Recruitment practices and

compensation policies at
Nestlé

Submitted by: Group 1

Arpit, Amol, Aakrit, Amrit, Abhishek
 TABLE OF CONTENT

Page
S.NO Particulars
No.
1 Introduction and Background 2
THEORETICAL PERSPECTIVE / CONCEPTUAL
2 3
FRAMEWORK
3 PROFILE OF THE COMPANY 4
4 HR Processes and Practices in the company 5
5 Learnings and Conclusions 10
6 Bibliography and References 11

CHAPTER I
INTRODUCTION AND BACKGROUND

In this policy, we have discussed about the Employee compensation and recruitment policies
of Nestle. Human Resource is an asset in every organization and plays a crucial part in
achieving the organizational goal. Partnering with management to develop and implement
HR strategies and initiatives in line with organizational objectives contribute to the long-term
goals around business and people development. Coordinating and monitoring implementation
of recruitment policies, systems, processes, tools to build and maintain network of potential
candidates through pro-active market research and ongoing relationship management.
Employees prefer company which has a brand and as well as provide a fair treatment to them
in the organization. Further in the project we have discussed how NESTRE motivates their
employees to perform efficiently with the help of the Reward and Recognition Policy.
NESTLE tries to attract the employees and retain them in the long run.
 CHAPTER II
THEORETICAL PERSPECTIVE / CONCEPTUAL
FRAMEWORK
1. Recruitment

Recruitment refers to the overall process of shortlisting, attracting, selecting and appointing
suitable candidates for jobs within an organization.

Importance of recruitment are:

• Filling up the position with the right candidate

• Big names in the industry acquiring recruiting companies

• Employee referral as part of recruitment

• Selecting the best-suited candidates

• Meeting the present and future requirements

Some strategies of recruitment are:

• Work on employee marketing budget

•Use of proper marketing strategies

•Challenge traditional thinking

• Utilizing smart technologies

• Social media also helps

Recruitment practices at nestle:

Off-campus Portals

To hire off-campus Nestle posts their job vacancies on the ‘Career Section’, ‘Linkedin’, etc.

Application screening: Application are evaluated to see if profile fulfils the basic criteria.

Nestle analyse if applicant skills and experience is matching profile.

Assessment and Testing:

1) Psychometric Testing.

2) Case Studies.

Interview with Regional Manager Panel

2. Compensation policies

Compensation Policies are the collection of rules that govern the calculation of salary for
everyone employed by the Government of Newfoundland and Labrador.

Compensation policies holds a lot of weightage for a company.

• It tries to give proper refund to the employees for their contribution.

• It discovers a positive control on the efficiency of employees and motivates them to perform
better.

• It creates a base for happiness and satisfaction of the workforce that limits the labor
turnover and confers a stable organization.

•It helps in setting up more realistic and achievable standards.

Strategies of compensation plan:

• Budget Allocation

• Develop Salary Ranges

• Salary Audits

• Benefit Package

• Performance Management System

• Legal Compliance

• Structured Administration
COMPENSATION
The Company's Total Remuneration package is competitively aligned to the best in the
industry and is also is appropriately balanced between providing cash compensation and
benefits, including, medical and retirement benefits. An Employee Share Option Scheme
operated by the Employees Trust offers opportunity to the new working employees.

• high salaries

• car allowance

• holiday

• travel and tours

• pension and life insurance

CHAPTER III
PROFILE OF THE COMPANY: Nestlé

Overview:
Nestle India Ltd (NEST.NS) is a subsidiary of NESTLÉ S.A. of Switzerland. It is a food and
drink processing conglomerate corporation HQ in Vevey, Vaud. Since 2014, it is the largest
food company around the globe. Nestle India with eight factories and large number of co-
packers that provides consumers with products of global standards in India. It is
acknowledged amongst India’s “Top Wealth Creators of India” and “Most respected
Companies”.
Spirit of Nestlé
The Spirit of Nestle is ‘Good food, Good life’. Which show the company’s skill in meeting
and anticipating consumers’ changing needs. It is reflected consistently in all their behaviour.
The Spirit is deeply rooted in the unchanging essence of Nestle, but it also embraces what
they must aspire to be. It is the indivisible synthesis of the values. The Spirit is a beacon. It is
what gives them direction and a clear sense of purpose. It energizes Nestle to perform with
100% efficiency and is the touchstone for all that they do.

Nestlé Group of Companies: -

Purina Pet-Care Company: - Purina pet-care is an American subsidiary of
Nestle. It produces and markets pet food, treats and cat litter. Some of its pet food brands
include Purina Pro Plan, Purina dog chow, Friskies etc.

Häagen-Dazs: - Häagen-Dazs is an American ice cream brand, established by Reuben

and Rose Mattus in Brooklyn Heights, New work. Nestle is the product owner of Häagen-
Dazs.

Milestones on the path to Glory: -

 CHAPTER IV
HR PROCESSES AND PRACTICES IN THE
COMPANY

Aim: - The major aim of compensation and reward policies is to attract and retain the best
talent. Most companies want to hire loyal and productive employees and to keep them
productive and motivated companies provide a package that includes compensation,
incentives, and benefits such as paid vacation, health insurance.

Purpose: - The purpose of rewarding and compensating employees is to build up an

organizational culture where employees is valued, and their efforts are recognized.
Employees are the essential part of the company and to keep them motivated and productive
companies provide compensation and rewards.

Scope: - This policy is applicable to all the regular employees of the company.
Important component of a reward programme –
Basic wage, Dearness allowance, House rent allowance, other allowances, incentives and
fringe benefits. Employee compensation is one of the most strategic and important functions
of human resource management.

RECRUITMENT PRACTICES AT Nestlé

What is Recruitment?
Recruitment is the process of finding and hiring the best and most qualified candidate for a
job opening, in a timely and cost-effective manner. It can also be defined as the “process of
searching for prospective employees and stimulating and encouraging them to apply for jobs
in an organization”.

Types of recruitments at Nestlé?

1. Off-Campus Portals
2. On-campus Drive

What does Nestle look for in a Candidate?

Nestle’s work culture is built around values such as consistent quality, safety, and respect.
They want employees who will never compromise on these values under any situation.
 NESTLÉ RECRUITMENT PROCESS
Off-campus Portals
To hire off-campus Nestle posts their job vacancies on the ‘Career Section’, ‘Linkedin’ and
‘Iimjobs.com’. For their employees they also have an internal referral network.

Application screening: Application are evaluated to see if profile fulfils the basic
criteria. Recruiters analyse if applicant skills and experience is matching to the role profile.
Then applicant is contacted by nestle recruitment team.

Assessment and Testing:

1) Psychometric Testing: - The assessments Nestle use cover the following areas –
Verbal, Abstract and Numerical reasoning as well as personality and motivational
profiling.
2) Case Studies: - Applicants are given a scenario relevant to the job they applied for
and then asked to prepare a short presentation. A case study is an opportunity for
applicant to showcase their experience.

HR Interview (Telephonic): In the telephonic round the interviewer will try to get
to know the applicant more – his/her background, educational qualifications, and work
experience. Interviewer will also try to find out your expectorations – Geographical
limitations etc.

Interview with Regional Manager Panel: Once applicant successfully

complete the telephonic interview. He/she will be asked to come over their campus for the
first round of interview with both Reginal Manager and HR. Applicant can expect questions
from both RM and HR. Candidates may even have a written test.

Questions from Regional Manager: -

1. Tell me about yourself?

2. What challenges you faced?
3. How did you overcome them?
4. Sell me this product?
5. Why should we hire you?
6. Experience details?
7. Learnings and Outcomes?

Questions from Head HR: -

1. How do your friends describe you?

2. How do your team members describe you?
 3. Weakness and strengths?
4. What is your USP?
5. Work experience and internship details?
6. Compensation expectations?

Interview with Branch Manager/VP: - Second round of interview is

conducted by Senior-level managers i.e. Branch Manager or VP. Behavioural and situational
questions can be expected by applicant in this round.

Question from Branch Manager/VP: -

1. Why should we hire you?

2. What do you bring to the team?
3. Product knowledge?
4. Challenges faced and how overcome?
5. Why this company?

On-campus Drives
Nestle most likely hires candidates from prestigious institutions like IIMs, XLRI, MDI etc.
Recruitment process is simple. Stages includes:

1. CV or Application review
2. Aptitude test
3. Group discussion
4. Interview

In the interview, candidates critical thinking and problem-solving skills, self-motivation,

ability to work in a team, and discipline is evaluated.

Medical Assessment: -
Candidate must go through medical assessment pre-placement. The details of the assessment
are shared by the HR once candidate accepts the offer.

Reference / Background Checks: -

Nestle team conduct at least two reference check with the previous employers to make sure
that candidate is potential fit with nestle culture. Also nestle comes to know about candidate’s
management and leadership style. Nestle’s recruitment team also validates candidate’s
qualifications, candidates right to work in the country.

Job Offer: -
Once the candidate clears all the round and get selected, nestle send the offer letter within a
week or so. This goes for both Off-campus and On-campus.
Induction: -
Induction goes for 2 weeks where heads of various departments comes to tell the candidates
what each department does and how he/she will be working with them.

Branch training executives will then tech candidates about all the products, prices, margins,
processes, teams, how to work, how to manage, what to do, processes to follow, macro level
insights.

Then 5 day’s of on field induction where candidate work with the territory manager to see
what he/she does in real life and what candidate will be doing and learn from assisting him in
manager’s work. Then candidate is given its territory and sent to work.

COMPENSATION AND BENEFITS/PERFORMANCE

APPRAISALS
The compensation of nestle is aligned to the best in industry and it appropriately fair and
balanced between providing compensation and benefits which includes medical retirement
benefits. The annual salary rewards and benefits are linked to employee performance.

Highest salaries: - The packages that nestle offers to its employees the highest
remuneration package that is completely different from other industries the pay structure of
nestle is very different at the time of building a compensation plan they determine whether to
lead lag or meet the market in compensation. And that is one of the major parts of its
compensation philosophy to always keep employees above the markets profile value they
want to lead the market in compensation. So, if you are experienced or professional you will
get the highest salaries among that industry.

Gain sharing: - Nestle provide the highest salaries and benefits to its employees and
bonuses on their performance. The performance gauge of nestle is very different. They don’t
determine the employee’s performance on given targets they base it on certain percentage of
top performers. So, every quarter the top 50% performers qualify for bonuses.

Benefits: - At nestle they value quality human resource. The employees of nestle lend the
creativity and passion to meet business challenges with bold and new ideas. It offers benefits
ranging from medical to financial and recreational. They want to keep their most important
asset their people.

THE PACKAGE INCLUDES THE FOLLOWING ELEMENTS

Travelling and subsistence expenses: - All employees of nestle will be
reimbursed for any travel and expenses incurred in the course of their duties. As per the
policies of nestle they give 7.5/km for transport.
HOLIDAY: - Each employee is eligible for a basic 23 days holiday per year. However,
for some people this amount is too much or not enough depending upon the sector and
companies you are working in. For this reason, their employees have the option to trade their
leaves in terms of salary. Employees can choose between 15 days and 30 days holiday per
year, with maximum rising to 40 days per year after serving for two years.

Car allowance: - For some of the consulting positions a car allowance is included in
the package.

Pension and life insurance: - Nestle has its companies own group personal
pension scheme. After working for 3 months in nestle employee has the option to the
companies group personal pension scheme or take a cash alternative. All employees are
covered under life insurance from their first day with nestle. The company works on these
attractive compensation packages to ensure that these remain suitable and fair.

Permanent health insurance: - Nestle provides permanent health insurance to its

employees from their first day of joining.

The total compensation package consists of the following elements:

1. BASE SALARY
2. SHORT- TERM BONUS
3. LONG TERM INCENTIVES
4. OTHER BENEFITS
5. PENSION BENEFITS

Base salary: – The base salary is the fixed pay you get after deductions of taxes and
insurance. The compensation committee reviews the base salary annually and there are
certain criteria to it which is individual contribution and the level of competitiveness.

Short- term bonus: – The short-term bonus is rewarded for working for a certain
period. The short-term bonus is paid in cash or nestle S.A shares.

Long term incentives: – long terms incentives are intended to reward sustained
business success and overall shareholder value creation as well as to retain key senior
management members.

Other benefits: – The company limits other benefits to a minimum. Typical elements
are car allowance, a contribution towards health insurance premium as well as long – term
service awards related to 25 and 40 years of service to the company.
 CHAPTER V
CONCULATION
All businesses want to create the best possible products or services. Some, like Nestlé, also
want to create value — for shareholders, for all employees, and for the loyal customers they
serve. They know that the more closely they can connect employees to the value-add
activities of the business, the better the results and value for all.

Is a highly engaging.

Company which further live out its principles of creating shared value by connecting the
business with the local community in a meaningful and rewarding manner.

BIBLIOGRAPHY & REFERENCES

https://www.nestle.in/

https://ijbssnet.com/journals/Vol_6_No_4_1_April_2015/10.pdf