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Case Study: Thirsty for Change (Coca-Cola)

Source: theHRDIRECTOR
Date: April 2006

Coca-Cola Enterprises Ltd (CCE), a subsidiary of CCE Inc, the world’s largest soft drinks bottler, is licensed to manufacture and distribute the brands owned by the Coca-Cola Company. It has around 4,800 employees based across 36 sites in the UK, covering manufacturing, distribution and sales and marketing. In CCE, there are 1,101 people – equivalent to 22% of the workforce – over the age of 45. Respecting and valuing the diversity of its people is a key value for the organisation. Consequently, CCE aims to promote inclusion and fair treatment of all staff and is committed to a working environment that is free from unfair and unlawful discrimination and harassment.

"(Coca-Cola) is not looking to promote positive discrimination in favour of older workers. Nor does it advocate employing older workers instead of younger workers"

As well as this, CCE clearly recognises the business benefits of a mixed-age workforce. For example, research shows that both staff turnover and absenteeism are reduced and that motivation and commitment are improved in organisations employing people of all ages. “From an employment perspective, the dramatic drop in numbers of young people coming into the labour market is beginning to have a huge impact on the pool from which business are able to recruit new employees,” says HR controller for planning, Catherine Webb. “Valuing people of all ages within the workforce is essential for the company’s future prosperity.”
Nonetheless, CCE is not looking to promote positive discrimination in favour of older workers. Nor does it advocate employing older workers instead of younger workers.

READY FOR ACTION

In 2004, Webb established the Age Project Team, made up of a variety of legal and HR people from across the company. Her initial task was to conduct focus groups with different age groups about what it was like to work for CCE. Webb also enlisted a number of volunteers to participate in a potential mentoring programme and held regular project meetings to update on progress. As a result, a number of significant changes have been and continue to be made within the organisation, while the company was recently awarded Age Positive Champion status by the DWP.

“recruits purely on merit”

For some time now, CCE has used competency based interview questions to assess potential candidates, rather than the typical CV interview approach. Further effort has been made to ensure that it recruits purely on merit and without any age bias, by extending this approach to application forms. Reference to age and date of birth has been removed and now appears on the equal opportunities questionnaire. The revised application form is based on three competency questions under the headings ‘Teamwork’, ‘Communication’ and ‘Drive for Achievement’. The CCE careers website and online recruitment tools are also being redeveloped.

Furthermore, CCE is updating its recruitment skills training course to ensure that managers are clear about the value of age diversity, and is launching an interactive ‘Age Awareness’ campaign which makes use of EFA materials.  These materials focus on many areas, including: the future demographics of the workforce and the implications they have for managers; the introduction of the legislation; and behaviours, harassment and discrimination.

“Procedures need to be transparent as well as fair, and our training for managers highlights this. There are a variety of exercises, such as looking at real adverts from the press and deciding whether they are prejudiced, through to brainstorming discriminatory interview questions and discussing case studies from Ireland,” says Webb.

FLEXIBILITY IN THE WORKPLACE

Beyond the recruitment stage, CCE has introduced employee benefits, working hours and other initiatives that demonstrate the flexibility required to cater for employees of every age group. Everyone within the organisation has the right to apply to work flexibly, while an extended leave policy means that employees can take time out of work for anything from four weeks to six months, as long as they fulfil set criteria. Home
working is available for a number of roles in the business, too. As part of its awareness campaign, CCE has highlighted the flexible working policy with respect to time leading up to retirement and the impact that it may have on pensions. While it is waiting for the age discrimination legislation to be finalised before it performs a comprehensive review of benefits, CCE nevertheless plans to remove such benefits as long service awards and holidays accrued for long service.

One way in which it is tackling the holiday challenge is to offer employees the opportunity to buy or sell holidays through its ‘Options Benefits’ programme. Employees are able to buy or sell a week (the ‘Working Time Directive’ doesn’t allow them to sell more) and, if they have bought the holiday, the charge is spread out over the year so that there is no big hit on their pay at any point. Or, of course, they get paid for the week if they have sold the holiday time. This scheme has been very well received. As far as the new age regulations for retirement are concerned, CCE has rewritten its policy and is proposing a procedure for those who wish to apply to work beyond 65. Once finalised, this will be communicated through CCE’s awareness campaign.

RAISING AWARENESS

CCE is preparing for the period of transition and culture change with an age awareness campaign. Webb says: “As an employer, CCE is responsible for the actions of its employees so it is imperative that we understand the implications from a behavioural perspective.”

CCE aims to do this in three ways. The first is by focusing on a number of key points, such as: the changing world of work; the value of being a diverse employer; and how the dynamics of the workforce and the teams in which employees will be working, are going to change from the perspective of demographic gender and ethnic mix. Secondly, CCE will explain the legislation and what it means to employees.

Finally, CCE is taking the opportunity of using the campaign to revisit its anti-bullying and harassment policy, to talk about all forms of discrimination and to challenge stereotypes and behaviours. From March onwards, messages about age awareness will appear on all payslips, using the EFA’s strap lines. For instance, in May the message will be “Ability Counts… Age shouldn’t”. In July, it will be “From hip hop to hip op… we’re building an age diverse organisation”. CCE will also use posters and flyers from the ‘Age Aware’ campaign and use the logo for ‘Age Positive Employer Champion’ status on its website and employment literature.

Published Thursday, 21 June 2007 by Editor



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