Talent Management Top Reason Employers Pursue Global Leveling

September 14, 2011 (PLANSPONSOR.com) - According to Mercer’s 2011 Global Leveling Survey, the primary objectives for evaluating jobs and implementing a global grade structure are to support the development and career paths of employees (68%) and to facilitate the implementation of a global pay or rewards programs (65%). 
 

“Beyond simply helping with pay decisions, companies are seeking much more from their global leveling strategies, such as defining employee career paths, linking jobs to specific behavioral competencies and assessing pay equity,” said Darrell Cira, Partner with Mercer’s Human Capital consulting business.

Conducted this summer, Mercer’s 2011 Global Leveling Survey examines trends in strategies around grading and job evaluation. It includes responses from more than 380 organizations across all industries throughout the U.S. and Canada.

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While global leveling has long been used for companies’ executive roles, an increasing number of organizations are implementing grade structures for their other employee groups. Mercer’s survey shows that 85% of organizations report grade structures for executives and just as many for managers and non-sales professionals.

“Years ago, only about half of multinational companies had global grade structures for employees that weren’t executives,” said Cira. “This increase in the use of global grading for populations other than executives is likely directly related to organizations’ focus on facilitating talent mobility and implementing meaningful career paths for their employees.”

Challenges of Global Leveling 

According to Mercer’s survey, more than one-third (36%) of organizations expect to modify their current approach to global leveling or implement a new compensation management structure in the next two years. Yet finding resources and time to do so may be challenging.

The biggest obstacle organizations face with employing a global grade structure is resources and time, reported by almost two-thirds (63%) of organizations. This challenge is followed by the absence of a global HRIS (40%) and resistance of leadership (38%).

Morningstar Reports Long-Term Mutual Funds Nearly Double in August

 September 14, 2011 (PLANSPONSOR.com) – Morningstar reported estimated U.S. mutual fund and exchange-traded fund asset flows through August 2011.
 

Redemptions from long-term mutual funds nearly doubled to approximately $32.5 billion in August after outflows of about $17.1 billion in July. August marked the most severe mutual fund outflows since November 2008. U.S. ETFs collected assets of just $947 million in August following July’s inflows of $17.2 billion. Although August’s inflows were meager, U.S. ETFs have realized only a single month of outflows in the trailing 12.

Despite August market volatility, U.S. stock outflows fell to $15.5 billion during the month after redemptions of $22.9 billion in July. As an indication that risk aversion has spread to fixed income, investors pulled $12.0 billion from taxable-bond funds in August. Bank loan and high-yield bond funds were hardest hit, with outflows of $7.3 billion and $5.1 billion, respectively.

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With assets fleeing all of the major asset classes during August, investors found refuge of a sort in money market funds, which saw inflows of $74.8 billion. This total was the biggest monthly inflow for such funds since January 2009, and partially reversed June and July’s combined $150 billion in outflows.

Modest outflows continued for international-stock and balanced funds in August. The asset classes experienced respective outflows of $2.9 billion and $2.3 billion.

U.S. stock ETFs, which typically drive overall ETF flows, saw inflows of just $394 million in August. On the other hand, International stock ETFs lost $5.5 billion during the month, the greatest outflow for any ETF asset class. This outflow also marks the largest monthly net redemption for international-stock ETFs in the past three years.

Taxable-bond offerings, which added another $4.3 billion in August, saw greater inflows than any of the other ETF asset classes during the month. Commodities ETFs experienced outflows of nearly $2.0 billion in August.

To view the complete report, please visit http://www.global.morningstar.com/augflows11.

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