1.Four demographic changes
Demographic changes play an active role in Unilever. The demographic changes have a direct impact on human resource management in the world. The home country of Unilever is United Kingdom and there are some demographic changes occur in recent years. The demographic changes have significant impact on the business and operational strategies of Unilever. Changed Demographic factors have significant impact on the companies and their business operations (Price, 2007). It is observed that there are enormous demographic changes in the United Kingdom. The four demographic changes have been discussed below.
New generation:
United Kingdom is experiencing social and demographic changes that may create challenges for the government and business. The country is facing changes in terms of growing new generation. The population is growing fast. In UK, there will be 850 million new workers to the personnel by 2050. The working age population growth is slowing down in the country. Young people have potential to maximize the economy of the country.
Women in work:
Now, it is observed that women are joining workforce. The country is facing demographic changes due to increased number of women in the businesses. There is the diverse workforce that is the main reason of strength for the businesses. For instance, Fortune 500 companies have higher demonstration of female board members and the companies have good outcomes in terms of return on invested capital, return of equity, and return on sales. It is found that companies with more women in the workforce are 15% more advantageous. Social and demographic changes also support superior female contribution.
Ageing populations:
There are the demographic changes in the country in terms of ageing populations. It is one of the significant demographic changes in the organization that affects long term growth and success. The entire regions in the country have seen an ageing population. There is the significant impact of ageing population on the businesses. The Ageing population is decreasing in the workforce. For instance, if there are nine people of working age to sustain aged person then it is expected that by 2050, than number will be more than four people in the organization. In UK, the decline in the working age people is particularly sharp. In order to address this shortfall, there is the need of greater workforce including two groups i.e. women and elderly themselves (Burgess-Wilkerson, 2008).
Increasing population:
Globalization is another demographic change that can be seen in the country. The rapidity of change depends on sustainability across various regions. The population of the country is increasing continuously and is set to twice by 2050. The developments have implications both globally and locally. Country need to execute some strategies to deal with the demographic changes. In the country, sustaining an ageing population will need greater contribution of labor force from women and elderly. The younger population is major opportunity in the country but there is the need of correct strategy to enhance the advantages of this demographic change. More young people are beneficial for the country if sufficient jobs are created for them (Bratton & Gold, 2012).
Factors driving demographic changes
There are soma factors which are the cause the cause of demographic changes in the country. Demographic changes of new generation and ageing population affect by the age factor as people retire from their job and are not able to continue the work. Age factor impacts on the working efficiency and capacity of the employees. In the country, changing the conditions of labor market is also the factor affecting the ageing population. Further, innovation and technologies are the factors driving the globalization in the country. Technological innovations are the key factors for the globalization. Technology innovation is primary factor to drive globalization. The firm can take several benefits of technology by expanding and exploring business activities globally. The firm has been able to manage, standardize, and reproduce their food across the world. In addition, development of transportation system is another main driver of globalization (Gatewood, Feild, and Barrick, 2015).
Importance of role of HR department and alignment with business strategy
Unilever has its brand image in the market because of its people. Hr department is considered as the core department and playing an important role in shaping the business strategy. In the huge and varied culture, there is the range of skills and goals for the best use. Employees of Unilever includes or world class professionals. The right systems are placed in order to encourage the employees. Performance management and reward systems are developed which includes the business strategy of Unilever. Due to various demographic changes, Unilever need to adopt some HR strategies to cope up with those changes. First of all, it is important to understand the role of the HR department in the company. The significance of the role of the HR department in the organization has been discussed below.
Human resource planning
At Unilever, HR team is responsible for developing capabilities within the employees for winning the business. HR managers are focused on driving culture change, developing talent individuals, managing employee relations and enhancing the performance of the individuals. HR planning includes management and personnel (Oke, 2016).
Recruitment and selection
At Unilever, recruitment and selection is significant to analyze the level of technical abilities, flexibilities and competencies of the employees which are required for the business operations. The policy of recruitment and selection at Unilever is very simple. Recruitment in the company involved in selecting individuals for various organizational operations.
Orientation
At Unilever, a newly hired employee is oriented so that the idea about the organizational activities can be provided to him. Orientation plan in the company covers some points i.e. visits of various department of the company and policies, rules and regulations of the company. The Unilever’s orientation program is helpful in getting proper idea of organization and working ways (Purce, 2014).
Training and development
Training and development at Unilever includes improving the skills, knowledge, and abilities of the individuals. A continuous training is provided by the company for enhancing the performance of the employees. At Unilever, there are two types of training conducted by HR manager i.e. in-house training and external training.
Compensation and benefits
At Unilever, there are some advantage of the Compensation and benefits for the employees that are important for the organization to implement the strategies. In the company, the benefits are good attendance reward, death compensation, utilities allowances, convenience allowance and social security and pension plans (Meyer, 2014).
2.Mean of changes for Unilever on employees
Demographic changes have significant impact on the role and practices of human resource in the company. Demographic changes have significant impact on the HR process of Unilever. The labor forces are becoming diverse related to age, gender, and civilization and now, this is the key issue for human resource department to handle this effectively. Because of the demographic changes and shifts, there is the need of new human resource strategies in order to manage the workforce effectively. It is observed that HR managers hire lots of people for the job roles in Unilever but there are dissimilarities among the employees in terms of culture and gender. This makes demographic dissimilarities and at times it generates problems within the company. In Unilever, there is the necessitate of various work forces in order to perform job role but demographic differences sometimes creates problems for the HR managers to deal with daily procedures (Bohlander & Scott, 2010).
Issues in people management
People management can be described as the process of planning, directing, organizing and applying the managerial attributes in order to manage the diverse workforces in the organization. In the process of people management, employees are managed based on their similarities and differences so that they can effectively and actively contribute to the competitive advantage within the organization. Due to diverse workforce, it is sometimes difficult for the human resource managers to manage the employees. Human resource department of Unilever is responsible for managing the people in the organization. Demographic changes like aging population and globalised workforce create some challenges for managers to manage the employees. Possible people management issues arising from the management of the workforce is as follows:
Conflict to change-
With the changes of various factors in the organizations, there may be nervousness and conflict among the employees. Various changes in Unilever sometimes can be pressure by the senior employees who imagine that their roles within the organization will be changed by young employees. Developing strategies to deal with the resistance to change is important for the role of human resource manager. This can be done by promising to the employees of their significant position within the organization.
Dealing with globalized workforce-
Globalization has strong impact on every business. Unilever has diverse workforce due to globalization. As the outcome, human resource managers frequently find it very difficult to manage the employees in terms of diversity. They must teach their current employees to keep up with the demographic changes. Along with this, they must inspire and support the employees so that they can work together in the organization. Human resource can also conduct educational programs, conferences, training days and tutorials to keep the employees motivated.
Training-
Providing support and training to the employees who want to keep up with the demographic changes, not only give advantage to the organization but also help the employees to feel important in the organization. The human resource managers can face difficulties in recognizing the key business areas of the employees where the training is required. It is also an opportunity for the employees to get training and development sessions in the organization.
Benefits of employee engagement
Human resource managers have responsibility to engage the employees within the organizational activities. Employee engagement can be described as the level to which the employees in dedicated towards their work. The employee engagement ensures that the employees contribute towards the success of the organization along with enhancing their performance. Employees basically have various attitudes, behaviors and outcomes related to the engagement. Due to different demographics, there are variations in the results also. Results can comprise low accident rates, less conflicts, high efficiency, more innovation and low illness rates (Guest, Paauwe & Wright, 2012).
High level of employee commitment in Unilever tends to have high level of standards for the employees. Organizations have the clear evidence of fairness and trust with the employees. Human resource managers in Unilever can make two promises with the employees and they can do efforts in order to fulfill those promises. In order to get effective employment commitment, employees have to be left free so that they can put their efforts in achieving organizational objectives as the parts of their daily activities.
Benefits of employee engagement in Unilever
Initially, there are various approaches used by human resource management for motivating and encouraging the employees to contribute towards the organizational success. Most of them were failed due to manipulating of the employees. Employee engagement is the modern day approach adopted by human resource management in the company Unilever. Employee engagement is the key factor of success and high productivity in the company. In case of Unilever, employee engagement is helpful in dealing with the employee deficit. Employee engagement enhances the productivity of the employees in the organization (Dowling, Festing & Engle, 2013).
Figure 1: Employee Engagement
(Source: Dowling, Festing & Engle, 2013)
There are some significant benefits of employee engagement in the organization. Those benefits are as follow:
Higher employee satisfaction-
Employee satisfaction is important in Unilever. If employees are not satisfied with their job role then they will lack interest for their work day by day in their job and this will impact on the growth of the company. Low job satisfaction sometimes becomes a threat for the time or money of the organization. So, if the employees in the company are engaged with their work and experience pleased with their position, then they will feel high level of association with the organization. They will provide quality work and benefit the organization as well as customers.
High retention with low turnover-
The on boarding and hiring process for the new employees is time-consuming for Unilever. Another benefit of employee engagement in the organization is that this is helpful in retaining the top level employees. Along with this, it is also helpful in decreasing the turnover rates of the organization to ensure the satisfaction level of the employees.
High productivity-
Engaged employees in the organization work harder, faster and stronger as they like what they are doing. When they are concerned in and associated what they are doing, they are more likely to do it well. It is observed that engaged employees are 17% more productive. So, when the employees are engaged with the work and they are treated well by the managers, then they feel the sense of liability to put their best efforts (Bagheri, 2016).
Increased profitability-
When the employees experience excellent at their job then they work harder to generate more superior work within their job role. This is the simple way to enhance the profitability of the organization. Unilever keep looking outward instead of turning inward. Without a specific concept, employees cannot provide their best. Employee engagement is the best way to enhance the productivity of the employees and profitability of the organization.
Increased employee loyalty-
One of huge benefit of having engaged employees in Unilever is that they will be loyal for the organization, so they act as the company’s ambassadors.
HR strategies
Human resource has important role in managing the impact of demographic changes in Unilever. Human resource in the company is crucial for managing the employees and their performance. The role of human resource management in Unilever is to supervise the staff and team in the better manner. Human resource at Unilever executes the hiring and recruitment procedure with the suitable processes. HRM in Unilever needs to focus on the activities in order to attract and hire people, provide appropriate training, conduct their induction, undertake retention program and termination or retirement process by preparing final statements. Along with this, employee satisfaction is also another responsibility of human resource of the company. There are some important role and strategies of Human resource in order to manage the workforce in the company effectively (Stahl, Jörkman and Morris, 2012).
Managing diversity
After analyzing the demographic changes in Unilever, it is observed that the demographic changes in the company are affecting the business process and employees’ performance. There is the need to manage the age diversity in Unilever as the organization will keep the older employees by relocating them in other departments. Along with this, the human resource strategies will also focus on the health factors of older employees in Unilever. Further, human resource department can develop some wellness programs for them like promoting healthy lifestyle by different campaigns and conducting sports programs for the employees. Along with this, managers can motivate the employees by introducing reward system. In order to enhance the performance of the employees, the company can provide them special rewards. It will be helpful for Unilever to keep the employees motivated so that they can perform in a better way.
Further, managers in human resource management can engage the employees in various activities so that they will feel valued and part of the company. In order to manage labor workforce diversity, HR managers can also adopt effective communication strategies by focusing on team-bonding so that team work can be developed. By managing these diversities, Unilever will be able to achieve competitive advantage over the competitors in the market. Managing diversity in the company is the method of enhancing the engagement of the employees within the business operations. Employees will become more innovative and adaptive towards changes.
Developing employer brand
It is important for Unilever to improve the employer brand as there is the need to hire moiré employees in the organization. So, the image of the company must be positive in the market. Having strong employer brand, employees will be committed for the organization.
Figure 2: Employer Brand Development
In case of Unilever, it is important to enhance the brand image to maintain competitive advantage and attract new employees in the organization. There are some strategies that can be adopted by the human resource managers to enhance the brand image (Stredwick, 2013).
Research-
To enhance the brand image of the company in terms of culture and demographic factors, managers need to do research about employees and their viewpoints about the brand image of the company. Managers can conduct the survey about brand attractiveness in terms of work-life balance, cultural and work environment and reward packages etc.
Analysis-
For Unilever, it is crucial to analyze the employer brand in the market. It is also important to understand the employee value proposition i.e. experience provided by Unilever, company culture, work environment, employee engagement and development opportunities for the employees. It is crucial for existing employees to relate with new employee value proposition in the organization (Chan, & Marchington, 2013).
Maintenance-
In order to manage workforce and brand image of the organization, it is important for Unilever to conduct the qualitative research at the internal and external level so that the perception of the employees can be understood. Unilever must understand the hiring and recruitment process to enhance the brand image.
Recruitment activities are crucial in every company in order to deal with the demographic changes. In Unilever, human resource strategies are implemented to hire new talent and applicants. Managers must adopt talent employment curriculum which will clarify the staffing process of Unilever. The major fields from which the company will hire the applicants are Marketing, HR, IT and engineering. For the recruitment and selection, managers must use ‘educational institutions’. Under this process, Unilever calls students from a variety of universities in all over the world to apply this program. Further, human resource managers must adopt diverse commercial methods in order to hire employees in Unilever. The most frequent methods are social media, newspaper and magazines. Managers can also adopt internet hiring technique in which applicants are given an opportunity to login on the official website of the company and give their resumes. For the potential necessities, applications should be cautiously evaluated and sustained by the managers. Managers must adopt an equivalent chance policy for the employees and no employees can be wrongly treated based on gender, race, age, nationality or marital status (Mathis et al, 2016).
Selection-
Selection is the process of hiring and selecting individuals who have skilled and required skills for the job openings. It is also significant process for each industry. Hiring right applicants is very important as the success and breakdown of any company depends upon its employees. So, this is very essential concept in the human resource management. The hiring process of the organization must be complete because potential talent pool of the organization is analyzed by this process (Dessler, 2013). Managers can adopt various selection processes for hiring the employees. First process can be accepted by the managers is screening procedure in which information given by applicants can be analyzed (Boxall & Purcell, 2011). The company can also check the past history of the applicants under this procedure. Company can also check the suggestions provided by previous employees of the organization. The next process conducted by managers is applicant test. Due to some technical jobs, it is useful. In would include both achievement and aptitude test. Next process is to get job in Unilever is interview. The process of interviews scheduled by managers would be dependent upon the nature of jobs like computer and virtual interviews, and situational interviews etc. the final stage of hiring procedure is selection and decision. The selection decision will be made by the managers after different deliberations that whether employees will match the requirements if Unilever or not. Once decision is made, it must be communicated with the candidates in order to make the primary impression of the organizations (Andresen & Nowak, 2012).
Employee engagement
In Unilever, there is the need of employee engagement in order to connect the employees in different organizational activities. Employee engagement is also vital to develop positive attitude among the employees who are working within the organization. it is understood that highly engaged employees in the organizational activities can have best performance in their job role. Along with this, they can also be more innovative. In the case of high engagement, there are less chances of resistance of change by the employees in the organization. There are some human resource strategies which can be adopted by Unilever for engaging the employees in organizational activities. Those strategies are as follows:
Meaningful work
There should be meaningful work for the employees within the organization. There must be link between the organizational objectives and their individual goals. It is vital for the organization to make the employees feel that how their role is important in the business operations. There are some methods of providing meaningful work for employees. Those methods are described below:
Human resource managers should provide a supportive and positive work environment for the employees in Unilever. Supportive work environment can be provided by the support of peers, sense of team work to express the viewpoints and safe environment. In case of Unilever, the company would create supportive environment to the workforce by providing counseling to the employees. Along with this, managers will provide such environment in which employees can learn from their mistakes (Wall and Wood, 2005).
Leadership and vision
Senior managers or leaders will share strong strategic vision for the development and growth of the employees as well as organization. In case of Unilever, management must be concerned for the safety and well-being of the employees. For this way, they must conduct engagement session with the employees (Stone, 2011).
Person job fit
In this strategy, there must be effective job design along with proper selection and recruitment process. The process will go with the skills, knowledge, and attitude of people in the job roles of the organization. In the company Unilever, the recruitment process must focus on such employees who have right and appropriate skills so that they can be fit for the organizational mission and objectives.
Engaging line managers
Line managers are the important factor of employee engagement. They empower and motivate the employees rather than restrict or control them. Line managers generally appreciate the employees and show the commitment to enhance and develop their capabilities within the organization. In case of company Unilever, managers can motivate the middle level employees so that they enhance their performance in their job role. Along with this, they can also communicate with them related to organizational goals.
Training and development
To manage the workforce effectively in the organization, there will be the need of proper training and development process. In order to provide training, human resource managers in Unilever would need to conduct a deep research on the employees so that required type of training can be understood. Further, there is also need to analyze the readiness of the employees in order to attend training and development session. Organization must communicate with the employees to understand the need of training i.e. training is important to enhance the organizational performance and to achieve the organizational objectives. Along with this, it is also crucial to monitor the training progress of the employees of the organization. After giving effective training, it is also essential for the organization to provide support to the employees in managing their job (Ahern, 2003).
Unilever has experienced various developments during many years. But company has facing some difficulties in managing its workforce due to demographic changes. So, efficient training procedure is required in order to build up suitable skills and knowledge to execute their job roles at the best point. Human resource in the company needs to focus on the personnel arrangement. It is the accountability of human resource in the company to make sure that right number of people must be engaged at the right position with appropriate skills (Nyberg et al, 2014).
Each developing agendas, each action and every production is a chance for managing the workforce and this can be the agenda of the managers of training and development in Unilever. In order to enhance the performance of the employees, managers must focus on the training by regional training centers i.e. global production centers. Along with this, new people are being hired to provide proper training to the employees. Computers are also vital part of training and development process with interactive learning systems so that employees can learn more effectively in their job role.
There is one recommendation for the company Unilever that the company must set some goals and objectives based on the viewpoints of the HR department. In order to deal with the challenges of human resource management, Unilever should focus on reward management and compensation policies (Chan, &Marchington, 2013).
The responsibility of the HR department in the company is to hire skilled employees having adequate knowledge of the job roles and responsibilities. This is the accountability of the HR department of Unilever is to create job opportunities for individuals based on the requirements of the business. Hiring and retention of the employees is the important duty of the human resource in the company. One of the main reasons of the challenges is that the there are various demographic changes in the organization. So, staffs in the lower level have to fulfill the roles of upper level employees in the company. The lower level employees should have the proper knowledge and skills to deal with various changes take place in the organization. Along with this, in Unilever, there are employees with various backgrounds in the company having adequate level of skills in the top position. So, it is recommended that the human resource department should develop proper recruitment plan to ensure that the company has employees with no differences in terms of culture. Along with this, it is the job of human resource to identify the job functions and required skill sets to recruit the employees in the company. So, it is recommended that human resource of the company should evaluate the set of skills to fill the important position in the business (Stahl, Jörkman, and Morris, 2012).
Further, one more recommendation for Unilever is that HR managers must conduct training sessions for those employees who want to enhance their performance. By conducting the sessions, they would be able to identify to weak points of the employees and give proper knowledge related to the business operations. Apart from this, there is the need to motivate the hiring of women workforce in order to enhance the profitability and productivity of the business. There must not be the shortage of staff as if there will be shortage, company has to face various issues in the business. To deal with the issues, the department of human resource should focus on the risk assessments process in business (Johnson, Whittington & Scholes, 2011).
Reward system
It is very important to manage the workforce in Unilever in order to deal with the demographic changes. Although, there are various human resource strategies which can be adopted by human resource managers in Unilever but reward system is very useful to retain the employees. Reward system should have three aspects i.e. seniority based system, bonus payment on team reward system and total health management. The production bonus should be given by the managers on the basis of group level and it must compose partly with the monthly salary of the employees. So, the bonus must be given after the evaluation of the performance of employees. The wage of an employee depends upon the production level of the organization in their industry. Unilever must bring some changes in its reward and appraisal policy to enhance the performance of the employees. Reward and paying strategy adopted by the managers has significant impact on the organizational objectives and plans (Johnason. 2009).
Reward system is a significant part of the performance enhancement. Under this, assessment of the performance of the employees can be done on the regular basis which is helpful to develop and manage the overall performance of the employees. In order to ensure the efficient and effective performance of the employees, there is the need do performance appraisal on the regular basis. Necessary steps must be taken by the human resource managers if they are performing improperly. Three important factors are behavior, traits and results which are important for the reward and performance appraisal. Unilever must adopt both result and behavioral appraisal. These reward appraisals make sure the control of cost with the satisfaction and safety promotion of the employees (Armstrong, 2008). By the behavioral appraisal, the managers can acknowledge the legitimate and suitable job related behaviors. This will also make sure that employees follow Unilever’s principles and encourage security. By using this type of reward system, managers can give feedback to the employees related to their behaviors in their specific job roles. This will encourage the employees to become more aware in their behavior and to measure the execute behavior according to the job. To reward the employees in the organization, first and foremost step is to analyze various behaviors related to the job which is important to achieve the principles of Unilever (Tyson, 2014).
Impact of reward system
Reward system in Unilever has significant impact on the employees as it is helpful for the organization in inspiring the employees and enhancing them to execute better. This management system allows the managers to enhance the retention capability of the employees in the organization. There are some reward systems which have significant impact on the employees.
Increased performance-
To improve the performance of the employees, it is important to provide them minimum wages as per the industry norms. The minimum wages system is understood as the reimbursement given by the company for the time and efforts of the workforce. This is a financial form of reimbursement which is compensated to the employees for their services and efforts. All the employees are given least pay for their service in the organization. Based on the qualification and skill necessary for the job, an average least and wage is offered to the staff of employees. This is also performing as the recompense that is provided by the organization for the proficiency of the employees and for this reason, minimum wages is decided (Bartov, Givoly, & Hayn, 2002). Based on the efficiency of the employees, some extra quantities of money are also given as the reward system of the company which motivates the employees in their job role. The rewarding system in terms of least amount of wages is one of the efficient and effective system and most extensively used method followed by various business organizations. Basically, quantity of least wages or salary enhances the value of the employees in the organization and higher quantity is considered to be more important for the employees.
Employee retention-
For the employee retention, incentive and earning system is another effective form of the reward system. By the earning system, organization can provide reward to the employees in the monetary terms such as the incentive or periodic bonus for the achievement of any target by the employees. Earnings are the additional amount of money for the employees because that is the reimbursement of the extra effort of the employees in order to achieve certain target of the organization. The earning system is also developed that the company share a part of its earning with the deserving employees. So, the rewarding policy by earning has significant impact on the employees to enhance their satisfaction level and motivate them to give their extra effort.
Motivation level-
Prestigious form of the reward enhances the motivation level of employees in the organization. For this manner, offering the share options is another form of reward system used by the organizations. This is the common method of recognition which is provided to the employees by the organizations. Higher levels of employees are rewarded with the share options. The impact of this reward system is that employees feel valued and recognized in the organization. Along with this, they are motivated to shape more efficient strategies for the organization and help the business to uplift its performance. The share options provided to the employees not only give them the share of the business ownership but also offer additional benefits of periodic profit in terms of dividends. So, it can be said that various forms of reward system have strong impact on employees in terms of retaining, motivating and enhancing their performance (Kehoe & Wright, 2013).
Reward management system is used as the important and necessary system to enhance the performance and motivate the morale of the employees in their workplace. There are various reward systems like bonus, fringe benefits, increments and other types of rewards. All the reward systems are equally important for the employees to manage their performance in the job role
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