Our performance and talent management processes ensure we:
We have invested in performance, engagement and development programs to enable and encourage managers to define specific and measurable objectives, give and receive feedback, and accurately appraise results leveraging a five-point performance management scale that provides flexibility to managers in assessing performance and rewarding superior performance. Mid-year and year-end performance discussions are pivotal conversations for managers and employees to align on performance outcomes and adjust behaviours as needed. We provide managers tools and coaching to ensure that feedback and developmental coaching occurs throughout the year and is not limited to these two conversations.
Development planning is an important aspect of performance management and is encouraged for all professional staff, involving structured discussions to identify development needs and actions, and opportunities to learn.
Our annual global talent review process, covering all sites and businesses, acknowledges high-potential employees in a global forum and facilitates further input on talent assessment and development from senior executives outside the employee's business/site.
CSL invests in the development of its managers through global and local programs. These programs include Management Essentials, Situational Leadership, Early Career Development Programs (through internships and apprenticeships), executive leadership summits, mentoring for multiple levels of leadership and next generation talent, online learning programs for managers in our Plasma business and several local programs focused on site-specific leadership development needs.
Additionally, this year we began the implementation of HR2020, a comprehensive program that will establish the foundation and infrastructure required to achieve our overall strategic objective of attracting, developing and retaining the best talent. This program entails a new HR operating model, the establishment of three HR service centres in Australia, the US and Switzerland, and the investment in Workday, a leading practice human resources system.
CSL is a global organisation with operations in more than 30 countries, and is somewhat unusual within the Australian Securities Exchange (ASX) as to the truly global nature of our operations. Over 90% of revenue and profit is derived outside Australia. Seven out of nine of our key management personnel are now domiciled outside of Australia, including our CEO.
Attracting and retaining highly skilled executives who can successfully lead complex and demanding operations around the world is critical to our future success. As such, it is important to pay our executives competitively in the geographies in which they are hired, live and work.
As a consequence we need to, and have, a clear strategy to ensure that remuneration practices are appropriate, appealing and competitive in each of the locations in which we operate.
In the past, CSL's remuneration practices have been based on a long-standing Australian model, with progressive, independently benchmarked modifications made over time to accommodate some overseas market remuneration practices. This is no longer sustainable for obtaining the best talent for our business. We need to hire and retain the best people for our business, on terms that are fair, equitable and competitive in the markets in which they live and work.
CSL believes its remuneration model is closely aligned with providing long-term value to our shareholders. To this end, we will continue to communicate our remuneration policies and approaches to all shareholders.