Mercer Executive Resources Consulting Asia Pay Reward for

Mercer Executive Resources Consulting, Asia Pay & Reward for Huawei Technologies, Co. , Ltd. By: Elaine Ng Mercer Executive Resources Consulting (MERC) Tel: 852 -2115 2088; Email: enskcrg@netvigator. com © Copyright

Mercer Executive Resources Consulting, Asia 設定薪酬結構 Developing Salary Structure © Copyright

Mercer Executive Resources Consulting, Asia 設定薪酬結構之考慮因素 Developing Salary Structure- Considerations o o o o Base Pay Policy 基本薪酬政策 Decide Competitive Reference Salary 決定具有競爭性的標準 資 Decide Salary Ranges 制定 資幅度 Range Overlap 幅度重疊 Significance of Salary Range 資幅度的重要性 How many structures? 多少個結構? Overs and Unders高出/底於 資幅度 © Copyright

Mercer Executive Resources Consulting, Asia 薪酬政策 Compensation Policy $ 标准 资 Reference Salary Grade 级 别 定下最经济的标准 资以支付公司架构图 • Define the most economic reference salary to pay for the organization chart 建立最少增加幅度之标准 资 • Establish the smallest possible increase of reference salary © Copyright

Mercer Executive Resources Consulting, Asia 中國市場數據 Market Data on China 上海製造業 Shanghai Manufacturing WOFE (1) Data as at April 1999 RMB 90百分比 90 th Percentile 75百分比 75 th Percentile 中位數 Median 25百分比 25 th Percentile 10百分比 10 th Percentile Position Class © Copyright

Mercer Executive Resources Consulting, Asia 中國市場數據 Market Data on China 上海製造業 Shanghai Manufacturing WOFE (2) Data as at April 1999 © Copyright

Mercer Executive Resources Consulting, Asia 貴公司以及市場比較 Your Company vs the Market Comparison RMB 75百分比 75 th Percentile 中位數 Median 貴公司回歸線 Your company trendline 25百分比 25 th Percentile Position Class © Copyright

Mercer Executive Resources Consulting, Asia 貴公司以及市場比較 Your Company vs the Market Comparison © Copyright

Mercer Executive Resources Consulting, Asia 基本薪金政策 Base Pay Policy • LAG 落后 1320 1200 1100 1000 900 800 • LEAD 领先 • LEAD-LAG 落后-领先之间 年初 年中 年末 Start Year Mid End Year 1320 1100 800 年初 年中 年末 Start Year Mid End Year © Copyright

Mercer Executive Resources Consulting, Asia 建 立 竞 争 资 Develop Competitive Salaries 一 个 等 级 = 一 个 标 准 资 One Grade = One Reference Salary 标 准 资 = 竞 争 报 酬 = 招 聘 标 准 RMB Reference Salary = Competitive Pay = Recruitment Standard Grade PC 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Grade or Position Class © Copyright

Mercer Executive Resources Consulting, Asia 利用幅度制定 资架构 RMB Develop Salary Structure with Ranges Grade a a 1 - a 2 b 1 - b 2 c 1 - c 2 b c = Mid-Point Progression 中点增加率 = = Range Spread 幅度 = } Question: • How much should be the mid-point progression (%) between grades? • How wide should the ranges be? • How much should the range overlap? © Copyright

Mercer Executive Resources Consulting, Asia 制定幅度 Developing Salary Range 由中点开始 (或标准 资) o Start with Mid-Point (or Reference Salary) 决定幅度 o Decide Range Spread 定最低 资 o Establish Minimum 定最高 资 o Establish Maximum © Copyright

Mercer Executive Resources Consulting, Asia 定最低 资 Establishing Minimum = = Rmb 1, 000 50% 1+ ( 2 Rmb 1, 000 1. 25 Rmb 1, 000 1 + 50% 2 ( = 1 + (25%) =1+ = Rmb 800 ( E. g. Mid-Point 中点 Range 幅度 1+ ( 2 ( Minimum = ( 最低 25 100 = 1 + 0. 25 = 1. 25 © Copyright

Mercer Executive Resources Consulting, Asia 定最高 资 Establishing Maximum 最低 = = Minimum x (1 + Range) Rmb 800 x (1 + 50%) Rmb 800 x 1. 5 Rmb 1, 200 = Minimum Rmb 800 最低 Mid-Point Rmb 1, 000 中点 Maximum Rmb 1, 200 最高 1 + 50% = 1 + ( 50 100 ( 最高 幅度 = 1 + (0. 5) = 1. 5 幅度 Range © Copyright

Mercer Executive Resources Consulting, Asia 中点增加率 Mid-Point Progression Gradual Moderate Steep 逐渐的 稳健的 陡斜的 30% 15% 10% More grades 多级别 15% Less grades 少级别 © Copyright

Mercer Executive Resources Consulting, Asia 幅度重叠 Range Overlap 2, 700 2, 250 RMB 1, 800 1, 500 RMB 1, 875 1, 800 1, 500 1, 563 1, 350 1, 200 1, 250 1, 125 1, 000 1, 000 900 800 Grade No overlap 没有重叠 50% jump each promotion 每晋升, 增加 50% 800 Grade Big overlap 大部分重叠 12. 5% jump each promotion 每晋升, 增加 12. 5% Moderate overlap 适度重叠 25% jump each promotion 每晋升, 增加 25% Range overlap 重叠部分= 67% 1, 200 - 900 300 = = 67% 1, 350 - 900 450 Range overlap 重叠部分 = 40% 1, 200 - 1, 000 = 200 = 40% 1, 500 - 1, 000 500 © Copyright

Mercer Executive Resources Consulting, Asia 幅度重叠 Range Overlap (2) How much ? 多少 一个级别的幅度一般不超过三个其他级别的重叠 The range span of any one grade should not overlap much more than three other grades © Copyright

Mercer Executive Resources Consulting, Asia 幅度的重要性 Significance of Salary Range Maximum 最高点 Q 4 一般期望 = 标准 资 Q 3 Standard Expectation = Reference Salary - Performance 作表现 - Competencies 技能 - Years in service 服务年期 Q 2 中点 = 竞争性 资 Mid-Point = Competitive Pay Q 1 Minimum 最低点 © Copyright

Mercer Executive Resources Consulting, Asia 多少结构 How Many Structures? 市场特色 u Market Characteristics 内部平衡 u Internal Equity 外部竞争力 u External Competitiveness 管理概念 u Management Philosophy © Copyright

Mercer Executive Resources Consulting, Asia 超过/低过 资幅度 $ Overs and Unders Reference Salary 标准 资 中值前进 mid-point progression 用什么策略? 等级 Grades What Strategies? © Copyright