Designing an Optimal Reward Strategy for Unilever Infotech

This report focuses on designing an optimal reward strategy and policy for Unilever Infotech, a new division of Unilever, a multinational FMCG company. The report begins by outlining the elements of a successful reward strategy, including base and variable pay, benefits, learning and development, and organizational culture. It emphasizes the importance of aligning the reward strategy with the organization's strategic goals, which include creating a sustainable business model. The report then analyzes Unilever's strategic goals and performance management approaches, highlighting the need for continuous improvement and employee empowerment. The core of the report centers on the specific requirements for Unilever Infotech, focusing on customer-centric outcomes and the parameters of time, cost, quality, and quantity. A detailed reward strategy is proposed, including meritocracy-based promotions and employee empowerment. Finally, the report outlines a remuneration policy that supports these strategies and emphasizes the importance of linking individual and collective performance to reward outcomes.

Running head: REMUNERATION STRATEGY
REMUNERATION STRATEGY
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................2
Elements of reward strategy.......................................................................................................2
Requirement of the necessary information to implement the reward strategy...........................3
Kind of company and context of operation................................................................................4
Strategic goals of Unilever.........................................................................................................5
Strategic performance management...........................................................................................5
New division..............................................................................................................................6
Required outcomes of Unilever Infotech...................................................................................6
Parameters required for delivering the outcome........................................................................7
Reward strategy for Unilever Infotech.......................................................................................7
Remuneration policy..................................................................................................................8
Matching up with the reward strategy........................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
Unilever limited is a British-Dutch company that is very well known for producing
Fast Movie Consumer Goods (FMCG) for the consumers present across the globe. This
multinational company has a presence in about 190 countries in the world and is one of the
oldest MNCs in the world. The company has its headquarters in London, England and in
Rotterdam, Netherlands. The organization owns over more than 400 brands and is the largest
producer of soap in the world (Unilever Australia, 2020).
The organization believes in making a sustainable living for its customers. Unilever limited
recognizes that growth at the expense of the environment is not acceptable, and this will lead
to a commercial instability. The approach of the company is to have a brighter future that
provides and does better business and follows a sustainable path for growth. Besides, for the
employees, the organization has developed a reward structure that is based on the
performance of the employees. This helps the organization to keep the employees motivated
as it helps in delivering results that are based on values (Unilever Australia, 2020).
This report discusses about the elements of a reward strategy, strategic goals of the company,
approaches for optimization of the performance, the new division of the company and hoe the
plan matches the strategy for a new division.
Aim: The aim of this report is to design an optimal reward strategy and a policy to match it
for the new division/sister company of Unilever limited based on the organization's strategic
goals.
Elements of reward strategy
Reward strategy of any organization is responsible for describing how the reward
policies, practices and processes are used by the organization to support the delivery of the

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strategy of the business (Armstrong and Brown 2006). For any reward strategy to be
successful, there must be four basic ingredients added to it. And these elements are:
1. Base and variable pay
2. Pension and benefits
3. Learning and development
4. Organizational culture.
The first element is based on the monetary factor, and this factor needs to be aligned with
the expectations of the market (Brown 2014). When the organization offering a base and a
variable pay, it must be made sure that they are fair and are in line with the market
expectations.
The second element is also based on monetary terms and covers the total aspect of
rewards, benefits and trigger individuals to work in the company (Tsede and Kutin 2013).
There is a flexibility in the element when one is working for a multinational company.
The third element is responsible for focusing on the career aspirations of the
individual. There is a vital link in associating learning and development with the reward offer
as it will act as an integral part of the value proposition of the employee (Armstrong and
Murlis 2007).
The fourth element of the reward strategy deals with the offering that is provided by
the organization despite of the money, learning and development (Schlechter, Hung and
Bussin 2014). This includes the interaction with people and management practice that is
commonly followed.

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Requirement of the necessary information to implement the reward
strategy
When a new division or a sister company implements its reward strategy, there are
few things that must be kept in mind in order to have a smooth functioning of the strategy and
better performance of the employees and the organization (Armstrong 2006).
It must be kept in mind always that a reward strategy must be developed in such a way that it
helps in maximizing the values and must carry the right message that is consistent with the
organization (Foxon et al. 2005). It must also be kept in mind that the reward strategy
developed must consider the aim and culture of the organization. It is often observed that the
rewards given by the organization can have a very strong impact on the employees and also
carries a strong message about the things that are important which includes log service and
individual over team performance (Jones et al. 2017). The current reward practice must be
aligned with the strategy of the business. Only then it will help the organization to ensure that
the reward strategy chosen for the division company is relevant, effective and updated. This
would help in influencing people and te reward action made could make a difference
(Edwards, Battisti and Neely 2004).
Kind of company and context of operation
Unilever is a multinational corporation and is one of the oldest and largest companies
in the world, owning more than 400 brands and having branches across 140 countries of the
globe. The company is specialized in producing FMCG products, and the consumer selling
goods includes foods, beverages, personal care range and cleaning agents (Unilever Australia,
2020). The legal structure followed by this multination is dual-listed in structure, which
means having a list of any security on two or more than two exchanges that are different. This
dual listed company consists of Unilever PLC in London and Unilever NV in Rotterdam.

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About half of the raw materials of this multinational corporation is based on the forestry and
agricultural products. The total number of employees working in this MNC is around 15,5000
as in 2019 (Unilever Australia, 2020).
Strategic goals of Unilever
Strategic goals of any organization are created for the identification of the intended
accomplishment of the strategies of a business (Mccann III et al. 2001). These strategies help
the organization to have a direct identification of the outcomes associated with the efforts of
the business (Spyropoulou et al. 2018).
The strategic goal of Unilever aims at creating a change across the value chain of the
business starting from the business to the sourcing and then to the way of how the customers
use and dispose of the products of the company (Unilever Australia, 2020). The strategic goal
of the company is responsible and embraces the priorities that they have analyzed through the
annual materiality analysis.
There are about fifty or more social and environmental targets that have been included
in the strategy of the organization. The main goal of the organization includes the
development of the three most important things that is based on the health and wellbeing,
livelihoods that are enhanced and the environment and protection of the environment.
Strategic performance management
Performance management and ensuring the process of performance of an organization
helps in developing paths for the organization towards the accomplishment of the goals and
objectives set by an organization (Yusi and Idris 2018). This becomes necessary as it helps in
making efficient movements towards the attainment of the pre-determined goals set.

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Performance management is a continuous process that measures and evaluates the
outcomes and then compares the outcomes with the planned one (Bergh et al. 2016). The
emphasis is on the need for continuous improvisation of maintaining a strong communication
network between the managerial personnel's and subordinates. This process helps and acts as
a link between the strategies of the organization and the goals by defining the performance of
the employees (Punt et al. 2016).
The approaches made for the performance optimization of the organization can be
made applicable on a global scale, and the basic idea that revolves is the encouragement of
the lower level employees to make decisions that are like the executives of the top level. This
helps the organization to build a trust with the employees and also helps in the retention of
talented employees that the organization has. The level of work is assigned based on the
payment that is followed in the segments of different markets (Burgelman et al. 2018). If
there is a quality work presented by the employee, then he/she gets an appraisal and is
promoted to work according to the potential.
New division
Unilever can try and make a strong hold in the field of Information Technology as
well. The sister company taken here is Unilever Infotech. Unilever Infotech has the potential
to be the leading global services and solution provider in technology, and later this business
could also be led as a consulting firm for the business and technology simultaneously.
The company can help in providing services and solutions that are user-friendly, and
the clients could be helped to succeed and be future ready. Unilever Infotech aims at bringing
all the digital expertise together and have specific alliances to leverage expertise based on the
domain from the parent business. Unilever Infotech has the potential to provide solutions

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based on technology that is related to the banking and the financial services, healthcare, and
consumer goods.
Required outcomes of Unilever Infotech
The business of Unilever Infotech is a customer-centric one, and it believes in
delivering value expansion initiatives to the customers present and delight them with the
services they provide. This will develop a healthy relationship between the company and the
customers, and this will be the key to the success of the company.
Parameters required for delivering the outcome
The company focuses on four parameters that will help to define a way to the
organization for delivering the above mentioned outcome. The four parameters include time,
cost, quality and quantity.
There must be a very strong relationship between the budget given, and the deadline
of the project given as this will help the business understand the time points that are critical,
and that must be taken into consideration.
In the same way, cost plays a very significant as well as a crucial role in any business.
There must be a knowledge of how much money to be raised as a fund for the business, and it
must be made very clear that the income raised must consider all the financial factors that
affect the project undertaken.
Quality and quantity
Awareness of the quality parameters in the business is very important as it helps in
planning stages in a project. Similarly, the quantity of the business must be a focused one and
monitoring of main factors must include the information quality that is being given.

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Reward strategy for Unilever Infotech
The employees of the organization are empowered to make decisions ad are also
allowed to give new ideas or suggestions they have to make that could help the organization
in the long-run. This division has tried to bring out rewards and recognition programs that are
unique for the employees. The promotion of the employees based on the meritocracy can be
implied in the business that would recognize the efforts made by each and every employee
and their dedication at work. Awarding full ownership of the responsibility to the employees
can also be done to provide opportunities to the employees to learn and allow them having a
personal development.
Remuneration policy
The policy of Unilever Infotech includes:
1. Encourage of meritocracy and support to the remuneration practices.
2. Leveraging the remuneration to enhance the performance and then link it with the
individual and collective performance outcomes.
3. To ensure that the remuneration made is a market-leader and taken in the competitive
context related to business.
Matching up with the reward strategy
The plan made for the business can be matched with the strategies only if the target is
clear and visible which also means that the matrices used for performance by the company
must always be clear and visible to the employees at all the time at their dashboards. The
employees must be able to see the connection they have with the work and the overall
objectives of the organization. It must always be kept in mind that reward has a major role to
play in having a demonstration of the values of the organization.

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Conclusion
Thus, from the above discussion, it can be concluded that reward strategies of any
organization help in using the policies, procedures and practices that are related to the
rewards and that support the delivery of the strategies in business. Having a good reward
system helps the organization to keep its employees motivated and directed towards the work.
The goals set are achieved easily if the employees are motivated, and this process also helps
in the retention of the talented employees and helps the organization to maintain its
sustainability.

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