baxter final
TRANSCRIPT
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BAXTERHR Policies
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INTRODUCTION
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About Baxter
• Baxter International Inc. is an American
health care company with headquarters
in Deerfield, Illinois.
•
The company primarily focuses onproducts to treat haemophilia, kidney
disease, immune disorders and other
chronic & acute medical conditions.
•Baxter is recognized as a leadingcompany in environmental performance
and reporting, having an explicit focus
on environmental issues since 1976.
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BAXTER
Pioneer inhealthcare
Life savingproducts
Innovativescientific
capabilities
Globalscope
Manufactu-ring
strength
Sociallyresponsible
citizen
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Sustainability @ Baxter
• Baxter’s sustainability strategy is further defined by its9 priorities that focus its efforts for generating sustainable
value to its stakeholders
•Additionally, these nine sustainability priorities are dividedinto three broad categories:
• Our People
• Our Operations and Products
• Our World
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Baxter’s Sustainability Principles
Promote a Safe &Healthy Workplace
Promote an Inclusive &Diverse Workplace
Promote EthicalConduct & Legal
Compliance
Drive a SustainableSupply Chain
Drive Reductions in itsCarbon Footprint
Drive Reductions in itsNatural Resource Use
Drive Enhanced ProductStewardship
Strengthen Access toHealthcare through
Product Development &Strategic Product
Donations
Strengthen theCompany’s
Commitment toEducation, Especially
Math & Science
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Managing Sustainability
• Baxter's executive-level Sustainability Steering Committee
oversees the company’s sustainability.
• Baxter’s sustainability initiatives create business value, from
attracting and retaining key talent, engaging employees, andreducing operating expense, to ensuring market access,
developing new markets, meeting stakeholder expectations,
and enhancing Baxter's reputation.
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HR at Baxter
• Baxter provides HR professionals with opportunities in:
• Talent acquisition/staffing
• Benefits
• Compensation
• Talent management
• Organizational effectiveness/organizational development
• HR operations
• The function’s activities provide insight into the wholebusiness, applying competencies in human capital planning,
change and project leadership, coaching and consulting,
organization development, and process and technology
management
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HR Centers of Excellence at Baxter
Talent Management
• Responsible for:
• Forecasting talent needs and effectively hiring and moving talent
• Developing a high performing workforce
• Developing top leadership and senior talent
• Improving organizational effectiveness.
Global Inclusion
• This team is focused on creating an inclusive culture and adiverse workforce
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HR Centers of Excellence at Baxter
Total Compensation and HR Operations:
• Total compensation team aims to design and manage worldwide
market competitive compensation, benefits and international
assignment programs
•
Composed of compensation professionals who support each ofBaxter's businesses, functions and regions as well as the specialty
areas of worldwide sales and cash incentives, employee benefits,
executive compensation and international assignments
• HR operations group is accountable for global HR policies, program
administration, data management and transaction processes• This group is composed of technology, process and project
management professionals focused on leveraging and improving the
organization's HR processes to ensure organizational efficiency,
compliance and cost effectiveness
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RECRUITMENTS @ BAXTER
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Recruitment Process
Personnel
Planning
Job
Vacancies
Job AnalysisEmployee
Requisition
Recruitment
Planning- Numbers
- Types
Strategy
Development
- Where
- How
- When
Searching
Activation“Selling”
- Message
- Media
Applicant
Population
Applicant Pool
Potential Hires
Evaluation
& Control
SelectionScreening
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Departments at Baxter
BioLife PlasmaServices
Clinical andMedical Affairs
Communications Engineering
Finance HumanResources InformationTechnology Legal
Manufacturing Marketing QualityRegulatory
Affairs & PharmaCo-vigilance
Research andDevelopment
Sales Supply Chain
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Job Opportunities at Baxter
• Full time employment
• Development Programs
• Development programs for engineering, finance, bio-science, IT,
marketing for graduate freshers• Combines hands on experience with career mentoring and skills training
• Internships
• Jobs for Military Veterans
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Job Application Process
Detailed Job
Description Job Application
Portal
(an external
application)
Job titleBasic Job
Description
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Job
Description
Sample
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Screening• Baxter screens its candidates by accepting resumes from
interested candidates, and reverting back to the ones which
they find apt
• Short listed candidates are called for multiple rounds of
interviews (minimum being 2) depending on the complexity ofthe job
• Interview data of 120 candidates at Baxter(sourced from glassdoor.com, last updated 17 th March 2014)
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• Baxter is committed to equal opportunity for all employees, &
recognizes that every individual's unique background &
experiences contribute to a successful organization
• Discrimination in hiring, promotion & all other employmentdecisions on the basis of race, color, religion, gender, national
origin, age, disability, sexual orientation, gender identity or
expression, veteran status or any other basis protected by
federal, state or local laws is prohibited
• Employees are encouraged to raise any issues or concerns
through one of the channels outlined in Baxter’s "Prohibition
of Workplace Harassment" policy.
Hiring Strategy
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Hiring Strategy
Well distributed
gender ratio
Equalopportunities
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REMUNERATION
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Compensation & Benefits
• A critical component of Baxter's vision is to be a great place to
work and develop. Central to this commitment, Baxter
provides its employees with comprehensive compensation
and benefit programs.
• The company's global compensation philosophy is to provide
market-competitive pay & benefits while rewarding
employees for strong individual and business performance.
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Compensation & Benefits
• Baxter's total compensation package includes base salary &
may include incentive pay, such as cash bonuses & stock-
based compensation.
• It also includes comprehensive benefits, which vary by region& country, to help employees meet their healthcare, income-
protection, financial, retirement & time-off needs.
•
The program is also designed to be competitive withcompanies with which Baxter competes for executive talent in
order to attract, retain & motivate high-performing executives.
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Baxter Compensation Program
Baxter’s compensation program is designed to:
• Recognize company & individual performance;
• Drive the long-term financial performance of the company &
in doing so, encourage innovation & appropriate levels of risk-
taking;
• Reflect the value of each employee’s position in the market &within the company.
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Baxter Compensation Program
Financial Benefits:
a. Base Salaries:
• Base salaries are paid in order to provide a fixed component of
compensation.
• Factors that are considered for base salaries included:
1. How long an employee has been at Baxter & in his/her
current role.
2. The impact of his/her position on the company’s results
3. The quality of the overall experience an officer brings tohis/her role; and
4. How the employee’s role fits within the structure of the
organization.
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Baxter Compensation Program
b. Cash Bonuses:
• Cash bonuses are intended to reward individual performance and
their impact on the company’s performance relative to the financial
targets.
• For last three years, the company selected earnings per share, sales
and return on invested capital as the financial measures on which to
assess its performance for purposes of funding the cash bonus pool.
• If each financial measure is met in a given year, then the cash bonuspool is funded at two times the base salary for each executive
employee covered by the bonus pool.
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Baxter Compensation Program
c. Fringe Benefits:
1. Healthcare Benefits:
• Medical Coverage: It is available for employees & eligible familymembers. Employees can choose from a variety of medical plan
options, balancing cost & features that best meet their needs.
• Dental Coverage: It is offered separately from medical coverage, so
employees may elect one without electing the other. Employees have
a choice of dental plan options & coverage is also available for eligible
family members.
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Baxter Compensation Program
2. Insurance Coverage:
• Baxter provides Basic Life Insurance, Basic Long-Term Disability &
Business Travel Accident insurance at no cost to employees
immediately upon hire, & provides Short-Term Disability coverageafter employees complete six months & 1,000 hours of service.
• Additionally, BeWell@Baxter, the company's health & wellness
program, is designed to help employees stay well through education &
prevention, take action to make healthy lifestyle changes & deal withchronic or acute conditions.
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Baxter Compensation Program
d. Perquisites:
1. Financial and Retirement:
• Employee Stock Purchase Plan (ESPP): The ESPP allows Baxteremployees to purchase Baxter common stock each month at a 15
percent discount through convenient payroll deductions with nobrokerage fees.
• The Incentive Investment Plan (IIP): Employees can enroll in theplan the first of the month following 30 days of service & choose theamount of pre-tax savings—from 1 percent to 50 percent of pay .
• Flexible Spending Accounts (Healthcare and Dependent Care): Itallow employees to set aside pre-tax dollars (up to $5,000 peraccount each year) for eligible expenses, including vision andhearing care, deductibles, co-payments and other expenses not
covered by a medical or dental plan.
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Baxter Compensation Program
2. Time off:
• Paid Holidays & Vacation schedules vary by location, but generally
include both standard holidays & company-designated days. In
addition, Baxter offers paid vacation based on length of service.
• Family & Medical Leaves of Absence: It generally provide up to 12
weeks of unpaid time off, when an employee is unable to work
because of his/her own serious health condition. Leaves are
available to employees who have completed 12 months of serviceand worked 1,250 hours in the previous 12 months
• Other Time Away Programs: It includes Civic Duty Leave, Funeral
Leave and Military Leave.
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Non-Financial Incentives
• Non-financial incentives are valued not just for the direct benefit
provided to individual health professionals, but as a means by which
employing organizations can recognize & acknowledge employees’
contributions & commitment, as well as the challenges the
employees face in their daily lives.
• Developing effective non-financial rewards must be closely aligned
with strategic objectives, local & personal norms, values &
circumstances.
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Non-Financial Incentives
a. Workload management:
• Heavy and unmanageable workloads are a common concern
among health professionals. They contribute to poor
performance, low motivation & burnout.
•
Methods that have been used to address workload concernsinclude:
1. Establishment of overtime payments that ensure staff are
compensated for additional hours worked
2. Reviewing & redesigning work roles & responsibilities to ensure
the best possible distribution3. Regulating, either formally or informally, the number of
continuous hours worked by any given individual, hence reducing
the risk that fatigue will result in poor decision-making.
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Non-Financial Incentives
b. Flexible working arrangements:
• These may include offering flexible hours of work, extended or
changed leave arrangements.
• This approach is particularly relevant to professionalsbalancing work commitments with caring responsibilities
(home and extended family) and older workers who wish to
continue employment but may not be willing or able to
undertake the same range of tasks or hours of work.
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TALENT DEVELOPMENT
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Development Philosophy
• The company believes that development should be:
Shared responsibility, owned by each employee, his manager& Baxter
A process & not an event
Focused on goals important to both the employee &
Baxter
Focused on short-term actions as well as long-term careergoals
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Development Philosophy
Combination of work experiences,feedback & relationships, & training
70%
Work Experiences
20%
Feedback/Relationships 10% Training
• Expanding your
current role
• Challenging
assignments
• Special projects
• Rotationalassignments
• Volunteerism/
Community
involvement
• Mid-year & year-
end performance
& career
discussions
•
Networking• Mentoring
• Coaching
• Professional or
trade association
• Instructor led
courses
• Self-study/ Online
courses
•
Books/Journals• Advanced Degree
/Professional
Certification
• Conferences
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Importance of Training in Pharmaceutical Industry
• Well-trained people perform better, meaning a pharmaceutical
company is more able to adapt quickly to IP laws, regulatory
change, product launches and technological innovations.
• Moreover, it costs over £1000 million to develop and launch a new
medicine, therefore it is essential to train employees to the highest
level possible to ensure maximum ROI.
• For these reasons training coupled with the endless talent squeeze
puts pressure on pharma companies to educate, develop and retainthe best employees.
• New modes of training such as E-learning and academic tie-ups are
being incorporated by big pharma companies.
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Initiatives
• The portal provides employees with development &planning tools, as well as comprehensive informationabout performance expectations & goals, trainingopportunities & jobs at Baxter.
MyCareer@Baxter portal
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Initiatives
• The company provides a wide variety of training &development resources through ISOtrain, the company’s
global training system.
• ISOtrain provides a course catalog of more than 24,000computer based & classroom offerings on topics such as Food& Drug Administration regulations, Good Manufacturing
Practice guidelines & job specific skills.
ISOtrain
In 2012, employees globally completed more than 3 million hours of
training, an average of 54 hours per employee.
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Initiatives
• Online learning is available to all employees, with coursesoffered in up to 20 languages.
• More than 950 e-Learning programs, including coursesoffered through ISOtrain, cover topics such as Baxterprocesses, systems & products; quality; leadership & careerdevelopment; PC skills; environment, health & safety;pharmacovigilance; project management; & communication.
Online Learning
Employees completed more than 199,000 e-Learning courses in 2012.
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Initiatives
• Baxter continually enhances its employee performance assessment
process.
• Managers review employee performance annually, & individual
performance contributes to differentiated rewards.
• As part of the annual performance review process, both employee &
manager identify strengths & development areas & then conduct
ongoing discussions throughout the year.
• The company also encourages mid-year reviews to track
development & performance.
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Top Talent Development
Leadership Powerhouse program for top talent:• Developed in partnership with INSEAD, the program helps become
effective top-level leaders by developing a global mindset & enhancing
their critical & strategic thinking skills.
•
The program is based on collaborative learning & network-buildingexercises, & focuses on a variety of topics.
• It also leverages INSEAD’s Global Effective Leader Inventory to measure
progress toward the program’s goals and objectives.
• In 2012, 30 Baxter leaders participated.
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Training for Managers
Management Essentials Training
Leading for Results
Online Employee Mentoring Program
Women & Ethnic Minority Mentoring Program
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Training for Managers
Management Essentials Training:• Baxter provides managers with tools & techniques to be effective leaders.
• The company's Management Essentials training helps participants develop
& refine skills related to:
AccountabilityCareer &
DevelopmentPlanning
ChangeManagement
Communication
Critical Thinking &
Problem Solving Facilitation Interviewing
Managing Conflict
& Performance
During 2012, more than 1,900 managers completed at least one
Management Essentials course.
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Training for Managers
Leading for Results:• As managers progress from supervising individuals to leading teams,
they face new challenges & demands.
• In 2012, Baxter held 27 sessions of Leading for Results for
experienced managers & directors.
• It consists of live workshops, online courses & webinars to address
aspects of the Baxter Leadership Expectations,
• including business acumen, motivating & developing others, critical
thinking & problem solving, & communication.
During 2012, nearly 240 employees completed at least one Leading for
Results course.
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Training for Managers
Online Employee Mentoring Program:
• Baxter’s global online employee mentoring program helps connect
mentors & participants based on customized profiles, so they can
share experiences & career-related knowledge.
Women & Ethnic Minority Mentoring Program:
• Additionally, the Women & Ethnic Minority Mentoring program
accelerates the upward movement of top talent women &minorities who are director level & above.
• The program matches participants with senior leaders from their
respective business.
As of 2012, more than 1,700 employees have enrolled.
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Legal & Regulatory Compliance Training
• Baxter requires employees worldwide to take Web-based training on
legal & regulatory compliance.
• It consists of e-Learning courses covering areas such as
• product complaints, workplace violence prevention, data privacy, trade
compliance, antitrust, intellectual property, & Baxter’s ethics &
compliance standards.
• Baxter implements risk-based anticorruption education program to
provide awareness-level training to most employees, especially who
regularly interact with government officials and healthcare
professionals.
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Succession Management
• To ensure a robust leadership pipeline, the company assesses its
talent through its organization inventory process.
• The CEO conducts an annual talent review of Baxter’s business,
regional and functional senior talent with the senior management to
ensure that the company is meeting its global organizational
effectiveness & workforce capability needs.
• The CEO also reviews development and succession planning with the
company’s Board of Directors.
• The Board of Directors oversees succession management process to
ensure rigor, effectiveness & support of company’s diversity goals.
• The Corporate Governance Committee of the Board of Directors
oversees succession planning for the CEO.
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PERFORMANCE MANAGEMENT &
APPRAISALS
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Individual & Corporate Goal Alignment
• At Baxter, each business, region & function aligns to the
company’s corporate framework to set goals for their
respective organizations.
• This framework ensures focus on six key strategic priorities:
• Employees use the model to establish individual goals &
measurable targets to help Baxter achieve its broader goals.
Customer Innovation People/Team
Quality &
Compliance
Operational
Excellence Financial
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Automated Goal Alignment System
• Baxter has an automated goal-alignment system that about
half of its employees participate in.
• The process starts with the company’s top strategic goals
known as four B’s.
•Best Team, Best Partner, Best Investments, Best Citizen
• The executive team creates goals under each category.
• The top 150 executives then develop their goals, which are
distributed to employees.
•
The goals are collected in a performance management system.• A website provides guidance on how to write goals, &
achievement results are shared with company’s performance
review & compensation systems.
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Appraisal Process
• Performance Appraisal is the periodic evalutaion of an
employees current and past performance relative to
performance standards.
• Employees are judged in three ways;• What they achieve (Results and outcomes)
What they do (Behavior and actions)
What they are (Knowledge, skills and abilities
f l
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Performance Appraisals in
Pharmaceutical Industry
• Considering that the structure of pharma companies has
changed rapidly due to global pressures, new drug delivery
systems, lean management, new methods of work &
technology upgradation, there has been a tremendousrequirement of skills & competencies to give overwhelming
outcomes in these dynamic situations.
• Performance appraisals therefore are key to sustained
performance in the face of increasing competition.
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Appraisal Method
• The most commonly followed method in pharma industry isthat of Management by Objectives (MBO).
• In this, short term objectives for an employee are chalked outthat are specific, measurable, achievable, reviewable and timebound.
• With the focus on company vision, strategic thrust areas &annual business plan, functional goals & all are decided at thestart of the financial year.
• These goals are further cascaded down to teams & individuals& are reviewed periodically.
P f M C i i
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Performance Measurement Criteria –
Quality v/s Quantity
• While financial rewards are important for stimulating
performance, the quality of output in terms of its utilitarian
value is also very important.
• Hence what becomes more important is not just 'what' ismeasured but also 'how' it is measured.
• In a typical R&D set up the gestation period is longer & output
quality is of paramount importance.“
• However for appraisal of frontline sales employees, numbers
takes precedence.
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Use of Performance Appraisal
• Human resource planning
• Recruitment & selection
• Training and development
• Career planning & development
• Compensation programs
• Internal employee relations
• Assessment of employee potential
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Thank You!By:
Guneet Chatrath (108)
Atrija Gaur (114)Aakash Chharia (109)
Mudit Jain (614)
Arush Mehta (603)
Avinash Gupta (632)