2018 COMPENSATION PLANNING IN EUROPE

Transcription

1 2018 COMPENSATION PLANNING IN EUROPE F O R E C A S T S A N D T R E N D S TO P R E P A R E F O R T H E F U T U R E O F W O R K WEBCAST OCTOBER 30, 2018 Luca Baroldi European Rewards Practice Leader Monika Todor European Consumer Goods and Retail Industry Leader 0

2 T O D AY S S P E A K E R S L U C A B AR OLDI European Workforce Rewards Leader luca.baroldi@mercer.com M ONIKA TODOR Consumer Goods and Retail Industry European Leader monika.todor@mercer.com 1

3 A G E N D A 1 G L O B A L T A L E N T T R E N D S M A C R O T R E N D S I M PA C T I N G T H E F U T U R E O F W O R K C O M P E N S A T I O N F O R E C A S T S F I N D I N G S F R O M M E R C E R S U R V E Y R E S E A R C H 3 4 H O W C O M P A N I E S A R E R E S P O N D I N G R E W A R D S M A R K E T T R E N D S A N D P R A C T I C E S T O W AT C H A C T I O N S Y O U C A N T A K E S T R AT E G I C A R E A S Y O U C A N F O C U S O N I N A S Y O U B U I L D F O R T H E F U T U R E 2

4 G L O B A L T A L E N T T R E N D S U N L O C K I N G G R O W T H I N T H E H U M A N A G E 3

5 P R E PA R I N G F O R T H E F U T U R E O F W O R K We cannot wait until there are massive dislocations in our society to prepare for the Fourth Industrial Revolution. Robert J. Shiller 2013 Nobel laureate in economics Yale University professor 4

6 T H E S E C H A N G E S A R E R A I S I N G C R I T I C A L Q U E S T I O N S BUSINESS LEADERS How can we build for an unknown future? HR How can we attract and retain tomorrow s workforce? EMPLOYEE What does career success mean in today s world? 5

7 M E R C E R S T U D Y F I N D I N G S T O P 5 T R E N D S WORKING WITH PURPOSE PERMANENT FLEXIBILITY PLATFORM FOR TALENT DIGITAL FROM THE INSIDE OUT 6

8 C H A N G S P E E D N E E D F O R M O R E A G I L E W O R K P R A C T I C E S T O P C H AN G E S B E I N G P L AN N E D B Y T H E C - S U I T E 96% O F E X E C U T I V E S A R E P L A N N I N G S T R U C T U R A L C H A N G E S T H I S Y E A R Moving support functions to shared services Eliminating certain roles/ functions/ departments Increasing regional control Building internal / external networked communities Flattening organizational structures 7

9 C H A N G S P E E D N E E D F O R M O R E A G I L E W O R K P R A C T I C E S T O P C H AN G E S B E I N G P L AN N E D B Y T H E C - S U I T E 96% 1 Moving support functions to shared services I M P L I C A T I O N S F O R R E W A R D S O F E X E C U T I V E S A R E P L A N N I N G S T R U C T U R A L C H A N G E S T H I S Y E A R Eliminating certain roles/ functions/ departments Increasing regional control Building internal / external networked communities Flattening organizational structures Focus on enhancing AGILITY in reward systems Assess effectiveness of Rewards FUNCTION 8

10 I N G W I T H P U R P O S E I S T I C V I E W O F T H E V A L U E P R O P O S I T I O N T H R I V I N G E M P L O Y E E S A R E 3x M O R E L I K E L Y T O W O R K F O R A C O M P A N Y W I T H A S T R O N G S E N S E O F P U R P O S E W O R K I N G W I T H P U R P O S E C R I T I C A L T O T H E VA L U E P R O P O S I T I O N AFFINITY PRIDE PURPOSE CAREER & WELL-BEING O N L Y 13 13% % O F C O M P A N I E S H A V E A N E V P D I F F E R E N T I A T E D B Y A P U R P O S E D R I V E N M I S S I O N COMPENSATION & BENEFITS CULTURAL ALIGNMENT 9

11 I N G W I T H P U R P O S E I S T I C V I E W O F T H E V A L U E P R O P O S I T I O N T H R I V I N G E M P L O Y E E S A R E 3x M O R E L I K E L Y T O W O R K F O R A C O M P A N Y W I T H A S T R O N G S E N S E O F P U R P O S E W O R K I N G W I T H P U R P O S E C R I T I C A L T O T H E VA L U E P R O P O S I T I O N AFFINITY PRIDE PURPOSE CAREER & WELL-BEING O N L Y 13 13% % O F C O M P A N I E S H A V E A N E V P D I F F E R E N T I A T E D B Y A P U R P O S E D R I V E N M I S S I O N I M P L I C A T I O N S F O R R E W A R D S Ensure PURPOSE is cascaded through employee value proposition COMPENSATION & BENEFITS CULTURAL ALIGNMENT 10

12 P E R M A N E N T F L E X I B I L I T Y T H E E M P L O Y E E E X P E R I E N C E 51% O F A L L E M P L O Y E E S W A N T M O R E F L E X I B I L I T Y BUT 36% H A V E H A D A R E Q U E S T F O R F L E X T I M E T U R N E D D O W N 41% W O R R Y I T W I L L I M P A C T P R O M O T I O N A L P R O S P E C T S 11

13 P E R M A N E N T F L E X I B I L I T Y T H E E M P L O Y E E E X P E R I E N C E 51% O F A L L E M P L O Y E E S W A N T M O R E F L E X I B I L I T Y BUT 36% 41% H A V E H A D A R E Q U E S T F O R F L E X T I M E T U R N E D D O W N W O R R Y I T W I L L I M P A C T P R O M O T I O N A L P R O S P E C T S I M P L I C A T I O N S F O R R E W A R D S Integrate FLEXIBILITY as a core part of value proposition ASSESS jobs for ability to be done flexibly 12

14 P L A T F O R M F O R TA L E N T L E V E R A G I N G T H E TA L E N T E C O S Y S T E M INTERNAL TALENT PARTNERSHIP TALENT FREELANCE TALENT CROWD SOURCED TALENT USA DECK 2 O F 5 O R G A N I Z A T I O N S A R E P L A N N I N G T O B O R R O W M O R E T A L E N T I N T H E N E X T 1 2 M O N T H S CO-OPETITION 13

15 P L A T F O R M F O R TA L E N T L E V E R A G I N G T H E TA L E N T E C O S Y S T E M INTERNAL TALENT PARTNERSHIP TALENT FREELANCE TALENT CROWD SOURCED TALENT CO-OPETITION USA DECK 2 O F 5 O R G A N I Z A T I O N S A R E P L A N N I N G T O B O R R O W M O R E T A L E N T I N T H E N E X T 1 2 M O N T H S I M P L I C A T I O N S F O R R E W A R D S Expand your EVP to appeal to NON-TRADITIONAL talent models EXPERIMENT with alternative reward models to compete for talent 14

16 D I G I TA L F R O M T H E I N S I D E O U T I M P O R TA N C E O F A D I G I TA L C U LT U R E 66% OF EMPLOYE E S S A Y T H A T H A V I N G ACCESS TO STATE - OF- T H E - A R T D I GITAL TOOLS IS I M P ORTANT TO THEM 15

17 D I G I TA L F R O M T H E I N S I D E O U T I M P O R TA N C E O F A D I G I TA L C U LT U R E 66% OF EMPLOYE E S S A Y T H A T H A V I N G ACCESS TO STATE - OF- T H E - A R T D I GITAL TOOLS IS I M P ORTANT TO THEM I M P L I C A T I O N S F O R R E W A R D S Deliver best-in-class rewards experiences through DIGITAL PLATFORMS that enable employees to take quick action 16

18 C O M P E N S A T I O N F O R E C A S T S I N S I G H T S F R O M M E R C E R S U R V E Y R E S E A R C H 17

19 W O R L D E C O N O M I C O U T L O O K Global 3.8% 8.1% Europe 3.2% 3,0% 8.2% 7.9% Asia 4.8% 3.6% 4,7% 3.6% = US 2.9% 3.9% 2,7% 3.5% Africa 4.8% 9.4% 4,6% 9.4% = ME 2.2% 5.8% 4,4% 5.7% GDP Unemployment Source: Mercer s Global Compensation Planning Report, July

20 United States China India Czech Republic Germany Hungary Netherlands Poland UK Romania Denmark Sweden Portugal Latvia France Ukraine Turkey Italy 2018 E C O N O M I C I N D I C A T O R S E u r o p e a n p e r s p e c t i v e 12% 9,2% 10,7% 10,8% 10% 8% 6% 4% 3,9% 4,0% 3,5% 2,4% 3,6% 3,7% 3,8% 4,1% 4,4% 4,5% 5,5% 6,3% 7,7% 8,2% 8,9% 2% 0% Inflation GDP Unemployment Source: Mercer s Global Compensation Planning Report, July

21 T U R N O V E R R A T E S ( V O L U N TA R Y A N D T O TA L ) A D I V E R S E P I C T U R E 25% 20% 15% 10% 5% 0% PT ES IT DE FR NL DK PL CZ UA UK RO General Market - Voluntary High-Tech Voluntary 25% 20% 15% 10% 5% 0% PT IT ES DE FR NL PL CZ DK UK RO UA General Market - Total High-Tech Total Source: Mercer 2018 Total Remuneration Surveys, 2018 Mercer Comptryx Survey, August Edition MERCER

22 A N N U A L S A L A R Y I N C R E A S E P R O C E S S S O M E C H A N G E S B U T N O T I N G R A D I C A L CHANGES BEING CONSIDERED RESPONSE %YES Increasing transparency of rewards 52% Increasing pay-for-performance differentiation 43% Increasing focus on pay equity/fairness 40% Increasing the frequency of communications about rewards 39% Revising process or ratings 33% Changing frequency of performance reviews Removing the link between performance ratings and pay 23% 14% Eliminating performance ratings 13% Eliminating process altogether 7% FACTORS DETERMINING ORGANIZATION S SALARY INCREASE BUDGET % ORGS Market Practices 76% Organization s Financial Performance 76% Inflation Rates 53% Affordability 49% Overall Economic Health 48% Organization s Strategic Plan 35% Other 4% MERCER *Source: Mercer Select Intelligence 2017 Rewards Decision-Making and Communications Survey 21

23 E U R O P E S A L A R Y I N C R E A S E S Increased since 2018 No change since ,0% 10,0% ,0% 6,0% ,0% 2,0% 0,0% TR UA HU PL DE NL IT ES FR RO CZ UK DK PT Source: Mercer's Salary Movement Snapshot, Sept

24 S A L A R Y I N C R E A S E S N O M I N A L V S. R E A L C U M U L A T I V E S A L A R Y I N C R E A S E S RUSSIA ROMANIA POLAND CZECH REPUBLIC UNITED KINGDOM NOMINAL CUMULATIVE SALARY INCREASE (2009=0%) GERMANY FRANCE DENMARK 26% 25% 23% 20% 20% 33% 46% 90% REAL CUMULATIVE SALARY INCREASE (2009=0%) RUSSIA POLAND ROMANIA GERMANY CZECH REPUBLIC FRANCE DENMARK UNITED KINGDOM 8% 8% 8% 7% 5% 1% 15% 13% 23

25 I M PA C T O F M A R K E T C O N D I T I O N S O N PAY D E C I S I O N S TURKEY ROMANIA Increased inflation Changes in taxation 15% 2018 median salary increase % 60% Increased salaries 20% Prevalence of additional midyear increase 20% Salary increase % 6% Considering pay in hard currency 38% Temporary fixed allowance Source: September 2018 spot polls, Turkey and Romania 24

26 E U R O P E T R S S U R V E Y S O V E R V I E W # OF ORGANIZATIONS 10, % Change since 2015 NUMBER OF MERCER JOB LIBRARY CODES USED highest lowest United Kingdom (2213) Moldova (38) LARGEST MARKETS BY INCUMBENT 1. Germany 319,914 in 655 Orgs (498 in 2015) 32% 2. United Kingdom 267,943 in 608 Orgs (508 in 2015) 20% 3. Poland 200,718 in 501 Orgs (386 in 2015) 30% 4. Russia 176,665 in 342 Orgs (299 in 2015) 14% 5. Italy 142,960 in 528 Orgs (346 in 2015) 53% Source: 2018 TRS Surveys (based on 27 published surveys) 25

27 R E M U N E R A T I O N M I X E X E C U T I V E L E V E L E X E C U T I V E S W E S T E R N E U R O P E E X E C U T I V E S E AS T E R N E U R O P E DE 61,0% 0,2% 23,1% 6,5% 9,2% RU 67,5% 0,4% 13,9% 7,3% 10,9% UK 63,9% 0,2% 13,1% 12,0% 10,8% RO 68,8% 5,4% 12,3% 3,6% 9,9% FR 66,5% 0,4% 16,0% 4,6% 12,5% HU 71,0% 0,4% 11,8% 4,4% 12,4% NL 68,8% 0,7% 10,6% 9,0% 10,9% CZ 72,9% 0,4% 14,1% 7,4% 5,2% IT 69,0% 0,9% 13,6% 6,2% 10,3% PL 73,3% 0,2% 15,4% 5,0% 6,1% DK 72,1% 1,2% 9,7% 6,4% 10,6% LV 82,9% 0,9% 10,5% 0,9% 4,8% Base Salary Variable Bonus and Commission Benefits Guaranteed Allowances Long-term Incentives Source: Mercer 2018 Total Remuneration Surveys 26

28 R E M U N E R A T I O N M I X P R O F E S S I O N A L S P R O F E S S I O N AL S W E S T E R N E U R O P E P R O F E S S I O N AL S E AS T E R N E U R O P E FR 79,2% 1,7% 9,1% 9,8% RO 73,6% 11,2% 6,4% 8,7% NL 80,9% 2,1% 3,8% 12,0% RU 81,0% 1,2% 7,8% 10,0% UK 84,2% 0,5% 4,8% 10,2% HU 82,5% 2,0% 4,4% 11,1% DK 87,2% 1,4% 3,4% 7,9% LV 85,0% 2,6% 7,8% 4,3% IT 87,9% 2,5% 4,0% 5,5% PL 86,2% 0,6% 7,6% 5,6% DE 91,0% 1,0% 4,8% 3,1% CZ 86,8% 1,2% 6,8% 5,2% Base Salary Variable Bonus and Commission Benefits Guaranteed Allowances Long-term Incentives Source: Mercer 2018 Total Remuneration Surveys 27

29 STI as a Percentage of Base Salary % 44,1% 31,1% 19,1% 17,5% 15,8% 15,4% 22,6% 24,2% 21,3% 25,0% 20,4% 19,8% 18,1% 19,3% 22,6% 24,6% 21,8% 23,4% 20,2% 30,0% 21,7% 22,9% 21,4% 25,2% STI as a Percentage of Base Salary % 17,5% 16,7% 15,0% 14,0% 20,0% 20,0% 20,0% 20,0% 25,0% 25,0% 25,0% 25,0% 24,4% 25,0% 20,0% 25,0% 22,5% 25,0% 20,0% 25,0% 20,0% 22,0% 30,0% 30,0% S H O R T T E R M I N C E N T I V E S T A R G E T A N D A C T U A L E X E C U T I V E L E V E L Decreased since % 25% No change since 2017 Increased since 2017 Target % 15% % 5% 0% DK LV DE UK RU FR HU IT PL NL RO CZ 0% 10% 20% 30% 40% Actual Source: 2017 & 2018 Mercer Total Remuneration Surveys 28

30 L O N G - T E R M I N C E N T I V E S P R E VA L E N C E % ( 0 %) 5% ( - 4 %) 56 ( %) 35% ( - 6 %) S T O C K / S H A R E O P T I O N S S H A R E A P P R E C I A T I O N R I G H T S ( S A R S ) R E S T R I C T E D S H A R E S / S H A R E U N I T S P E R F O R M A N C E S H A R E S / S H A R E U N I T S 6% ( + 2 %) P E R F O R M A N C E C A S H U N I T S 21% ( + 2 %) L O N G - T E R M C A S H Source: 2015 & 2018 Mercer Total Remuneration Surveys 29

31 B E N E F I T S C H O I C E A N D F L E X I B I L I T Y A R E C R I T I C A L 58% of employees agree that they would like to reduce the value of some benefits they receive and increase the value of others. Y O U N G E R E M P L O Y E E S O V E R W H E L M I N G L Y L O O K I N G F O R M O R E B E N E F I T S F L E X I B I L I T Y 70% 59% 48% 38% yrs yrs yrs. 65+ yrs. 30

32 P E R S O N A S E M P L O Y E E S E G M E N T S W I T H U N I Q U E N E E D S A N D D E S I R E S Provides multiple dynamic lenses to evaluate programs Builds relevance into all programs to target investments Foundation for a personalized experience Employee demographics Location demographics Needs Interests Behaviours Communication preferences Sample Personas S T A R T E R S L O N G - T E R M L O Y A L S U R B A N A M B I T I O N S M A N A G E R I A L C O R E S T R I V E R S C O N T I N G E N T W O R K E R S MERCER

33 T H E P O W E R O F B E N E F I T S I M PA C T O F B E N E F I T S O N E N G A G E M E N T Employees who say: my benefits meet my needs are twice as likely to agree to these statements Impacts on how employee feels about their employer in priority order "I would recommend my employer to a friend" "I have a positive experience at work" "I am proud to work for my company" Salary Professional development Nature of your role Pensions and benefits The colleagues you work with Career opportunities Convenience of getting to work Company culture Thomsons Online Benefits: Expectations vs reality: the widening gap in global benefits MERCER

34 H O W A R E C O M P A N I E S R E S P O N D I N G? R E W A R D S T R E N D S 33

35 H O W A R E C O M PA N I E S R E S P O N D I N G? R E W A R D S T R E N D S W I T H S T A N D I N G S C R U T I N Y Pay Equity & Transparency I N N O V AT I N G I N R E W A R D S Expanding Experiential Offerings P R E P A R I N G F O R T H E F U T U R E Focusing on the Rewards Function 34

36 PAY E Q U I T Y A N D T R A N S PA R E N C Y S O C I A L & E N V I R O N M E N TA L P R E S S U R E S D R I V I N G A D D I T I O N A L S C R U T I N Y C E O P A Y R A T I O E U R O P E A N S H A R E H O L D E R R I G H T S D I R E C T I V E G E N D E R P A Y R E P O R T I N G A N D B O A R D / M A N A G E M E N T D I V E R S I T Y??? M E D I A C O V E R A G E S O C I A L D A T A E M P L O Y E E S W A N T T O K N O W M O R E 35

37 I N N O VAT I N G I N R E W A R D S E X PA N D I N G E X P E R I E N T I A L R E W A R D S Organizations are modernizing their award programs and taking a whole person approach to deliver meaningful experiences both INSIDE and OUTSIDE of work. R E C OGNITION Rewarding employees with memorable, personal and shareable experiences F I N A N C I A L Helping employees solve financial challenges, by providing support like shortterm loans and student loan assistance or refinancing C A R E E RS Digital career pathing driven by AI FAMILY Addressing needs of working parents and the sandwich generation 36

38 P R E PA R I N G F O R T H E F U T U R E D I S R U P T I O N I N T H E E N V I R O N M E N T D R I V I N G T R A N S F O R M A T I O N O F T H E R E W A R D S F U N C T I O N R E S H A P I N G O R G A N I Z A T I O N S T R U C T U R E S D I G I T A L I Z A T I O N A N D A I E M P L O Y E E S A S C O N S U M E R S G L O C A L - I Z A T I O N I M P ACT TO REWARDS FUNCTIONS Demanding AG I L I T Y in reward systems Changing C AP AB I L I T Y needs from rewards professionals Creating more F L E X I B L E & P E R S O N AL I Z E D reward solutions Ensuring G O V E R N AN C E in rewards decision making 37

39 A C T I O N S Y O U C A N T A K E A R E A S O F F O C U S F O R

40 A C T I O N S Y O U C A N TA K E F O U R C R I T I C A L A R E A S F O R F O C U S I N F O C U S O N T H E F O U N D A T I O N F I X T H E A N N U A L I N C R E A S E P R O C E S S G I V E N E W L I F E T O Y O U R E V P B U I L D F O R T H E F U T U R E Ensure foundational architecture is in place to effectively assess pay equity concerns Budget strategically Redefine pay for performance Rethink your EVP to focus beyond the contractual rewards Redefine the Rewards function to align with business changes 39

41 F O C U S O N T H E F O U N D A T I O N A PAT H T O E Q U I T Y A N D T R A N S PA R E N C Y UNDERSTAND JOBS MEASURE AND ADDRESS PAY EQUITY ORGANIZE JOBS THROUGH JOB ARCHITECTURE ENHANCE PAY TRANSPARENCY 40

42 F I X T H E A N N U A L I N C R E A S E P R O C E S S B U D G E T S T R A T E G I C A L LY W H A T S H A P P E N I N G T O D A Y Setting budgets based on overall market movement W H A T S H O U L D B E H A P P E N I N G Strategic planning process for longterm multi-million dollar investment 41

43 F I X T H E A N N U A L I N C R E A S E P R O C E S S R E D E F I N E PAY F O R P E R F O R M A N C E ANNUAL PAY INCREASE PAY FOR PERFORMANCE MARKET COMPETITIVENESS CAREER GROWTH PAY EQUITY INCENTIVE PAY RECOGNITION 42

44 G I V E N E W L I F E T O Y O U R E V P T R A N S F O R M T H E R E W A R D S J O U R N E Y T O D E L I V E R B E T T E R E X P E R I E N C E S E M P L O Y M E N T O F F E R O N B O A R D I N G / E N R O L L M E N T P E R F O R M A N C E M A N A G E M E N T C A R E E R M A N A G E M E N T Mom, I got the job! Everything is in one place and easy to understand! I understand my goals and how I contribute to our success I m doing really meaningful work and excited to advance my career! 43

45 B U I L D F O R T H E F U T U R E R E D E S I G N R E W A R D S F U N C T I O N T O A L I G N W I T H B U S I N E S S N E E D S G O V E R N A N C E How will we distribute decision making responsibility and manage risks through authority and accountability checks? S T R U C T U R E P E O P L E T E C H N O L O G Y P R O G R A M S & P O L I C Y S E R V I C E D E L I V E R Y What activities are done in the Rewards function, versus through technology, partnership with other functions, or automation? 44

46 Q & A A N D C O N TA C T D E TA I L S We will do our best to answer as many questions as we have time for. Please type your questions in the Q&A section of the toolbar. To submit a question while in full screen mode, use the Q&A button on the floating panel, at the top of your screen. L U C A B AR OLDI European Workforce Rewards Leader luca.baroldi@mercer.com M O N I K A TO D O R Consumer Goods and Retail Industry European Leader monika.todor@mercer.com YOUR FEEDBACK IS VALUED At the end of the session, a feedback form will pop up in a new window. Please fill it out so we can continue to improve. 45

47 A P P E N D I X 46

48 S A L A R Y I N C R E A S E S A C T U A L Financial Services Consumer Goods Energy High Tech Life Sciences Services (Non- Financial) Transportation Equipment Denmark 2.5% 2.5% 2.7% 2.4% 2.5% 2.6%* 2.3%* France 2.0% 2.2% 2.0% 2.3% 2.4% 2.3% 2.3% Germany 2.6% 2.6% 2.6% 2.9% 2.8% 2.8% 2.8% Italy 2.3% 1.6% 2.1% 2.1% 2.5% 2.3%* 2.3% Netherlands 2.5% 2.5% 2.6% 2.7% 2.6% 2.3%* 2.5% Spain 1.9% 2.0% 2.0% 2.2% 2.4% 2.1%* 1.8% Sweden 2.2% 2.5% 2.0% 2.6% 2.6% - 2.7%* Switzerland 1.9% 1.6% 1.0% 1.9% 1.9% - 1.6%* UK 2.2% 2.8% 2.9% 2.9% 2.9% 2.8% 2.9% Czech Rep 2.9%* 3.0% 2.6% 3.1% 3.0% - 3.0% Hungary - 3.5% 5.2%* 3.5% 3.4% - 3.5% Poland 3.1% 3.3% 3.2% 3.5% 3.2% 4.5%* 5.6%* Romania 4.5%* 4.1% 6.0%* 4.8% 4.6% - - Russia 5.8%* % 7.6% 7.4% 7.5% 6.5% Turkey 9.1% % 8.8% 10.0% 12.0% 12.0% Table presents Median values. Averages are marked with an asterix 47

49 S A L A R Y I N C R E A S E S 2019 F O R E C A S T Financial Services Consumer Goods Energy High Tech Life Sciences Services (Non- Financial) Transportation Equipment Denmark 2.5% 2.5% 2.5% 2.8% 2.5% - 2.2%* France 2.3% 2.3% 2.0% 2.5% 2.5% 2.5% 2.0% Germany 2.7% 2.8% 2.5% 3.0% 2.8% 2.9% 2.5% Italy 2.3% 2.5% 2.7% 2.5% 2.5% - 2.3% Netherlands 2.5% 2.5% 2.6% 3.0% 2.7% - 2.4%* Spain 2.1% 2.2% 2.3% 2.5% 2.5% - 1.8% Sweden 2.4% 2.5% 2.0% 2.7% 2.6% - 2.5%* Switzerland 1.9% 1.7% 1.0% 2.0% 1.9% - 1.8% UK 2.5% 2.8% 2.7% 3.0% 2.9% % Czech Rep 3.4% 3.0% - 3.2% 3.0% - 3.0% Hungary - 3.8% - 3.7% 3.5% - - Poland 3.6%* 3.4% 3.1% 3.5% 3.2% 4.5%* 4.0% Romania 3.5%* 4.5% 4.7%* 4.8% 4.5% - - Russia 6.0%* 6.0% 7.0% 8.0% 7.2% 7.8% 6.1% Turkey 10.3% 12.0% 12.0% 9.5% 11.5% 11.0%* 13.0% Table presents Median values. Averages are marked with an asterix 48

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