Employee Experience

Why it matters

Approach

As part of our pep+ (PepsiCo Positive) ambitions, we’re striving to build a better workplace. We believe that our culture is a competitive advantage that fuels innovation, enhances our ability to attract and retain talent and strengthens our reputation. We continually strive to improve the attraction, retention, and advancement of associates to ensure we sustain a high-caliber pipeline of talent that also represents the communities we serve.

We are also committed to the continued growth and development of our associates. PepsiCo supports and develops its associates through a variety of global training and development programs designed to build and strengthen employees’ leadership and professional skills, including career development plans, mentoring programs and in-house learning opportunities, such as PEP U Degreed, our internal global online learning resource. We do this across a number of pillars:

• Recruitment: Recruiting the right talent to grow our company;
• Employee engagement: Understanding and improving how employees feel about their jobs, team and company direction;
• Learning and development: Equipping employees with the skills they need to succeed in their careers, both now and in the future; and
• Employee well-being: Providing resources to employees to help enable them to support their physical, financial and emotional health and bring their best selves to work.

See Strategy, below, for detail on how we address each of these pillars.

Governance

Our Board of Directors and its Committees provide oversight on a broad range of human capital management topics, including corporate culture, pay equity, health and safety, training and development and compensation and benefits. Our Board is actively engaged in the oversight of our corporate culture and is continuously focused on developing a culture that is aligned with our long-term strategy and based on engagement with employees at all levels of the organization. Employee feedback is considered in designing and evaluating employee programs and benefits and in monitoring current practices for potential areas of improvement.

Our Human Resources organization oversees our employee experience initiatives and our Chief People Officer leads this work. Teams across Human Resources — including Talent Acquisition, Total Rewards, Learning Operations and Assessment, Culture and Engagement — manage specific elements of our employee strategies. Each team uses a mix of internal and external tools to evaluate progress against our ambitions. We rely on local data to understand needs and tailor employee experiences to the markets where we operate while our global values in One PepsiCo Way guide this work.

One PepsiCo Way outlines seven employee behaviors that we believe strengthen our mission, drive our vision and reinforce our corporate culture. These behaviors are embedded in processes across the company, from performance objectives to annual surveys.

Strategy

Each pillar of our efforts to build a better workplace is guided by targeted strategy designed to drive impact for our potential and current employees. See how we measure progress against these strategies in Metrics and targets.

Recruitment

The employee experience starts with recruitment, which sets the tone from the beginning. PepsiCo's global Talent Acquisition team oversees attraction and engagement strategies and uses a balance of traditional and innovative recruitment methods to reach an engaged workforce with a variety of experiences, backgrounds and skill sets. We continue to grow our reach through traditional channels while also using proactive pipelining strategies that tap new sources of talent. We believe great talent can come from anywhere, and we are focusing on expanding our campus, professional and executive recruitment efforts by strengthening our relationships with search firms and schools to reach strong candidates wherever they are.

Employee engagement

We aim to bolster employee engagement, with the company, with fellow employees and with the communities where we operate by:

• Establishing shared behaviors through One PepsiCo Way;
• Understanding employee perspectives and needs through feedback mechanisms;
• Celebrating success and expressing appreciation through the Smiles program; and
• Supporting community connections through One Smile at a Time.

We have established various channels for employees to share their opinions — each designed to provide the opportunity to speak up, providing valuable feedback to those empowered to address it. They include:

• Organizational Health Survey (OHS): An annual census survey available to all employees to gauge employee engagement and commitment to PepsiCo.
• Life cycle surveys: A mechanism that enables PepsiCo to measure employee experience and engagement at key moments in the employee life cycle.

Equipped with survey results, we identify opportunities for improvement at the team- and company-level. Each year, executive leadership and team leaders review survey results and take action based on identified issues. By listening to employees through these channels and acting on the issues they raise, we aim to provide the best employment experience possible.

Learning and development

We work to provide meaningful job and growth opportunities so our workforce is well positioned to make positive impacts at work now and in the future. We aim to increase the employability of our people through skill development, education programs and internal assignments that challenge employees and broaden their experiences.

Our curriculum is organized by topic across three categories, allowing employees to combine online and face-to-face content to suit their learning styles and objectives:

• Global leadership and management programs offer hands-on experiences in which participants solve real business problems alongside global peers. Learners emerge empowered to work in new ways, engaged in our global strategy and better connected to leaders across the business. Leaders play an active role in the teaching process and support learning in both formal and informal settings.
• The Future-Ready Workforce portfolio includes resources that help employees build skills and literacy in digital topics such as cloud computing, artificial intelligence (AI), machine learning and more.
• Our functional skills programming offers self-paced and instructor-led learning on state-of-the-art functional capabilities across sales, supply chain, marketing, finance, HR, R&D, sustainability and other areas.

Well-being

We offer a suite of programs and benefits to support employees in their personal and professional lives. PepsiCo’s employee well-being program is built on three strategic pillars:

• Be Well: Programs that promote physical health and help participants get moving, eat healthy and stay safe.
• Find Balance: Programs that support mental and emotional health and help participants manage stress, build resilience, improve financial well-being and enhance work/life quality.
• Get Involved: Programs that foster community involvement and build family and social connections, a critical element of well-being, including our One Smile at a Time volunteering program.

Employee well-being programs are available in all countries where PepsiCo operates. In addition to meeting local requirements for leave, some regions offer additional support or parental leave where applicable. In the U.S., PepsiCo provides a minimum of 16 weeks of pregnancy leave to support bonding between the parent giving birth and their child. The short-term disability plan covers 10 full weeks and the remaining six weeks are paid under the parental leave policy. The six-week parental leave benefit is available to new parents of all genders, including adoptive parents.

Progress

Metrics and goals

Actions

We are proud to be recognized for our work culture, retention and compensation. In 2025, we were awarded:

• Fortune’s “World’s Most Admired Companies” for the 19th consecutive year; and
• Top Employers Institute’s Global Top Employer in 29 countries around the world for the fifth consecutive year.

In addition, PepsiCo was also awarded Top Employer Global Certification for outstanding HR strategies and people practices, one of 17 companies recognized worldwide.

Recruitment

In 2025, we continued to grow our reach in traditional recruiting channels while also pursuing proactive pipelining strategies tapping into new sources of talent to reach future prospects. We know great talent can be found anywhere. We're focusing on expanding our campus, professional and executive recruitment efforts by increasing our relationships with search firms and schools to make sure we discover the best talent, no matter where.

Employee engagement

In 2025, 83% of all employees participated in PepsiCo’s Organizational Health Survey (OHS). PepsiCo’s OHS score stood at 80% with employee engagement at 81% and employee commitment at 78%. External benchmarking suggests that our employee engagement remains strong compared with other Fortune 500 peers.

In 2025, employees sent over 1.5 million smiles on the Smiles platform. Additionally, over 9,500 PepsiCo employees logged over 70,000 hours volunteering through One Smile at a Time. Volunteers contributed their time on issues important to our employees, their communities and the company, including water access, food security and economic empowerment.

Learning and development

We continued encouraging employees to utilize myeducation, which promotes upskilling and re-skilling, and myDevelopment, which provides additional insight into internal jobs and stretch assignments. Across the globe, our employees spent 2.6 million hours learning through our digital platforms in 2025.

Well-being

PepsiCo continues to make progress in expanding well-being programs globally. In 2025, we expanded access to our best-in-class financial education platform, extending availability to employees in 63 countries. In the U.S., we introduced a clinic-based medical plan to increase accessibility to top-rated healthcare providers.

PepsiCo’s health and well-being programs have received numerous awards recognizing the comprehensive and innovative program design as well as the effective communication and branding of PepsiCo’s benefits programs, including receiving the Business Group on Health’s 2025 Best Employers: Excellence in Health & Well-being award for the third consecutive year and being listed as one of Fast Company’s 2025 Corporate Wellness Innovators.

Challenges

In recent years, major world events have redefined the relationship between people and their work. Focusing on the employee experience requires constant adaptation to shifting market conditions, technology availability, talent expectations and employee needs. Through all of these changes, we continue to prioritize our employees’ experience at PepsiCo.

What's Next

Focusing on the employee experience will require continued emphasis on:

• Building talent pipeline strategies based on ever-changing market insights and talent dynamics;
• Supporting employees’ physical, emotional and financial well-being;
• Creating learning and development interventions that respond to new technologies and ways of working; and
• Evaluating and adapting to changes in employee engagement.

Calculation methodology

Target metric

Increase the employability of our people through increased access to degrees, skill development and new roles, providing meaningful growth opportunities to everyone at every stage

How we measure

Assurance, boundary, exclusions, baseline and restatements are not applicable for this metric. This metric is measured through qualitative information from various initiatives.