Outsourcing in CEE. Country Overview. Hungary - Hay Group

Shared Services Centres in HungaryHay Group Sector Compensation Survey

2© 2007 Hay Group. All Rights Reserved

All rights reserved. No part of this publication may be reproduced or used up without the written permission of Hay Group Management Consultants Ltd.

Hay Group Management Consultants Ltd.

1122 Budapest, Maros u. 12.

Tel: +36-1-393-0000

Fax: +36-1-393-0001

E-mail: [email protected]

www.haygroup.com/hu

www.haygrouppaynet.com

Introduction

Hay Group is a global consulting firm that works with leaders to transform strategy into reality and to help people and organizations realize their potential


How we organize our business

Building effective organizations

Leadership and talent Reward services

Leadership transformation

Capability assessment

Talent management H

ay G

roup

Tra

nsfo

rmin

g Le

arni

ng: o

nlin

e di

agno

stic

s Executive rewards

Job evaluation

Reward Information Services

Reward strategies

Hay Group Insight: employee and customer surveys

Performance management

BEO solutions

Helping organizations workOur purpose

Our practice clusters

Our service lines


Who we are in Hungary?

409Partciaipants

20Sectors

12Cosultants

250 000Individauly salary data

Hay Group methodologyJob Evaluation and Job Mapping


Determining a job size

Know-how Accountability Total job size=++ Problem

solving


Identification, comparison of jobs

Job

size

(ref

eren

cele

vel)

Field of activity (Job Family)

Participants & database


Participanting organizations

32 participating companies with data of 10660 employees

http://www.alcoa.com/canada/fr/home.asp

http://www.cemex.hu/page.asp?id=872

http://upload.wikimedia.org/wikipedia/en/4/45/Convergys.gif


Database structure

General Accounting

10%

Financial Analysis

8%

IT Services21%

Payable/Receivable Accounting

17%

Procurement4%

Other10%

Data Management

5%

HR Services6%

Customer Service

19%

Rate of incumbents by job families

Financial Services

35%


Compensation elements

Base salaryIncludes:

all cash remuneration paid to an employee on an annual basis and which can be classified as a “vested cash benefit”.

monthly salary (12 month salary), any “extra” payment such as 13th and 14th months,

language premiums, length of service premium, regional allowances, and fees, other special skills and job premiums, market supplements.

Overtime and shift premiums are not included in base salary.

Total cashIncludes:

- base salary plus variable cash payments made to employees, such as bonuses. profit

sharing, and commissions.

BASE SALARY + PREMIUMS/BONUS + SALES COMMISSION + COMMISSION = TOTAL CASH

Overtime and shift premiums are not included in total cash.

Salary markets


-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Gas and oil

FinanceICT SSC FMCG

PharmaIndustria

l

RetailUtilit

y

Base SalaryTotal Cash

Sector comparison

Average deviaton of median values to all sectors


2,0%

-12,0%

1,2%

-10,4%-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%Budapest Province

Base Salary Total Cash

Comparison of regions

Mean deviation of median values compared to the all companies market – base salary and total cash


7,7% 7,4%

5,8%

2,8% 2,6% 2,4%

-0,7%-1,6%

-4,3%

-6,7%-8%

-4%

0%

4%

8%HR TB FA PA IT GA QA DM CS LSA

Comparison of job families

IT: IT Services CS: Customer Service HR: HR Services

Legend

PA: Payable/Receivable Accounting GA: General Accounting FA: Financial Analysis

Mean deviation of median values compared to the all companies market – total cash

DM: Data Management LSA: Procurement TB: Treasury

QA: Quality Assurance

Salary policy


Age

The following table shows the average age of the employees by employee groups

Age

Managers 36

Team Leaders / Supervisors 29

Vendors / Specialists 27


284

275

266 265 264258 257

239 239

200

210

220

230

240

250

260

270

280

290

300

Procurement IT Services HR Services Treasury FinancialAnalysis

GeneralAccounting

CustomerService

Pay./Rec.Accounting

DataManagement

'000

HU

F

Graduate salaries

The average gross monthly entry-level base salaries by field of activity


Compensation of language knowledge

% of companies providing higher base salary % of base salary

Norwegian 100.0% 16.3%

Danish 100.0% 16.0%

Swedish 83.3% 15.6%

Dutch 76.9% 17.5%

Polish 66.7% 13.0%

Finnish 66.7% 15.0%

French 61.1% 10.6%

Spanish 57.1% 9.9%

Italian 53.8% 10.9%

66.7% of participants compensate the knowledge of special languages

Benefits


Company cars

Rate of companies offering company cars:

Ref. level Car Model % of comp.

Ford Mondeo 46.7%

VW Passat 26.7%

Ford Focus 26.7%

Volvo S60 13.3%

Ford Focus 41.7%

VW Golf/Jetta 41.7%

Ford Mondeo 33.3%

17,9%

50,0%60,7%

71,4%

49,7%

75,7%85,1%

93,1%

0%

20%

40%

60%

80%

100%

% o

f com

pani

es

SSC NationalTypical car models:

Average car prices are between 5-7 million HUF

Team

Le

ader

sM

anag

ers

Team Leaders/ Supervisors Managers


Trainings

Managers Team Leaders Specialists

Job related trainings 82.1% 96.4% 96.4%

Non-job related trainings 64.3% 57.1% 53.6%

Number of days spent on trainings per year 11.2 11.2 9.9

96.4% of participants provide training courses to their employees.


Cafeteria

96.5% of participants provide benefits in cafeteria system

Only 28.6% of companies offer every benefit in cafeteria system

% of companies

% of employees

Holiday Voucher 96.3% 47.8%

Hot meal allowance 92.6% 74.6%

Public Transport 88.9% 61.4%

Culture allowance 85.2% 39.7%

Voluntary Health Fund

85.2% 50.3%

Internet Subscription

77.8% 22.3%

274300

348

250 255 269

0

50

100

150

200

250

300

350

400

Specialists TeamLeaders

Managers

SSC National

Median value of cafeteria

Other HR issues


Employee turnover

39,5% 38,6%

33,4%

0%

10%

20%

30%

40%

Monotony /Stress

Career Compensation

Non SSC; 23,8%

SSC - same job;

19,8%

SSC - another

job; 54,0%

Other; 2,4%

Next job of leaving employees

The avearge employee turnover of SSC copmanies was 24.5% in 2008.

Most frequent reasons of turnover

International comparison


Analyzed countries

Countries

Czech Republic CZ

Hungary H

Poland PL

Romania RO

Slovakia SK


Analyzed elements

Purchasing power of the salary

Cost of living

Taxes, allowances paid by the employee

Purchasingpower

Net salary

Gross salary

Analyzed element


0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

CZ RO PL SK H

Gross salary Net salary Purchasing power


Vendor / Specialist (Hungary = 100%)


0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

CZ RO PL SK H

Gross salary Net salary Purchasing power


Team Leader (Hungary = 100%)


0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

CZ RO PL SK HGross salary Net salary Purchasing power


Manager (Hungary = 100%)

Thank you for your attention!

[email protected]

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Outsourcing in CEE. Country Overview. Hungary - Hay Group

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