Unilever
Unilever
Most businesses are likely to operate in a market of fierce competition, and the industry
competitors constantly change their policies to retain customers to their side in this day
and age. Not to mention each sort of good, buyers stand in front of so many choices of
types and brands of products. Concurrently, customers’ demands are also progressively
diverse. Therefore, they could choose the goods appealing the most to fulfill maximum
needs and the benefits of themselves.
Such a competitive environment that each company is facing, what they must do to
survive and be at the top of the market. First of all, a business must be organized in a
reasonable scientific way, which can fully utilize the capabilities of all employees. This
essay may identify the organizational structure and financial status as well as examine
the human resources section of the Joint Venture Unilever company.
Unilever was formed by a merger of Dutch Margarine Union and British soap-makers
Lever Brothers in 1929. Unilever was one of the world’s first genuine multinationals with
operating companies in more than 40 countries.
2. Areas of business
Unilever primarily concentrates on three kinds of products: home care, personal care,
and foodstuff. Representative brands are internationally faith in and widely accepted
such as Lipton, Knorr, Omo, Comfort, Lux, Vim, Lifebuoy, Dove, Close-up, Sunsilk,
Clear, Pond's, Vaseline, and Hazeline,...with sales over millions of dollars for each
brand that has proven Unilever becomes the most successful in the world's businesses
in personal care.
3. Organizational structure
In January 1930, the merger between Margarine Union and Lever Brothers was made.
A new England - Dutch alliance called Unilever has been born.
To avoid the dual taxation system, the coalition decided to separate into two companies:
UK - based Unilever PLC and Unilever NV headquartered in the Netherlands.
Although these two companies have almost independent operating structures, Unilever
remains a unified entity. Unilever shareholders, whether in Britain or the Netherlands,
receive the same dividend.
Before 1990, Unilever had a product-type divisional structure.
The subsidiary of each market is in charge of production, marketing, trade, and
distribution according to the orientation of the basic product group to which it
belongs
They need to be self-responsible for business performance
This structure worked effectively from 1950 to 1970.
In the 90s, the corporation restructured its system, the regional structure has been
applied
In 2005, changing the leadership structure. For the protection of shareholders’ rights
and unified development, Unilever maintains only one CEO and a non-executive
chairman. This unification makes all decisions possible to come out quickly.
4. Finding of business
Year (billion) 2019 2020 2021
Revenue 51,980 50,724 52,444
Costs 43,237 42,401 43,806
PBT 8,289 7,996 8,556
Tax 2,263 1,923 1,935
PAT 6,026 6,073 6,621
The Covid 19 pandemic had a negatively dramatic effect on the global economy and
Unilever was no exception. The sales revenue saw a slight decline from 51,980 to
50,724 billion euros (about 2,4 percent) in 2020. However, this number moderately
increased to 52,444 billion euros, surpassing the beginning quantity during a three-year
period starting from 2019. The turnover of 2021 rose 3,4 percent compared to the
number of the last year.
The Group costs witnessed the same fluctuation trend as its revenue, which fell to
42,401 billion euros in 2020 and went up again of 1,405 billion euros. This number
accounts for approximately 3,3 percent compared to the proportion of costs in the last
year of this time frame.
In 2021, the profit before tax from Unilever slightly dropped from 8,289 to 7,996 billion
euros (about 3,5 percent). Then, this number continued to go up to 560 billion euros in
the next year.
The Group profit after tax experienced a totally opposite trend compared to these
previously mentioned patterns, which continuously increased from 6,026 to 6,073 and
ended up by a noticeable growth at the end of the period.
*Internal source
Internal resource recruitment is not common and is rarely mentioned at Unilever. It
usually occurs in jobs that are higher than the beginning level of one profession or when
jobs are rearranged to better suit employees' capabilities and interests. Unilever
typically employs the following policy:
Notices of vacancies are distributed to all employees in the organization via an
internal bulletin or posted on bulletin boards to stimulate people who are qualified
to join in applying. These are then made available to all employees via
newsletters. Unilever Economist, Unilever Sustainable Living Newsletter, and
other bulletins and memos can be seen as examples. Further recruitment is
made possible by the company's email and website. This approach is publicly
used, and employees who contribute to the company are given equal
opportunities to apply for attractive positions within the organization.
Using human resource management software the company stores skill
categories for each employee. This directory contains information about
education and training qualifications, academic qualifications, skills, techniques,
seniority, work history, and the capacities of employees. In a recruit, this is a
modern and fast method.
*External source
To begin with, human resource recruitment is primarily implemented from external
sources. Unilever organizes a series of recruitment activities, including the Unilever
Future Leaders Program UFLP (Formerly Management Trainee), U Fresh Program, with
different standards and targeting many kinds of students, with the goal of alluring
talented students. Both are recruitment activities for seniors who are about to graduate
or have recently graduated that are under two-year-experienced. UFLP requires English
skills and leadership, whereas UFresh requires basic English communication skills as
well as teamwork skills rather than administration. Unilever has selected excellent
candidates through job fairs for students like these to train brilliant trainee administrators
for its human resources and has a salary regime, scholarships, good benefits, and
focused courses at home and abroad for employees to improve their academic skills.
The company holds Job Fair Days at schools prior to each selection period (typically at
big and reputable universities such as Foreign Trade University, University of
Economics Ho Chi Minh City, Ho Chi Minh City University of Technology, etc.) to
introduce and orient students to the professions and jobs they will be undertaking at
Unilever. Career days are typically held between January and March. Because of the
past success of Unilever's recruitment programs, the annual career fair has caught
many people‘s attention, particularly final-year students. Students can also learn about
working opportunities at Unilever in addition to recruiting human resources at the
aforementioned career fairs. Furthermore, information about the company's recruitment
is disseminated on university forums (FTU, UEH, IU, HCMUT, etc.).
b) Selection
When Unilever posts job recruitment, it immediately piques the interest of many job
seekers. Annual selection activities (regularly twice a year) draw a large number of
people, and one of these activities is Unilever's selection chain. Typically, each
interviewee must go through six rounds, which include:
2. Treatment
Unilever is a transnational corporation in the field of consumer goods and cosmetics so
they have a very own corporate culture. Within the company, employees have a
professional and specialized working style just like in most developed countries in the
world. Therefore, Unilever pays great attention to people in the process of working,
especially the compensation regime. Each employee and rank has different
remuneration regimes, but there is still a basic common regime for all employees in the
company. Here are Unilever's main treatments:
Hard salary: every employee working in the company has a certain and fixed
salary, it is satisfactory to their position and any details about the salary and
bonus regime of employees in the company are kept confidential.
Working expenses: when employees have to travel for the company, the
company will bear all expenses for that business period such as train money,
hotel money, and food ... However, with each rank, the office of business travel
will have a different preferential regime. For example, for an ordinary
administrative employee traveling for business, the employee's accommodation
and travel diet are at the usual price. If something arises, the employee will take
it. Meanwhile, the director of the branch traveling for business will have a higher
mode such as staying in a good hotel, the price is not less than 500,000 VND /
night, traveling with the company's car and private driver.
Social insurance regime: the company will pay 17% social insurance for all
employees in the company and employees pay 6% of that insurance. In addition,
the company also buys AON's insurance entirely for employees and supports
insurance premiums for employees' relatives of about $100 per year.
Unemployment insurance: The company pays unemployment insurance for
employees to help employees can work with peace of mind.
Health care: all employees of the company are examined every 1 year and
vaccinated against flu and epidemics once a year.
Entertainment, tourism: employees of the company are organized by the
company to travel abroad or to high-end resorts in the country at least once a
year. In addition, the company regularly organizes team building and outside
activities for employees to help employees be friendly, understand each other
better and improve teamwork skills.
Employees in the company are given the company's goods every 2-3 months to
use. It also helps the company advertise its products through employees' relative.
Bonus: Employees in the company will be rewarded monthly if they meet the
sales targets set by the company. In addition, every year there is a review of
employees with excellent achievements and the highest achievers will receive
the prize, the value of the prize can be up to 50 million.
Development opportunities: Dynamic and competitive working environment to
develop together so there are many opportunities for promotion for employees.
At the same time, the company always encourages employees to work and
develop internally.
Training opportunities: Employees in the company will be regularly participating
in training courses organized by the company to help employees improve their
qualifications, and professional skills, and expand their knowledge. From there,
employees can develop their own careers.
The remuneration regime is one of the top concerns of the candidates.
Therefore, Unilever is very interested in this issue and has launched a very
attractive compensation regime to attract talented candidates.
2. Treatment
a) Achievements
Unilever has a comprehensive and attractive remuneration regime, taking care of
all aspects of the life of employees, from salaries, allowances, and daily
consumer goods to traveling around the world. As a result, talented employees
are retained by the company and have better contributions at work.
The remuneration regime is so attractive that it attracts the attention of even
employees who do not work for Unilever, which is one of the factors attracting
talent and promoting Unilever's image and position compared to other
competitors.
The purpose of the talent management policy is to ensure the achievement of the
organization's goals by identifying, attracting, developing, and retaining talent
throughout the organization.
Therefore, Unilever implemented policies to help them make the best use of their
employees' potential and developed systems to ensure the quality of their workers. In
addition, Unilever maintains a talent mechanism in its company with criteria for gender
and racial equality. Today, in addition to international integration, the business pays
more attention to and trains workers with language skills and creates conditions for all
workers to have access to English.
In addition, the company has top priorities and incentives for employees who are
interested in ideas aimed at creating great positive value.
A compensation policy is a set of instructions issued by a company regarding an
employee's pay, benefits, and incentives. There are many different types of
compensation, and each is governed by state laws and regulations, as well as company
culture and insurance policies. There are two types of compensation: financial and non-
financial.
Unilever Company has also developed an employee welfare policy based on the above
principles. This social insurance guarantees two types of benefits: financial and non-
financial. Financial benefits include basic to basic items such as salary, insurance, or
debt settlement. In addition, the non-financial benefits provided by Mabuchi are health
guarantees and material guarantees and are important for the families of employees.
Over time, working at Unilever, employees always feel comfortable and want to
dedicate themselves to creating more positive values for the organization.
CONCLUSION
After the above analysis of Joint Venture Unilever Company, I realized that the success
or failure of the company mostly depends on the employees. These are talents that
raise the value of the company to a higher level. Workers have many opportunities and
businesses must have policies to exploit, nurture and manage these people. In addition,
there should be welfare policies so that the workers feel comfortable and ready to give
their dedication to the organization. In addition, a company must respect the value that
employees create for the company, big or small. All of the above must be logically
compatible to create better values for the company, employers and employees.