Unilever's Strategic Approaches to Recruitment

¶ … Unilever's Strategic Approaches to Recruitment and Selection and Performance Management Established in the 1890s, mega-corporation Unilever currently competes on a global level with more than 400 brands in more than 40 countries, many of which have longstanding and widespread recognition. To its credit, the company has acquired and merged with dozens of other enterprises over the years and has managed to harmonize its human resource operations across both national borders as well as dissimilar corporate cultures with good results.

Although it is reasonable to suggest that Unilever's human resource practices differ across its dozens of business units and far-flung geographic locations, it is also reasonable to suggest that it is possible to discern, at least in a general fashion, the company's recruitment and selection as well as its performance management strategies based on its promotional material and industry analyses.

To this end, this paper provides an examination of the peer-reviewed and scholarly literature, as well as organizational material from Unilever, to determine how this company achieved this harmonization and a competitive advantage by applying strategic approaches to its recruitment and selection as well as its performance management functions. A summary of the research for both tasks and important findings are presented in the paper's conclusion.

Review and Discussion Task 1: Recruitment and Selection Practices at Unilever The specific strategic goals of an enormous multinational corporation such as Unilever vary from industry to industry as well as by region and country. For instance, Van Clieaf (2004) notes that, Unilever is "a global entity operating in three or more industry sectors, with over 30 business unit presidents accountable for investing in new products and new business models in more than 40 countries" (p. 2).

At present, Unilever also has more than 170,000 full-time employees working in these far-flung geographic locations throughout Asia, Africa, Europe, and the Americas. (Company profile 2012). In addition, Unilever (hereinafter alternatively "the company") has established some general strategic goals for sustainable development and enlightened human resources practices in all of the markets in which it competes (Van Clieaf 2004). These types of lofty -- and laudable -- corporate goals demand a careful assessment of how to best use an organization's resources to achieve a maximum return on their investment.

Given the enormous diversity that exists within the company's human resources and the differing needs of its business units, the specific recruitment and selection strategy used at a given point in time and place may reflect the immediate needs of the company, but increasingly, multinational corporations such as Unilever are seeking to align the recruitment and selection process with larger corporate goals such as those described above.

The strategic alignment of the human resource recruitment and selection function with these types of ambitious organizational goals has become an important part of achieving a competitive advantage in the increasingly globalized marketplace in which the company currently competes. In this regard, Millmore (2005) emphasizes that, "Recruitment and selection has long been recognized as a key activity within human resources. Prior to the more recent emphasis on strategic alignment, organizational recruitment and selection practice remained relatively unchanged, having evolved into a relatively standardized approach frequently libeled as 'traditional'" (p. 87).

In sharp contrast to the traditional approach to recruitment and selection, the strategic application of this HR function involves placing a premium on "selecting employees against organizational rather than job-specific criteria" (Millmore 2005, p. 88). Some indication of the vast variety of jobs available throughout the company is provided in Table 1 below.

Table 1 Summary of Unilever's Business Units Business Unit Description Personal care products These include skin care and hair care products, deodorants, and oral care products under the brand names of Axe, Brylcreem, Dove, Fissan, Lifebuoy, Lux, Pond's, Radox, Rexona, Signal & Close Up, Simple, St. Ives, Sunsilk, TRESemme, Vaseline, and VO5. Home care products These include laundry tablets, powders and liquids, soap bars, and a range of cleaning products under the Cif, Comfort, Domestos, Omo, Radiant, Sunlight, and Surf brand names.

Food products soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, as well as cooking products, such as liquid margarines under the brand names of Becel/Flora, Bertolli, Blue Band, Rama, Hellmann's, Amora, and Knorr. Refreshment products These include ice cream, tea-based beverages, weight-management products, and nutritionally enhanced staples under the brand names of Heartbrand, Lipton, and Slim Fast. Source: Corporate profile 2012 Clearly, virtually anyone who has consumed anything in recent years has purchased one of the company's products.

Beyond the broad range of specialty and general job types that are required to support these enterprises, the company also maintains its own sales force to support them (Corporate profile 2012). A review of the job postings by the company indicates that although there are several job-specific criteria involved in the recruitment and selection process, these criteria are tied to the larger corporate goals established by Unilever. For example, the company's latest annual report emphasizes the strategic focus of the company's recruitment and selection function.

According to the annual report for 2011, "The talent we need will come from all over the world. We've introduced global standards for graduate recruitment, so that people have the same experience wherever they start. We have targeted universities, particularly in emerging markets, with our campus recruitment programme. In 2011, we were recognised as the most preferred graduate FMCG (fast-moving consumer goods) employer in 14 countries" (p. 21). In addition, the company's annual report for 2011 codifies Unilever's larger corporate goals with respect to its recruitment and section function as follows: 1.

Under the umbrella of its Code of Business Principles, Unilever aims to ensure that applications for employment from people with disabilities, and other under-represented groups, are given full and fair consideration and that such people are given the same training, development and prospects as other employees. 2. Every effort is also made to retrain and support employees who become disabled while working within the company. 3. Unilever continues to review ways in which greater diversity can be achieved in recruitment and selection. 4.

The company has also established policies that promote the achievement of diversity in its business and reviews these regularly. For example, Unilever UK provides policies on home working, flexible working, maternity and paternity leave, child care provision and career breaks, which help the company meet the objective of greater employee diversity (Unilever Annual Report 2011, p. 124).

Another indication concerning how the company aligns its recruitment and selection function with its larger corporate goals is reflected in Unilever's promotional material for prospective candidates that states, "We grow through focusing on our key brands, nurturing our people and continuing to develop as a world-class organization. As a business we constantly strive to progress through simplifying our systems and optimizing our processes" (How we work 2012, p. 3).

Certainly, while it is vitally important for multinational corporations such as Unilever to constantly fine-tune their supply chains to add value and eliminate waste at every opportunity, it is also important to develop recruitment and selection processes that facilitate the accomplishment of these larger organizational goals. To this end, the company reports that, "To keep up the pace of change we recruit individuals who balance talent and creativity with a passion to win and the ability to deliver results.

And we reward them with professional challenges, opportunities for career and personal growth, and a highly supportive workplace" (How we work 2012, p. 3). Taken together, it is clear that Unilever uses a wide range of recruitment and selection approaches to satisfy its human resources needs, but it appears the company has recognized the need to coordinate these services in ways that contribute to the accomplishment of its larger corporate goals as well in ways that many of its competitors have failed to achieve in a timely fashion.

Notwithstanding the global nature of the company's enterprises, Unilever has established some overall guiding philosophies with respect to its recruitment and selection processes that reflect its larger corporate goals, indicating a clear strategic alignment. With respect to the far-flung nature of the company's business unit, Unilever reports that its recruitment and selection approach ". varies around the world because, naturally, people have different points-of-view depending on where they live.

But some things are consistent, important things that determine how we interact with colleagues and partners, customers and consumers" (the important things in life 2012, p. 1). The core principles that influence Unilever's recruitment and selection process at present include the following: 1. Most important are our high standards of corporate behavior, which are enshrined in our Code of Business Principles. We also have high ethical standards, both in terms of people and the environment. 2.

What's more, we are proud of this business and what it does -- bringing trusted products to millions across the globe. In fact we have a phrase for our philosophy: 'doing well by doing good'. 3. We value colleagues as individuals, we're friendly towards each other and we're informal in terms of corporate behaviour and, to a large extent, dress code. We go out of our way to build personal networks throughout the company, not just in our area of responsibility. 4.

Our people have a passion for achievement, strive for outstanding results and are determined to get things done. 5. To make sure that happens each and every day, we have created a working environment in which you can be yourself. After all, as a business we need to be as diverse as our millions of consumers around the world. 6. Finally, we believe in everyone's ability to develop and grow.

Whatever our function, role or level, we all have an equal right to take advantage of learning opportunities and progress how we want to in our chosen careers (the important things in life 2012, p. 2). In their online posting concerning, "Fostering a performance culture," Unilever stresses the globalized nature of its performance management processes and emphasizes that these are internalized throughout the organization's culture.

According to Unilever's Web site on its Agile Working culture: "By giving people freedom around how and where they work, we're creating a culture focused on performance and results rather than time and attendance. To enable Agile Working, Unilever is investing in new collaboration technologies, innovatively designed workplaces, and highly flexible and empowering HR practices" (Agile Working 2012, p. 1). By promoting and actually maintaining its image as an enlightened employer, Unilever is strategically aligning its recruitment and selection process with its larger corporate goals.

In this regard, the company adds that, "We believe doing so improves business productivity, increases employee engagement and vitality, and helps ensure that we have the very best people working for us. With less travel and more efficiently designed workplaces, Agile Working is also helping Unilever benefit the environment" (Agile Working 2012, p. 2). With more than 170,000 employees, measuring performance at Unilever represents yet another challenging endeavor, an area where the company excels as discussed further below.

Task 2: Performance Management Practices at Unilever Corporate giants such as Unilever must employ a flexible approach to performance management based on the unique conditions that exist in the geographic regions in which it competes (Gorelick, Milton & April 2004). For instance, according to the company's most recent annual report (2011), "Unilever operates a wide range of processes and activities across all its operations covering strategy, planning, execution and performance management" (p. 33).

Beyond this generalization, though, there is some indication that performance management processes throughout the company are ultimately approved at the appropriate corporate level based on its specific needs at the local and regional levels, while maintaining a focus on improving its supply chain operations across the board and eliminating waste at every opportunity. Identifying appropriate and effective ways to measure the performance of its far-flung enterprises, though, apparently remains a relatively localized affair.

At present, the company is controlled by a board of directors that has ultimate responsibility for the performance of all of the company's business units, but these are divided into two major groups that have fundamentally different missions and goals (Annual report 2012). In sum, performance management practices throughout the company are based on the preferences and specific requirements of the type of industry and culture in which the company competes, making this aspect of corporate governance an especially challenging endeavor for this company's top leadership team.

While specific performance management practices vary, a general corporate performance management program is in place at Unilever that provides a framework in which employee expectations can be measured against performance to identify strengths and weaknesses and improve job fit to promote individual growth within the company. This overall approach includes a standardized development evaluation form that is used throughout the company's global enterprises (Kiger, 2005). The company's entire description of its performance management approach is concise and worthy of quoting here: Your progress is important.

That's why we invest a lot of time & effort in supporting you to perform well and in building your capabilities. Performance and Development Planning (PDP) helps you make the most of your working life at Unilever. The process supports you in identifying and delivering against challenging goals that impact the organization. It helps you plan how you'll develop skills and leadership behaviours for your current position and for the years ahead. It also gives you the opportunity to clarify expectations and discuss future opportunities.

PDP provides a continual process that allows for a thorough evaluation of your performance. it's an approach designed to encourage clarity and transparency throughout the year. The key thing to remember is that this is an ongoing dialogue between you and your manager. it's about listening, sharing and accepting feedback, and taking responsibility for the next step in your career. (Performance management 2012, p. 3) This overarching performance management process is responsible in large part for the company's successful integration of its broad-based enterprises within its corporate umbrella.

For instance, Kiger (2005) reports that, "Unilever, whose products include food, home and personal care products, made a successful union with Ben & Jerry's, a rare story in the highly charged world of mergers and acquisitions. Only about 15% of corporate mergers achieve their financial objectives, and about half result in culture clashes" (p. 33).

Like Roman conquering its neighbors and allowing them to retain their chieftains and religion, Unilever has harmonized its human resources practices by allowing its subsidiaries to apply its performance management practices in ways that are best suited to their individual needs. In this regard, Kiger (2005) emphasizes that, "Unilever allowed Ben & Jerry's to pick which parts of the parent company's human resources policies it wanted to adopt. When Ben & Jerry's did implement a Unilever program, it was free to modify it.

In the case of Unilever's standard global development evaluation for employees, for example, Ben & Jerry's shortened the document and added the company's social mission as one of the performance goals" (p. 33). An executive at Ben & Jerry's said of the company's global development evaluation performance management approach: "Unilever had a good process, but we needed to make it ours" (quoted in Kiger 2005, p. 33). Moreover, the company's globalized but flexible performance management approach has paid dividends in other ways as well.

For instance, Kiger reports that, "While Ben & Jerry's did go through downsizing, its integration with its corporate parent also has created opportunities" (p. 33). These opportunities included applying the company's organizational culture to its new acquisition in ways that were consistent with both organizations' core values -- a daunting prospect by any measure. Nevertheless, Unilever's performance management approach was up to even this major challenge.

For example, Kiger (2005) notes that following the acquisition by Unilever, most of the employees at Ben & Jerry's were more interested in whether the parent company would continue their social activist approach and emphasis on quality, while virtually none of the employees were interested in how the acquisition would actually make money. According to Kiger, although Unilever assured Ben & Jerry's employees that their interests would be protected, they needed to help the parent company achieve the fundamental goal of generating revenues in the process.

In this regard, Kiger (2005) reports that the new CEO for Ben & Jerry's made it clear that in order for both companies to succeed in promoting their social activism goals, they would have to focus on performance and making money from the outset. In this regard, Kiger (2005) emphasizes that, "Unilever used persuasion rather than coercion. The new CEO argued that the best way to spread Ben & Jerry's enlightened ethic throughout the business world was to make the company successful" (p. 33).

This approach to implementing new performance management processes in another enterprise with a proven track record of success requires a delicate balancing act, but Unilever's leadership team appears to know what is needed in a given situation. For example, Kiger also notes that: Changing mind-sets [at Ben & Jerry's] wasn't easy. The workforce, though skilled at making quality ice cream and ereative at marketing it, wasn't up to speed on boring stuff such as corporate finance.

Unlike other bottom-line-conscious companies, Unilever didn't require Ben & Jerry's to quantify the dollars-and-cents impact of its human resources policies. Instead, once management decides a program is needed, the only charge is to deliver it within budget. We measure return by whether or not the company achieves its overall goals. (emphasis added) (quoted in Kiger 2005, p. 34) Although the process has not been without its problems, the transition to Unilever's performance management approach by Ben & Jerry's has produced some unexpected benefits.

In fact, despite eliminating more than 50 jobs (primarily at Ben & Jerry's headquarters) and 69 elsewhere in the system and the closure of several facilities as part.