Our vision for a healthier world begins with patients and extends to our employees. We know that when our employees are healthy, not only do they enjoy their own lives more but they help create healthier communities, a healthier environment and a healthier company. It’s more than just competitive medical benefits. We believe that a rich culture of health — including preventive health — is the key to fully contributing, healthier employees. This belief also extends to ensuring we have diverse, inclusive and safe workplaces. From offering comprehensive health assessments and providing incentives for healthy behaviors, to offering continuing education and providing opportunities to build meaningful careers, we promote mental, physical and social well-being for all of our employees and their families.

Better HealthBetter Health for Our Employees

McKesson is in the business of better health, and that starts with our workforce. Together, we create a culture focused on health, with a Total Rewards package that advances the physical, mental, financial and social well-being of our employees and their families. We focus on engaging all our employees, starting with each individual employee and extending to our Executive Committee and CEO.

The features of our Total Rewards package for McKesson U.S. employees and their families include:

Mental Health

Health Assessments

  • Health risk, mental well-being and physical activity assessments
  • Biometric screenings available on-site or through laboratories in the community
 

Computer Mouse

Web-based Resources

  • A single online hub for healthcare benefits and a wellness portal (online and mobile access)
 

Fitness Shoe

Lifestyle Programs

  • Employee assistance program: telephonic and face-to-face counseling, legal and financial consultations and work/life assistance for child and elder care
  • On-site fitness centers, gym rebates and discounts and a free Fitbit Zip™ for every employee
  • Free Weight Watchers® membership and weight-loss rebate
  • Discounts on healthy food purchases at grocery stores
  • Free annual flu vaccine for employees and their dependents
  • Free smoking cessation program
 

Conversation

Employee Engagement Program

  • Site-specific wellness events and activities supported through a robust network of McKesson Wellness Champions
  • Ongoing wellness competitions and challenges
  • Wellness events integrated with corporate social responsibility programs
  • Incentive structure that rewards employees for healthy behaviors and outcomes
  • Ongoing communications through a variety of channels, including social media
 

Other components of the Total Rewards package include dental and vision coverage; disability, life and accident insurance; and participation in flexible spending accounts or health savings accounts.

Vitality ProgramVitality Wellness Program

Vitality is a corporate wellness program that helps employees set and achieve their wellness goals. Whether employees are already physically active or looking for opportunities to become more active, the Vitality wellness program provides an avenue for employees to create their own personal paths to better health.

When employees engage in qualifying activities, not only do they improve their health but they also earn Vitality Points™ that can be redeemed for rewards such as fitness devices and gift cards. Vitality Points also drive an employee’s Vitality Status. The higher the Vitality Status, the greater the savings employees receive on their McKesson medical plan.

Parental LeaveParental Leave

McKesson's parental leave policy for all full-time U.S. employees now covers partners of both sexes in all states and includes birth parents, same-sex couples and adoptive parents. It provides the primary caregiver six weeks of 100% paid leave and the secondary caregiver two weeks of 100% paid leave. New mothers also receive six weeks of disability (maternity) leave for vaginal birth and eight weeks of disability leave for cesarean section. In Canada, McKesson supports new parents through a supplementary maternity benefit plan that is part of McKesson Canada’s employee benefits offering.

Health and Wellness in Canada

The health promotion program in Canada is designed to improve the health of our employees and their families. Using a holistic and integrated approach, our corporate wellness program focuses on physical, mental and financial health. The program is built on four tenets: promoting preventive care, encouraging executives to lead by example, empowering employees to manage their health and holding employees accountable for improving their health.

McKesson Canada offers the following to all benefit-eligible employees:

Annual Health Review

Annual Health Review

The employee health review combines an online medical and mental health questionnaire with biometric measurements and a blood draw.

Flu Vaccination

Flu Vaccination

Free annual flu vaccines are provided at the workplace or reimbursed if received elsewhere.

Employee Assistance Program

Employee Assistance Program

Available 24/7, the EAP offers counseling, health coaching and nutrition services, as well as various types of consultation.

Interactive Wellness Program

Interactive Wellness Program

  • Site-specific health events supported through a network of employee Wellness Champs.
  • Sprout wellness portal to track fitness and wellness activities.
  • Health challenges with opportunities to win prizes.
 
Fitness Club Discounts

Fitness Club Discounts

Employees can take advantage of savings at leading fitness chains in Canada.

All people managers are required to complete a mandatory 3-hour mental health training within their first year with McKesson, as well as an additional 2.5-hour training in the following year. The purpose of this training is to help our people managers:

  • Understand and recognize mental health issues, maintain contact during the disability period and prepare for work reintegration
  • Learn about best practices to improve presence and quality of work, manage work attendance and develop personalized action plans for employees
Creating Opportunities for Employee Success

McKesson seeks opportunities to create excitement among our employees about their careers. We invest heavily in employee growth and development through rewarding job assignments, one-on-one development with managers and opportunities for continued learning.

During FY17, we hired more than 6,200 employees in the U.S. and Canada. More than half of our employees in the U.S. and Canada have been with the company five years or longer.

Performance ManagementPerformance Management

Our performance management process serves as a structure to aid employee-supervisor collaboration while rewarding strong performance. In FY17, 91% of our North America associates received a year-end performance evaluation. The goals of this performance management process are to:

  • Create consistency across the business for managing, measuring and developing individual performance
  • Align individual objectives and expectations with business goals
  • Measure employees’ achievements and document how they attained them
  • Foster employee development and coaching by encouraging communication between managers and employees
  • Differentiate rewards based upon performance results and competencies
  • Recognize the relative contribution of individuals

McKesson also considers compensation to be a vital tool for communicating performance expectations, improving productivity and rewarding employees for their contributions to the company’s success. Whatever their title or role, each employee is a catalyst in a chain of events that helps improve the healthcare of millions all over the globe. That is why we believe it is important to recognize and reward strong individual and team contributions that help drive innovation and solutions that promote better health for all. We believe that our Total Rewards package helps to attract, retain and motivate a high-performance workforce, gives employees the opportunity to share in ownership of the company, and remains flexible enough to meet the different needs of our diverse population.

We expect senior leaders to be proactive in recruiting and retaining diverse teams. As an incentive, McKesson has tied diversity goals to the compensation of our leaders.

Training HoursContinuing Learning

McKesson complements our performance management process with learning opportunities offered by the McKesson Center for Learning (MCL), an internal corporate training and employee development group. In a typical year, MCL offers approximately 750 instructor-led classes to help employees keep their skills current, expand their knowledge and prepare for the next step in their careers.

In FY17, McKesson employees in the U.S. and Canada completed 529,824 hours of management, professional development, technical and other employee training. Since not all employees are able to attend MCL classes in person, employees may also take advantage of live training via WebEx and Telepresence technology, as well as a wide array of on-demand online training resources. MCL will introduce learning solutions to our Celesio business in FY18, beginning with Italy, Norway and Slovenia.

Educational AssistanceEducational Assistance Program
Our educational assistance program provides financial assistance to employees who take advantage of external higher education opportunities to enhance internal career growth. McKesson provides up to $5,250 annually in tuition assistance for full-time employees in the U.S., with no lifetime maximum. A similar educational assistance program is available in Canada.

In FY17, McKesson disbursed $2.75 million toward tuition assistance for 589 employees who participated in this benefit. In addition, we offer employees and their immediate family members discounted tuition costs and reduced time to degree completion through McKesson’s partnership with Kaplan University.

Safe SecureA Safe, Secure and Healthy Work Environment

At McKesson, we place the utmost importance on safety and security for employees and customers alike. Our employees and management ensure our work environments are safe and the products we deliver to our customers are secure. Since McKesson is a leading distributor of pharmaceuticals in the U.S., Canada and Europe, product integrity is a priority for our company.

We believe that it is responsible, sound and efficient management to incorporate proven health and safety principles into all phases of our operations, and we emphasize these as integral components of prudent business practice. We also understand that the responsibility for workplace health and safety must extend to all workplace parties. Our Corporate Security and Safety Department continually assesses our operational environment to identify potential threats. This continual and in-depth assessment allows us to implement appropriate protective measures to prevent and mitigate identified risks. We employ industry-leading security and safety procedures and equipment in the areas of physical and electronic security.

A formal security and safety assessment program ensures our facilities perform operations in accordance with established security and safety standards. We routinely assess all of our key facilities to assist facility leaders with identifying vulnerabilities in their security/safety programs. A report documents each assessment, and each facility prepares action plans to proactively address all findings promptly.

Standards and procedures are in place to help ensure our facilities take steps to proactively address risks and prevent injuries. We prepare a leader Safety Indicator Dashboard monthly to measure conformance to these standards. In FY17, our distribution centers achieved a 98.1% effectiveness rate in executing core injury prevention programs, including joint health and safety committees, periodic self-inspections and employee safety training. This rate is largely consistent with the previous fiscal year.

FY17 Safety and Security Highlights

During FY17, our Corporate Safety and Security team advanced a number of environmental health and safety programs:

  • Implemented a security and safety information management system to improve access to data and resources and provide greater collaboration, analysis, reports, dashboards, task scheduling and tracking functionality.
  • Implemented a Hazardous & Regulated Waste Management program to help all distribution centers manage waste in an efficient, cost-effective and compliant manner. Achieved 91% utilization with the preferred waste services vendor in our first year.
  • Created e-learning modules and employee training curricula for the Hazardous & Regulated Waste Management program and hazardous material transportation that support effective and compliant employee certifications.
  • Revamped our new employee security and safety orientation training and onboarding programs.
  • Updated our Workplace Violence employee training video.
  • Achieved recertification for our powered industrial truck operators to reinforce safe operating practices and meet U.S. Occupational Health and Safety Administration (OSHA) regulations.
  • Administered a Security and Safety Awareness Program and National Safety Month Campaign, with more than 73,000 awareness tutorials viewed by McKesson employees.
Safety Training

Educating leaders and employees is the foundation of our security and safety programs. Training and education drive awareness and foster a “working together, protecting together” culture.

Training ModulesOur comprehensive safety training programs educate employees at all levels on both general and specialized safety roles and responsibilities. Through these programs, employees learn to identify and control potential hazards they may encounter in the workplace or at home. Employees receive orientation and ongoing instruction on safe work practices throughout their careers as they experience changes to their responsibilities, equipment usage or environment.

We promote security and safety within our offices and distribution centers through annual multimedia campaigns, which raise security, safety and information protection awareness, and through our Safety and Security portal. We evaluate comprehension and engagement through quizzes and employee surveys. We continually update our training. For example, in FY17, we produced or enhanced the following training modules: New Employee Safety and Security Orientation, Annual Safety Refresher, Supervisor Safety and Safe Lifting and Pre-shift Stretching. During FY17, our employees completed more than 62,000 training modules, a year-over-year improvement.

Training Modules Completed: FY16 – FY17

 

Category

FY16

FY17

Safety Refresher Training*

18,203

21,306

New Employee Safety Orientation

6,208

7,180

Regulatory Safety Training (Hazard Communication, Lockout/Tagout, etc.)

1,743

2,543

General Safety Training

1,394

3,605

Supervisor Safety Orientation

728

843

Workplace Violence Training (U.S. only)**

4,365

26,700

Environmental Training

4,365

26,700

Total

33,124

62,319

Reducing Workplace Injuries

To address the rate and severity of exertion-related injuries, we maintain a Safe Lifting and Pre-shift Stretching program for our distribution center employees, and we emphasize ergonomic design in workstation layouts. In offices, a workstation assessment and modification process helps identify and correct undesirable design features. A Slip, Trip and Fall Prevention campaign emphasizes general housekeeping, holding handrails on stairs and avoiding “distracted walking.” Our Safety Observations Program reinforces safe work practices and addresses at-risk behavior relating to the top injury types above.

Injuries USInjuries TypesInjuries CA

Looking ahead to FY18, Corporate Security and Safety will continue to focus on building a culture of safety, with an emphasis on caring for our people. As part of this work, we will emphasize the critical role of the supervisor and the importance of coached conversations with employees. We are also continuously evolving our Safety Indicator Dashboard, with the objective of improving the correlation of leading indicators to actual safety performance. “Working together, protecting together,” we will continue to provide a safe and secure work environment for our employees and, by extension, for the customers who depend on us.

Diversity InclusionDiversity and Inclusion

We believe a diverse workforce is a fundamental building block for creativity and innovation. That’s why we have designed and implemented strategies in the U.S. and Canada to ensure our workplaces are diverse and inclusive.

Diversity and Inclusion in the U.S.

McKesson’s progress on diversity and inclusion in the U.S. is guided by the Diversity Blueprint Strategy we implemented in 2014. Our goals are to increase the number of people of color and women at executive and mid-management levels and veterans and people with disabilities at all levels of the workforce, and as detailed in our FY17 U.S. Diversity and Inclusion Report, we have made sustained progress toward these goals.

We focus our efforts on five key drivers of diversity:
  • Increased diversity on external interview slates
  • Development and engagement of people of color and women
  • Engagement and retention of veterans
  • Increased consistency across McKesson’s U.S. business in identifying people with disabilities as job candidates
  • Diversity measure on our corporate scorecard focused on market parity

The Diversity Blueprint provides visibility and clear metrics, enabling our leadership to make progress on reaching market parity for key historically underrepresented populations at critical leadership levels.

The diversity of our workforce in the U.S. reflects that of the country:

65% White

White

U.S. Demographic Census Data (2010): 67%

35% POC

People of Color

U.S. Demographic Census Data (2010): 33%

53% Women

Men

U.S. Demographic Census Data (2010): 49%

47% Men

Women

U.S. Demographic Census Data (2010): 51%

Business Units Take the Lead on Diversity and Inclusion

In the U.S., McKesson’s diversity and inclusion (D&I) efforts have shifted from a corporate-led to business unit-led model, which embeds D&I more deeply into our organization.

Our Medical-Surgical and U.S. Pharmaceutical business units and Corporate functions took the initiative to complete a Diversity Blueprint Assessment, designed to clarify and uncover key areas of opportunity in workforce representation.

  • Medical-Surgical: Following the assessment, Medical-Surgical created a three-year strategic plan that includes a talent acquisition component focused on diversity representation and advancement goals. This new infrastructure puts more focus on developing leaders within McKesson and reducing reliance on the external talent market. Through this commitment and these efforts, Medical-Surgical achieved its FY17 D&I goals.
  • U.S. Pharmaceutical and Corporate: McKesson’s senior human resources (HR) leader for U.S. Pharmaceutical and Corporate saw an opportunity to expand the D&I conversation outside of HR and gathered a cross-functional team to serve as a Diversity and Inclusion Steering Committee (DISC). With guidance and support from the DISC, these two organizations built customized action plans for each department. They also held three diversity summits, which collectively engaged more than 140 leaders, inspiring them to feel a sense of ownership for D&I and to translate their ideas into action.

While the assessments provide important clarity on each business unit’s workforce representation and goals, our D&I efforts are also accelerating due to a deep personal commitment to diversity on the part of business leaders. Through McKesson’s involvement with national programs that focus on underrepresented populations — such as the Executive Leadership Council, Women in Leadership and the National Association of Asian American Professionals — leaders have personal experiences that shape their thinking and inspire their passion for diversity. Many of those leaders have volunteered to sponsor employee resource groups, voluntarily raise their own accountability for diversity goals and find new ways to drive diversity and inclusion in their businesses.

Employee Resource Groups Support Our Business and Engage Our People

ERG ChaptersEmployee resource groups (ERGs) are our primary tool for employee engagement around diversity and inclusion. ERGs provide network, professional, career development and community service opportunities. Their members discover new ways to help our business and people thrive.

In FY17, the number of ERG chapters increased 28% to 37. More than 15% of U.S. employees belong to an ERG. The executive sponsors for the groups come from across McKesson's business units and corporate functions. National ERGs are centered on African-Americans and Blacks, Asian Americans and Pacific Islanders, emerging professionals, Latinos, LGBTQ and straight allies, military and veterans, and women.

We added an eighth ERG in FY17 for employees living with physical or cognitive disabilities and those who support the disability community. U.S. Department of Labor statistics show that in 2016, 17.5% people living with disabilities were employed, compared to 65% of the general population. Creating an inclusive culture supported by accessibility is important as McKesson works to grow our number of employees with disabilities and reduce stigmas inside and outside the workplace.

Disability CommunityERGs have also played an important role in McKesson’s real estate strategy. When our U.S. Pharmaceutical business unit decided to relocate its headquarters from San Francisco to Las Colinas, Texas, leadership worked with Talent Acquisition and D&I to develop an ambassador program. ERG members in San Francisco worked with their counterparts in Las Colinas to connect potentially relocating employees with local employees who share similar interests and represent similar communities. The goal was to ensure employees felt welcome as they visited Las Colinas to consider the move and assist those who choose to relocate.

The OWN IT ERG championed McKesson’s expanded U.S. parental leave policy, which took effect in FY17. To learn more, see “Good News for Expectant Parents” earlier in this section.

To learn more about McKesson’s diversity and inclusion initiatives and the progress achieved toward our goals, visit the FY17 U.S. Diversity and Inclusion Report.

Diversity and Inclusion at McKesson Canada

Building a diverse and inclusive culture begins with a diverse workforce. We do this via education, engagement and communications. Over the last year, McKesson’s U.S. and Canada teams have developed a strong framework to position McKesson’s Diversity and Inclusion Strategy. We have identified and deployed several diversity initiatives based on McKesson Canada’s needs and realities.

In addition to conducting an annual employee engagement survey to collect feedback from employees on a number of topics, including diversity and inclusion, McKesson continued our “ThisIsHow” campaign in FY17. This initiative allows us to collect and share stories from our people on our culture, diversity, values, leadership framework and community involvement. Quarterly videos inform our employees, get them engaged in our strategies, celebrate our successes and connect employees with our senior leaders.

Promoting Self-Identification Programs

Self-identification provides McKesson Canada with important benchmark data as we analyze our workforce for internal and government reporting and develop our diversity and inclusion programs.

In Canada, self-identification follows the categories used by Statistics Canada in connection with the country’s Employment Equity regulations, that is, women, visible minorities, aboriginals and people with disabilities. All employees are invited to self-identify through a questionnaire available online. Our response rate rose to 87% as of March 31, 2017.

Leadership Development Programs

McKesson Canada developed and deployed a suite of leadership development programs that combine best-in-class training and individualized and group coaching offerings. The diversity of participants, the training content and 360-degree assessments help our leaders appreciate, embrace and include diverse perspectives into their own development while adopting inclusive leadership practices.

Our talent review process also focuses on our commitment to develop high potential women. McKesson Canada sponsored a cohort of McKesson women participating in 100 Days Challenge at l’Effet A, a movement in Quebec aimed at promoting women’s ambition and grooming them to become more assertive, risk-taking and influential.