Working Paper
Using Human Capital Measurement to Drive Productivity
In 2005 Frito-Lay's senior executive team faced a challenge with their Route Sales Representatives (RSRs). The company was achieving sales and profitability targets. But high turnover and low productivity among the RSRs had made the task of meeting those targets progressively harder over time. Tired of having to resort to "cheerleading" to meet each quarter's numbers, line managers and human resource professionals came together in an effort to see if they could identify solutions that could provide bottom-line results that were both cost effective and sustainable. However, they immediately ran into a brick wall: What was the cause of the low productivity and morale issues?
To find the answers, members of Frito-Lay's HR team, in partnership with researchers at the Center for Effective Organizations, launched a study of the drivers of attraction, retention, motivation and productivity for the RSRs. The analysis produced actionable results that Frito-Lay used to improve job performance and business results.
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