Running head: A CASE STUDY OF PEPSICO.

RECRUITMENT
1

A Case Study of PepsiCo Recruitment

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A CASE OF PEPSICO RECRUITMENT PROCESS 2

Introduction

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
A CASE OF PEPSICO RECRUITMENT PROCESS 3

are some of the challenges faced by the company and the possible recommendations that can be

given to the HR department to cab the strategies.

Key Challenges of recruiting Workforce in Pepsi Organization

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.

Lack of diversity in Communication Networks

A CASE OF PEPSICO RECRUITMENT PROCESS 4

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.

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
A CASE OF PEPSICO RECRUITMENT PROCESS 5

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.

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.

Recommendations to the Challenges

Adopt low-cost methods of recruitments with a high labor supply

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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.

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
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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.

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.

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
A CASE OF PEPSICO RECRUITMENT PROCESS 8

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.

Conclusion

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 process and should be adopted by Pepsi to increase their performance.
A CASE OF PEPSICO RECRUITMENT PROCESS 9

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