Our company recognizes that our people are critical to our mission of improving and saving lives around the world.
One way in which we recognize the importance of our people is to provide a valuable suite of compensation and benefit programs as well as resources to support our employees’ professional achievement and personal well-being. Together, we call these “Total Rewards.”
Total Rewards include compensation and financial rewards, health and insurance benefits, opportunities for employees to develop their skills and grow their careers, and programs that help meet the demands of managing employees’ professional and personal well-being. Our philosophy behind these programs is rooted in maintaining our competitive position in the market while providing a comprehensive and valuable package of rewards that supports our business, recognizes individuals and aligns employees with the future needs of our company.
In 2015 in the U.S., we launched myTotalRewards, an online personalized resource that provides U.S. employees with a simple, consolidated view of his/her total compensation and financial rewards at our company. For most active employees (certain groups are excluded, such as those that are subject to collective bargaining) myTotalRewards contains the following detailed information:
- Money: Annual pay, cash incentives and our company’s estimated contribution to pension, 401k, insurance, and other benefits
- Health: The value of the key health benefits in which you participate including medical, dental, and vision coverage
- Retirement & Long-Term Incentives: Retirement benefits and long-term incentives–and how they’ve grown over time
- Other Rewards: Other benefits available such as educational assistance, college coach, and financial planning
As of April 2016, over 80 percent of eligible managers and 55 percent of eligible employees had already accessed their myTotalRewards statements.
For employees subject to collective bargaining obligations within and outside of the U.S., we comply with any and all applicable contractual and legal obligations in providing information to employees.
Our compensation programs are designed using a pay-for-performance approach and recognize and reward employees for their accomplishments and the value they bring to the company. The programs target different aspects of individual and company performance and are monitored to ensure that they are competitive with those of other companies—and appropriate to the markets in which we compete for talent.
- Competitive Base Pay: Individual base pay based on job, market-aligned pay range, experience, skill level and individual performance
- Short-Term Incentives: Cash award programs to reward employees on the basis of company and/or individual performance versus objectives
- Long-Term Incentives: A future-oriented program that rewards the demonstration of individual performance, leadership and potential (based on sustained performance) through stock-based incentives
- Recognition Awards: Programs designed to recognize employee service milestones and reward the outstanding contributions of individuals and teams
Our company’s health and wellness, retirement, and insurance programs draw from best practices to ensure quality, competitive value, protection from significant financial hardship, and access to tools and resources to support employees and their family members at all stages of their career.
In the U.S., we generally offer health, life, disability and business travel insurance, and retirement income benefits to all employees, including part-time employees. Employees also can opt to contribute to tax-free Flexible Spending Accounts for reimbursement for certain health spending and/or dependent-care costs.
Outside the U.S., while benefits may vary by region and country, we offer health insurance, life and injury insurance, disability insurance, retirement income benefits and insurance for business travel. In addition, in many countries where legally permitted, including the U.S., we extend health care and various insurance benefits to employees’ domestic partners and their partners’ eligible dependent children.
Worldwide, our company offers retirement benefits that are competitive with those of our peers and the general industry in each market we serve. In the U.S., for example, we offer a defined benefit pension plan, as well as a 401(k) plan with company matching contributions. To assist in personal investment decision making, we offer all U.S. employees the Ernst & Young Financial Planning Program at no cost. And U.S.-based employees who are at least age 55 and have at least 10 years of service as of age 40 (for certain employees, service before age 40 also counts) are eligible for subsidized medical benefits at retirement. Outside the U.S., we have more than 80 pension plans (including defined benefit, cash balance and defined contribution plans) in over 40 countries. These plans often supplement government-sponsored Social Security pension benefits to improve employees’ financial security through added retirement income.
For employees who are traveling between sites or otherwise traveling on company business, we offer business travel accident insurance, a global medical benefits abroad policy and emergency travel assistance.
Other Benefits and Services
Offering on-site services that support an inviting work environment where employees can thrive is another component of our company’s Total Rewards proposition.
At the majority of company sites, including the company headquarters in Kenilworth, N.J., USA, employees have the option of making an appointment to see a health care professional on site—and usually on the day they need to—for such services as immunizations, biometric screenings and treatment for minor aches and pains. The vast majority of sites globally are tobacco-free and many encourage healthy behaviors by having on-site fitness centers, walking trails and well-lit stairways.
At many of our sites, we also offer services such as cafeterias, child care, dry cleaning, automobile services and other amenities. In the U.S., our employees have the option of banking through our company’s Employees Federal Credit Union, which offers competitive interest rates on savings accounts and lending.
For those who need flexibility, our company offers a global Flexible Work Arrangement policy that allows employees to work remotely or on a different work schedule that best fits their needs.