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BAXTER

HR Policies

INTRODUCTION

About Baxter
Baxter International Inc. is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat haemophilia, kidney disease, immune disorders and other chronic & acute medical conditions. Baxter is recognized as a leading company in environmental performance and reporting, having an explicit focus on environmental issues since 1976.

Pioneer in healthcare Socially responsible citizen

Life saving products

BAXTER
Manufacturing strength Global scope Innovative scientific capabilities

Sustainability @ Baxter
Baxters sustainability strategy is further defined by its 9 priorities that focus its efforts for generating sustainable value to its stakeholders Additionally, these nine sustainability priorities are divided into three broad categories:
Our People Our Operations and Products Our World

Baxters Sustainability Principles


Promote a Safe & Healthy Workplace Promote an Inclusive & Diverse Workplace Promote Ethical Conduct & Legal Compliance

Drive a Sustainable Supply Chain

Drive Reductions in its Carbon Footprint

Drive Reductions in its Natural Resource Use

Drive Enhanced Product Stewardship

Strengthen Access to Healthcare through Product Development & Strategic Product Donations

Strengthen the Companys Commitment to Education, Especially Math & Science

Managing Sustainability
Baxter's executive-level Sustainability Steering Committee oversees the companys sustainability. Baxters sustainability initiatives create business value, from attracting and retaining key talent, engaging employees, and reducing operating expense, to ensuring market access, developing new markets, meeting stakeholder expectations, and enhancing Baxter's reputation.

HR at Baxter
Baxter provides HR professionals with opportunities in:
Talent acquisition/staffing Benefits Compensation Talent management Organizational effectiveness/organizational development HR operations

The functions activities provide insight business, applying competencies in human change and project leadership, coaching organization development, and process management

into the whole capital planning, and consulting, and technology

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 a diverse workforce

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 of Baxter'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

RECRUITMENTS @ BAXTER

Recruitment Process
Personnel Planning Job Analysis Employee Requisition

Job Vacancies

Recruitment Planning - Numbers - Types

Searching Activation Selling - Message - Media

Applicant

Pool

Screening

Potential

Hires

Selection

Strategy Development - Where - How - When

Applicant Population

Evaluation & Control

Departments at Baxter
BioLife Plasma Services Clinical and Medical Affairs

Communications

Engineering

Finance

Human Resources

Information Technology

Legal

Manufacturing

Marketing

Quality

Regulatory Affairs & Pharma Co-vigilance

Research and Development

Sales

Supply Chain

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

Job Application Process

Detailed Job Description

Job Application Portal (an external application)

Job title

Basic Job Description

Job Description Sample

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 of the job Interview data of 120 candidates at Baxter
(sourced from glassdoor.com, last updated 17th March 2014)

Hiring Strategy
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 employment decisions 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 Baxters "Prohibition of Workplace Harassment" policy.

Hiring Strategy

Equal opportunities

Well distributed gender ratio

REMUNERATION

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.

Compensation & Benefits


Baxter's total compensation package includes base salary & may include incentive pay, such as cash bonuses & stockbased compensation. It also includes comprehensive benefits, which vary by region & country, to help employees meet their healthcare, incomeprotection, financial, retirement & time-off needs. The program is also designed to be competitive with companies with which Baxter competes for executive talent in order to attract, retain & motivate high-performing executives.

Baxter Compensation Program


Baxters 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 risktaking; Reflect the value of each employees position in the market & within the company.

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 companys results 3. The quality of the overall experience an officer brings to his/her role; and 4. How the employees role fits within the structure of the organization.

Baxter Compensation Program


b. Cash Bonuses:
Cash bonuses are intended to reward individual performance and their impact on the companys 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 bonus pool is funded at two times the base salary for each executive employee covered by the bonus pool.

Baxter Compensation Program


c. Fringe Benefits: 1. Healthcare Benefits:
Medical Coverage: It is available for employees & eligible family members. 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.

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 coverage after 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 with chronic or acute conditions.

Baxter Compensation Program


d. Perquisites:
1. Financial and Retirement: Employee Stock Purchase Plan (ESPP): The ESPP allows Baxter employees to purchase Baxter common stock each month at a 15 percent discount through convenient payroll deductions with no brokerage fees.
The Incentive Investment Plan (IIP): Employees can enroll in the plan the first of the month following 30 days of service & choose the amount of pre-tax savingsfrom 1 percent to 50 percent of pay . Flexible Spending Accounts (Healthcare and Dependent Care): It allow employees to set aside pre-tax dollars (up to $5,000 per account each year) for eligible expenses, including vision and hearing care, deductibles, co-payments and other expenses not covered by a medical or dental plan.

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 service and worked 1,250 hours in the previous 12 months Other Time Away Programs: It includes Civic Duty Leave, Funeral Leave and Military Leave.

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.

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 concerns include: Establishment of overtime payments that ensure staff are compensated for additional hours worked Reviewing & redesigning work roles & responsibilities to ensure the best possible distribution 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.

1. 2.

3.

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 professionals balancing 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.

TALENT DEVELOPMENT

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 career goals

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 Rotational assignments Volunteerism/ Community involvement

Mid-year & yearend performance & career discussions Networking Mentoring Coaching Professional or trade association

Instructor led courses Self-study/ Online courses Books/Journals Advanced Degree /Professional Certification Conferences

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 retain the best employees. New modes of training such as E-learning and academic tie-ups are being incorporated by big pharma companies.

Initiatives
MyCareer@Baxter portal
The portal provides employees with development & planning tools, as well as comprehensive information about performance expectations & goals, training opportunities & jobs at Baxter.

Initiatives
ISOtrain
The company provides a wide variety of training & development resources through ISOtrain, the companys global training system.

ISOtrain provides a course catalog of more than 24,000 computer based & classroom offerings on topics such as Food & Drug Administration regulations, Good Manufacturing Practice guidelines & job specific skills.
In 2012, employees globally completed more than 3 million hours of training, an average of 54 hours per employee.

Initiatives
Online Learning
Online learning is available to all employees, with courses offered in up to 20 languages.
More than 950 e-Learning programs, including courses offered through ISOtrain, cover topics such as Baxter processes, systems & products; quality; leadership & career development; PC skills; environment, health & safety; pharmacovigilance; project management; & communication. Employees completed more than 199,000 e-Learning courses in 2012.

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.

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-building exercises, & focuses on a variety of topics. It also leverages INSEADs Global Effective Leader Inventory to measure progress toward the programs goals and objectives. In 2012, 30 Baxter leaders participated.

Training for Managers


Management Essentials Training

Leading for Results


Online Employee Mentoring Program Women & Ethnic Minority Mentoring Program

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:
Career & Development Planning Change Management

Accountability

Communication

Critical Thinking & Problem Solving

Facilitation

Interviewing

Managing Conflict & Performance

During 2012, more than 1,900 managers completed at least one Management Essentials course.

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.

Training for Managers


Online Employee Mentoring Program:
Baxters global online employee mentoring program helps connect mentors & participants based on customized profiles, so they can share experiences & career-related knowledge.
As of 2012, more than 1,700 employees have enrolled.

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.

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, & Baxters 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.

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 Baxters 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 companys Board of Directors. The Board of Directors oversees succession management process to ensure rigor, effectiveness & support of companys diversity goals. The Corporate Governance Committee of the Board of Directors oversees succession planning for the CEO.

PERFORMANCE MANAGEMENT & APPRAISALS

Individual & Corporate Goal Alignment


At Baxter, each business, region & function aligns to the companys corporate framework to set goals for their respective organizations. This framework ensures focus on six key strategic priorities:
Customer Innovation People/Team

Quality & Compliance

Operational Excellence

Financial

Employees use the model to establish individual goals & measurable targets to help Baxter achieve its broader goals.

Automated Goal Alignment System


Baxter has an automated goal-alignment system that about half of its employees participate in. The process starts with the companys top strategic goals known as four Bs.
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 companys performance review & compensation systems.

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

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 tremendous requirement 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.

Appraisal Method
The most commonly followed method in pharma industry is that of Management by Objectives (MBO). In this, short term objectives for an employee are chalked out that are specific, measurable, achievable, reviewable and time bound. With the focus on company vision, strategic thrust areas & annual business plan, functional goals & all are decided at the start of the financial year. These goals are further cascaded down to teams & individuals & are reviewed periodically.

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' is measured 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.

Use of Performance Appraisal


Human resource planning Recruitment & selection Training and development Career planning & development Compensation programs Internal employee relations Assessment of employee potential

Thank You!
By: Guneet Chatrath (108) Atrija Gaur (114) Aakash Chharia (109) Mudit Jain (614) Arush Mehta (603) Avinash Gupta (632)