International Human Resource Management Practice in Nestle

Report - International Human Resource Management Practice in Nestle

Submitted by: Shruti Dongare

Table of Contents
Nestle Recruitment Process.......................................................................................2
Internal Recruitment ..................................................................................................2
External Recruitment .................................................................................................3
Selection Process .......................................................................................................3
Steps in the selection process follow by Nestle ........................................................4
Assessment and testing ..............................................................................................4
Training Process ........................................................................................................5
Development Process ................................................................................................6
Compensation............................................................................................................7
Performance Related Pay (PRP) ...............................................................................9

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 International Human Resource Management Practice in Nestle

Nestle Recruitment Process

Nestle is a swiss based multinational food and drink manufacturing company. Nestle have their
subsidiaries in Bangladesh. Recruitment is the process of searching and attracting the right
candidates in an organization for hiring them for vacant position. Recruitment refers to the process
of searching for potential candidates and influencing them to work for their organization. The
purpose of the recruitment process is to find out talented and qualified individuals for the growth
and development of their organization. It is part of the human resource management department.

There are two sources of recruitment that Nestle follow

▪ Internal Recruitment
▪ External Recruitment
Internal Recruitment

Job posting program

A job posting program is the official announcement of an open position for which the
company is actively seeking a new hire. Nestle informs staff concerning gap and needed
qualifications and invite qualified staff to apply. The notice typically is announced on
company bulletin board or electronic bulletin board or within the company newspaper.
Posting the requirements is through
a) Mail
b) Intranet
c) Notice board.
Rehiring
Rehiring candidates are those employees who previously worked for Nestle and apply for different
position. Nestle follow rehiring process for internal recruitment. It is not time-consuming process
because the organization have existing employee data and records. Within short period of time
organization can take their ultimate decision.
Succession planning
Succession planning is the process of training and preparing employee in an organization so that
there will always be someone to replace an employee who leave the organization. Nestle prepare
managerial position employee before some leave their organization and promoted for higher
position.

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External Recruitment
Walk-ins and Write-ins
Walk-ins are job seekers who arrive at HR Department of Nestle in search of job.
Writeins are those who send a written inquiry if there is job vacant available or not.
Through these processes Nestle select potential candidate for recruitment process.
Through portals sourcing of candidates in two ways:
a) Searching Resumes Search resumes in portals with the help of job description.
b) Job Posting Post jobs in the portal, interested candidates will apply for the position.

Advertisement
Nestle posted their requirement advertise in newspapers, online portal, social media,
billboards etc. platform.

Consultants
Company requirements can be posted to consultants.

Educational Institute
Nestle attend top listed public and private university job fairs to attract the potential and
top merit list candidates.

Selection Process
Selection process means choosing the best fit candidate. There are 8 steps which is followed by
Nestle. Based on the designation and post it varies. Nestle recruitment team will provide a
professional, timely and responsive service for selection process. It is important to conduct
selection process for selecting the right person both for the job, and for the company. The
recruitment process can take up to nine weeks from your application through to offer stage to be
successful, and our recruiters will inform every step of the way.
Once Nestle receive candidate application, they will analyze candidate skills and experience to
assess the match to the role profile. Candidate will then be contacted by one of their recruitment
team.
The next phase is a series of individual interviews with the Human Resources team – either by
phone or face-to-face interview. If candidate is successful, candidate will then be interviewed by
the appropriate hiring manager. It is worth noting that Nestle will looking at candidate potential fit
with their culture as well as exploring candidate achievements and motivations.
Throughout the process, nestle will use competency-based interviewing techniques that will draw
on candidate experiences and real examples from candidate professional life.
If candidate is applying for a graduate position and candidate are successful at interviewing stage,
candidate may be asked to an Assessment Centre. Here candidate will be assessed alongside other
candidates and candidate will have the opportunity to demonstrate the knowledge, skills, and
abilities to make a lasting impression.

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Steps in the selection process follow by Nestle

Preliminary reception of application

Nestle conduct written examination for candidate. Through these evaluation process nestle
will be able to shortlist and potential candidates.
Employment tests
Employment tests are devices that assess the match between applicants and job
requirements. Some are Paper and Pencil Tests and some are exercising that Simulation
work condition.
Selection interview
Nestle takes viva examination for previously selected candidates. In these viva session
interviewers ask question to candidate.
Reference and background checks
It is the most important and significant task for nestle before finally selected candidate.
Medical evaluation
The evaluation consists of a health checklist that asks the applicant to indicate health and
accident information.
Supervisory interview
Hiring decision
Nestle hr department or supervisor makes the ultimate hiring call that marks the top of
choice method assumptive that candidate accepts the job offer.

Assessment and testing

Certain positions may require assessments such as

Psychometric testing
The assessments of Nestle use cover the following areas – abstract, verbal, and numerical reasoning
as well as personality and motivational profiling. They use this to additional information on his/her
suitability for the position that applying for. Candidate will be given the opportunity to receive
verbal feedback as part of the psychometric testing stages.
Case studies
A case study is an opportunity for candidate to showcase his/her experiences. Given a scenario
relevant to the job applied for and asked to prepare a short presentation or response. The hiring
manager, whilst at the same time, receiving verbal feedback on that approach.

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Medical assessment
Some positions may require candidate to undergo a pre-placement medical assessment. The details
of an assessment will be given to candidate if relevant to the position he/she are applying for.

Training Process

The training and development programs Nestle follows is laid out by their corporate headquarters
to ensure that each employee in each department receives the same training as any other in a similar
role no matter where they may be to have a uniform skill set within the organization.
Nestlé uses various types of trainings:

• On-the job training

It is a training which is operated at the sight of the company or training is carried out the
working is running; it is really an effective process played by various well leading company
and this system also played by the Nestlé. They use e-learning systems but does not
subscribe to the use of teleconferencing for training. Nestlé also uses simulators to teach
leadership functions.
• Local training
On issues ranging from technical, leadership, and communication and business economics.
Two-third of all Nestle’s employees work in factories most of which organize continuous
training to meet their specific needs. A few Nestle’s operating companies run their own
residential training centers.
• In- house training
These trainings are primarily command among the workplace premises and typically get
conducted by the senior managers who are specialist in several field. Alternative
specialized coaching is provided by external or internal specialists within the kind of
lectures, seminars, or keynote speeches.
• International training
Rive-Reine, their International Training and Conference Centre in Switzerland is where
Nestlé people from all over the world meet to exchange information and ideas in seminars
and training courses. Need-based training are also provided by Nestle to the employee
through the usage of appropriate external training.
Rive-Reine, their international training and conference Centre in Switzerland is wherever
Nestlé individuals from everywhere the planet meet to exchange data and ideas in seminars
and coaching courses. Need-based coaching also are provided by Nestle to the worker
through the usage of acceptable external coaching.

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 International Human Resource Management Practice in Nestle

• Nestle apprenticeship program

Nestle’s apprenticeship programs have been an essential where the young trainees spent
three days a week at work and two at school.

• Diversification training
It is a process of training where staffs work at the different level and post of the
management and identify the efficiency and effectiveness of their work ability. It is
important for the workers in MNC’s like Nestle to provide the values of the company in
every different region they are operating, thus learning about diversification is important
for cross-culture business operations.

• Off-the job training

This process is also an effective training for internal staffs, but it can be painful and
fluctuate staff’s confidence and motivation, because it is quiet time consuming and costly
which bared by company, but in may stages of the efficiency of a company or to make an
efficient staff company may play this training.
While Nestlé sometimes attends trainings from external organizations such as bdjobs.com, it does
not offer training to other companies. For functional skills Nestlé prefers the use of technology to
teach general skills and classroom training. Central HR directly handle the advanced leadership
training. Nestle’s decentralized training and learning nature provide the opportunity to acquire
knowledge and tools they need to respond to local needs, which country they are work in. It has a
culture that motivate their people to work with different people with different country, which leads
to a multinational organization. Training programs are generally purpose oriented and designed to
improve relevant skills and competencies which will help them to move on to the next managerial
level in their organizations. Specially management and executive courses are provided for
managers. Nestle’ mainly focus on the job training methods by the Nestle; people itself not by the
professional outside trainers, which means part of the training structure in every company focused
on developing managers’ own coaching skills, so in many cases the manager is personally involved
in teaching and mentoring practices as a way of communicating knowledge to their fellow
members.

Development Process

Training and Development is a key to improve the performance of the employees of organization
by increasing an employee’s knowledge and ability to perform through training, usually by
changing the employee’s attitude or increasing his or her skills and knowledge. In various nations
and cultures, Nestle's approach to training varies, it is necessary to compare the different training
methods targeted at different individuals in different nations. An important part of the community
of Nestle, in which training, and development plays a major role. The quality of the evaluation of
training programs directly relates to the company's overall performance. Successful workforce

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appraisal helps to evaluate the correlation between acquired expertise, organizational knowledge
transfer, and training.it can optimize the ROI of training and help to determine the future of training
programs.
In the form of a questionnaire, Nestlé takes feedback on preparation. The quiz is double-sided; the
views of both trainees and trainers about the training and facilities offered are polled. From both
the trainers and trainees, Nestlé takes informal quizzes. Although this helps to enhance logistics
optimization, it is of limited use in determining the efficacy of preparation. The organization also
has the benefit of researching a large population while allowing it to ignore the inconsistencies that
can occur from a single session. These performance assessments involve methods of job sampling
in which candidates are asked to show the requisite skills they have by conducting the assignment.

A follow-up interview is the other main method of conducting a medium and long-term
assessment. This could be a challenging task for Nestle, since it is a global organization, to assess
trainers globally. If the line manager performs the interview rather than a remote teacher, many of
the expense concerns can be avoided, but you must be confident that the line manager is not too
close to the learner and has the requisite expertise to perform productive interviews.

Compensation

Compensation are the rewards employees get from the organization for their work. International
compensation refers to all forms of financial returns and tangible benefits that employees of an
international organization receive from their employer in exchange for providing their labor and
commitment. Rewards can be wages, salaries, incentives, commission etc. The purposes of
compensation are to motivate, inspire employees to do work hard with efficiency for the best.
Nestle does follow compensation too.
There four different key components of compensation
1. Base Salary
2. Foreign services inducement and hardship premium
3. Allowances
4. Benefits

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 International Human Resource Management Practice in Nestle

Nestle Compensation Package

1. Base Salary
Base salary is a fixed amount of money provide to the employee by the employer in return of their
work performance. Base salary does not include bonus, benefits, or other potential compensation
from the employer, but it is a basic foundation for other compensations. Bangladesh Nestle Base
salary is nineteen thousand to twenty-one thousand for employee's work performance.

2. Foreign services inducement and hardship premium

Parent Country provide additional amount of money to the expatriate for their risky assignments
or to join any risky location. Their hardship premium can be 5 to 30 percent or more of their salary.
Nestle provide that additional payment for risky tasks at most 30 percent.

3. Allowances
Allowances are the payment for better living. Nestle takes different types of allowances, such as:

I. cost of living allowance: Cost of living is only applicable for Multinational

organization. Nestle provide adjusted mount to the basic for employee's better living.
II. Relocation allowance: Relocation allowance is taken when an employee shift to other
country or move to other country for the organizational purposes then the organization
take the travelling cost including other costs. Nestle takes relocation allowance for higher
level managers.
III. Education allowance: Nestle provide educational allowances for stuffs children. Nestle
does not provide cost only for employee's children education but also for non-employee’s
children such as day labors children, farmers children.

IV. Alternative allowances:

a. Housing allowance: Nestle provides Fixed housing allowance for the employees.
b. Medical allowance: Nestle takes responsibility for medical issues of the employees.
provide health care, takes costs of medicals.
c. Transportation allowance: Nestle provides transportation benefits to the employee throw
providing cars.
4. Benefits:
Nestle provides a lot of benefits already mentioned previously. Alternatively nestle provide annual
benefits for traveling as a vacation with families. Nestle provide additional leave expense in
hardship location. Nestle gives emergency provision in case of death or illness in the family.

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Performance Related Pay (PRP)

The payments added on top of the base payment of an employee due to their better than average
performance is known as performance related pay. Performance related pay can be of three main
times - strategic pay, flexible pay, and variable pay.
Strategic pay is a special pay that goes against the assumption that a business's approach to
payment should be mixed with the current best practices of the firm. This type of pay originates
when a firm maps out its business strategy and organizational design.

On the other hand, when the payment of the employee is closely linked to the prevailing market
circumstance, it is known as flexible pay. The satisfaction of the customers, recurring revenue,
customer retention, and other key performance indicators are factors that determine the total
payment made to employees. It's based on the skills and experience with which they accomplish
their job rather than on static roles and responsibilities. This allows for greater movement of labor
as employees can be assigned projects that match their skillset.

Finally, variable pay is only given as a financial incentive after the employees have made a
favorable impact on the firm's business strategy. The recommendation from Heery (1996) is that
the proportion of pay should increase proportionately as the total remuneration of an employee
increase Strategic pay is a special pay that goes against the assumption that a business's approach
to payment should be mixed with the current best practices of the firm. This type of pay
originates when a firm maps out its business strategy and organizational design.

On the other hand, when the payment of the employee is closely linked to the prevailing market
circumstance, it is known as flexible pay. The satisfaction of the customers, recurring revenue,
customer retention, and other key performance indicators are factors that determine the total
payment made to employees. It's based on the skills and experience with which they accomplish
their job rather than on static roles and responsibilities. This allows for greater movement of labor
as employees can be assigned projects that match their skillset.

Finally, variable pay is only given as a financial incentive after the employees have made a
favorable impact on the firm's business strategy. The recommendation from Heery (1996) is that
the proportion of pay should increase proportionately as the total remuneration of an employee
increase.