Case Study – HRM Exam

Retaining Key Talents at Cra0Co

Laura is at her desk analyzing the results from the engagement survey she has
implemented at Cra8Co. In a month from today, results will be presented to the Cra8Co’s Talent
Management Team. She recalls the conversaCon with Fabio, Cra8Co’s HR Vice President for
LaCn America, who was concerned with the possibility of losing Cra8Co’s Key Talents. He said:

“Laura, we cannot lose our key talents, especially a3er the strategic plan defined for 2023-
2028. They will be crucial to its success. We need them more than ever. If we lose them, it
may cause us a setback in terms of results. And we cannot return to the results we had in
2019. We are growing, but we need to grow even more”.

Laura, PhD and owner of her bouCque consultancy company, with more than 20 years of
experience working in Human Resources Strategy, was able to convince Fabio on the
importance of measuring engagement together with one-on-one interviews with each Key
Talent. The engagement survey would allow for a general diagnosCc, while the qualitaCve
analysis would bring a more granular approach to the idenCficaCon of most important
engagement factors for each Key Talent. A8er 6 months and 150 interviews, the project is now
over. Laura is looking at the data, wondering what to present as main conclusions and
recommendaCons.

Cra3Co

Cra8Co is one of the leading companies in the Fast-Moving Consumers Good, operaCng
in more than 200 countries around the world and generaCng more than $70 billion in revenue
(2022). Cra8Co's product por^olio includes a wide range of foods and beverages, including
many iconic brands. Some of the top compeCtors include Coca-Cola, PepsiCo, Kra8 Foods, and
Kellog’s. The sector, to which innovaCon is key, is highly compeCCve.

Cra3Co in LaIn America

Over the course of more than 50 years, Cra8Co’s LaCn America business has grown to
become one of the strongest food and beverage player in the region. Markets include
Colombia, Peru, Brazil, Mexico, ArgenCna and Chile. Mexico is the largest market followed by
Brazil. In both countries, operaCons include manufacturing. Colombia, Peru, ArgenCna, and
Chile are smaller markets, dedicated to MarkeCng & Sales. All of them, regardless of their size,
work with a dual report: employees report both to their local leader and to the headquarters’
leader, intensifying complexity in managing different stakeholders and different Cme zones.

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Headquarters are located in Mexico and most decisions regarding HR are defined there. Global
Shared Services are responsible for common services provided to all locaCons. Research &
Development defines R&D policies for LaCn America and help in the management of projects
conducted locally.
In 2019, several people were dismissed following negaCve results. In 2020, Cra8Co lost
10 -15 Key Talents mainly for other sectors and start-ups in LaCn America.

Project Scope and Results

Currently, the labor market is highly compeCCve in LaCn America due to e-commerce
growth, remote work, and skills shortage. Cra8Co’s has defined its strategic plan for 2023-2028.
Key Talents play a determinant role in pursuing these strategic decisions. Cra8Co aims to ensure
that its talent remains highly engaged. Research shows that engaged employees have a higher
performance and are more likely to stay.

Two main methodologies were used in the project: a quesConnaire to assess the overall
percepCon regarding engagement factors, and one-to-one online interviews with each Key
Talent, allowing for a more tailored approach. The survey is based on several years of research
and contains 30 quesCons. The interviews lasted around 60 minutes on average and were able
to idenCfy top 3 engagement factors per Key Talent, together with their career plans. Results
were integrated in each employee’s individual development plan.

QuanItaIve Results

From the 180 parCcipants invited to parCcipate in the project, 126 answered the survey
and 150 were interviewed.

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Figure 1: Main indicators (%):

Engagement Level

1% 4% 14% 36% 45%

Highly
Disengaged Less engaged Neutral Engaged
engaged

Recommend as a good place to work

0% 1% 5% 37% 57%
Strongly Strongly
Disagree Neutral Agree
disagree agree

Global Satisfaction

0% 1% 5% 20% 48% 26%

Extremely Very Somewhat Somewhat Very Extremely

dissatisfied dissatisfied dissatisfied satisfied satisfied satisfied

Figure 2: Top Ranked Engagement Factors (%):

I feel proud of the

work that I do.

I know how my work

impacts the
company's
performance.

I have challenging
tasks.

I enjoy the work that I

do.

I see my values
reflected on the
company social and
sustainable practices.

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Figure 3: Lowest Ranked Engagement Factors (%):

I have time to recover

from work.

My compensation is
fair when compared
with similar
organizations and
positions.

I have time for my

personal life.

I am recognized for
the work that I do.

I receive frequent
feedback about my
performance.

Figure 4: Indicators per Business Unity (average level in a scale from 1 to 5, being 5 the most
posiIve):

My compensation is
Promotions are fair when compared
I am recognized I receive frequent
based on with similar
for the work that feedback about
performance and organizations and
I do my performance
merit positions

COLOMBIA 4 4 4 4,1

PERU 4 3,6 4,2 3,6

GLOBAL SHARED
SERVICES
3,75 3,2 3,3 3,8

RESEARCH AND
4,1 4,0 3,82 4,3
DEVELOPMENT
LATAM HEADQUARTERS
(MEXICO)
3,53 3,66 3,63 3,5

BRASIL 3,73 3,55 3,82 3,6

MEXICO
MANUFACTERING
3,84 3,61 3,84 3,2

SOUTH (ARGENTINA
2,7 2,5 4,0 3,0
& CHILE)

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 I have the
flexibility to work
from where I
I have time to The atmosphere It is ok to
I I have time for want and to
recover from at work is challenge the
my personal life decide on my
work positive status quo
schedule

COLOMBIA 4,1 4,3 4,7 5 4,8

PERU 3,4 3,6 3,6 4,4 4,2

GLOBAL SHARED
SERVICES
3,4 3,7 4,5 3,7 4,5

RESEARCH AND
DEVELOPMENT
4,1 4,2 4,5 4,3 3,9

LATAM HEADQUARTERS
(MEXICO)
3,7 3,8 4,5 4 3,9

BRASIL 3,1 3,1 4,5 4,1 3,6

MEXICO
MANUFACTERING
3,5 3,6 2,9 4,1 3,9

SOUTH (ARGENTINA
2,5 2,5 3,8 3,6 2,8
& CHILE)

I have the
I feel my job supports training and the
me to fulfill my development
personal and My goals at work opportunities to
professional goals are clear perform my work
well
COLOMBIA 4,7 4,9 4,4

PERU 4 4,8 4,2

GLOBAL SHARED
SERVICES 3,6 4,3 3,9

RESEARCH AND
DEVELOPMENT 4,3 4,2 4,2

LATAM HEADQUARTERS
(MEXICO) 3,9 4,3 4

BRASIL 3,7 4 3,5

MEXICO
3,8 4,3 3,9
MANUFACTERING
SOUTH (ARGENTINA
3,8 3,2 3,5
& CHILE)

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QualitaIve Results

From the facts discussed during interviews, it is possible to conclude that the flexibility
policy adopted by the company is its engagement factor #1. One Key Talent said:

“I will stay as long as I can work from where I want… I used to spend hours a day in
commuIng and now I have Ime to do other things that are relevant to me and that I will
not give up”.

Laura was happy to see that the flexibility policy adopted by Fabio and his team, which
allows full remote work for administraCve roles (all employees excluding the ones operaCng in
plants). With the end of the pandemic, while many compeCtors are asking employees to return
to the office, Cra8Co has decided to maintain its full flexibility policy. She recalls the
conversaCon with one Key Talent from Brazil:

“I don’t want to be apart from my kids and I don’t want to leave Brazil… Free locaIon
should be a soluIon…”

Remote work has allowed for more work life balance, but the workload is sCll heavy as
menConed by one Key Talent showing exhausCon:

“Cra3Co requires more work hours than normal. We always work more than 12h daily. I
love my job, but someImes it really affects life balance… I am Ired of so many Zoom
meeIngs… And, because of Ime zone differences, there are days when I’m having
meeIngs and lunch at the same Ime…”

When quesConed if this was a current or a cultural issue, she answered:

“Both. We are like ‘work hard, play hard’. In addiIon to that, we have a tradiIonal culture,
in which we must agree in everything and ask permission for every decision. And, at the
same Ime, we lack tools and systems… many things are done manually…”

Another relevant factor raised during interviews is compensaCon:

“CompensaIon is in line with the market average but… not with what we bring to the
company! And, I‘m being penalized with the high inflaIon… I think I’m receiving less than
I was two years ago…”

Benefits seem to lack standardizaCon:

“I’ve heard that in Peru they are offering an MBA and here… we don’t have that benefit.”

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Another posiCve aspect brought into the conversaCons was the pride for being part of a
company that respects its stakeholders. One parCcipant menConed:

“There is no way this company is behaving unethically. The respect for employees is great.
I’ve never seen a company like Cra3Co. During the pandemic, my mother got sick and I
received the best support from Cra3Co … I will never forget this.”

But one aspect -career opportuniCes - was object of dissenCng views, as presented in the
following quotes:

“I’ve been blessed. I’ve lived in Russia, Spain, New York, now I am back to Mexico… I’ve
had all the opportuniIes. But I don’t wait for it. I chase it furiously.”

“OpportuniIes are not for everyone. I don’t know where can I grow and so I feel stuck.
The lack of these career conversaIons and clarity regarding my future makes me feel I am
blocking my employees growth. They cannot grow because I don’t know where can I go…”

Comments on Psychological Safety

Comments made on psychological safety (i.e., a

shared belief held by members of a team that it’s
OK to take risks, to express their ideas and
26%
41%
POSITIVE concerns, to speak up with quesCons, and to
NEGATIVE
admit mistakes — all without fear of negaCve
NEUTRAL
33% consequences) were classified in posiCve,
negaCve or neutral. They reveal the lack of
consensus whether if there is or there is not
psychological safety at Cra8Co.

Mapping Key Talents Engagement Factors

Each Key Talent was informed about the objecCve of the interview and consented to
the sharing of informaCon with the Talent Management team. InformaCon was gathered in an
excel file with the following data: engagement factor #1, engagement factor #2, engagement
factor #3 and career planning. This informaCon was later added to the employee individual
plan. Below an example of the informaCon shared with Cra8Co:

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… Back to Laura

A8er analyzing the quanCtaCve and qualitaCve results, Laura started drawing her main
conclusions and recommendaCons. She is trying to understand what is going on since some
results may be sending conflicCng messages… For example, engagement factor number one is
flexibility. Yet, and even with the flexibility policy, the workload seems to be too intense…
Results, in general, are quite good but there are relevant differences per Business Unity /
Country…