Introduction
The use of proper approaches to employee reward and recognition allows for encouraging their performance excellence and obtaining ultimate competitive advantage in the market. In the case of the Coca-Cola company, the methods of reward and recognition are based on performance outcomes and contribution-related results. According to the official statement in the annual report, the organization provides “base pay that is competitive and that aligns with employee positions, skill levels, experience, and geographic location. In addition to base pay, we seek to reward employees with annual incentive awards, recognition programs, and equity awards for employees at certain job grades” (“Form 10-K,” 2021, p. 12). With the rising competition in the market of non-alcoholic beverages and the shift toward remote and technologically-assisted business operations due to the post-COVID transformations in the HRM of the company, the reward and recognition system is jeopardized and might be ineffective in ensuring talent retainment. This brief is designed to identify how the approaches to regard and recognition of employee performance might be improved to yield a higher level of competitive advantage for the Coca-Cola company. The recommendations include customization of the rewards system toward the particularities of employees’ roles and contributions and diversification of recognition opportunities.
Methods of Reward and Recognition at Coca-Cola
Problem
The Coca-Cola company is a leading organization in the market of non-alcoholic beverages with a global presence. According to its official statements, it cherishes its employees and values the talent in its workforce (“Form 10-K,” 2021). However, the current system of rewards and recognition at the company is characterized by multiple workers’ dissatisfaction with the reward and recognition system, which yields limited loyalty to the company (Ramyasri & Aruna, 2019). Such a problem might jeopardize the competitive advantage of the company due to the potential risk of the dissatisfied talented workers shifting their employment preferences toward competitors for better reward opportunities. Therefore, it is essential to find practical and effective solutions to the identified problem due to the vital importance of balanced reward and recognition systems for the competitiveness of a firm.
Evidence
A proper reward system implies that monetary incentives motivate employees to invest their time, effort, talent, and creativity in the completion of organizational goals. According to Kothari (2022), “Coca-Cola’s compensation system is noteworthy since employees are awarded based on their performance” (para. 8). Indeed, the company recognizes the contribution of each employee within the context of their roles and responsibilities in their given positions to encourage creativity, loyalty, and effective leadership. Indeed, Coca-Cola’s “compensation programs are designed to reinforce our growth agenda and our talent strategy as well as to drive a strong connection between the contributions of our employees and their pay” (“Form 10-K,” 2021, p. 10). However, as evidenced by Ramyasri and Aruna (2019), 8% are not satisfied, and 27% are somewhat satisfied with the company’s motivation strategies. Moreover, Appendix 1 demonstrates the human resources metrics for the Coca-Cola company for the year 2021, which illustrate that the company performs well on the dominant number of key performance indicators. However, it requires improvement in the areas of grievance minimization, absence rates, employee engagement, and retention.
Predictions and Alternative Solutions
The lack of a proper solution to the problem is likely to limit the creativity of the workforce and its performance excellence across the company departments due to the high risks of turnover. One of the solutions is the implementation of a more diverse system of talent encouragement and contribution recognition that would be based on the precise KPI of each worker (Kothari, 2022). Such a measure might be costly and time-bound; however, its long-term benefits are likely to be reflected in the competitive advantage due to the development of talent within the company. Furthermore, another possible solution might entail the implementation of coaching and mentorship programs to enhance employee engagement (Ramyasri & Aruna, 2019). Through such an initiative, Coca-Cola will be able to retain talented employees and motivate them through promotional opportunities. Ultimately, the company might diversify and customize the policies of reward and recognition based on technologies.
Decision
Given the variety of possible solutions, the most appropriate one is the diversification and customization of reward options for employees. According to Kothari (2022), Coca-Cola is working on launching a technology-based system of employee-centered reward system with cloud-based processes. Such a solution choice is justified by its compliance with the company’s value creation based on its employees, as well as the organization’s individuality-driven human resource strategies (“Form 10-K,” 2021). Thus, this solution is likely to differentiate the employees at Coca-Cola from competitors and ensure its leading position in the market.
Implementation
The implementation of the identified solution should be based on the meticulous development of technological interventions. Moreover, the company should ensure a hierarchical overview and monitoring system for proper conducting of the reward and recognition policy (Kothari, 2022). It is important for Coca-Cola to address drawbacks in the policies and minimize difficulties to ensure employee satisfaction and their ultimate engagement in the business processes according to organizational goals.
Conclusion
In summation, the Coca-Cola company currently uses effective reward and recognition policies aimed at valuing each employee’s contribution. However, the level of employee satisfaction, the presence of grievances, and a relatively high turnover level suggest the need for improvement. Thus, it is recommended that the company update the reward and recognition system by implementing a technology-driven diversified, customized reward and recognition strategy to address individual employees’ performance.
References
Form 10-K: The Coca-Cola Company. (2021). Web.
Kothari, N. (2022). Reward analysis in Coca-Cola company. Web.
Ramyasri, C., & Aruna, G. (2019). A study on employee job satisfaction with reference to Coca-Cola. A Journal of Composition Theory, 12(9), 674-684.