Hewitt翰威特醫(yī)藥研發(fā)行業(yè)薪酬福利調(diào)查報(bào)告ppt課件

1、Engage Talent, Improve ProductivityHewitt 2021 CPRDS Results Sharing | Sept. 21th 2021Overview of Hewitt R&D Center StudyHewitt 2021 CPRDS Participant List Totaling 31Astrazeneca Pharmaceutical- DevelopmentPfizer (China) Research and Development Co., LtdAstrazeneca Pharmaceutical Innovation Center,C

2、hinaRoche Pharma Development Center in ChinaBasilea Pharmaceutica China Ltd.Roche R&D Center (China) Ltd.-ResearchBayer Healthcare Co., Ltd.Rundo-Cronova International Pharmaceuticals R&D Co,.Ltd.Biogen Idec SRO Inc ShanghaiSanofi-Aventis China R&D CenterCharles River Laboratories Greated China Prec

3、linical Services ShanghaiServier (Tianjin) Pharmaceutical Co., Ltd.China Novartis Institutes for BioMedical Research Co., Ltd.Shanghai Boehringer-ingelheim Pharmaceutical Co., Ltd.China Otsuka Pharmaceutical Co., Ltd.Shanghai Pharmaceutical Holding Co.,Ltd. Central Research InstituteCovance Pharma R

4、&D (Beijing) Co., Ltd.Shanghai Zerun Biotechnology Co.,LtdEgret Pharma (Shanghai) Ltd.Shenzhen Sanofi Pasteur Biological Products Co.,Ltd.Eli Lilly Trading (Shanghai) Co., Ltd.South-China Center for Innovative ParmaceuticalsExcel PhamaStudies Inc.Suzhou Novartis Pharma Technology Co., Ltd.Glaxo Smit

5、h Kline (China) Investment Co., Ltd.Syngenta (China) Investment Co., Ltd.Hutchison MediPharma Ltd.Wuxi AppTec Co., Ltd.Johnson & Johnson Pharmaceutical Research & Development. LLC.Xian-Janssen Phamaceutical Ltd.Novo Nordisk(China) Pharmaceuticals Co.,Ltd.Todays ContentOverall Market UpdatePharma Ind

6、ustry and R&D Sector OverviewEngage Employee to Improve ProductivityBased on Hewitt Engagement ModelAppendixEngagement Driver DefinitionAbout HewittMarco-economic Situation in the WorldUSACanada UK France Germany Italy SpainData sources: 1. International Monetary Fund Database2. China CPI from Natio

7、nal Bureau of Statistics, PRC3. Economist Intelligence UnitAustralia IndiaJapan Singapore ThailandUAEChinaChina Market Movement*Data sources: 1. National Bureau of Statistics, PRC2. Hewitt China Salary Increase Survey 1995-20213. International Monetary Fund Database4. OECD StatisticsChinas Source of

8、 Growth is ShiftingChina high growth in the past years has been mainly driven by improvement in allocative efficiency, particularly reallocation of human capitalRural vs. Urban; Central & Western vs. Coastal EasternOverseas vs. DomesticallyBest students to government vs. to businessThe potential of

9、allocative efficiency is diminishing; probably for another 10-15 yearsSustainability of growth in future much depends on improvement in productive efficiency, that is, technological innovationAllocative Efficiency - production factors move from low productivity-low value sectors to high productivity

10、-high value sectors; price must be right;Productive Efficiency - Increase in productivity through technological innovation; incentive for innovation must be right.Data Source: Professor Weiying Zhang, Peking UniversityChina Beating Japan in term of Share of Total Global R&D SpendingData Source: Batt

11、elle, R&D MagazineThe Government is the Main Source of China R&D InvestmentDomestic% of TotalGlobal% of TotalChemicals27829.3%1749.9%Computers879.2%26014.8%Drugs13514.2%1649.3%Electrical17318.2%63436.1%Mechanical15015.8%21512.3%Others12713.4%30817.6%Total9501,755Data Source: Organization of Economic

12、 Cooperation and Development 2021Breakdown of Chinese R&D Investment Distribution of Chinese PatentsData Source:Queen Mary University of London，2021Emerging Economics Driving Global R&D GrowthData Source: R&D Magazine, Battelle, OECD, IMF, CIA, 2021Scientists and Engineers/ Million PeopleR&D as % GD

13、PTodays ContentOverall Market UpdatePharma Industry and R&D Sector OverviewEngage Employee to Improve ProductivityBased on Hewitt Engagement ModelAppendixEngagement Driver DefinitionAbout HewittSlowing Global Pharma Growth with Parmerging Growth Outpacing the RestArea2008 Sales Revenue (0.1 Billion)

14、2008 Increase Rate (%)2003-2008 CAGR (%)2008-2013 Projected CAGR (%)North America31181.45.7-1-2Europe24755.86.43-6Asia/Africa/Australia90815.313.711-14Japan7662.12.71-4Latin America46512.612.711-14Global77314.86.63-6Data Source: Ministry of Health, IMS, CITICSMarket Sales (Billion USD) Increase Rate

15、 (%) Pharma Market Growth in the World Pharma Market Growth in the World 40% Among Global Innovation Top 20 Companies are from Pharma IndustryIncreasing Expense in Pharma R&D but Decreasing OutputStrong needs to improve : 1) Capital Efficiency; 2) R&D productivityData Source: PhRMA, 2007, FDAThe Roa

16、d to Positive R&D ReturnsImprove Productivity( Increase ROI )Scientific innovation is not the only route to higher R&D productivity. Attention to the familiar management areas of cost, speed, and decision making can still reap rewards.Data Source: MicKinsey Quarterly, Feb., 2021CostOrganizational an

17、d Procurement IssuesMore Aggressive outsource selected noncore activities to low-cost locationsReduce the costs associated with drug failures byFocusing on the activities truly reducing risk of failureSharing risk with othersSpeedClinical development planning ( good vs. poor)Patient Recruiting ( qui

18、ck vs. slow )Site and investigator management ( optimal vs. suboptimal )Decision MakingShift compound attrition to earlier stagesChoice of compounds for InvestmentAll Major Big Pharmas Have Stepped up their Investments in China in the Past One or Two YearsQ1, 2021Q2, 2021Q3, 2021Q4, 2021Q1, 2021Baye

19、r-Scheringwill invest 100mil Euro to establish its R&D center in to enhance its global R&D capabilityJohnson&Johnsonannounced that they will buildup its APAC R&D center in Shanghai to consolidate its R&D capability in , Mumbai and Bangalore and will have wide cooperation with universities in ChinaAs

20、traZenecainvest to establish its new China operation center and part of its APAC function in ShanghaiIts new R&D center will start to use in 2021 in Shanghai Zhang Jiang High-Tech ParkNovartisinvested $1B in R&D in China over the next 5 years and will pay $125 million to buy an 85% stake in Chinese

21、vaccine maker Zheijang Tianyuan Bio-PharmaceuticalRocheannounced that its Asia operations center is being established in Shanghai and that China will serve as a core development region - at the same level as the US and Germany PfizerPfizer EM President announced interest to pursue acquisitions in Ch

22、ina to accelerate growth Pfizer expand its manufacturer plant and R&D capability in China Merck Serono plans to establish its global R&D center in and will keep invest about 150mil Euro for this new centerNovo Nordisk plans to double investment in China R&D in 3 years to be the 2nd largest global R&

23、D centerBITo invest $ 240 M in R&D and manufacturing in ChinaGSK Shanghai R&D center consolidated as the sole global neuroscience R&D siteQ2, 2021Sanofi-AventisDecided to establish its AP R&D center in ShanghaiCRO Benefits from Pharma Moving Up the Value ChainCRO in ChinaToday at a glace298 register

24、ed Chinese-based clinical trials in 2007, a year-on-year growth of 41%Rapid development in biotech capabilityMovement towards genomics and gene therapyIncreasing ability to meet western standards in drug quality and safetyThe ChallengesThe lack of enforcement of IP lawsThe difficulties in recruiting

25、 experienced talent for project management as well as in retaining themLargely fragmentedAn outsourced destinationDespite the proportionally small base of 1% of the total global CRO revenue, Chinas attractiveness attributable to:- Cost and time savings, suggestively 50%- Talent pool- Patient pool- A

26、nimal resources- Rapid economic developmentThe TrendsEmergence of one-stop service provider, from drug discovery to registration and marketingExpansion via mergers, acquisitions or strategic partnerships with other domestic peers and international playersGrowing number of IPOsEstablishment of footho

27、ld in China by multinationalsData Source: PwC ReportMore Talent Demands from Clinical Development with Overall Big Target Headcount Increase Data source: Hewitt 2021 CPRDS Study FindingsThe average overall headcount Increase rate for 2021 fiscal year is over 20%Generally speaking, the talent demand

28、from development functions is bigger with average target headcount increase of 28%, while that for research function is 12%R&D Employee Headcount Keeping IncreasingData source: Hewitt 2021-2021 CPRDS Study FindingsChina Year-on-Year Employee TurnoverData Source: Hewitt TCM Study 2001 - 2021 (PRC) Ov

29、erall FindingsR&D Talent Turnover Keeping High, Similar to 2021Note: General R&D includes Chemical, Consumer Goods Non-food and Pharma.Data Source: Hewitt China R&D Study 2007 - 2021 Overall Findings Hewitt China Pharma R&D Study 2021-2021 FindingsFor R&D Centers focusing on development, turnover ra

30、te is much higher, around 25%-30%For those focusing on research, turnover rate is lower, around 8% at averageR&D Talent Turnover Reason AnalysisTurnover Reason 2010 Ranking 1. Limited growth opportunities2. External inequity of compensation3. Under utilization of skills4. Lack of recognition5. Work

31、life balance6. Role stagnation7. Performance assessment8. People managers9. Internal inequity of compensation10. Business instabilityMore ImportantLess ImportantData source: Hewitt 2021 CPRDS Study FindingsTodays ContentOverall Market UpdatePharma Industry and R&D Sector OverviewEngage Employee to I

32、mprove ProductivityBased on Hewitt Engagement ModelAppendixEngagement Driver DefinitionAbout HewittEmployee Engagement can Improve Organization Performance+33%+62%Source: Hewitt Best Employers in China Survey- 45%- 67%Six Categories Drive Employee EngagementOpportunitiesCareer OpportunitiesLearning

33、and DevelopmentWorkWork TasksSense of AccomplishmentResourcesWork ProcessesCompany PracticesPeople/HR PracticesManaging PerformanceBrand AlignmentOrganizational ReputationQuality of LifeWork/Life BalancePhysical Work EnvironmentTotal RewardsPayBenefitsRecognitionPeopleSenior LeadershipManagerCoworke

34、rsPeople FocusCustomersSayStriveStayEngagementEngage Employee ThroughTotal Rewards Pay Benefits RecognitionExternal Competitiveness: Salary Increase China National Salary Increase (excluding promotion)Data Source: Hewitt TCM Study 2001 - 2021 (PRC) Overall FindingsHigher R&D Salary IncreaseNote: Gen

35、eral R&D includes Chemical, Consumer Goods Non-food and Pharma.Data Source: Hewitt China General R&D Study 2007 - 2021 Overall Findings Hewitt 2021 2021 CPRDS FindingsFor Local & ReturneePharma R&D Salary IncreaseFor Local and ReturneeData Source: Hewitt China 2021 CPRDS Overall FindingsPharma R&D S

36、alary IncreaseFor China Hired ForeignerData Source: Hewitt China 2021 CPRDS Overall Findings36% companies dont differentiate the salary increase between China hired foreigners and Local / Returnee.Among those with different salary increase budget for China hired foreigners, the 2021 actual salary in

37、crease is 5.5% at average and 4.5% for median.Pharma R&D Pay Level Analysis Market MedianData Source: Hewitt CPRDS 2021 Overall FindingsRMB/AnnualGP 2010/20091.7%3.5%6.2%8.8%-0.6%TTC 2010/20090.8%2.6%7.3%10.2%0.8%Pharma R&D Pay Level Analysis Market MedianData Source: Hewitt CPRDS 2021 Overall Findi

38、ngsRMB/AnnualGP 2010/20091.2%-2.9%-9.5%TTC 2010/20090.8%-3.4%-9.8%Cash Comparison by Employee CategoryGP CHF/Local59.0%75.2%39.4%TTC CHF/Local57.0%73.5%36.2%RMB/AnnualData Source: Hewitt CPRDS 2021 Overall FindingsCash Comparison by R&D CategoryData Source: Hewitt CPRDS 2021 Overall FindingsFresh Gr

39、aduateStarting Salary AnalysisData Source: Hewitt CPRDS 2021 Overall FindingsSupplemental Benefits Market PrevalenceData Source: Hewitt CPRDS 2021 - 2021 Overall Findings Still, over 85% participants provide Supplemental Medical and Group Insurance to employees The prevalence of Supplemental Housing

40、 and Supplemental Pension increasedSupplemental BenefitsReturnee and Local Hired ForeignerIf there is no social securities provided, whats the substitutes? More than half (67%) of companies will not provide social securities to Returnee or Local hired foreigner; Most common substitutes of social sec

41、urities are: commercial insurance medical, cash allowance, etc.Data Source: Hewitt China R&D Study 2021 2021 Overall FindingsRecognition Best PracticesHewitt POVGet buy-in from senior management and leadershipMarket the initiativeInvolve employees in testing and developing the idea of a more rigorou

42、s approach to recognition. Tailor your recognition and rewards to the needs of the people involvedTiming is crucialDeliver recognition awards in an open and public wayDeliver recognition in a personal and honest mannerStrive for clear, unambiguous, and well-communicated connection between accomplish

43、ments and rewardsRecognize recognitionEngage Employee ThroughCompany Practices People/HR Practices Managing Performance Brand Alignment Organizational ReputationHewitt Framework on Performance ManagementHigh Performing CultureCapabilitybuilt throughfeedback and learningCommitmentbased onmeaningfulwo

44、rk and rewardsClear Expectationsfor individualand groupcontributionsCommonUnderstandingof the organizationspriorities and objectivesPerformancePlanningCoaching andFeedbackPerformanceReviewRewardsKPIs SettingNearly 40% participants set 5-9 KPIs for employees and about 32% chose others, part of which

45、have KPIs varied by functions or positions;Most companies have only Results KPIs and Behaviors KPIs, and the typical weighting is about 70% and 30% or 75% and 25%. And if the company have Other KPIs, usually they are related to 360 degree evaluation or cooperation evaluation or global performanceMan

46、agement KPIs typically include budget control, project progress, compliance, competencyNon-management KPIs mainly include number of compound, delivery efficiency, quality, science competencyData Source: Hewitt CPRDS 2021 Overall FindingsAbout KPI - Hewitt POV Key Result Areas Performance Goals that

47、the employee is expected to achieveIndividual targets that support the organizations/Units/Team goals Role ResponsibilitiesResponsibilities which are integral to an employees job Listed in the employees Job DescriptionCompetenciesSkills and abilities described in behavioral terms that are observable

48、 and measurableCritical to successful individual or company performanceCompetencies are listed briefly in the Job DescriptionE.g., Developing PeoplePurpose of Each Type of KPIs - Hewitt POV KRAsRoleResponsibilitiesCompetenciesRR are what the employee is expected to “do.Keeps focus on the purpose of

49、the jobEasy to defineMay be too fundamental, too micro to track; Performed anywayDifficult to measureKRAs are what the employee is expected to “deliverIdentify & emphasize “priorities Clear line of sight between business objectives & individual goals.May be difficult to cascade broad business goals

50、to individualsMay be difficult to track results to individual contributionsMay be difficult to identify the right Key Performance IndicatorCompetencies are what the employee is expected to “displayFocus on “how in addition to “what of performanceRaise the bar on performance, future focused and used

51、for development purposeMay not have the chance to observe behaviours and can be subjectiveCompetencies need to be very tightly definedPerformance Review and CommunicationOver 50% companies conduct performance review every half year. And about 40% will conduct it annually100% respondents reported to

52、have formal performance conversations with employeesDuring such conversations, typically KPI goals, KPI rating and salary adjustment are conveyed. As to others, mainly refer to career development, competency review and action planAmong those communicating KPI ratings, 50% will communicate KPI scores

53、 at the same timeData Source: Hewitt CPRDS 2021 Overall FindingsKPI RatingMost companies have 5 or 6 and more performance ratingAnd about 40% participants use forced ranking to ensure the performance rating; while 61% report to have a suggested distribution (recommend a distribution but do not stric

54、tly enforce it by adjusting ratings; used as a barometer)Among those with 5 performance ratings, from bad to good, the typical distribution is about 10% for level 1, 20% 25% for level 2, 60%70% for level 3, 10%15% for level 4 and 5% for level 5.Currently, most companies report to appraise employee p

55、erformance based on project progress not just the final results. Hence there will no obvious influence on employee performance when their projects are cancelled or suspended because of business decisionData Source: Hewitt CPRDS 2021 Overall FindingsCharacteristics of Different Rating Scales3-Point S

56、caleSimpleLess labeling of employeesLess differentiation among employeesCentral TendencyWide range of employees fall in the middle categoryBeing in the middle can be de-motivatingMore manager context/feedback needed4-Point ScaleEliminates a middle scoreForces managers to place employees in above- or

57、 below-average ratingDiminishes employee perception of being average5-Point ScaleHigh performance differentiation Helps with classification of employees for pay, promotion, etc.Central TendencyDifficult to get right and ensure manager consistencyHigh Performance(Some employees)Strong Performance(Man

58、y employees)Inconsistent Performance(Few employees)Made a breakaway contribution; Delivered the results needed, and more, and lived our core values; ORExemplary demonstration of core values while delivering the results neededMade a solid contribution; Delivered results needed and lived our core valu

59、es; ORExemplary demonstration of core values but delivered partial resultsShowed potential to contribute more; Delivered partial results and lived our core values; ORDid not demonstrate our core values even though delivered results neededDid not deliver results needed; ORDid not demonstrate our core

60、 values even though delivered partial resultsAssumes all aim high reach targetsNeed to Improve Performance NowThe performance of employees in each rating category will be clearly differentiatedThe characteristics of employees in category is as follows:Hewitts POV: Achievement of Objectives/TargetsPe