Hewitt翰威特医药研发行业薪酬福利调查报告课件

04六月2023Hewitt翰威特医药研发行业薪酬福利调查报告OverviewofHewittR&DCenterStudyHewitt2010CPRDSParticipantList–Totaling31AstrazenecaPharmaceutical-DevelopmentPfizer(China)ResearchandDevelopmentCo.,LtdAstrazenecaPharmaceuticalInnovationCenter,ChinaRochePharmaDevelopmentCenterinChinaBasileaPharmaceuticaChinaLtd.RocheR&DCenter(China)Ltd.-ResearchBayerHealthcareCo.,Ltd.Rundo-CronovaInternationalPharmaceuticalsR&DCo,.Ltd.BiogenIdecSROIncShanghaiSanofi-AventisChinaR&DCenterCharlesRiverLaboratoriesGreatedChinaPreclinicalServicesShanghaiServier(Tianjin)PharmaceuticalCo.,Ltd.ChinaNovartisInstitutesforBioMedicalResearchCo.,Ltd.ShanghaiBoehringer-ingelheimPharmaceuticalCo.,Ltd.ChinaOtsukaPharmaceuticalCo.,Ltd.ShanghaiPharmaceuticalHoldingCo.,Ltd.CentralResearchInstituteCovancePharmaR&D(Beijing)Co.,Ltd.ShanghaiZerunBiotechnologyCo.,LtdEgretPharma(Shanghai)Ltd.ShenzhenSanofiPasteurBiologicalProductsCo.,Ltd.EliLillyTrading(Shanghai)Co.,Ltd.South-ChinaCenterforInnovativeParmaceuticalsExcelPhamaStudiesInc.SuzhouNovartisPharmaTechnologyCo.,Ltd.GlaxoSmithKline(China)InvestmentCo.,Ltd.Syngenta(China)InvestmentCo.,Ltd.HutchisonMediPharmaLtd.WuxiAppTecCo.,Ltd.Johnson&JohnsonPharmaceuticalResearch&Development.LLC.Xian-JanssenPhamaceuticalLtd.NovoNordisk(China)PharmaceuticalsCo.,Ltd.Today’sContentOverallMarketUpdatePharmaIndustryandR&DSectorOverviewEngageEmployeetoImproveProductivityBasedonHewittEngagementModelAppendixEngagementDriverDefinitionAboutHewittMarco-economicSituationintheWorldUSACanadaUKFranceGermanyItalySpainDatasources:1.InternationalMonetaryFundDatabase2.ChinaCPIfromNationalBureauofStatistics,PRC3.EconomistIntelligenceUnitAustraliaIndiaJapanSingaporeThailandUAEChinaChinaMarketMovement*Datasources:1.NationalBureauofStatistics,PRC2.HewittChinaSalaryIncreaseSurvey1995-20103.InternationalMonetaryFundDatabase4.OECDStatisticsChina’sSourceofGrowthisShiftingChinahighgrowthinthepastyearshasbeenmainlydrivenbyimprovementinallocativeefficiency,particularlyreallocationofhumancapitalRuralvs.Urban;Central&Westernvs.CoastalEasternOverseasvs.DomesticallyBeststudentstogovernmentvs.tobusinessThepotentialofallocativeefficiencyisdiminishing;probablyforanother10-15yearsSustainabilityofgrowthinfuturemuchdependsonimprovementinproductiveefficiency,thatis,technologicalinnovationAllocativeEfficiency-productionfactorsmovefromlowproductivity-lowvaluesectorstohighproductivity-highvaluesectors;pricemustberight;ProductiveEfficiency-Increaseinproductivitythroughtechnologicalinnovation;incentiveforinnovationmustberight.DataSource:ProfessorWeiyingZhang,PekingUniversityChinaBeatingJapanintermofShareofTotalGlobalR&DSpendingDataSource:Battelle,R&DMagazineTheGovernmentistheMainSourceofChinaR&DInvestmentDomestic%ofTotalGlobal%ofTotalChemicals27829.3%1749.9%Computers879.2%26014.8%Drugs13514.2%1649.3%Electrical17318.2%63436.1%Mechanical15015.8%21512.3%Others12713.4%30817.6%Total9501,755DataSource:OrganizationofEconomicCooperationandDevelopment2009BreakdownofChineseR&DInvestmentDistributionofChinesePatentsDataSource:QueenMaryUniversityofLondon，2009EmergingEconomicsDrivingGlobalR&DGrowthDataSource:R&DMagazine,Battelle,OECD,IMF,CIA,2008ScientistsandEngineers/MillionPeopleR&Das%GDPToday’sContentOverallMarketUpdatePharmaIndustryandR&DSectorOverviewEngageEmployeetoImproveProductivityBasedonHewittEngagementModelAppendixEngagementDriverDefinitionAboutHewittSlowingGlobalPharmaGrowthwithParmergingGrowthOutpacingtheRestArea2008SalesRevenue(0.1Billion)2008IncreaseRate(%)2003-2008CAGR(%)2008-2013ProjectedCAGR(%)NorthAmerica31181.45.7-1-2Europe24755.86.43-6Asia/Africa/Australia90815.313.711-14Japan7662.12.71-4LatinAmerica46512.612.711-14Global77314.86.63-6DataSource:MinistryofHealth,IMS,CITICSMarketSales(BillionUSD)IncreaseRate(%)PharmaMarketGrowthintheWorldPharmaMarketGrowthintheWorld40%AmongGlobalInnovationTop20CompaniesarefromPharmaIndustryIncreasingExpenseinPharmaR&DbutDecreasingOutputStrongneedstoimprove:1)CapitalEfficiency;2)R&DproductivityDataSource:PhRMA,2007,FDATheRoadtoPositiveR&DReturnsImproveProductivity(IncreaseROI)ScientificinnovationisnottheonlyroutetohigherR&Dproductivity.Attentiontothefamiliarmanagementareasofcost,speed,anddecisionmakingcanstillreaprewards.DataSource:MicKinseyQuarterly,Feb.,2010CostOrganizationalandProcurementIssuesMoreAggressiveoutsourceselectednoncoreactivitiestolow-costlocationsReducethecostsassociatedwithdrugfailuresbyFocusingontheactivitiestrulyreducingriskoffailureSharingriskwithothersSpeedClinicaldevelopmentplanning(goodvs.poor)PatientRecruiting(quickvs.slow)Siteandinvestigatormanagement(optimalvs.suboptimal)DecisionMakingShiftcompoundattritiontoearlierstagesChoiceofcompoundsforInvestmentAllMajorBigPharmasHaveSteppeduptheirInvestmentsinChinainthePastOneorTwoYearsQ1,2009Q2,2009Q3,2009Q4,2009Q1,2010Bayer-Scheringwillinvest100milEurotoestablishitsR&DcenterinBeijingtoenhanceitsglobalR&DcapabilityJohnson&JohnsonannouncedthattheywillbuildupitsAPACR&DcenterinShanghaitoconsolidateitsR&DcapabilityinBeijing,MumbaiandBangaloreandwillhavewidecooperationwithuniversitiesinChinaAstraZenecainvesttoestablishitsnewChinaoperationcenterandpartofitsAPACfunctioninShanghaiItsnewR&Dcenterwillstarttousein2012inShanghaiZhangJiangHigh-TechParkNovartisinvested$1BinR&DinChinaoverthenext5yearsandwillpay$125milliontobuyan85%stakeinChinesevaccinemakerZheijangTianyuanBio-PharmaceuticalRocheannouncedthatitsAsiaoperationscenterisbeingestablishedinShanghaiandthatChinawillserveasacoredevelopmentregion-atthesamelevelastheUSandGermanyPfizerPfizerEMPresidentannouncedinteresttopursueacquisitionsinChinatoaccelerategrowthPfizerexpanditsmanufacturerplantandR&DcapabilityinChinaMerckSeronoplanstoestablishitsglobalR&DcenterinBeijingandwillkeepinvestabout150milEuroforthisnewcenterNovoNordiskplanstodoubleinvestmentinChinaR&Din3yearstobethe2ndlargestglobalR&DcenterBIToinvest$240MinR&DandmanufacturinginChinaGSKShanghaiR&DcenterconsolidatedasthesoleglobalneuroscienceR&DsiteQ2,2010…Sanofi-AventisDecidedtoestablishitsAPR&DcenterinShanghaiCROBenefitsfromPharmaMovingUptheValueChainCROinChinaTodayataglace298registeredChinese-basedclinicaltrialsin2007,ayear-on-yeargrowthof41%RapiddevelopmentinbiotechcapabilityMovementtowardsgenomicsandgenetherapyIncreasingabilitytomeetwesternstandardsindrugqualityandsafetyTheChallengesThelackofenforcementofIPlawsThedifficultiesinrecruitingexperiencedtalentforprojectmanagementaswellasinretainingthemLargelyfragmentedAnoutsourceddestinationDespitetheproportionallysmallbaseof1%ofthetotalglobalCROrevenue,China’sattractivenessattributableto:-Costandtimesavings,suggestively50%-Talentpool-Patientpool-Animalresources-RapideconomicdevelopmentTheTrendsEmergenceofone-stopserviceprovider,fromdrugdiscoverytoregistrationandmarketingExpansionviamergers,acquisitionsorstrategicpartnershipswithotherdomesticpeersandinternationalplayersGrowingnumberofIPOsEstablishmentoffootholdinChinabymultinationalsDataSource:PwCReportMoreTalentDemandsfromClinicalDevelopmentwithOverallBigTargetHeadcountIncreaseDatasource:Hewitt2010CPRDSStudyFindingsTheaverageoverallheadcountIncreaseratefor2010fiscalyearisover20%Generallyspeaking,thetalentdemandfromdevelopmentfunctionsisbiggerwithaveragetargetheadcountincreaseof28%,whilethatforresearchfunctionis12%R&DEmployeeHeadcountKeepingIncreasingDatasource:Hewitt2008-2010CPRDSStudyFindingsChinaYear-on-YearEmployeeTurnoverDataSource:HewittTCMStudy2001-2010(PRC)OverallFindingsR&DTalentTurnoverKeepingHigh,Similarto2009Note:GeneralR&DincludesChemical,ConsumerGoodsNon-foodandPharma.DataSource:HewittChinaR&DStudy2007-2009OverallFindingsHewittChinaPharmaR&DStudy2009-2010FindingsForR&DCentersfocusingondevelopment,turnoverrateismuchhigher,around25%-30%Forthosefocusingonresearch,turnoverrateislower,around8%ataverageR&DTalentTurnoverReasonAnalysisTurnoverReason2010Ranking1.Limitedgrowthopportunities2.Externalinequityofcompensation3.Underutilizationofskills4.Lackofrecognition5.Worklifebalance6.Rolestagnation7.Performanceassessment8.Peoplemanagers9.Internalinequityofcompensation10.BusinessinstabilityMoreImportantLessImportantDatasource:Hewitt2010CPRDSStudyFindingsToday’sContentOverallMarketUpdatePharmaIndustryandR&DSectorOverviewEngageEmployeetoImproveProductivityBasedonHewittEngagementModelAppendixEngagementDriverDefinitionAboutHewittEmployeeEngagementcanImproveOrganizationPerformance+33%+62%Source:HewittBestEmployersinChinaSurvey-45%-67%SixCategoriesDriveEmployeeEngagementOpportunitiesCareerOpportunitiesLearningandDevelopmentWorkWorkTasksSenseofAccomplishmentResourcesWorkProcessesCompanyPracticesPeople/HRPracticesManagingPerformanceBrandAlignmentOrganizationalReputationQualityofLifeWork/LifeBalancePhysicalWorkEnvironmentTotalRewardsPayBenefitsRecognitionPeopleSeniorLeadershipManagerCoworkersPeopleFocusCustomersSayStriveStayEngagementEngageEmployeeThroughTotalRewardsPayBenefitsRecognitionExternalCompetitiveness:SalaryIncrease

ChinaNationalSalaryIncrease(excludingpromotion)DataSource:HewittTCMStudy2001-2010(PRC)OverallFindingsHigherR&DSalaryIncreaseNote:GeneralR&DincludesChemical,ConsumerGoodsNon-foodandPharma.DataSource:HewittChinaGeneralR&DStudy2007-2009OverallFindingsHewitt2009–2010CPRDSFindingsForLocal&ReturneePharmaR&DSalaryIncrease

ForLocalandReturneeDataSource:HewittChina2010CPRDSOverallFindingsPharmaR&DSalaryIncrease

ForChinaHiredForeignerDataSource:HewittChina2010CPRDSOverallFindings36%companiesdon’tdifferentiatethesalaryincreasebetweenChinahiredforeignersandLocal/Returnee.AmongthosewithdifferentsalaryincreasebudgetforChinahiredforeigners,the2010actualsalaryincreaseis5.5%ataverageand4.5%formedian.PharmaR&DPayLevelAnalysis–MarketMedianDataSource:HewittCPRDS2010OverallFindingsRMB/AnnualGP2010/20091.7%3.5%6.2%8.8%-0.6%TTC2010/20090.8%2.6%7.3%10.2%0.8%PharmaR&DPayLevelAnalysis–MarketMedianDataSource:HewittCPRDS2010OverallFindingsRMB/AnnualGP2010/20091.2%-2.9%-9.5%TTC2010/20090.8%-3.4%-9.8%CashComparisonbyEmployeeCategoryGPCHF/Local59.0%75.2%39.4%TTCCHF/Local57.0%73.5%36.2%RMB/AnnualDataSource:HewittCPRDS2010OverallFindingsCashComparisonbyR&DCategoryDataSource:HewittCPRDS2010OverallFindingsFreshGraduate

StartingSalaryAnalysisDataSource:HewittCPRDS2010OverallFindingsSupplementalBenefitsMarketPrevalenceDataSource:HewittCPRDS2009-2010OverallFindingsStill,over85%participantsprovideSupplementalMedicalandGroupInsurancetoemployeesTheprevalenceofSupplementalHousingandSupplementalPensionincreasedSupplementalBenefits

ReturneeandLocalHiredForeignerIfthereisnosocialsecuritiesprovided,what’sthesubstitutes?Morethanhalf(67%)ofcompanieswillnotprovidesocialsecuritiestoReturneeorLocalhiredforeigner;Mostcommonsubstitutesofsocialsecuritiesare:commercialinsurance–medical,cashallowance,etc.DataSource:HewittChinaR&DStudy2009–2010OverallFindingsRecognitionBestPractices

HewittPOVGetbuy-infromseniormanagementandleadershipMarkettheinitiativeInvolveemployeesintestinganddevelopingtheideaofamorerigorousapproachtorecognition.TailoryourrecognitionandrewardstotheneedsofthepeopleinvolvedTimingiscrucialDeliverrecognitionawardsinanopenandpublicwayDeliverrecognitioninapersonalandhonestmannerStriveforclear,unambiguous,andwell-communicatedconnectionbetweenaccomplishmentsandrewardsRecognizerecognitionEngageEmployeeThroughCompanyPracticesPeople/HRPracticesManagingPerformanceBrandAlignmentOrganizationalReputationHewittFrameworkonPerformanceManagementHighPerformingCultureCapabilitybuiltthroughfeedbackandlearningCommitmentbasedonmeaningfulworkandrewardsClear

ExpectationsforindividualandgroupcontributionsCommon

Understandingoftheorganization’s

prioritiesandobjectivesPerformance

PlanningCoachingand

FeedbackPerformance

ReviewRewardsKPIsSettingNearly40%participantsset5-9KPIsforemployeesandabout32%choseothers,partofwhichhaveKPIsvariedbyfunctionsorpositions;MostcompanieshaveonlyResultsKPIsandBehaviorsKPIs,andthetypicalweightingisabout70%and30%or75%and25%.AndifthecompanyhaveOtherKPIs,usuallytheyarerelatedto360degreeevaluationorcooperationevaluationorglobalperformanceManagementKPIstypicallyincludebudgetcontrol,projectprogress,compliance,competencyNon-managementKPIsmainlyincludenumberofcompound,deliveryefficiency,quality,sciencecompetencyDataSource:HewittCPRDS2010OverallFindingsAboutKPI-HewittPOV

KeyResultAreasPerformanceGoalsthattheemployeeisexpectedtoachieveIndividualtargetsthatsupporttheorganization’s/Unit’s/TeamgoalsRoleResponsibilitiesResponsibilitieswhichareintegraltoanemployeesjobListedintheemployee’sJobDescriptionCompetenciesSkillsandabilitiesdescribedinbehavioraltermsthatareobservableandmeasurableCriticaltosuccessfulindividualorcompanyperformanceCompetenciesarelistedbrieflyintheJobDescriptionE.g.,DevelopingPeoplePurposeofEachTypeofKPIs-HewittPOV

KRAsRoleResponsibilitiesCompetenciesRRarewhattheemployeeisexpectedto“do”.KeepsfocusonthepurposeofthejobEasytodefineMaybetoofundamental,toomicrototrack;PerformedanywayDifficulttomeasureKRAsarewhattheemployeeisexpectedto“deliver”Identify&emphasize“priorities”Clearlineofsightbetweenbusinessobjectives&individualgoals.MaybedifficulttocascadebroadbusinessgoalstoindividualsMaybedifficulttotrackresultstoindividualcontributionsMaybedifficulttoidentifytherightKeyPerformanceIndicatorCompetenciesarewhattheemployeeisexpectedto“display”Focuson“how”inadditionto“what”ofperformanceRaisethebaronperformance,futurefocusedandusedfordevelopmentpurposeMaynothavethechancetoobservebehavioursandcanbesubjectiveCompetenciesneedtobeverytightlydefinedPerformanceReviewandCommunicationOver50%companiesconductperformancerevieweveryhalfyear.Andabout40%willconductitannually100%respondentsreportedtohaveformalperformanceconversationswithemployeesDuringsuchconversations,typicallyKPIgoals,KPIratingandsalaryadjustmentareconveyed.Astoothers,mainlyrefertocareerdevelopment,competencyreviewandactionplanAmongthosecommunicatingKPIratings,50%willcommunicateKPIscoresatthesametimeDataSource:HewittCPRDS2010OverallFindingsKPIRatingMostcompanieshave5or6andmoreperformanceratingAndabout40%participantsuseforcedrankingtoensuretheperformancerating;while61%reporttohaveasuggesteddistribution(recommendadistributionbutdonotstrictlyenforceitbyadjustingratings;usedasabarometer)Amongthosewith5performanceratings,frombadtogood,thetypicaldistributionisabout10%forlevel1,20%~25%forlevel2,60%~70%forlevel3,10%~15%forlevel4and5%forlevel5.Currently,mostcompaniesreporttoappraiseemployeeperformancebasedonprojectprogressnotjustthefinalresults.HencetherewillnoobviousinfluenceonemployeeperformancewhentheirprojectsarecancelledorsuspendedbecauseofbusinessdecisionDataSource:HewittCPRDS2010OverallFindingsCharacteristicsofDifferentRatingScales3-PointScaleSimpleLesslabelingofemployeesLessdifferentiationamongemployeesCentralTendencyWiderangeofemployeesfallinthemiddlecategoryBeinginthemiddlecanbede-motivatingMoremanagercontext/feedbackneeded4-PointScaleEliminatesamiddlescoreForcesmanagerstoplaceemployeesinabove-orbelow-averageratingDiminishesemployeeperceptionofbeingaverage5-PointScaleHighperformancedifferentiationHelpswithclassificationofemployeesforpay,promotion,etc.CentralTendencyDifficulttogetrightandensuremanagerconsistencyHighPerformance

(Someemployees)StrongPerformance

(Manyemployees)InconsistentPerformance(Fewemployees)Madeabreakawaycontribution;Deliveredtheresultsneeded,andmore,andlivedourcorevalues;

ORExemplarydemonstrationofcorevalueswhiledeliveringthe

resultsneededMadeasolidcontribution;Deliveredresultsneededandlivedourcorevalues;

ORExemplarydemonstrationofcorevaluesbutdeliveredpartialresultsShowedpotentialtocontributemore;Deliveredpartialresultsandlivedourcorevalues;

ORDidnotdemonstrateourcorevalueseventhoughdeliveredresultsneededDidnotdeliverresultsneeded;

ORDidnotdemonstrateourcorevalueseventhoughdeliveredpartialresultsAssumesallaimhighreachtargetsNeedtoImprovePerformanceNowTheperformanceofemployeesineachratingcategorywillbeclearlydifferentiatedThecharacteristicsofemployeesincategoryisasfollows:Hewitt’sPOV:AchievementofObjectives/TargetsPerformanceResultsApplicationPerformanceresultsmainlystronglydrivevariablebonusandmeritincrease,andinfluencepromotionandT&DForthosebadperformers,companiesusuallygivethemanotheropportunityandenterPIPprogramDataSource:HewittCPRDS2010OverallFindingsAnnualPerformanceReviewDisplayofcompetencies+AchievementofKRAsAchieveofKRAsMeritIncreaseDeterminationBonus

DeterminationImpactonRewardsLinkingPerformancetoRewardsItisimportanttoestablishaclearlineofsightbetweenperformanceandrewards(meritincreaseandperformancebonus)andopportunitiestoreinforcethedesiredbehavioursandperformance.DevelopmentOpportunitiesDisplayofbehavioralcompetenciesSAMPLEPharmaR&DPayMixAnalysisDataSource:HewittCPRDS2010OverallFindingsShort-termIncentivePlanPrevalenceVariablePayTypePrevalenceIndividualPerformancePlan,ComprehensiveIncentivePlanandSpecialRecognitionAwardsarestillthemostcommonmethodsforVariableBonusPlan;Itseemsthatmorecompanieswouldliketouseteamperformanceplanandprojectbasedincentiveplaninsteadofcomprehensiveincentiveplan.DataSource:HewittCPRDS2009-2010OverallFindingsComprehensiveIncentivePlanMarketPracticesPerformanceCombinationPercentageCompanyPerformanceAverage34.7%TeamPerformanceAverage14.5%IndividualPerformanceAverage50.8%BonusPayoutCalculationFormula(Median)Prevalenceofapplyingthresholdforbonuscalculation54.5%Percentoftargetbonuspayoutatthreshold

55.0%Prevalenceofapplyingcapforbonuscalculation95.5%Percentoftargetbonuspayoutatcap175.0%Targetbonuspayoutas%ofBaseSalarybylevel(Median)TopManagement21.5%Sr.Management20.0%MiddleManagement18.0%Supervisor/SeniorProfessional17.0%Professional16.0%GeneralStaff/Technician16.0%ManualWorker17.5%Comprehensiveperformanceplansaredeterminedbyadefinedevaluationformulawherethecompany,team,andindividual’sperformancesareweightedandspecified.IndividualPerformanceisthemainfactorforperformanceevaluation.Intermsoftargetbonuspayout,thehigherthepositionlevel,thehigherthepercentageofbasesalaryorguaranteedpay.Typicallytargetbonuspayoutsarebasedonbasesalary.DataSource:Hewitt2010PharmaAssociationMini-surveyFindingsProjectBasedIncentiveMarketPracticesSTIPlanMarketPracticeSummaryProjectBasedIncentivePlan1.Projectbasedincentiveplanmainlyrecognizeindividualorteamthataccomplishspecificprojectsintermsofprojectresults,size,budget,qualityandindividualcontribution.2.Typically,theincentivewillbearound10%-25%ofemployeesbasesalary3.ThepayoutfrequencymightbeannualwhilesomecompanieswillpaythebonusaccordingtothephaseofprojectDataSource:HewittChinaR&DStudy2010OverallFindingsDirectlinkageanddirectmotivationProsPotientialConsShort-termorientedandlessattentiontolong-termworkStrengthentheatmosphereofeagerforquicksuccessandinstantbenefitwhiledamagethesenseofachievementfromR&DactivitiesInfringeproperattentiontomarketandqualityInfringeinternalcooperation,especiallycrossfunctioncooperationLimittheupgradingofR&DmanagementsystemLong-termIncentivePlanMarketPrevalenceDataSource:HewittChinaR&DStudy2009–2010OverallFindingsAspectsofPerformanceManagementtobeImprovedDataSource:HewittCPRDS2010OverallFindingsEngageEmployeeThroughQualityofLifeWork/LifeBalancePhysicalWorkEnvironmentR&DTalentHeadcountDistributionbyAgeDatasource:Hewitt2010CPRDSStudyFindingsNewGeneration’sAttitudestowardsWork–ChangingLandscapeBalance-theyshuntheworkaholiclifestylesoftheirparentsChallenge-willingtotrynewandchallengingengagementsTransient-morethan50%expecttoshiftjobswithin2yearsSelf-directed-activelyseekopportunitiestolearnandgrowoutsideofthecurrentjobUnconventional-willingtoworkpart-timeanda“portfolio”approachtoworkIndependent-notreliantonothersfordirection,theycandealwithambiguityatworkSource:AustralianGraduateSchoolofManagement,AustralianLeadershipFoundation,HumanSynergistics,AustraliaTobediscussedWork-LifeInitiatives…APartnershipforSuccessEmployershopeto:Attract,MotivateandRetainEmployeesthrough...EnhancedcompetitivenessinrecruitingRemovingbarriersforemployeestobemoreproductiveReducedcoststhroughdecreasedabsenteeismReducehealth-carecostswithreducedstressrelatedtoworkandwork-lifeconflictsImproveretentionEmployeesinturnaremorelikelytothanotherworkerstohave:Greaterengagementintheirjobs;Strongerintentionstoremainwiththeircompanies;Lessnegativeandstressfulspilloverfromjobtohome;Lessnegativespilloverfromhometojob;andGreatthingstosayaboutthesupportfromtheorganizationWork-LifeStrategyreferstowhatanemployerdoestoenableanemployeetomanagehis/herworkresponsibilitiesalongsidepersonalandfamilyneeds.Itisabusinessstrategythatcontributestomaximizingemployeeproductivityatworkandhelpstomakeorganizationsmorecompetitive.CaseSharing-UBS

SeniorLeadershipCommitment…Organizationmakesitclearthatitsupportswork-lifebalance.ManagementreiteratesthisintheirmessagesatstaffeventsandinstaffcommunicationsCompanyHomePagecarriesstoriesandarticlesfromtimetotimewheresuchmessagesarereinforcedKeypointinyearendmessagefromCEOSeniorLeadershipensurepolicyisformulatedwithclearguidelinesonconsiderationsandprocessbywhicheachrequestforFlexibleWorkingArrangementswillbehandled.HRClientRelationshipManagersconductedone-to-onemeetingstoequiplinemanagersofthepolicydetailsandaddressanyconcernsthattheymayhave.ObtainandSolidifySeniorLeadershipCommitmentLinefromUBS’employeehandbook:TheultimatesuccessofUBSliesinourpeople.Werecognizethatourpeopleareabletogivetheirbestwhentheyareabletobalancethevariousaspectsoftheirlives.Asacaringemployer,wearecommittedtoprovidingandenvironmentinwhichouremployeescanexcel,bygivingthemsupportandassistancetomeetthediverseneedsintheirpersonalandprofessionallives. “Asacaringemployer,wearecommittedtoprovidinganenvironmentinwhichouremployeescanexcel,bygivingthemsupportandassistancetomeettheirpersonalandprofessionallives...Butthisisnotjustaboutgivingtoouremployees–throughourCommunityAffairsinitiatives,wearealsooffering(ouremployees)theopportunitytopartnerthefirmtogivesomethingbacktothecommunity”Work-LifeStrategycoversvariousaspectsofemployee’slife:HealthandWell-beingCelebrationoflifemomentouseventsFamiliesandParentsFlexibleWorklifeUpgradingandDevelopmentGivingbacktoothers(community)CaseSharing-UBS

StrongAlignmentRuthlesslyAlignyour

PeoplePracticestosupportUBSCoreValuesClientFocus,Partnership,EntrepreneurialLeadership,CorporateResponsibilityDiversityCaseSharing-UBS

StrongAlignment(Cont.)Highlightsofwork-lifepracticesinvariousaspectsHealthandWell-beingComprehensivemedicaloutpatientandhospitalizationcoverage;criticalillnesscoverageSportingevents;exerciseprograms;healthandlifestyletalks;weeklyfreshfruitsNursingRoomfornursingmothersEmployeeAssistanceProgram(EAP):ananonymouscounselingandassistanceservicewhichemployeesandtheirimmediatefamilymemberscanavailthemselvesforanyissuesincludingpersonal,relationship,legal,financialetc.CelebrationoflifemomentouseventsMarriage/NewborngiftandleaveFamiliesandParentsMaternity/Paternity/Adoption/FamilyCare/ChildCareleaveParentsMedicalandeldercareexpensereimbursementFamilyEventsRuthlesslyAlignyour

PeoplePracticestosupportCaseSharing-UBS

StrongAlignment(Cont.)Highlightsofwork-lifepracticesinvariousaspects(cont’d)FlexibleWorklifeFlexi-time:Flexibilitytovarystartandendtimes