Anyone know how compensation benchmarking is actually done? Is a third party used? If so which one? I’ve heard they don’t consider variable pay just base salary when comparing which seems very wrong. Anyone know details of what os used?
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Pfffft. If you try to talk to HR they direct you to HR Direct. It’s laughable. Why do we have BHR contacts if all they say is “please submit your question via HR direct.”
Our performance ranking offers pay differentiation and promotes a true meritocracy.
The company will recognize those deserving credit for these record profits.
That’s why the executives will get massive stock options and deferred compensation, while you all get thiz nutz.
Still have my notes from when I started decades ago.We use to have a new employee orientation where the comparison list was shared!
Below are from my notes:
for “professionals”, was done on a national level (we pay relocation), techs and OCA was regional since we recruit locally.
A couple large banks: since we compete with banks for IT folks
Car companies, 2 out of Detroit: since we compete with them for mechanical engineers
Shell, BASF: for chemists (we hire a few), chemical engineers since we hire so many.
Some other ones I didn’t immediately recognize, clearly not competing for technical jobs.
At the time, early 2000s, our goal was to pay in the 2nd quartile, Shell targeted top quartile.
Amazing how far we have gone down….
Dallas not paying for independent studies, they are paying for the exact data they specify.
Just like all the expat studies that cut expat benefits every time. I know an EM expat that quit and went expat with another major, to the same country. He said that EM expat compensation was laughable compared to his new company. EM will research it again, and cut benefits again, then EM will end up only sending BTC employees expat.
None of these studies ever lead to slashing EM Executive pay
Eliminate bk lounge and McDonald’s then the average should go up
I suspect it is like everything else here...
Management decides what they want.
Then they do a "study" and make sure it says they were right.
20% of our peers are leaving, so we have quite a bit of data on our own. But if I were to guess on the issues with the ExxonMobil salary benchmarking:
- It likely treats all skill-sets roughly the same. So if you are BAR, an engineer, IT or Sales, you are likely on the same curve. That pulls up some salaries and pushes down others. So if you are of a job family that is higher-paid in industry, you may find yourself lower-paid in ExxonMobil.
- It is regional so likely struggles in some areas to find company comparisons. (What other O&G companies are in Brussels? …or if you are in IT, you are likely still benched against O&G vs Apple/Google/Microsoft.)
- They likely filter out real high-earning regions. I bet they exclude London salaries in the UK, because they deem them too expensive. But London-based jobs are probably actual competition. However, on the other side of things, if you are in a low-earning region, they are happy to bump down the salary curve as cost-of-living is so cheap. (So constantly filtering out high-earning data, in preference for low-earning data.)
- I have heard they are now targeting a 50% point on the curve (at best, a 66%). So once you have all the inaccuracies from #1-#3, this still isn’t likely to be top of the pay curve.
- They don’t understand and value the non-pay benefits appropriately. Pension is interesting in the US, but maybe not elsewhere. What other benefit do we have that is a rarity? Really nothing. And no bonus or signing bonus.
- I suspect the inflation adjustments in salary are lagging….as EM appears to not want to recognize inflation.
- We all know the names of the consulting companies used, and probably seen their work in other areas. It is awful. Consulting companies also pander to the goals of their employers. So if management wants Opex savings, the consultant is likely to give them about 60% truth and 40% validation of management’s beliefs.
This is all speculation….but I know the workings of the company to suspect it isn’t far off.
HR here. I have the list:
- Chuck E. Cheese
- Xerox
- Game Stop
- Herbalife
- Kodak
@kjp+1jqyjMGV, nah man! Have you ever heard that loyal dogs have ever betrayed their owners? Our HR peeps pay same respect to TG and DW. They will watch you die in vain but won't open their mouths.
I know for sure that the spinless HR employees are spying this site but the id--ts are trained so well by TG gang that they are so dog loyal to TG gang and not to employees, unfortunately. I agree with the other poster calling them Human Remains, they really are just that, employee blood sucking Humans feeding on fellow employees remains. Disgusting you peeps!
Prove us wrong HR. Too afraid to share your methodology because you know it is indefensible and rigged?
@OP+1jqyjMGV, you would hope that our HR colleagues would shed some light and share the information, even anonymously. But guess what, these TGs slaves won't share a thing benefitting the employees they keep singing to care for. Yes, I am talking to you all HR (Human Remains) people.