We believe that recognizing and rewarding excellent performance is the best motivation for high achievement. Our compensation and benefits philosophy, known as Total Rewards, states that:
- Our success depends on rewarding employees who achieve exceptional results.
- We reward strong company and individual performance with performance-based pay.
- Our managers differentiate rewards based on business unit results and individual performance.
- Our pay and benefits are competitive with relevant markets and can be differentiated by business, function, and job classification.
In addition to base and performance-related pay and stock ownership, we offer benefits everywhere we operate. These may include:
- Health plans
- Income protection (insurance to protect income in case of injury or illness)
- Retirement and savings packages
For more information, see the Wellness and Health and safety sections of this report.
Investments in employee compensation and benefits
During the worst of the economic downturn, many of our employees sacrificed to help position HP for success and preserve our strategic direction. However, economic conditions around the world are now more stable and HP's business is strong and well-positioned for growth. Accordingly, in 2010, HP made additional investments in our employees in several areas:
- Fiscal year 2010 bonus-pool funding was increased and distributed based on HP and business-segment achievements against revenue and net-profit goals, with bonus awards determinations made based on employee job level, role, and performance level.
- The HP U.S. 401(k) plan changed from a discretionary match based on business performance to a fixed matching contribution each quarter, equal to 100% of the employee pay period contributions up to 4% of eligible pay.
- HP's equity program eligibility expanded to more high-performing employees, so they could share in HP's success.