Human Resources: Watson Wyatt Data Services releases its 2009/2010 Survey Report on Middle Management Compensation

ROCHELLE PARK, N.J., (July 16, 2009) - Watson Wyatt Data Services, a wholly-owned subsidiary of Watson Wyatt Worldwide, today announced the publication of its 2009/2010 Survey Report on Middle Management Compensation. The data are based on the responses of 863 organizations encompassing 8,684 locations reporting data on 118,642 incumbents. Data are presented on a total of 287 geographic areas and 129 industry classifications.

Compensation Increases
Organizations providing data to both the 2008/2009 and the 2009/2010 surveys increased salary and total cash compensation an average of 3.2 percent and 3.6 percent, respectively. Managers in the Human Resources function experienced the highest average salary increase at 3.7 percent, while managers in the Retail Management function experienced the highest average total cash compensation increase at 9.5 percent. At the opposite end of the spectrum, middle managers in the Production/Processing function received the lowest average increase to salary at 2.7 percent, while incumbents in the e-Commerce function received the lowest average increase to total cash compensation at 2.4 percent.

There were slight variations among industry sectors in regard to salary increases. The highest increase to salaries, 3.8 percent, was reported in the Utilities and Energy Sector, while the lowest increase, 2.9 percent, was reported in the Banking and Finance Sector. On the other hand, there was moderate variation (3 percentage points) among the industry sectors regarding total cash compensation. The highest increase to total cash compensation was reported in the Retail and Wholesale Trade Sector at 5.8 percent, while the lowest increase to total cash compensation was reported in the Insurance Sector at 2.8 percent.

Regional differences in increases to salaries were less than one-half of a percentage point, while increases to total cash compensation varied slightly. Increases to salaries varied from a high of 3.4 percent in the South Central Region to a low of 3 percent in the West Coast Region. Increases to total cash compensation ranged from a high of 4.1 percent in the Northeast Region to a low of 3.4 percent in the South Central and West Coast regions.

Within the entire sample combined, 37 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 eight positions in the overall sample received increases to total cash compensation of at least 6 percent:

*       Assistant General Counsel
*       Corporate Economist
*       Database Marketing Manager
*       Demand Planning Manager
*       National Accounts Manager
*       Regional Business Manager
*       Retail Store Manager
*       SOX Compliance Manager

Within organizations providing data to both the 2008/2009 and the 2009/2010 surveys, the average percentage of employees receiving a bonus and/or other cash compensation payment increased to 59.5 percent.

Bonus/Variable Pay Program Trends
Bonus and/or other cash compensation payments averaged 12.4 percent for all salary levels combined. The percentage of middle managers receiving a short-term incentive award varied somewhat among salary levels, ranging from a high of 64.5 percent of incumbents earning $125,000 or more to a low of 48.7 percent of incumbents earning between $50,000 and $59,999. Middle managers earning $125,000 or more received bonus and/or other cash compensation payments of 18.9 percent, while middle managers earning between $50,000 and $59,999 received short-term incentive payments averaging 9.2 percent.

The percentage of middle managers receiving a bonus and/or other cash compensation award varied significantly among industry sectors reported. The average percentage of employees receiving a bonus and/or other cash compensation payment ranged from a high of 74.7 percent of incumbents in the Insurance Sector to a low of 34.6 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. Middle managers in the Durable Goods Manufacturing Sector received an average payment of 15 percent, while incumbents in the Health Care Sector received an average payment of only 8.8 percent.

There were only very slight regional differences with regard to bonus and/or other cash compensation. Nationally the numbers ranged from a high of 12.8 percent of salary in the Northeast region with 61 percent of middle managers receiving an award, to a low of 12.1 percent of salary in the Southeast region with 56.2 percent of middle managers receiving an award.

Among those surveyed, 56.5 percent do not have formally established bonus targets.
The percentage of middle managers receiving a bonus payment varied dramatically between those with established bonus targets and those without. In organizations with established bonus targets, 77.9 percent of middle managers received an average 12.2 percent of salary, while 32.1 percent of incumbents without established bonus targets received an average of 12.7 percent of salary.

The 2009/2010 Survey Report on Middle 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.