Intel Investor Relations
Accountability in Action Global Citzenship Report 2002

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Accountability in Action
Social Programs & Performance
Intel employee news portal praised
The League of American Communications Professionals recognized Intel's employee news portal, Circuit News, with a Platinum Award for Intranet Newsletters. The judges praised the degree to which Intel management shares company information with its employees.
Workplace environment
Employee benefits: Stock options and an eight-week paid sabbatical after every seven full years of service. An Employee Cash Bonus Program, paid out every six months. An Employee Bonus Program, paid out annually. These are just a few of the benefits that Intel makes available to every employee—benefits not available at most other companies.

Intel's profit-sharing Sheltered Employee Retirement Plan works as a partnership between the company and the employees. Through it, the employee makes a pre-tax contribution to which Intel adds, based on an annual determination of company profitability. Over the past decade, yearly contributions have ranged between 8% and 12.5%, exceeding similar profit-sharing subsidies offered by other companies.

Intel also provides non-traditional benefits such as a retiree medical plan and a work-life program featuring childcare, tuition reimbursement, flexible work options (such as part-time, job share and telecommuting), discount programs, and resource and referral services.

At many locations, on-site fitness centers and nursing mother's rooms reflect the priority we place on health and wellness. Occupational health professionals provide support with occupational and non-occupational injuries and illnesses, "return to work" programs, Americans with Disabilities Act assistance (in the United States) and medical accommodations. In addition, a customized Mayo Clinic web site provides access to a wealth of health information and resources. Intel also offers an annual health assessment and an annual fitness challenge. How health-minded are we? In 2002, U.S. employees alone logged 1 million minutes in meeting the challenge.

Labor relations: Throughout our history, Intel has operated in a non-union environment. We believe that employees organize when management fails to keep them informed. Likewise, we believe that employees do not feel the need to organize when management responds to legitimate concerns, applies policies consistently and equitably, and provides real opportunities for advancement and growth. We believe that employees, their managers and the company reap many benefits from a well-managed workplace that is fair, responsive and open.

Keeping employees informed: In 2002, our senior leaders—Craig Barrett and Paul Otellini—addressed our employees about the state of our business more frequently than ever. Given the economic downturn, the news hasn't always been upbeat, but we took our Chairman Andy Grove's advice to heart: "The worse the news, the more effort should go into communicating it."

During 2002, we opened new communications avenues:

  • Craig Barrett now addresses employees via satellite following our earnings announcement. This way, he can provide real-time interpretation at the same time that the news media is delivering information to the general public.
  • "Exec Connect" communications include face-to-face open forums, executive Q&A sessions delivered via webcast, and updates hosted by Craig and Paul. We also post content on Circuit, our primary employee communications intranet site.
  • In 2002, we held more than 20 open forums worldwide. During these sessions, employees can ask any questions they want. The answers are honest, unscripted and direct. There is rarely an empty seat in the house.
  • Circuit News now features a "Letters to the Editor" section that encourages employees to respond to anything posted on the site. The editors post favorable and critical views alike.
  • Continuous learning: Each year, more than 10% of Intel employees change jobs within the company. With so much internal movement, ongoing skills development is a must. Employees can choose from a wide range of internal and external classes; they also receive full tuition reimbursement for job-related classes and degree programs.

    In other words, Intel encourages employees to keep learning throughout their career. Ask virtually any group of employees what they like best about working at Intel, and this is surely one of the answers they will give.

    Personal development plans: Each year, employees write a development plan and review it with their manager. The plan lays out areas for future development as well as the ways employees plan to learn their new skills.

    Learning by teaching: In 2002, more than 10,000 employees taught courses through Intel University. Employee instructors provide real-life examples that students can apply in their own work situations. Program motto: "The best at Intel teach at Intel!"

    Employee learning: In 2002, each employee spent an average of 41 hours in formal learning through Intel University. With rotation programs, internships, mentoring and earned degrees, the average goes even higher.

    Extended education: In the U.S., more than 5,400 employees took advantage of Intel's tuition reimbursement program to earn undergraduate and graduate degrees.

    Taking the reins: To help meet a critical need for top managerial talent, Intel uses two classroom tools: the Survey of Management Practices and the Survey of Leadership Practices. These tools help managers identify strengths and development areas based on 360-degree feedback. More than 7,000 managers took these classes in 2002.

    In addition to our coaching and mentoring network, well-known management professors give classroom instruction, and Intel executives teach personal leadership courses. Intel's leadership development programs include experience-based "Action Learning" projects that allow future leaders to make recommendations on real-time strategic business issues.

    Redeployment: During times of economic difficulty, managing costs is critical, and workforce reduction may become necessary. Intel's approach is atypical: We offer voluntary separation programs and support, not pink slips. Our separation packages include not only separation pay and benefits but career counseling as well.

    Since the early 1990s, Intel's redeployment program has provided employees affected by business change with up to four months of salary and benefits in addition to training and outplacement assistance. Career resource centers and learning centers also provide support. During 2002, we identified 27,000 external jobs and held 50 career events for redeployed employees. They gave us >90% satisfaction ratings on the support we provided.

    Raising issues/getting answers: Intel employees can easily raise work-related concerns. Under our worldwide Open Door process, an employee may raise a concern directly to a manager or, if he or she prefers, to Human Resources (HR), to another manager or to the Executive Office. The Open Door issue will be addressed with promptness, confidentiality and honesty. In some cases, we assign an independent investigator to research facts and make recommendations. If an employee is not satisfied with the result, he or she may appeal. If the employee has any perception of retaliation, he or she can immediately contact Intel's HR legal group for counsel. During 2002, employees raised 767 Open Door issues worldwide, 451 of them in the United States.

    Intel's longstanding companion to Open Door, the Write to Know program, allows employees to ask challenging questions anonymously and get a confidential, personal response from the appropriate Intel manager. In 2002, Write to Know received 2,294 questions and provided 2,314 responses (including a few held over from the previous year).

    Employee Data Year-End 2002
    Type Category U.S. Other Americas Asia-
    Pacific
    EMEA* Total
    Contract/ Intern Exempt Full Time 84 2 15 75 176
      Exempt Part Time 19     789 808
      Total 103 2 15 864 984
      Non Exempt Full Time 120 33 300 142 595
      Non Exempt Part Time 32 2   17 51
      Total 152 35 300 159 646
    Regular Exempt Full Time 33,904 936 7,484 6,421 48,745
      Exempt Part Time 220 1 6 108 335
      Total 34,124 937 7,490 6,529 49,080
      Non Exempt Full Time 16,191 994 9,742 3,586 30,513
      Non Exempt Part Time 90 2 1 67 160
      Total 16,281 996 9,743 3,653 30,673

    *Of the 1,023 contractors/interns in Europe, Middle East, and Africa (EMEA), 1,019 were interns (with 789 located in Israel).