Nestle Problems and Challenges

Topics: Human resource management, Employment, Human resources Pages: 8 (2057 words) Published: April 15, 2011
Nestlé’s Major Challenges:

Here are some the common challenges which all the organizations face around the world and Nestle Bangladesh Ltd is also facing all of these challenges more or less.

✓ Aging workforce and retirements

As most of the upper level positions are filled with aged personnel and each year some of them are going to retirement, Nestle has to go for continuous recruitment process to fill those positions when succession is not possible and finding the right person is also a challenge as well.

✓ Less experienced and smaller younger generations

Our current job market is filled with new graduates who lack experience which Nestle seeks to maintain the standard in their workplace.

✓ Lack of investment in training and education

Still most of the companies are reluctant to invest on training and development sectors to increase the efficiency of the employees. Even though Nestle is offering its own training and education program to its employees but to be competitive in the market and increase efficiency, more focus on this field is mandatory.

✓ Mismatch between training and education outputs vs. business skill needs

There is not enough capacity at educational institutions to keep up with corporate and student demands, and this will only worsen as technology and innovation increase the rate at which knowledge and skills become obsolete.

✓ Lack of appropriate succession planning

It is not always possible to fill up all the positions internally but when Nestle go for headhunting, they face challenge in finding qualified managerial talent and skilled workers.

✓ Recruiting from a narrow pool of potential talent

Because of rigid job descriptions and hiring requirements, Nestle recruit talent from a narrow pool of potential talent. It may make it difficult to select the best talent from the market.


While identifying the problems for Nestle Bangladesh Ltd we have divided it into two sections which are Internal and External problems to make it more specific.

• Internal Problems

– Lack of proper Policy regarding talent acquisition

Nestle Bangladesh is following their international HR policy which is not always applicable in Bangladesh’s perspective. Moreover they do not have any specific policy for talent acquisition.

– Lack of motivation to keep the talents competitive.

After acquiring talents, they have to be given proper benefits and compensation. At the same time, regular training is also required to keep them competitive but Nestle has some shortcoming in keeping the talents competitive.

– High turnover rate

Nestle has to conduct recruitment at a regular basis which implies that they have problems with retaining efficient employees.

– Talent costs this year are inflated

According to some recent analysis, the cost of retaining talent has been increased 25 percent. Executives and HR professionals from large and small companies overwhelmingly report that increased competition for talent is leading to higher compensation packages, slower time to new hires, strains on quality and customer service, and reduced business flexibility.

– Poor image

But we have found out from our research that Nestle Bangladesh us not yet as lucrative as other competitors to young professionals. It does not have good image compare to other MNCs in the job market which may influence to attract candidates to apply for the positions.

• External Problems

– Brain Drain

As a result of rising costs and time required to hire good new talent, organizations are increasingly looking inward to train, develop, maintain and evolve their existing workforces. However, after training employees are leaving after a moderate period.

– Lack of efficient Human Resources...
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