Compensation Market Data in the Wine Grape Industry Steve Treder Western Management Group
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
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
An important legality U.S. Salary Survey Safe Harbor Guidelines Third party Aggregate data Historical data 4
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
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
Overview of survey results Multiple variables, multiple looks Most important statistic: sample size Transparency of data sources 7
Winemaker Winemaker - Base Pay WA National Avg 93301 94000 92000 90000 88000 86000 86392 89441 88399 82861 86670 84000 82000 80000 78000 76000 2016 2015 2014 Source: 2016 WBM/WMG Winery Survey 8
Vineyard Manager: Base pay Vineyard Mgr - Base Pay WA National Avg 67571 68000 66000 64656 64178 63756 63853 64000 62000 60598 60000 58000 56000 2016 2015 2014 Source: 2016 WBM/WMG Winery Survey 9
Vineyard Manager: Bonus pay Vineyard Mgr - Bonus Pay WA National Avg 15567 16000 14000 12800 12550 11750 10003 12000 10000 7700 8000 6000 4000 2000 0 2016 2015 2014 Source: 2016 WBM/WMG Winery Survey 10
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
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
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
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
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
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
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 80-120 rule of thumb Blended or hybrid jobs 17
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
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
Data analysis tips: Communication The Open Book school vs. the Trust Me school The correct answer is, of course: it depends 20
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
Questions? Comments? Steve Treder Senior Vice President Western Management Group stevet@wmgnet.com 408.399.4900 ext. 225 www.wmgnet.com 22