Embed Size (px)
Citation preview
10% 10%
Compensation & HR Management Survey 2018-19
Equity-Based Compensation Team
Positive prospectsThe success of growth strategies hinges on employer attractiveness – can companies attract and retain the right talent and capacity?
Most respondents expect their overall business situation to remain stable or improve in the next six months.
For the majority polled, steady leadership will steer the company to success.
44%same
46%better
Nearly 50% of companies surveyed are keen to enter new markets or launch new products – a clear attempt to increase market share.
Salary trendsMost respondents take a cautious approach to salary increases. At organizations considering them at all, mainly middle management and lower ranked staff will benefit.
Forecast salary increases (FSI)
None of the respondents predicted salary increases of more than 3%.
40%
27%
13%
1% FSI 2% FSI 1.5% FSI 0.5% FSI 3% FSI
60%40%
Salary increases will mostly benefit middle management or lower ranked staff, but there’s also a clear intention to update pay for key employees.
Executive Committee or other executivesMiddle management or lower ranked staff
Instead, our survey shows that businesses are focusing on reviewing and benchmarking compensation structures. Improving the tax efficiency of existing compensation structures stands out as a way to benefit employees without increasing costs.
Top HR and compensation priorities
Market analysis and external compensation competitiveness review (benchmarking)
Design of the value proposition for the employee
Design of compensation structures/bands and internal equity analysis
More salary, same costs?Many companies are unsure whether compensation components are tax-optimized from their employees’ perspective. Ensuring they are could release extra benefit for employees without affecting salary costs – a major advantage in the race for talent.
of respondents do not believe the overall compensation is structured tax-efficiently.
of employers do not have full transparency and legal certainty regarding the tax aspects of their equity-based compensation (no tax ruling in place).
of companies polled are unaware that business expenses can be refunded via tax-free lump sum allowances.
33%30%
25%
Directing disruptionDigital transformation is driving many developments in HR, especially the integration of new technologies into the organization, better use of Data & Analytics and implementation of more digital ways of working.
are focusing on developing a more digital culture, investing in employees’ digital skills.37%
have considered using cryptocurrencies to compensate their employees.
Marketing and sales
Production, manufacturing and operations
Human resources
Research and development
Finance and tax
General management
Legal
HR among top 3 departments most impacted by digitalization
Measuring performanceWith digital performance measurement tools well established in HR departments, it’s surprising that the vast majority of participants are unhappy with their current system. In terms of performance tracking, there seems to be consensus on what financial performance indicators to use. Additionally, the trend towards performance-related pay using equity-based compensation continues.
of participants are only moderately satisified or actively dissatisified with their performance management system.
62%
ContactsAdrian Tuescher Partner, LegalHead of Equity-based Compensation Services+41 58 249 28 [email protected]
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received, or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The scope of any potential collaboration with audit clients is defined by regulatory requirements governing auditor independence. If you would like to know more about how KPMG AG processes personal data, please read our Privacy Policy, which you can find on our homepage at www.kpmg.ch.
© 2019 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.
of businesses see profit and revenue as the main achievement indicators.
42%
of participants use equity-based rewards to link performance with compensation.
71%
5%
Rinaldo Neff Senior Manager, Tax Equity-based Compensation Services+41 58 249 49 [email protected]
