1. Recognition in Nestlé Consolidation of Market Programs and Parameters of Best Practices
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

2. Agenda Report Premise & Objective Executive Summary
Key Report Highlights and Recommendations
Is there a direct link between top 5 Recognition Programs (RP) and Nestlé & I scores?
Identifying top 5 Recognition Programs
Findings
Are Recognition programs in alignment with NCE?
Conclusions

3. REPORT PREMISE & OBJECTIVE
The What:
Understand current state of recognition in the markets
Gather quantifiable data points, analyze information & benchmark to build a strategic recognition framework
The Why:
Nestlé & I results indicate a need for recognition culture integrated with manager behaviors & employee progress
Global recognition framework based on the employee and Nestlé Leadership Framework can impact recognition culture, manager behaviors positively
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

4. A Recognition Framework based on inputs from:
EXECUTIVE SUMMARY
A Recognition Framework based on inputs from:
Internal Recognition Guidelines (A Guide to Recognition – 2011)
External Research
TOD Center of Expertise and partnership
NCE – Leadership Development Pillar
Survey conducted across all markets
Framework revolves around:
Full integration of 4 elements of Recognition
Address systemic capabilities
Recognition as a powerful potential leverage for HR strategies
Broad participation across all employees
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

5. Executive Summary – Strategic Recognition Framework……
Integration and Connection between 4 Elements: 2 Foundational and 2 Recognition Elements. Some elements included in current programs but not in an integrated & connected manner.
Foundational Elements
Personally Recognized – I know you/I see you/I value you
Behaviors – routing core values connected with the Nestlé Leadership Framework Behaviors
Recognition Elements
Recognition of Efforts – connected with knowing the employee and core values/behaviors driving the efforts
Recognition of Results – connected with knowing the employee and core values/behaviors driving the results

6. Executive Summary – Strategic Recognition Framework……
Address systemic capabilities
Measurement – identify what & who is being recognized to coach effectively
Connect recognition to KPI’s that deliver results for both business and HR (business results, turnover, engagement scores)
Real time recognition
Measure and understand culture
Personalize recognition
Ease of administration
Establish and measure budget
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

7. Executive Summary – Strategic Recognition Framework……
Recognition as a potential input in strategic HR and Corporate Initiatives
Leverage recognition to drive Corporate Business Principles and NLF
Drive performance culture
Increase Manager and Employee capabilities
Capture NCE recognitions and share for duplication
Crowd sourced information for personal evaluation
Identify and duplicate high performing networks
Effectively identify talent and capabilities
Capture and duplicate innovation and best practice
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

8. Executive Summary – Strategic Recognition Framework……
Promote Broad Participation across all Employees
Leverage peer to peer recognition
Will help achieve desired cultural change in the long term
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

9. Key Report Highlights – Survey Methodology
Data collection template sent to 56 NiM C&B Managers across Zone AMS, AOA and EUR
98% response rate achieved
85% markets (42) have one or more recognition programs; 24% of markets have more than one recognition program.
A total of 66 plans analyzed to review findings and learning
Survey consisted of 39 questions grouped in to 12 different categories

10. Key Report Highlights and Recommendations (I)
Lack of clear understanding of NLF behaviors (Q3)
Several different behaviors do not provide clear message to employees
6 NLF behaviors should be the foundation for RP
Behaviors and Results not connected. Large no. of plans focus primarily only on results
Establish connection between behaviors, efforts and results
Define differences between recognition and reward

11. Key Report Highlights and Recommendations (II)
Having only HR own recognition programs is not adequate for program success.(Q2)
Co-ownership between C&B + TOD along with the business
Clear roles for C&B, TOD, business, Finance and Communications

12. Key Report Highlights and Recommendations (III)
Only half of the plans allow peer to peer nominations (Q6&7)
All employees allowed to give and receive recognition to create an inclusive culture and reinforce Company values
Varying award levels across markets (Q12)
Allow differentiation through gradation of awards to recognize the size of the effort and impact for each recognition
Who can nominate?
Who can be nominated?

13. Key Report Highlights and Recommendations (IV)
Though most use non cash, some markets still use cash awards to recognize employees (Q18)
Non-cash awards best impact intrinsic motivation and create positive memories associated to recognition

14. Key Report Highlights and Recommendations (V)
Prevalence of committees can slow down recognition processes (Q24)
Ensure that approval is fast and timely and appropriately calibrated. Technology can provide simple solutions.
Is there a committee that approves the award?

15. Key Report Highlights and Recommendations (VI)
Most plans do not use metrics to measure program success (Q36)
Important to have real time metrics which can be supported by technology. Key metrics include:
Recognitions per EE, per month
Average spend per EE
Who is giving/receiving recognition
Corporate Culture
Reasons for recognition: behaviors / efforts/ results

16. Key Report Highlights and Recommendations (VII)
Majority of plans do not budget for recognition separately (Q28)
Budgets are a foundational element for RP and should have a cost allocation because of the value it generates
Separate Budget to allow/ensure monitoring of plan spend

17. Key Report Highlights and Recommendations (VIII)
Plan identity is split equally between markets that have a non branded versus a branded name (Q1)
Recommended to have a branded identity that brings character, life, and credibility to the program
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

18. Is there a direct link between top 5 RP and N & I scores?
Identifying Top 5 Recognition Programs and Key Elements
Based on the criteria below:
Clearly defined objectives that the program is driving
Program accessibility for all employees; no restriction on eligibility
Defined criteria for different levels of the program
Non – cash awards
Technology assisted strategic on-line program
Top 5 programs (out of 66) in no specific order
UK & Ireland – implemented in 2009
Canada – implemented in 2013
Oceania – implemented prior to 2011
India – implemented in 2013
NUSA – implemented in 2011

19. Is there a direct link between top 5 RP and N & I scores?
Findings
A perceived good recognition plan may not guarantee a better ‘Nestlé & I’ scores on Manager Behavior, Co-operation, Respect & Treatment or ‘Reward & Recognition’
Some of these plans are relatively new which means it might take time for recognition initiatives to achieve desired results.
Even the best programs are missing important parts
Evidence of missing the core which is ‘I know you, I see you, I value you’ and the foundation of Manager behaviors - prove this true.
Highest positive scores on the recognition question ‘I receive recognition when I do a good job’ are Canada and Oceania, but here the highest Manager Employee Relationship score is only 60%, indicating external but not internal engagement (Progress Principle – Harvard Review)
Human Resources | C & B Operations | Concha Martinez/Rajani Koduganti
29 November November 2018

20. Are Recognition Programs in Alignment with NCE?
Findings
Some functions / sites have passed the NCE gate but were not using country wide RP and have created their own RPs.
NCE has resulted in embedding daily recognition in their activities through DOR’s, WOR’s and MOR’s meetings.
Exceptional milestones are collectively celebrated to improve team work
Recognition is not self-sustained in all locations. HR is dealing with periodical communications to keep the RP alive.

21. Integrated approach is needed between NCE and recognition practices.
Are Recognition Programs in Alignment with NCE?......
Conclusions
Integrated approach is needed between NCE and recognition practices.
Both should emphasize on desired manager’s behaviors.
Both should have an integrated approach to behaviors, efforts and results