Download Remuneration Survey

New Zealand Payroll
Practitioners' Association
(NZPPA) Remuneration
Survey
Executive Summary for Participants
December 2011
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Contents of Full Report
1
Introduction............................................................................................................................. 5
1.1
Roles Surveyed ................................................................................................................. 5
1.2
Survey Database ............................................................................................................... 5
2
NZPPA Membership ................................................................................................................ 6
2.1
Location ........................................................................................................................... 6
2.2
Gender ............................................................................................................................. 6
2.3
Industry ............................................................................................................................ 7
2.4
Total Annual Organisation Payroll ................................................................................... 7
2.5
Number of Payroll and General Staff ................................................................................ 8
2.6
Reporting Lines ................................................................................................................ 8
2.7
Responsibility for Payroll Internationally .......................................................................... 9
3
Payroll Roles .......................................................................................................................... 10
3.1
Job Titles ........................................................................................................................ 10
3.2
Structure of Payroll Roles ............................................................................................... 10
3.3
Hours of Work ............................................................................................................... 11
3.4
Payroll Process ............................................................................................................... 11
3.5
Payroll Periods Managed ................................................................................................ 11
3.6
Payroll Policies and Procedures ..................................................................................... 12
3.7
Fairness of Remuneration ............................................................................................... 12
3.8
Duration of Service ........................................................................................................ 12
3.9
Career Opportunities ...................................................................................................... 12
4
Variable Pay .......................................................................................................................... 13
4.1
Incidence of Variable Pay............................................................................................... 13
4.2
Rates of Variable Pay...................................................................................................... 13
4.3
Key Performance Indicators ............................................................................................ 13
5
Benefits Provided................................................................................................................... 14
6
Training ................................................................................................................................. 15
6.1
Training Practices ........................................................................................................... 15
6.2
Source of Payroll Training, Updates and Advice ............................................................ 15
Data Pages…………………………………………………………………………………………………………….17
Appendices…………………………………………………………………………………………………..……….27
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Introduction
1
Introduction
dsd Consulting Ltd is delighted to present the first annual New Zealand Payroll Practitioners'
Association (NZPPA) Remuneration Survey.
This survey is provided as part of NZPPA’s Service to members.
1.1
Roles Surveyed
This survey examines remuneration practices for the following five Payroll roles:

Payroll Manager

Payroll Team Leader

Payroll Consultant

Payroll Officer

Payroll Coordinator.
1.2
Survey Database
Data was collected via a questionnaire which 101 individual members completed.
matched against standard position titles.
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Roles were
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NZPPA Member Practices & Policies
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NZPPA Membership
The 101 members represents 17% of NZPPA membership.
2.1
Location
Nearly half of participants (44.2%) are based in Auckland and 22.1% are based in Other North Island
cities/towns as illustrated in Chart 1 below.
Chart 1 – Location of Participants
7.4%
12.6%
44.2%
Auckland
Other North Island
Christchurch
13.7%
Wellington
Other South Island
22.1%
2.2
Gender
The vast majority of participants (97.0%) are female, as illustrated in Chart 2 below.
Chart 2 – Gender of Participants
3.0%
Female
Male
97.0%
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2.3
Industry
Whilst responses were received from a broad range of industry groups, Manufacturing (12.9%),
Financial and Insurance Services (11.9%) and Public Administration and Safety (10.9%) were the most
common. Chart 3 provides a breakdown of participation by industry groups.
Chart 3 – Industry of Participants
14%
12.9%
11.9%
Percentage of Participants
12%
10.9%
10%
8.9%
7.9%
8%
5.9%
6%
5.0%
4.0%
4%
3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
2.0%
2%
1.0%
0%
Industry
2.4
Total Annual Organisation Payroll
51.1% of participants are employed by organisations with total annual payroll of under $20 million, as
illustrated in Chart 4 below.
Chart 4 –Total Annual Organisation Payroll
7.4%
19.1%
27.7%
<$10M
$10M-$20M
$20M-$50M
$50M-$100M
22.3%
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23.4%
>$100M
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SAMPLE DATA PAGE
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Payroll Officer (<$30M Organisation Payroll)
No. of Incumbents: 32
Key Accountabilities:
Employed in payroll team for an organisation with annual Payroll of less than $30 million.
Update, maintain and load employee information in the payroll software.
Maintain, load and calculate payroll data.
Respond to enquiries and requests for information from customers.
Update SOP's when changes are made to current procedure and processes.
Summary of Annual Remuneration
% Rec.
Lower Quartile
Median
Upper Quartile
Average
100%
45,806
53,708
59,844
52,172
100%
49,348
57,631
64,167
55,718
100%
48,610
56,501
64,167
55,117
100%
53,834
63,006
70,212
63,341
% Rec.
Lower Quartile
Median
Upper Quartile
Average
75%
2.7%
3.2%
4.0%
3.8%
% Rec.
Lower Quartile
Median
Upper Quartile
Average
6%
1,800
2,000
3,000
-
KiwiSaver
53%
1,029
1,173
1,279
1,183
Personal Insurances
45%
624
706
1,014
824
Variable Pay Values
% Rec.
Lower Quartile
Median
Upper Quartile
Average
Target Variable Pay
15%
-
1,200
-
1,685
Actual Variable Pay
8%
-
3,550
-
4,217
Variable Pay Values
Auckland
Wellington
Christchurch
ONI
OSI
61,930
-
-
36,900
-
64,548
-
-
37,638
-
67,634
-
-
37,638
-
Base Salary
Total Fixed Remuneration
Including KiwiSaver
Total Fixed Remuneration
Excluding KiwiSaver
Total Remuneration
Including KiwiSaver
Annual Salary Increase
Salary Increase in
previous 12 months
Benefit Values
(for those receiving Benefit)
Superannuation
Base Salary
Total Fixed Remuneration
Including KiwiSaver
Total Remuneration
Including KiwiSaver
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APPENDICES
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Appendix 1 – Understanding your data pages
Understanding remuneration terms
Employee Remuneration Structure
Base Salary
The taxable cash component of remuneration received by the employee. This
value is expressed as a full-time equivalent amount.
Total Fixed Remuneration
Including KiwiSaver
Base Salary plus fixed benefit and allowance values inclusive of FBT & include
employer contributions to KiwiSaver.
Total Fixed Remuneration
Excluding KiwiSaver
Base Salary plus fixed benefit and allowance values inclusive of FBT & exclude
employer contributions to KiwiSaver.
Total Remuneration
Total Fixed Remuneration (including employer contributions to KiwiSaver) plus
variable pay received by the employee (i.e. company bonus, performance
incentive, commission). This is the sum total of all remuneration elements.
Employee Benefit Values
Superannuation
The amount contributed by the employer to superannuation on behalf of the
employee.
KiwiSaver
The amount contributed by the employer to KiwiSaver on behalf of the
employee.
Personal Insurances
The total amount of medical insurance, death & disability insurance and
income protection insurance premiums paid by the organisation on behalf of
the participant.
Variable Pay
Actual Variable Pay
The total amount actually paid to employees in incentive, bonus or ad-hoc
payments during last 12 months.
Understanding data measures
% Receiving (%Rec)
Indicates the percentage of the sample receiving the particular benefit, e.g. 60%
of employees receive the benefit out of the possible 100% of sample.
Lower Quartile
This represents the point at which, when ranked from the lowest value to the
highest value, 25% of the sample is lower and 75% of the sample is higher.
The Lower Quartile is also known as the 25th percentile.
Median
When data is ranked from the lowest value to the highest value, the median
represents the middle point of the data. At the median, 50% of the sample is
lower and 50% of the sample is higher. The median is also known as the 50 th
percentile.
Upper Quartile
This represents the point at which, when ranked from the lowest value to the
highest value, 75% of the sample is lower and 25% of the sample is higher.
The Upper Quartile is also known as the 75th percentile.
Average
Indicates the average value of remuneration or benefit in any given sample.
The average is calculated by adding the numbers in a sample and then dividing
by the count of the sample.
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Appendix 2 – About dsd Consulting
We are niche market specialists in the area of Total Rewards Management. As remuneration and
rewards are our core business and primary focus, we provide our clients with only senior consultants
who are highly skilled and experienced in this specialist area. Our goal is to provide practical and
flexible tailored remuneration solutions to meet your individual business need.
“We have the depth of knowledge to present tailored solutions
rather than standard responses.”
Well known and highly respected in the New Zealand market, the three directors of dsd Consulting
(Doughty, Schäffler, Diver) bring together over 40 years of remuneration and human resources
experience.
Our Services
Executive remuneration
Structure, design and review
Total Rewards Strategy
Linking remuneration and rewards and the broader
offering to business strategy using the Five Pillars
of Total Rewards©
Short-term and Long-term
Incentive pay schemes and
Sales Commission schemes
Review, design and alignment using the Five
Pillars of Incentive Design©
Job analysis and market
pricing
Across job families and industry groups
Tailored remuneration
surveys
Key specialist roles in niche markets and our
national General Market Remuneration Survey
REMonTAP©
Employee Value Proposition
Audit, review and communication of Total
Rewards using the Four ‘F’s’ of EVP©
Remuneration systems
Design and implementation of remuneration
systems, including our proprietary in-house broad
banding system CareerMAP© and job family
systems
end2end© salary review
services
Including SRM Control©, an intranet-hosted, webbased salary review system and outsourced
remuneration management services
On-site remuneration
workshops
HR generalists, manager, employee, union
delegate training and one-on-one mentoring and
our facilitated Lunch and Learn© networking
sessions
Each of our Directors has held senior roles in large, multi-national organisations in diverse
remuneration and human resources management roles as well as providing external consulting
services for many years in this specialist field. This ‘hands on’ practical experience means that we
understand the issues from both sides of the table.
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