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; Gamble: Key role of integrity, trust and respect for others | Emerald Insight

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Abstract

The recruitment
process
The fundamental values that drive HR
Internal
communications policy at Procter & Gamble: Key role of
integrity, trust and respect for others
Acknowledging
contributions

Employee development
Human Resource Management International
Employee bene ts Digest

Remuneration ISSN: 0967-0734

(International
Publication date: 7 June 2011
Note Standard
Serial
 PDF (56 KB)
Number.)

Abstract
Purpose
This paper aims to describe the human resource (HR) policies and
drivers of success in force at 130,000‐employee multinational
consumer‐goods company Procter & Gamble, with particular focus on
the company's UK and Ireland operation.

Design/methodology/approach
The paper concentrates on hiring policy, inductions, internal
communications, employee rewards, employee bene ts and
remuneration.

Findings
The paper details how integrity, trust and respect for others are
fundamental values that drive the day‐to‐day working methods and
decision‐making of Procter & Gamble's global workforce.

Practical implications
The paper highlights the importance of curiosity and innovation;
employees' ability to discover and make use of the di erence, and
people's ability to meet change head‐on.

Social implications
The paper describes the HR policies that help to make P&G a good
corporate citizen in the countries in which it operates. 
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The paper
Welcome International Management highlights
Institute Delhi the importance of fairness and openness in the
smooth running of a company.
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Keywords
Abstract Human resource management Recruitment Employees

The recruitment Remuneration Employee development

process
Corporate communications
Internal
communications
Citation
Acknowledging (2011), "The fundamental values that drive HR policy at Procter &
contributions Gamble: Key role of integrity, trust and respect for others", Human
Resource Management International Digest, Vol. 19 No. 3, pp. 10-14.
Employee development
https://doi.org/10.1108/09670731111125862
Employee bene ts  Download as .RIS

Remuneration Publisher: Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited
Note

Integrity, trust and respect for others are fundamental values that
drive the day‐to‐day working methods and decision‐making of
consumer‐goods company Procter & Gamble's global workforce of
almost 130,000 people.

Sixth in Fortune's Most Admired Companies 2010 list, P&G recruits

and develops its people against core competencies named “success
drivers”. The company's purpose, values and principles (PVP) are at
the core of this model.

“When most of us think about the PVP, we think rst about

integrity,” said a spokesman for Procter & Gamble UK and Ireland,
which employs some 6,500 people. “This is what sets us apart from
other companies and sets the best P&G people apart as well. Our
PVP is about more than not lying, stealing and cheating; it also
speaks to the more subtle aspects of integrity – such as not working
in an underhanded and subversive way – that really re ect a
person's character. It also speaks to our ability to build trust by
being open, honest, straightforward and candid. We do what we
say, and we say what we mean.”

Combined, these characteristics are P&G's success drivers, the

competencies that de ne how its people succeed in today's
business environment. They are the characteristics the company
looks for in new employees, how it measures performance and the
basis for its development and career systems.

The success drivers are distilled into three basic ideas:


1. online
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experience. By minds, which
continuing centers
to browse thison curiosity
site, and
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accept them in accordance with our cookie policy. I agree  
innovation;
2. the power of P&G people, which concerns employees’
ability to discover and Share use of the 
make feedback di erence; and
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3.Institute
Welcome International Management the power
Delhi of P&G agility, which deals with people's ability
to meet change head‐on.
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“Our reputation as one of the most admired companies in the world
is based on our value‐driven way of conducting business,” said the
spokesman. “We feel that our purpose, values and principles are
our DNA, our competitive advantage and our guarantee for long‐
Abstract term survival and success. Our recruitment process, in combination
The recruitment with our ‘built from within’ mentality, allows us to have as employees
process people that fully embrace this common set of values.”

Internal
communications

Acknowledging
The recruitment process
contributions P&G's recruitment process starts with the candidate checking
vacancies and deciding which one to apply for online. If they are
Employee development
successful they are invited to ll in an online questionnaire, then to
Employee bene ts complete a reasoning test, followed by interviews.

Remuneration “While the whole process helps us to nd out about the candidate
Note as a person and about his or her achievements, the interviews give
us the best opportunity to get to know them as a person,” the
spokesman explained. “They also help the candidates to discover
more about our people and us as a company.”

The company organizes a three‐day seminar for all new hires across
the UK and Ireland each September.

“We present the company's mission, values and culture, then talk
about their contribution, career opportunities and compensation
package,” said the spoksman. “Employees with a couple of years’
experience are facilitators during the seminar, so they can provide
their recent personal perspective to the new hires. Experienced
managers and executives lead various sessions to demonstrate the
importance we put in welcoming the new hires.”

After this general introductory seminar, function‐speci c seminars

on, for example, marketing or sales, focus on specialized career‐
path details, systems and other practical details.

Typically, new hires have a “buddy” to support them in their rst

months at the company. Their line manager and the HR manager
are also on hand to o er support.

Internal communications
Senior management shares information with employees through:
frequent manager‐employee one‐to‐one discussions; work‐team
meetings; quarterly “town hall” meetings; the chief executive's
annual address; senior‐management reviews; and informal lunches,
where the site director and lead‐team members have lunch with up
to eight employees across all levels and where questions and hot 
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P&G's workplace
Welcome International Management Institute Delhiis relaxed and informal. Most employees, including
senior managers, work in an open‐plan environment. “This means
Enter your searchthat,
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anyone in the organization at any time,” the spokesman explained.

Additionally, the company has quarterly local surveys and an annual

global survey that allow the employees to give detailed feedback.
Abstract

The recruitment Each team has an HR business‐account manager, with whom

process employees are encouraged to discuss their concerns and
aspirations. HR, in turn, works closely with business leaders to
Internal
discuss employee relations, including succession planning and
communications
talent development.
Acknowledging
contributions P&G has a European works council named the P&G Europe Forum.
This includes people from di erent countries and business units
Employee development
within the European Union. The representatives are elected by the
Employee bene ts employees in each country and their number re ects the workforce
of the country. Currently, the UK and Ireland has four elected
Remuneration
representatives. The forum meets annually to discuss both business
Note and organization subjects.

Acknowledging contributions
P&G has a thoroughgoing reward and recognition program.
“Recognition shares” are the highest accolade, awarded for
extraordinary employee performance worthy of emulation by
others in the organization. They provide nancial recognition in the
form of P&G stock options (typically 100).

The next level is the “power of you” program, which is designed to

provide exible, simple and consistent recognition of both
employee and team performance by o ering merchant gift
certi cates. There are three levels of awards. In general, out of 100
employees, the company would expect two to receive platinum
awards of £120, seven to receive gold (worth £70) and 30 to receive
silver (£20) in any one year.

“On‐the‐spot” recognition informally recognizes behavior such as

strong teamwork. This recognition can be in the form of a personal
thank you, a handwritten note by senior management or thanking
the employee in the presence of the rest of the team.

Employee development
Behind P&G's “build from within” philosophy lies a strong training
program that o ers all employees the opportunity to progress
through the organization. The training consists of both functional
and business‐development training. Employees at all levels can
attend training at any P&G location anywhere in the world where
the course is made available. While most of the training is 
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they believe these meet their particular needs.

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P&G UK
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Institute Delhi has a dedicated on‐site learning center where all
in‐house classroom training is held. Employees receive on average
Enter your search64 hours
terms of training per year, including formal training, on‐the‐job
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training and coaching from team leaders. The training o ered
reinforces the company's key skill areas, including leadership,
innovation, collaboration, capacity, technical mastery, solutions and
risk‐taking. Courses include Coaching for People Managers, Seven
Abstract Habits of Highly E ective People and People and Communication
The recruitment Skills.
process
RapidLearn is an online learning tool that gives employees access to
Internal
the training calendar and catalog of courses available. RapidLearn
communications
gives employees worldwide access to more than 500 online courses
Acknowledging from their computers. The courses cover a wide variety of subjects,
contributions including interpersonal skills, technical mastery, personal
computing, diversity and regulatory and safety‐standards training
Employee development
for plant personnel.
Employee bene ts
All employees are expected to have a current work and
Remuneration
development plan. This highlights overall performance, strengths
Note and development areas. In addition, all employees are expected to
have a 90‐day work plan into which is woven their personal learning
and development plan. “In that way, we can make certain that every
employee follows a personally tailored training program that meets
best the needs of the individual and of the business,” said the
spokesman.

Employee bene ts
P&G o ers a wide range of employee bene ts.

When an employee is expected to stay away from home overnight

on a non‐routine or unexpected trip, the company will pay a
contribution towards the cost of providing help to look after
children or other dependants who require care.

Employees who take on assignments in di erent countries can

choose to remain at their home base. “This exibility ensures that
we have the best person in a certain role, regardless of individual
mobility,” said the spokesman. “This increases the level of
engagement and performance of the individual employee.”

P&G recognizes that there are occasions during a career when an

employee faces di cult con icts in balancing responsibilities in and
outside work. To enable employees to balance these commitments,
the company o ers:

• an option to work fewer days per week and/or fewer hours

per day;
• the chance for full‐time employees to take up to three
months o every seven years without pay, for individual
needs and interests; and 
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The company's
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telephone advice and/or one‐to‐one counseling on family problems,
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concerns, legal or nancial problems.

P&G also o ers interest‐free loans to employees in serious nancial

di culties.
Abstract

The recruitment
process Remuneration
Internal Each P&G employee has his or her own salary plan that consists of
communications the current, proposed and the future salary increases. The salary
plan re ects individual contributions towards building the business
Acknowledging
contributions and the organization.

Employee development
Salary plans are managed within the relevant performance band.
Employee bene ts P&G has three of these, for:

Remuneration 1. top performers, who always exceed expectations;

2. key contributors, the majority of employees, who always
Note
deliver expectations; and
3. those who deliver below expectations.

The company sets its salary ranges in line with the pay practices of
leading global, regional and local companies. The group is unique to
each country, but typically includes companies such as 3M, Bristol‐
Myers Squibb, CEMEX, Coca‐Cola, Colgate, Du Pont, Exxon Mobil,
Henkel, Hewlett‐Packard, Hong Kong Shanghai Banking
Corporation, IBM, Johnson & Johnson, Kimberly Clark, Kodak, Kraft
Foods, L'Oreal, Nestlé, P zer, Pepsi and Unilever.

In the UK and Ireland, P&G works with the Hay Group, which
provides annual surveys with all the total compensation
benchmarking information updated.

All P&G employees worldwide receive a world‐wide business‐

conduct manual, which ows from the company's purpose, values
and principles. All employees must review the manual annually and
sign that they have done this. This is tracked to ensure that all
employees have complied.

“In P&G, we live our values and have been able to create a climate
of trust and co‐operation across generations, cultures and
geographies,” the spokesman concluded. “The manual de nes the
boundaries of our conduct. We are all responsible for our own
actions and each of us is responsible for learning and
understanding the policies and standards that apply to us and our
actions.”

P&G Gillette's research and development laboratory, in Reading,

Berkshire, was highly commended in the product‐innovation
category of the latest Institution of Mechanical Engineers (IMechE) 
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at the center,
Welcome International Management said:
Institute Delhi “It is a little‐known fact that during the last 50
years, our R&D laboratory in Reading has created, prototyped and
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here new razor that Gillette has launched.”  Advanced search

Note
Abstract David Pollitt, Human Resource Management International Digest
editor, wrote this article.
The recruitment
process

Internal
communications

Acknowledging
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Authors About Emerald Legal
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