Compensation Market Data in the Wine Grape Industry. Steve Treder Western Management Group
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1 Compensation Market Data in the Wine Grape Industry Steve Treder Western Management Group
2 Market data: Why it matters Attracting, retaining, and motivating talent isn t only about pay But it sure has a lot to do with pay Paying too much is a problem, and paying too little is a problem But: Measuring labor markets is easier said than done 2
3 Gathering market data The problem: employers need to know how the market values labor But: employers sharing pay information directly between themselves is both impractical and illegal 3
4 An important legality U.S. Salary Survey Safe Harbor Guidelines Third party Aggregate data Historical data 4
5 An independent third party Western Management Group A survey house In operation since 1972 HQ: Los Gatos, California Conduct multiple surveys in many industries and many countries Including the wine/grape industry 5
6 Two Wine/Grape Industry surveys The WMG Wine Industry Comp. Survey 250+ jobs, 15 data elements The WBM/WMG Winery Survey 6 jobs, 2 data elements Winemaker Vineyard Manager Tasting Room Manager Wine Club Manager Sales Manager Office Manager 6
7 Overview of survey results Multiple variables, multiple looks Most important statistic: sample size Transparency of data sources 7
8 Winemaker Winemaker - Base Pay WA National Avg Source: 2016 WBM/WMG Winery Survey 8
9 Vineyard Manager: Base pay Vineyard Mgr - Base Pay WA National Avg Source: 2016 WBM/WMG Winery Survey 9
10 Vineyard Manager: Bonus pay Vineyard Mgr - Bonus Pay WA National Avg Source: 2016 WBM/WMG Winery Survey 10
11 Vineyard jobs Job Median Total Cash Vineyard Worker 1 $26,520 Vineyard Worker 2 $29,210 Vineyard Worker 3 $34,597 Vineyard Worker Lead $38,028 Tractor Driver 1 $33,674 Tractor Driver 2 $34,515 Irrigator 2 $32,401 Source: 2016 WMG Wine Industry Compensation Survey, all geographies 11
12 Viticulture job family Job Median Total Cash Viticulturist Technician 1 $40,200 Viticulturist Technician 2 $42,640 Viticulturist 2 $56,100 Viticulturist 3 $82,500 Source: 2016 WMG Wine Industry Compensation Survey, all geographies 12
13 Vineyard management jobs Job Median Total Cash Vineyard Supervisor/Foreman $55,658 Vineyard Manager $99,417 Vineyard Director $141,749 Source: 2016 WMG Wine Industry Compensation Survey, all geographies 13
14 Administrative jobs Job Median Total Cash Government Compliance Analyst 1 $51,436 Government Compliance Analyst 2 $64,633 Government Compliance Analyst 3 $84,711 Government Compliance Manager $100,411 Source: 2016 WMG Wine Industry Compensation Survey, all geographies 14
15 Data analysis tips: Labor markets Business competitors vs. labor competitors The cost of living vs. the cost of labor The dynamics of supply and demand 15
16 Data analysis tips: Surveys Complete transparency is non-negotiable What employers are in the survey? When was the data effective? What is the geographic composition of the data? Who conducted the survey? How was the data validated/edited? 16
17 Data analysis tips: Job matching The three most important steps in compensation survey data analysis: Job matching Job matching Job matching Do not match on job title alone The rule of thumb Blended or hybrid jobs 17
18 Data analysis tips: Statistics The three most important principles of statistical analysis are: Sample size Sample size Sample size Data volatility The elusive balance between size, relevance, and practicality Average(s) and data dispersion 18
19 Data analysis tips: Compensation Base pay vs. Bonus vs. Total Cash The crucial importance of geography To age or not age the data? Why aging is a good idea Why aging is a bad idea 19
20 Data analysis tips: Communication The Open Book school vs. the Trust Me school The correct answer is, of course: it depends 20
21 Market data: Why it matters Attracting, retaining, and motivating talent involves more than pay but pay is extremely important Paying too much is a problem, and paying too little is a problem Solving this problem is not easy, it s hard The hidden cost of ignorance The competitive advantage of intelligence 21
22 Questions? Comments? Steve Treder Senior Vice President Western Management Group ext
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