HINDUSTAN UNILEVER LTD.

Case Solution: Meeting Employee

Expectations

Team Members:
Anjan Ganguly M2014HRM019
Avinash Singh M2014HRM010
Mehul Bhati M2014HRM019
Srivastav Iyer M2014HRM052
Tushar Gupta M2014HRM057

Brief About Case:

HUL is a market leader in Indian FMCG sector. It is a subsidiary of Unilever Ltd. The case
brings about the genuine concern that the company might be losing its position as the "dream
employer" for graduates from the top Indian business schools from which it recruits its
management personnel. The shifting demographic profile of employees and their changing
expectations have already resulted in changes in the company's employment model. These
include on-the-job training and classroom and e-learning program facilities at all levels of the
organization and at all stages of one's career; mentoring by senior management;
communication of vision and goals throughout the company, especially through regular
meetings with the CEO; a focus on corporate social responsibility; and an emphasis on worklife balance, such as offering sabbaticals and providing health and recreation facilities at the
new headquarters. While the company has changed its traditional employment value
proposition, in a highly competitive and talent-scarce job market, can it continue to be
relevant in order to attract and retain the best talent in the country?
1. What are the typical expectations that an employee has from any corporate
organization?

Policies and Processes (Tangible on the Paper facts)

Compensation
Flexible Working Hours
Work-Life Balance
Career Growth
Organization Culture
Challenging work Assignments
Learning Opportunities
Job Security
Better Location

Psychological Contract (Intangible Touch Points)

Interaction with Leaders
Feedback and expectation management
Job (EVP Enriching, fulfilling and challenging)

**Psychological Contract refers to often unacknowledged and unspoken

expectations. These are part of the psychological contract. The psychological contract is
an unwritten agreement that sets out what employers expect from employees and what
employees expect from employers. In practice most psychological contracts are majorly
between managers and their direct reports and at times organization as whole.
The list of major factors established in the report by linked in 2015 report on Talent trend
are as mentioned below:
Key Highlights:
Compensation tops the list
Though compensation is highest look for aspect but in specific countries work-life
balance, Professional development and opportunity for advancement lead.
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The above point suggest better branding in these aspects can give opportunity to
play around compensation than it being considered non-negotiable in past.

Source: Linked in Report on Talent Trends 2015

2. In the context of the HR practices followed at Unilever, are leaders born or made?
In the context of HUL, as per the case there are references to the scenarios which point to the
fact that HUL had the philosophy of making leaders. As the case states, HUL has been known
as Leadership churning machinery. With around 440 CEOs in different companies of India
who have at the some point of time worked for HUL, it sure was a Leadership making
factory.
Later in the case, there are references to its Leadership development program. As the case
states, Leadership development was part of HUL culture and 90% of their top leadership was
groomed internally. It had a Business leadership training program that was 15 to 18-months
long and exposed graduates from top colleges to various aspects of marketing and sales
including a rural stint. Not only this, the trainee in the BLT program was assigned a coach, a
mentor and a tutor, all at three different levels of hierarchy. This mentoring, coaching and
tutoring was taken seriously and reflected on the appraisal processes of all the stakeholders
involved. HUL has a performance versus potential tool to differentiate between its talent
pools. Known as Leadership Differentiation Tool it helped HUL to identify High Performers
and sustained High Performers and helped them to groom such talent for future roles.
Not only this, the HUL leadership invested 30-40% of their time in grooming and mentoring
leaders for future with the philosophy that one needs to groom few people who can take their
job today and few people who would be ready to take on the role in next 2-3 years and few in
next 5-7 years.
In the light of these facts one can say that in context of HUL, Leaders are made.
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3. How did HUL successfully manage to become a company in tune with the changing
needs of potential recruits?
The period between 2001 and 2004 showed a marked decrease in the growth of HUL and
with it the attrition of some of its key leaders. In 2007 HUL dropped to the position of 14
from being a leader for over two decades in the ranking of the most preferred employer,
thereby leading to an investigation as to the changing needs of the newer generation of
management graduates. HUL now faced competition from the service sector which became a
top employer of choice for the management graduates. Employer value proposition
completely changed in the period. Therefore the traditional model of HUL now failed
because the employees now looked for an urban lifestyle, where the children were exposed to
better education, medical care very early in their career.
Nair, the executive director, HR of HUL, identified some of the core needs of the newer
generation employees. They were:
1. A job that was both exciting and could be viewed as making a difference to the
stakeholder, society and the environment directly.
2. A career that would help them both personally and professionally and also the future
of the company where they were investing their time and effort.
3. A responsible and caring work culture that would be sensitive to their needs and
welfare.
4. Opportunities to get their performances distinguished by rewards and recognitions and
recognize their special performances.
5. Work-life balance.
Once the needs of the new generation were identified HUL focussed on implementing them
throughout the organization. This led to the revamp of employer value proposition in the
company in the following areas:
1. Career Path: The organization structure was flattened requiring only 14 years to
achieve a senior management position which previously took 16-18 years. Adding to
this was the opportunities of a global experience early on in their career. (13% served
Globally in 2001)
2. Compensation: Changes in compensation were made by increasing the variable
component of their salaries (by over 100%), thereby opening the door to performance
and rewards, decided by the performance of the company, team and individual
performances.
3.

Increasing responsibility: This became the USP of HUL and therefore attracted
young talent into the company. Management trainees with an experience of 15 months
were given the responsibility of the market of a few million rupees.

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4. Training and Development: This was another USP of HUL where the differentiation
of them being leaders created a culture of competitiveness and the idea of building
leadership from within. Huge stress was given to cascading the system of leadership
development right down to the front line managers.
A 15-18 month BLT (Building Leadership Training) program was developed that had
phases of training in particular domains (sales, marketing, HR, technical commercial
and IT) and also a rural stint of 4 weeks to know their 250 million rural customers
very closely.
5. Mentoring: This was a huge development in the HUL family. Tutors, Mentors and
Coaches were appointed as their immediate manager, Management Committee
Manager and a senior manager and were given the responsibility to contribute to their
learning and development. Even their individual appraisals were linked to the
performances of the trainee. This led to the leaders contributing almost 30-40% of
their time in grooming young managers. This led to the development of an intense
succession plan while at the same time giving the managers the personal and
professional development they had hoped for. Moreover the management graduates
were also given the opportunities to interact with the CEO himself and share their
ideas and views on the policies in HUL.
6. Performance Measurement: This was a tool to reflect what the company values. HUL
had a two pronged approach towards PMS. One way is regarding the targets achieved,
while the other caters to the 6 standards of leadership called GREATB towards the
consumers, society and related issues. This in a way proved to be a marker to valuing
the needs of the employee aspirations in contributing towards the society environment
and also towards the performance of HUL itself.
7. Work Life Balance: HUL focussed heavily on maintain the work life balance by
providing them career breaks, sabbaticals and providing them a leave of almost 5
years for personal reasons. Moreover policies were developed regarding work-fromhome at least once in a week and no working hours after 8:30 pm so that they could
spend time with their families. Moreover various facilities of physical fitness and
recreational activities were provided by including them as a part of the ergonomics in
the office.
8. CSR activities: This also became a part of the employee value proposition where the
employees were provided the opportunity to contribute to the society and also
bringing them closer to their customers.
These policies were very carefully developed so that they reflected exactly what potential
employees needed in the present context. Moreover proper implementation of the policies
by the top management ensured that HUL retained its efforts to maintain its brand among
present and potential employees. These major revamp of measures proved very effective
and helped HUL in more ways than one to sustain its brand among the fierce competition
it faces from the VUCA world of todays business.
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4. What approach is required for managers to become successful in the changing

scenario in emerging economies?

There are following approaches which Managers can do to become successful in changing
scenario in emerging economies:

Trust
Resilience

Coaching

Sensible
plan

Building

Forcing
Clarity

Follow through

Networking

Managing
Uncertainty

Seeing
Big
picture

1. Personal resilience
In cost-reduction initiatives, managers lose valued colleagues and team members and
have to learn quickly how to work with fewer people and resources. Providing support
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to colleagues, peers and senior managers, and routes for line managers to get things
off their chest is an important part of keeping them effective through major change.
2. Trust-building
The speed of change is normally directly proportional to the level of trust people have
in their line managers. People look to their manager for information on how a change
is going to affect them. They are less likely to trust a big leadership presentation about
the need for change unless this is reflected consistently in line manager priorities.
3. Networking
Building networks of trust with other line managers is essential to enable line
managers to support themselves and to implement the details of change effectively.
These networks can help bring problems to the surface earlier.
4. Coaching
Managers need coaching skills to deal with the individuals who are struggling with
change and they need to understand that people react to change in different ways.
Line managers also need to recognise their own reactions to change and to be coached
to ensure they maintain personal resilience.
5. Forcing clarity
When the details of the change are worked out, leaders need line managers who will
help to shape the change and work out the implications of different ideas. While the
ability to deal with uncertainty is an important capability, it is better to force clarity as
early as possible.
6. Managing others uncertainty
Most resistance to change is resistance to uncertainty, and managers that force clarity
help staff cope with change. However, some uncertainties will inevitably remain. The
best line managers act as strong leaders, explaining why the uncertainty is necessary,
what action is being taken and when it will be resolved. They also coach people
sensitively to help them handle the uncertainty well and know how to spot when an
individual may be entering a crisis.
7. Organisation
Creating a sensible plan, thinking through the details of how things will work and
then delivering in line with the plan is a great driver of confidence.
8. Follow-through
The best line managers only start initiatives they can see through to the end, and they
track change progress in the same robust way they track operational business
performance. Poor line managers never say no to initiatives and just wait for leaders
to run out of steam in following through.
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9. Think outside the box.

Managers read widely, and dont confine one to own area of expertise. They try to
see links between apparently separate and diverse elements in your life and
experience.
10. Accept uncertainty and be optimistic.
Life is inherently uncertain, so dont waste your energy trying to predict the future. Of
all the possible outcomes, focus on the most positive one. This is not to be a
Pollyanna, but to accept that if you respond well and work to the best of your ability,
a good outcome is as likely as any other. Dont waste your energy being negative.
11. See the big picture.
Change is inevitable, but if you take a birds-eye-view of the landscape, the change
wont be so disorientating and you will keep perspective at all times.

5. How can HUL continue to be a dream employer?

Figure 1 Drivers of Attraction in Work

Figure 2 Drivers of Attraction in Rewards

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Figure 3 Drivers of Attraction in Work Environment

Figure 4 Drivers of Attraction in Opportunities

With a changing demographic the demands of the generation Y are also changing. HUL must work on
restructuring its EVP. It is important to understand what does the new generation of employees
desire. Based on research published by the Corporate Leadership Council in 2014 the following
highlights may be drawn.
Work-life balance, Innovation and Business Travel are some of the key focus areas of the employees.
Surprisingly compensation is not such a high priority. So is a collegial work environment. However
manager quality is very essential along with ample development opportunities. Of highest
importance is the Organization Growth Rate, presumably the rate at which one grows within the
organization.
Clearly from the data given in the case HUL has some of the best practices in employee management
as far as India and the FMCG sector are concerned. Exhibit 1 is a testament to this fact. However
there are a few programmes that HUL may initiate to continue to remain a dream employer despite
chaining aspirations. These are
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1. Redesign the Employee Value Proposition (EVP)

Figure 5 the EVP Mismatch

To successfully deliver an EVP, HUL must first base the EVP on attributes the prospective employees
prioritizes. In general, however, misalignment exists between what the market preferences and
organizations EVPs. One cause of this misalignment is a general disconnect between what the
market prefers and what HR believes the market prefers. Organizations can construct the EVP from a
wide array of attributes, requiring it to prioritize some over others. Unfortunately, during this
construction, HR tends to overestimate the importance of people while underestimating the
importance of rewards, opportunities, and the nature of employees work. Based on the insights
from changing employee needs HUL must evaluate its current EVP and update it.

2. Hire widely
But restricting itself to premier tier 1 B-schools HUL is denying it self the talent available in 2nd tier
reputed B-Schools like IITs. As HUL already has a good training plan HUL can benefit from hiring
widely.

3. Include short-term international stints

Clearly opportunities abroad are a prized perk. HUL may leverage its wide base, and grant a shortterm abroad stint even in the training phase. Moreover HUL India has been a fertile ground for
talent for Unilever worldwide.

4. Digital Brand Building

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Social media is increasingly becoming an avenue for communicating with prospective employees.
HUL must focus on building an engaging relationship online.

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