BANKING ACADEMY OF VIETNAM
FACULTY OF BUSINESS ADMINISTRATION
THE HRM OF UNILEVER IN
VIETNAM
PRICIPLES OF MANAGEMENT
GROUP 2
K23CLC-QTA | BANKING ACADEMY
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
TABLE OF CONTENTS
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
A- INTRODUCTION
The world economy is growing, and the number of businesses there is also
starting to increase sharply. For a business to be oriented, good development needs
to ensure a lot of factors and human resource management is one of them. Human
resources have a great impact on the whole business, something that no one can
deny. Only when employees are properly assessed, assigned the right job, and
given the maximum conditions to complete the job, everyone can develop to the
best of their ability and work effectively.
Like every other company, people are Unilever's most valuable asset. The
company's policy is to always recruit the best employees and give them a worthy
compensation regime with opportunities to be trained at home, abroad, and in a
truly international working environment. In addition, the policy on human
resource management also has limitations in the process of Unilever's operations.
Therefore, we have chosen Unilever Vietnam to analyze human resource
management activities to see successes, and failures and come up with appropriate
solutions.
B- CONTENT
I- Analysis and evaluation of Unilever's HRM
1. Organization overview
1.1. History of formation and development
a. Unilever Group
Unilever is a multinational corporation specializing in food products,
hygiene for people, and personal care in the world. Unilever was formally formed
on January 1st, 1930, by the merger of the Lever Brothers Brothers ( Soap
manufacturing company in the UK) and Magarine Unie (Dutch margarine
company). The company's headquarters are now located in two places: London
(UK) and Rotterdam (Netherlands).
Upon founding the company, the company's leaders set out Unilever's
mission: "To add vitality to life”. And the vision is: Business development goes
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
hand in hand with enhancing the positive social impact and minimizing the impact
on the environment. Unilever currently owns more than 400 brands, operating in
more than 190 countries with more than 300 member companies, and 149,000
employees worldwide. Revenue in 2021 increased by 3.4% to 52. 4 billion euros.
And profit after tax in 2021 reached 6 billion Euros up 8.4% from a profit of 5.6
billion Euros in 2020.
b. Unilever Vietnam
Unilever entered the Vietnamese market in 1995, after nearly 3 decades in
the Vietnamese market, Unilever has made great strides. The head office in
Vietnam is located at 156, Nguyen Luong Bang, Tan Phu, District 7, Ho Chi Minh
City. Since the start of Unilever Vietnam has continuously strived to expand its
business, train, and develop human resources with nearly 120 distributors, 190,000
retailers, and 1,500 employees creating indirect jobs for 8,000 people with the best
working environment.
In The Vietnamese market Unilever is selling all three product lines
mentioned above with the following brands:
- The food product line for processing and eating: Knorr, Lipton, Wall
- Sanitary and personal care product line: Closeup, Lifebuoy, Dove, Lux, Pon's,
Rexona, P/S, Sunsilk.
Laundry line for clothes and utensils: Omo, Comfort, Viso, Sunlight.
1.2. Organizational structure
Although separated into two companies, there is still a unified executive
board. Shareholders who hold shares of NV or PLC receive the same dividend
from the company.
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
The ceramics board includes chairman Michael Treschow, CEO Paul
Polman, and CFO Jean Marc Huet.
In Vietnam after acquiring the capital contribution has become a
100% foreign-owned enterprise: Unilever Vietnam Limited Liability
Company.
2. The HRM of Unilever in Vietnam
2.1. Human Resources Planning
As a big company, Unilever itself is very strict in Human Resource
Planning. They care about the individual employees and departments. The HR
planning at Unilever is to first provide HR data and ideas, then strategic visioning
to predict future.
At Unilever, the HR team plans everything so that the outcomes and results
can be perceived before the plan is actually implemented. This makes the planning
more accurate and efficient; it also saves time and money.
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
Unilever aims to focus on building HR team with in-depth knowledge of
human resources, market expertise along with extensive knowledge of business as
well as all socio-economic aspects.
How Unilever Vietnam plans human resources: For Unilever Vietnam,
quality and quantity are always two parallel factors. The company always has a
commitment to participate from the heads of departments/departments. In which,
the HR department will play the role of connecting, being the catalyst and
implementing the process of human resource planning.
Specifically, there is a HR Planning committee consisting of representatives
of different departments. Accordingly, the HR Department always sits down with
representatives of other departments to exchange and discuss plans, needs,
capabilities... of employees and candidates in the future. The cross-talk of Unilever
Vietnam is one of the guidelines to help the Company's HR Planning always meet
business needs. Even new members are always fully shared about how they will be
invested and developed at the company, their responsibilities and roles for
individuals, teams and businesses.
New initiative: The company's strategy, performance indicators and
stakeholder needs are always aggregated and closely connected. This helps
businesses to be proactive about human resources for both the present and the
future.
Allocation of human resources: Accompanying Anpha Talks, Unilever
Vietnma has emphasized the role of human resources in the "new normal" after
Covid-19. The allocation of human resources needs to become flexible, balance
short-term and long-term planning, prioritize order to create the highest value for
the organization and people.
Predicting future: In fact, the leaders of Unilever Vietnam with their
vision, always ask strategic questions such as: What departments should the
company organize in the next 3-5 years? In addition, what policies will Unilever
Vietnam need to have to attract the best talents in the market so that they can
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
develop and retain them? Besides, the Unilever HR department is continuously
planning on the positions that need to be filled in order to keep the company
floating.
Assess Future Supply - Demand: If there is an imbalance between supply
and demand, Unilever Vietnam will plan more deeply in terms of recruitment,
training, retraining, labor reduction (early retirement/redundancy) or changes in
workforce utilization as will bring into equilibrium.
2.2. Recruitment and Selection
2.2.1. Recruitment
Unilever Vietnam's point of view is "Development through people", so the
company always cares about the interests of employees and is ready to support
them in all areas of work.
a. Internal recruiting
Firstly, notice of vacancies, they all sent to all employees in the organization
through an internal bulletin, via the internet or bulletin boards in the organization
to encourage people who are able to participate in applying, such as Unilever
Economist, Unilever Sustainable Living Newsletter, and other bulletins and
memos.
They also base on using skill categories are stored in the human resource
management software of enterprises. This directory includes information about
education and training qualifications, qualifications, skills, techniques, seniority,
work history, and employees' capabilities.
Internal employee referrals - an informal approach through the opening and
nomination of officers and employees to quickly discover qualified and capable
candidates for the job vacancies in a short time.
b. External recruiting
First of all, in order to attract talented students, Unilever organizes a series
of recruitment programs, including Unilever Future Leaders Program, Unilever
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
Fresh Program, with different criteria, targeting different students. Through job
fairs for students like these, the company has selected excellent candidates to train
brilliant trainee administrators for its human resources.
Besides, the company organizes Career Days at big and reputation schools to
introduce and orient students about the professions and jobs they will undertake in
Unilever. Therefore, it can be said that Unilever's recruitment human resources
process is very good and is supported and interested in a large number of people.
Unilever also has recruitment rounds when there is a shortage of human
resources. In addition, the company has posted recruitment information in
newspapers, job search forums such as Business Forum, on the company's website,
as well as on job search websites on the Internet.
2.2.2. Selection
Usually, each applicant must go through 6 rounds:
Diagram1. Unilever's selection process
Round 1: Application screening
In this stage, the candidates will be asked for basic information about
themselves as well as their strengths and weaknesses and the registration
department and the reason for choosing that department.
Round 2: Aptitude test
It can be online or at the office, you should prepare some accounting
knowledge in advance, finance, or GMAT; and refer to Big 4's recruitment tests at
Talent Q, Cubiks, Kenexa, CEB's SHL...
Round 3: Initial interview
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
CD training or HR manager will survey preliminarily. This round aims to
find out the candidate's personality, the candidate's understanding of the industry
overview, and the candidate's commitment to the company.
Round 4: Team presentation
This round uses to test the candidate's enthusiasm, ability to learn and
analyze. Candidates will be divided into groups; was given a market-related case
study of a distributor to survey customers; service quality of the distributor,
thereby offering solutions to increase sales for that distributor. After one week,
groups will present together. The judges are Branch Manager, CD Training and
Area Sales Managers
Round 5: Team discussion
In this round, candidates are divided by department and the different
department will have other cases. They have 15 minutes for personal working and
30 minutes for group working and then, present their solutions.
Round 6: Final interview
This is an opportunity for you to give your wishes and aspirations to develop
while working at Unilever. The branch manager can advise you on career paths at
the company.
2.3. Orientation, Training and Development
2.3.1. Orientation
Work environment
Unilever’s work environment is friendly, open, and professional. Senior
leaders and managers at Unilever always try to create conditions and opportunities
for employees to develop their potential and capacity. They always has attractive
remuneration for employees. Employees here have a lot of opportunities to work,
explore new areas to improve themselves.
Vision
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
Unilever’s vision is “to make sustainable living commonplace. We believe
this is the best long-term way for our business to grow.”
Their vision puts emphasis on sustainability, especially among consumers.
Three core components in Unilever’s vision includes: Commonplace sustainable
living, best long-term way and Business growth.
Mission
Unilever’s mission is “to add vitality to life. We meet every day needs for
nutrition, hygiene and personal care with brands that help people feel good, look
good and get more out of life.”
This mission underscores how the company satisfies customers in various
aspects of their lives. The significant components in Unilever’s mission statement
are Adding vitality to life; Meeting everyday needs for nutrition, hygiene, and
personal care; Helping people feel good, look good, and get more out of life.
2.3.2. Training and Development
A Graduate programme that ignites the leader in you
This two to three-year graduate program is a development experience
designed to ignite the Leader in You. Over this time, you will gain excellent
exposure through rotations within your function in our business and meaningful
interaction with Unilever leaders.
Duration: 2-3 years
Rotation: Every 6 months within the function, international experience,
exposure in a disruptive business model (such as Unilever International) and a
cross-function rotation in Customer Development for all UFLS.
Functions: Finance, Marketing, Human Resources
Unilever always attaches great importance to human resource development
as a qualitative breakthrough for long-term sustainable development. Unilever's
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
point of view is "Development through people", so the company always cares
about the interests of employees and is ready to support them in all areas of work.
Training and development methods
Methods
On-the-job training is delivered to employees while they perform their
regular jobs. Off-the-job techniques include lectures, special study, films,
television conferences or discussions, case studies, role playing, simulation,
programmed instruction, and laboratory training. Orientations are for new
employees.
Normally 3 types of methods that Unilever usually apply for training are:
- E learning process: Basically, E learning is an online training process.50%-
60% training conducted under this process. It can be both on the job and off
the job training. For example: Audio library, Video library.
- ILT: ILT-instructor-led training. It basically means interactive learning
technique. 20% training is conducted under this process.. It can be both on
the job and off the job training. For example: Video conference, focus group
discussion.
- Outside the country: 10%-20% training is conducted outside the country
where regional operations of Unilever take place. It is off the job training.
Training hours
In case of on the job, Training does not always occur in office hours. It
depends on the needs. Unilever maintains a flexible time schedule for training.On
an average, in one year Unilever allocates 1-1.5 months for training purposes.
Related Payment:
In Unilever, training is known as a Learning & development session. As
they prioritize training up to that level, they allocate a huge budget for training
purposes. This is not related to salary. They arrange a separate budget for that.
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
Types of Trainers
Basically, Unilever focuses on professional trainers who have best market
competency. They also hire other trainers, but they are very rare in numbers.
Trainers they provide such as: Internal trainers, Local trainer, and international
trainers
2.4. Performance Appraisal
In of Unilever’s Vietnam, all employees are involved in the job evaluation
process. This process helps employees develop skills, knowledge, and experience.
Department heads and team leaders must coordinate with the Strategic
Partnership Department to build a quality and effective human resource plan for
each department. core to the long-term goals of the corporation. Personnel in each
department need to have a clear understanding of the work, corporate culture and
colleagues, thereby easily exchanging links and cooperation, removing barriers at
work to easily achieve success. more purpose. Heads of departments and senior
management act as catalysts and advisors for employees to quickly adapt to the
new environment. In addition, this process also coordinates the setting of work
goals, performance evaluation and career development planning.
The performance appraisal process is not just a plan or an annual
performance review. This is an ongoing process that links year to year, helping
employees and management to plan and evaluate the employee's work process.
The role of the annual performance review meeting is to summarize the results of
an ongoing process throughout the year.
An important objective of improving personal performance is to enhance
the performance of the Company. Therefore, the performance evaluation process
must be built from the actual needs of the Company, focus on the priorities and
support the achievement of the goals of the Company, the department and the
individual.
2.5. Compensation
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2.5.1. Direct compensation
Overtime: Unilever's employees are allowed to take compensatory leave or
pay for overtime, payment in the following sections:
- 150% of the standard rate for working on normal working days
- 200% of the standard rate for working on a Sunday.
- 300% of the standard rate for working on public holidays.
Tet bonus: The employee will be rewarded with a minimum salary of one
month before tax, paid in the salary period of December before Tet.
Achievement Bonus: Depending on the employment contract, the employee
will be able to enjoy a performance bonus. The employee with excellent
performance and the highest performer will receive the award, the prize value
can be up to 50 million.
2.5.2. Indirect compensation:
Allowances:
Motorbike maintenance allowance: for petrol and oil, car deposit for
employees who regularly use motorbikes on business trips for the company.
Long-distance travel allowance: When an employee is required to roam or
move to another province for the job, the company will bear all the costs for
the trip such as transportation, accommodation, meals and drinks and other
expenses.
Severance allowance: for employees who quit, retire or are legally dismissed
by the company.
Maternity allowance: A female employee who takes 3 days of maternity
leave will pay 75% of her pre-tax salary deducted from the social insurance
fund. In addition, female employees are entitled to 4 months paid maternity
leave (or 6 months if working in hazardous environments).
Benefits:
Health care: all employees of the company are given a general medical
check-up once a year and are vaccinated against colds and epidemics once a
year. Moreover, to ensure the physical and mental health of its employees,
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Unilever has built a gym with modern equipment, monumental scale,
professional coach.
Social insurance regime: the company will pay 17% social insurance for all
employees in the company and employees pay 6% of that insurance.
Moreover, the company also buys completely AON's insurance for its
employees and supports the employee's relative insurance premium for
about $ 100 / year.
Unemployment insurance: the company pays unemployment insurance for
employees to help employees feel secure to work.
2.5.3. Non-financial compensation
Opportunities for development: a dynamic and competitive working
environment develops together, so there are many promotion opportunities
for employees. At the same time, the company always encourages
employees to work and develop internally.
Training opportunities: employees in the company will regularly participate
in training courses organized by the company to help employees improve
their qualifications, professional skills, and expand their knowledge. From
there, employees can develop their own careers.
Entertainment and travel: the company's staff is organized by the company
for overseas travel or high-end resorts in the country at least once a year. In
addition, the company also regularly organizes team building and outside
activities for employees to help employees be friendly, know each other
better and improve team working skills.
II- The successes and limitations of Unilever’s HRM
1. Successes
The "Excellent Enterprise" two consecutive years 2017 and 2018
In 2018, Unilever Vietnam was honored to be voted "Best Enterprise" in
Group A "Excellent HR Strategy" at Vietnam HR Awards for the second
consecutive season. This award recognizes Unilever Vietnam for its outstanding
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
and excellent human resource management policy, which positively contributes to
the business results of the enterprise and improve employees' quality of life and
raise the quality of HR for Vietnam in general.
In addition to the honor of receiving the best award in Group A, Unilever
Vietnam also received 3 awards in 3 categories out of 5 categories including:
Excellent HR strategy, Effective human resource planning and recruitment,
Effective talent management.
It is the result of optimal human resource policies, advanced training
programs that catch up with the new trends of the times. These policies and
programs aim to equip employees with thinking and knowledge, to help them be
ready to accept changes in society and the market, at the same time, creating a
friendly, dynamic, modern, and increasingly flexible working environment for
employees to unleash their creativity and contribution.
The best working environment in Asia
In 2019, Unilever Vietnam was honored as one of the companies with the
best working environment in Asia, in the Asia's Best Workplace award by HR Asia
Magazine. This is an annual award organized by the prestigious HR Asia Magazine
- a magazine for senior HR professionals in Asia. This result is announced after a
rigorous evaluation process of human resources experts, independent
organizations, academics, journalists, at the same time, based on the results of an
internal survey conducted previously at nearly 300 companies and enterprises in
Vietnam according to independent standards throughout Asia.
2. Limitations
Recruitment and Selection Activities
The candidates must pass away tricky and stressful processes in a long time
before being one part of the Unilever team. In addition, after going through all the
rounds and being selected, the probationary process has too many challenges. The
salary is competitive, but it is not worth it compared to the time and effort spent.
Therefore, there have been cases where trainee administrators could not follow the
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
same program and were offered jobs by other companies with a more reasonable
working regime and remuneration. Moreover, company have paid a lot of money
as well as using more time for the Recruitment and Selection process.
Orientation, Training and Development activities
Unilever's training and development programs focus too much on
professional training and job-related skills such as management skills and sales
skills. This leads to some limitations: Training & Skill Development Cost Time
and Money; Sparing Extra time for Training can be Stressful for Workers;
Training Sessions can be Complicated; Lack of Interest; Switching to a New Job,
…
Compensation and Benefits activities
The remuneration regime, especially the bonus scheme, is attractive, but the
requirements and targets are often very high, requiring employees to devote
themselves fully and hardly have enough time for other activities. Especially for
sales staff, to achieve the sales target set by the company, that employee must work
very hard. This easily leads to an assessment of Unilever's human resource
management method according to the capitalist method, which means that high
welfare means "exploitation" of employees' energy and brain.
III- Recommendations
In Recruitment and Selection process, Unilever Vietnam should apply the
modern technique on hiring people to short time as much as they could like the
Unilever global, recently the company applies Al and Bigdata to manage human
resource. To be specific, it can reduce for 70.000 hours interview and processing
portfolio of candidates. Moreover, the company should narrow the process to 4
rounds, but still hold the core value as well as the quality of the section process to
reduce the complicated of the process. Company should use robot or modern
technology to analyze based on the criteria of the company that will give objective
and exact point of views to the candidates.
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In Training and Development activities, company should find out more
about the needs of employees, train what they lack to avoid wasting money and
time. Training sessions should reduce complexity, help employees feel
comfortable, not put pressure on them.
In Compensation and Benefits activities, company should reduce the
requirements to achieve the remuneration regime because sometimes, difficult jobs
will make employees feel suffocated, leading to reduced work efficiency.
Remuneration with appropriate requirements will encourage employees to work
more effectively.
C- CONCLUSION
To become a large company in the world today, Unilever's human resource
management is always a top priority. Human resource management has a
significant influence on the operation and development of an enterprise. It is also
because of this that human resource management is likened to the art of using
people. Knowing how to effectively manage human resources is the key to opening
the door to the company's development. In addition to the successes brought by
human resource management to Unilever, there are still difficulties, so Unilever
Vietnam needs to catch up in time to offer reasonable solutions to help businesses
develop more.
THE HRM OF UNILEVER IN VIETNAM 08/06/2022
D- REFERENCES
1.
