Nestle is a multinational conglomerate company having headquarters in Vevey, Switzerland. The company is engaged in providing of drinking and food products and comes among the largest food Companies in the world. The company earns revenue of more than 80 billion. Company deals in baby food products, breakfast cereals, confectionery products, ice cream, bottled water and pet food etc. Presently, Company is working with more than 350000 employees. The cThe company follows good human policies and procedures but some drawbacks will be elaborated on in this report with the relevant recommendations.
Staffing process of the Company
The staffing process of Nestle Company starts with manpower planning under which the Company collect the figures after identifying the exact number of manpower required in Company with the exact time, cost and place and follows a systematic approach as follows:-
• Assessing the existing workforce in the Company.
• Prediction of future needs.
• Employment programmes budding
• Organization of required training programmes.
The company’s second step of the staffing process is recruitment and staffing under which analysis of the job with the proper specification is delivered to the HR department. A company recruits employees through promotion, advertising and transfers under its internal source of recruitment (Albrecht, et. al., 2015). The external source of recruitment, recruitment is done through job boards, advertisements in public, and management consultants.
The third step in the staffing process of the Company includes human resource development which is very significant for the Company and includes training on the job or off the job (Al-Hawary, 2015). Methods of training include programmed, audiovisual, computer and intense distance training. The fourth step is the compensation and benefit which is a motivational factor for employees including promotion, bonuses, life insurance, vacation etc. The last step is leadership development under which each employee is closely monitored and further proper counselling is given to each employee to enhance their efficiency.
Issue no. 1
One of the major issues in the staffing process of Nestle Company is the retention of employees. The company works hard on ensuring a positive environment, good working conditions and proper benefits which can lead satisfaction to with each employee's needs (Allen, et. al., 2013). In the Company, many employees leave Company due to a lack of coordination among the workers. The organization is keeping a track of this issue but is not getting the proper outcome.
The productivity of employees is decreasing due to a lack of support and coordination from employees each other and deteriorating the overall performance of the business. Retention of employees is a major concern for Nestle as Company invests a hefty amount in its training and development program. The company sometimes face a shortage of talented employees having specialized competencies which are needed for moving ahead of the competitors (Boxall and Purcell, 2011). Retention of employees has been a top challenge for the management of the Company and stands a greater chance of weathering such shortfall.
It has been analysed that the employees in the Company are trained regularly and also issued with proper rewards which are helping in active participation of the employees. At the same time, employee’s also facing internal issues such as a non-cooperative workforce and high pressure of work which is ruining the working conditions and hampering their efficiency. Today, employees keep the working environment at the topmost priority when they look for a new job. Internal issues are fragile in terms of their inability to identify in one go.
Looking at this issue, the HR department is required to execute one-to-one communication with each employee to know if any excessive work pressure or manager pressures their making them take such a big decision to leaving the Company. Immediate managers should also participate in such activities for understanding the niche of the issue. In this discussion, the reason or issue for non-cooperation will also be revealed by employees and immediate analysis should be done with real facts and probability (DeCenzo, et. al., 2016). There can be the utilisation of 360 feedback which can take a review and ideas from each person at a different level. This process will help the Company to analyse the type and frequency of work-related issues which are deriving employees to leave.
The company should adopt the support mechanisms such as alternative work schedules, the organization of an employee assistant programs and procedures for conflict resolution. Furthermore, the face to face discussions can also be made with the immediate subordinate and employees to make them feel comfortable discussing the issue and a better solution can be derived after taking consent from everyone. Recognition should be a constant practice of the Company(Jeske and Shultz, 2016). It has been surveyed that using recognition programs and other efforts at the workplace for engaging employees creates a positive workplace environment.
Issue no. 2
Another issue which is analysed in the Company’s staffing process is the cash and compensation issue. Human resource managers are facing the pressure of paying more incentives, and bonuses to employees and Company is asking to pay basic salaries to employees which are lacking employee benefits. There is disharmony in the distribution of the pay to employees due to a lack of proper evaluation of the salary based on expertise and degree.
The human resource policy of the human resource department is lacking fluidity and dexterity in the process of staffing (Jiang, et. al., 2012). The issue is found to have occurred from the start when the identification of employees started by the HR department and then their recording of information in the database of the Company.
There is incorrect pay based on the wrong information. The internal database is carrying irrelevant and inaccurate information about candidates leading to a diversion in the pay towards their experience. There has also been a sluggish approach followed by the HR department for finding the employees. The payroll management authority is assigned to a third party called pay square which is also making the payment process cumbersome for the Company.
HR should choose agencies based on their goodwill and relevance in the market. Proper and complete information should be collected by the HR department and then should be recorded in the database (Lievens and Chapman, 2010). Right technologies need to be adopted such as the JobsPikr tool which can assist in targeting the right information of the potential candidates and simplifies the extraction of data and analysis of candidates. The payroll management should be assigned to the team of human resources itself or any team within the Company. Proper training can be given to them for understanding technology. The company is also required to ensure that the tax obligations of the employee are accurately calculated and can cover the costs such as workers' compensation, medical insurance, health benefits, etc.
Cash and compensation should always be calculated based on experience. There has been a need to change the basic compensation method used by Company for payment. Each employee should receive the payment based on their skills and expertise for giving a proper justification to the employee’s salary payment each month (Slack and Brandon-Jones, 2018). This will ultimately help the Company to reduce the cost of labour if an excess payment is made to any employee. Apart from this, the meeting of compensation and benefits needs of employees can also be properly fulfilled according to earned profits by the Company.
The assistance of the third party will be effective in terms of asking the best way to deal with the payment issues. The company should also install different software for payroll management as per the suitability of the Company. The benefits such as provident fund, reimbursements and gratuity scheme can contain errors in computation which can become a haphazard time-consuming process for the human resource department to manage the same at the end. Information about employees should be accurate from the initial level avoiding duplication and errors in the ultimate calculation of payment of each employee.
The company should use a knowledge management system and human resource information system to enable the ideal connection of employees, HRD, management and the marketing community (Mudor, 2011). This technology up-gradation will ease human management and also will allow the employee to come up with their queries immediately. This technology will ultimately increase the engagement of employees, empowerment of employees, reduction in employee payroll and information errors and easy collaboration with different departments. This platform will also allow the open enrolment benefit and improved capabilities in the training process.
Hence, the above issues with the staffing process of Nestle Company have been discussed and analysed. Overall, it has been observed that human resources are part and parcel of the Company and they are an inevitable part of the organization. Their engagement should also be focused on and increased for ensuring satisfaction and retention. Huge efforts should always be made for a positive working environment by organizing different programs of interaction and seminars which can enhance their knowledge and increase their involvement with other co-workers. Nestle has been making enormous efforts in retaining their employees, providing them with proper training, and development opportunities and ensuring the best environment for them. Retention can be enhanced by making them easy in their expression and providing them with opportunities for sharing their ideas and views.