Tyco Healthcare

Finding Talent: New Initiatives for Sourcing,

Vetting and Hiring Employees

Ari Gordon Corporate RecruiterTyco Healthcare

Tyco Healthcare

Fast Facts about Tyco Healthcare

Who we are…

• A large global healthcare company committed to sustaining strong margins and cash flows while making investments for growth

• One of the largest medical device and disposables companies in the world at $9.1 billion with industry leading profitability margins

• 40,000 employees in nearly every country worldwide with an expanding presence in emerging markets around the world including India and China.

• R&D funding was increased by nearly 40% in 2004 and this investment should double over the next few years

• Over 80% of total sales derive from products in either in a # 1 or # 2 position in their respective categories.

Tyco Healthcare

What we make…

• A vital provider of products including advanced surgical tools and supplies, sutures and wound care, needles and syringes, contrast media for diagnostic imaging vascular therapy, respiratory care and generic pharmaceuticals.

• Key Brands: Kendall, Auto Suture, Syneture, Valleylab, Radionics, Mallinckrodt, Nellcor, Puritan Bennett.

• Medical, surgical, electrosurgical, respiratory therapy and imaging products are supplied to some or all of the following:

acute care facilities - nursingacute care facilities - nursing homes - rehab centershomes - rehab centersambulatory surgery centers - physician officesambulatory surgery centers - physician offices

• Retail/Private label products featuring incontinence and feminine hygiene are sold to the largest retail chains and mass merchandisers operating in the U.S.

• High quality products with instant recognizable name that provide the basis for improved patient outcomes

Tyco Healthcare

What we excel at…

• Market leadership in key product areas provides a platform for new technologies and products.

• State-of-the-art manufacturing capabilities and highly trained sales force delivering first class products worldwide.

• Six Sigma – 110 active teams with over 2400 trained employees who delivered over $272 million in operating income benefit – net of incremental investment. In working capital, this 8 day improvement had a $900 million impact and could exceed $3 billion by 2006

• A recent integration process in every aspect of the business resulted in $151 million in operational excellence savings.

• It is more than just about cost cutting – it’s about implementing high quality, thoughtful products that result in better healthcare products - and healthier lives.

Tyco Healthcare

The Benefits of Separation

Greater Potential for Long-Term Value as Greater Potential for Long-Term Value as Three Independent CompaniesThree Independent Companies

• Each entity will set their own strategy for:

– Acquisitions

– Alliances

– Resource allocation

– Research & development spending

• Strategic and day-to-day business decisions will be based on specific industry dynamics

Electronics Electronics

Healthcare Healthcare

TFS/TEPS TFS/TEPS

Tyco Healthcare

Great Long-Term Value Potential as an Great Long-Term Value Potential as an Independent CompanyIndependent Company

• One of the largest diversified healthcare companies

• Strong operations and cost management capabilities have produced industry leading margins

• As an independent company, better able to:

– Attract top healthcare talent

– Negotiate licensing deals

– Compete for strategic acquisitions

Tyco Healthcare

Sourcing Candidates

• Staffing Plan– Newly Created Functions 200 – 300 new positions– Understand what we have, what we need to have

• Recruitment Strategy– Internal candidates; growth from within– Normal postings via ATS– College interns/Co-Ops

Tyco Healthcare

Sourcing Candidates

• Internet Resources currently used:• Applicant Tracking Systems; main job boards

• Niche Web Sites, Associations

• Internet Resources being explored:• Adwords via Google, search engines• Web Logs

Tyco Healthcare

Sourcing Candidates

• Agencies:– Contingency/Retained:

• Leverage company size• One central database, able to better partner• Centralized point of contact• Job Bundling• Executive search

– Research Firms:• Name Generation• Candidate pipeline

• Diversity Recruitment:• National Society of Hispanic MBA Conference• National Black MBA Conference• BostonWorks Diversity Career Fair• Women for Hire• InRoads: Diversity Intern program

Tyco Healthcare

US Exempt & Salaried Non-Exempt Hires by Source for 2005

Temp to Full Time 4%

Employee Referral 20%

ATS 12%

Internal 30%

Monster 10%

Internet-Other 12%

Agency 7%

Other 5%

Temp to Full Time

Employee Referral

ATS

Internal

Monster

Internet-Other

Agency

Other

Tyco Healthcare

Three Year Comparison – Hiring Percentages

Mansfield Location2004 2005 2006

Promotions/Transfers

39% 36% 42%

Employee Referrals 20% 20% 16%

Applicant Tracking Systems/Monster

18% 23% 25%

Agency Usage 15% 10% 8%

Contract Conversion 5% 9% 9%

Tyco Healthcare

Vetting Candidates

• Behavioral Interviewing– Provide training for hiring managers and interview team – Interview guide creation via usage of Lominger Competency

Model Tool with hiring manager

– Results of Interviews intended to provide:• Objective view of all involved on the interview team• Justifiable reasoning of why the candidate was the best fit

among all candidates

– Maximize each hire

Tyco Healthcare

Tyco Healthcare

Tyco Healthcare

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• Key Aspects

– Are we competitive in the market?– Have we effectively portrayed the company culture?– Have we communicated our values?

• Metrics– Quality of the hire– Turnover Rate– Diversity

Hiring Candidates

Tyco Healthcare

Hiring Candidates - Metrics

0.1% 5.7% 4.5%

1.4% 32.9% 5.1%

0.6% 1.0% 0.1%Beh

avio

rs

Performance

908 out of 1,768 hires eligible for the review process.

2005 New Hire Performance Ratings

Salaried Exempt & Non-Exempt

Tyco Healthcare

Questions?