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Page 1: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

I N C E N T I V E S A R O U N D T H E W O R L D2 0 1 9

S A M P L E

SAMPLE

TABL

E O

F C

ON

TEN

TS

1 TALENT ALL ACCESSreg

4 INTRODUCTION5 Report Structure

6 Reading this Report

9 SUMMARY OF KEY FINDINGS

11 How Do Incentives Vary By Career Level

18 How Do Incentives Vary By Job Family

360 ABOUT THIS REPORT361 Methodology

368 Glossary

378 ABOUT MERCER

24 AMERICAS

25 REGIONAL SUMMARY

28 CAREER LEVEL

28 Executive

30 Manager

32 Team Leader

34 Senior Professional

36 Experienced Professional

38 Para-professional

40 JOB FAMILY

40 Administration

43 Communications

46 Customer Service

49 Engineering

52 Finance

55 General Management

58 Human Resources

61 Information Technology

64 Legal

67 Production

70 Project Management

73 Quality Management

76 Sales

79 Supply Chain

82 ASIA PACIFIC

83 REGIONAL SUMMARY

86 CAREER LEVEL

86 Executive

90 Manager

94 Team Leader

98 Senior Professional

102 Experienced Professional

106 Para-professional

110 JOB FAMILY

110 Administration

116 Communications

122 Customer Service

128 Engineering

134 Finance

140 General Management

146 Human Resources

152 Information Technology

158 Legal

164 Production

170 Project Management

176 Quality Management

182 Sales

188 Supply Chain

194 EUROPE MIDDLE EAST AND AFRICA

195 REGIONAL SUMMARY

198 CAREER LEVEL

198 Executive

204 Manager

210 Team Leader

216 Senior Professional

222 Experienced Professional

228 Para-professional

234 JOB FAMILY

234 Administration

243 Communications

252 Customer Service

261 Engineering

270 Finance

279 General Management

288 Human Resources

297 Information Technology

306 Legal

315 Production

324 Project Management

333 Quality Management

342 Sales

351 Supply Chain

SAMPLE

GLO

BAL

PUBL

ICAT

ION

S

Stay ahead of todayrsquos tight deadlines and competitive race for labor with these resources Covering local benefits global compensation practices and emerging HR policy trends this portfolio contains all of the actionable data insights and guidance you need to steer your organization to success Select a title to learn more about each of our industry-leading reports or visit imercercomglobal for more information

G E T E V E R Y T H I N G I N O N E P L A C ESubscribe to the Talent All Accessreg Portal for exclusive access to online tools and all of our publications Schedule a demo with a Mercer representative to discussa subscription

Exclusive to Talent All Accessreg subscribers Not included in Talent All Accessreg

H E A LT H amp B E N E F I T S

Car Benefit Policies Around the World

Global Parental Leave Global Parental Leave Industry Scorecard

LGBT Benefits Around the World

Worldwide Benefit amp Employment Guidelines

Vacation and Other Leave Policies Around the World

Vacation and Other Leave Industry Scorecard

Car Benefit Policies mdash Global Industry Findings

Severance Pay Policies Around the World

Severance Pay Policies Industry Scorecard

W O R K F O R C E amp C A R E E R S

Global Compensation Planning

Global Compensation Planning 20 Year Look Back

Global Pay Summary

Salary Movement Snapshot

Incentives Around the World

Workforce Turnover Around the World

Short-term Incentive Trends mdash A 10 Year Review

New Graduate Starting Salaries

H A N D B O O K S amp G U I D E S

Compensation Handbook

Global Mobility Handbook

HR Guide to Doing Business

HR Management Terms

HR Atlas

ORDER ONLINE

Short-Term Incentives Around the World

SAMPLE

G R A D I E N T PAY While trend lines indicate that more and more employees are eligible for STIs there is still a hierarchy to these compensation schemes Notably employers are more likely to offer STIs to individuals at senior career levels (such as professional or management positions) than other employees Moreover individuals in some career tracks mdash notably those with a direct impact on corporate or office performance mdash are more likely to be eligible for STIs than others In practice this means that sales and production employees are more likely to derive a high proportion of their total compensation from STIs than those serving in administrative or customer service roles

W H AT rsquo S I N A S T I There are many forms of short-term incentives but generally they are any payment over a 12-month period that is associated with individual team andor corporate performance Popular types of STI include bonuses individual incentive plans and teamunit performance incentives They are frequently linked to profitability or revenue growth and achievement of overall company goals determines the size of the company bonus pool STIs are often capped at a fixed amount or percentage of annual base salary (ABS) By capping these payments HR and business managers can prevent runaway expenses while achieving higher performance

I N T R O D U C T I O N

Multinational corporations small firms and organizations around the world all face the same problem motivating their employees to contribute to the grouprsquos success Although base salary serves as compensation for an individualrsquos time and efforts many employees may regard this transaction as a given and neglect to make their employerrsquos objectives their own In an effort to more closely align individual goals with the organizationrsquos many employers offer short-term incentives (STIs) that reward employees for performance that is above or beyond their expectations Although these incentive programs once were reserved for sales personnel and other employees that have a high impact on company success STIs increasingly are available to all types of employees

Short-term incentives also are responsive to market conditions For instance companies in highly competitive markets are more likely offer generous STIs in order to drive employee and company performance while those in stable or saturated markets may be less concerned with aggressive growth strategies

C O N S I D E R AT I O N SHR and business managers should consider the following questions when creating a short-term incentive program

What types of employees would benefit most from STIs

Should I restrict the total value of STIs available to a single employee in one year

How should I discern between high-performing and low-performing employees when distributing STIs

What factors should I use when determining the impact an individual has on company success

SAMPLE

R E P O R T S T R U C T U R EThe 2019 Incentives Around the World publication provides human resource (HR) and business managers with up-to-date information on short-term incentive figures and strategies This publication offers market-level data on the provision of short-term incentives for six distinct career levels across 16 job families as well as the target and actual payout for this type of compensation It also provides regional comparisons and three-year trends to help decision makers understand what the future may hold and anticipate market changes

The report collates data from 102 markets in 83 countries and offers a unique insight critical to any business looking to devise a sound and competitive compensation program

The report includes the following sections

S U M M A R Y O F K E Y F I N D I N G SThis section serves as an executive summary for those looking for Mercerrsquos insights and observations it provides high-level trends market comparisons and other analysis The following topics are included

Incentives by career level

Incentives by job family

R E G I O N A L R E S U LT SThis section includes a regional summary and market specific data for those HR professionals looking for more targeted data on an individual topic It provides market level data including the percentage of employees receiving STI and the actual and target STI as a percentage of base salary This section also offers the following insights for each market

Regional summary provides data by career level for short-term sales and long-term incentives

Each job family provides data by career level for short-term incentives

A B O U T T H I S R E P O R TThis section delineates the methods used in the report and lists key definitions

Methodology includes data sources used to compile this report and other details on calculations and assumptions

Glossary provides definitions for many of the terms used throughout this report as well as other HR related terms

SAMPLE

R E A D I N G T H I S R E P O R T

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V EThe first page of each region

section provides a quick reference summary table

SAMPLE DATA

Throughout the report data relating to the percentage of employees receiving a STI are colored purple ldquoActualrdquo data are orange and ldquoTargetrdquo data are blue

SAMPLE

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 2: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

TABL

E O

F C

ON

TEN

TS

1 TALENT ALL ACCESSreg

4 INTRODUCTION5 Report Structure

6 Reading this Report

9 SUMMARY OF KEY FINDINGS

11 How Do Incentives Vary By Career Level

18 How Do Incentives Vary By Job Family

360 ABOUT THIS REPORT361 Methodology

368 Glossary

378 ABOUT MERCER

24 AMERICAS

25 REGIONAL SUMMARY

28 CAREER LEVEL

28 Executive

30 Manager

32 Team Leader

34 Senior Professional

36 Experienced Professional

38 Para-professional

40 JOB FAMILY

40 Administration

43 Communications

46 Customer Service

49 Engineering

52 Finance

55 General Management

58 Human Resources

61 Information Technology

64 Legal

67 Production

70 Project Management

73 Quality Management

76 Sales

79 Supply Chain

82 ASIA PACIFIC

83 REGIONAL SUMMARY

86 CAREER LEVEL

86 Executive

90 Manager

94 Team Leader

98 Senior Professional

102 Experienced Professional

106 Para-professional

110 JOB FAMILY

110 Administration

116 Communications

122 Customer Service

128 Engineering

134 Finance

140 General Management

146 Human Resources

152 Information Technology

158 Legal

164 Production

170 Project Management

176 Quality Management

182 Sales

188 Supply Chain

194 EUROPE MIDDLE EAST AND AFRICA

195 REGIONAL SUMMARY

198 CAREER LEVEL

198 Executive

204 Manager

210 Team Leader

216 Senior Professional

222 Experienced Professional

228 Para-professional

234 JOB FAMILY

234 Administration

243 Communications

252 Customer Service

261 Engineering

270 Finance

279 General Management

288 Human Resources

297 Information Technology

306 Legal

315 Production

324 Project Management

333 Quality Management

342 Sales

351 Supply Chain

SAMPLE

GLO

BAL

PUBL

ICAT

ION

S

Stay ahead of todayrsquos tight deadlines and competitive race for labor with these resources Covering local benefits global compensation practices and emerging HR policy trends this portfolio contains all of the actionable data insights and guidance you need to steer your organization to success Select a title to learn more about each of our industry-leading reports or visit imercercomglobal for more information

G E T E V E R Y T H I N G I N O N E P L A C ESubscribe to the Talent All Accessreg Portal for exclusive access to online tools and all of our publications Schedule a demo with a Mercer representative to discussa subscription

Exclusive to Talent All Accessreg subscribers Not included in Talent All Accessreg

H E A LT H amp B E N E F I T S

Car Benefit Policies Around the World

Global Parental Leave Global Parental Leave Industry Scorecard

LGBT Benefits Around the World

Worldwide Benefit amp Employment Guidelines

Vacation and Other Leave Policies Around the World

Vacation and Other Leave Industry Scorecard

Car Benefit Policies mdash Global Industry Findings

Severance Pay Policies Around the World

Severance Pay Policies Industry Scorecard

W O R K F O R C E amp C A R E E R S

Global Compensation Planning

Global Compensation Planning 20 Year Look Back

Global Pay Summary

Salary Movement Snapshot

Incentives Around the World

Workforce Turnover Around the World

Short-term Incentive Trends mdash A 10 Year Review

New Graduate Starting Salaries

H A N D B O O K S amp G U I D E S

Compensation Handbook

Global Mobility Handbook

HR Guide to Doing Business

HR Management Terms

HR Atlas

ORDER ONLINE

Short-Term Incentives Around the World

SAMPLE

G R A D I E N T PAY While trend lines indicate that more and more employees are eligible for STIs there is still a hierarchy to these compensation schemes Notably employers are more likely to offer STIs to individuals at senior career levels (such as professional or management positions) than other employees Moreover individuals in some career tracks mdash notably those with a direct impact on corporate or office performance mdash are more likely to be eligible for STIs than others In practice this means that sales and production employees are more likely to derive a high proportion of their total compensation from STIs than those serving in administrative or customer service roles

W H AT rsquo S I N A S T I There are many forms of short-term incentives but generally they are any payment over a 12-month period that is associated with individual team andor corporate performance Popular types of STI include bonuses individual incentive plans and teamunit performance incentives They are frequently linked to profitability or revenue growth and achievement of overall company goals determines the size of the company bonus pool STIs are often capped at a fixed amount or percentage of annual base salary (ABS) By capping these payments HR and business managers can prevent runaway expenses while achieving higher performance

I N T R O D U C T I O N

Multinational corporations small firms and organizations around the world all face the same problem motivating their employees to contribute to the grouprsquos success Although base salary serves as compensation for an individualrsquos time and efforts many employees may regard this transaction as a given and neglect to make their employerrsquos objectives their own In an effort to more closely align individual goals with the organizationrsquos many employers offer short-term incentives (STIs) that reward employees for performance that is above or beyond their expectations Although these incentive programs once were reserved for sales personnel and other employees that have a high impact on company success STIs increasingly are available to all types of employees

Short-term incentives also are responsive to market conditions For instance companies in highly competitive markets are more likely offer generous STIs in order to drive employee and company performance while those in stable or saturated markets may be less concerned with aggressive growth strategies

C O N S I D E R AT I O N SHR and business managers should consider the following questions when creating a short-term incentive program

What types of employees would benefit most from STIs

Should I restrict the total value of STIs available to a single employee in one year

How should I discern between high-performing and low-performing employees when distributing STIs

What factors should I use when determining the impact an individual has on company success

SAMPLE

R E P O R T S T R U C T U R EThe 2019 Incentives Around the World publication provides human resource (HR) and business managers with up-to-date information on short-term incentive figures and strategies This publication offers market-level data on the provision of short-term incentives for six distinct career levels across 16 job families as well as the target and actual payout for this type of compensation It also provides regional comparisons and three-year trends to help decision makers understand what the future may hold and anticipate market changes

The report collates data from 102 markets in 83 countries and offers a unique insight critical to any business looking to devise a sound and competitive compensation program

The report includes the following sections

S U M M A R Y O F K E Y F I N D I N G SThis section serves as an executive summary for those looking for Mercerrsquos insights and observations it provides high-level trends market comparisons and other analysis The following topics are included

Incentives by career level

Incentives by job family

R E G I O N A L R E S U LT SThis section includes a regional summary and market specific data for those HR professionals looking for more targeted data on an individual topic It provides market level data including the percentage of employees receiving STI and the actual and target STI as a percentage of base salary This section also offers the following insights for each market

Regional summary provides data by career level for short-term sales and long-term incentives

Each job family provides data by career level for short-term incentives

A B O U T T H I S R E P O R TThis section delineates the methods used in the report and lists key definitions

Methodology includes data sources used to compile this report and other details on calculations and assumptions

Glossary provides definitions for many of the terms used throughout this report as well as other HR related terms

SAMPLE

R E A D I N G T H I S R E P O R T

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V EThe first page of each region

section provides a quick reference summary table

SAMPLE DATA

Throughout the report data relating to the percentage of employees receiving a STI are colored purple ldquoActualrdquo data are orange and ldquoTargetrdquo data are blue

SAMPLE

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 3: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

GLO

BAL

PUBL

ICAT

ION

S

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Exclusive to Talent All Accessreg subscribers Not included in Talent All Accessreg

H E A LT H amp B E N E F I T S

Car Benefit Policies Around the World

Global Parental Leave Global Parental Leave Industry Scorecard

LGBT Benefits Around the World

Worldwide Benefit amp Employment Guidelines

Vacation and Other Leave Policies Around the World

Vacation and Other Leave Industry Scorecard

Car Benefit Policies mdash Global Industry Findings

Severance Pay Policies Around the World

Severance Pay Policies Industry Scorecard

W O R K F O R C E amp C A R E E R S

Global Compensation Planning

Global Compensation Planning 20 Year Look Back

Global Pay Summary

Salary Movement Snapshot

Incentives Around the World

Workforce Turnover Around the World

Short-term Incentive Trends mdash A 10 Year Review

New Graduate Starting Salaries

H A N D B O O K S amp G U I D E S

Compensation Handbook

Global Mobility Handbook

HR Guide to Doing Business

HR Management Terms

HR Atlas

ORDER ONLINE

Short-Term Incentives Around the World

SAMPLE

G R A D I E N T PAY While trend lines indicate that more and more employees are eligible for STIs there is still a hierarchy to these compensation schemes Notably employers are more likely to offer STIs to individuals at senior career levels (such as professional or management positions) than other employees Moreover individuals in some career tracks mdash notably those with a direct impact on corporate or office performance mdash are more likely to be eligible for STIs than others In practice this means that sales and production employees are more likely to derive a high proportion of their total compensation from STIs than those serving in administrative or customer service roles

W H AT rsquo S I N A S T I There are many forms of short-term incentives but generally they are any payment over a 12-month period that is associated with individual team andor corporate performance Popular types of STI include bonuses individual incentive plans and teamunit performance incentives They are frequently linked to profitability or revenue growth and achievement of overall company goals determines the size of the company bonus pool STIs are often capped at a fixed amount or percentage of annual base salary (ABS) By capping these payments HR and business managers can prevent runaway expenses while achieving higher performance

I N T R O D U C T I O N

Multinational corporations small firms and organizations around the world all face the same problem motivating their employees to contribute to the grouprsquos success Although base salary serves as compensation for an individualrsquos time and efforts many employees may regard this transaction as a given and neglect to make their employerrsquos objectives their own In an effort to more closely align individual goals with the organizationrsquos many employers offer short-term incentives (STIs) that reward employees for performance that is above or beyond their expectations Although these incentive programs once were reserved for sales personnel and other employees that have a high impact on company success STIs increasingly are available to all types of employees

Short-term incentives also are responsive to market conditions For instance companies in highly competitive markets are more likely offer generous STIs in order to drive employee and company performance while those in stable or saturated markets may be less concerned with aggressive growth strategies

C O N S I D E R AT I O N SHR and business managers should consider the following questions when creating a short-term incentive program

What types of employees would benefit most from STIs

Should I restrict the total value of STIs available to a single employee in one year

How should I discern between high-performing and low-performing employees when distributing STIs

What factors should I use when determining the impact an individual has on company success

SAMPLE

R E P O R T S T R U C T U R EThe 2019 Incentives Around the World publication provides human resource (HR) and business managers with up-to-date information on short-term incentive figures and strategies This publication offers market-level data on the provision of short-term incentives for six distinct career levels across 16 job families as well as the target and actual payout for this type of compensation It also provides regional comparisons and three-year trends to help decision makers understand what the future may hold and anticipate market changes

The report collates data from 102 markets in 83 countries and offers a unique insight critical to any business looking to devise a sound and competitive compensation program

The report includes the following sections

S U M M A R Y O F K E Y F I N D I N G SThis section serves as an executive summary for those looking for Mercerrsquos insights and observations it provides high-level trends market comparisons and other analysis The following topics are included

Incentives by career level

Incentives by job family

R E G I O N A L R E S U LT SThis section includes a regional summary and market specific data for those HR professionals looking for more targeted data on an individual topic It provides market level data including the percentage of employees receiving STI and the actual and target STI as a percentage of base salary This section also offers the following insights for each market

Regional summary provides data by career level for short-term sales and long-term incentives

Each job family provides data by career level for short-term incentives

A B O U T T H I S R E P O R TThis section delineates the methods used in the report and lists key definitions

Methodology includes data sources used to compile this report and other details on calculations and assumptions

Glossary provides definitions for many of the terms used throughout this report as well as other HR related terms

SAMPLE

R E A D I N G T H I S R E P O R T

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V EThe first page of each region

section provides a quick reference summary table

SAMPLE DATA

Throughout the report data relating to the percentage of employees receiving a STI are colored purple ldquoActualrdquo data are orange and ldquoTargetrdquo data are blue

SAMPLE

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 4: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

G R A D I E N T PAY While trend lines indicate that more and more employees are eligible for STIs there is still a hierarchy to these compensation schemes Notably employers are more likely to offer STIs to individuals at senior career levels (such as professional or management positions) than other employees Moreover individuals in some career tracks mdash notably those with a direct impact on corporate or office performance mdash are more likely to be eligible for STIs than others In practice this means that sales and production employees are more likely to derive a high proportion of their total compensation from STIs than those serving in administrative or customer service roles

W H AT rsquo S I N A S T I There are many forms of short-term incentives but generally they are any payment over a 12-month period that is associated with individual team andor corporate performance Popular types of STI include bonuses individual incentive plans and teamunit performance incentives They are frequently linked to profitability or revenue growth and achievement of overall company goals determines the size of the company bonus pool STIs are often capped at a fixed amount or percentage of annual base salary (ABS) By capping these payments HR and business managers can prevent runaway expenses while achieving higher performance

I N T R O D U C T I O N

Multinational corporations small firms and organizations around the world all face the same problem motivating their employees to contribute to the grouprsquos success Although base salary serves as compensation for an individualrsquos time and efforts many employees may regard this transaction as a given and neglect to make their employerrsquos objectives their own In an effort to more closely align individual goals with the organizationrsquos many employers offer short-term incentives (STIs) that reward employees for performance that is above or beyond their expectations Although these incentive programs once were reserved for sales personnel and other employees that have a high impact on company success STIs increasingly are available to all types of employees

Short-term incentives also are responsive to market conditions For instance companies in highly competitive markets are more likely offer generous STIs in order to drive employee and company performance while those in stable or saturated markets may be less concerned with aggressive growth strategies

C O N S I D E R AT I O N SHR and business managers should consider the following questions when creating a short-term incentive program

What types of employees would benefit most from STIs

Should I restrict the total value of STIs available to a single employee in one year

How should I discern between high-performing and low-performing employees when distributing STIs

What factors should I use when determining the impact an individual has on company success

SAMPLE

R E P O R T S T R U C T U R EThe 2019 Incentives Around the World publication provides human resource (HR) and business managers with up-to-date information on short-term incentive figures and strategies This publication offers market-level data on the provision of short-term incentives for six distinct career levels across 16 job families as well as the target and actual payout for this type of compensation It also provides regional comparisons and three-year trends to help decision makers understand what the future may hold and anticipate market changes

The report collates data from 102 markets in 83 countries and offers a unique insight critical to any business looking to devise a sound and competitive compensation program

The report includes the following sections

S U M M A R Y O F K E Y F I N D I N G SThis section serves as an executive summary for those looking for Mercerrsquos insights and observations it provides high-level trends market comparisons and other analysis The following topics are included

Incentives by career level

Incentives by job family

R E G I O N A L R E S U LT SThis section includes a regional summary and market specific data for those HR professionals looking for more targeted data on an individual topic It provides market level data including the percentage of employees receiving STI and the actual and target STI as a percentage of base salary This section also offers the following insights for each market

Regional summary provides data by career level for short-term sales and long-term incentives

Each job family provides data by career level for short-term incentives

A B O U T T H I S R E P O R TThis section delineates the methods used in the report and lists key definitions

Methodology includes data sources used to compile this report and other details on calculations and assumptions

Glossary provides definitions for many of the terms used throughout this report as well as other HR related terms

SAMPLE

R E A D I N G T H I S R E P O R T

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V EThe first page of each region

section provides a quick reference summary table

SAMPLE DATA

Throughout the report data relating to the percentage of employees receiving a STI are colored purple ldquoActualrdquo data are orange and ldquoTargetrdquo data are blue

SAMPLE

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 5: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

R E P O R T S T R U C T U R EThe 2019 Incentives Around the World publication provides human resource (HR) and business managers with up-to-date information on short-term incentive figures and strategies This publication offers market-level data on the provision of short-term incentives for six distinct career levels across 16 job families as well as the target and actual payout for this type of compensation It also provides regional comparisons and three-year trends to help decision makers understand what the future may hold and anticipate market changes

The report collates data from 102 markets in 83 countries and offers a unique insight critical to any business looking to devise a sound and competitive compensation program

The report includes the following sections

S U M M A R Y O F K E Y F I N D I N G SThis section serves as an executive summary for those looking for Mercerrsquos insights and observations it provides high-level trends market comparisons and other analysis The following topics are included

Incentives by career level

Incentives by job family

R E G I O N A L R E S U LT SThis section includes a regional summary and market specific data for those HR professionals looking for more targeted data on an individual topic It provides market level data including the percentage of employees receiving STI and the actual and target STI as a percentage of base salary This section also offers the following insights for each market

Regional summary provides data by career level for short-term sales and long-term incentives

Each job family provides data by career level for short-term incentives

A B O U T T H I S R E P O R TThis section delineates the methods used in the report and lists key definitions

Methodology includes data sources used to compile this report and other details on calculations and assumptions

Glossary provides definitions for many of the terms used throughout this report as well as other HR related terms

SAMPLE

R E A D I N G T H I S R E P O R T

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V EThe first page of each region

section provides a quick reference summary table

SAMPLE DATA

Throughout the report data relating to the percentage of employees receiving a STI are colored purple ldquoActualrdquo data are orange and ldquoTargetrdquo data are blue

SAMPLE

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 6: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

R E A D I N G T H I S R E P O R T

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V EThe first page of each region

section provides a quick reference summary table

SAMPLE DATA

Throughout the report data relating to the percentage of employees receiving a STI are colored purple ldquoActualrdquo data are orange and ldquoTargetrdquo data are blue

SAMPLE

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 7: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

R E A D I N G T H I S R E P O R T

J O B FA M I LY

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

This section provides detailed data by job family and career level

A dash indicates that insufficient data are available to report the statistic

SAMPLE DATA

The figures in the Actual and Target columns represent a percentage of base salary

The number in blue is the highest in the column

The number in red is the lowest in the column

The figure in this column is indicating the prevalence of STI for each market and career level ie the percentage of employees receiving an incentive

SAMPLE

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 8: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

R E G I O N

SAMPLE

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 9: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

R E G I O N A L S U M M A R YThe analysis and results in this report are based on the data from the companies surveyed In some cases data do not cover full three years or is sparse for some positions or career levels

The following tables and charts provide data on eligibility (represented by percentage of employees receiving incentives) and incentive award levels (incentive as a percentage of base salary) for employees in different career levels in the Americas

Eligibility to receive STIs varies with career level a higher percentage of employees in the executive level (73) are eligible to receive incentives as compared to those at the management level In most American markets the actual (median of base salary) incentives received by executives is more than five times higher than para-professionals

The following chart presents the combined data of the overall prevalence of incentives and incentives as a percentage of annual base salary for employees in the Americas

Incentive eligibility and incentive payouts vary across countriesThis section presents the information on annual incentives for each market further refined by career levels and job family

K E Y F I N D I N G SDis ma que veritem perferu ptatincta voluptur

Debis et harumque cuptas ea quid ut vent lam apedi te parum ariorer iorite molorem fugiat

Occum es am necuptas dolorporrum ant abo Lori vit optas res rehendi ut et fugia quiatectus am quae volumendis accate et et quam labor ma sapicid quaspedios estiis doluptum volupta tustrunt

Am evelestecto volorem ut as suntiumquunt mintus num nis dis modisin et abor ma eturioreium ratem ut explandandel ius sernatquam que poribus solutat ioresseni quis est dit quiati as mollupt atibus quid exerro berchic temquibus volorpore sed mint adignimodi cum liciisquam qui odis ipsum aut faciundae Ut illibus aruntio necestibus

Lupti conseque nus anderfe rfernatur Qui aciis niendest acia et quiaspe prescid ullorem ex enem ut perem quasi aut fugiate parumqu iscillut ipsae volo quias mintin res sedit mincte lique numet eatus

Urerum ist aut ut andaes di volorpor magnam facepudistia sae dit am dit enim eatur

Udionse nienis seceper itatectae venitem faccumquodi bersperum invenit atatum nis nam

SAMPLE

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 10: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

S H O R T - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

S A L E S I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L A N D TA R G E T B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

R E G I O N A L S U M M A R Y

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(median of base salary)

Target(median of base salary)

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADERSAMPLE

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 11: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

L O N G - T E R M I N C E N T I V EP E R C E N TA G E E L I G I B L E R E C E I V I N G A C T U A L B Y C A R E E R L E V E L

Receiving ( of eligible employees)

Eligibility ( of employees)

Actual(Black Scholes Method)

Actual(Accounting Cost Method)

R E G I O N A L S U M M A R Y

73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41 73 73 41 41

SENIOR PROFESSIONAL

EXPERIENCED PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE MANAGER TEAM LEADER

SAMPLE

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 12: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

MARKETSHORT-TERM INCENTIVE SALES INCENTIVE

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

REGION AVERAGE 73 405 406 84 139 405 406 84

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 104 ndash 250 78 104 ndash 250 78

MEXICO 149 270 261 89 149 270 261 89

PANAMA 126 164 270 87 126 164 270 87

PERU 163 298 293 102 163 298 293 102

UNITED STATES 131 457 459 72 131 457 459 72

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 126 164 270 87 126 164 270 87

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

C A R E E R L E V E L

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E

SAMPLE

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 13: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

C A R E E R L E V E L

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual Black Scholes and Actual Accounting Cost represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

S H O R T - T E R M S A L E S A N D L O N G - T E R M I N C E N T I V E SE X E C U T I V E C O N T I N U E D

MARKETLONG-TERM INCENTIVE

ELIGIBLE RECEIVING ACTUAL BLACK SCHOLES

ACTUAL ACCOUNTING COST

REGION AVERAGE 73 405 406 84

ARGENTINA 142 264 307 89

BRAZIL 156 286 321 88

CANADA 156 430 397 103

CHILE 177 331 370 126

COLOMBIA 149 293 285 94

COSTA RICA 137 327 230 88

GUATEMALA 104 ndash 250 78

MEXICO 149 270 261 89

PANAMA 126 164 270 87

PERU 163 298 293 102

UNITED STATES 131 457 459 72

URUGUAY 163 298 293 102

VENEZUELA 126 164 270 87

SAMPLE

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 14: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXECUTIVE MANAGER

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 15: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETTEAM LEADER SENIOR PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 16: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

J O B FA M I LY

S H O R T - T E R M I N C E N T I V E SA D M I N I S T R AT I O N C O N T I N U E D

Notes Eligible represents the percentage of employees eligible to receive an incentive Receiving represents the percentage of eligible employees who received an incentive Actual and Target represent the median percentage of base salary Figures in blue represent the highest value and figures in red represent the lowest

MARKETEXPERIENCED PROFESSIONAL PARA-PROFESSIONAL

ELIGIBLE RECEIVING ACTUAL TARGET ELIGIBLE RECEIVING ACTUAL TARGET

ARGENTINA 142 264 307 89 142 264 307 89

BRAZIL 156 286 321 88 156 286 321 88

CANADA 156 430 397 103 156 430 397 103

CHILE 177 331 370 126 177 331 370 126

COLOMBIA 149 293 285 94 149 293 285 94

COSTA RICA 137 327 230 88 137 327 230 88

GUATEMALA 125 ndash ndash 100 125 ndash ndash 100

MEXICO 134 272 242 93 134 272 242 93

PANAMA 104 ndash 250 78 104 ndash 250 78

PERU 149 270 261 89 149 270 261 89

UNITED STATES 126 164 270 87 126 164 270 87

URUGUAY 163 298 293 102 163 298 293 102

VENEZUELA 111 ndash ndash 68 111 ndash ndash 68

SAMPLE

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 17: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

A B O U T T H I SR E P O R T

SAMPLE

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 18: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

A B O U T T H I S R E P O R T

MET

HO

DO

LOG

Y

M E T H O D O L O G YThis section provides information on the methods of collecting collating and analysing data for this publication Below are notes on exceptions and exclusions in the data and a list of data sources relevant equations and currency conversions rates Readers will also find a glossary of key terms

D ATA P R O C E S SS TAT I S T I C S The following statistics are presented in this publication

Median The data point that is higher than 50 of all other data in the sample when ranked from low to high Also known as the 50th percentile

Average The sum of all data reported divided by the number of data observations in the sample Also known as the mean

Prevalence The percentage of companies that provided a response to a question with a defined number of options to choose from For example a single response question or a multiple response (select all that apply) style question

In single response questions the sum of all responses may not equal 100 due to rounding

In multiple response questions the sum of all responses will be greater than 100

N The number of companies that reported data for the statistic

Endash or ldquondashrdquo The sample is too small to provide the statistic

D ATA M A S K I N GTo ensure the confidentiality of all companies that provide data to Mercerrsquos surveys statistics have been ldquomaskedrdquo by displaying an endash or ldquondashrdquo when minimum sample sizes are not met

A minimum of three data points are required to report the average and prevalence percentages

A minimum of four data points are required to report the median

D ATA A N A LY S I S This publication uses job-level STI data sourced from Mercerrsquos Total Remuneration Surveys (TRS) to calculate STI prevalence rates STI actual incentives (as a percentage of base salary) and STI target incentive (as a percentage of base salary)

Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a percentage of base salary

The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal to eight organisations

Throughout the report the ldquotargetrdquo is the expected STI percentage for the current performance year while ldquoactualrdquo is the STI amount paid for the most recently completed performance year

The ldquopercentage receivingrdquo indicates the percentage of all employees that received a short-term incentive

SAMPLE

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 19: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health wealth and career needs of a changing workforce Mercerrsquos more than 23000 employees are based in 44 countries and the firm operates in over 130 countries Mercer is a wholly owned subsidiary of Marsh amp McLennan Companies (NYSE MMC) the leading global professional services firm in the areas of risk strategy and people With nearly 65000 colleagues and annual revenue over $14 billion Marsh amp McLennan helps clients navigate an increasingly dynamic and complex environment Marsh amp McLennan Companies is also the parent company of Marsh which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions Guy Carpenter which develops advanced risk reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities and Oliver Wyman which serves as a critical strategic economic and brand advisor to private sector and governmental clients For more information visit wwwmercercom Follow Mercer on Twitter Mercer

SAMPLE

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report
Page 20: 2019 INCENTIVES AROUND THE WORLD · firms, and organizations around the world all face the same problem: motivating their employees to contribute to the group’s success. Although

For further information please contact your local Mercer office or visit our website at wwwimercercom

Copyright 2019 Mercer LLC All rights reserved 19-IAW-SAMPLE

SAMPLE

  • Table of Contents
  • Global Publications
  • Introduction
    • Report Structure
      • Region
        • Regional Summary
        • Career Level
        • Job Family
          • About this Report