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Human Resource Management
“Recruitment in Pepsico”
Ms. Khushboo
Ankit Kumar
MBA (Section-B)
Roll No. 6
The report is a case study carried out on Pepsi Cola. The company is an American
multinational franchise store dealing on both beverages, foodstuffs and snacks. The headquarter
of the corporation in New York City (Chirico, et al. 2010). The management of the company is
always interested in the manufacturing process, marketing and distribution of the foods and other
products. The company started in 1960 when the Pepsi-Cola merged with the Frito.-ay corporation.
Since its establishment, the store has undergone several expansions with its brand name Pepsi to a
brother ranges of drinks and foods stuffs such as kurkure and lays. One of the greatest achievement
of the company is the acquisition of the Tropicana products and the Quaker Oats company in 1998
and 2001 respectively (Chirico, et al. 2011). The acquisition added equity in its brand by involving
an special Gatorade brand.
The store has been doing well in the market for years now with continuous profitability
and minimized anticipated losses. The 22 brand of the company has been generating retail sales
of more than $1 billion in every piece. The company products are distributed in almost 200
countries of the world (Chirico, et al. 2011). The annual net value of the company ranges at $43.3
billion. Based on the performance of the company, the inner branding agencies of the United States
rated the company in the second position in the supply of beverage, food staffs in the whole world.
The distribution of the beverage and bottling company is being done by the PepsiCo. The company
is boosted by other licensed company in various regional headquarters in the globe. As at 2017,
the corporation has a total of 274, 000 employee in all the centers in the world (Chirico, et al.
2011). The employee has gotten the company at a greater place in achieving its success. However,
the Human Resource department of the franchise store has been undergoing various challenges in
the recruitment of their employees. The following discussions are some of the challenges faced by
the company and the possible recommendations that can be given to the HR department to cab the
Key Challenges of recruiting Workforce in Pepsi Organization
1. High Cost of recruitment
The cost of recruitment is always viewed regarding the cost required per hire
measurements. The employers make an effort to control these cost at all means (Dawson, et al.
2011). The fist consideration is normally placed on how the applicants are attracted, and the type
of applicant the organization is very eager to attract at each period. The method applied in
advertising the job and recruitment process should be less but with the productive outcomes. Pepsi
Cola, Human resource department, faces a lot of challenges in identifying the choice and method
of recruiting employees (Breaugh, 2017)). In most cases, the company ends up with a huge budget
of recruitment that does not match the right expectation of applicants.
The bigger part of the problem always arises when selecting the employee in remote areas.
The cost of finding the skilled and competent employees in very high as the company does not
have the strategies of accessing the applicants in a more cost effective manner (Allen, et al. 2010).
The demand for labor is high, and supply is very low in the remote area. In some cases, the
numbe4r of the applicant may be in thousand with only five employees needed. Assessing all the
1000 applicant to get the required skills and knowledge of the industrial performance takes a large
share of the Company's budget every year. The amount of expenditure in the company has always
increased consistently with the cost of recruitment being the larger contributor (Gberevbie, 2010).
This is a great challenge that has greatly affected the HR department of the franchise store over
the years.
2. Lack of diversity in Communication Networks
It is right to assume that communication is the key requirement for any employer company
to achieve success in the recruitment and retention. PepsiCo has been of many years failing to
achieve the goal of recruitment effectively. The main reason being their poor network of
communication. The large part of the communication network is focused on the major town and
regional centers that are easily accessible. The company has then found it difficult in
communicating their requirement needs to all the qualified applicant in the globe. There is a good
number of skilled expertise in the remote areas of each country who only lack the communication
of the available jobs. The company is always forced to move physically through their recruitment
team to look for the needed skills in rural areas.
The task is very costly and time-consuming. Also, the coordination between the liner
manager and the Hr department is always very poor. According to the CEO of the company, the
line managers in each department tends to give contradictory information about the types of
applicant needed. The HR then communicate to the public about the stated skills that result in
bringing unqualified personnel in the company. The wrong communication given by different
departmental managers to the HR results to the recruitment errors. The information flow is also
inconsistent from the supervisors, line manager and to the HR department. The DSuoperve3isor
may give details according to his or her perception of required talents. The line manager may then
communicate to the HR based on the policies and principles of the company. At the recruitment,
the information is always conflicting leading to selection problems.
3. The choice of employer designation and Companies image
Many employers chose the company they would want to associate with. For instance, the
company that makes best of employee and treat them well. Pepsi has not in the recent years been
able to achieve this reputation. The reason is that it has never been listed in the yearly top five list
of the organizations that treat their employees best. The company has then experienced a high rate
of turnover of the employee. Also, the goodwill and reputation of the company are not known to
many employees. Therefore, the company has been experiencing a low rate of response to their
advertisement in the social media platform. This has always provided a small range of Alternatives
when it comes to the selection of employees. The Hr department faces a lot of challenge when
conducting interviews as the number of the available applicant may not even match all the required
vacant positions. They may be forced to higher all the applicants who may be having little
knowledge about the company.
4. Problem of employee retention
The HR department of Pepsi Cola has little recognition of the employees' concerns. This
has made it difficult for the company to retain its employees after recruitment. A good number of
employee feel demotivated in first few months of work making them quit jobs. The main reason
is due to lack of proper contact between the management and the employees. In every year, the
company loses 200 employees resulting in a call for recruitment each period (Williamson, et al.
2010). The rate of turnover is extremely high, and the HR department has been making an effort
to control it. Most employees are also hired to stay in the same position for a good number of years
without any promising future of promotion. The company does not give employees challenges to
keep them motivated all the time. The Hr department of Pepsi Cola has then faced a lot of difficulty
in retaining it employees, making them introduce new faces to clients each time.
Overcoming the Challenges
1. Adopt low-cost methods of recruitments with a high labor supply
The HR management should strive to reduce the cost of recruitment in the company. The
low-cost methods of recruitment included the social media and the networking strategies. The
methods are more strategic and popular in accessing the preferred candidates in an organization.
The HR department only needs to find all the requirement of a job and post them in the social
media. For the process to be effective, the management should look for a site that gives a wide
source of applicants (Münstermann, et al. 2011). When the applicant gets the advertisement, they
normally get to the company by themselves to hand in the application. Some also do it online,
which is very advisable as it saves s time and cost of moving from place to place. The company
can then access all the applicant to identify the most needed and preferred one to come for the
interview. The methods are always effective as the company can stand a chance of getting
thousands and thousands of applicant. After getting the required amount of employees, other
applicants information can be kept to be used in the next recruitment. This will save on the cost of
advertisement and recruitment as a whole.
2. Adopt best communication strategies
Communication is a necessity to recruitment in the organization. It makes the organization
to easily access the recruitment process and achieve the desired goals. The best logic of
communication between the line manager and the Hr department can make the acquisition of the
best talents required in the management (Breaugh, 2013). The acquisition will mean a healthy life
cycle of recruiting and identifying specialized employees who are suitable for the organization
performance. Pepsi Cola should adopt a proper coordination between its line manager and the HR
department. The strategy will help them in identifying the unique characteristics that are needed
by the company (Wilden, 2010). The recruitment will incorporate policies and principles of the
Pepsi Cola, making it have qualified employees for better performance. The communication
should be maintained at a constant flow even after hiring the employees so as to make them
understand the company much better throughout the period.
3. Practice employee retention
Employees should not be hired with no intended purpose of their stay in the organization.
The company should introduce challenges that will keep them much motivated and valued in the
company (Selden and Orenstein, 2011). The employees faced with various challenges will make
them busy minded and responsible in everything that they per taking. If Pepsi offers challenges to
employees, it will provide a unique opportunity to them to improve on skills and level of aptitude.
This will make their retention more easy to the HR department. Also, the company can introduce
rewards in the form of appreciation.
The employees in most occasion feel highly value if their performance is constantly
appreciated. It makes one work more actively and very determined to achieve the organization
goals. The loyalty of the employee to the company increase that is a guarantee to their long stay in
the company (Selden and Orenstein, 2011). It is important for the HR management to involve
employees in the management function. The employees will have a better chance to raise their
concerns to the management and their expectations. The management can also recognize the needs
of employees quickly and solve them accordingly. This promotes the relationship between the
employee and management, leading to a long retention.
4. Creating a huge goodwill of the company
The company should put much effort into practicing a good employee management and
treatment. The level of employee treatment will help build the image of the company to the public
(Gault, 2010). If the company finds itself listed among the top companies when it comes to treating
employees, it stands a high chance of securing applicants in every part in all the parts of the world.
The company should strive to become the best employer in the labor market. This will increase
the level of labor supply to the company and the number of applicants that respond to the adverts
of the company. Also, the rate of employee turnover will reduce, bringing excellent benefits and
good image of the company. The company with high retention of the customers has a successful
history of performance and high rate of customer flow. The image of the company is very
important in the labor market. The good image will render the company relevant without in the job
market and the entire population of the world.
Pepsi’s ACT taps people with disabilities to get the job done
Pepsi ACT (Achieving Change Together) is a joint partnership between Pepsi Beverages and
Disability Solutions @Ability Beyond to enhance the recruiting, sourcing, hiring, and training for
people with disabilities, including veterans with disabilities, throughout our U.S. business.
Since 2014, Pepsi Act has helped over 200 people with disabilities across the country find
meaningful, competitive employment at Pepsi Beverages. Among those 203 people with
disabilities, 20 percent are veterans and 15 percent are women with an average starting wage of
$18.76/hour, more than 2.5 times the federal minimum wage.
As part of the program, Pepsi ACT utilizes real-time data analysis to demonstrate the value people
with disabilities can bring to a large global corporation, including higher retention rates and
meeting or exceeding productivity levels. For example, Pepsi ACT employee retention rates range
from 68 to 95 percent, all above the national average for frontline employees.
Additionally, PepsiCo, in partnership with Disability Solutions @Ability Beyond, is investing in
the disability community by providing interview and job training in 9 U.S. cities to help people
with disabilities prepare for all levels of employment, including entry level, sales, technical and
management positions. Through 2016, 450 jobseekers with disabilities received training designed
to improve soft skills and interview skills.
In summary, the recruitment process is essential for the company performance. A well-planned
recruitment process allows for accommodation of all available skills in various societies in the
world. Successful companies have a well-structured recruitment process that is aimed at
maintaining constant performance in the industry and goodwill. The discussed recommendations
are significant for these processes and should be adopted by Pepsi to increase their performance.