HR Corner Century-old ethos remains gold by YK Ma "Build from within" philosophy enhances bond of trust Businesses worldwide need to innovate to stay alive. However, one company finds success by sticking to practices adopted in the 19th century. Procter & Gamble (P&G), one of the world's largest consumer products companies, adopted the "Build from within" philosophy in recruitment since 1837, and it has become the cornerstone of its human resources management, according to Hide Aida, P&G Greater China's general manager for human resources. Founded in 1837, P&G is a market leader in the fast moving consumer goods (FMCG) industry, owning and marketing more than 300 branded products in more than 160 countries with annual sales of over US$70 billion and a worldwide headcount of 138,000. The company ranked number one in the people management category in the 2007 Fortune Magazine's Most Admired Companies Award. Humble beginning The "Build from within" philosophy means everybody is recruited at entry level and has to work their way up. For instance, university graduates are employed as managers and can rise up to become president of P&G Greater China. It takes an average of nine to 13 years for someone in band one to move to band four (associate director). That sounds like a long time but Mr Aida notes that perception is misleading. "I am band six myself as a general manager, in charge of 7,200 people, with responsibility equivalent to that of a vice president or even higher in a smaller company," he says. Certain former P&G employees who left to enjoy a more senior title in another company have realised they are effectively doing the same job, or given less responsibility in the new company. "We aim to foster an environment where people want to stay" Employees need a goal to work towards and deserve the chance to succeed. "If we recruit senior positions from outside, then current employees will question their career development with us. People need to have a sense of hope in order to succeed and we aim to foster an environment where people want to stay," Mr Aida stresses, noting that new recruits are given challenging tasks from their first days with P&G to complement comprehensive training and competitive remuneration. "This is what makes people stay," he says. The strong belief in training its own people also creates a more harmonious workplace. "We know each other, we trust each other and we believe in each other so there's an enormous bond of trust among the employees because we function together," he adds. People culture As P&G promotes from within the company, it also focuses on development and training. "This is arguably what P&G does best," Mr Aida observes. The company's annual employee survey in Greater China reveals that a work-life balance is most valued by the younger staff yet it is also an aspect which is most ignored in the labour market. As a result, P&G has a policy where employees can work from home one day per week, which is a breakthrough in China and Hong Kong markets. Mr Aida adds that the company also discourages work lunches or meetings after six o'clock in the evening. This policy may sound draconian, especially if matters are pressing, and actually requires a change of mindset for certain employees. However, the practice has been championed from the top down. P&G also offers six flexible work schedules where employees can choose to start work earlier or later depending on both business and personal needs. Other innovative policies include working shorter hours and taking paternity leave. The aim is to increase employee productivity and encourage long-term loyalty to P&G by allowing staff time to enjoy a better lifestyle. Mr Aida says, "We have a work-life balance programme where both the employer and employee have responsibilities." P&G's responsibility falls into three areas: flexibility (policies and arrangements), demand (culture, focus and work-simplification) and energy (fitness and wellness programmes). The programme just began this year and Mr Aida is aware that this alone is not enough to retain people. The market is fiercely competitive with companies fighting for the same pool of talent. However, he is optimistic that P&G will continue on its success path in the rapidly changing market. Salient points "Build from within" and "promotion from within" philosophies offer promising prospects Work-life balance policies allow employees to work from home one day a week Campus management recruitment provides fresh graduates career opportunities Taken from Career Times 16 November 2007, p. A20 Your comments are welcome at [email protected]