Good morning!
A recent conversation between Fortune’s Phil Wahba and PepsiCo’s CHRO Ronald Schellekens caught my attention. Schellekens shared that PepsiCo has never—and as far as he’s concerned, will never—waver on its unique commitment to hiring 2,000 U.S. graduates each year. Cut to my immediate reaction: In this economy?
The conversation, part of an exclusive Fortune Connect panel, detailed how the food and beverage juggernaut stays true to its “people as assets” approach. “Many companies invest in management and leadership training, but few do it as systematically as PepsiCo,” wrote Phil in his December feature detailing the food and beverage giant's leadership development strategy.
Though hiring 2,000 graduates annually is not a formalized commitment in writing, Schellekens says it's necessary for building a robust talent pipeline. “That requires, I think, a kind of institutionalized culture where we say, 'Okay, this is the belief of the company. This is how we build leaders for the future.'”
Many of today's Fortune 500 CEOs had career pit stops at PepsiCo. There's Brian Cornell at Target, Lauren Hobart at Dick’s Sporting Goods, and Dave Kimbell at Ulta Beauty, to name a few. In total, 16 current Fortune 500 CEOs have previously worked at PepsiCo.
“Our early hiring programs are vital to this effort of building a pipeline, and we’re proud that we’ve been tracking roughly the same number over at least the past two recruitment cycles,” shared a spokesperson for PepsiCo. “This is purely based on hiring needs and the belief in our college [and] university hiring programs.”
PepsiCo's approach to internal career growth has earned it the reputation of a "talent academy," and it's always assessing workers' potential, Schellekens says. “We don’t like it when people leave our company and become CHRO or CEO of another company, but they always leave us for much bigger jobs...They always make a big jump.”
Amber Burton
amber.burton@fortune.com
@amberbburton
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