Procter & Gamble (P&G) Corporation and L’Oreal Company are among the top companies in the world and many other corporations idolize them. The attempt is therefore made to contrast the approaches of both companies to employee reward, development and performance management, as well as HR resourcing strategies.P&G Corporation values its employees and the Human resource department here is tasked with the work of ensuring that employees remain satisfied. First and foremost, the company offers a market-competitive salary that is benchmarked against top international companies. Employees are also allowed to climb the ladder of success through a series of promotions depending on their contribution and impact on the business success. On top of a good financial package, amenities such as tax advantageous share purchase plans, interest free loans, contributory pension plans and financial education are availed to the human work force.
L’Oreal is all rounded when it comes to employee rewards and development. While rewards vary from one region to another, the organization capitalizes much on harnessing the quality of social life on the part of its employees. The Human resource management here ensures that parents are rewarded with enough time off so that they can spend time with their family, and family men enjoy paternity leaves so as to spend time with their newborn babies for a whooping ten days.
Employees make the better part of the driving force for any company. Therefore, there is need for boosting employees’ morale. Karami, et. al (2013, p.9) showed that a good reward system yields a crucial and positive effect on the enthusiasm of employees. In fact, the system also affects the employees’ performance since motivation is the mediator.Although both companies have good reward systems, they differ in their individual reward packages. P&G focuses much on awarding material rewards in terms of finances, whereas L’Oreal makes a point of being all rounded when it comes to harnessing its reward systems. Terera and Ngirande, (2014, n.p) showed that any reward system can ensure employee retention but it may fail to result in job satisfaction. Therefore, it is possible to find that the employees in both companies exhibit different levels of job satisfaction depending on the nature of the reward systems of the company.
The P&G community is made up of 138,000 employees from about a hundred countries. The major role of the human resource managers at P&G is to maximize organizational excellence, human capabilities, talent supply management as well as external relation development. The company prefers the hiring of employees through internship programs, andrecruitment is based on the outcome of screening tests, CV assessment, written test and comprehensive interviews. L’Oreal does much less the same thing as P&G but unlike the American company, the French company tends to shop for talent at the social media platforms. Balasubramanian, et. al (2016, p.109) showed that the social media can be used as an effective employee recruitment tool. Social networking sites provide avenues for the recruiting team to build good communication, while engaging the job candidates. The fact that the method also lowers the costs for the corporations also makes the use of social media platforms attractive to recruiters. Therefore, the fact that L’Oreal goes to fish talent on social media platforms does not imply that they are less official. For a certainty, the using social media as a tool for recruitment may facilitate success and improvement in the business.
Balasubramanian, D., Vishnu, P. and Sidharth, S. (2016). Social Media as a Recruitment Tool. Bonfring International Journal of Industrial Engineering and Management Science, 6(3), pp.108-110.
Karami, A., Dolatabadi, H. and Rajaeepour, D. (2013). Analyzing the Effectiveness of Reward Management System on Employee Performance through the Mediating Role of Employee Motivation Case Study: Isfahan Regional Electric Company. International Journal of Academic Research in Business and Social Sciences, 3(9).
Terera, S. and Ngirande, H. (2014). The Impact of Rewards on Job Satisfaction and Employee Retention. Mediterranean Journal of Social Sciences.