hkp/// group Workforce & Compensation Insights
Part 4: Organizational benchmarks - executive resources in different functional families
The development of the executive population over time was the subject of the previous issue of the hkp/// group Workforce & Compensation Insights. Now, the topic comes into focus on another level: As part of the Strategic Compensation Management Survey, the experts of the hkp/// group analyzed the absolute number of FTEs in the executive population of large German companies in various function families at different value levels (e.g., department head level). In addition, the relative distribution of executives across these function families at the individual value levels was considered.
The survey takes into account and compares a total of twelve different function families. For example, if we look at the management function family, the lower the value level, the lower the proportion of executives. The result is an inverted pyramid, as Verena Vandervelt, Senior Director hkp/// group, explains:
While a good 57% of FTEs at the highest level directly below the Management Board are in the management function family, only just under 2% of FTEs at department head level are in the management function family..
In addition, there is a discernible trend in the other function families that, as the operational focus increases, the majority of the corresponding managers are located at lower levels of value. The function families Production and Marketing & Sales are representative of this trend: While the proportion of these function families among managers at the highest level is only 0.7% and 1.9% respectively, it rises almost continuously across the lower levels and finally amounts to 11% and 12.9% respectively at department head level.
At first glance, this result may not come as a great surprise. Nevertheless, it demonstrates the essential merits of the underlying evaluations, emphasizes Sabrina Müsel, Senior Manager hkp/// group:
The survey results provide transparent insights into the typical set-up of various functional areas in companies from the manufacturing sector. Furthermore, it is possible to analyze these and comparable questions for different industries and business models.
From hkp/// group's point of view, the extensive database of the Strategic Compensation Management Survey thus forms a sound, market-based basis for decision-making scenarios with potentially major implications.
The hkp//group Strategic Compensation Management Survey not only illuminates quotas and developments in management and employee numbers, but also combines organizational data with the corresponding compensation data for non-tariff employees and company performance - a link that is unique in the market to date and is of decisive strategic importance, especially in restructuring, expansion and reduction scenarios.
The hkp/// group Workforce & Compensation Insights are based on evaluations within the framework of the hkp/// group Strategic Compensation Management Survey. This provides unique insights into compensation, workforce and organizational structures and the associated costs. The survey covers three areas that are essential for operational and strategic positioning and planning: Compensation, Performance and Organization. Learn more here.
Workforce Insights published to date:
- Part 1: Large and medium-sized German businesses: Internationalization and location of top executives
- Part 2: Top executive and non-tariff employee quotas in Germany
- Part 3: Development of employee numbers and executive headcount at major German companies
- Part 4: Organizational benchmarks - executive resources in different functional families