Qualitative HR Metrics in PepsiCo: Impact on Strategy & Growth

This essay explores the significance of qualitative HR metrics, focusing on employee happiness and training efficiency within the context of PepsiCo. It discusses the rationale behind selecting these metrics, highlighting the link between employee satisfaction and productivity, as well as the importance of effective training programs. The essay also addresses the limitations and benefits of each metric, examining factors that contribute to employee satisfaction and the role of talent management. Furthermore, it analyzes how HR metrics influence an organization's credibility as a strategic partner, comparing qualitative and quantitative measures to emphasize the importance of both approaches in understanding organizational issues and evaluating performance. The paper concludes by underscoring the need for HR professionals to be competent in both qualitative and quantitative methods for comprehensive organizational assessment. Desklib offers a wealth of similar resources for students seeking to deepen their understanding of HR practices.

Running head: METRICS FOR HR PROFESSIONALS
Metrics for HR Professionals
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Table of Contents
Two Qualitative HR Metrics......................................................................................................2
Reason behind choosing these HR Metrics................................................................................2
Employee Happiness..............................................................................................................2
Training efficiency.................................................................................................................2
Limitation and Benefits of Each HR Metric..............................................................................3
Reason why People like to work................................................................................................3
Benefit Program.........................................................................................................................3
How HR Metrics Influences Credibility as Strategic Partner....................................................4
Comparison between Qualitative and Quantitative measure.....................................................4

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Two Qualitative HR Metrics
PepsiCo is a multinational snack, food and beverage corporation. They have lots of
interests in marketing, manufacturing and distribution of foods, snacks and other products.
Headquarter of PepsiCo is situated in New York. It was founded in 1965 (Dutta, Dutta &
Sengupta, 2016). Consistent and significant business growth has been delivered over the past
few years. It is believed that iconic brands of PepsiCo are available in nearly 200 countries
(Dutta, Dutta & Sengupta, 2016). Sales are generated at the retail level of more than $98
billion. Training efficiency and employee happiness might be used as qualitative HR metrics.
Reason behind choosing these HR Metrics
Employee Happiness: First HR Metric
Employee happiness or employee satisfaction is a valuable HR metric. Satisfied
employees are always productive in nature. They perform for the organization with
dedication. They also love to work overtime for the prosperity of the organization (Oswald,
Porto & Sgroi, 2015). The happiness of employee is related to commitment to the
organization, as well as a commitment to the job. Conflict or work stress can be happened
due to the less satisfaction in any part of the PepsiCo. Sales of PepsiCo had crossed $30.42
billion and Pepsi had become the third largest employer in the world (Tanwar, 2013). These
are the reasons why employee happiness is taken as a HR metric.
Training efficiency : Second HR Metric
Training efficiency is a necessary HR metric. The effectiveness of training should be
measured. It will help to make the more profit for PepsiCo. Efficiency of training is defined
as the ratio of training expenses per employee and training effectiveness. Obviously, proper
training helps people to become a better employee. It is to be noted that training is used to

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connect employee with PepsiCo. People will learn quickly when they enjoy their work.
PepsiCo provides training for 4 to six weeks. This is helpful to prepare employee for new
role. These training programmes based on industry are very competitive (Langer et al., 2013).
Hence, training effectiveness is required. Therefore, training efficiency should be taken as a
HR metric.
Limitation and Benefits of Each HR Metric
Work satisfaction is necessary to expand the business of the organization. Happy
employees are always committed to the organization. Sometimes, it becomes difficult to
measure the happiness of the workers. Worker satisfaction cannot be measured properly
through a survey. Bias may arise in the survey (Sengani, 2015). Hence, it is a limitation of
this HR metric. Efficient training is needed to work properly in an organization. This helps
the worker to work in the organization precisely. Hence, there is an advantage to take training
efficiency as a HR metric. Sometimes, the expert trainer is not found to train the workers
efficiently. Thus, it may be noted as a limitation of the HR metric.
Reason why People like to work
Of late, More than 185,000 employees are working for the organization all over the
world. The career growth model motivates employees to work sincerely. Talent management
model, a major development framework is used at PepsiCo. A wide range of opportunities is
offered to anyone (Sengani, 2015). PepsiCo has a vibrant and diverse workforce. The
atmosphere of the work place also motivates the employees. These are the major reasons why
people like to work here.
Benefit Program
They would face a shortage of midlevel directorial talent because their business
expanded and some midlevel managers reached retirement eligibility. The new employee is

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not being recruited in a huge number. Thus, the existing employees have to maintain the
work pressure as the business is expanding. Some managers will retire soon. Hence, it will
take some times to make a good relationship between new midlevel managers and employees.
It is to be noted that Operational cost-benefit analyses discuss on the topic how to improve
activities (Muzumdar, 2014). The organization will investigate ways to lower recruiting-
related expenses. The advantages of outsourcing the benefits function against keeping it in-
house; etc is compared by costing such activities. Strategic cost-benefit analyses are derived
from the strategy of the firm and operational goals.
How HR Metrics Influences Credibility as Strategic Partner
Employee satisfaction will help to achieve growth through mergers and acquisitions.
Employee satisfaction helps to expand the business. On the other hand, Unsatisfied workers
have a bad impact on the business. They focus on forming strategic alliances in the global
scale. Unscheduled absence rate is a HR metrics. It helps to track the percentage of absent
workers in a given period. An over time is also provided. Absence levels can differ from
time to time. It is expected that absence rate will be relatively low and stable. The business
will grow rapidly if the absence rate is less. The high absence rate will affect the business
badly. They will focus on emerging markets and organizational culture (Cascio & Boudreau,
2014). They have been tried to increase the level of association of individual brands with
PepsiCo company values. They also try to promote the idea of One PepsiCo. They also focus
on building new capabilities, commercial agenda, increasing costs and fostering a culture of
collaboration.
Effectiveness of the Use of Qualitative and Quantitative Methods as HR Metrics in
Organizations

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There are so many quantitative HR metrics such as cost per hire, engagement of
employee and productivity of the workforce. Certainly, the quantitative HR metrics is more
valuable. Often it is not enough to know the total turnover of the organization. Risk factors
should be kept in mind while HR metrics are used in an organization (Beyene, Nigusie &
Tariku, 2014). The metric measures deficiencies of the organization. It also helps to create
discoverable information. It may create misleading or inaccurate information depending on
the data interpretation. Some metrics may de-motivate retention. Employee surveys can be
used to measure metrics. There are so many qualitative metrics like employee happiness,
training efficiency etc. Qualitative HR metrics will help the organization to develop the
understanding of the organizational issues in an effective way. Performance metric helps the
organization to evaluate the performance of workers and the organization in the business
market (Olund, 2017). Understanding the potential of an employee can also be developed
using this type of HR metric (Owen, 2014). The company uses skill metric to measure the
knowledge of employee related to the work. Hence, it can be concluded that it is more
important for HR professionals to be competent in qualitative methods as well as quantitative
methods.

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