2. Training and development

Since the basic principle in HR is constant training and development, the company pays on it special attention. Nestle annually provides thousands of educational programs throughout the world for all levels of employees from the farmers in the dairy factories and ending with the top managers. Training and education programs are both general and highly specialized.

Despite the fact that Nestle doesn’t have its corporate university, there are many training centers all around the world with quite similar structure to the university. Definitely, there are training centers in developed countries (as the international training center in Switzerland), but, nevertheless, Nestle pays more attention to developing countries. So they create special programs, trainings and courses, which often are unique because no other company has organized similar programs. The example could be training programs for employees from developing countries, called ABET - Adult Based Education Training. This program is established for those who missed a large part of their elementary school education. It takes place in Mexico, Brazil, Thailand and in the number of African countries. The program actually replaces the school education, but also includes special courses like hygiene, safety orientation and administrative regulations. Usually it is needed on factories with modern and sophisticated mechanisms and equipment but with low-qualified workforce.

Programs like ABET not only contribute to the Nestlé’s efficiency of staff, but also to its international image as a social responsible company, which takes care about its employees and helps countries to develop.

In 1959 Nestle became one of members of Swisscontact²⁸. Then, during the period of expansion and high growth rates, the company had to pay more attention to well-trained employees in local subsidiaries. Since it was primary developing countries there was created a range of new programs. One of the first ones was in Colombia and South Africa for the young trainees who used to work and study (follow the training) part time. It was quite similar to nowadays programs for graduates, when a person works for a company as an assistant or trainee and after he or she is hired for the full-time position. This system was implemented in several countries more. Subsidiaries started to collaborate with local school and universities and this led to appearance of new kind of trainings – joint. Before this time all programs were run by internal trainers and by company itself. So now they established close relations with institutions and local government, so some programs were subsidized jointly – by company and by government.

Let us briefly introduce the example of such apprenticeship program, which took place in Nigeria. The training center was opened in 1985 entirely by company. There were hired teachers from outside of Nestle, usually they were teachers in state technical schools and they used to combine work in school and in Nestle center. The program included half of the year as a trial period and four years for program itself based on the program of business school. General subjects like economics and introduction to business were combined with specialized ones (ex. Mechanics and electricity). After all students have to pass exams and obtain an official diploma. This system is quite similar to the corporate university, but in Nestle there is no unique and global university. So they provide these programs in local and regional training centers.

Turning to the division of all trainings according to the provider, there are internal and external trainings conducted on local and international bases.

Local training courses are basic and integral part of the training and development program of Nestle. They account for a large part of the program. This is primarily due to the geographic spread of business. In each country there are different levels of education of employees, different demand and consumer tastes, different cultures and traditions. Therefore, the core business trainings are held locally. The vast majority of local trainings conducted by internal coaches and teachers, moreover the manager himself is involved in the teaching and often performs the role of the coach. For this reason, part of the training structure in every company is focused on developing managers’ own coaching skills. Rarely local trainings are provided by external specialists and usually it is due to new machinery or technology. Such trainings have short-term and technical character. But in some cases company organizes joint trainings for managerial staff, which includes internal implications and external provider. However there is a dependency between the provider of trainings and position: technical positions tend to have internal trainers, while administrative and managerial – external. So as the level rises, collaboration with external institutes increases.

International trainings are provided by training center located in Switzerland, near headquarter. It was established about 30 years ago and up to now the Rive-Reine International Training Centre unites managers from all subsidiaries around the globe. Here managers learn not only from seniors but also from each other. Country managers decide who attends which course, although there is central screening for qualifications, and classes are carefully composed to include people with a range of geographic and functional backgrounds. Usually it contains about 20 nationalities. Trainings provided here have internal character and only 25% of all courses are told by external consultants. That is not a surprise that programs have managerial nature and could be divided into two main categories: for managers and for executives. Management courses account for a bit more than half of all courses at the Center. They are dedicated to company’s values, policies and business approaches and typically have internal nature. While executive program is for managers who already done the first program several years ago. Here they discuss industry and business of the company in general, best practice on the market, trainings have consulting and discussion form and it is often provided by externals. The company has close relations with many universities and business schools around the world (INSEAD – France, Harvard – USA, Wharton - USA, etc.). One of these schools is the IMD - International Institute for Management Development in Lausanne – one of the best business schools in the world and first in the Europe²⁹. Nestle played a significant role in the creation of IMD and it is represented on its Foundation Board and its Business Advisory Council. The IMD is the main external provider in the Rive-Reine International Training Center of Nestle. IMD professors teach on a number of programs at the Centre. IMD’s principal training vehicle for Nestle managers is PED – Program for Executive Development. This program is developed for managers with high potential to promote them to a new position. The international center provides also management courses in local centers³⁰.

It is also noteworthy that Nestle has its system of distance learning. It is computer-based system that provides trainings for all levels of employees. The range of trainings is expanding. In this system each employee has an opportunity to select courses that meet their individual needs and do the work at their own pace, at convenient time.

Picture 3. Typology of trainings in Nestle