1. Driving profitability through HR Agenda: PepsiCo experience
David Souperbiet
HR Vice-President, PepsiCo in Russia

2. PepsiCo in Russia The biggest food & beverage company
In Russia since 1959
Investments in Russia economy about $10Bln
40 plants
25 thousand employees
10 out of 20 biggest F&B brands in Russia

3. 63% 50% 27% Driving profitability through employees engagement
“Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at work.”
Engaged employee:
Is satisfied with his/her company as a workplace
Has a feeling of personal accomplishment
Is committed to the company (is not willing to jump the boat)
Put more effort into his/her job than is required to help company succeed
Engagement at PepsiCo
High-engagement workplaces have:
63%
50%
27%
difference in shareholder return (Hewitt Associates)
higher sales (Gallup)
higher profits (Towers Perrin)

4. Recognition to make our people feel valued
PepsiCo’s Engagement strategy is based on “universal” engagement drivers and regular measurement
Internal communications to take employees with us and make their job meaningful
Recognition to make our people feel valued
Manager Quality to make our people processes meaningful for each employee
Two types of tools:
centralized (Ezzy-portal & newspaper);
decentralized & two-way (“communicating manager” concept; infopacks, town hall meetings, round tables, managers’ letters, breakfasts, etc)
Two focuses: business strategy & performance; cultural attributes (Values)
About emotions not money
About appreciation not incentives
Focus on on-the-spot recognition by managers:
Tools for managers to make recognition every day (25% employees covered)
Promoting “thank you” culture
Communicating and celebrating wins & heroes
Transition programs for managers (First Time Manager, Leader of Managers, etc)
Leadership forums
Programs for managers: Diversity & Inclusion workshops to embed inclusive leadership; Coaching Manager, etc.
Manager Quality site
Manager Quality award & success stories
Measurement & follow-up: regular (every other year) organizational health survey (95% of employees participate) & down-to-top action planning process

5. Talent Acquisition outcomes Context before TA launch
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Talent Acquisition outcomes
Context before TA launch
Fragmented recruitment team ( Capabilities; HRGs involved in hiring)
Average recruitment cycle for management roles 50+ days
Not consistent hiring process and assessment tools utilization
High cost per hire
More than 15 HR vendors
Solution
Standardized hiring protocols for different levels (Consistent candidate experience)
Specialization: Functional and Professional vs Industrial
Flexible structure: Core + Task force
Applicant Tracking System
Segregated Sourcing team; ( Recruiters focus more on Selection)
Outcomes
70 vacancies per week
Recruitment cycle for management roles 43 days
Cost per Hire over 40% decrease – from 9,4% to 5,3% (from average annual salary),
10 HR providers
© THK-BP presentation name 5

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