Positive Work Environment

Positive Work Environment

We see ourselves as a company inspired to invent. As we pursue our goal of becoming the world’s premier research-based biopharmaceutical company, we need to continuously develop our diverse and talented people. They are a clear competitive advantage for us, and their active engagement matters.

A positive, inclusive and high-performing work environment is essential in order for employees to feel welcomed and valued, and to be able to fully contribute to the business objectives of their teams. We recognize that harnessing the knowledge and insights of a globally diverse workforce requires leadership, a corporate culture of respect and full engagement, and a thoughtful and strategic approach to workplace inclusion and to employee development and well-being—physical, emotional, social and financial.

In 2016, we advanced this commitment by developing new and improved initiatives to lead us into the future to meet the challenges and opportunities before us. The following pages highlight our accomplishments, progress and commitments that promise success now and in the future.

We provide numerous opportunities for employee development and professional growth, competitive compensation and benefits, and a focus on health and safety. We leverage global diversity and inclusion to create a 21st-century workforce that is gender-balanced and inclusive of top, diverse talent.

We conduct rigorous and transparent annual performance reviews of employees at all levels (except those subject to collective bargaining obligations) to guide company decisions relating to compensation and rewards. Employee performance is measured, in part, by how well employees demonstrate our leadership behaviors. In other words, we seek to emphasize not just what an employee achieves, but also how he or she achieves it. It is critical to our company that the annual incentive bonus of management-level employees is determined, in part, by demonstrated leadership that is consistent with these behaviors.

In addition, we conduct an annual employee-development planning process in which managers discuss with each of their employees his or her strengths and development needs. The manager and employee then jointly create an action plan to strengthen areas in need of development and build new leadership skills.

Performance

Employees2012 2013 2014 2015 2016
Total number of employees (approximate)83,000 76,000 70,000 68,000 68,000
PERFORMANCE REVIEWS2012 2013 2014 2015 2016
Executives1 100% 100% 100% 100% 100%
Middle management100% 100% 100% 100% 100%
Line supervisors100% 100% 100% 100% 100%
Non-managers293% 93% 93% 94% 95%
1. "Executives" refers to the first two levels below the chief executive officer.
2. Includes all "non-managers" (previously "individual contributors") who are not subject to a collective bargaining agreement (unions).
TURNOVER2012 2013 2014 2015 2016
Overall turnover rate1, 2 11.0% 15.4% 18.8% 14.8% 11.1%
Voluntary turnover rate 6.0% 7.3% 8.0% 7.4% 6.35%
Avoidable voluntary turnover rate 1.0% 5.8% 6.2% 6.0% 4.8%
Involuntary termination rate 5.0% 8.1% 10.8% 7.4% 4.9%
1. Includes all types of turnover, including restructuring.
2. 2013 and 2014 turnover rates are restated incorporating retroactive transactions.
2016 TURNOVER BY REGIONAsia Pacfic Latin America EEMEA Japan Europe & Canada U.S.
Overall turnover rate1 18.89% 18.0% 19.2% 2.74% 8.84% 7.87%
Voluntary turnover rate 13.23% 5.28% 11.13% 1.87% 4.34% 4.54%
Avoidable voluntary turnover rate12.21% 3.12% 8.65% 1.59% 2.51% 3.29%
Involuntary termination rate 5.66% 12.72% 8.07% 0.87% 4.50% 3.33%
1. Includes all types of turnover, including restructuring.
2015 2016
EMPLOYEE HIRES BY REGION Number of Hires Hire Rate¹ Number of Hires Hire Rate¹
Emerging Markets—Asia Pacific2,104 17.70% 1,732 14.79%
Emerging Markets—EEMEA (Eastern Europe, Middle East and Africa) 384 12.84% 382 13.49%
Emerging Markets—Latin America 509 9.80% 380 8.01%
EUCAN (Europe and Canada) 1,427 7.81% 1,636 8.90%
Japan 101 2.66% 196 5.04%
U.S. 1,909 8.28% 1,937 8.33%
1. Percentage of new hires in the total onboard head count; regular employees only.