It is the policy of the company to pay salary rates that compare favourably with those paid for equivalent jobs by progressive companies in our competitive employment market. At the same time, salaries will reflect the value of the position to the company and the proficiency with which employees perform their duties.

Competitive benchmarking is done on an annual basis as are internal and external equity reviews to ensure that our employees are paid fairly. Annual programs are in place to ensure that merit and performance are appropriately recognized and rewarded.

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Comprehensive Bonus Programs:

Bonus programs are in place throughout all levels of the organization to recognize the contributions that employees make to the achievement of business results and individual objectives. Eligibility for bonus programs varies by the type of position within the organization but include:

• Cash bonus programs
• J&J (Johnson & Johnson) Stock bonus
• J&J (Johnson & Johnson) Stock options

Recognition Programs

It is often the simple day-to-day things that people do that have the most impact. Our recognition program recognizes all manner of accomplishments and contributions ranging from simple "thank yous" to more comprehensive award programs. We constantly strive to create an environment and culture where all employee efforts are recognized.

Flexible Benefits Program

Janssen-Ortho has designed its benefits program to be flexible and tax effective to the employee. One of the main ideas behind a flexible benefit plan is individual choice. Our program supports the concept that all of our employees are unique with different needs and lifestyles. With our Benefits By Design programs, you have the ability to tailor a program of benefits that meets your personal health, dental, disability, insurance and pension needs.

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Other Benefits and Company Programs:

Janssen-Ortho is committed to fostering a creative, productive and safe work climate for all employees. We have a number of programs and policies in place to ensure a focus on quality of employee work life. Some of these programs include:

• Business casual dress environment
• Flexible working arrangements
• Summer work hours
• Balancing work and family initiatives including job sharing, extended family leave, etc.
• Maternity leave top up benefits for 18 weeks
• Year end holiday closing
• Employee and family assistance programs
• Subsidized dining room and free parking (applies to head office based employees only)
• Computer loan program
• J&J (Johnson & Johnson) Stock purchase program
• Group RRSP
• Vacation programs, including vacation accrual options
• Employment equity initiatives aimed at ensuring respect for all of our individuals
• Educational tuition loans

We take the spirit of the Credo very seriously and do our best to apply all elements from it on a day-to-day basis. Our commitment to employees is built into each and every program and policy utilized within the company

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Learning Strategy:

The successful execution of our business strategy and vitality of our business depends on the skills, talent and competencies of our employees. Janssen-Ortho believes that high performing employees are a vital business asset and are critical to the long term success of the company.

We offer a variety of internal training and development opportunities in job-specific areas. Programs are defined as core or elective for each job in our organization. Core Programs are defined as those values, skills, and knowledge that are fundamental to our business success.

We want to help employees perform to the best of their abilities and that also includes helping them to stay abreast of the latest in computer technology. At Janssen-Ortho, we also encourage and support attendance and participation at external conferences and training and development programs.

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Performance Management and Development:

Janssen-Ortho's performance management system is designed to ensure that each employee is working to meet corporate, department and team objectives.

Employees are expected to play a role in career planning by identifying skills, interest and values, discussing expectations with their manager and seeking information about career options in order to set goals and take action.

Key Result Areas are mutually agreed upon with your manager each year. Along with "job standards", "Key Result Areas" form the criteria upon which all employees' performance are evaluated.

Performance Reviews are conducted on an annual basis. As well, managers provide feedback, on a regular basis, and coach employees to reach their goals.

Managers and employees working together, clearly aligned and focused on development, ensure that our corporate and individual goals will be achieved.

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Educational Assistance Program:

Janssen-Ortho recognizes the role that continuing education plays and encourages and supports those employees who wish to develop their skills through the pursuit of additional education and learning.

Employee development is emphasized and supported through the Tuition Aid Program in which employees are reimbursed 100% for successfully completing job-related educational course

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