E-Hr in P&G
Introduction to Procter & Gamble Procter & Gamble (P&G) is a multinational corporation that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies. The global consumer goods company was started by William Procter, an English candle maker & James Gamble, an Irish soap maker in 1837, and has been well established since then, ranking fifth place of the “World’s Most Admired Companies” by Fortune Magazine . P constantly strives to provide branded products and services of superior quality and value that improves the lives of the world’s consumers , where P brands serve 4.
billion people in more than 180 countries. A High Performing Organization Being a multinational corporation, P values its people as the company’s most important as-set and source of competitive advantage, and understands that its success greatly depends on the strength of the talent pipeline. The Human Resources department inevitably plays an im-portant role to the company, responsible in attracting the top talents, managing P talent globally to enable career development and growth across businesses and geographies and de-veloping leaders at P around the world in every business, in every region and at every level.
In view of the fast technological advances, P continues to stay at the global frontline by in-corporating e-HR into its everyday processes such as selection, recruitment and training. The use of the Human Resources Information Systems (HRIS) was also able to increase administra-tive efficiency and produce reports that have the potential to improve decision making for managers. E-HR not only provided human resources departments with the opportunity to make information available and accessible to managers and employees, but was also able to improve the company’s overall efficiency and effectiveness.
With all its efforts over the years, P has been widely recognized as the industry’s global in-novation leader and brand-building leader of the industry, being consistently ranked by leading retailers in industry surveys as a preferred supplier and generating $82. 6 billion dollar of sales in 2011 alone. The HR department was also awarded the “2010 Asian Human Capital Award from Singapore’s Minister for Manpower”, a highly recognized award in the industry. Technology in HR Functions Training & Development
Early 2000s Being a global company that has hundred years of history, P&G owes its success partly to its large pool of capable and well-trained workforce. P&G trained its workforce on a regular basis. Since early 2000s, P&G sees the need to share product information and knowledge to its em-ployees quickly, while keeping its employees skilled and knowledgeable. P&G thus appointed Saba Learning Enterprise to develop an Internet-based learning system to be used by over 100,000 of its employees in over 70 countries .
Through the collaboration with Saba Learning Enterprise, P&G were able to have a scalable system which featured various functions through its web compatibility. Powering the RapidLEARN initiative , Saba had helped P&G to consolidate multiple Learning Management Systems (LMSs) into one that improved the company’s global learning pace, thus reducing its costs greatly . New strategies and direction could be passed on to its employees with great consistency. Through the development of such integrated system, P&G was thus able to meet the needs of various business requirements.
As a result of this, number of employees that utilized e-learning had increased from less than 5% to over 25% . It was estimated that such initiative had resulted in cost savings of around $14million after 5 years. In 2003, P&G moved on to engage BrightWave, UK e-learning developer, to transform its in-house presentation materials into an online training program, a 2-hour stand alone modular course, for its employees . Late 2000s With the success of Saba since early 2000s, the system had undergone multiple upgrades and customization.
By 2009, the Saba system provided online training to over 90,000 of its em-ployees. There was an average of 16,000 individuals among P&G’s employees that made used of its online training each month. Such success leads P&G to expect an online training growth in the near future. To support such anticipation, P&G planned to improve its learning management system in terms of its availabili-ty, tracking, learning process governance and application support . As a result, P&G decided to assign Accenture in developing its learning management system for 6 years.
Prior to the transformation, P&G had over 200 training administrators that provided decentra-lized Tier 1 support, with multiple vendors providing support on more serious application issues on Tier 2 and Tier 3 . Over a period of 3 months, all support services from Tier 1 to Tier 3 had been successfully migrated to Accenture to meet several objectives such as creating a consis-tent development on its application system, having a reliable learning system with high availa-bility, as well as improving the control of its learning process .
To meet the increasing demand that P&G was expecting, it moved its Saba-based RapidLEARN to a clustered environment. Today, P&G had a reliable LMS which was scalable to meet the increasing need of web-based training across the globe. More than 90,000 of P&G’s employees now have access to the system. Today •Online system To enable all its employees be updated with the most up-to-date trainings, all of P&G’s em-ployees have access to a website (P&G’s online system) listing all the available courses, with details such as timing, course descriptions, and illegibility.
P&G’s employees are to sign up for all the trainings online through a common online system. With online registration, em-ployees are able to understand the details of the course as well as select the suitable sche-dule for the courses quickly through a simple click. New courses can be search and signed-up courses can be dropped through the same online system. Aside from the course listings, the webpage also has other information (guidelines) that guides its employees through their own learning path.
The system contains detailed infor-mation on the career stage at which certain trainings should be taken. Trainings are categorized into “General Trainings” which covers soft skills such as leadership and business communications and “Functional Trainings” which covers expertise knowledge such as finance and marketing. All these trainings are also categorized according to different career stage. As a result, the availability of the guidelines aims to help its employees sign up for the suitable courses during different career stage. E-learning For online trainings or the so-called “e-learning courses”, employees are able to complete the course at the leisure of their own pace. The system will track the attendance and progress of each employee in the trainings. In fact, employee’s attendance record for all courses attended is readily available online. Some of the common e-learning courses include training on procedures, standard business models, and business ethics. Upon completion of such courses, there will be compulsory tests which the employees have to pass.
According to one of the employee’s experience, while such e-learning courses provide them with the necessary information, the knowledge absorbed is very much short-term. Some-times, employees will end up skip the on-line courses and move on directly to the tests by guessing the correct answers so as to pass the tests. Such ‘short-cut’ approach defeats the company’s purpose of having online trainings and wastes the resources of the company. •Trainings across the globe Being a global company, the company carries out its e-learning globally.
The same trainings are made available to all of its employees at different countries. For other trainings that are not carried out online, the company provides the same content to be used globally. The ac-tual trainings will, however, be carried out by P&G at different regions and offices separate-ly. The trainers for such courses often come from P&G’s employees. These are keen employees who sent to external trainers to receive trainings. As a result of that, the training content of non-online trainings (despite having the same content across the globe) may vary slightly depending on the trainers’ style and expertise.
In any case, not all trainings can be attended by all employees. Some training has specific requirements of having to meet certain career stage. Hence an approval status is needed before the employee can attend it. There are also certain trainings which can only be at-tended by certain employees upon recommendation from the managers. Therefore, em-ployees have to take note of such details as well as the location of trainings as an employee in Singapore could not simply attend trainings that are held in United States.
The overall benefit of having such a complete online system in its training system is to allow P&G’s employees to realize their own learning progress and to direct them into knowing what kind of skills they need to develop further in the future. It also serves to save employees time by providing the employees the flexibility of completing the trainings at the own time. E-Recruiting With nearly 300 brands worldwide, P&G places high importance in the people and values the talent of every individual.
The company spare no effort in attracting suitable talents into its company and promises to offer exciting new challenges, tremendous growth and support, and a chance to touch and improve lives daily for every of its staff. In the modern era, there have been an increasing number of people who are dependent on technology and the internet. In the past, people used to flip through job ads in newspapers. However in this age of internet technology, more people are increasingly turning to online job portals such as monster. com, recruit. et and efinancialcareers. com. USA Today reports that 95% of the college graduation class of 1997 used the Internet as the medium of choice for their job searches while a recent study by JWT Specialized Communications found that 70% of active job seekers are more likely to use the Web than traditional job hunting methods . The increasing popularity of these new and rising recruitment channels provide fresh and innovative ways that P&G can tap onto for their recruitment efforts, instead of relying only on personal network or head hunters.
One example of such a channel is the increasingly popular use of online job por-tals (e-recruiting) in a candidate’s job search. P&G’s human resource team was able to identify the fast and moving trends of technology and in turn capitalize on the accessibility and availability of the internet to incorporate into its hiring process, making e-recruiting a part of their overall recruiting strategy. The key to successful e-recruiting is by providing a good job site which would make it easy for candidates to understand and apply and for the company to accomplish its goals of attracting the right talent.
McKinsey & Company, the global consulting firm, identified recruiting as a critical issue in its 1998 report, The War for Talent, where McKinsey points to various demographic and industrial changes that are making it harder to recruit and retain good employees . A Fast Company article on the report also reiterated the importance of talent, stating that “The most important corporate resource over the next 20 years will be talent: smart, sophisticated businesspeople who are technologically literate, globally astute, and operationally agile. And even as the demand for talent goes up, the supply of it will be going down. By providing a good e-recruiting website, P&G is able to benefit as the website has acted as an effective filter, making it easy for the correct candidate to apply and deter the wrong applicants from applying. Other benefits of e-recruiting include huge cost savings. Research has shown that e-recruiting is not only faster than traditional channels but the efficiencies of e-recruiting can also cut the amount of time needed to identify, interview and hire for a vacant position, in turn helping a company to save as much as $8,000 per hire over traditional hiring channels .
Considering the scale of P&G with more than 129,000 employees worldwide, the amount of cost savings is substantial by just making 10% of it hires through e-recruiting. A unique website domain was devoted to P&G’s career centre: http://jobs-pg. com/, with a link to a similar interface easily accessible, appearing on the home page just beside the “Investor Relations” tab, signifying that P&G values e-recruiting as much as it cares about its investors.
This career website has been designed in a very user friendly manner, where one is able to search jobs by category, location or groups, enabling candidates to be able to identify the area of interest or job they would like to apply quickly. P&G’s hiring process is then spilt into 5 gen-eral stages, namely application, assessment, initial interview, final interview and the offer, with specific instructions on what is required for every individual step. •Application
This simple application process instituted a “paperless” online application system allowing electronic applications to be submitted 24 hours a day and helping the company to find ap-plicants in a timely manner. The information required in the application stage includes con-tact information, education, resume, questionnaire, confirmation and a summary. Appli-cants are also able to save the application as a draft first before completing it at a later time, allowing greater flexibility. •Assessments P&G uses online assessments to measure skills and accomplishments that generally do not emerge from interviews.
These assessments are beneficial and well received by the appli-cants as it not only allow the company to assess the abilities of the applicant, but also help determine if it is equally beneficial for the applicant to continue through the hiring process, in turn acting as a screening stage for both parties. Examples of the online assessments are: oSuccess Drivers Assessment: “Assess your background, experiences, interests and work related attitudes and measures your compatibility against P&G compe-tencies for defining successful job performance” oReasoning Screen: “Measures your cognitive ability.
This is important because the nature of our work is complex and continually changing” •Initial Interview Behavioural based interviews used to know more about the applicant’s previous accoplish-ment and the applicant relate to, compare with and connect with the company’s Success Drivers. •Final Interview One-to-one or panel interviews to find out in greater detail about the applicant’s skills and capabilities. This is also an opportunity for the applicant to get a more in depth understand-ing of P&G’s unique culture, values and endless opportunities. •Offer
An offer of employment will be first notified through a phone call before a confirmation with details is given through the electronic mail. The comprehensive and descriptive steps of e-recruiting has allowed P&G to achieve a competi-tive advantage in attracting global talents to its company by making job postings available and conducting a firsthand filter of the job applicants through the several stages of recruitment in place. The advantages of e-recruiting for P&G include the ability to reach a wider range of audience, being cost effective and achieving a faster recruitment cycle.
With cost effectiveness and a faster recruitment cycle being discussed previously, the ability to reach a wider range of audience is especially important for a global company with job openings suitable for people from all over the world. Opportunities/ Recommendations P&G faces many opportunities that it can tap onto for growth. With the constant increase in the use of internet revolutionizing the way people communicate and interact, majority of the companies today have incorporated e-recruiting into their recruitment strategy.
Therefore there is a need for P&G to tap into new opportunities to further enhance and improve its current e-recruiting strategy. In conducting the field research of e-recruitment in P&G, it could be seen that technology was greatly used in the application, assessment and offer process, but not applied in the initial and final interview process. Hence P&G could actively test alternative methods of recruitment such as using audio and video conferencing or a real-time virtual Business Game Challenge in the interview stages to continue develop its recruitment strategy.
For training wise, our group believes that P&G could have regular pop-up quizzes which test its employees on the general contents of the past trainings that the employees have attended. This serve to add on the recall on the employees and reminding them about knowledge taught such that it will prevent the employees from forgetting the training content after attending them. This is to ensure that all the resources that P&G develop are put into good use.
Such pop-up quizzes, though simple, could serve as a constant reminder about the need of being aware of such knowledge even though they may not use them directly on a day-to-day basis. Conclusion Based on the above discussion, we see that talent is the key resource that drives P&G forward and helps the company to remain on top in today’s competitive market. Realizing this, P&G never let loose its effort in finding the right talent and providing them with proper trainin. The company want to ensure that all of its employees share the same values and are equipped with the most up-to-date product knowledge in a consistent manner.
In order to do this efficiently, the use of technology in its e-HR system has proven to be an ef-fective and efficient method that keeps the company ahead globally. With change being the only constant in today’s world, the continuous upgrades in its HR system as well as review on recruitment process are some of the key efforts which require great efforts and are of high importance to the success of the company. Considering the size and global positioning that P&G has, keeping its e-HR competent is therefore the key to success. ? References
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