Total Rewards Program for Coca-Cola Company - Research Paper Example

THE COCA-COLA COMPANY Introduction In 1886, local pharmacist Dr. John Smith Pemberton through his own experiments invented a liquid that was caramel in color. He then combined the liquid with carbonated water and created a soft drink, which customers who sampled described as special. Maintain the formula, the pharmacist reproduced the drink for sale in glasses. This was before the doctor together with a colleague came up with the name Coca Cola attesting to the taste. The two had unknowingly created the basis for a brand that would be recognizable in nearly every country in the world. Later in 1889, Asa Griggs Candler bought the drink’s formula and brand and started large scale production of the drink through the incorporation of The Coca-Cola Company in 1892. From then on, the company grew into a multinational beverage franchise with over 400 products sold and marketed in over 200 countries. Headquartered in Atlanta, Georgia, the American firm specializes in manufacturing, marketing and retailing of its wide range on nonalcoholic drinks’ syrups and concentrates. The ever growing brand surpasses any other nonalcoholic brand with statistics showing more than 2 billion of its trademark drinks are consumed everyday. Company objectives Coca-Cola’s main objectives is to explore every available market on the globe in order to achieve the status of being a global brand that responsibly and ethically conducts its business while accelerating sustainable growth for operation in the world of tomorrow (The Coca-Cola Company, 2014). This objective is the basis for the development of the company’s set of goals and strategies al of which revolve around achieving this main goal. Company goals The Coca-Cola Company is a global beverage brand with patents to over 500 brands of nonalcoholic beverages which it produces, markets and licenses globally. With segments in nearly all continents, the company has had to establish a set of goals that will guide its operations. In its mission statement the organization claims that it seeks to refresh the mind body and spirit of the world while inspiring moments of optimism and making a difference in every place it operates as well as creating value at the same time through the organization’s actions and brands (Coca-Cola GB, 2014). In order to achieve the company established a set of goals towards which it works towards along with its subsequent bottlers. The first is to create a great workplace environment that inspires the employees to be the best they can be (The Coca-Cola Company, 2014). Then there is the portfolio goal that seeks to refresh the world by producing and availing beverage brands that both anticipate and satisfy the desires and needs of the consumers. The mission describes the company as people centered thus the goal of nurturing a winning network with the partners, consumers and suppliers that will result in the creation of loyalty to the brands. To make this possible, the company needs to develop into a highly effective and lean organization that is always on the fast track in its actions. This constitutes goal number four. At the same time, the company seeks to maintain good corporate responsibility through being a responsible citizen of the world. Finally, all these come together to create the main goal that is to maximize on shareholder returns while minding its overall responsibilities. Company challenges Internally, the company has endeavored to reduce all challenges that may hinder its production capabilities. However, the company has little control on the external factors. These have posed a challenge to the achievement of the organization’s goals and objectives. The recent global recession is the main challenge. This threatened to reduce the overall demand and therefore consumption on the company’s products as consumers are not ready to spend more on luxury products. Then there is the issue of the dollar effect in international markets (Coca-colacompany.com, 2014). The strengthening of the dollar weakens other currencies which results in the rise in the prices of the products in the international markets affecting their performance and reduces the company’s earnings. The second challenge has to do with the health issues associated with the company’s brands. Due to their high sugar content, the drinks have been associated with such issues like type 2 diabetes and obesity. As such, health organizations that are now putting more focus on the issue are warning people about high soda consumption that has seen consumption growth rate reduce (Coca-colacompany.com, 2014). However the introduction of sugar free and low calorie brands like Coke Zero and Diet Coke, respectively, is aimed at cancelling this out. Then there is the new trend of drinking tap water that is believed to be healthier than bottled water that has seen consumption of the company’s bottled water, Dasani decline. Workplace environment The multinational Coca-Cola Company has over 136,000 employees in over 200 nations. As such its workforce consists of a team of professionals that has diversity in culture and traditions. However, for a successful utilization of this diverse workforce in a nature that is positively moving towards attainment of organizational goals and objectives, it is necessary to develop a workplace environment with a culture that does infringe on that of any individual employee. This culture is held by three pillars, one company one team and one passion (Foster, 2008). The one company pillar allows for the free sharing of ideas with support being generated for every individual in the organization. One team is based on the idea that it is the employees that help realize the organization’s success. As such, the participation of every individual is required in the attaining the set goals. One passion stands for just that. The organization believes in going further than its portfolio. This is done through the creating a workplace that the unique abilities of all employees, spreading the joy of the brand, supporting communities and preserving the planet (Foster, 2008). All these are aimed at creating a positive relationship with the employees and maintaining a professional workforce that is happy, satisfied and inspired to partake in the various duties that make the company a leading brand. To do so the company needed to develop a total rewards program to compensate the employees and provide benefits. Coca-Cola changes The company is more than a century old. This means that the brand’s products are growing old as the consumers grow tired of the same products. The reduced consumption of carbonated soft drinks that make up a large part of the company’s turnover has also made that the company has had to make innovative changes to its marketing (Dan, 2013). First the company decided to innovate its packaging. The iconic contour shaped coke bottle will be a hundred years old in 2015. The company tried packaging the drink in other package but sales started declining. This brought the ingenious idea of customizable packing branding the ‘drink in bottles labeled with common names like Dave in over 30 countries. The result was a spike in sale. The idea that the company needed to do everything that dealt with its brands on its own has seen a change with the company forging partnerships to help in production, marketing and sale of its products. This has helped in market capitalization. The company’s products and equipments are the third area of focus for its innovation. The company has acquired over 500 beverage brands worldwide as a strategy of expanding its size. It continues to endeavor acquire new and upcoming brands as a method of expanding its operations and cancel out its overreliance on the Coca-Cola beverage drink (Dan, 2013). In the equipment area, Coca-Cola the company seeks to expand how its products reach the market through the utilization of new equipment like the freestyle machine that creates a cocktail of drinks instead of just vending one drink. Fourth, the company wants to change how it engages the market by introducing the term consumer provocation that seeks to provoke happiness instead of just promoting it. This is through the sharing of stories on social platforms. Finally, Coca-Cola wants to reinvent itself in the field of cultural leadership. The marketplace has seen reordering that has seen the brand’s relevance start to wane due conversations on issues like obesity. To counter this, the company has adopted a framework that consists of diversification in low calories drinks, portrayal of nutrition information and the encouragement of the population’s well being. Coca-Cola total rewards program A total rewards program consists of all tools at an employer’s disposable that may be incorporated in the attraction, motivation and retaining of employees. Total rewards consist of compensation, benefits, development and career opportunities, work-life, as well as performance and recognition. The Coca Cola Company has a total rewards scheme that consists of both monetary and non-monetary rewards. Monetary rewards The major monetary reward is the base pay (The Coca-Cola Company, 2014). The company employee is eligible for a base pay that is competitive and structured in a manner that rewards that helps reinforce a winning culture. There are also incentive programs that allow for the rewarding of individuals or groups that have had an outstanding performance. There are other benefits like pension, insurance, cover seniority allowances as well as a wide range of savings schemes. The rewards accorded to the employees however depend on the workplace culture of the branch of the main company. This means that the rewards vary from country to country. Non monetary rewards The happiness and satisfaction of employees that is important for successful company operations requires more than just monetary rewards. It is necessary for the reward scheme to take into account the continued well being of the employee. This has seen the company provide benefits to its employees. These differ across territories (The Coca-Cola Company, 2014). These benefits consist of a retirement plan, company car, free medical check ups, private health insurance, fuel benefits, discounted childcare, holidays, vouchers, commuting as well as representation allowances. The company believes in investing in its employees as a mode of improving service delivery. It also seeks to improve and grow them professionally. As such the scheme also allows for the mentoring and training of the workforce. This is through the provision of developmental and learning programs aimed at seeing the maximization of the employee’s growth in their various professions. This enables them to manage their career paths driving the company’s advancement. Still under the topic of employee wellbeing, Coca-Cola understands the importance of its employees having a balance of their personal live and the work environment. This has seen it develop elaborate rewards such as holiday entitlements, discount schemes for products, working arrangements that are flexible to employee schedules as well as assistance programs. Proposed total rewards program A total rewards program should cover all components of total rewards. The current model used in total rewards in the Coca-Cola Company has been in place for sometime (Worldatwork.org, 2014). However, according to the principles of total rewards programs, a review of the programs is necessary in order to enhance motivation. As such this program is designed to provide an improvement of the current scheme while at the same time correcting inconsistencies through various steps. Step 1 First, the company needs reevaluate the job description of the employees in accordance with the company’s objectives. This will involve coming up with new job evaluation requirements, with modifications being carried out where needed (Manas and Graham, 2004). The descriptions for every position will also need adjusting. Here the jobs which have been significantly changed need to be noted. The company will then need to collect information from the labor market that is concerned with the pricing. This will be used in evaluating and identifying the pricing gap. This will be through the comparison of the current market prices to the organizations pay rates. This is then used to define the preliminary job rates, determine the total cost that will be accrued as a result of the new job structure and help in the assigning of job grades. The next step will involve reviewing the proposed base pay with the committee mandated with salary determination in the organization. Next, the company will have to conduct a comparison of the new requirements necessary for conducting business to the changes in job descriptions and roles (Manas and Graham, 2004). This will involve summarizing the situation of pay and incentives and using it in the comparing of the requirements with the present features and strategies of the program. An analysis of the comparison is necessary as it will help in the creation of a future total compensation strategy. This will involve identification of the new behaviors that need introduction into the company’s policies as well as those that need modification before recommending them to key stakeholders. Coca-Cola will then need to adapt to a philosophy of total compensation with performance management features, base pays and incentives being redrafted in order stimulate the desired focus and behavior among the employees. Here the schedules for pay outs as well as targets needed for incentives will need revising. Step2 This step mainly deals with the redesigning of the existing program. It should first involve the definition of the participants of incentive pays to clarify who is entitled to what as well as giving a description of the targets. Market pricing needs to be finalized with a confirmation of the revised procedures for incentives and metrics of the performance management being provided by the project teams. Validation of the recommended design and changes to the program is necessary at this point (Manas and Graham, 2004). This is done through the consulting of the senior management. Finally, modify the formulas used in calculation of pay increases and incentives and reporting of metrics. Prepare the tools that the programs will use before modifying the general guidelines for the changes. Step3 This involves communication of the new program to the concerned parties. Here the company will have to determine the information needs of the stakeholders in order to determine the strategies that will be implemented in the communication process. The employees will need training on the program to ensure proper understanding (Manas and Graham, 2004). Questionnaires may be handed out to determine how well they understand the program. Finally, after there is proper communication of what the program entails, the company should implement the program in the total rewarding of the employees. This will involve the review of the qualifications of the employees. This will help in determining their key output areas as well as training requirements and the paths the careers of individuals may take. All these lead up to the determination of the new job codes as well as the respective pay rates for the employees that will be used in developing the company’s job structure. A recommendation on new pay rates for special situations is necessary. . Finally the company will have to integrate the changes to the pay rates, incentive targets and other components of total rewarding in its current offers of employment. Step objective action start date completion date Step 1 Creation of new job descriptors Reevaluation of job descriptions, base pay and incentives 10/10/2014 20/11/2014 Step 2 Redesign of current total rewards program Incorporation of models of change 25/11/2014 12/12/2014 Step 3 Achieve proper understanding of the new total rewards program among the employees Communicate the program through various media as well as use of training to spread the knowledge 2/01/2015 2/04/2014 Conclusion The Coca-Cola Company is one of the oldest, largest and most recognizable brands in the world. From humble beginnings to the multinational firm that it is at the moment, the company has seen immense growth. Its objectives, goals and visions are centered on improving the lives of people and conserving the planet. The company cares about the employees and establishes a good working environment that is fit for everyone. It has a good total rewards program that focuses on the wellbeing of the employees. The study of the company’s total rewards scheme as well as the development of a new strategy enlightened my knowledge on organization rewarding schemes and their importance in ensuring good service delivery as well as organizational success. References Coca-Cola GB,. (2014). Coca‑Cola Mission Statement & Company Values : Vision Statement. Retrieved 28 September 2014, from http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-statement.html Coca-colacompany.com,. (2014). Global Challenges - The Coca-Cola Sustainability Project. Retrieved 28 September 2014, from http://www.coca-colacompany.com/sustainabilityreport/global-challenges.html Dan, A. (2013). Just How Does Coca-Cola Reinvent Itself In A Changed World?. Forbes. Retrieved 28 September 2014, from http://www.forbes.com/sites/avidan/2013/10/07/just-how-does-coca-cola-reinvent-itself-in-a-changed-world/ Foster, R. J. (2008). Coca-globalization: Following soft drinks from New York to New Guinea. New York: Palgrave Macmillan. Manas, T. M., & Graham, M. D. (2004). Creating a total rewards strategy: A toolkit for designing business-based plans. New York: American Management Association. The Coca-Cola Company,. (2014). Objectives. Retrieved 28 September 2014, from http://thecocacolacompany-sabrinayang.weebly.com/objectives.html The Coca-Cola Company,. (2014). Why Work at The Coca-Cola Company. Retrieved 28 September 2014, from http://www.coca-colacompany.com/careers/why-work-at-the-coca-cola-company Worldatwork.org,. (2014). Retrieved 28 September 2014, from http://www.worldatwork.org/waw/adimLink?id=28330 Read More