Case Study | FMCG | Code of Conduct | Indonesia
Our long term client, an FMCG manufacturer in Indonesia contacted us regarding requirement for standardizing their HR processes. As the company had grown a series of informal rules had evolved and it seemed to the Owners that they were spending a lot of time on HR policy issues. They asked Motivo to compile an HR Handbook of policies and procedures.
Our 1st task was to assess the existing policies and procedures both formal and informal. Our second task was to thoroughly research the existing labor legislation and prevailing law on employee relations in Indonesia. Our final task was determine the HR objectives of the company leadership and crucially the employees.
The leadership of the company was clear in its desire to have a highly motivated workforce with a clearly understood framework for compliance and high performance. Employees were equally clear about their desire to have a fair working system, equally applied to all employees.
Using our knowledge of human resources best practices and benchmarks we compiled a list of the legally required policies as well as procedures and initiatives to optimize the HR function. We sought to creatively craft each policy to fit the objectives of the leadership and staff and we succeeded in compiling the handbook within a quick timeframe.
Our final task was a change management program. We decided that understanding of the many policies and procedures amongst leadership and staff alike was critical to the success of the project. To roll out an entire handbook at the same time would result in confusion and organizational trauma. We instead introduced one policy per 2 weeks with a roadshow for each department. That way we could minimize the groupthink mentality and gain honest feedback from smaller groups. The roadshow would return to the group the following session to answer any more questions and to present the next policy.
The change management of the HR Handbook was a success. Introduced in 2013 the company now has an extremely low staff turnover, uncharacteristic of the sector. Employee engagement is high and the company has enjoyed a sustained period of growth in revenue and sales volume. Innovation is also high with many new products successfully introduced to market. The company has gone on to penetrate new international markets.