Consistent with our commitment to foster an agile, digital savvy, and people-centric culture, we defined our Human Resources (HR) function’s long-term strategy.

To facilitate this strategy, HR acts as agents of change—leading our cultural transformation journey, reshaping our company through talent, enabling key organizational capabilities, and improving HR data and processes to deliver faster and better services to our organization.

Foster An Agile, Digital Savvy, and People-
Centric Culture

HR Strategy 2020-2025

Enable key organizational capabilities
Adapt cultural, structural and leadership capabilities to meet evolving business needs

Transform KOF
through talent

Ensure that our Talent becomes the competitive advantage to reach KOFʼs strategic goals

Improve HR data, processes & service
Promote standard, data-driven, automated and digital HR processes to deliver faster and better services

CULTURAL & ORGANIZATIONAL TRANSFORMATION

Our cultural transformation journey, coupled with the complex business outlook brought on by the COVID-19 pandemic, required the continuity of relevant cultural changes throughout the organization. Our HR function became an active strategic business partner, efficiently facing the company’s business needs and adding value to the overall strategy.

Deployment of DNA KOF In 2018, we began our cultural transformation with the launch of KOF DNA. One of the elements of our DNA is to be agile decision-makers, which is why we promote action oriented decisions.
COVID-19
“The 2020/21 global pandemic has elevated the role of the CHRO and the HR function.”

—Gartner

The pandemic brought a series of HR challenges, enabling it to become a strategic partner for the business. This required HR to reconfigure its model and ways of working to support all of the company’s needs.
Functionalization
In 2019, we began a functionalization process to achieve greater alignment of our corporate areas and countries where we operate ensuring more agile and better services.

In 2018, we launched our DNA to ensure that our customers and consumers were prioritized to our activities. This year, we reinforced our DNA—establishing that our people are at the center of everything we do. To this end, we continued to create mechanisms and practices to live and refresh our DNA throughout our organization. For example, we developed and implemented a recognition program known as “Estrella KOF” or “KOF Star” in all of our operations, where our employes nominate and recognize their colleagues for showing extraordinary commitment to our DNA.

We further focused on our digital and agile transformation, enabling our organizational capabilities, transforming KOF through talent, and improving our data processes and services. Among our strategic initiatives, we developed our Agile & Digital Academy, which offered digital capabilities training to more than 5,500 leaders throughout the organization. We also adopted agile ways of working like digital communities and cells. Moreover, we are analyzing the world’s trends and defining new ways of working in the post-pandemic environment, taking into account radical flexibility and making hybrid work a reality.

To support our transformation, we made organizational changes based on our refreshed corporate strategy, including the creation of commercial platforms to ensure our business transformation, the reorganization of the HR and Finance functions to offer greater strategic contributions to our business from these central areas, and the integration of the RTM Center of Excellence to unify our processes and practices to better serve our customers.

To this end, we designed robust HR, Finance, IT, Compliance, and Corporate Affairs models from our corporate areas to our countries of operation. These upgraded operating models focus on supporting our refreshed corporate strategy: on the one hand, they exploit our current capabilities through their focus on the transactional aspects of our business; on the other hand, they explore future opportunities through their focus on the strategic elements of our business.

+5,500
leaders trained through our Agile & Digital Academy.
Upgraded HR Operating Model
HR Talent Leaders HR Transformation Centers of Excellence (CoEs) HR Operations
  • Lead HR at country level
  • Make local decisions and execution
  • Respond in an agile manner
  • Build internal client relationships
  • Build labor relationships
  • Reduce focus on operational management
  • Harmonize new business and categories
  • Focus on the future (innovation, benchmarks, best practices)
  • Drive cultural transformation
  • Lead inclusion and diversity agenda
  • Manage internal communications
  • Guard change management
  • Govern lean and agile methodologies
  • Subject matter experts in each of HR’s main functions:
    • Talent Management
    • Training and Development
    • Total Rewards
    • Labor Development
    • Health and Social Development
    • Security
  • Execute transactional operations
  • Identify and develop shared services opportunities
  • Drive automation and digitalization
  • Generate insights based on HR information and analytics
  • Deliver employee experience

People partners

People of the future

People products

People services

We conducted our biannual employee engagement survey throughout our operations. This year’s survey showed significantly improved employee engagement and communication with leaders through various cultural and communication efforts such as KOFFEE Talks, which are spaces where leaders enjoy the opportunity to interact with our people to discuss topics of interest.

We further implemented our labor risk methodology assessment remotely across nine of our countries of operation to identify gaps in our operational basics, people needs, and feelings. This assessment enables us to gather relevant information regarding our operations, prevent possible labor impacts, and develop plans to address identified needs.

Finally, we are integrating the core capabilities of our business, developing different functional academies focusing on areas such as logistics, commercial, warehouses, and manufacturing, among others.

Functional Academies

This year, we completed eight functional academies to further develop the core capabilities of our business. Comprised of 80% virtual and 20% face-to-face instruction, these academies currently cover over 49,000 employees.

Distribution 1.0
Courses: 34
Warehouses
Courses: 15
Logistics
Courses: 45
Asset Management
Courses: 36
Commercial Basics
Courses: 55
Manufacturing
Courses: 63
Property Protection
Courses: 14
Leadership & Culture
Courses: 22

TALENT MANAGEMENT AND DEVELOPMENT

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 effectively, preparing the next generation of leaders today.

This year, we designed and implemented programs to ensure we have the right talent for the right position. 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. This year we won the LinkedIn Talent Award, recognizing us as a company that excelled at engaging with talent, creating inclusive workplaces, building strong employer brands, encouraging learning and development, and focusing on employee retention. Among our initiatives, we created our employer brand to attract the best talent, and we developed programs like internships with top U.S. universities and other key organizations to increase talent injection. We also continued implementing the lab leadership program for the Supply Chain function, giving us greater talent visibility, and enabling us to enjoy a better succession pipeline for key positions.

Lab Leadership Program

Our Lab Leadership program aims to facilitate accelerated development of talent at the Supply Chain & Engineering talent to develop, expose, and generate international mobility

Program Features

  • Duration of the program: 4 semesters - 2 for local experiences and 2 for international experiences.
  • A biannual mentoring meeting with Rafael Ramos.
  • A monthly follow-up meeting with the Talent area.
  • Check point scheme with the Local Supply Chain Director.

During the year, we continued to build our Performance Management System, giving depth to leader-collaborator conversations while focusing on accountability and contribution to the business. To this end, we evolved our technological enabler Success Factors Talent Platform to accompany these dialogues and to close the virtuous circle between user experience and execution.

We further kept on improving our talent management processes, proactively ensuring that we offer the best user experience. Moreover, we deployed our annual 9-Box Talent Assessment and 360º evaluations for leaders, enhancing our talent quality, succession, mobility, and execution metrics, while focusing on our high potential talent.

Training hours

INCLUSION & DIVERSITY

At Coca-Cola FEMSA, we are on our way to creating an environment in which each person feels included and valued for their own knowledge, behavior, skills, and results, with opportunities for development and recognition based on their talent. To this end, our strategic pillars are:

Inclusive Leadership

Recognition as a company with inclusive leaders and work teams

Flexible Environment

Foster a flexible and agile environment that adapts to the needs of our surroundings

Diverse Talent

Ensure a diverse, inclusive, and respectful workplace for all our employees

Inclusive Leadership Training

  • Unconscious bias training and awareness
  • Ignite leader’s role as inclusion and diversity advocates


Engaging and Connecting

  • Raise awareness and create a call to action on social issues that impact our communities

Certifications and Recognitions

  • Inclusion on various indexes and obtain recognitions such as: Bloomberg Gender-Equality Index, Human Rights Campaign, UN Women, Women Matter – McKinsey, Linkedin Talent Awards


New Normal

  • Efforts deployed alongside new normal practices and new ways of working

Female Talent Pipeline

  • Representation of women in leadership roles
  • Efforts to foster female employability


Discussion Forums

  • Provide safe places for our employees to dialogue


“Our Label Is Talent” Campaign

Aligned with the pillars of our Inclusion & Diversity Strategy, we carried out several initiatives throughout the year to reinforce our company’s commitment to inclusion and diversity. From our “We-talks” discussion forums to our Inclusion and Diversity Forum, we raised awareness of important societal issues that will enable our employees to play a role in creating a more equal, diverse, and inclusive organization.

Inclusion & Diversity Board

To accelerate the development of a truly inclusive and diverse organizational culture, our companywide Inclusion and Diversity Board is focused on five main purposes:

  1. Engage and hold leaders accountable throughout the organization
  2. Define both long- and short-term objectives and strategies aligned with our company’s inclusion and diversity vision
  3. Ensure functionality of work teams at a country and regional level
  4. Ensure deployment of an internal and external communication plan
  5. Measure, monitor, and evaluate initiatives.

Leveraging our Inclusion and Diversity Board, as well as company leaders, we have prioritized and accelerated the diversity of talent that makes up our company, placing great emphasis on increasing the mix of female talent at all levels of the organization with a primary focus on leadership and operative positions. With that in mind, we became a signatory to the UN Women’s Empowerment Principles, as we continue creating an inclusive and diverse organization.

Improving gender diversity

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 initiatives, Mexico implemented a systematic plan to recruit, develop, and retain female talent, incorporating 108 new women in their operation. Brazil developed a program to train women to operate forklifts. Moreover, Guatemala not only developed a program focused on women, but also a program to attract native people through a strategic alliance with the Labor Ministry and Native People Associations.

Our operations are developing and deploying initiatives to increase women’s representation.

EMPLOYEES
Per age group in each contribution level

EMPLOYEES
Per gender in each contribution level

EMPLOYEES
By contract & region

84,568
Employees

COMPENSATION AND BENEFITS

Our people’s compensation and benefits scheme not only recognizes their effort and commitment to their jobs, but also their contribution to our company’s value creation. Therefore, despite the continuing impact of the COVID-19 pandemic, we were able to keep salaries aligned with local levels of inflation or market references during 2021.

Thanks to the optimization of our organization’s job valuation process, through a model based on job families, we not only generate efficiencies in our current workforce management, but also strengthen our talent processes such as development, succession, and talent planning. Also, it allowed us to improve our compensation plan to accompany the contributor’s salary throughout their development.

Moreover, we analyzed the current variable compensation schemes throughout our operations to reduce the overall number of schemes and to implement a tool to manage and automate them. We also continued the implementation of a flexible benefits program to offer our people new and different options that we identified within the market, based on our people’s interests. To support all of our workers in our new working schemes, we are giving them different ways to maintain their wellbeing and health. We further analyzed our turnover to design strategies to retain our top talent.

At all levels of our organization, we ensure that our employees’ remuneration is competitive, and their conditions are equal for both men and women.

At all levels of our organization, we ensure that our employees’ remuneration is competitive, and their conditions are equal for both men and women. 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% of employees. These employment contracts are reviewed and agreed with all our union representatives, respecting the established validity periods, as well as complying with all notification deadlines.

Despite the continuing impact of the COVID-19 pandemic, we were able to keep salaries aligned with local levels of inflation or market references during 2021.

SOCIAL DEVELOPMENT

Aligned with our comprehensive wellbeing model, we promote our people’s integral development and quality of life.

To this end, our Social Development Strategy concentrates on five dimensions:

  • Health: We promote healthy physical and bio-psychosocial lifestyles for our employees.
  • Social Relationships: We encourage satisfactory relationships in harmony with the environment and community through employee volunteering activities.
  • Economic: We promote the protection of assets and the generation of savings through a culture of financial intelligence.
  • Education: We promote participation in programs and trainings to improve and increase knowledge and personal development skills.
  • Labor: We promote positive work experiences based on respect and compliance with Human Rights, as well as fostering workspaces that promote safety and labor relations.

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
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. We are focused on responsible environmental management and the responsible care and use of natural resources, with attention to our Strategic Sustainability Framework, especially on issues such as water, energy, carbon emissions, water bodies’ cleanup, and reforestation. 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. 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. Our activities aim to improve educational levels and promote cultural, creative, and technological development. 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, 93,012 participants, including our employees and their families, devoted 254,873 hours to 2,432 volunteer initiatives, supported by an investment of US$279,734.63.

Throughout this year, we developed several activities across the countries, regarding the six different causes: for the environment, we performed activities to recycle water bottles and plant trees in Mexico, Colombia, Guatemala, Panamá, and Venezuela. For the health cause, we made campaigns to support the community with medicines and treatments, and to support our people who are going through difficult situations, we designed a program to give emotional and psychological support to manage difficult situations related to COVID-19 in all our countries. These were some of the activities that we undertook during 2021. Volunteering activities remained a challenge because of the complex situation wrought by the pandemic. Therefore, we developed distanced and face-to-face activities, taking into account every COVID-19 recommendation to take care of our employees.

2,424,873.1
hours of volunteer work since 2015

OCCUPATIONAL HEALTH

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 and wellbeing processes and programs that we apply according to applicable risk matrices, local legislation, and operational needs.

Health & Wellbeing Policies

At Coca-Cola FEMSA, our Corporate Occupational Health area is responsible for proposing relevant revisions and updates to our two Health and Wellbeing Policies:

  • Global Safety and Occupational Health Policy
  • Human Rights Policy

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.

Continuing COVID-19 Actions & Initiatives

As a key player within an essential value chain, we take our commitment to provide hydration and nutrition to the communities we serve with all seriousness. More importantly, we know that, to deliver on this commitment, the health, safety, and wellbeing of our employees are at the front and center of our priorities.

This year, we continued to prioritize the occupational health, safety, and wellbeing of our employees throughout the course of the COVID-19 pandemic. Indeed, many of our reinforced health, sanitation, and hygiene protocols are becoming not only a daily routine, but also Coca-Cola System and industry benchmarks.

Beyond our ongoing health, sanitation, and hygiene protocols, including our protocol to follow-up active and suspicious COVID-19 cases, we developed a health app to manage our back to office initiative. With these and other initiatives, we not only take care of all of the defined protocols to keep our people safe, but also proactively monitor our people’s health.

We made several efforts to promote the vaccination against COVID-19 among our employees; we gave paid labor permissions for our people to attend the vaccination journeys in their corresponding localities, according to the national vaccination plans of the countries in which we operate. In some operations, private transportation has been provided from the operating unit to the vaccination center, so that workers have greater comfort and are motivated to get vaccinated.

There are also various communication campaigns with the benefits of the vaccines, we have designed talks given by our medical services, as well as webinars and virtual conferences, with medical specialists to explain and clarify all doubts related to vaccines.

Employee Support Program

Throughout 2021, 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.

2%
improvement in our lost days due to our General Illness Index versus 2020

Lost Days due to General Illness Index
per 100 Employees
(Less is better)

534.4

2021

545.2

2020

PATH TO DIGITAL

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 Platform (SSFF) throughout all of our operations. Ultimately impacting all of KOF’s 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.

This year, we finished the implementation of Employee Central across all of our operations. This tool is designed to transform personnel administration management, promoting leaders’ empowerment while improving our employee experience. It is the base of global HR tools where the organization’s master data is housed. We also continued to make significant progress on HR process standardization and automation for our third parties management, variable compensation, and time and attendance processes. Notably, we deployed in 2021 the cloud version of our variable compensation tool in Brazil, Colombia, and Panama, while implementing our time and attendance tool in our corporate offices.

Furthermore, we began implementing a tool to gather greater information about our employee voice, so we can develop and launch more surveys to give us valuable employee insights for our strategy. Additionally, we analyzed our current information capabilities and KPIs to design a standardization strategy across all of our operations through a central community, which will enable us to automate our dashboards, continuously improve our reports, provide equal information or benchmarks, and in the future, utilize predictive analytics.