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EngageTalent,ImproveProductivity,Hewitt2010CPRDSResultsSharing|Sept.21th2010,OverviewofHewittRCentralprobablyforanother10-15years,Sustainabilityofgrowthinfuturemuchdependsonimprovementinproductiveefficiency,thatis,technologicalinnovation,AllocativeEfficiency-productionfactorsmovefromlowproductivity-lowvaluesectorstohighproductivity-highvaluesectors;pricemustberight;ProductiveEfficiency-Increaseinproductivitythroughtechnologicalinnovation;incentiveforinnovationmustberight.,DataSource:ProfessorWeiyingZhang,PekingUniversity,ChinaBeatingJapanintermofShareofTotalGlobalR2)RMostcommonsubstitutesofsocialsecuritiesare:commercialinsurancemedical,cashallowance,etc.,DataSource:HewittChinaRMostcompanieshaveonlyResultsKPIsandBehaviorsKPIs,andthetypicalweightingisabout70%and30%or75%and25%.AndifthecompanyhaveOtherKPIs,usuallytheyarerelatedto360degreeevaluationorcooperationevaluationorglobalperformanceManagementKPIstypicallyincludebudgetcontrol,projectprogress,compliance,competencyNon-managementKPIsmainlyincludenumberofcompound,deliveryefficiency,quality,sciencecompetency,DataSource:HewittCPRDS2010OverallFindings,AboutKPI-HewittPOV,KeyResultAreasPerformanceGoalsthattheemployeeisexpectedtoachieveIndividualtargetsthatsupporttheorganizations/Units/TeamgoalsRoleResponsibilitiesResponsibilitieswhichareintegraltoanemployeesjobListedintheemployeesJobDescriptionCompetenciesSkillsandabilitiesdescribedinbehavioraltermsthatareobservableandmeasurableCriticaltosuccessfulindividualorcompanyperformanceCompetenciesarelistedbrieflyintheJobDescriptionE.g.,DevelopingPeople,PurposeofEachTypeofKPIs-HewittPOV,PerformanceReviewandCommunication,Over50%companiesconductperformancerevieweveryhalfyear.Andabout40%willconductitannually100%respondentsreportedtohaveformalperformanceconversationswithemployeesDuringsuchconversations,typicallyKPIgoals,KPIratingandsalaryadjustmentareconveyed.Astoothers,mainlyrefertocareerdevelopment,competencyreviewandactionplanAmongthosecommunicatingKPIratings,50%willcommunicateKPIscoresatthesametime,DataSource:HewittCPRDS2010OverallFindings,KPIRating,Mostcompanieshave5or6andmoreperformanceratingAndabout40%participantsuseforcedrankingtoensuretheperformancerating;while61%reporttohaveasuggesteddistribution(recommendadistributionbutdonotstrictlyenforceitbyadjustingratings;usedasabarometer)Amongthosewith5performanceratings,frombadtogood,thetypicaldistributionisabout10%forlevel1,20%25%forlevel2,60%70%forlevel3,10%15%forlevel4and5%forlevel5.Currently,mostcompaniesreporttoappraiseemployeeperformancebasedonprojectprogressnotjustthefinalresults.Hencetherewillnoobviousinfluenceonemployeeperformancewhentheirprojectsarecancelledorsuspendedbecauseofbusinessdecision,DataSource:HewittCPRDS2010OverallFindings,CharacteristicsofDifferentRatingScales,3-PointScaleSimpleLesslabelingofemployeesLessdifferentiationamongemployeesCentralTendencyWiderangeofemployeesfallinthemiddlecategoryBeinginthemiddlecanbede-motivatingMoremanagercontext/feedbackneeded,4-PointScaleEliminatesamiddlescoreForcesmanagerstoplaceemployeesinabove-orbelow-averageratingDiminishesemployeeperceptionofbeingaverage,5-PointScaleHighperformancedifferentiationHelpswithclassificationofemployeesforpay,promotion,etc.CentralTendencyDifficulttogetrightandensuremanagerconsistency,HighPerformance(Someemployees),StrongPerformance(Manyemployees),InconsistentPerformance(Fewemployees),Madeabreakawaycontribution;Deliveredtheresultsneeded,andmore,andlivedourcorevalues;ORExemplarydemonstrationofcorevalueswhiledeliveringtheresultsneeded,Madeasolidcontribution;Deliveredresultsneededandlivedourcorevalues;ORExemplarydemonstrationofcorevaluesbutdeliveredpartialresults,Showedpotentialtocontributemore;Deliveredpartialresultsandlivedourcorevalues;ORDidnotdemonstrateourcorevalueseventhoughdeliveredresultsneeded,Didnotdeliverresultsneeded;ORDidnotdemonstrateourcorevalueseventhoughdeliveredpartialresults,Assumesallaimhighreachtargets,NeedtoImprovePerformanceNow,TheperformanceofemployeesineachratingcategorywillbeclearlydifferentiatedThecharacteristicsofemployeesincategoryisasfollows:,HewittsPOV:AchievementofObjectives/Targets,PerformanceResultsApplication,Performanceresultsmainlystronglydrivevariablebonusandmeritincrease,andinfluencepromotionandTItseemsthatmorecompanieswouldliketouseteamperformanceplanandprojectbasedincentiveplaninsteadofcomprehensiveincentiveplan.,DataSource:HewittCPRDS2009-2010OverallFindings,ComprehensiveIncentivePlanMarketPractices,Comprehensiveperformanceplansaredeterminedbyadefinedevaluationformulawherethecompany,team,andindividualsperformancesareweightedandspecified.IndividualPerformanceisthemainfactorforperformanceevaluation.Intermsoftargetbonuspayout,thehigherthepositionlevel,thehigherthepercentageofbasesalaryorguaranteedpay.Typicallytargetbonuspayoutsarebasedonbasesalary.,DataSource:Hewitt2010PharmaAssociationMini-surveyFindings,ProjectBasedIncentiveMarketPractices,DataSource:HewittChinaRStrongerintentionstoremainwiththeircompanies;Lessnegativeandstressfulspilloverfromjobtohome;Lessnegativespilloverfromhometojob;andGreatthingstosayaboutthesupportfromtheorganization,Work-LifeStrategyreferstowhatanemployerdoestoenableanemployeetomanagehis/herworkresponsibilitiesalongsidepersonalandfamilyneeds.Itisabusinessstrategythatcontributestomaximizingemployeeproductivityatworkandhelpstomakeorganizationsmorecompetitive.,CaseSharing-UBSSeniorLeadershipCommitment,Organizationmakesitclearthatitsupportswork-lifebalance.ManagementreiteratesthisintheirmessagesatstaffeventsandinstaffcommunicationsCompanyHomePagecarriesstoriesandarticlesfromtimetotimewheresuchmessagesarereinforcedKeypointinyearendmessagefromCEOSeniorLeadershipensurepolicyisformulatedwithclearguidelinesonconsiderationsandprocessbywhicheachrequestforFlexibleWorkingArrangementswillbehandled.HRClientRelationshipManagersconductedone-to-onemeetingstoequiplinemanagersofthepolicydetailsandaddressanyconcernsthattheymayhave.,ObtainandSolidifySeniorLeadershipCommitment,LinefromUBSemployeehandbook:TheultimatesuccessofUBSliesinourpeople.Werecognizethatourpeopleareabletogivetheirbestwhentheyareabletobalancethevariousaspectsoftheirlives.Asacaringemployer,wearecommittedtoprovidingandenvironmentinwhichouremployeescanexcel,bygivingthemsupportandassistancetomeetthediverseneedsintheirpersonalandprofessionallives.,“Asacaringemployer,wearecommittedtoprovidinganenvironmentinwhichouremployeescanexcel,bygivingthemsupportandassistancetomeettheirpersonalandprofessionallives.ButthisisnotjustaboutgivingtoouremployeesthroughourCommunityAffairsinitiatives,wearealsooffering(ouremployees)theopportunitytopartnerthefirmtogivesomethingbacktothecommunity”Work-LifeStrategycoversvariousaspectsofemployeeslife:HealthandWell-beingCelebrationoflifemomentouseventsFamiliesandParentsFlexibleWorklifeUpgradingandDevelopmentGivingbacktoothers(community),CaseSharing-UBSStrongAlignment,RuthlesslyAlignyourPeoplePracticestosupport,UBSCoreValuesClientFocus,Partnership,EntrepreneurialLeadership,CorporateResponsibilityDiversity,CaseSharing-UBSStrongAlignment(Cont.),Highlightsofwork-lifepracticesinvariousaspectsHealthandWell-beingComprehensivemedicaloutpatientandhospitalizationcoverage;criticalillnesscoverageSportingevents;exerciseprograms;healthandlifestyletalks;weeklyfreshfruitsNursingRoomfornursingmothersEmployeeAssistanceProgram(EAP):ananonymouscounselingandassistanceservicewhichemployeesandtheirimmediatefamilymemberscanavailthemselvesforanyissuesincludingpersonal,relationship,legal,financialetc.CelebrationoflifemomentouseventsMarriage/NewborngiftandleaveFamiliesandParentsMaternity/Paternity/Adoption/FamilyCare/ChildCareleaveParentsMedicalandeldercareexpensereimbursementFamilyEvents,RuthlesslyAlignyourPeoplePracticestosupport,CaseSharing-UBSStrongAlignment(Cont.),Highlightsofwork-lifepracticesinvariousaspects(contd)FlexibleWorklifeFlexi-time:FlexibilitytovarystartandendtimesPart-time:FormotherswhohavegivenbirthandwanttoreturntoworkforceeventuallyOccasional:Asandwhenforemployeestorequestfortime-offonadhocbasisHybrid:WorkonspecificfixeddaysinaweekPermanentHomeworking:Workingfromhomefull-timeUpgradingandDevelopmentFinancialSupportforjob-related,externalprogramsrelevanttoroleTuitionassistanceprogramforexternaleducationprogramsLanguageprogramsExaminationandStudyLeaveGivingbacktoothers(community)SocialandSpecialEventsDonate-As-You-EarnProgramtogivemonthlyfinancialcontributionstoCharityPartnersCommunityServiceLeave(2days),RuthlesslyAlignyourPeoplePracticestosupport,EngageEmployeeThroughOpportunitiesCareerOpportunitiesLearningandDevelopment,Trainingpreferflexibleworkinghourandindependentwork,25-30,30-35,35-40,40+,CaseStudy:ABCCompanyProvideDifferentIncentivePlantoEnsureTalentSupplyPipeline,CompetitivePay:ProvidehighestpaytoexcellentfreshgraduatesTraining:Providebroadtrainingplantoimprovepersonaldevelopment.Effectiveness:Attracttop10talents,tobuildasolidfoundationofRpaycanbedefinedtorefertobothfixedandvariablepayBenefitsemployeesperceptionsoftheadequacyofthecompanysbenefitsplan,includingvalueandeaseofuseRecognitionemployeesperceptionsoftheacknowledgementandfavorablenoticestheyreceivefromothersfortheircontributionsandaccomplishmentsintheirwork,TodaysContent,OverallMarketUpdatePharmaIndustryandR&DSectorOverviewEngageEmployeetoImproveProductivityBasedonHewittEngagementModelAppendixEngagementDriverDefinitionAboutHewitt,Weareoneoftheworldsforemostprovidersofhumanresourcesoutsourcingandconsultingservices,helpingcompaniesfromvirtuallyeveryindustryandeveryregioninChinaandaroundtheworldgenerategreatervaluefromtheirhumancapitalinvestmentbyaddressingtheirpeople,workforceandoperationalHRissuesandchallenges.Weserveover2,800clientsinChinarepresentingChinasleadingorganizationsandinstitutionsandmorethanhalfoftheFORTUNE500.Ourassociatespartnerwithourclientstohelpgrowtheirbusinessbyhelpingthemdiscoverandunlocknewsourcesofvalueintheirtalentandthefunctionsthatservethem.Welistencarefully,challengerobustly,collaborateintenselyandbringtherightcombinationofexperienceandexpertisetodeliverourclientsdesiredresults.Wetakegreatprideinourlong-termclientpartnershipsandenviabletrackrecord.OurclientsrelyonHewittsglobalnetwork,innovativedata-drivensolutions,provenmethodologiesandimplementationknow-howtoaddresstheirtoughesthumancapitalchallengesandtobeconfidenttheirpeoplecandeliverontheorganizationsstrategyandgoals.SmartcompaniesaroundtheworldhaveturnedtoHewittformorethan65yearsandwithinChinaforoveradecade-becauseweprovidesolutionsthatrecognizetheiruniqueandevolvingrequirements.Today,wehaveover250employeesinChinaand23,000employeesin33countriesacrosstheglobewhounderstandthenecessityofdeliveringmeasurableresultsthathelpourclientsreachtheirbusinessobjectives.,Ourclientsworldwideunderstandthatpeoplearetheirmostimportantassetandtheycountonustomaximizetheirhumancapitalinvestment.,AtHewitt-OurBusinessisPeople,Hewitthelpscompaniesandorganizationsto,RetainkeytalentBetterdevelop,motivateandrecognizeperformanceIdentifyandgrowfutureleadersEnhanceefficiencyofrewardsprogramsImproveinternalcommunicationImplementculturaltransformationandchangemanagementBenchmarkrewardsandkeypeoplemetricsinyourindustry,AssistexpansiontonewconsumerormanufacturinglocationsProvidegloballaborandtalentenvironmentassessmentsDeveloptherightorganizationstructureandgovernancemodelSetupglobalHRprogramdelivery,EnhancetheefficiencyandeffectivenessofHREvaluateandselectemployeebenefitschemesIdentifycostsduringM&AanddivestituresEnsureareturnonyourpeopleinvestmentOutsourcepayrollandbenefitsadministration,AligntheHRstrategytofocusonbusinessresultsDevelopleadershipandworkforcegrowthstrategiesOptimizeHRprocessesandprogramsforrapidscalingEnhancesalesforceeffectivenessLinkbusinessperformanceandexecutivecompensationEffectivelyimplementM&Astrategies,AnticipatetalentshortagesImproveemployeeengagementEvaluateandquantifyliabilitiesManagethefinancialaspectsofsavingsandpensionprogramsProactivelyhandlebusinessoreconomiccycles,Hewitthelpsyoubringoutthebestinyourpeople,tobringaboutthebestinyourbusiness.,Whenwebringtogetherourexpertiseacrosstheseareas,ourclientsachievethebiggestimpactandbestresults.,Managetalentandperformanceeffectively,ActuarialBenefitsAdministrationBusinessPerformanceImprovementCompensationCorporateTransformationsEmployeeEngagementExecutiveCompensation&CorporateGovernanceGlobalExpansionHealthcare&BenefitsHREffectivenessHROutsourcingHRSkillsTraining&HewittAcademyHumanCapitalBenchmarking&AnalyticsInvestment&GovernanceLeadershipMergers&AcquisitionsRetirementSalesEffectivenessTalent&PerformanceManagement,Optimizecosts,Controlrisks,Growthebusiness,Globalize,TheHewittWayTheWayWeConsult,Youwontlikeusifyouareworriedaboutrockingtheboatwantyourconsultanttojustprovidedatawantthecheapestsolutioninthemarketwanttosimplyfollowtrendsandbestpracticedontliketofacethebrutalfacts,Youwillloveusifyou.arefocusedonmakingthingshappenwantyourconsultanttoactasapartnerwantyourconsultanttochallengeyourthinkingwantthebestthinking,notjustbestpracticewanttobreaknewgroundinpeoplepractices,ResultsbusinessresultsovertechnicalwizardryCollaborateintenselywitheachotherandourclientsClear,factbasedpointsofviewStraighttalkNojargon,insightsthatcutthroughdataclutterFriendly,accommodating,flexibleandfuntobewithThebestthinkingandmethodologyalignedtoclientneeds,Facts&Figures,WorldwideAworldleaderinconsultingandhumanresourcesoutsourcingLeaderinbenefitsadministrationOver65yearsexperienceStronglocalpresenceaswellasaninternationalnetwork:over23,000employeesin33countries90%ofourbiggestclientshaveworkedwithusforoverfiveyearsNearly3,000clientsaroundtheworldDedicatedcross-functionalteamsforeachassignmentCentresofexpertise(research,actuarial,pensionadministration,andothers),MakingtheWorldaBetterPlacetoWork,Facts&Figures,AsiaPacificHewittsregionalHRconsultingbusinessspans10countriesorregions,18offices,andover600associatesinAsiaPacificTheleadingHRconsulting&HRoutsourcingfirminboththeChinaandIndiamarketsMarketsincludeAustralia&NewZealand,GreaterChina,India,Japan,Korea,andSoutheastAsiaServicesinclude:ActuarialBenefitsAdministrationCompensationCorporateTransactions&TransformationExecutiveCompensation&CorporateGovernanceHealthcare&BenefitsHREffectivenessHROutsourcingIn

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