Coca Cola Total Rewards Program - Term Paper Example

 Coca Cola Total Reward Program Introduction The Coca Cola Company is the leading beverage Company with a portfolio of $20 billion brands (Coca-Cola Company, 2015a).They are leading provider of ready-to-drink coffees as well as teas, juice drinks and juices, and sparkling beverages across the world. The Company at present provides more than 1000 low-calorie and no-calorie products across the globe. It is even named on Top Companies for the Women Business Enterprises. The Coca Cola Company is identified as the most valuable brand of the world and is frequently related with happiness (Coca-Cola Company, 2015a). The company rewards their workforce for their exceptional work they perform in the organization. The proof of their commitment can be observed in their Total Rewards Program, which comprises of learning and growth, benefits, compensation, as well as work atmosphere (Coca-Cola Company, 2015a). The main rationale of this paper is to propose a Total Rewards program for the Coca Cola Company. The present mandatory capabilities and competencies of the business will also be taken into consideration. Further, recommendations will be provided for the total reward program along with the definite plans for communicating the changes if required any. The paper will also discuss the risks of not executing the program as well as the opportunities the program will provide to the Coca Cola Company. Background of the Coca Cola Company Goals and Objectives Objectives give an understanding of purpose, unity, and direction. They play a key role in outlining the base for firms for their decision making process. The objective of this company is to be internationally recognized as a business which conducts the business responsibility and to accelerate the sustainable growth in order to operate in tomorrow’s world (CocaCola Company, 2015b). The Coca Cola Company does this through targeting various areas around the world with a range of products, thus gaining their popularity and brand name. Through this objective, the company forms the base for the companies in their decision making process (CocaCola Company, 2015b). Challenges The Company is facing a range of global challenges such as water stewardship, climate change, and economic disparity. The Coca Cola Company meets the water stewardship challenge by using water in a more efficient way. They are involved in the water stewardship process across their system. The company is treating as well as recycling the wastewater. They aim to refill the quantity of water utilized in their refined beverages by 2020 (Coca-Cola Company 2015c). Values The values of this Company provide as a scope for their actions as well as describe how they behave in the entire world (Coca-Cola Company 2015d). With the help from their people, they have described behaviors that strengthen their values, which are discussed below: Leadership: The audacity to form a better/enhanced future. Collaboration: The Company leverage collective brilliance. Honesty: Be real. Accountability: Taking the responsibility of the better as well as the worse results. Passion: Dedicated in mind and heart. Diversity: As comprehensive as their brands. Quality: Focused on the product quality i.e. what they do, they do well (Coca-Cola Company 2015d). Total Rewards Program The Total Rewards Program of the Coca Cola Company includes learning and growth, benefits, compensation, as well as a work atmosphere which is aligned within the structure of their operations (Hodgetts & Luthans, 1993). The company believes that encouragement and recognition are instrumental elements of success. Compensation The continued success of the Coca Cola Company relies on building their brands, improving their customer service as well as maximizing their company’s value to the shareowners. The company depends on their employees in order to help them attain these objectives. The compensation program of the company is deliberated to help them attract, motivate, and retain their employees. Apart from an hourly remuneration or base pay, staffs are also eligible to take part in the incentive programs that reward group, individual or overall performance of the company. Eligibility for the incentives is based on the role and performance of the employee within the company (Hodgetts & Luthans, 1993). Benefits The Coca Cola Company provides several benefits to their employees. A personal life and gratifying career depend on the continued personal safety as well as future financial safety. Due to this reason, the company offers various programs in order to cover retirement, finances, and health. Their plans are designed to be valued by workforce and are competitive in the marketplace as well as are within the means for both the employee and the company. The examples of the plans offered by the Coca Cola Company include vision, medical and dental coverage, disability protection, retirement programs, life insurance, and the saving plans (Hodgetts & Luthans, 1993). Learning and Growth The Coca Cola Company has faith in the worth of mentoring and training its workforce, and due to this reason they offer targeted learning as well as development programs in order to exploit the professional growth of the workforce. By doing this, the staff can handle their own career path as well as drive progress within their company (Hodgetts & Luthans, 1993). Work Environment The Coca Cola Company develops positive associations with their employees through promoting honest and open communication. They value and respect their workforce and are also dedicated towards creating an inclusive, winning, and diverse culture (Hodgetts & Luthans, 1993). Segmentation of the Workforce The staff segmentation of the Coca Cola Company affirms that they differentiate their labor force depending on their different drivers, which are discussed below: Flexible Schedules Flexible schedules for example, compacted work weeks, telework, and flextime are some of the examples of enhancing deviation in the duration and timing of the work hours as well as the work locations. Traditionally, standard work agenda have been the applied in the companies, but as of now various companies are experimenting flexible work plans because they are changing work processes and employment systems across cultures and time zones (Jacobs, Gerson & Gornick, 2004). The workforces of Coca Cola Company are fond of flexible schedules as they are getting remuneration based on their overtime work according to the urgent requirements. Top Performers Top performers are those workforces who constantly exceed their objectives and thus make an unpredictable contribution to the result of the organization. These are those employees who are assigned to the vital projects and constantly produce incomparable value. By increasing and understanding the engagement of the top performers, the Coca Cola Company has an impact on the productivity of their workers by increasing their desire towards contributing their best (Boudreau & Jesuthasan, 2011). Growth Potentials These are those workforces who demonstrate their ability to become future leaders as well as show strong leadership qualities, such as functional leadership, a high-degree of self-consciousness, personal accountability and discipline, an in-depth knowledge of business, and capability to construct networks as well as inspire others. The high potentials of the employees help to determine the growth capability and the strategic direction of the Coca Cola Company (Boudreau & Jesuthasan, 2011). Workforce in the Critical Positions Workforce in this position may not be the high potentials’ employees or top performers, but they encompass an inconsistent importance towards the ability of the company to implement few of their strategy. A large inconsistency in their performance could represent a major downside or upside potential, which could be turned in competitive advantage. These types of employees can either break or make the business plan with their daily actions (Boudreau & Jesuthasan, 2011). Capabilities and Competencies of the Coca Cola Company Capabilities The core capabilities of the Coca Cola Company can be observed through its revenues and net income, which is $45,998 million and $7098 million for the year 2014 (Bloomberg, 2015). Other capabilities of the company are the consumer marketing, commercial leadership, and the franchise leadership (Hitt, Ireland & Hoskisson, 2014). Marketing investments of the Coca Cola Company are intended to increase the customer inclination/preference for and enhance customer awareness of their brands. This results in the long-term augmentation in per capita spending, unit case volume and their share of universal sales of nonalcoholic beverages. In most of the developed countries, the company invests in infrastructure programs and brands, however at a low rate than the revenue growth (Salmons, 2012). The commercial leadership capability of the Coca Cola Company states that they have billions of customers who serve or sell their products directly to the consumers. The approach of the company includes understanding business as well as needs of each customer’s whether they are kiosk possessor in the emerging market or complicated retailer in the developed market. They focus on ascertaining that their customers encompass the correct product as well as the right advertising tools in order to deliver better value to the company and also to themselves. The Coca Cola Company continues to develop their franchise leadership potentials to give their bottling partners and the company the capability to grow and develop together through a sense of flexibility and urgency, aligned incentives, and shared values that support changing tastes and needs of the consumers. The success of their bottling partners is a vital element for the Coca Cola Company’s success. The company works with their bottling partners in order to identify the system requirements which enable them to quickly attain efficiencies and sales. The franchise leadership capability allows the company to leverage latest acquisitions in order to expand their volume base as well as enhance margins (Salmons, 2012). Core Competencies The core competencies of the Coca Cola Company are their strong brand name as well as their arrangement with the distributors and bottlers (Cappelli & Crocker-Hefter, 1997). The strong brand name provides them a great leverage and bargaining power. The contracts between the company and its bottlers and distributors form a symbiotic interdependency among them. The company has made an investment in their production capacity, thereby strengthening their presence in the international and national territory (Mooney, 2007). The Coca Cola Company is facing major issue such as declined sales because the customers are cutting back on certain things for example junk food and soda in favor of their healthy diet. It has been analyzed that the current requirements of the company has changed due to the issue of declined sales faced by them. They are looking towards cutting almost 2000 occupations in order to decrease their yearly budget by almost $3 billion (Esterl, 2014). The latest cutbacks are publicized by the company just after they reported a decline of 14% in their third-quarter net income (Bloomberg, 2015). Recommendations of Changes in the Total Reward Program Though the Coca Cola Company provides various compensation as well as benefits under their Total Rewards Program, but some changes has been recommended in their Total Rewards Program in order to offer more benefits to their employees. It has been suggested that the company can implement maternity leave, adoption assistance, paid holidays, free lunch, and staff assistance program. The maternity leave will help the female employees of the Coca Cola Company to work from home and earn remuneration without coming to office. The adoption assistance program states that the company could repay up to 6 to 8K for an adoption of per child. This program will help the employees to get back the amounts up to 8K spend on the education of their adopted children. The Company can reimburse the amount once the documentations and receipts are received. Paid holidays will help the employees to work on holidays in return of which they will get extra wages. This will help the employees to earn more in case they need extra wages due to some personal financial problem. Some employees are eager to work on holidays to earn more. This program will help them to fulfill their dreams as well as to earn more. The implementation of providing free lunch will retain more employees in the company. The staff assistance program will assist the workforce to deal with their personal problems which might unfavorably impact their health and job performance. Risk of not implementing the Program The changes in the Total Rewards Program will help the Coca Cola Company to provide more benefits to their employees and will also assist them to retain as well as draw more employees. The company may face risk of losing the workforce as well as declining financial performance if they will not implement the recommended Total Rewards Program. This is because the female staffs need the maternity leave at least for 5-6 months. If the company will not provide the maternity leave to their female staffs then they may leave the company because no employee can put their effort in their job in that situation. This will result in the cutback of female employees, which will ultimately result in less output and therefore decline in the financial performance. Some employees are in need of more wages due to their financial problems and sometimes urgent requirements come due to which they have to work on holidays also. If the company will not provide wages for working on holidays then their enthusiasm will decrease and they will find ways to leave the company and will look forward to work with those companies which provide more benefits. If the Coca Cola Company will not provide the staff assistance program then they can face the risk of poor job performance of their workforce and this will finally have an effect on the financial outcome of the company. Metrics for Evaluating the Total Reward Program The metrics for evaluating the total reward program along with the timeline is presented above. The Total Rewards Program chosen are the maternity leave, adoption assistance, paid holidays, free lunch, and staff assistance program. The maternity leave program is chosen because it will provide the female employees to work from home if they are willing to work and earn wages without coming to office. The adoption assistance program will help the workforces to get back the amounts spend on the education of their adopted children and this will help to retain more loyal employees. Paid holidays will help the staffs to earn more if they have to work on holidays due to the urgent requirements. The staff assistance program will help to improve the performance of the employees by providing them training and will also result in the increased financial performance of the company. Market research on various reward programs provided by different companies will be done in the first month. The needs of the workforce will be considered in the second and third month to know that what facility they need to perform better. In the second and third month the company will discover what rewards programs their peers are providing. Then the company will set budgets in the third and fourth month to implement the changed Total Rewards Program. In the fifth and sixth month, the Rewards Programs will be developed. The risk will be assessed in the sixth and seventh month, if there exist any. The process will be designed in the eighth and ninth month and the program will be reviewed in the tenth month whether they are providing benefits to their workers or not. Conclusion The paper is proposed to present the Total Rewards Program for the Coca Cola Company. The company is already practicing various Rewards Programs which is providing several benefits such as vision, medical and dental coverage, disability protection, retirement programs, life insurance, and the saving plans to their employees. Though, some changes in the Total Rewards Programs have been recommended in order to provide more advantages to the existing employees. Metrics for evaluating the programs have also been discussed along with the timeframe of ten months. The Coca Cola Company will face some risks such as losing of workforce as well as declining financial performance if they will not implement the recommended Total Rewards Program. By implementing the program, the company will enhance the performance of existing employees and this will ultimately result in the improved financial performance. References Bloomberg. (2015). Coca-Cola Company: Financial Statement. Retrieved from http://www.bloomberg.com/research/stocks/financials/financials.asp?ticker=KO. 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Retrieved from http://www.wsj.com/articles/at-coke-newest-flavor-is-austerity-1419352337. Hitt, M., Ireland, R.D., & Hoskisson, R. (2014). Strategic Management: Concepts, Competitiveness and Globalization. United States of America: Cengage Learning. Hodgetts, R. M., & Luthans, F. (1993). US multinationals' expatriate compensation strategies. Compensation & Benefits Review, 25(1), 57-62. Jacobs, J., Gerson, K., & Gornick, J. (2004). The Time Divide: Work, Family and Gender Inequality. Cambridge: The Harvard University Press. Mooney, A. (2007). Core competence, distinctive competence, and competitive advantage: What is the difference?. Journal of education for business, 83(2), 110-115. Salmons, A. (2012). The role of marketing auditing and planning for Coca-Cola Corporation. The Australian Journal of Business and Informatics, 5(1), 20-25. Read More