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.

Throughout 2017, 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.

In November 2017 we launched INSPIRE, a new global web-based, mobile-enabled recognition program. This user friendly program aims at creating a culture where expressions of thanks are common and employees feel valued for the good work they do. Since its inception, 70 percent of employees have been recognized and 32 percent have given recognition.

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. 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

WORKFORCE2013 2014 2015 2016 2017
Number of employees (approximate)76,000 70,000 68,000 68,000 69,000
WORKFORCE BY REGION
PERFORMANCE REVIEWS2013 2014 2015 2016 2017
Executives1 100% 100% 100% 100% 100%
Middle management100% 100% 100% 100% 100%
Line supervisors100% 100% 100% 100% 100%
Non-managers293% 93% 94% 95% 94%
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).
TURNOVER2013 2014 2015 2016 2017
Overall turnover rate1, 2 15.4% 18.8% 14.8% 11.1% 10.7%
Voluntary turnover rate 7.3% 8.0% 7.4% 6.3% 6.5%
Avoidable voluntary turnover rate 5.8% 6.2% 6.0% 4.8% 5.0%
Involuntary termination rate 8.1% 10.8% 7.4% 4.9% 4.2%
1. Includes all types of turnover, including restructuring.
2. 2013 and 2014 Turnover rates are restated by incorporating the retroactive transactions.
2017 TURNOVER BY REGIONAsia Pacfic Latin America EEMEA Japan EUCAN U.S.
Overall turnover rate1 18.51% 16.53% 16.93% 3.00% 11.72% 7.14%
Voluntary turnover rate 14.92% 4.51% 10.46% 2.19% 6.36% 4.67%
Avoidable voluntary turnover rate13.92% 2.53% 8.29% 1.78% 2.75% 3.01%
Involuntary termination rate 3.59% 12.01% 6.47% 0.81% 5.36% 2.48%
1. Includes all types of turnover, including restructuring.
2017 TURNOVER BY GENDER & REGIONFemale Male
Overall48% 52%
Asia Pacific47% 53%
EEMEA (Eastern Europe, Middle East and Africa)61% 39%
Latin America45% 55%
EUCAN (Europe and Canada)51% 49%
Japan31% 69%
U.S.47% 53%
Employee Hires by Region2015 2016 2017
Asia Pacific
          Number of hires2,1041,7321,909
          Hire rate117.70%14.79%16.14%
EEMEA (Eastern Europe, Middle East and Africa)
          Number of hires384382378
          Hire rate112.84%13.49%13.69%
Latin America
          Number of hires5093801,246
          Hire rate1,29.80%8.01%23.82%
EUCAN (Europe and Canada)
          Number of hires1,4271,6361,865
          Hire rate17.81%8.90%9.80%
Japan
          Number of hires101196109
          Hire rate12.66%5.04%2.80%
U.S.
          Number of hires1,9091,9372,173
          Hire rate18.28%8.33%9.12%
1. Percentage of new hires in the total onboard head count; regular employees only.
2. 2017 data includes merger and acquisition in Brazil and Uruguay.
Union Membership 20132014201520162017
Percentage of employees worldwide employees represented by an independent trade union or covered by a collective bargaining agreement (approximate)32% 31% 32% 29% 29%