Attracting, developing, and retaining a highly talented and diverse workforce is one of our three strategic business priorities. To achieve this, we have committed to creating an inclusive culture: one that welcomes, values, and celebrates a workforce comprising different ages, ethnicities, races, cultures, genders, and sexual orientations.
Having a diverse workforce and an inclusive culture allows us to recruit from a broad pool of talent, foster new ways of thinking, and respond effectively in a marketplace where demographics are changing fast. We place significant importance on creating working environments where employees can develop professionally, and where their well-being and talents are nurtured, and teamwork toward better business performance is encouraged.
We are working to build a diverse and inclusive culture by putting in place business structures that encourage diversity to flourish, recruiting and retaining employees from all walks of life, and ensuring that our workforce reflects the communities in which we operate.
Our Workforce
We employ 72,000 people in production, sales/distribution, combination sales/production facilities, and offices across our business. Of those, almost 61,000 are employed in North America, with the remaining 11,000 working in our European operations. Full-time permanent employees represent almost 95 percent of our workforce.
Due to the nature of our business, our workforce numbers and composition are constantly changing. In 2008, we continued our change-management initiative throughout our business to improve efficiency and effectiveness. We have managed this process through dedicated business transformation teams in North America and Europe to ensure that we treat employees fairly and communicate candidly. Where possible, we give affected employees alternative assignments; however, when this is not possible, we offer job retraining, placement services, and severance pay in line with years of service or as negotiated in collective bargaining agreements. We adhere to bargaining obligations with local unions on issues affecting represented employees, and in Europe, we fulfill our information and consultation obligations.
Building the Foundation
Our immediate priorities are to build foundations and structures that allow for a diverse workforce throughout our business, to engage employees in our efforts, and to develop ways to build accountability and measure progress. As we work to integrate diversity and inclusiveness into our day-to-day business, we have learned that these concepts have different meanings in different cultural contexts. We try to be sensitive to this, balancing global commitments with locally-appropriate programs. Additionally, we have implemented policies promoting equal opportunity and prohibiting bullying and retaliation.
Diversity Councils
We have Diversity Councils in North America and Europe that guide our business on diversity and inclusiveness. In 2008, we expanded upon that structure and established a Diversity Council in Canada. In the United States, we are piloting a Diversity Council at the business unit level, and we have plans to launch Diversity Councils in all business units and countries in 2009. These Councils will help to drive the local implementation of a common agenda, linked to the North American and European Diversity Councils’ strategic plans.
Diversity Networks
A series of employee-based business networks at our corporate office are also helping to create a more inclusive culture. During 2008, four such networks were officially sanctioned by our company: Enterprising Women; Gay, Lesbian, Bisexual, and Transgender (GLBT); Hispanic/Latino; and African-American.
These networks are sponsored by our Executive Leadership Team and are designed to benefit our employees, our business, and our local communities. They will help us recruit, retain, and mentor employees, while promoting greater awareness and understanding among our broader workforce. Network members will also help us engage with their broader communities, so that we will meet the needs of our increasingly diverse consumers and customers.
The activities of these networks are now gaining momentum. For example, our Enterprising Women network was officially sanctioned in February 2008, with an initial membership of 150 employees. In just a year’s time, this network has grown to nearly 400 employees.
We expect these networks to grow and an additional three interest groups to be sanctioned in 2009: Asian-American, Over 40s, and Working Parents. Additionally, we are researching ways to expand these networks into our business units and countries.
Tracking Our Progress
We continue to develop the ways in which we measure progress on diversity and build accountability for results. As a first step, diversity was included in the performance objectives of each member of our Executive Leadership Team. In Europe, we have instituted diversity and inclusion objectives for the top 50 leaders, which will be increased to 270 senior managers in 2009.
Talent management
We want to increase the representation of all minorities within our workforce and particularly at a managerial level. We are implementing new recruitment and interviewing policies and new ways of reaching out to the communities in which we operate. We recognize that retaining the best talent requires much more. We aim to ensure that our employees receive good training, career development, and benefits beyond those required by law, and that our policies create a fair, healthy, and safe workplace that encourages good performance.
Recruitment
To attract a diverse range of prospective employees, we are recruiting through an ever-widening range of media and other channels. In 2009, we launched the University Talent Program, a formal recruitment and internship program at select higher education institutions. We will continue to work in partnership with organizations such as the National Society of Hispanic MBAs, the National Black MBA Association, and the National Association of Black Accountants.
In France, we are members of a program to recruit from underprivileged urban communities. These connections are also helping us to build partnerships and outreach, and ensuring that we maintain diversity throughout our recruitment process. Our diversity work in France has been applauded by President Nicolas Sarkozy.
Training and Development
Ensuring that we have a winning culture requires investment in our people so that they can grow and develop professionally within CCE. We provide a variety of training courses, either to give employees new business skills or to build awareness of CRS-related issues, such as diversity and inclusivity, and health and safety. In 2008, we logged 458,000 hours of training, which is an average of 6.5 hours of training per employee.
In 2009, we will drive training for diversity and inclusion by incorporating it into our standard training program. We will focus on making this an integral part of frontline leadership training, as these leaders manage almost half of our workforce. As we transform our business, we support employees as their roles change. We completed our Customer Excellence training initiative during 2008. This two-year North American program involved training 40,000 employees — from drivers to sales center managers — on the reasons for change, the impacts, and the results.
EMPLOYEE ENGAGEMENT
An engaged and motivated workforce is central to creating a winning and inclusive culture. In North America, our first employee engagement survey established an important baseline for our company. We have begun to address our results, focusing on leadership, development and training, and Corporate Responsibility and Sustainability. In Europe, we conducted our third employee engagement survey and, as a result, we are developing plans to improve gender diversity (see case study on page 38). In 2009, we will complete our first global employee engagement survey and will use the results to benchmark and measure our progress.
Performance Management
To help develop our employees to their full potential, we provide regular performance reviews as part of our Global Performance Management program. In 2008, all eligible employees received a performance appraisal. Employees covered by collective bargaining agreements do not receive performance appraisals unless specifically covered by the agreement. Approximately 33 percent of our employees are covered by collective bargaining agreements.
Raising Grievances and Concerns
We offer employees a range of channels to raise concerns or grievances. These channels are widely publicized throughout the company and through annual mailings to employees’ homes, and include the following:
- An open-door policy that encourages consultation with any level of management, including the CEO
- Grievance and arbitration processes
- Our 24-hour Ethics and Compliance Hotline run by an independent third party that allows anonymous reporting
In the United States, we also have an Ombuds Office and a Solutions dispute resolution program. These offer confidential advice, support, and a vehicle for conflict resolution through mediation and arbitration. In 2008, our Solutions program received 63 employee requests for assistance in resolving workplace conflicts. Of cases concluded, 82 percent were resolved to the employee’s satisfaction. Our Solutions program was recognized in 2008 by Harvard Law School.
Significant issues and their resolution must be reported to senior management and the Audit Board of Directors Committee. In 2008, no significant economic, environmental, or social issues were raised.
Retention
Our voluntary turnover continued to improve for the third year running. In 2008, this turnover stood at 15.7 percent, compared to 18 percent in 2007, due to improved orientation and training programs for employees and for the frontline leaders. Turnover among our employees is more related to job function than it is any indicator of diversity. Typical of our industry, we experience higher turnover among frontline sales than in other job positions. We have implemented a new employee orientation program and standard training programs for our frontline roles that are designed to facilitate a consistent initial experience.
Workplace Policies
We have implemented policies and systems that aim to meet and go beyond legislation to make CCE a rewarding, fair, and safe place to work for all our employees:
- Health and safety — Our health and safety policy is implemented throughout the business by local managers. We have formal safety committees in all production facilities and sales and distribution facilities. Our lost-time incident rate in 2008 was 3.1 claims per 100 full-time equivalent employees, compared to 3.4 claims in 2007. Our safety committees also provide information on safety tips as well as on healthy lifestyles, and provide programs to support weight loss, stress management, and smoking cessation. In the United States, we offer a company healthcare plan for employees and their dependents and an annual health assessment for all employees covered under this plan. In Canada and Europe, we offer a variety of healthcare options for our employees to supplement government provided healthcare.
- Financial benefits — In 2008, we paid US$4.8 billion in salaries and benefits to our employees. We aim to pay competitive salaries to which matters of gender, race, and other indicators of diversity are immaterial. Additional benefits include a share purchase program, tuition assistance for job-related courses, and a scholarship program for children of North American employees (see case study on page 41).
- Retirement plans — We offer defined benefit and contribution retirement plans to employees based on eligibility rules and geographic location. These are funded by our general assets, asset-holding trusts, and insurance contracts.
Reflecting Our Communities
It is fundamental that our workforce reflects that of the communities which we serve, so that we can better understand the needs and concerns of our employees and the demands of our marketplace.
Recognition for Our Work
Our work on building a diverse and inclusive culture is already being recognized by different groups within the broader community. Last year, we earned a score of 100 percent in the 2009 Corporate Equality Index, the leading benchmarking tool for gauging workplace equality for Gay, Lesbian, Bisexual, and Transgender (GLBT) employees in the United States. Conducted by the Human Rights Campaign Foundation, America’s largest civil rights organization working to achieve equality for GLBT people, the index assesses company policies, training, and benefits, as well as support to business networks and communities. The average rating across the entire index was 83 percent, with the average for food, beverage, and grocery companies at 74 percent.
Achieving this ranking marks a significant improvement when compared to our previous score, and resulted in being named among the “Best Places to Work for GLBT Equality.” In addition, Stonewall, the gay rights campaigning organization, ranked CCE in its list of top United Kingdom employers as a good place to work for GLBT employees.
Beyond Our Operations
Our commitment to diversity extends beyond our own operations; we believe we can use our influence positively to create equal opportunities for all in our broader marketplace. For example, we strongly support Minority- and Women-Owned Business Enterprises and spent US$217 million with first and second tier suppliers of this nature in 2008. This is 55 percent more than 2006, and our highest spend to date.
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