Developing employees in a targeted manner

Performance management is critical for creating a satisfying work environment for employees as well as supporting our overall business success. Important elements of the process are setting clear objectives, creating a culture of honest feedback and differentiating the level of performance among employees.
In 2009, we started to harmonize the internationally different performance management processes. We began the rollout of a consistent, global performance management process to achieve our goals in a transparent way across our organization. This process is being complemented by the new Global Rewards Policy, which sets forth guidelines on how employees are to be compensated depending on their performance, their abilities and local labor market conditions. Performance Management and the Global Rewards Policy are a systematic way to put individual performance in the context of corporate goals as well as to make them comparable, to develop them further and to honor them.

In order to translate the Merck values into the specific behaviors we expect from managers and employees, we have developed the Merck Competency Compass. This is a globally valid model that is used both to evaluate potential employees as well as determine areas for further development for existing employees. The competency framework translates the values into concrete behavioral examples we expect, both at the managerial and employee level.

Having the right employees at the right time for the right positions is essential to the long-term success of the company. The Talent and Succession Management program identifies employees with managerial potential across all locations and provides a clear process for their development and promotion.