Human Resources: Watson Wyatt Data Services releases its 2009/2010 Survey Report

ROCHELLE PARK, N.J., (May 27, 2009) - Watson Wyatt Data Services, a wholly-owned subsidiary of Watson Wyatt Worldwide, today announced the publication of its 2009/2010 Survey Report on Supervisory Management Compensation, now in its fifty-fourth edition. The data contained in this reference are based on the responses of 784 organizations encompassing 4,490 locations reporting data on 107,424 incumbents. Data are presented on a total of 141 geographic areas and 115 industry classifications.

Compensation Increases
Organizations providing data for both the 2008/2009 and 2009/2010 surveys increased salaries and total cash compensation an average of 3 percent and 2.6 percent, respectively. Incumbents in the Legal function experienced the highest average salary increase at 4.4 percent while incumbents in the Field Services function experienced the highest average total cash compensation increase at 4.8 percent. At the opposite end of the spectrum, supervisors in the Information Systems: Systems/Programming function received the lowest average increase to salary at 2.6 percent while the lowest average increase to total cash compensation of .2 percent was reported in the Marketing and Sales function.

Increases to salaries and total cash compensation were modest among industry sectors. The highest increase to salary of 3.4 percent was reported in the Insurance Sector while the lowest average increase of 2.5 percent was reported in the Banking and Finance Sector. The highest increase to total cash compensation was reported in the Utilities and Energy Sector at 5.7 percent while the lowest increase to total cash compensation was reported in the Insurance Sector at .6 percent.

There were only slight differences in increases to salaries and total cash compensation by region. The highest average increase to salary, 3.2 percent, and total cash compensation, 3.2 percent, was reported in the South Central Region. Supervisors from the Northeast and West Coast regions received the lowest average increase to salary at 2.9 percent while supervisors in the Northeast Region received the lowest average increase to total cash compensation at 1.9 percent.
Within the entire sample combined, 39 positions received salary and/or total cash compensation increases that exceeded the overall average salary/total cash compensation increases by at least 25 percent. The following six positions in the overall sample received increases to total cash compensation of at least 4.5 percent, as listed below:
*       Data Control Supervisor
*       Data Security Administration Supervisor
*       Electrical Engineering Supervisor
*       Equipment Installation and Repair Supervisor
*       Machine Shop Maintenance Supervisor
*       Tax Supervisor

Bonus/Variable Pay Program Trends

Bonus and/or other cash compensation payments averaged 7.7 percent for all salary levels combined. The percentage of employees receiving a short-term incentive award varied significantly among salary levels, ranging from a high of 47.1 percent of supervisors earning $75,000 or more to a low of 31.6 percent of incumbents earning less than $40,000.

The percentage of supervisors receiving a bonus and/or other cash compensation award varied significantly among the industry sectors reported. The average percentage of employees receiving a bonus and/or other cash compensation payment ranged from a high of 67.2 percent of supervisors in the Utilities and Energy Sector to a low of 19.8 percent of incumbents in the Health Care Sector. While the range is not as wide in the average amount of bonus and/or other cash compensation paid there is still a moderate difference between industry sectors. Supervisors in the Retail and Wholesale Trade Sector received an average payment of 9.8 percent while the incumbents in the Services Sector received only 6.7 percent.

There were only slight regional differences with regard to bonus and/or other cash compensation. Nationally the numbers ranged from a high of 43 percent of supervisors receiving short-term incentives in the South Central Region to a low of 41.1 percent receiving a bonus and/or other cash compensation payment in the North Central Region. The highest average bonus and/or other cash compensation payment went to supervisors in both the Southeast and South Central regions who received an average payment of 7.9 percent of salary, while supervisors in the West Coast Region received an average short-term incentive payment of 7 percent of salary.

Among those surveyed, 74 percent of participating organizations did not have formally established bonus targets. In organizations where bonus targets were established, 68.9 percent of supervisors received an actual bonus payment. Meanwhile, 19 percent of incumbents received a bonus in organizations where bonus targets were not established. Supervisors received awards on average of 8.8 percent of salary when targets were formally established and 6.1 percent of salary when targets were not established.

The 2009/2010 Survey Report on Supervisory Management Compensation is available online, or as an online/printed report set.

About Watson Wyatt Data Services
Watson Wyatt Data Services (WWDS), a wholly-owned subsidiary of Watson Wyatt Worldwide (ranked 980 on CNN Money's FORTUNE 1000 list of top companies for 2009), is a leading provider of compensation, benefits and employment practices information to the global employer community. From offices around the world, we solicit, analyze and publish an extensive library of printed, interactive and online survey reports. Our compensation databases are recognized worldwide as the most reliable source of current data for compensation planning.

Global scope, local knowledge ...
Covering 97 countries across six continents, our data centers in the U.S., Canada, Europe, Asia and Latin America annually compile reports on the remuneration, benefits and employment practices of local and multinational companies. Our "in-country" experts apply their local knowledge of the varied employment markets, practices and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire institutions. Our international databases contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world's largest conglomerates.

In addition to compensation surveys, WWDS also publishes references that help HR practitioners attract, retain and reward exceptional employees. These guides cover a wide variety of subject areas, including variable pay, performance management and personnel policies on a local, regional and global basis. For more information, visit our Web site at WWDS.com.