Global trends such as urbanization, demographic changes, and technology developments are changing the talent landscape. These trends are contributing to a shift in the supply of talent at a time when demand for skills is increasing sharply. In such an economic environment, we need to continuously reevaluate and reimagine every aspect of our business — pushing ourselves to out-innovate our competitors today so we can out-perform them tomorrow. We will also need to empower our associates to meet their own individual responsibilities while embracing a collective responsibility for the success or failure of our Company as a whole.
One of the biggest challenges facing corporations today is attracting and retaining highly talented leaders. PepsiCo aims to engage creative and innovative employees who can fuel short-term success, while simultaneously fostering growth of the next generation of leaders whose skills, experiences and understanding of new technology will help drive our long-term success.
To attract the best talent, we strive to maintain our reputation as a great place to work. We do this by raising awareness about PepsiCo’s unique, high-performance culture and highlighting PepsiCo’s traditional benefits — including comprehensive compensation, health care, and savings and retirement programs — and emphasize our diverse culture and commitment to learning and development. The future of PepsiCo will be shaped by our commitment to hiring and developing the most talented associates by building strong, diverse teams through offering rewarding and challenging careers.
Competition for top talent is intensifying and, in 2016, we continued to invest in attracting and retaining a diverse and engaged workforce, along with managing our employer brand reputation. We employ several strategies for attracting talent, including traditional recruiting methods, such as campus recruiting, attractive benefits and healthy living programs.
PepsiCo’s global Talent Acquisition team has also created new digital opportunities and proactive pipelining strategies tapping into alternative sources of talent to reach future prospects. Embracing the growth of social media and mobile technology through an active presence on LinkedIn, Facebook, and Twitter has resulted in 90% positive sentiment along with more than 1.5 million followers on PepsiCo’s LinkedIn page, helping to land PepsiCo the #14 spot on LinkedIn’s Global Top Attractors employers list. Additionally, our team continuously monitors and manages PepsiCo’s employment brand and reputation, leveraging channels such as Glassdoor and Comparably, where applicants and employees can share anonymous employer reviews, further shaping PepsiCo’s employment brand reputation. All of these social channels provide the opportunity for two-way dialogue between external talent and PepsiCo. We are committed to and exceed a 24-hour turnaround time to inquiries through these channels.
At PepsiCo, we are constantly connecting with students around the country in our effort to identify tomorrow’s leaders. Our U.S. Campus Recruiting Program continues to expand. In 2016, we held more than 7,000 student interviews. In addition, we continued to build upon our partnerships with external organizations focused on developing diverse undergraduate and graduate students, such as Management Leadership for Tomorrow, The Consortium for Graduate Study in Management, Enactus and The National Black MBA Association.
These efforts yielded 2,667 student job offers with 1,869 acceptances, equaling a 70 percent offer acceptance rate. Of the 1,869 total acceptances, 896 were full-time hires and 973 were intern hires.
We continue to take a holistic approach to employee growth and engagement by deploying a variety of tools aimed at enhancing the employee experience, and seeking opportunities to enhance employees’ commitment to a career at PepsiCo. We incorporate performance objectives related to increasing employee engagement and employee satisfaction into the annual objectives for human resources employees and other key executives. By using the results of our annual and mid-year reviews, career conversations and regularly scheduled organization-wide surveys, we continually adopt the necessary changes at the enterprise, sector and work group levels to drive culture change initiatives.
In 2016, PepsiCo conducted a series of Strategic Insights Surveys stemming from our biannual Organizational Health Survey. The survey results revealed that PepsiCo associates care about PepsiCo’s success, are passionate about career growth and believe that senior leadership is aligning associates’ work efforts with that of PepsiCo’s future success. As a result of the feedback we received from employees, we continue to leverage our strength in leadership to set future direction. We are equipping our leaders to engage in critical conversations about the kinds of career opportunities and resources that are available at all levels of the Company, and helping employees navigate through PepsiCo’s transformational change.
We offer our employees learning and development opportunities designed to broaden their skills and grow their careers. This is accomplished through a variety of innovative solutions, including MyLearning, an enterprise-wide Learning Management System. Much of our curriculum is developed internally and augmented by extensive external learning content from a variety of providers. Leadership development, functional learning, and general professional skills are the mainstays of our curriculum. Users access learning content through our global PepsiCo University portal designed to help associates learn based on their unique needs and interests. Through the portal, associates can access functional college content, information on leadership programs, a wide range of professional skills resources and connections to PepsiCo career tools.
As PepsiCo’s internal global learning resource, PepsiCo University promotes a culture of continuous learning and development. Through our Global Development Council, PepsiCo University sets priorities for global classroom and online curriculum needs. There are 11 colleges within PepsiCo University:
1. Finance College
2. Procurement College
3. Sales College
4. R&D College
5. HR College
6. Strategy College
7. Business Information Solutions (BIS) College
8. Marketing College
9. Supply Chain College
10. Communications College
11. Nutrition College
In 2016, 809,447 completions occurred, representing a 47% year-over-year increase, as well as 987,184 hours of completed learning, representing a 35% year-over-year increase. In 2016, we also continued to support the global deployment of three internal learning offerings to accelerate leadership development for high potential associates around the world. Additionally, PepsiCo University provides core leadership programs for all leaders from the first transition into a management role, then the transition to leading other managers, and ultimately, the transition to Senior Management.
An important benefit of having engaged associates is that it reduces turnover. High turnover rates may lead to a loss of institutional knowledge, decreased employee morale and costs associated with recruiting suitable replacements. In 2016, more than 5 percent of full-time, permanent PepsiCo employees received promotions and our global retention rate of full-time, permanent associates was 81 percent.
Global Employment Rates*
*Reflects full-time, permanent associates, as of 12/31/16
Freedom of Association
We are committed to respecting the right of freedom of association, and this principle is embodied in our Global Code of Conduct, Human Rights Workplace Policy, and Supplier Code of Conduct. This means that, consistent with local laws, associates have the right to assemble, communicate, join associations of their choice or refrain from doing so.
PepsiCo fully complies with all laws regulating collective bargaining. In 2016, 55 percent of employees worldwide, eligible to be covered under collective bargaining agreements, were represented. PepsiCo maintains positive working relationships with union representatives.