Business Description
PepsiCo is a world leader in convenient foods and beverages. PepsiCo Australia employs approximately 2,100 people in across The Smith’s Snackfood Company, Sakata, The Original Pretzel Company and PepsiCo Beverage brands.
Business Problem
In 2006 PepsiCo Australia was experiencing high employee turnover, making it difficult for the company to continue growing at its historically strong levels. Poor hiring practices were identified as being one of the key factors causing this high turnover.
Specifically, the lack of objective data on which to base hiring decisions resulted in an over-reliance on recruiting managers’ personal impressions about candidates, which did not result in the best people being hired.
Solution
PepsiCo Australia adopted Onetest to increase objectivity in recruitment decision making. This solution consisted of the following online employment assessments.
For positions attracting large numbers of applications, PepsiCo Australia assesses all applicants in order to objectively, cost effectively and efficiently reduce the size of the talent pool.
PepsiCo Australia understood that a well managed change management program was required to ensure a successful implementation. This meant conducting comprehensive training for the HR team on the best practice use of assessments and educating line managers on the purpose and benefits of this approach.
Importantly, testing was mandated as part of the recruitment process for all employees, without exception.
Results
Since implementing Onetest in 2007, PepsiCo Australia has delivered almost 20,000 assessments.
Onetest has delivered significant improvements to the PepsiCo Australia business, including:
- Reducing staff turnover to below 10%, which is better than the industry average
- Delivering a more efficient selection process
- Improving 'fit' of candidates with the organisation’s values
- Reducing voluntary resignations within the first year.
Implementing Onetest has allowed PepsiCo Australia’s HR team to provide a significantly improved service to the business. Robust testing has helped HR to better support managers by providing a balanced view of the suitability of candidates and identifying those who have the greatest potential.
Testimonial
“Onetest provides a comprehensive suite of products and is very cost effective. The system is easy to use and provides a good experience for candidates as they receive immediate feedback on their performance. Onetest provides a high level of product support and is very responsive.
Importantly, testing clearly communicates to candidates what is important to us and what to expect when starting with the company. It also provides useful insights into candidates, which can be explored in interviews, and helps us understand how effectively they will perform in the role. This makes interviews much more effective and increases 'objectivity' in the selection process, which has reduced our staff turnover and improved our quality of hires.”
Steven Wilson
Organisation Capability Manager
PepsiCo Australia
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