An EPIC story and teachings from Novartis India
In 2018, Novartis became the first pharmaceutical company to join the Equal Pay International Coalition (EPIC). The organization made four initial commitments to achieve gender balance in management and ensure pay equity and transparency for all employees globally. India was one of the final countries to roll out pay transparency in time for pay conversations at the start of this year. Today we unveil the behind-the-scenes of this seismic social and business change.
In September 2018, Novartis made four specific commitments to help close the overall gender pay gap and set an example for other organizations to follow, thereby driving change in society more broadly. These included achieving gender balance in management, monitoring pay equity with global consistency, removing the use of historical salary comparisons from their internal and external job offer process and creating pay transparency. All in time for people’s pay conversations at the beginning of this year.
The global organization is continuing to strive for progress. This is why in September 2023 Novartis renewed its pledge. The organization is committed, by the end of 2027, to maintain gender balance in management, constantly review their HR practices to eliminate any further potential sources of bias, make the requirements of the new EU Pay Transparency Directive the global minimum standard for pay equity and transparency and embed appropriate KPIs into the business goals where appropriate and in accordance with applicable laws of each country in which we operate.*
As Novartis is expanding their remit toward the renewed commitments, there is a lot we can learn from the challenges and opportunities that the local implementation team in India faced, and their experiences. That’s why today we unveil the behind-the-scenes preparations that the local Novartis India team did before the big launch.
What were the biggest challenges in India?
Hemang Pareek, Rewards Head Novartis India - “From a cultural standpoint, there are a lot of stigmas around how one’s compensation is perceived. People are very private about their salary and are not comfortable talking about it. Novartis is one of the very few organizations in India implementing this and has no precedence in the market. Frankly, we had colleagues fearing that this implementation might conclude with attrition rates being negatively impacted.
The biggest challenge was breaking the stigma and ensuring that people have the maturity to take the newly available data on their compensation letter as something useful for them, to have meaningful conversations with the leadership to ensure how they can grow in Novartis.”
With a workforce of over 8,000 employees from diverse cultural backgrounds, ensuring pay transparency and gender balance for Novartis in India was crucial for the organization. And for doing so, the team focused on a methodical change and training approach, managing to cover more than 80% of the people managers with interactive educational experiences.
Neha Awasthi, Change Lead for EPIC in Novartis India – “One of the primary challenges was fostering a mindset shift. We aimed to build trust and accountability through open conversations about compensation. For instance, we conducted Train-the-Trainer workshops where leaders, identified as EPIC champions, were equipped with a thorough understanding of the EPIC pledge, rewards philosophy, and the intricacies of external benchmarking processes. These workshops provided a hands-on platform for role-playing exercises, enabling champions to navigate pay conversations effectively.
Employee engagement was another significant challenge. Disengagement posed a risk of increased attrition rates. To maintain motivation and commitment during the transition we implemented a location-centric approach, spanning workshops across Hyderabad, Mumbai, and Genome Valley offices. This approach ensured that the EPIC pledge was not just a policy but a lived experience for all employees.
Addressing concerns, debunking myths, and garnering buy-in from stakeholders at all levels were essential. We held multiple sessions to address these issues and ensure everyone was on board with the changes. This meant alignment at country leadership level and cascade through champions in all the pockets of the organization.”
What helped move the needle in the right direction?
Neha Awasthi, Change Lead for EPIC in India – “Taking a flashback back in 2018 we have started to discuss the possible changes, but the Pandemic was hitting hard India, we then had many other business priorities and changes to implement and less than one year before the official live date we have started to really prioritize this fully. I still remember my very first task: create a team. Budget allocation during mid-year reviews was crucial. This not only addressed immediate concerns but also demonstrated our commitment to fair pay practices. Then, we had a top – down approach to trainings. With the help of 50 EPIC champions, as well as sponsors from all business levels, we’ve managed to educate and inform not only leaders and managers, but also individual contributors. The goal was to all have the right information on benchmarks, peer ranges, and external ranges, empowering them to make informed career decisions.”
The big moment: pay conversations
We were curious to learn more about how the pay conversations went in India. That’s why we reached out to Ganpat Anchaliya, Head NOCC FRA Operations Novartis India and Vrishty Rustagi, Director DDIT US & India, Novartis India. What were their first thoughts when having the enriched compensation letters and how did the conversation go? Let’s hear it from them.
Ganpat Anchaliya, Head NOCC FRA Operations - “Compensation is a personal element for everyone and it's a very important one as well, many times people have their own perceptions around this. Bringing PIR transparency and authenticity is a game changer in how we operate. No other company has brought this transparency to its associates in India and with such a large associates set up, there were many unknown and risks to be managed when rolling out EPIC. There were multiple trainings planned, as none of us were 100% prepared for the live conversation. We had, I’d say, positive and negative reactions from individuals. For example, one of my direct reports found out that he was at a lower level of PIR compared with benchmarks. He started to believe that he was not paid reasonably well. After having detailed discussions on how all factors, such as complexity and impact of the role, play a role in benchmarks placements, he understood the situation well and was satisfied with the additional information and clarifications. But yes, there were some of these complex initial reactions. In general, we saw positive reactions and reflections from our people post sharing the PIR information, and i must say that the well planned and delivered trainings from our P&O teams played the most important role in this.”
Vrishty Rustagi, Director DDIT US & India – “The implementation had a very gradual, progressive approach. We were preparing for it for some time. The enrichments bring a lot of transparency in terms of where does one stand. I am also a people manager, and I feel this level of transparency for individuals is removing all the possible rumors and paves an open and transparent discussion around concerns, but also what might be the next step and development plans.”
In India, where diversity thrives, the topic of pay carries a spectrum of emotions. The change efforts were not only to upskill and socialize the EPIC pledge among leaders and employees but also to make a mindset shift: from managing the change to celebrating pay transparency.
As Neha, the Change Lead for EPIC in Novartis India is concluding: “This holistic approach to pay equity and transparency has helped us foster a culture where employees feel valued and empowered, ultimately contributing to a more inclusive and equitable workplace.”
*Novartis policy requires that all employment decisions are based solely on job-related factors, including the skills, qualifications, and experience of the candidates for the role, without regard to gender, race, ethnicity, or any other personal characteristics which are unrelated to the job. Novartis, as a global company, complies with the laws of each country it operates within.