WEBVTT 1 00:00:20.640 --> 00:00:25.460 Honeywell is one company, but it is made up of many different businesses. 2 00:00:26.360 --> 00:00:31.480 These businesses are united by a common set of values and common technologies. 3 00:00:33.080 --> 00:00:38.700 Businesses differ on the other hand in respect to their products, size, customers, locations, 4 00:00:39.220 --> 00:00:45.900 and competitors. Honeywell's management and pay philosophies reflect who we are, 5 00:00:46.400 --> 00:00:53.100 our unity, and our diversity. Decisions that affect the company as a whole are made at the 6 00:00:53.380 --> 00:00:59.080 corporate level, but decisions that affect individual businesses such as decisions about 7 00:00:59.080 --> 00:01:07.120 pay are made at the business level. Business decisions are based on objectives and values 8 00:01:07.120 --> 00:01:13.120 common to the company and on the requirements of each business. This ensures that these decisions 9 00:01:13.120 --> 00:01:20.020 reflect both Honeywell's identity and individual business interests. Honeywell has an ongoing 10 00:01:20.020 --> 00:01:27.120 corporate goal to be a leading multinational high technology and services firm. A high quality 11 00:01:27.120 --> 00:01:34.400 workforce is Honeywell's best resource in meeting this goal. Honeywell's pay philosophy 12 00:01:34.400 --> 00:01:40.080 is a key factor in maintaining the quality of the company's workforce in support of this goal. 13 00:01:41.560 --> 00:01:48.120 Under this philosophy, Honeywell has established four basic pay objectives. All Honeywell pay 14 00:01:48.120 --> 00:01:54.480 systems are designed to achieve these objectives. To attract the best person available for each 15 00:01:54.480 --> 00:02:01.300 Honeywell job. To encourage your growth both as an individual and as a participant on your work team. 16 00:02:02.440 --> 00:02:09.180 To recognize the importance of high quality work performance and to reward it accordingly. And to 17 00:02:09.180 --> 00:02:17.160 encourage you to make a career-long commitment to Honeywell. Each business establishes and maintains 18 00:02:17.160 --> 00:02:25.000 its own pay system based on these objectives. In addition, four basic principles apply to all 19 00:02:25.000 --> 00:02:32.980 Honeywell pay systems in support of these objectives. First, your pay must be fully competitive in the 20 00:02:32.980 --> 00:02:39.520 market as defined by your business. Second, your pay must be fair with respect to the pay other 21 00:02:39.520 --> 00:02:47.580 employees receive at your Honeywell business. Third, your pay must be communicated to you, 22 00:02:47.900 --> 00:02:53.160 including general principles, the specific system that applies to you, and the process 23 00:02:53.160 --> 00:03:00.020 under which your own pay is determined within that system. The fourth principle is that basic 24 00:03:00.020 --> 00:03:05.020 responsibility for establishing and maintaining your pay system must rest with your Honeywell 25 00:03:05.020 --> 00:03:14.080 business. In all pay systems, basic pay levels must be set. A variety of methods is available. 26 00:03:15.060 --> 00:03:21.500 Market pay, the cost of doing business, ability to pay, or changes in the cost of living are 27 00:03:21.500 --> 00:03:27.640 examples of different ways pay levels can be determined. The particular method used at Honeywell 28 00:03:27.640 --> 00:03:32.740 must support the company's goals of being a financially sound company and of attracting 29 00:03:32.740 --> 00:03:39.980 and retaining high quality people. To be financially sound, the company must price its 30 00:03:39.980 --> 00:03:45.540 products competitively. To attract and retain high quality people, the company must pay 31 00:03:45.540 --> 00:03:51.480 competitively, that is at levels that are the same as or higher than other companies pay levels. 32 00:03:54.300 --> 00:04:00.680 Honeywell has chosen the market as the method that best meets both these goals. Your Honeywell 33 00:04:00.680 --> 00:04:07.240 business looks at the market, that is pay levels at other companies, then sets its own pay at levels 34 00:04:07.240 --> 00:04:14.140 that are the same as or higher than these. The market method of setting basic pay levels offers 35 00:04:14.140 --> 00:04:20.180 the best balance between company and employee needs. The company is assured of having labor 36 00:04:20.180 --> 00:04:26.480 costs that are similar to other companies labor costs. This enables your Honeywell business to 37 00:04:27.560 --> 00:04:33.900 competitively and maintain its sound financial position. At the same time, you are assured of 38 00:04:33.900 --> 00:04:41.020 receiving pay that is fully competitive with the pay you can receive elsewhere. A frequent question 39 00:04:41.020 --> 00:04:48.860 is whether pay set in this manner keeps pace with the cost of living. Cost of living is only one of 40 00:04:48.860 --> 00:04:55.640 several factors that affect the market. Market pay levels also respond to the demand for people in a 41 00:04:55.640 --> 00:05:02.140 certain field and the supply of people available to fill that demand. Market pay varies too, 42 00:05:02.340 --> 00:05:06.860 depending on the general economic situation which affects companies ability to pay. 43 00:05:08.280 --> 00:05:13.960 Because market pay levels reflect a number of factors, market pay may rise at the same 44 00:05:13.960 --> 00:05:21.960 or a different rate than the cost of living. Nevertheless, basing pay on the market remains 45 00:05:21.960 --> 00:05:28.240 the best way to balance long-term company and employee needs. The company is assured of being 46 00:05:28.240 --> 00:05:33.540 able to maintain its sound financial position and this is important for your job security. 47 00:05:34.260 --> 00:05:41.380 At the same time, you are assured of receiving fully competitive pay. Honeywell is a market driven 48 00:05:41.380 --> 00:05:49.060 company. Let's take a closer look at what the term market means. The responsibility for defining 49 00:05:49.060 --> 00:05:55.540 market rests with your Honeywell business. In defining this term, your Honeywell business looks 50 00:05:55.540 --> 00:06:02.560 at leading companies. That is, companies that have recognized leadership in their fields. We want to 51 00:06:02.560 --> 00:06:08.500 compare ourselves with the best companies we can. These companies may compete with your Honeywell 52 00:06:08.500 --> 00:06:14.320 business for employees or for customers. The companies may be national, regional, local, 53 00:06:14.320 --> 00:06:21.380 or a mixture, whichever is appropriate. From these companies, your business chooses a select group. 54 00:06:22.340 --> 00:06:26.300 This select group of leading companies is your business's market. 55 00:06:29.140 --> 00:06:34.840 Pay for jobs at your business is set at levels that are at or above pay for the same job at 56 00:06:34.840 --> 00:06:40.760 other companies in this select market. Your business may define several different markets 57 00:06:40.760 --> 00:06:46.460 for different groups of employees. For example, a business may compete with leading local companies 58 00:06:46.460 --> 00:06:54.560 for office workers but on a national basis for engineers. Remember that the responsibility for 59 00:06:54.560 --> 00:07:01.080 defining the market or markets rests with individual Honeywell businesses. This means 60 00:07:01.080 --> 00:07:07.240 that businesses markets may be different even if the businesses are located in the same geographical 61 00:07:07.240 --> 00:07:12.980 area. Take two different Honeywell businesses that are in the same city, for example. 62 00:07:13.720 --> 00:07:18.980 These businesses have different products, customers, and competitors. So these two 63 00:07:18.980 --> 00:07:24.720 businesses may define their markets differently. They may make comparisons for pay purposes with 64 00:07:24.720 --> 00:07:31.940 different groups of leading companies. In addition to considering the market, all Honeywell pay 65 00:07:31.940 --> 00:07:39.000 systems are based on a second principle. It is to make sure your pay is fair with respect to the 66 00:07:39.000 --> 00:07:45.500 pay of other employees in your Honeywell business. One and sometimes two steps are taken to assure 67 00:07:45.500 --> 00:07:52.820 you of receiving fair pay. The first step is to evaluate your job in relationship to other jobs 68 00:07:52.820 --> 00:07:59.460 in your Honeywell business. Jobs are objectively assessed based on the tasks and responsibilities 69 00:07:59.460 --> 00:08:07.180 they involve and then assigned a ranking. All jobs with the same ranking are paid at the same rate 70 00:08:07.180 --> 00:08:14.640 or if a range of pay is provided all jobs with the same ranking are assigned to the same pay range. 71 00:08:15.420 --> 00:08:19.940 So you are assured of receiving pay at the same rates as other people whose jobs 72 00:08:19.940 --> 00:08:27.140 have the same ranking as your job. There is a second step in determining fair pay in any job 73 00:08:27.140 --> 00:08:33.000 where performance differences are measured. Honeywell wants to attract employees who prefer to work 74 00:08:33.000 --> 00:08:39.880 in a performance-oriented environment. Therefore, performance quality is an important factor in 75 00:08:39.880 --> 00:08:45.460 determining pay in any job at Honeywell where performance differences are objectively measured. 76 00:08:47.100 --> 00:08:52.060 Employees whose performance meets higher standards will advance through their pay 77 00:08:52.620 --> 00:08:57.320 rapidly or will be paid at a higher level in their range than others. 78 00:08:59.360 --> 00:09:05.120 So as a Honeywell employee you are assured of receiving competitive pay in your business's 79 00:09:05.120 --> 00:09:12.480 market and fair pay with respect to other Honeywell employees. The third principle that 80 00:09:12.480 --> 00:09:19.240 applies to all Honeywell pay systems is that they be effectively communicated. It is important that 81 00:09:19.240 --> 00:09:26.500 you understand your pay. Honeywell as a company is committed to communicating both the basic 82 00:09:26.500 --> 00:09:32.120 principles on which all pay systems are based and the details of the pay system that apply to you. 83 00:09:35.320 --> 00:09:39.120 Your supervisor has some additional communication responsibilities. 84 00:09:40.040 --> 00:09:45.420 Your supervisor is charged with communicating the company's expectations for your performance 85 00:09:45.420 --> 00:09:49.420 and the criteria under which your performance will be judged. 86 00:09:50.380 --> 00:09:55.260 Your supervisor is also expected to review your performance with you from time to time. 87 00:09:57.600 --> 00:10:03.100 Pay that is competitive within your market, fair with respect to the pay for other jobs in your 88 00:10:03.100 --> 00:10:10.400 Honeywell business, responsive to the quality of job performance, and communicated to you. 89 00:10:11.040 --> 00:10:16.480 These basic principles are the foundation on which every Honeywell pay system is based. 90 00:10:17.540 --> 00:10:22.580 Within this framework your business has the responsibility for establishing and maintaining 91 00:10:22.580 --> 00:10:29.680 a system that is appropriate in its own business environment. Your Honeywell business defines the 92 00:10:29.680 --> 00:10:36.120 market in which pay will be compared and establishes pay rates based on this market and on job 93 00:10:36.120 --> 00:10:41.820 comparisons within the business. Your Honeywell business decides on performance criteria 94 00:10:41.820 --> 00:10:47.400 and communicates your pay system and your relationship to this system to you. 95 00:10:48.420 --> 00:10:53.060 By following basic principles while being tailored to fit each business's own environment, 96 00:10:54.040 --> 00:11:00.800 your pay system assures you of being paid fairly and in a way that recognizes your contributions 97 00:11:00.800 --> 00:11:06.880 and encourages career orientation while meeting Honeywell's goal of being a leading 98 00:11:06.880 --> 00:11:14.000 multinational high technology and services firm. That's Honeywell's pay philosophy.