At Novartis, pay-for- performance is an important component of their global talent management initiatives (Siegel, 2008). Using the results of an employee’s performance assessment in the ninebox performance matrix, a bonus payout is calculated that recognizes both the individual’s performance and the performance of their business unit. Because the market for employees in research and development is global, firms like Novartis set compensation rates at levels that reflect the global environment, even when that means paying salaries that are above the norm in some countries (Siegel, 2008). To help manage compensation costs, however, firms in this situation may locate their operations to second-tier (lower cost) cities (e.g., Sichuan, Qinghai and Hunan). Another tactic is to recruit talent that is currently under-employed
(e.g., engineers who are temporarily working as taxi drivers because they have lost their jobs during the economic downturn).
At Novartis, pay-for- performance is an important component of their global talent management initiatives (Siegel, 2008). Using the results of an employee’s performance assessment in the ninebox performance matrix, a bonus payout is calculated that recognizes both the individual’s performance and the performance of their business unit. Because the market for employees in research and development is global, firms like Novartis set compensation rates at levels that reflect the global environment, even when that means paying salaries that are above the norm in some countries (Siegel, 2008). To help manage compensation costs, however, firms in this situation may locate their operations to second-tier (lower cost) cities (e.g., Sichuan, Qinghai and Hunan). Another tactic is to recruit talent that is currently under-employed(e.g., engineers who are temporarily working as taxi drivers because they have lost their jobs during the economic downturn).
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