The link between a firm’s human resources and its plans, priorities, and aims is known as strategic human resource management. The goal of strategic human resource management is to promote flexibility, creativity, and competitive edge, as well as to create a culture that is functional. Even though PepsiCo demonstrates adequate statistical results and relevant numbers, the company possesses several shortcomings related to strategic human resource management.
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The concept of strategic human resource management is related to aspects of human resources that function in accordance with the organization’s strategy and objectives. Strategic human resource management (HRM) has evolved into a unique subject of research throughout the last three decades as human resources keep on playing an increasingly vital role in modern enterprises (Jiang & Messersmith, 2018). HRM methods and their interconnections with other aspects of an organizational setting, such as the company’s environments and the numerous actors who assess the organizations’ success, are studied in strategic HRM (Jiang & Messersmith, 2018). PepsiCo’s purpose as one of the globe’s leading food and beverage corporations is to deliver delicious, competitive, accessible, and complementary snacks and drinks to customers all over the world (PepsiCo, 2022). Thus, HRM in PepsiCo strives to achieve its goals in customer satisfaction by hiring and developing employees that will be able to adhere to the company’s rules and missions.
Concerning the problems of PepsiCo, it is feasible to emphasize the issue of employee retention. PepsiCo is in the leading 20% of similarly sized organizations in terms of employee retention (Comparably, 2022). Although 63% of employees would not quit PepsiCo if offered an external position, approximately 37% are capable of doing so (Comparably, 2022). The classification underlines PepsiCo’s dedication and commitment to maintaining individuals inside the company (Comparably, 2022). In terms of the strategic HRM concept, it can be stated that in order to accomplish its goals, the company attempts to retain workers for further development. At the same time, there is a substantial number of employees inside the organization that can potentially leave the firm due to the absence or lack of job satisfaction.
Considering the aspect of lack of diversity, it is compulsory to emphasize that PepsiCo has a rich history of social inclusion and paying attention to diversity at the workplace. PepsiCo has a longstanding experience of pioneering diversity efforts, beginning in the 1940s with the employment of African American marketers (PepsiCo, 2022). However, it can be noted that in the current situation there are drawbacks connected to human resource diversity in PepsiCo. As part of the present focus on diversity and inclusion in PepsiCo, women leaders and managers should be encouraged and developed from the standpoint of their own professional path (Beba & Church, 2020). Highlighting compensation benefits, PepsiCo should track the decisions in this sphere made by its competitors to ensure the level of payments and support is appropriate and the workers will not be disregarded. In terms of the strategic HRM, it can be suggested that diversity and compensation benefits will improve organizational performance in the long-terms due to increased respect for the company for the measures it has taken.
In conclusion, HRM at PepsiCo aims at meeting the company’s customer satisfaction objectives by employing and developing people who can follow the company’s policies and missions. When it comes to PepsiCo’s challenges, it is possible to highlight the issue of staff retention. It should be mentioned that there are certain limitations associated with PepsiCo’s human resource diversity. In terms of compensation benefits, PepsiCo should keep track of its rivals’ actions in this area to ensure that the volume of payments and assistance is acceptable and that workers are not overlooked.
Beba, U., & Church, A. H. (2020). Changing the game for women leaders at PepsiCo: From local action to enterprise accountability. Consulting Psychology Journal: Practice and Research, 72(4), 288–302. Web.
Comparably. (2022). PepsiCo Retention Score. Web.
Jiang, K., & Messersmith, J. (2018). On the shoulders of giants: A meta-review of strategic human resource management. The International Journal of Human Resource Management, 29(1), 6-33. Web.
PepsiCo. (2022). About PepsiCo. Web.