Compensation and Benefits Strategies of Unilever

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Author Note

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Table of Content
1 Introduction.............................................................................................................................2
2 Background to the organization-.............................................................................................2
3. Rate of pays for new hires determined and aligned with existing employee ensure internal
equity..........................................................................................................................................3
4. Processes Unilever uses to ensure their compensation is aligned with market place............7
5. Type of benefits do employees receive for working with Unilever.......................................9
6. Compensation program presented with Likart scale............................................................10
7. Recommendation..................................................................................................................11
References................................................................................................................................14

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1 Introduction
This assignment provides an in-depth understanding on the compensation and benefits
for employees that an organization design. In order to perform the analysis with real world
facts and findings, assignment considers compensation and employee benefits structure of
Unilever- an FMCG firm running operation in global environment. The major purpose of the
report is derive a comprehensible understanding about employee benefits and compensation
strategies that industry or the organization designs for the workforce. The importance of
employee compensation and benefits lies in the fact that in order to hire and retain skilled and
talented people, employer or the organization must provide required benefits or leverage
employee benefit package to attract and retain the best candidates. However, due to market
dynamics and changing demands, this compensation package could differ on the basis of the
industry and organization’s size and structure. Thus, taking this fact into the consideration,
this report discusses employee compensation and benefits packages of Unilever. Report
proceeds with providing a detailed background on Unilever and then rates of pays of new
hires are discussed to learn how it is aligned with existing employees to ensure internal
equity. Likewise, the report also discusses the techniques that Unilever uses to ensure its
compensation is aligned with the market place or the industry.
2 Background to the organization-
Unilever is a globally leading fast moving consumer goods organization producing
more than 400 brands with highest impact on people’s life (Unilever 2018). The fundamental
of Unilever’s business model is that it believes profitable growth need to be responsible
growth. Unilever developed a broad team for its extending business functions. The
organization mainly manufactures FMCG products but to run its fundamental operation, its
team is divided into different functions namely marketing, customer development, human

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resource, research and development, finance, information technology and several other
functional department.
Human resource team contributes to development of a better workforce by attracting new
talents, developing and retaining skilled candidates as well as partnering with highly
experienced professionals having knowledge about open economy. Nazarova (2015)
commented that corporate structure of Unilever helps its business to ensure proper support
for the innovation of product and global exposure of the business. It is particularly noted that
Unilever has a product type divisional organisational structure which is divided into three
basic components namely personal care products as well as home care products.
As discussed above, since Unilever has a variety of departments for running its core
operation, types of employees could differ on the basis of the department the individuals are
working in. For example, individuals having skills regarding the information technology are
working in IT department, while people having the skills of people management are working
under Human Resource department. According to the annual report published in the last, the
total number of employees presently working in the organisation is 16,500 (Unilever 2018)
Unilever is performing its operation in multiple global locations with the inclusion of Europe,
America and Asia but it has a growing dominance over Asian market due to limited number
of competitors and their size of business. The overall employee data figure indicates that
almost 47% of its managers are female employees.
3. Rate of pays for new hires determined and aligned with existing
employee ensure internal equity
As put forward by Tepic et al. (2013) motivated and engaged workforce is mandatory
workforce requirement which would help to achieve Unilever’s growth ambition. So, fair
compensation framework of Unilever remain crucial to its business. Pant & Ramachandran