1.                                  Actuarial Valuation of Cross Country Total Rewards to Assure and Communicate Parity
HR Specialty Products & Services Catalogue Executive Summary
A No Frills Distillation of Vendor’s Marketing Collateral
Thomas A Ference
President & CEO
Human Resources Mining & Distribution Co
Locating, Validating and Accelerating HR  Innovation
Office:
Cell:
Fax:
Website:

2. Actuarial Valuation of Cross Country Total Rewards to Assure and Communicate Parity
Effective management of the global “people asset” requires the ability to evaluate the components of comparative total rewards programs.
Historically, such evaluations have been less precise including terms like “slightly below” or “somewhat better”.
The challenges are to have a methodology that produces quantified results and that can include all elements of the total rewards program.
The Total Rewards Evaluation Exchange (TREX) is a unique methodology that:
-Evaluates any element of compensation, employee benefits and broader HR to which numerical values can be attached.

3. Actuarial Valuation of Cross Country Total Rewards to Assure and Communicate Parity
-Produces a QUANTIFIED comparison of the elements of multiple programs, or of a single program against benchmarking standards.
-Produces results for such breakdowns as:
totally delivered vs. partially financed by the employer (i.e., net of employee contributions)
portion provided by public sources vs. privately
pre-tax vs. after-tax
etc.
-Incorporates a great deal of flexibility to quickly and cost-effectively redo the evaluation under “what-if” scenarios
Applying TREX gives an employer an unmatched capability for strategic and tactical management of the total rewards program.

4. TREX – Case Study
The client has principal operations in the US and Ireland.
In the US, the employer shares are a major part of salaried employee compensation; shares are not used in Ireland.
Employees in Ireland have raised concerns about equitable treatment for comparable positions.
The client wanted to respond and be fair, but not act unilaterally and add costs in Ireland if not warranted.
TREX was applied to the total rewards program for comparable positions in each country. The results indicated that no adjustment was required.
The TREX results were understandable in such a way that the client used them in a successful and positive communication to all employees.

5. Sample Case Study Data Position Incentives (USD) Ireland (Euros)
UK (pounds)
1) Vice President
(XYZ grade 11)
Base = 200,000
Incentive =
Options =
129,500
(30%) 39,000
5,000
120,700
(30%) 36,200
2) Finance Manager
(XYZ grade 7)
Base = 100,000
Options = None
54,000
(10%) 5,400
None
41,300
(10%) 4,100
3) Manager
(XYZ grade 6)
Base = 75,000
39,200
(8%0 3,100
40,800
(8%) 4,100
4) Administrative Asst. (XYZ grade 3)
Base = 50,000
22,700
(8%) 1,800
19,500
(8%) 1,600

6. Case Study Comparison of Employer, Employee and Social System-Provided Rewards Components
XYZ
XYZ
Social System
Employee

7. Case Study Benchmarking Example
Item
Vice President
Finance Manager
Other Managerial
Administrative
United Kingdom
Benchmarking – Total Compensation
60th – 65th
(percentile)
40th – 45th
40th- 45th
Prevalence of stock options
58%
N/A
Ireland
50% - 70%

8. Next Steps
This product/service is contained in the HR Specialty Products & Services Catalogue™
Operational level details about this particular service provider can be obtained in conference with the vendor
The HR Mining &Distribution Co. is an independent and contracted representative of the vendor
Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo
Tom Ference (Chicagoland area) or
Thank you for your potential interest in this fresh thinking