Pharmaceutical Industry: Finger on the Pulse
The industry has seen a steady
aggression on pay mix with
more focus on variable pay
over the last three years.
Rewards Transformation Complements
Business Revolution
A) Pedal on Performance
The pharmaceutical industry has been more performancefocused
than other industries. Performance differentiation
can be done through differentiated salary increases,
relevant normal curves and pay mix.
1. On performance differentiation through salary increases
while the overall industry has looked at an index (Far
Exceeds vs. Met Expectations rating) of 1.7 across the
last three years, it's the pharmaceutical industry that
has pushed the index from 1.6 to 1.76 in the last three
years. The industry is increasing its performance focus to
ensure that performance is recognized and rewarded.
2. Due to the overall industry performance, the bell curve
is more tilted towards far exceeded expectations, but
that hasn't stopped the industry from differentiating
aggressively on performance. While the overall industry has been constant at 12-13% on the bottom 2 ratings, the
pharmaceutical industry has increased this percentage
from 11% to 16% across the last three years to ensure a
truly high performance culture.
3. The industry has seen a steady aggression on pay mix
with more focus on variable pay over the last three years.
The industry, including both Indian and multinationals
consider variable pay as an important element of the
Total Rewards proposition. While multinationals are more
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