2013 Employment Related Services Salary and Benefits Survey Roger Horne Business Development Manager 2013 ERSA Annual Conference Good morning, thanks Anton for the introduction. As Anton said I am roger Horne and I work for ERSA. I am going to talk to you about the 20123 ERSA salary and benefits survey. Please bear with me as we have tried to avoid death by powerpoint today, but with the subject matter of this breakout it is unavoidable.

What we will cover Background and methodology Job titles Salary survey results – by job roles Salary survey results – benchmarking What we will cover in the next 8-10 minutes READ FROM SLIDE

Methodology - timetable Timescale Now - March ERSA seek expressions of interest from members March - April Finalise contributors, survey content and scope, Croner develop survey April – May Croner distribute and collect completed questionnaires May - June Croner analyse results June Results presented to contributors July – December Contributors have sole access to the full results December Full survey realised to ERSA membership What we will cover in the next 8-10 minutes READ FROM SLIDE

Methodology 14 member organisations completed Figures relate to May 2013 Corporate Staff and Delivery Staff Medians calculated on samples of 5 Averages calculated on samples of 2-4 So first of all in terms of methodology we Selected Croner Rewards who have a long history of developing salary and benefits surveys in the business arena. Each year publishing up to 60 such surveys from a wide range of organisation including public sector and not for profit. After selecting interested members, there were 14, we worked with Croner to devise a suitable questionnaire, this was distributed and asked for information to May 2013, so quite current. The questionnaire asked each participant to provide for each job roles the basic annual salary and bonus that constitute the total annual cash payment. Other details requested included: Pension, medical Company car Plus geographic The data was of course treated with the utmost confidentiality and the analysis was undertaken so no individual organisation could be identified.

Size of Organisation Average turnover/income - £71m (2012 was £61m) Range £11.9m to £200m (2012 was £1.5m to £200m) Total number of employees including Welfare to Work = 14,719 (8% increase from 2012) of which:  2,922 Corporate Staff  8,208 Delivery Staff  Total 11,130 Welfare to Work staff represent 75.6% of the whole workforce

Job titles Corporate Chief Executive Officer Managing Director/Chief Operating Office Head of Business Development (New for 2013) Head of Quality/Compliance (New for 2013) Quality/Compliance Manager CORPORATE JOB TITLES – TWO NEW ONES HEAD OF BD AND HEAD OF QUALITY

Job titles Delivery Staff Operation Director Senior Operations Manager(Cluster) Personal Advisor/Employment Consultant Tutor/Trainer/Coach Employer Engagement Manager Employer Engagement Consultant Supply Chain/Subcontractor Manager Delivery Centre Administrator (New for 2013) DELIVERY STAFF – NO SURPRISES, SMALL CHANGES WE REMOVED THE SPEICLAIST HEALTH COACH AND ADDED IN ADMINISTRATOR

Results

Staff Turnover A total of 3,393 Welfare to Work staff left during the period 30th April 2012 to 1st May 2013 (a total of 6,737 left during the 12 months up to 30th April 2012) 61.3% of Corporate Staff and 73.1% of Delivery Staff left voluntary 38.7% of Corporate Staff, 26.9% of Delivery Staff left involuntary Absence rate for both Corporate and Delivery Staff is 3.3% BEFORE WE GET INTO THE RESULTS A SLIDE ABOUT STAFF TURNOVER READ SLIDE

Sample – percentage of participants by location GEOGRAPHIC COVERAGE, NOT NATIONAL BUT GOOD LONDON, SE, MIDLANDS AND NORTH EAST, SO A GOOD SPREAD.

Sample – percentage of employees by gender

MEDIAN TOTAL COMPENSATION Corporate Staff CORPORATE STAFF MEDIAN BASIC SALARY MEDIAN TOTAL COMPENSATION Chief Executive Officer 130,000 188,143 Managing Director/ Chief Operating Officer 127,501 158,424 Head of Business Development (new 2013) 78,000 93,678 Head of Quality/ Compliance (new 2013) 67,620 78,502 Quality/Compliance Manager 42,741 46,402

MEDIAN TOTAL COMPENSATION Delivery Staff DELIVERY STAFF MEDIAN BASIC SALARY MEDIAN TOTAL COMPENSATION Operations Director 78,000 82,680 Senior Operations Manager (Cluster) 47,000 53,841 Operations Manager 32,000 35,085 Personal Adviser/Employment Consultant 21,250 23,687 Tutor/Trainer/Coach 21,500 23,117 Employment Engagement Manager 43,725 47,718 Employer Engagement Consultant 24,493 26,942 Supply Chain/Subcontractor Manager 43,000 46,402 Delivery Centre Administrator 16,000 17,040

Corporate Staff / Delivery Staff JOB TITLES BASIC SALARY Delivery Centre Administrator 16,000 Personal Adviser/Employment Consultant 21,250 Tutor/Trainer/Coach 21,500 Employment Engagement Consultant 24,493 Operations Manager 32,000 Quality/Compliance Manager 42,741 Supply Chain/Subcontractor 43,000 Senior Operations Manager (Cluster) 47,000 Head of Quality/Compliance 67,620 Head of Business Development 78,000 Operations Director Managing Director/Chief Operating Officer 127,501 Chief Executive Officer 130,000

Chief Executive Officer by Income Band MEDIAN BASIC SALARY TOTAL COMPENSATION Under £50m 98,333 118,962 £50m to £100m 138,973 183,711 Over £100m 250,400 302,285

Corporate Staff CORPORATE STAFF BASIC SALARY TOTAL COMPENSATION National London Chief Executive Officer 130,050 220,000 188,143 238,795 Managing Director/ Chief Operating Officer 127,501 131,000 158,424 142,675 Head of Business Development 78,000 80,000 93,678 Head of Quality/ Compliance 67,620 75,000 78,502 Quality/Compliance Manager 42,741 45,000 46,402 50,085

Delivery Staff DELIVERY STAFF BASIC SALARY TOTAL COMPENSATION National London Operations Director 78,000 70,000 82,680 80,750 Senior Operations Manager (Cluster) 47,000 44,566 53,841 49,838 Operations Manager 32,000 32,566 35,085 37,800 Personal Adviser/Employment Consultant 21,250 22,942 23,687 24,772 Tutor/Trainer/Coach 21,500 23,959 23,117 24,740 Employment Engagement Manager 43,725 42,500 47,718 47,700 Employer Engagement Consultant 24,493 24,946 26,942 30,692 Supply Chain/Subcontractor Manager 43,000 44,900 46,402 47,285 Delivery Centre Administrator 16,000 18,385 17,040 20,137

WITH A CONTRACTED BONUS % Bonus Contracted / Achieved CORPORATE STAFF WITH A CONTRACTED BONUS % WITH AN ACTUAL BONUS % Chief Executive Officer 76.5 64.7 Managing Director/Chief Operating Officer 77.3 36.4 Head of Business Development 70.6 Head of Quality/Compliance 50.0 16.7 Quality/Compliance Manager 51.4 31.4 DELIVERY STAFF Operations Director 60.9 15.2 Senior Operations Manager (Cluster) 32.7 14.5 Operations Manager 29.5 11.5 Personal Adviser/Employment Consultant 14.3 6.3 Tutor/Trainer/Coach 11.9 1.7 Employment Engagement Manager 46.7 20.0 Employer Engagement Consultant 29.7 10.9 Supply Chain/Sub Contractor Manager 18.9 8.1 Delivery Centre Administrator 13.1 3.3

Other Benefits CORPORATE STAFF DELIVERY STAFF LIFE ASSURANCE % MEDICAL CASH PLAN % HEALTH INSURANCE % Chief Executive Officer 100 11.8 76.5 Managing Director/Chief Operating Officer 95.5 4.5 90.9 Head of Business Development 94.1 17.6 70.6 Head of Quality/Compliance 93.3 13.3 50.0 Quality/Compliance Manager 51.4 17.1 20.0 DELIVERY STAFF Operations Director 76.1 15.2 47.8 Senior Operations Manager (Cluster) 69.1 7.3 41.8 Operations Manager 73.8 18.0 19.7 Personal Adviser/Employment Consultant 55.6 17.5 9.5 Tutor/Trainer/Coach 52.5 20.3 - Employment Engagement Manager 48.9 11.1 53.3 Employer Engagement Consultant 51.6 15.6 18.8 Supply Chain/Sub Contractor Manager 18.9 24.3 Delivery Centre Administrator 50.8 13.1 9.8

Median Pension Contributions CORPORATE STAFF EMPLOYEE % EMPLOYER % Chief Executive Officer 7.5 14.1 Managing Director/Chief Operating Officer 8.0 Head of Business Development 5.0 6.0 Head of Quality/Compliance Quality/Compliance Manager 7.0 DELIVERY STAFF Operations Director Senior Operations Manager (Cluster) Operations Manager Personal Adviser/Employment Consultant 6.5 Tutor/Trainer/Coach Employment Engagement Manager Employer Engagement Consultant Supply Chain/Subcontractor Manager Delivery Centre Administrator

Benchmarking SO ALL THE SALARIES ARE VERY INTERESTING, WE CAN GO BACK DURING QUESTIONS TO LOOK AT ANY PARTICULAR , BUT THE NEXT SECTION DEALS WITH SOME BENCHMARKING AND TREND ANALYSIS….

Trend Analysis Percentage Changes Median Basic Annual Salary % change 2012 2013 Chief Executive Officer 137,500 130,000 -5.5 Managing Director/Chief Operating Officer 100,000 127,501 +27.5 Quality/Compliance Manager 31,724 42,741 +34.7 Operations Director 75,000 78,000 +4.0 Senior Operations Manager (Cluster) 55,000 47,000 -14.5 Operations Manager 30,000 32,000 +6.7 Personal Adviser/Employment Consultant 22,941 21,250 -7.4 Tutor/Trainer/Coach 22,170 21,500 -3.0 Employment Engagement Manager 35,000 43,725 +24.9 Employer Engagement Consultant 23,000 24,493 +6.5 Supply Chain/Sub Contractor Manager 43,000 +34.4 SOME FARILY SELF EXPALNANTORY COMPARISONS BETWEEN 2012 AND 2013

Percentage comparison with other sectors CORPORATE STAFF VS All Sectors Chief Executive Officer +2.0 Managing Director/Chief Operating Officer +27.9 Head of Business Development +22.7 Head of Quality/Compliance +12.6 Quality/Compliance Manager +10.7 DELIVERY STAFF Operations Director +20.9 Senior Operations Manager (Cluster) -1.8 Operations Manager -20.6 Personal Adviser/Employment Consultant -22.5 Tutor/Trainer/Coach -24.0 Employment Engagement Manager +11.8 Employer Engagement Consultant -6.3 Supply Chain/Sub Contractor Manager +9.7 Delivery Centre Administrator -12.6

Percentage comparison with other sectors CORPORATE STAFF VS All Sectors VS Private Sector Chief Executive Officer +2.0 -19.4 Managing Director/Chief Operating Officer +27.9 +21.9 Head of Business Development +22.7 +14.0 Head of Quality/Compliance +12.6 +2.7 Quality/Compliance Manager +10.7 +9.8 DELIVERY STAFF Operations Director +20.9 +12.0 Senior Operations Manager (Cluster) -1.8 -2.3 Operations Manager -20.6 -21.8 Personal Adviser/Employment Consultant -22.5 -23.1 Tutor/Trainer/Coach -24.0 -24.6 Employment Engagement Manager +11.8 +10.9 Employer Engagement Consultant -6.3 -6.8 Supply Chain/Sub Contractor Manager +9.7 +8.9 Delivery Centre Administrator -12.6 -13.1

Percentage comparison with other sectors CORPORATE STAFF VS All Sectors VS Private Sector VS Public Sector Chief Executive Officer +2.0 -19.4 +0.9 Managing Director/Chief Operating Officer +27.9 +21.9 +29.2 Head of Business Development +22.7 +14.0 +23.0 Head of Quality/Compliance +12.6 +2.7 +13.0 Quality/Compliance Manager +10.7 +9.8 +11.1 DELIVERY STAFF Operations Director +20.9 +12.0 +21.2 Senior Operations Manager (Cluster) -1.8 -2.3 -0.8 Operations Manager -20.6 -21.8 -20.0 Personal Adviser/Employment Consultant -22.5 -23.1 -21.3 Tutor/Trainer/Coach -24.0 -24.6 -25.8 Employment Engagement Manager +11.8 +10.9 +12.3 Employer Engagement Consultant -6.3 -6.8 -5.4 Supply Chain/Sub Contractor Manager +9.7 +8.9 +10.2 Delivery Centre Administrator -12.6 -13.1 -18.2

Percentage comparison with other sectors CORPORATE STAFF Vs All Sectors Vs Private Sector Vs Public Sector Vs Voluntary Sector Chief Executive Officer +2.0 -19.4 +0.9 +8.2 Managing Director/Chief Operating Officer +27.9 +21.9 +29.2 +33.4 Head of Business Development +22.7 +14.0 +23.0 +26.1 Head of Quality/Compliance +12.6 +2.7 +13.0 +18.3 Quality/Compliance Manager +10.7 +9.8 +11.1 +14.7 DELIVERY STAFF Operations Director +20.9 +12.0 +21.2 +24.4 Senior Operations Manager (Cluster) -1.8 -2.3 -0.8 +4.8 Operations Manager -20.6 -21.8 -20.0 -16.6 Personal Adviser/Employment Consultant -22.5 -23.1 -21.3 -18.2 Tutor/Trainer/Coach -24.0 -24.6 -25.8 -20.9 Employment Engagement Manager +11.8 +10.9 +12.3 Employer Engagement Consultant -6.3 -6.8 -5.4 -3.6 Supply Chain/Sub Contractor Manager +9.7 +8.9 +10.2 +13.8 Delivery Centre Administrator -12.6 -13.1 -12.4

2013 vs 2012 Percentage comparison with other sectors 2013 2012   2012 CORPORATE STAFF Vs All Sectors Vs Private Sector Vs Public Sector Vs Vol Sector Vs All Sectors Chief Executive Officer 2 -19.4 0.9 8.2 11.6 -7.2 11.8 20.6 Managing Director/Chief Operating Officer 27.9 21.9 29.2 33.4 Managing Director/Senior Operations Director 12.2 3.6 10.6 21 Head of Business Development (NEW FOR 2013) 22.7 14 23 26.1 Head of Quality/Compliance (NEW FOR 2013) 12.6 2.7 13 18.3 Quality/Compliance Manager 10.7 9.8 11.1 14.7 -14.5 -15.4 -14.1 -10.5

2013 vs 2012 Percentage comparison with other sectors 2013 2012   2012 DELIVERY STAFF Vs All Sectors Vs Private Sector Vs Public Sector Vs Voluntary Sector Operations Director 20.9 12 21.2 24.4 21.5 9.1 22.1 29.9 Senior Operations Manager (Cluster) -1.8 -2.3 -0.8 4.8 18 17.5 19.2 26.6 Operations Manager -20.6 -21.8 -20 -16.6 -20.9 -21.6 -20.5 17.2 Personal Adviser/Employment Consultant -22.5 -23.1 -21.3 -18.2 -10.5 -10.9 -9.6 7.3 Tutor/Trainer/Coach -24 -24.6 -25.8 -16.3 -17.5 -13.3 Employment Engagement Manager 11.8 10.9 12.3 14.7 -14.2 -15 -7.1 -4.5 Employer Engagement Consultant -6.3 -6.8 -5.4 -3.6 -10.4 Supply Chain/Sub Contractor Manager 9.7 8.9 10.2 13.8 Supply Chain/Subcontractor Manager -16.4 -17.1 -12.4

Thank you Questions. Roger Horne Business Development Manager e. roger Thank you Questions? Roger Horne Business Development Manager e.roger.horne@ersa.org.uk t.07720 677500