"Modern HR and the Role of Organization Designer", talking with Cargill Thailand Senior HR Director
HIGHLIGHT
● Cargill is part of the global agricultural and food processing industry. It was established about 158 years ago with around 155,000 employees in 70 countries worldwide
● Cargill has 3 core values 1.) Do The Right Thing 2.) Put People First and 3.) Reach Higher
● Cargill believes in and focuses on end-to-end human resources management starting from recruitment process, employee training and development, and employee retention for overall sustainability
● Cargill Thailand applies the principle of holistic human resources management by integrating various strategies from its parent company in the USA and apply them in the context of Thailand, focusing on maximizing efficiency and effectiveness for both employees and stakeholders in the entire system
If we would like to learn about how to practically manage a large number of employees with diversity in terms of gender, age, race, culture and background, Cargill is a perfect place as it is a global manufacturer and distributor of food and agricultural products with collaboration from farmers, customers, government agencies and communities.
Cargill has over 158 years of experience with over 155,000 employees in 70 countries around the world, around 16,000 of them are based in Thailand. So let’s find out together why Cargill is able to manage a large number of employees so effectively that it was awarded Best Companies To Work For In Asia จาก HR Asia และ Best Employer Award by Kincentric last year.
On this occasion, HREX.asia would like to engage you in a conversation with Khun Vichaya Pongphasook, Senior HR Director from Cargill Thailand. We believe that this interview will change your view on people management.
First of all, we would like you to summarize the reasons why Cargill was awarded Best Companies To Work For In Asia Award from HR Asia and Best Employer Award by Kincentric
Khun Vichaya: In my opinion, the main factor is human resources management capabilities with 3 core values. The first on is Do The Right Thing. The second is Put People First. The last one is Reach Higher. We always adapt to social context, for example, DEI or diversity support and management. This is truly our priority. It is not just announcing a policy to follow a global trend without implementation.
We consider People First foundation not fashion, which just comes and goes. For example, during the COVID-19 crisis, we were in a very difficult situation but we try our best to take care of our employees, e.g. providing vaccine for employees to ensure that all Cargill employees were safe. Even though at that time it was challenging to secure vaccine for the employees and a massive budget was required, thanks to our management philosophy of People First, we were able to control and manage the COVID-19 situation effectively.
As we were aware that we cannot live alone with no one around, we donated vaccine to our neighbouring communities. If we are safe but our neighbours are not, the pandemic may come back. That’s why we helped protecting them.
In addition, we paid for Bubble and Seal for our employees, entering into a rental contract with over 100 local hotels in Saraburi and Nakhon Ratchasima for around 2 months consecutively. This was well supported by our parent company in the USA. We also remind our management team to use their best efforts to take care of our employees. So, in my opinion, the answer is that we truly believing in our value of Put People First.
As for DEI, we have around 12,000 daily-paid employees in the operations team and around 4,000 monthly-paid employees. Among the 12,000 employees, there are both Thai people and foreigners from Laos and Cambodia. We treat them respectfully and equally in all aspects of human resources management because we consider our employees the most valuable resource of the organization and the foundation for the company’s sustainable growth.
Forbes reported that Cargill was awarded America's Largest Private Companies of 2021 during the COVID-19 pandemic. What do you think that helped the company to overcome the difficult situation while many other companies in this world could not?
Khun Vichaya: We have to admit that the COVID-19 situation was beyond our control as it was a global pandemic that severely affected businesses around the world. However, as I mentioned earlier, the foundation of Cargill is truly People. We instantly questioned whether we provided enough care for our people, not just our employees but all of our stakeholders including business partners, neighbouring communities, etc. We believed that we would survive and be safe together.
We appointed Crisis Management Team to manage the situation. We considered how to deal with unplanned situations, what to do next when someone resigns, how employee morale was, what the company could further support both employees and their family while working closely with the government sector and neighbouring communities to ensure common understanding to control and manage such situation.
During such situation, the company faced labour shortage, affecting the manufacture of products to be delivered to our customers. Due to the government’s restrictions on transportation and contact with job applicants in the targeted areas and others, our HR Recruiter team was unable to use the traditional recruitment and selection process. However, HR Department and executives from various divisions brainstormed to find out the best solution under the context at that time. This resulted in a change in the recruitment and selection strategy from offline recruitment and selection strategy to online recruitment and selection strategy. That means how to recruit in a virtual environment effectively, for example, using social media such as TikTok, Facebook, YouTube, LINE.
The main principle was SWOT Analysis to formulate SWOT Matrix strategy to attract potential job applicants (Know Cargill. Love Cargill. Apply for a job at Cargill. Join Cargill)
Implementing such strategy, the company’s employment rate increased from 43% to 97% in 4 months, positively affecting business operations and continuity of manufacture and delivery of safe food to our local and international customers. Furthermore, the company received certificates from many groups of customers. This will have a long-term effect on trust and professionalism of Cargill in general.
In the organization with diversity in race, hierarchy, culture, belief, how can you manage all groups to live together?
Khun Vichaya: There are 2 methods. The first one is Top-Down Strategy or analysis from the big view from the top down to the small view from the bottom. The other method is Bottom-Up Strategy or thinking and focusing on small things. Both methods are indispensable.
For Top-Down Strategy regarding DEI, we try to simplify this complicated matter to ensure that all employees at all levels can understand and appreciate. For example, DEI means difference, diversity, togetherness, equity and equality
Then we use 2-way communication with inclusive language. No complicated words are required. Just focus on communicating the importance of respect for diversity and how it positively affects their life and the company. As we focus on people and our employees are aware of this, they understand that our proposed approaches are truly good for them.
Cargill is a big family with over 16,000 members from different backgrounds. How can we minimize inequality and bias among them? This question resulted in a project to manage unconscious bias. Importantly, the company reminds supervisor-level employees to lead by example.
As an organization with 70 branches around the world, how do you formulate policies? Does the parent company define corporate policies for us to apply as appropriate or else?
Khun Vichaya: We have our corporate HR team called Centre of Expertise. Their role is a “thinker” to formulate policies. When they start doing something, local representatives will participate. Then there will be a pilot test to ensure its effectiveness. To implement such initiative, there will be a step called CCE (Change, Communication, Education) to communicate and train all to agilely adapt themselves to the change. If we would like to change something, we will discuss in this step. Our core remains the same.
As I said earlier, we also have the Bottom-Up process. We have the welfare committee at each plant. The committee comprises of people from different races and religions. They brainstorm and propose ideas to Thailand’s top management team, leading to developing policies that comprehensively meet the needs of our employees.
It can be said that our welfare is this perfect because we always listen to feedback from the top to the bottom and vice versa. I would say that this can happen when an organization implements well communication. At Cargill, we utilize a wide variety of communication tools to ensure that our messages are delivered to all.
We create general notices. We create videos. We create wired audio. We send messages via LINE or supervisors. We will immediately create all channels that we think can facilitate our employees to easily access to information. We translate our messages from Thai language to Lao language and Khmer language. We really focus on Put People First.
Our world has changed rapidly. What is Cargill’s process to develop welfare that is consistent with social conditions?
Khun Vichaya: Cargill gives priority to provide welfare that is consistent with social conditions. We know that people’s attitudes have changed over time. So, we cannot just stick to one policy even though it was previously successful.
One example is our hiring policy. Now we have a committee directly overseeing equality. When we hire new employees, we try to ensure that the male-female ratio is appropriate according to the principle. No rejection or acceptance to hire someone just because that person is male or female. We should focus on capabilities.
For example, when we talk about engineers or technicians, normally we think of males first don’t we? This is also considered unconscious bias. We set a target to increase the male-female ratio. Now we have a lot of female engineers and line managers. Out of 16,000 employees, 58% are females.
Importantly, we have the welfare committee to consider suggestions from our employees. Anyone can access this information. Although the decision is subject to the company’s consideration, I would like to suggest that when someone talks to or demands something from us, no matter what the result is, we must have an answer for them. Don’t let their words disappear. We must respect their thoughts because this is the foundation of Feedback Culture that will encourage our employees to express their opinions which will have a positive impact on the company.
In my opinion, an organization should Do The Right Thing with The Like Thing under The Right Direction. This must always be in HR’s mind.
Lastly, could you please summarize how HR can contribute to growth of the organization?
Khun Vichaya:
- In my opinion, today HR should take roles of Modern HR and Organization Designer to set the direction of human resources management under the ever-changing context
- HR should focus on building a foundation rather than fashion to contribute to sustainable growth of the business
- Do The Right Thing with The Like Thing under The Right Direction. This must always be in HR’s mind because we cannot manage to satisfy everyone in every aspect. Therefore, professional HR must maintain such balance
- Strategic Human Resource Management (SHRM) and Strategic Human Resource Development (SHRD) are the key to shift an organization from an organization of administrative, day-to-day, operational work to an organization of future success.
- Cultivate and build understanding of the roles and duties of supervisors and managers because they are People Manager who will lead the organization, manage teams to create success with efficiency and effectiveness for sustainability in the long run.
