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2017
Assessement of the Coca-Cola Company’s HR-
processes in regard of current trends
PHILIPP SCHEUFELE
2
Table of Content
I. Introduction 3
II. The Coca Cola Company 3
III. Recruiting and Selecting our new employees 4
The Coca Cola Company-process 4
Outlook 5
IV. Achieving high performance from the new employees 6
Incentives 6
Well-Being 6
Outlook 7
V. Achieving affective commitment from the new employees 8
Employer Branding 8
Employee Development 9
Outlook 9
VI. Issues on cross cultural management 10
Global perspective 10
Outlook 11
VII. Conclusion 11
VIII. Appendix : Coca Cola At-a-Glance 12
IX. References 13
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I. Introduction
The HR-process still belongs to one of the essentials among the company’s success factors.
As described in the assessment ‘war for talent’ published in the McKinsey Quarterly Journal
20 years ago, companies were already suffering a shortage of executive talent and that this
competition for new talents will intensify. However, just finding and hiring the right people is
not the only obstacle which was identified. The attraction and to retain the workforce is the
key. Therefore, the company needs to give the employee the opportunity to refine and create
his value proposition. Then, to attract and retain the people you need, you must create and
perpetually refine an employee value proposition. That done, you must turn your attention
to how you are going to recruit great talent, and finally develop, develop, develop!”
(Chambers et al. 1998) These principles haven’t become obsolete until today. This assignment
will take a look at the HR-activities of The Coca Cola Company and will evaluate it in
comparison to recent trends and benchmarks.
II. The Coca Cola Company
Coca-Cola is an American company with a 131 year-long tradition of producing non-alcoholic
beverages. It is in business since 1886 originating from Atlanta, Georgia serving 1.9 billion
servings a day to more than 200 countries in 2016. This makes Coca Cola the global No. 1
provider of sparkling beverages, juices, juice drinks and ready-to-drink coffee.
TCCC manufactures, distributes, and markets non-alcoholic beverages along with fountain
syrups and concentrates, such as flavoring ingredients and sweeteners. The portfolio includes
500 brands and 3,500 beverage products featuring 21 billion-dollar brands. (Appendix 1)
Coca Cola’s mission statement involves three key statements: to refresh the world, to inspire
moments of optimism and happiness, and to create value and make a difference. (The Coca
Cola Company 2016A)
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III. Recruiting and Selecting our new employees
The Coca Cola Company-process
With a network of over 700 thousand associates worldwide HR-management is fundamental
activity for Coca-Cola. The process is composed by internal and external recruitments in
which, the Coca-Cola Company (TCCC) established a common procedure and framework to
maintain quality standards to a certain level. In the external search, Coca-Cola is always on
the lookout for new talent, be it in experienced hires, the Coca-Cola graduate programme, or
the University Talent Programme.(JobTestPrep 2017) As it costs in average up to $4000 to
recruit an employee for an open position the recruitment process need to make sure the
person and its abilities are fitting perfectly to the vacant position. (The Stewart Group 2016)
As previously mentioned, the recruitment starts with being attractive to talents and
applicants. TCCC achieves this with several initiatives and a clear statement towards
employees of being part of a community with shared values and stating it is a local business
on a global scale with a unique culture and a strategy to grow from within. This means that a
new employee is fully integrated and has a variety of development programs to choose from
as well as having ‘one of a kind’ experiences like being a brand-ambassador at the Olympics
or FIFA World Cup.
TCCC puts also a lot effort into the acquisition of new talents, as they are supporting students
in the ‘University Talent Program’ or are creating new platforms like the ‘All women
hackathon’, to name two of them. Coca Cola Company’s recruitment process of external
applicants also follows a specific multi steps practice as seen below, where they want to find
the ideal candidate, who combines the attributes of ‘Creative and fresh thinking’- spirit of
collaboration-pragmatic and commercial mind set. (The Coca Cola Company 2017B)
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Source: Writer based on JobTestPrep (2017)
Outlook
The current recruitment process of TCCC combines all the features of a global player assuring
to find the right person for the position and can be seen as highly effective. TCCC can also
create the so important attractiveness for new applicants, through the popularity of its
brands, the creation of a corporate culture which values every position, as well as putting up
several initiatives. However, these things are more or less taken for granted from a global
company and lacks a certain degree of uniqueness.
The changing environment where the trend is going towards a more candidate-driven
market, where applicants are using interviews to determine if the company fits to them and
their lifestyle is one of the central topics pressuring companies to adapt. (Glassdoor 2016)
In order to respond to this development, companies need to include new digital and cognitive
technologies like VR and channels to target the new generation of talents. Platforms like
LinkedIn and Glassdoor are gaining even higher importance in the next years and are central
for the search to employees.
Here it is key for TCCC to build a digital employment brand on a defined strategy which is
recognizable and transparent to benefit from the socialized online environment where
people are sharing experiences and evaluate their employers. (Deloitte 2017)
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IV. Achieving high performance from the new employees
Incentives
TCCC’s approach towards a high-performance environment builds up on a rewarding scheme
with a clear definition of payment, benefits and development programmes. The strategy is to
differentiate from the market with a compelling package, which is constantly updated to
provide new motivation and stimulation fitting to the employees’ needs.
It also includes short term assignments avoiding a repetitive work experiences and
challenging the employee on a constant basis. The incentives are relying on the Peak
Performance System, where associates and their managers regularly discuss development,
movement and succession in an interactive atmosphere.(Wilson 2015) The main incentives
are categorized into:
• Base salary
• Annual incentives
• Long-term incentives
• Benefits
Exemplary for benefits within TCCC the recently introduced Paid Parental Leave can be
named, which was developed by the internal group ‘Millennial Voices’, taking care of the
employees’ interest and bringing up innovative proposals to extend the company’s spectrum
of services. Paid Parental leave is provided by only 30-35% of large U.S.-companies, which
gives TCCC a certain advantage in the industry. (WorldatWork 2017)
Well-Being
In 2015 a survey among U.S employees found out that 79% of the participants would prefer
additional or new benefits or perks over a pay increase.(Glassdoor 2016) Therefore, TCCC
took an introspective look at its health and well-being offerings, which span the physical,
emotional, social, and financial support. Work platform, workplace health and vitality has
recently become a core for companies to create the best possible setting for employees to
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be happy and to encourage their performance. (Food and Drink Federation 2012) In TCCC’s
case it starts with unique Co-Working offices, which are providing open spaces to enhance
group meetings and discussions in an unformal atmosphere. Nutritious & fresh food choices
in the cantina combined with initiatives and free in-house gyms are giving the employees all
opportunities to have a healthy lifestyle. In order to solve any of the employees’ concerns,
TCCC even introduced a credit union, giving financial advice and easy access to credits.
Source: Write based on(The Coca Cola Company 2016B)
Outlook
All these measures are proving to have an impact on the employees’ happiness, as TCCC
achieves a rating of 3.9/5 on Indeed based on 6,076 reviews in the last 6 years with 28% giving
a 5-star rating. (Indeed 2017) However constantly changing trends and mindsets of new
employees are challenging companies to adapt and break up old structures. In the recently
released Forbes-list of the happiest companies to work for in 2017, Coca-Cola didn’t make it
into the Top 50, whereas it was listed among the Top10 in 2012. There are several challenges
the company needs to solve to catch up with the industry leaders again. (Kauflin 2016) One
opportunity, will be the shift of generations where three quarters of the workforce will be
occupied by Generation Y and Millennials until 2025, which means TCCC needs to align its HR-
management more specifically towards their needs. In particular the current inflexible
compensation/incentives models are not well received by the new generations, as for
example the sabbatical year belongs to one of the major preferences today. The optimization
of processes and structures towards these professional generations can improve the overall
performance of the company significantly in the next years.(Amiot and Gatto 2016)
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V. Achieving affective commitment from the new employees
Employer Branding
Whereas incentives and benefits are definitely necessary features, the overall performance
of a company correlates heavily with the engagement of the employees, due to positive
attitude and commitment it is in the best interest for the company to enhance these two
factors in particular. As commitment is described as the degree of identification and
involvement that individuals have with their organization’s mission, values and goals, it is the
first step build such a strong connection. (Mowday, Steers and Porter 1979)
The entire process of creating a unique and meaningful working experience with a sense for
the bigger purpose for the employee refers to Employer Branding.
The triangle starts with the underlying mission statement of TCCC:
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference.
‘We are the brand’- One company, One Team, One passion.
This is the slogan of TCCC describing the company’s culture, where every employee can make
the difference with ideas and their creativity to make the company better every day.
Combined with Corporate Social Responsibility activities to support local endeavours and
protecting the environment, TCCC creates a community feeling among its employees. In
addition, the values are representing another layer to find a common ground for the
employees’ actions and behaviour. (The Coca Cola Company 2017B)
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Employee Development
An elevated working experience also includes the opportunities to improve the individual
position in the company as well as being respected and appreciated in the current one.
Companies with dynamic career models outperform their peers by providing continuous
learning opportunities and a deeply embedded culture of development. (Deloitte 2017) TCCC
follows the strategy and slogans of ‘Ability to Grow’ and to ‘Grow from Within’, as it puts a
lot of effort in to the development of its current employees. This includes inter alia the
internal Coca Cola University (CCU) offering a variety of virtual and physical trainings and
workshops to improve specific skills or to develop the knowledge about other business fields
within the company.
Another field is the implementation of a rewarding culture, where goals are transparent and
have an increased focus on team achievements with regularly feedback. The performance
indicators are based on skills and abilities rather on job titles, which is giving the employee a
feeling of appreciation and freedom.
Outlook
Source: (Gratton and Scott 2016)
A development evolving in the next years is assessed by Gratton and Scott, describing the
changes in the perspective of a 100 year-life. It shows that the turnover of employees
averages at 4.5 years and companies need to offer learning & development paths as well as
alternative careers to bind the workforce to the company for a longer time. Additionally the
younger generations rather see themselves in their own business in the future, creating and
developing own ideas, than pursuing a long term career in an enterprise. (Amiot and Gatto
2016)
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Here a possibility for TCCC is to promote platforms like the ‘TCCC-Start Up Weekends’ where
employees and entrepreneurs are able to bring in their personal creativity and ideas more
actively, encouraging this knowledge to stay in the company.
VI. Issues on cross cultural management
Global perspective
TCCC with its operations in other 200 countries relies on a truly global community, which can
be seen as a challenge and opportunity at the same time.(Sainte-Rose and Schult 2012)
Bringing in such a diversity of cultures gives the company an enormous potential of innovation
and local knowledge, which is of course paired with big efforts to the align these various
influences into the company’s culture. As the company promotes on its website, it belongs to
one of the central aspects of TCCC, being part of a truly diverse team and environment.
In a global HR-perspective, Andr Laurent argues that the nationality had three times more
influence on the shaping of managerial assumptions than components such as age,
education, job position, etc.(Laurent 1983) This leads inevitable to the term of ‘being global
thinking local’, which is a fundamental phrase in TCCC’s philosophy. Transferred to the HR-
management this means that local HR-manager are applying strategies adapted to the
country’s specifications. One of Coca Cola’s HR-managers claims, ‘We certainly need a
common platform and set of tools, but we also need to allow segmentation and adaptation
to different cultures – perhaps do a bit of “social engineering”.’(Sainte-Rose and Schult 2012)
The statement summarizes the balancing act international companies are going through to
build effective teams around the globe.
An example for improvement are the expatriate-packages within TCCC, which are still suited
for mainly older male managers, in which the expenses and service are covered for children
and mothers, whereas flexibility and comparable services for young single female managers
are not taken into account.
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Outlook
In a survey conducted by Deloitte in 2017 among managers, 88 percent of the participants
believe that building the organization of the future is the most important issue facing
companies in the next few years.(Deloitte 2017) This can be seen as general challenge but
specifically for the HR-processes it is a pioneering development. The successive creation of a
high performing organization with flat hierarchies, agile teams, horizontal career paths and
an efficient information system paired with a strong company culture will determine the
global success of the company as a whole.
VII. Conclusion
TCCC understands the challenges in the global HR-management and can create a wide range
of measures and initiatives to respond. The rewarding incentive system and environment
paired with the strong ‘ONE’-company culture ensures a healthy relation to the employees,
their motivation and commitment. However upcoming topics need to be assessed and
implemented throughout the entire organization on a constant basis. This involves the
change in demographics among the workforce, the related new expectations towards the
company but also new technologies. As the ‘war for talent’ won’t be less intense among the
industry leaders in the future, it is vital for TCCC to retain the image of an attractive employer
by encouraging innovative structures and unique career opportunities.
Source: (The Coca Cola Company 2017B)
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VIII. Appendix : Coca Cola At-a-Glance
Source: (The Coca Cola Company 2017A)
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IX. References
Amiot, E. and Gatto, D. 2016. What role for HR in 2020-2025?. Oliver Wyman. Available from:
http://www.oliverwyman.com/content/dam/oliver-
wyman/global/en/2016/june/What%20role%20for%20HR%20in%202020-
2025.pdf [Accessed October 27, 2017].
Chambers, E.G., Foulon, M., Handfield-Jones, H., Hankin, S.M. and Michaels, E.G. 1998. The
war for talent. McKinsey Quarterly, pp.44–57.
Deloitte 2017. Deloitte Global Human Capital Trends-Rewriting the rules of the digital age.
Food and Drink Federation 2012. Worplace Wellbeing.
Glassdoor 2016. Ultimate Recruitment Planning Guide.
Gratton, L. and Scott, A. 2016. 100-Year Life: Living and Working in an Age of Longevity.
Bloomsbury.
Indeed 2017. Working at Coca-Cola Refreshments. Indeed.com. Available from:
https://www.indeed.com/cmp/Coca--cola-Refreshments/reviews [Accessed
October 26, 2017].
JobTestPrep 2017. Coca-Cola Assessment Centre, Business Case Study and Interview
Preparation. JobTestPrep. Available from: https://www.jobtestprep.co.uk/coca-
cola-assessment [Accessed October 25, 2017].
Kauflin, J. 2016. The Happiest Companies To Work For In 2017. Forbes. Available from:
https://www.forbes.com/sites/jeffkauflin/2016/12/02/the-happiest-companies-
to-work-for-in-2017/ [Accessed October 26, 2017].
Laurent, A. 1983. The Cultural Diversity of Western Conceptions of Management.
International Studies of Management & Organization, 13(1–2), pp.75–96.
Mowday, R., Steers, R. and Porter, L. 1979. The measurement of organizational commitment.
Journal of Vocational Behaviour, 14, pp.224–247.
Sainte-Rose, S. and Schult 2012. Talent Challenges and Solutions in FastGrowing Economies-
Coca-Cola Testimonial.
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The Coca Cola Company 2016a. Annual report 2016.
The Coca Cola Company 2017a. Coca-Cola At A Glance: KO101 Video and Infographic. The
Coca-Cola Company. Available from: http://www.coca-colacompany.com/our-
company/infographic-coca-cola-at-a-glance [Accessed October 29, 2017].
The Coca Cola Company 2016b. How Coca-Cola Integrates Well-Being Into the Workplace.
The Coca-Cola Company. Available from: http://www.coca-
colacompany.com/stories/how-coca-cola-integrates-well-being-into-the-
workplace [Accessed October 26, 2017].
The Coca Cola Company 2017b. Why Work at The Coca-Cola Company. The Coca-Cola
Company. Available from: http://www.coca-colacompany.com/careers/why-
work-at-the-coca-cola-company [Accessed October 26, 2017].
The Stewart Group 2016. 50-HR and Recruiting Statistics for 2016.
Wilson, K. 2015. Unbottling Coca-Cola’s Employee Engagement Strategies – Social Media for
Business Performance. Available from:
https://smbp.uwaterloo.ca/2015/02/unbottling-coca-colas-employee-
engagement-strategies/ [Accessed October 26, 2017].
WorldatWork 2017. Survey of Parental Leave in the US.
