The Comptryx Report
Comptryx provides groundbreaking "on-demand" pay and workforce analytics data for technology focused companies.Learn more
Our database of over 3 million employee records allows you to conduct pay analysis for all jobs across the globe from Base Salary through Total Cost to Company.Learn more
Compare the size, shape, mix and demographics of your organization to the competition in areas such as attrition, experience, promotions, gender, and pay of top performers.Learn more
Workforce Metrics That Get Executive Attention
Payroll is often the highest component of OPEX. Compare your workforce cost to market using key metrics like "payroll as % revenue", "average global pay", functional allocation and geographic deployment.Learn more
Labor Cost Modeling
Design virtual organizations and get an instant calculation of payroll costs in potential locations around the world.Learn more
The Value of Workforce Analytics
Traditional salary surveys help determine pay competitiveness, but offer no insight regarding total payroll costs – the largest expense in most companies. How your people costs compare to market is actually driven by the structure and composition of the organization – not pay levels. We think cost is what Execs are concerned about. Benchmarking with Workforce Analytics provides you with that insight.
- Analog Devices
- AT&T Intl
- BMC Software
- Dassault Systemes
- Hewlett Packard Inc.
- Hitachi Vantara
- Nokia Networks
- Palo Alto Networks
- Western Digital
- AEROSPACE & DEFENSE:
- BAE Systems
- DXC Technology
- Gen Dynamics
- Lockheed Martin
- Northrop Grumman
What experts say about Workforce Metrics
Ezra Schneier, Corp Development Officer, HRsoft - Dec 3, 2017
The Compensation Manager role is red hot.
To be sure, the compensation discipline has always been an important one. But it is now evolving - even going through a makeover. The new identity taking shape for Compensation Managers is more strategic, data-driven, compliance-minded, technology-based and a contributor to a strong bottom line.
More than ever before, senior executives are relying on Compensation Managers to develop, implement and execute compensation plans to drive business results and get all employees rowing in the same direction.
Without question, the stakes have never been higher for compensation management. This article looks at eight major themes Compensation Managers are making their priority for 2018.
These are secular issues that are taking hold and will be with us for the next five to ten years. In fact, many business leaders feel that compensation as a practice is one of the most critical human resource and finance items to be addressed in the next few years. And it is the one area that can be used by employers to significantly improve business results. Compensation Managers are at the controls, flying the plane.
What is also interesting, is this cuts across almost all business sectors and sizes. Small, mid-sized and large enterprises; non-profits, for-profits, public and private companies all have employees - and they all receive compensation. The impact of having the right compensation plans and processes in place can be meaningful for a wide swath of our economy.
Here is a quick look at the 8 Big Themes on the minds of executives and Compensation Managers for 2018:
1. More strategic thinking about compensation to attract, retain, reward and engage employees. Senior Executives want to know how compensation plans are constructed to achieve results in the form of recruiting and motivating great employees and achieving measurable goals.
2. Variable Pay. Pay and awards linked to measurements and achievements that matter are on the rise. Variable Pay is being used for more employees throughout the organization. The Variable Pay plans are being tailored to be relevant for specific job functions and business units. The key factor is to reward people based on what they can control to produce outsized results.
3. Frequency of pay adjustments is increasing. In the past, it was acceptable for an annual review of salaries and rewards. Today, and in the near future, this frequency will be quarterly or monthly. Employees who achieve results today, don’t want to wait six or nine months to be rewarded for their work. They want it now.
4. Controls and compliance relating to pay are emerging issues for employers. Compliance with pay equity and gender equity regulations are serious matters and getting attention at the highest levels of every organization. Having fair pay practices that are consistently carried out is essential. What’s more, compliance with data privacy issues and how they relate to sensitive compensation information are also top of mind.
5. Employers are looking to automate compensation processes and get rid of spreadsheets. Off-line processes to plan and manage compensation are inefficient, prone to error and not suitable for employers today. As a result, technology is being deployed to bring the compensation planning and management process online. Cloud-based, centralized and secure software is replacing manual processes. Noted author Thomas H. Davenport has written about how leading employers have “transformed technology from a supporting tool into a strategic weapon.” That is certainly the case with compensation management and planning.
6. Data analytics relating to compensation can be a competitive advantage for employers. At a basic level, managers use data to understand the compensation spend. This is done by routinely collecting and analyzing data against expected metrics. But the advanced view – and the expectation in today’s environment – is to use compensation data to help with decision-making about how to be more profitable and how to enhance operations. Managers use data to look at ways to generate meaningful insight about what will happen in the future and to prepare for those developments. Data crunching is not only for retrospectively measuring and correlating activities. Now data is to be used to identify trends and create solutions. Plus, Compensation Managers must be prepared to act on that data to optimize results. Make sure the distribution of compensation is appropriate, budgets are being maintained and problems are identified. For example, using data, the Compensation Manager can determine how salary levels relate to (and enhance) individual performance and relevant business results.
7. Openness. There is a desire for pay practices to be more transparent. Companies are lifting the veil on how compensation levels are determined. In doing this, the objective is for all employees to have a clear understanding of why they are being paid at their current level and what they can do to earn more. And have an understanding of how compensation supports and is aligned with organizational goals. It is becoming the normal practice for managers and employees to fully understand how compensation decisions are made. To achieve this, metrics and calculations used to determine salary adjustments and bonus awards are clearly communicated throughout the organization. In addition, key managers should have a say in the decision making process about compensation and rewards for associates on her team. The Compensation Manager works to ensure proper communication is carried out.
8. Globalization. Compensation Managers are expected to be responsible for the administration of pay plans in multiple currencies and to be compliant with local practices, regulatory frameworks and data privacy requirements.
Taken together, these big themes suggest that the Compensation Manager’s role is evolving in a meaningful way.
Looking ahead, the role will continue to become more prominent - and in many ways more challenging. After all, compensation is complicated.
Just as the Compensation Manager’s role is changing, these managers are profoundly transforming organizations. Thankfully, smart executives recognize their contributions.
The Economist, Print Edition, February 8, 2018
Americans, and friends of America, often reassure themselves about its relative decline in the following way. Even if the roads, airports and schools continue to slide, it will retain its lead in the most sophisticated fields for decades. They include defence, elite universities, and, in the business world, technology. Uncle Sam may have ceded the top spot to China in exports in 2007, and manufacturing in 2011, and be on track to lose its lead in absolute GDP by about 2030. But Silicon Valley, the argument goes, is still where the best ideas, smartest money and hungriest entrepreneurs combine with a bang nowhere else can match.
Or is it? American attitudes towards Chinese tech have passed through several stages of denial in the past 20 years. First it was an irrelevance, then Chinese firms were sometimes seen as copycats or as industrial spies, and more recently China has been viewed as a tech Galapagos, where unique species grow that would never make it beyond its shores. Now a fourth stage has begun, marked by fear that China is reaching parity. American tech’s age of “imperial arrogance” is ending, says one Silicon Valley figure.
China’s tech leaders love visiting California, and invest there, but are no longer awed by it. By market value the Middle Kingdom’s giants, Alibaba and Tencent, are in the same league as Alphabet and Facebook. New stars may float their shares in 2018-19, including Didi Chuxing (taxi rides), Ant Financial (payments) and Lufax (wealth management). China’s e-commerce sales are double America’s and the Chinese send 11 times more money by mobile phones than Americans, who still scribble cheques.
The venture-capital (VC) industry is booming. American visitors return from Beijing, Hangzhou and Shenzhen blown away by the entrepreneurial work ethic. Last year the government decreed that China would lead globally in artificial intelligence (AI) by 2030. The plan covers a startlingly vast range of activities, including developing smart cities and autonomous cars and setting global tech standards. Like Japanese industry in the 1960s, private Chinese firms take this “administrative guidance” seriously.
Being a global tech hegemon has been lucrative for America. Tech firms support 7m jobs at home that pay twice the average wage. Other industries benefit by using technology more actively and becoming more productive: American non-tech firms are 50% more “digitised” than European ones, says McKinsey, a consulting firm. America sets many standards, for example on the design of USB ports, or rules for content online, that the world follows. And the $180bn of foreign profits that American tech firms mint annually is a boon several times greater than the benefit of having the world’s reserve currency.
A loss of these spoils would be costly and demoralising. Is it likely? Schumpeter has compiled ten measures of tech supremacy. The approach owes much to Kai-Fu Lee of Sinovation Ventures, a Chinese VC firm. It uses figures from AllianceBernstein, Bloomberg, CB Insights, Goldman Sachs and McKinsey and includes 3,000 listed, global tech firms, 226 “unicorns”, or unlisted firms worth over $1bn, plus Huawei, a Chinese hardware giant.
The overall conclusion is that China is still behind. Using the median of the yardsticks, its tech industry is 42% as powerful as America’s. But it is catching up fast. In 2012 the figure was just 15%.
Start with Chinese tech’s weak spots. Its total market value is only 32% of the figure for America’s industry. While there are two huge companies and lots of small ones, there are relatively few firms worth between $50bn and $200bn. China is puny in semiconductors and business-facing software. Tech products do not yet permeate the industrial economy: Chinese non-tech firms are relatively primitive and only 26% as digitised as American ones.
As for investment, Chinese tech’s absolute budget is only 30% as big as that of American tech. And it is still small abroad, with foreign sales of 18% of the total that American firms make. Apple rakes in more abroad in three days than Tencent does in a year. The gap gets much smaller, however, when you look at the most dynamic parts of the tech industry. In the area of e-commerce and the internet, Chinese firms are collectively 53% as big as America’s, measured by market value. China’s unicorns, a proxy for the next generation of giants, are in total worth 69% of America’s, and its level of VC activity is 85% as big as America’s based on money spent since 2016. There is now a rich ecosystem of VC firms buttressed by Alibaba and Tencent, who seed roughly a quarter of VC deals, and by government-backed funds-of-funds.
China is improving at “breakthrough” innovations. Take AI. China’s population of AI experts is only 6% of the size of America’s (if you include anyone of Chinese ethnicity this rises to 16%) and the best minds still work in the United States, for example at Alphabet. But now the number of cited AI papers by Chinese scientists is already at 89% of the American level. China has piles of data and notable companies in AI specialisms, for example Face++ in facial recognition and iFlytek in speech.
At the present pace China’s tech industry will be at parity with America’s in 10-15 years. This will boost the country’s productivity and create tech jobs. But the real prize is making far more profits overseas and setting global standards. Here the state’s active role may make some countries nervous about relying on Chinese tech firms. One scenario is that national-security worries mean China’s and America’s tech markets end up being largely closed to each other, leaving everywhere else as a fiercely contested space. This is how the telecoms-equipment industry works, with Huawei imperious around the world but stymied in America.
For Silicon Valley, it is time to get paranoid. Viewed from China, many of its big firms have become comfy monopolists. In the old days all American tech executives had to do to see the world’s cutting edge was to walk out the door. Now they must fly to China, too. Let’s hope the airports still work.
How does Chinese tech stack up against American tech? Silicon Valley may not hold onto its global superiority for much longer
David Green's recent post "What constitues best practices in People Analytics?" is a very interesting read. Some of his suggested "best practices" of these efforts include items like:
1. Successful people analytics teams focus on projects that actually matter to the business.
2. They have a CHRO who is fully involved.
3. They have an inspirational leader.
4. They possess a balanced set of skills and capabilities required to do the work.
5. They leverage resources from outside HR (and the Company, if needs be).
6. They have a clearly defined strategy and vision.
7. They get the basics right - your data doesn't have to be perfect, but does need to be credible.
To read the complete article, go to: https://www.linkedin.com/pulse/what-constitutes-best-practice-people-analytics-david-green
Anand K. Chandaranda, Workforce Analytics Consultant, posted a great opinion piece on a recent LinkedIn blog. He asks: "So, how does HR gain its voice at the table? Quite obviously, by being able to say something that people with decision-making power can't ignore, forces action, and makes them want to hear what you have to say next. When it comes to telling a story, particularly a story based on data, a picture may say a thousand words, but... those words have to have a clear and concise meaning, enlighten the audience, and ultimately lead to some sort of action or improvement." He further writes "So, if you happen to be sitting at HR's seat at the table, our industry's seat, for the bneefit of all of us . . . make sure your voice is heard and makes a difference. Continue to bring fresh ideas and the latest research on talent management with yoiu, but make sure you also deliver data-driven insights and provide strategic driven recommendations specific to your industry and your organization's current situation (i.e. not one size-fits-all "best practices"). You want your voice to be heard? Then I suggest keeping this quote from Jim Barksdale (former CEO of Netscape) in mind: "If we have data, let's look at data. If all we have is opinions, let's go with mine". Finally, he adds "Make sure your recommendations generate real value and have measurable impacts (tangible or intangible with quantifiable ROI calculations preferred) on your workforce, your organization, and the KPIs that matter most to your company (i.e., not just HR metrics): metrics like revenue, profits, market share, earnings per share, customer satisfaction/retention, etc."
To read the full post go to: https://www.linkedin.com/pulse/why-bother-seat-table-you-have-voice-anand-k-chandarana.
What Our Customers Say About Comptryx
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