Hay report Anglais Africa

8/19/2019 Hay report Anglais Africa

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NORTH AFRICA SESSION LONDON, 6-7 MARCH 2012

The wave of change in 2011 and its impact on C&B Market:Toward new HR challenges?

Haykel BARBOUCH


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MERCER 109 March 2012

Agenda

Introduction:

Overview on the new global context and its impact on the business environment

Common HR Challenges in North Africa

I Latest C&B trends based on TRS Data for North Africa

1-Salary Increase s for 2011

2-Market Trends Comparison based on Mercer IPE (Position Class)

3-Typical Remuneration Mix by Career Stream (in % from TRS Data)

4-Typical C&B Levels by Career Stream (in Euro from TRS Data)

5-Market Movement for some positions (in % based YoY Reports)

6-Benchmarking of some Management positions (in Euro from TRS Data)

II C&B Topic: HR challenges ahead

Hard case from companies based in North Africa

III Discussion with attendees


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History is Being Made

! The North Africa is Witnessing the beginning of a new era that is likely to impact:

- Other Arab Countries.- Countries elsewhere where authoritarian regimes are in power: fromVenezuela to Pakistan to North Korea.

! Many have thought that the Arab world was not ready to democracy and civilliberties, and only authoritarian regimes can provide stability in a volatile region,

However, recent events have shown that societies held together by fear may offerthe illusion of stability for a time. This kind of stability brought with it !"#$%&'() and disappointment and eventually led to popular uprising.

! Long term consequences still unclear. Five years from now Libya, and possiblyother Arab countries will look very different. When something has been in the

freezer for 40 years, it would be difficult to know how it will look when it melts.


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*+$ -$.&/01" 2$3/.%45+&6 7#%86#8%$

! Very Youthful population, 60% below the age of 25.

! Median age of Egypt population is 23, while in the UK it is 40.

Population (in Milli

ons) : 2010

! 90084' .%/:#+ %4#$ /; 3/%$ #+40 #+$ %$.&/01" 5/58'4#&/0 :&'' ?/8@'$ /A$% #+$

next 25 years.

! High unemployment rates: 40% especially among the youth (40% ofunemployed are below the age of 24).

! The youth are connected; - Social media networks, mobile phones, Satellite TV.


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The Geopolitical Landscape

! The beginning of a new era similar to what had happened in: Eastern Europe

BCDC 40? E4#&0 93$%&64 BCDF1"G

! There are few Arab countries with largely homogeneous majorities, most are a

mixture of ethnic, religious and tribal groups.

! With the new politics taking center stage:

- Extremist religious parties would need to reinvent themselves, become ineffect Muslim Democrats, similar to Christian Democrats in Europe.

- Rise of secular parties with young and progressive leadership.

- There is a generational shift in attitude towards authority, the youth are

unhappy with the paternalistic culture and its structure of obedience.

! A unified army in Egypt and Tunisia would oversee a peaceful transition to

democracy.

! Countries fractured by ethnic, tribal and religious divisions are likely to suffer

from chaos and civil strife for months and years to come; Libya.


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Introduction

509 March 2012


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IntroductionOverview on the new political context and its Impact on the Business Environment

H Egypt & Tunisia

Down

* New and inexperienced parties at power

* The whole Economy plunged

* Social unrest and strikes are continuing

* Some violence scenes are raising fears

609 March 2012


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H Egypt & Tunisia

Up

* Democracy is enlarging to the whole society

* Business partnering will not be anymore monopolized

* The rising of civil society with youth people ready to

volunteer

* Common people expect strong support from foreign

countries to help them achieve a free society

709 March 2012


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H Libya

* Kaddafi is over but his shadow is still there

* Harsh dispute among militias

* The whole economy without money

* NGOs are there to provide basic support

809 March 2012


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H Algeria

* Compromised by its support to Kaddafi

* President Bouteflika still at power

* The regulation swing is still at play

* Multinational companies are continuing toopen subsidiaries

* Algerian immigration regulation are more

drastic since summer 2011

* Government is buying peace by increasing

salaries (minimum wage increased by 20%

from January 2012 , last increase was in2008 by same rate and public sector is

increasing salaries by 25 I 80%)

909 March 2012


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I Latest C&B trends based on TRS Data for each country1-Comparison between Salary Increase for 2011 and 2009

1009 March 2012

7,97

6,77

2,9

10,74

16,8

11,09

6,55

9,16

4

5,626,6

5,69

12

17,26

16,2

6,25

7,35

4,1

0

2

4

6

8

10

12

14

16

18

20

ActualSalary

Movement

Marketmovement

InflationRate

ActualSalary

Movement

Marketmovement

InflationRate

ActualSalary

Movement

Marketmovement

InflationRate

AlgeriaEgyptTunisia

2011

2009


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I Latest C&B trends based on TRS Data for each country2-Market Trends Comparison based on Mercer IPE (Position Class) 1/3

1109 March 2012

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

40 42 44 46 48 50 52 54 56 58 60 62 64

Median in Euro

Position Class

Annual Base Salary ! Comp 1

Maroc

Algeria

Tunisia

Egypt

Morocco


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1209 March 2012

0

50000

100000

150000

200000

250000

300000

40 42 44 46 48 50 52 54 56 58 60 62 64

Median in Euro

Position Class

Total Cash ! Comp 3

Maroc

Algeria

Tunisia

Egypt

Morocco


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1309 March 2012

0

50000

100000

150000

200000

250000

300000

40 42 44 46 48 50 52 54 56 58 60 62 64

Median in Euro

Position Class

Total Remuneration !

Comp 5

Maroc

Algeria

Tunisia

Egypt

Morocco


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I Latest C&B trends based on TRS Data for each country3-Typical Remuneration Mix by Career Stream (in % from TRS Data) 1/4

62,69

51,30

60,8269,95

7,66

13,36

14,60

12,82

23,54

22,65

14,38

11,79

6,1112,6910,19

5,45

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ExcecutiveManagementProfessionalPara-Professional

Algeria 2011

comp5

comp3

comp2

comp1


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1509 March 2012

54,7162,5866,0963,00

5,42

8,438,7313,56

25,21

16,9414,9511,11

14,6612,0410,2312,33

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Egypt 2011

comp5comp3

comp2

comp1


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1609 March 2012

33,72

53,1062,1358,54

29,68

22,1117,6624,97

21,00

12,369,636,01

15,6012,4410,5810,47

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Morocco 2011

comp5

comp3

comp2

comp1


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1709 March 2012

62,2468,1868,78

62,04

2,383,183,27

6,91

23,7213,9212,9110,57

11,6614,7215,0420,48

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%100%


Tunisia 2011

comp5

comp3

comp2

comp1


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I Latest C&B trends in North Africa4- Typical C&B Levels by Career Stream (in Euro from TRS Data) 1/4

1809 March 2012

61 028

16 63211 642

5 6090

10000

20000

30000

40000

50000

60000

70000

80000

90000


Algeria 2011

comp5

comp3

comp2

comp1

In Euro


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I Latest C&B trends in North Africa

4- Typical C&B Levels by Career Stream (in Euro from TRS Data) 2/4

1909 March 2012

73 471

26 08215 132

6 730 0

20000

40000

60000

80000

100000

120000


Egypt 2011

comp5

comp3

comp2

comp1

In Euro


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I Latest C&B trends in North Africa

4- Typical C&B Levels by Career Stream (in Euro from TRS Data) 3/4

2009 March 2012

85 699

34 64322 913

8 8640

20000

40000

60000

80000

100000

120000

140000

160000


Morocco 2011

comp5comp3

comp2

comp1

In Euro


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I Latest C&B trends in North Africa4- Typical C&B Levels by Career Stream (in Euro from TRS Data) 4/4

58 519

21 29514 102

8 1130

10000

20000

30000

40000

50000

60000

70000

80000

90000


Tunisia 2011

comp5

comp3

comp2

comp1

In Euro


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I Latest C&B trends based on TRS Data for each country5-Market Movement (2009/2011 increase in % based YoY Reports)

2209 March 2012

0

2

4

6

810

12

14

16

18

20

2011 2009 2011 2009 2011 2009

Algeria Egypt Tunisia

%

+ 0.11

- 0.46

+ 1.8


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I Latest C&B trends based on TRS Data for each country6-Benchmarking of some Management positions (in % from TRS Data) 1/4

2309 March 2012

11,3

12,8

10,6

0

2

4

6

8

10

12

14

ALGEGYPTTUN

HR Manager %


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I Latest C&B trends based on TRS Data for each country6-Benchmarking of some Management positions (in %from TRS Data) 2/4

2409 March 2012

9,3

21,4

12,4

0

5

10

15

20

25

ALGEGYPTTUN

Brand/Product Manager %


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MERCER

I Latest C&B trends based on TRS Data for each country6-Benchmarking of some Management positions (in %from TRS Data) 3/4

2509 March 2012

7,6

17,4

10,1

0

2

4

6

8

10

12

14

16

18

20


Production Manager%

I C S


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I Latest C&B trends based on TRS Data for each country6-Benchmarking of some Management positions (in % from TRS Data) 4/4

2609 March 2012

8,8

12,4

9,2

0

2

4

6

8

10

12

14


Sales Manager%

II T d HR h ll ?


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MERCER

II Toward new HR challenges ?

2709 March 2012

Blue Collars

pressure demandingimmediate salaryincreases

Unions backing salaryincrease demands

Open Strikeresulting in delivery

delays

Strained Dialoguebetween Unions &

the Company

How to understand themarket and to align to it

without compromising thecorporate

policy and creating sharpgap with other regions?

Dilemma fortheMultinationalcompanies :

II T d HR h ll ?


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2809 March 2012

Common Issues :HR

* Lack of support from the TopManagement to HR

Management

* HRDs only focused on Admin

are over* HR Topics will need in the

future to be better interrelated

C&B

* C&B policy over focused onExternal Competitiveness

* Talents are not treated inaccordance with C&B policy

II To ard ne HR challenges ?


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2909 March 2012

Recurrent insights :

* Multinational companies shouldcommunicate on their sustainable

presence

* Corporate social responsibility isbecoming key

II Hard Cases


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II Hard Cases

H Examples of Multinational company issues faced in Algeria :

H 2011:Arecelor Mittal Steel complex in Annaba blocked by strikes mainly for salaryconditions improvement and hiring of temporary employees for months forced

company to declare bankrupt and forced involvement of Algerian government to

give helps by fiscal advantages and bank loans free of interest to stop the process

and avoid a big social crisis in the east of the country.

H 2012: Big protest in Sanofi pharmaceuticals subsidiary in Algeria in February 2012

(covered on newspapers), where sales representatives teams claimed officially

during a town hall meeting salary increases, better company cars, better conditions

of work and company management accepted to proceed for this year (march 2012)

after discussions to avoid strike and social conflict.

3009 March 2012


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