnson Nutritionals (China) Ltd. Siam Commercial Bank Public Company LimitedMerck KGaA Singapore Telecommunications LtdMerit Ji Boluo Management Services (Shanghai) Co., Ltd Stanford UniversityMerit Medical (Beiing) Co.,Ltd Starwood Asia Pacific Hotels & ResortsMilton Roy Industrial (Shanghai)Co. Ltd, STATS ChipPAC Pte LtdMoen Incorporated STMICROELECTRONICSMolex Swire HotelsMondelez China Swiss ReMonsanto TargetMoog Inc. Tata CommunicationsMosaic Co TD Bank GroupMTS Systems Technicolor (China) Technology Co., Ltd. Mylan N.V. Teradata CorporationNBTY The Hongkong and Shanghai Hotels, LimitedNewell Brands TietoNewMarket Corporation TMF ManagementNike, Inc. UBM plcNivea (Shanghai) Co. Ltd UBS AGNordson Corporation UniCredit Bank AGNovartis Unipart LogisticsNovo Nordisk (China) Pharmaceuticals Co., Ltd. United Engineers LimitedNovus International Trading (Shanghai) Co., Ltd. UnitedHealth GroupOshkosh Corporation Veeam SoftwarePanasonic Corporation Vopak China Management Co., Ltd.Panduit Vopak Shanghai Logistics Co., Ltd.PAREXEL International Warner Bros. Entertainment Inc.Pentair Plc. WeEn Semiconductors Co., Ltd. Pentland Asia Whitbread Group PLCPepsiCo, Inc. Wilhemsen Ships ServicePerkin Elmer Inc. Wipro Ltd


Participant List


PerkinElmer Enterprise Management (Shanghai) Co., Ltd. WNS Global Services (P) Ltd.Perrigo Company plc Wolters KluwerPfizer Investment Co., Ltd Zebra TechnologiesPolaris Industries Inc. Shanghai Oriental CJ Business LimitedPolyOne Jumeirah Himalayas HotelPPG Industries International, Inc Laimei Lattice Semiconductor Co., Ltd.PSA GROUPE Shanghai Blue Cloud Network Technology Co., Ltd. Beijing BranchQIAGEN Hong Life Insurance Co., Ltd.Regal Beloit Corporation South Korea Life Insurance Co., Ltd.Reichhold LLC 2 Sun Life Everbright Life Insurance Company LimitedReynolds Group Beijing Low Carbon Clean Energy Research InstituteRichemont International SA TSMC (China) Co., Ltd.Rio Tinto Sierra Wireless Communication Technology (Shenzhen) Co., Ltd.Robertshaw Controls Company Taiyo Yuden Co., Ltd.Rockwell Automation AAXIS Software (Chengdu) Co., LtdRockwell Collins (Shanghai) Avionics Trading Company Ltd High Energy Materials Co., Ltd. Changzhou BoRodenstock Stewart Walker Software Technology (Beijing) Co., Ltd.Rolls-Royce plc Wuxi Union Network Technology Co., LtdSABIC Tylenol wind-Thailand (Suzhou) Co., Ltd. insulation materialsSAFRAN Huafa Sheraton HotelSchaeffler Technologies AG & Co. KG FedEx International Freight Services (Shanghai) Co., LtdSCHMOLZ BICKENBACH AG Suzhou New Development Investment Co., Ltd. Suzhou Marriott HoteSchneider Electric GSC China Aoi and Precision Electronics (Shanghai) Co., Ltd.Shanghai ICICLE Fashion Group Co.,Ltd CMA CGM (China) Co., Ltd.Shanghai McCormick Foods Co., Ltd. Evergreen Co., Ltd. Beijing Rui City Seasons HoteShellShireSiegfried AGSiemens AGSinger (Shanghai) Sewing Machine Co., LtdSirona Dental Systems Trading (Shanghai) Co., LtdSmithers-OasisSOCOMECSodexo Solvay China Co., LtdSPX Cooling Technology Ltd., Co.SPX FLOW, IncSteelcase Inc.Stewart Walker Software Technology (Beijing) Co., Ltd.Sulzer ShanghaiSumitomo Pharmaceuticals (Suzhou) Co., Ltd.Suzhou Sullair Gas Equipment Co., Ltd.Swire Beverages LimitedTakeda (China) Holdings Co., Ltd.TANDUS FLOORING (SUZHOU) CO., LTDTate & LyleTE ConnectivityTeck ResourcesTeleflex IncTerex CorporationTESSENDERLO GROUPTextron Inc.The Coca-Cola CompanyThe Hershey CompanyTHE LION GROUPThe Manitowoc Company, Inc.The Toro CompanyThe Valspar CorporationThomson Reutersthyssenkrupp Elevator (China)


Participant List


TOTALTower InternationalTRW Asia Pacific Co., Ltd.TT Electronics PlcUCBUnileverUPM (China) Co., Ltd.VeritivVETOQUINOLVibracoustic GmbHVilleroy & Boch AGVolkswagen Automatic Transmission (Dalian) Co., Ltd.WatersWerfen Medical Devices Trading (Beijing) Co. LtdWMF GroupZF TRW Automotive


Aon Hewitt Talent, Rewards & Performance

Number of Participants per Country

Country ParticipantsAngola 21Antigua 10Argentina 83Aruba 14Australia 312Austria 151Azerbaijan 27Bahamas 14Bahrain 46Barbados 14Belgium 203Belize 9Bermuda 14Bolivia 25Botswana 10Brazil 245Bulgaria 71Canada 347Cayman Islands 9Chile 119China 457Colombia 131Costa Rica 58Croatia 59Cyprus 26Czech Republic 175Denmark 151Dominican Republic 31Ecuador 47Egypt 73El Salvador 28Estonia 46Fiji 16Finland 130France 306Georgia 28Germany 306Ghana 27Gibraltar 12Greece 96Guam 14

Country ParticipantsGuatemala 36Guernsey 12Guyana 9Haiti 13Honduras 27Hong Kong 344Hungary 138India 760Indonesia 164Ireland 153Isle of Man 15Israel 94Italy 238Jamaica 18Japan 284Jordan 33Kazakhstan 60Kenya 59Korea 277Kuwait 35Latvia 49Lebanon 47Lesotho 11Lithuania 47Luxembourg 84Macau 39Malawi 13Malaysia 238Malta 22Mexico 260Morocco 64Mozambique 20Netherlands 249Netherlands Antilles 13New Zealand 147Nicaragua 18Norway 144Oman 37Panama 51Papua New Guinea 19Peru 80


Aon Hewitt Talent, Rewards & Performance

Country ParticipantsPhilippines 167Poland 220Portugal 142Puerto Rico 107Qatar 58Romania 133Russia 199Saipan 14Saudi Arabia 92Serbia 62Singapore 330Slovakia 108Slovenia 54South Africa 168Spain 252Sri Lanka 53Suriname 10Swaziland 13Sweden 181Switzerland 196Taiwan 198Tanzania 17Thailand 204Trinidad and Tobago 21Tunisia 36Turkey 165Uganda 17Ukraine 81United Arab Emirates 185United Kingdom 369United States 1074Uruguay 42Vanuatu 13Venezuela 50Vietnam 124Yemen 16Zambia 21Zimbabwe 12Grand Total 13,586



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China Salary Planning Report - Aontcmchina.aon.com/TCM/China_Salary_Planning_Report_2016-17.pdf · China Salary Planning Report ... of the 29th annual Global Salary Increase Survey