Core topics of our international human resources work 

As an integrated global company, Merck has implemented uniform human resources programs worldwide. These include, for example, the Performance Management Process and the Global Rewards Policy, which aim to develop a performance culture based on the joint strategic direction of the company and a performance-related, market-oriented compensation structure. The Talent & Succession Management Process helps us to fill positions with the right people, as well as attract and retain talented employees. In autumn 2010, we adopted a global employer branding concept, the motto of which is “Make great things happen.” The aim here is to present to potential applicants those features that make Merck unique. These include an inspiring and motivating work environment in which innovations thrive, the possibility to contribute ideas to benefit customers and the company, and personal development.

Performance management

Performance management is of crucial importance for promoting entrepreneurial success and for identifying and developing employee potential. Key features of this process are clear objectives, differentiated feedback in performance management, transparent performance assessment, and the preparation of individual development plans. In 2009, Merck started the stepwise implementation of the globally uniform Performance Management Process, in which around 7,100 employees are currently participating. Additional employee groups will be phased into the process, particularly also the employees who have joined Merck from Millipore. A total of around 21,000 employees are to participate in the Performance Management Process by the end of 2011.

Global rewards policy

The compensation structure guidelines describe the principles governing how employees are remunerated depending on their performance and capabilities, and on the situation in the respective labor market. The Global Rewards Policy applies to all Merck companies worldwide and ensures a systematic compensation structure.

Career opportunities

Merck wants to offer its talented employees the opportunity to have an interesting career and to continually develop themselves within the company both personally and professionally. The Talent & Succession Management Process and the Expert Talent Process are two systematic programs that Merck uses to identify and specifically promote employees who show potential for a management position or an expert career path. These programs enable Merck to appoint the right people to management positions and at the same time to retain talented employees. In 2010, 76% of promotions to management positions were filled by internal candidates.

Employee engagement survey

Motivated and committed employees are our most valuable asset. Merck wants to offer its employees adequate scope for them to make their best individual contribution to the success of the company. In order to create the right conditions for this, Merck regularly conducts a Group-wide employee survey in which employees are able to express their assessment of Merck as an employer, their motivation and identification with the company, as well as their needs. The results are incorporated into measures that we use to continuously improve the framework conditions. Altogether 84% of employees participated in the most recent survey, which was conducted at the beginning of 2010 in 28 languages. The overall results show that the majority of employees identify strongly with Merck and engage themselves for the success of the company. All 11 categories saw improvements over the previous year’s survey. In seven categories, Merck outperformed the global high-performing companies benchmark. This comprises a group of companies across a range of sectors that are considered to be particularly strong performers due to their excellent financial results as well as high employee engagement scores.

Further improvement in occupational safety

In terms of accident prevention and occupational safety, we again made significant progress in lowering the most important indicator, the lost time injury rate (LTIR). This internationally used key figure describes the number of workday accidents resulting in lost time per one million working hours. Merck has set itself the goal of reducing the LTIR to 2.5 by 2015. In order to achieve this, we have introduced, for example, the “Safety Behavior Change” program to enhance the safety awareness of each individual employee. We are also increasing our training measures for persons responsible for EHS (Environment, Health, Safety), promoting independent responsibility of our employees, and supporting a wide variety of local occupational safety programs. Despite our efforts to prevent accidents, one accident with a fatal outcome occurred in 2010. A member of the sales force in Colombia died from the injuries she suffered during a car accident.