Our Workforce Provides Merck with a Powerful Competitive Edge
	Merck offers a host of programs, policies and tools that are grounded in and linked to the Company’s Leadership Model and that focus on building employee competencies and creating a more productive work environment. The model is based on these principles – 1) know and develop yourself, 2) know and develop our business, 3) know, support and develop our people, and 4) communicate – which serve as the foundation that supports continual growth of our people, leading to the growth of our business. The principles are a blueprint for how results are achieved. Merck’s top management communicates its commitment to the Company’s leadership principles by demonstrating the leadership skills and competencies in their management of the Company and by sponsoring and funding learning initiatives to enhance the ability of leaders throughout the Company to demonstrate these behaviors. Here are a few examples: •    Employee Development: Managers conduct yearly formal development sessions with employees to discuss their strengths, development opportunities and career aspirations. Employee development is a key part of our strategy to develop Merck leaders and help employees achieve their full potential. •    Succession Planning: Merck senior management regularly reviews and assesses Merck talent as succession candidates for senior management positions and to ensure that appropriate development opportunities and plans are in place to support employee advancement. •    Employee Networks: Employees can choose from more than 40 employee networks focusing on career development, community outreach or other common interests. Some networks include the Black Employee Network, Asia Pacific Network, Gay and Lesbian Employees at Merck, and Merck Information Network. One of our largest and most active organizations is the Merck Women’s Network with about 6,000 active members across the United States. The network provides a vehicle for employees to strategically plan and implement their career goals through personal and professional development. •    The Merck Mentoring Program: In 1998, Merck introduced formal mentoring programs. To date more than 1,000 employees have participated in the program at major Merck locations and at other sites. The program has been a marked success. In fact, a recent mentoring survey showed 95 percent of the participants would recommend the program to others. •    Multicultural Resources: Merck values the rich diversity of the people who represent our global workforce and offers employees online resources to help them better understand and appreciate other cultures. One Intranet-based resource contains country profiles, international business practices, information on visas and work permits, currency conversion charts, and tips for business and social etiquette in more than 90 countries. Whether an employee needs to know the proper way to greet a businessman in Tokyo, how to find a doctor in Italy, how to enroll their child in school in South Africa, or what to wear to a formal state dinner in Peru, this resource can help. •    Educational Assistance Program: Merck also encourages employees to build their skills through external programs and resources, including formal education. Many employees have earned bachelor’s, master’s and Ph.D. degrees through our Educational Assistance Program, which covers 100 percent of tuition for approved courses and full degree programs in the United States. Making life easier for busy employees Our work/life initiatives are directly linked to the programs and policies established by Merck to create a productive work environment for all employees. Work/life flexibility is supported by Merck’s Leadership Model and a variety of creative programs and tools. Merck offers a variety of flexible work arrangements such as job sharing, flextime, compressed work weeks, telecommuting and remote working, subject to job circumstances and employee performance. The underlying message to employees is that what they produce or achieve is more important than when or where their work is done. As part of work/life flexibility, Merck also encourages all employees to be active in community activities, and to bring these experiences and capabilities to work. To encourage employees to support their communities, we permit them, subject to business needs, to take personal time off from work for volunteer activities. Merck was one of the first employers in corporate America to offer on-site childcare. In 2000, we extended this commitment by expanding our facilities. Our fourth childcare center was opened at our new Upper Gwynedd, Pa., site and a fifth in Terlings Park, U.K. These sites offer daycare for infants, toddlers and pre-schoolers, as well as an all-day kindergarten, back-up care and summer programs. Offering highly competitive benefits According to the “2001 Hewitt Benefits Index,” a tool for measuring the value and competitiveness of employee benefits, Merck’s total health care offerings rank first when compared with benefits provided by 15 of our competitors in the pharmaceutical industry. To ensure that the Company’s health care benefits remain competitive and appropriate, in 2001 Merck introduced a set of employee health care guiding principles regarding quality, choice, economics/cost, education and tools. How do we know we’ve been successful? In January 2001, Merck was one of nine companies that the U.S. General Accounting Office cited as a leader in a new study on people management, specifically citing Merck for its ability to hire, develop and retain employees. [You can find the report, titled “Human Capital: Key Principles From Nine Private Sector Organizations,” at www.gao.gov under the month in review (Jan. 2001) in the category of government operation.] While this external recognition is gratifying, it is what employees tell us that truly counts. Employees say they are proud to work for Merck because of the role they play in discovering, developing, manufacturing and marketing superior products and services to improve and, in some cases, save lives. Most recently we can point to the Worldwide Employee Opinion Survey, which was designed to identify areas of strength and areas for improvement. The survey, which had a phenomenal response rate of 86 percent, found that employees are highly dedicated to Merck’s mission and overall very satisfied with the work environment.
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