Our Human Resources’ (HR) function is working across three strategic corridors to foster a future-ready, people-centric culture, with the agility and digital savvy to support an open business ecosystem:
Agile, collaborative, and high-performing, leveraging digital capabilities to support an open business ecosystem
Diverse, people-centric, and radically flexible, based on human dignity and connected to our purpose to fulfill and sustain our strategy
Enabled, empowered, digital, data-driven HR, leveraging a deep human connection, effective service, and management model to support the organization
To advance along these corridors, we have achieved a clearer picture of the strategic challenges that we face to accelerate the development of the capabilities our organization needs for long-term and day-to-day business success, coupled with much more assertive initiatives for our talent and digitalization roadmap.
Lead our company’s cultural transformation by accelerating the organizational capabilities needed to ensure the pursuit of our purpose and the consolidation of our strategy.
Purpose-Driven Organization
People-Centric Management
Agility & Digital Savviness
We aspire to transform HR into a flexible, agile, and efficient platform that ensures our contribution to business growth through the focus on people-centered management, the positive impact on the wellbeing and development of our employees, their families, and their environments, and the construction of safe and virtuous collaboration spaces that facilitate the unleashing of their talent potential.
Our company’s transformation journey, together with the complex outlook brought on by the COVID-19 pandemic, required the continuity of relevant cultural changes throughout the organization. HR became an active strategic business partner, efficiently facing the company’s business needs and adding value to the strategy.
In 2018, we launched KOF DNA to ensure that our customers and consumers are at the center of our activities. This year, we reinforced our DNA to support our business vision and transformation, achieving improvement in key behaviors such as people first, operational excellence, and agile decision-makers. To this end, we continued to create mechanisms and practices to live and refresh our DNA throughout our organization. For example, we continued to implement and improve our “Estrella KOF” peer recognition program, where our people nominate and recognize their colleagues for showing extraordinary commitment to the elements of our DNA.
We gained a better understanding of where we must build key organizational capabilities to advance our business strategy, focusing on accelerating our digital transformation while maintaining and growing our core business in a complex environment. For HR in particular, this means becoming a platform that will enable us to develop deeper “people-centric” connections through digitalization and quality data, which will allow us to offer individualized solutions.
We also improved our Employee Value Proposition (EVP). Aligned with our purpose, we developed a clear and comprehensive narrative, where we defined our total rewards strategy that focuses not only on our people’s compensation schemes, but also on their development and wellbeing. Benefits include flexible hours, home office for administrative positions and other roles where their function allows, lactation rooms to support breastfeeding at work, and parental leave in accordance with the specific country’s regulations.
Male Parental Leave varies in each country from 2 to 14 days.
We are interested in making our people feel motivated, committed, and successful. That is why we offer collaborative, innovative, and trusting environments, where they can take calculated risks and work productively with the flexibility that adjusts to their functions and life moments.
Our priority is for our employees to enjoy health across all of the dimensions of their lives. That is why we offer options for physical, emotional, and family wellbeing. We recognize their effort, commitment, and contribution to the generation of value for our business.
We are interested in what our employees believe and what moves them. That is why we offer them the opportunity to be the protagonist of our business’ transformation into a digital, agile, flexible, customer-focused, and collaborative ecosystem, placing sustainability at the center of our actions. This is how we make a difference in people’s lives, communities, and the planet.
We are interested in our employees becoming the best version of themselves, and we believe that our differences strengthen us. That is why we offer our employees a respectful, inclusive, and collaborative environment, where their voices will be heard.
We are interested in our people’s professional and personal aspirations. That is why we offer them options to develop and enhance their holistic growth, reaching their maximum potential.
This year marked “the moment of truth” in the definition of our new normal and hybrid working schemes. As a group, we formally announced that we are a hybrid company, where we empower our leaders to undertake assertive conversations with their teams and to establish the best model for each team. We are also analyzing our FlexKOF model to better align it with our improved EVP.
Exemplifying our new ways of working, our digital and analytics hub has implemented a co-creation process where we assemble agile cells—with different profiles, skills, functions, and areas—that ensure our business units’ participation in the delivery of valuable digital and analytical solutions across our operations while creating workspaces that empower collaboration and teamwork. We are also working through different communities in areas like our Supply Chain and HR functions to identify and share insights and best practices. Comprised of multinational teams, these communities are focused on defining and updating the organizational model, variable compensation schemes, and multi-category offerings, among other areas. This year, we further implemented a pilot for KOF Financial Services (KFS), with a complete remote working scheme, where we monitored the implementation and results to ensure success. →For more information see Digital & Analytics Hub.
We also designed our Lean-Agile Center of Excellence (LACE) Service Model to support the organization’s digital and agile transformation, and we deployed digital and agile training programs for more than 400 employees, which we will continue to implement throughout the rest of the organization in the coming year.
+400 employees trained through our digital and agile training programs
Aligned with our imperative to make a difference in ESG, we expanded our digital ESG training significantly this year. To facilitate our company’s transition into a worldwide sustainability leader, we not only offered training to top-level management on our renewed ESG strategy, but also developed more detailed training programs tailored to different functional areas. Additionally, we complemented the design and transformation of our ESG framework with employee training to enable the understanding of fundamental ESG concepts. →For more information see Future Ready Sustainability Strategy.
As part of our strategy to become a learning ecosystem, during the year, we delivered the training agenda, according to the level of knowledge required for each of our organization’s contribution levels. Aligned with learning tendency, we also delivered more accurate training, catering the content and duration of the program to ensure the best learning experience for our colleagues.
We implemented our biennial employee engagement survey throughout our operations during 2021. With 92% participation and 91% engagement levels, the survey results focused on four dimensions: intent to stay 84%, discretionary effort 91%, pride to belong 95%, and willingness to recommend the organization 94%. As a result, we significantly improved employees’ engagement and communication with their direct leaders through cultural and communication efforts such as KOFFEE Talks, which are spaces where our leaders enjoy the opportunity to interact with their people to discuss various topics of interest. During the year, we focused on analyzing the results by country and area to develop assertive action plans to mitigate identified gaps. Looking ahead, we will implement our biennial employee survey in the coming year—aiming to maintain high engagement scores while making progress on targeted gaps.
Consistent with our comprehensive approach to our people’s wellbeing, we further developed a conscious leadership program. The goal of this program is to migrate the concept of health from a purely medical to a more holistic approach to wellbeing, including physical health, emotional wellbeing, spiritual self-development, and conscious leadership. During the year, the program reached middle management across our Colombia, Guatemala, and Mexico operations, and is expected to reach our Argentina, Brazil, Costa Rica, Nicaragua, Panama, and Uruguay operations during the coming year.
This year, we continued with the utilization of our integral ethical system across our organization to create a safe environment for our people—where they can anonymously raise their voice if they should have any complaints concerning the company’s code of conduct. Overall, we received a total of 1,371 complaints this year through this system, some of which were related to work environment and leadership, operational, and financial topics. →For more information see Integral Ethical System.
We also continued analyzing the gaps identified in the labor risk assessments that we performed across our operations last year to measure the labor conditions of our people and possible impacts. During the year, we not only analyzed the identified gaps, but also implemented assertive plans to mitigate them. To this end, we have focused on investments to improve the infrastructure of our work centers and guarantee optimal labor conditions.
We also constantly look for opportunities in our organizational model and structure to ensure that we operate with the greatest efficiency, agility, and efficacy—always accompanying our evolving business strategies and operating conditions, and complying with the countries’ local regulations.
Our people and the way they work together are our company’s most valuable assets. Accordingly, we comprehensively manage, attract, develop, and motivate our people, preparing the next generation of leaders today.
To this end, we improved our talent attraction and retention strategy to ensure that we have the right digital and skilled talent to face coming challenges while leading our organization’s digital transformation. During the year, we recruited 14,645 skilled employees, including 71 digital and IT positions at the corporate level.
Recognizing that we have many talented people across the company, we constantly reinvent ourselves and mobilize the entire organization to get the best out of our talent, unleash its full potential, and inject new capabilities. Among our initiatives, we designed and implemented accelerated development programs like the Lab Leadership Program for the LATAM Marketing and Supply Chain functions, and we continued promoting critical experiences for our people, enabling us to enjoy greater talent visibility and a better succession pipeline for key positions.
Like the Supply Chain & Engineering function, our Lab Leadership Program aims to accelerate development of marketing talent at the LATAM division to develop, expose, and generate international mobility.
Duration: 18 to 24 months segmented into three semesters - two for local and one for international critical experiences
Talent pipeline sourced: Middle-management marketing positions drawn from top internal or external talent with three to five years of work experience
Top reasons for entering program: Clear professional development plans, leadership opportunities, work/life balance, and improved compensation
Program support: Sponsor – Chief Operating Officer – LATAM Division, Mentor – Marketing Director, Project Leader – Hiring Manager, Monthly Follow-up – HR/Talent Area
Developing tomorrow’s marketing talent today
We also improved our employer brand to attract the best talent, and we designed an umbrella of early career programs, including college scholarships, internship programs, and our new trainee’s talent program to increase talent injection and to prepare future generations of talent.
During the year, we continued consolidating the performance evaluation process, focused on each employee’s value generation and contribution to our business strategy—reinforcing and promoting meritocracy. We also continued to encourage our executives to engage in ongoing conversations with team members about their performance and development. This year, we evaluated 97% of our employees’ performance.
84% of our company’s director-level talent requirements filled by internal candidates
Moreover, we kept on improving our talent management processes, assertively ensuring that we offer the best user experience. This year, we deployed our annual 9-Box Talent Assessment for 94% of our people leaders, tactical leaders, and strategic leaders throughout the organization. This evaluation helps us to assess our talent that has more than 6 months in their current position, through their performance and potential, and identify our key talents. We also applied a 360° DNA-oriented assessment of our managers and directors’ behavior. This survey was applied to 84% of our directors and managers to assess their behaviors regarding our DNA values.
Notably, we performed a smooth, successful senior management succession for our CEO, multiple members of our senior leadership team, and country managers. This robust succession planning process enables us to not only quickly identify internal talent, as well as key talent from other FEMSA business units and the market whenever necessary, but also ensure operational continuity across all of our leadership levels.
Under the umbrella of our ESG strategy, we continued to carry out a number of initiatives to reinforce our company’s commitment to diversity, equity, and inclusion. From our “WE Talks” discussion forums to our Inclusion and Diversity Forum, we raise awareness of important societal issues, work to eliminate unconscious biases, and enable our employees to play an integral role on our way to creating a more flexible and inclusive organization.
Inclusive LeadershipRecognition as a company with inclusive leaders and work teams |
Flexible EnvironmentFoster a flexible and agile environment that adapts to the needs of our surroundings |
Diverse TalentEnsure a diverse, inclusive, and respectful workplace for all our employees |
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Inclusive Leadership Training
Engaging and Connecting
Raise awareness and create a call to action on social issues that impact our communities
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Flexible EnvironmentFoster a flexible and agile environment that adapts to the needs of our surroundings |
Certifications and Recognitions
Processes and Practices
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Diverse TalentEnsure a diverse, inclusive, and respectful workplace for all our employees |
Discussion Forums
Representation
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Our diversity, equity, and inclusion (DEI) efforts are currently integrated through a DEI Advisory Board. This board is focused on five main purposes to sustain DEI change across Coca-Cola FEMSA:
Leveraging our DEI Advisory Board, as well as company leaders, to accelerate our strategic development, we have prioritized our company’s talent diversity, placing great emphasis on increasing the gender mix at all levels of the organization with the main focus on leadership and operational positions. By 2030, our ambitions are for women to represent 40% of leadership and management positions.
Aligned with our commitment to improve gender diversity at all levels of the organization, our operations are developing and deploying initiatives to increase women’s representation. Additionally, as a signatory to the UN Women’s Empowerment Principles, we continue working towards those standards as we create a more equitable, inclusive, and diverse organization.
Importantly, for the fourth consecutive year, the Human Rights Campaign Foundation and HRC Equidad MX recognized our company as one of the Best LGBTQ+ Places to Work in Mexico. Recognizing that women and LGBTQ+ groups represent only a fraction of our people’s diversity, we began mapping unrepresented groups in our operations to establish clear ambitions for the coming year.
We have also worked to improve recruitment of LGBTQ+ talent, and allied with Contratá Trans in Argentina to improve the inclusion and social mobility of the trans community. To this end, we have continued to improve inclusion of these LGBTQ+ communities through ally pledges, affinity groups, and consciousness and awareness programs across our countries of operations. In addition, we continued talent programs to attract and retain indigenous, afro-descendant, and economically vulnerable groups into our workforce.
For more information see →Diversity, Equity, and Inclusion – Context & Ambitions.
Aligned with our commitment to improve gender diversity at all levels of the organization, our operations are developing and deploying initiatives to increase women’s representation. Among their actions, Mexico implemented several initiatives to recruit, develop, and retain female talent, such as through the expanding Home Delivery program. Brazil not only continued its program to train women to operate forklifts and perform refrigerator maintenance, but also staffed a distribution center with 40% women employees since it began operations. Additionally, the operation carried out training for women to create opportunities for them in the labor market. Moreover, Colombia launched the “Cinta Violeta” integral initiative for women, incorporating female talent across different areas to encourage their development and help them to prevent gender violence.
The number of total employees for 2022, which includes both internal and third party collaborators, is 97,213.
Our people’s compensation and benefits schemes not only recognize their effort and commitment to their jobs, but also their contribution to our company’s value creation.
With the optimization of our company’s job valuation process—through a model based on job families—we generate efficiencies in our current workforce management, and we strengthen our talent processes such as development, succession, and talent planning.
Moreover, we continue analyzing the current variable compensation schemes throughout our operations in order to reduce the number of schemes and to implement a tool to manage and automate them. We also focused on the evaluation of parental schemes to offer our people a flexible benefits program comparable to those we identified within the market and aligned with our people’s interests.
At all levels of our organization, we ensure that our employees’ remuneration is competitive, and their conditions are equal for both men and women. To that end, we continued analyzing our gender pay gap obtaining a result of 4.6%, which will serve us to design strategies to reduce those gaps and to ensure employee retention. Additionally, based on studies performed by international consulting firms that enable us to make comparisons between countries, we can determine that our employees are receiving an integrated salary that is greater than or equal to the market average.
We act in accordance with obligations defined by law and in full respect of labor rights, exceeding the conditions and benefits established in the laws of each country where we operate. We respect our people’s right of association and, as such, our collective agreements cover approximately 62.1% of employees. These employment contracts are reviewed and agreed on with all of our union representatives, respecting the established validity periods, as well as complying with all notification deadlines.
Aligned with our holistic approach to our people’s quality of life, we launched our integral program of wellbeing this year.
To this end, our Social Development Strategy concentrates on five dimensions:
KOF Volunteers Program
We encourage the development of our employees and their families as responsible citizens, committed to their community, society, and environment. Through the KOF Volunteers program, we promote initiatives that enable us to beneficially impact the quality of life and wellbeing of the communities where we operate, strengthening our relationships with them, while positively affecting our corporate position and reputation.
Our overall volunteer activity is committed to six different causes:
COMMUNITY DEVELOPMENT |
ENVIRONMENT |
NATURAL DISASTERS |
HEALTH |
EDUCATION |
HUMAN RIGHTS |
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COMMUNITY DEVELOPMENT |
We come together to carry out collective action and generate solutions to common problems to create a positive impact and build stronger and more developed communities. | ENVIRONMENT |
We are focused on responsible environmental management and the responsible care and use of natural resources, with attention to our ESG Framework, especially on issues such as water, energy, carbon emissions, water bodies’ cleanup, and reforestation. | NATURAL DISASTERS |
We promote solidarity efforts in the event of natural disasters, providing support to people and affected areas, while carrying out prevention activities for greater awareness, with special attention given to the communities where we operate. | HEALTH |
We undertake activities that promote healthy physical and bio-psychosocial lifestyles, as well as initiatives related to humanitarian aid, nutritional training, and with the health sector in general. | EDUCATION |
Our activities aim to improve educational levels and promote cultural, creative, and technological development. | HUMAN RIGHTS |
We seek to generate positive volunteer experiences based on respect and compliance with Fundamental Human Rights. |
In this complex environment, we focused on remote and distance volunteering activities to support the quality of life of our people and communities. During the year, 105,958 participants, including our employees and their families, devoted 250,812 hours to 2,337 volunteer initiatives, supported by an investment of US$8,719,611.
For more information see →External Social – Progress & 2022 Highlights.
2,675 million hours of volunteer over the past eight years
At Coca-Cola FEMSA, we seek to improve employees’ physical and psycho-emotional health, encourage engagement and a sense of belonging within the organization, and strengthen our health and social programs for an improved work environment.
Occupational Health & Wellbeing Management System
Our Occupational Health & Wellbeing Management System establishes the vision, strategy, objectives, elements, and activities through which we improve the quality of work life for our employees across our company’s work centers and strategic business units. Complying with our legal, ethical, scientific, and organizational framework, this system encompasses our health processes and programs that we apply according to applicable risk matrices, local legislation, and operational needs.
During 2022, we achieved a 12.5% improvement in our Lost Days due to General Illness Index versus 2021, driven mainly by our decentralized health programs, global disease prevention strategy, integral wellbeing activities, and epidemiologic watch systems.
12.5% improvement in our Lost Days due to General Illness Index versus 2021
Health & Wellbeing Policies
At Coca-Cola FEMSA, our Corporate Occupational Health area is responsible for proposing relevant revisions and updates to our two Health & Wellbeing Policies:
As well as this annual corporate review, which is sent for approval to our Director of Social and Labor Development and Global Director of Human Resources, our company’s internal audit area reviews these policies for dissemination and implementation across our operations.
Employee Support Program
Throughout 2022, we continued with our Employee Support Program across all of our operations. This emotional support program is designed to help our people and their families to cope with any situation that may cause stress, anxiety, and depression, among other emotional disturbances, and to give them psychological support.
This program is part of our comprehensive welfare strategy to reduce psychosocial risk factors inside and outside of work through the counseling and attention of psychologists and other health professionals according to our people’s different situations.
During the year, we carried on working to move our HR function into the digital era while improving our employee experience.
To this end, we continued the deployment of our Success Factors talent platform throughout all of our operations. Ultimately impacting all of our employees, this platform will integrate, improve, and simplify our leaders’ and employees’ experience with HR processes. Currently, we are working on standardizing and migrating our HR Administration backbone—including our master database and payroll systems—to a cloud-based solution in order to meet market trends and set the foundation for our path to digital.
Moreover, we continued to make significant progress on HR process standardization and automation for our third parties management, variable compensation, and time and attendance processes. We also began the implementation of a tool to digitalize our documents throughout our operations, which will enable us to be more agile creating, updating, and managing our people’s files.
We further implemented a powerful online survey tool to gather greater information about our employee voice, and we launched several surveys that gave us valuable employee insights for our strategy. We also continued researching new technologies that could help us to enjoy a better employee experience, including the exploration and functionality testing of an HR chatbot.
Additionally, we carried on automating and improving our dashboards—enabling us to offer equal information or benchmarks—and we proceeded developing and testing several people analytics use cases concerning employee performance, strategic workforce planning, and organizational network analysis. Some of these use cases will enable us to gain better insights for decision-making, enabling us to determine whether an employee is well suited for a particular vacancy, or if a gap opportunity in a certain priority area arises, as well as how we can help employees with their career growth and development.
Through these steps, we are convinced that we will continue evolving our HR capabilities to put our people at the center of the organization, offering a unique and customized employee value proposition built on the pillars of our HR of the Future—analytics, digital architecture, service model, and people profile.
