Most-respected employers 2004: where to work and why in Latin America.

Large multinationals squashed the competition on the 2004 LATIN TRADE Most-Respected Employers in Latin America survey. Nestle headed up the group in the No.1 position, and many of its consumer-goods brethren, the most-represented segment in the Top 25 companies, made the list as well. The high-tech industry made out particularly well, too, and the rest of the list was comprised of companies from the automotive industry, financial services, and airlines, among others. Twelve hundred survey respondents, primarily mid- to upper-management executives who expect to earn between US$60,000 and $100,000 in their next positions, picked the 25 companies in the region that best attract and retain top talent.

Bert Valencia, director of the global MBA program at Thunderbird University, The Garvin School of International Management, finds it interesting that all but one of the 25 companies selected were traditional global multinationals (the exception was Mexican media giant Televisa). It could be malinchismo, that Latin Americans tend to prefer the foreign to the domestic. Or it could just boil down to the money, says Valencia. Total compensation and benefits are often more attractive at large multinationals, and international assignments and the associated expatriate benefits, like free housing, are more common. "Many Latin Americans prefer to work for a multinational because they pay you better and give you better benefits," says Valencia. Judging from the testimonials of employees at these world-renowned companies, pay is important, but their dedication to their companies goes far beyond finances.

Swiss consumer-goods giant Nestle prides itself on its European approach to business. Maria Clara Esguerra, a logistics manager for Nestle Mexico who has worked in Venezuela and Colombia, says that her company is more people-oriented than some of the more numbers-driven U.S. companies. But that doesn't mean that Nestle managers hold your hand throughout the career. "I entered Colombia as a trainee in distribution, and after two months I was managing the distribution department," says Esguerra. Fernando Cesar, a consumer-marketing manager for Nestle Mexico, also lauds the accelerated advancement that's possible at Nestle. "I've had the chance to grow quite fast in a short time, and I see a clear future on where I can be working in a few years," he says.

The freedom to move around in the company, both internationally and between functions, contributes to this fast track to success. But Cesar advises that employees speak up when they feel ready to move. "No one is in the driver's seat of your career except for you," he says. But once upper management sees potential and desire in an employee willing to try something different, it is likely to move that employee around the operation to make sure that his or her skills become as well-rounded and adaptable as possible.

High potential. Such high-potential employees "eventually have the opportunity to take on an international role, running a country business, because there are so many of them throughout Latin America" says James Gerchow, a Nestle category marketing manager in Mexico. In fact, the chance for an international career was one of the primary drivers in Gerchow's decision to pursue a job at Nestle.

Outsider experts agree that Nestle is one of the most global of all companies. Its brand name is a powerful selling point to job-seekers as well. "You automatically make a connection with trust, reliability of the product," says Rodrigo Araujo, a senior consultant and practice leader in Sao Paulo with executive search company Korn/Ferry International.

Julie Lasa, director of operations for Central America, Colombia, Venezuela and the eastern Caribbean for FedEx Express, the package-delivery arm of Federal Express, places much importance on the company's people-first philosophy. Lasa recounts a story of a young FedEx customs agent in Guatemala who was walking to work when he noticed a woman in a long skirt bent over in the street, in labor. So he did what some passers-by would not: He stopped. "He helps this woman give birth to this baby in the middle of the street," says Lasa. "We call it the FedEx baby!"

Then there was the dispatcher in Caracas who received a shipment order for which FedEx couldn't get a scheduled pickup, so he rented a car and drove 100 miles on his day off to pick up the 300-pound package and deliver it personally. Random acts of heroism and bending over backwards for the customer are so common that FedEx has created special awards to recognize such sacrifices. The CEO himself presents the Purple Promise and Golden Falcon awards to the honored employees in a ceremony broadcast over FedEx's internal television station.

Luckily, FedEx treats its employees just as well as its workers tend to treat strangers and customers--and not just within the confines of their cubicles. Lasa, a.k.a. "Hurricane Julie," has helped coordinate hurricane-relief efforts throughout the Caribbean over the last decade for FedEx employees, their families, and for customers. After a hurricane struck the Caribbean island of St. Thomas in 1995, one FedEx aircraft visited the island just to deliver 1,000 cellular phones to residents stuck with no phone service.

Back at the office, the overnight transportation behemoth makes all efforts to develop employees to their full potential and to promote from within. Formal training opportunities abound, such as the Leadership Institute at the company's Memphis, Tennessee headquarters, "maestro" classes for managers, and tuition reimbursement for both full-time and part-time employees. Roby Brown, vice president of operations for 39 Latin American countries, is living proof of FedEx's dedication to recruiting its leaders from inside the company. "I've lived the dream, coming from a part-time courier to a vice president" he says. "They truly stand for what they say." And after more than 20 years with FedEx, steadily making his way through the ranks, Brown's current vantage point allows him to see how vital employee empowerment is to the company's ultimate success. "The higher you go, the less significant you are. Your job is just to facilitate the people-first philosophy," he says.

Pride is a common thread among most companies selected by survey respondents. Employees at the Top 25 often said that working there is a way of life. "Sometimes my wife says to me, 'Why don't you change into a polo shirt that doesn't say Continental?' My family has become Continental salespeople too," says Ivan Montero, a sales manager in Costa Rica for the U.S. airline. Though the company has gone through tough times and even bankruptcies over the years, employees remain loyal. "Employees are married to the idea of improving the company," says Montero.

After Continental emerged from its second bankruptcy filing in 1993, CEO Gordon Bethune--new on the job--made several key operational and environmental changes, such as the recovery plan he created with Chief Operating Officer Greg Brenneman. These leaders and their efforts are still cited often by employees today as major drivers of the company culture that they love so much.

Communication. Another one of Bethune's pet projects, open communication, is key to keeping Continental employees comfortable and happy. Bethune sends weekly voicemails to all employees; an update email goes out daily; and digital displays throughout the offices flash Continental's on-time rate every 90 seconds. "There is no one in this company who can say they don't know what is going on at the company," says Montero.

Continental's Pete Garcia, staff vice president for Latin America, was part of the creative force behind the "Latinization" program, which although aimed primarily at Spanish- and Portuguese-speaking passengers, also makes employees more at home onboard and in airports. Continental offers its employees plenty of developmental opportunities, such as monthly leadership training, where vice presidents share their leadership techniques with employees. And this commitment to investing in people is not going away any time soon, says Garcia.

"Even in times when it's been difficult to fund it, we've always found a way to keep it intact. That is one of the best ways to show that we want people to have a long-term career here," he says. At U.S. carmaker General Motors (GM), equal developmental opportunities help keep employees loyal for the long haul. The car manufacturer rejects the idea that there must be a natural division between hourly and salaried employees.

"When you don't limit your base, you have a lot more raw material for the development of your people. You'd be amazed at how much potential and energy, are in your hourly people," says Paolo Moreira, director of human resources for General Motors do Brasil. A director of manufacturing started as an hourly apprentice; another former hourly worker is now director of the Sao Jose dos Campos, Brazil plant; and a compensation manager and logistics director both began their GM careers as shoeshine boys for the company.

General Motors also pours tremendous time and energy into maintaining the lines of communication, so that all employees can speak their minds and have an impact on the company's direction. Fred Roldan, a supply operations manager in Brazil, remembers brimming with ideas his first week at GM and how he desperately wanted to share these with his director, which he got to do during a 45-minute meeting. "I never had the occasion to be [told to] shut up in the company; there's no such thing here," he says.

Executives and managers frequently host special meetings called cafezinhos--because participants talk over coffee-with small groups of 8 to 10 employees. The purpose is to stimulate conversation on hot topics, and the moderators undergo training on how to ask probing questions and to get honest answers. GM do Brasil holds about 100 cafezinhos each month and primarily targets the hourly employees, whose relationships with supervisors usually occur in larger groups.

Trademark. For employees who might not be as bold in approaching top management as Roldan, General Motors has installed electronic suggestion boxes. Every 10 days, employees can anonymously, by touch screen on kiosks around the plant, answer a multiple-choice opinion question. "Would you rather work for a company that is solid but pays less, or a company that pays better but is less solid?" was a recent one. According to Moreira, what's most important is that employees think and share their perceptions of the company. "We could presume we are good and just sit back," he says. "But we risk the possibility of people saying, 'This company stinks'.... This is our trademark, and the world is going to hear about this one, I'm sure of it."

In the 1960s, U.S. information technology company IBM pushed the boundaries of the industry and made the personal computer a success and a household name. Today, IBM continues to place just as much emphasis on expanding the industry--the company invests almost $6 billion every year on research and development. But it's the people (including four Nobel Prize winners), not just the hefty research budgets, who ultimately make IBM a success. With over 300,000 professional employees, IBM is proud to be the largest professional employer in the world. IBM has "a lot of human capital, a lot of critical mass," says Guillermo Miranda, an executive partner in human resources for IBM.com.

Within this massive professional base, IBM constantly evaluates its employees against their peers. "Most companies in the market have appraisal systems that just say, 'Your job description is this, are you doing this? OK then, good,'" says Miranda. Not IBM. Big Blue believes in comparative performance evaluations, which means that you must perform against not just your individual goals and objectives but also stack up to your coworkers throughout the corporation.

To that end, "IBM-ers" are given lots of opportunities to shine in the form of challenging projects with fast turnarounds. Miranda had one particularly demanding assignment when he opened a human-resources service center in Brazil to serve all of Latin America. He and his project team had to structure this center to provide the same level of service to all employees, regardless of country or business unit.

Miranda's project was a chance to do something new within IBM and to prove himself, and he passed with flying colors. It has been so successful that IBM now duplicates the service-center model among its big clients. The first of these was Procter & Gamble, also one of our Top 25 companies, which in 2003 awarded the outsourcing of all of its human resources and payroll activities worldwide to IBM's service center in Costa Rica.

But, Miranda says, had there been any glitches in the plan, he feels confident that he would still be in good standing with the company. "Mistakes are acceptable ... but not too many," he says.

1 Nestle

Global revenues in US$ bn   $71
Countries in region         24
Employees in region         36,052
% of global employees       14.2

One of the strongest brand names in the world, the Swiss company promotes international career opportunities as well as moving its executives around in different functions and to different posts to increase their depth. Nestle shares its knowledge and resources among a global network of offices, and it offers extensive training both locally and at the Switzerland headquarters.

2 Coca-Cola

Global revenues in US$ bn   $21
Countries in region         40
Employees in region         5,800
% of global employees       11.8

Known for world-class marketing, Coca-Cola provides generous tuition reimbursement, exemplifies social responsibility, and has a high risk-tolerance in the name of creativity. Managers' targeted development meetings focus on motivating and developing its employees, and the environment is described as being just plain fun.

3 FedEx

Global revenues in US$ bn   $22.50
Countries in region         50
Employees in region         3,114
% of global employees       2.3

Diversity is a top priority, as is promotion from within, and empowered employees move up through the ranks quickly. FedEx invests heavily in the continuous training and development of its people, and in return employees proudly claim they "bleed purple." Not surprisingly, FedEx's global chain of offices allows for plenty of career mobility.

4 HP

Global revenues in US$ bn    $73.10
Countries in region          20
Employees in region          6,005
% of global employees        4.2

Since its 2001 merger with Compaq, Hewlett-Packard has focused on and succeeded at change management. Initiatives such as the human resources council help build morale and consensus in the post-merger company. Innovation is still a constant, and internal recognition programs award employees exemplifying particular HP values, such as teamwork, integrity, passion and achievement.

5 Sony

Global revenues in US$ bn   $69.80
Countries in region         12
Employees in region         2,300
% of global employees       1.4

The Japanese tech firm fosters a paternalistic environment, where employees feel protected by their "family." Entrepreneurial spirits are nurtured, and turnover is extremely low. You can even become black-belt certified in Six Sigma, the quality-control measurement standard coined in the 1980s at Motorola and made famous by companies like General Electric. Upper echelons are slowly becoming more diverse, through measures such as leadership programs targeting non-Japanese managers.

6 General Motors

Global revenues in US$ bn   $185.50
Countries in region         29
Employees in region         22,500
% of global employees       6.9

The car manufacturer ably balances its global organization with sensitivity to cultural differences among all its locations. Equal emphasis is placed on developing hourly and salaried employees--many directors of General Motors in Brazil have risen up from hourly positions. Average tenures are long, and many formal programs encourage employee suggestions on continually bettering the company.

7 PepsiCo

Global revenues in US$ bn   $27
Countries in region         42
Employees in region         55,000
% of global employees       38.5

Anything but paternalistic, PepsiCo practices on-the-job training--adapt, or risk being left behind. Bosses are called "coaches," and customers are considered the only boss. Company objectives require that everyone spend at least 10% of time training and coaching others. Cross-fertilization among functions is increasing, and advanced succession planning and mentoring programs are in place.

8 Procter & Gamble

Global revenues in US$ bn   $43.40
Countries in region         9
Employees in region         9,668
% of global employees       8.9

Working here is "like doing an MBA and being paid for it," says German Saenz, an external relations manager, of the company where big responsibilities are granted from day one. Procter & Gamble is consistently honored as being one of the best companies for working mothers, and even employees without children enjoy flex-time benefits.

9 Colgate-Palmolive

Global revenues in US$ bn   $9.90
Countries in region         41
Employees in region         36,600 *
% of global employees       na

A combination of training and employee empowerment equips the consumer-goods company's people to excel. Employees can change jobs often and move quickly through the ranks. The exclusive Colgate Leadership Challenge brings a handful of high-potentials from all over the world together for an intense week of training with senior management.

10 Motorola

Global revenues in US$ bn   $27.10
Countries in region         9
Employees in region         10,243
% of global employees       11.6

This huge tech company offers global mobility while preserving a family feel. Structured training and partnering with respected universities ensure that employees are ready to be managers and vice presidents. Performance-focused and demanding, Motorola subsidizes educations at even the most expensive schools to develop its high-potential employees.

11 American Express

Global revenues in US$ bn   $25.90
Countries in region         8
Employees in region         78,200 *
% of global employees       na

The charge-card company aims to retain talent long-term and rewards them through multiple recognition programs, both financial and non-financial. Employees are not only allowed to pursue additional degrees, they are often encouraged to do so by their bosses and are sponsored by the company. A transparent job-posting system allows employees to compete for any position, even in different functions and countries, via the intranet.

12 Televisa

Global revenues in US$ bn   $2.10
Countries in region         na
Employees in region         12,300 *
% of global employees       na

With a chairman at the tender age of 36 at Televisa's helm and most of top management under 40, employees know their dreams of rapid progression through the entrepreneurial company can be a reality. The Mexican media giant utilizes little formal training, living more by the learn-as-you-go philosophy. Communication flows easily and freely in all directions.

13 General Electric

Global revenues in US$ bn   $134.20
Countries in region         6
Employees in region         43,000
% of global employees       14.3

Described as a flat meritocracy, General Electric pushes its people to rotate positions every few years, and employees are trusted to do their own performance reviews. "They keep the people moving," says Adrian Fernandez, a business-development senior analyst in Mexico. All are required to be at least green belts in Six Sigma, the quality-control measurement standard practiced at and often associated with GE, and earning black belts or even master black belts is encouraged.

14 IBM

Global revenues in US$ bn   $89.10
Countries in region         20
Employees in region         10,000
% of global employees       3.1

The company with the most patents on Earth takes advantage of its global network by sending employees on temporary assignments among locations all over the world, as well as relocating them for more long-term positions. The "speak up" program ensures that every employee can bring issues to the top executives, even up to the CEO if need be, via confidential online submittal. And one of the highest honors is being named a people manager, which grants you responsibility for the career development of an entire team.

15 Kraft Foods

Global revenues in US$ bn   $31
Countries in region         20
Employees in region         15,000
% of global employees       15

"You are the architect of your own career within Kraft," says Silvino Angeles, a human resources operations manager in Mexico. Employees enjoy great freedom in moving around geographically and cross-functionally--just express your desire to do so, and chances are you can. A casual environment and values consistent across locations put employees at ease.

16 American Airlines

Global revenues in US$ bn   $17.40
Countries in region         54
Employees in region         6,200
% of global employees       6.4

Employees are constantly pressed to develop, whether through going back to school or changing positions. A women's mentoring program pairs women in top management with less experienced women and even flies them between countries to meet with each other if needed. The Walk-a-Mile program swaps managers between locations to foster knowledge-sharing.

17 Kimberly-Clark

Global revenues in US$ bn   $14.30
Countries in region         13
Employees in region         7,128
% of global employees       11.5

Big responsibilities are granted early on--even interns can manage projects and train employees on new initiatives. Every employee is evaluated on building talent within the company, and rotations ensure exposure to new tasks. Informality and fun are key. Everyone is on a first-name basis, even with the CEO.

18 Continental Airlines

Global revenues in US$ bn   $8.90
Countries in region         24
Employees in region         1,244
% of global employees       3

Continental Airlines management offers several programs, such as low-cost language classes, cultural heritage events, and a scholarship fund for all employees and dependents. Employees in locations outside the United States are allowed to come up with business ideas rather than having headquarters dictate them, and the "we care" program assists Continental folks facing hard times in their personal lives.

19 MasterCard

Global revenues in US$ bn   $2.23
Countries in region         7
Employees in region         160
% of global employees       4

Balancing work and life is a must, as seen in initiatives such as "evolution," which brings personal trainers and nutritionists onsite regularly for employees. Confidential employee-assistance programs provide personal counseling services, free of charge. Diversity is promoted through initiatives such as the Women's Leadership Summit, and an entrepreneurial spirit is encouraged.

20 Unilever

Global revenues in US$ bn   $53.80
Countries in region         na
Employees in region         234,000 *
% of global employees       na

A global consumer-goods company with a wide portfolio of respected brands such as Lipton, Ben & Jerry's and Dove, Unilever affords its employees mobility within its numerous operations. High performance and productivity are key, and creativity is encouraged. The company also practices environmental and social consciousness through various initiatives.

21 Pfizer

Global revenues in US$ bn   $45.20
Countries in region         15
Employees in region         7,000
% of global employees       5.7

The pharmaceutical company is very performance-oriented and makes sure that all objectives, cascaded down from the top, are measurable. "Round robin" meetings between different areas promote cross-function collaboration and alignment. Pfizer will cover up to 100% of the cost of a degree, and all new employees are paired with a mentor for three to six months, depending on how quickly they acclimate.

22 ChevronTexaco

Global revenues in US$ bn   $112.90
Countries in region         42
Employees in region         53,000 *
% of global employees       na

The post-merger company is a flatter organization than before, with more fluid communication and easier access to top leaders. Personnel-development committees rank employees for inclusion in the succession-planning program, and training opportunities are virtually unlimited via live sessions and the self-paced, Web-based Knowledge Planet tool.

23 Wal-Mart

Global revenues in US$ bn   $258.70
Countries in region         4
Employees in region         150,300
% of global employees       10

The ever-growing retail giant prides itself on equal treatment and development of all employees, "from the most humble position to the manager of the store," says Joao Carlos da Silva, a district director in Brazil. A tutoring program pairs company leaders with pupils for a year of frequent get-togethers to share experiences.

24 Nissan

Global revenues in US$ bn   $70.10
Countries in region         13
Employees in region         10,270
% of global employees       8

The traditional Japanese carmaker follows the hoshin kanri approach to management, cascading the overall company business plan all the way down to the individual level, but still allows for creativity. Your first two years are spent learning the company and observing others, and you're not expected to truly perform until the third year.

25 JPMorgan Chase

Global revenues in US$ bn   $16.20
Countries in region         9
Employees in region         110,453 *
% of global employees       na

Recognized as female-friendly, the bank supports balancing work and personal lives. The communication lines are always open. "From analyst, to associate, to my boss, to my boss's boss, it's very informal," says Therese Rabieh, a managing director and Brazilian expatriate in the New York office.

Methodology: The LATIN TRADE Most-Respected Employers survey is derived from a 600-company list of multinationals and Latin American domestic companies from several already-published lists of best employers in the region. The 200 largest employers were included on our online survey, which was distributed to our magazine's subscribers as well as to business graduate students and alumni at several international business schools. We received 1,200 completed responses.

STAR SEARCH

What LATIN TRADE readers said they expected from the job market this year.

What is your expected starting level at your next job?

                         Entry    6%
             Middle management   43%
Division Chief/Country Manager   36%
      C-level (e.g., CEO, CFO)   10%
                        Other     5%

Note: Table made from bar graph.

What is your expected salary at your next job?

 Less than US$60,000   26%
  $60,000 to $99,999   44%
$100,000 to $149,999   20%
$150,000 to $199,999    5%
  More than $200,000    5%

Note: Table made from bar graph.

What is your expected signing bonus at your next job?

Less than US$5,000   16%
  $5,000 to $9,999   30%
$10,000 to $14,999   19%
$15,000 to $19,999    8%
 More than $20,000   11%
  No signing bonus   16%

Note: Table made from bar graph.

To what locations would you be willing to move for a job?

North America     45%

U.S.              20%
Canada            14%
Mexico            11%

South America     18%

Brazil             3%
Arg.               3%
Chile              3%

Europe            18%

Central America   11%

Other              8%

SOURCE: LATIN TRADE

Note: Table made from pie chart.

LESLIE CONTRERAS * MIAMI