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    A Case Analysis On Hindustan Unilever LTD.: Meeting Employee Expectations

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    SHASHWAT KRISHNA
    Hindustan Unilever Ltd. (HUL) faces challenges retaining employees and managers due to changing expectations. [SENTENCE 1] To address this, HUL must make employees feel included in the company's vision and mission, and provide more flexibility. [SENTENCE 2] A situational analysis found that while HUL was once a top employer, it saw a decline in 2004 that it later addressed through improved HR practices. [SENTENCE 3]

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    A Case Analysis On Hindustan Unilever LTD.: Meeting Employee Expectations

    Uploaded by

    SHASHWAT KRISHNA
    370 views9 pages
    Hindustan Unilever Ltd. (HUL) faces challenges retaining employees and managers due to changing expectations. [SENTENCE 1] To address this, HUL must make employees feel included in the company's vision and mission, and provide more flexibility. [SENTENCE 2] A situational analysis found that while HUL was once a top employer, it saw a decline in 2004 that it later addressed through improved HR practices. [SENTENCE 3]

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    HUL (2)

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    Hindustan Unilever Ltd. (HUL) faces challenges retaining employees and managers due to changing expectations. [SENTENCE 1] To address this, HUL must make employees feel included in the company's vision and mission, and provide more flexibility. [SENTENCE 2] A situational analysis found that while HUL was once a top employer, it saw a decline in 2004 that it later addressed through improved HR practices. [SENTENCE 3]

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    370 views9 pages

    A Case Analysis On Hindustan Unilever LTD.: Meeting Employee Expectations

    Uploaded by

    SHASHWAT KRISHNA
    Hindustan Unilever Ltd. (HUL) faces challenges retaining employees and managers due to changing expectations. [SENTENCE 1] To address this, HUL must make employees feel included in the company's vision and mission, and provide more flexibility. [SENTENCE 2] A situational analysis found that while HUL was once a top employer, it saw a decline in 2004 that it later addressed through improved HR practices. [SENTENCE 3]

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    A case analysis on

    Hindustan Unilever Ltd.:


    Meeting Employee Expectations
    Problem Statement

    HUL needs to address the changing expectations of


    employees and the poaching of their managers. It requires
    to retain them, make them feel included in the larger vision
    and mission of the company, and gain more flexibility.

    With the equation of employment being in a constant flux,


    continual employee satisfaction and reduction in attrition
    rate via innovative and relevant revamps in the Human
    Resource Management department is necessary.
    SITUATIONAL ANALYSIS

    1. HUL is a leading FMCG sector player. Set up at the time when India was gaining its
    foothold as an independent country, HUL too, began to emerge as a leading FMCG
    goods.
    2. During its hegemony in the FMCG market, it was considered as the top company to
    be a part of. With state of the art talent acquisition and fostering mechanisms, it
    quickly became the “CEO factory” of India.
    3. In 2004, the company did see a decline as far as prospective employees’ perception
    is concerned, however later on it did bounce back with a slew of HR practices that
    rejuvenated employee satisfaction.
    4. Lead HR is wondering whether the latest crop of top-MBA grads will look at HUL
    as a lucrative career option.
    SITUATIONAL ANALYSIS
    HUL : HR Policies & changing employee expectations

    Key HR policies that exhibited personalised care for the employees during early 2000s are as follows-
    Family Health Ethical
    Welfare & Safety Dealings

    Changing Employee Expectations-


    1. A meaningful job with direct visibility of the stakeholder impact. Contribute to society & the
    environment
    2. Well defined career path to grow professionally & personally within the organization
    3. To be a part of responsible & caring work culture that would be sensitive to their needs &
    welfare
    4. Work-life balance
    SITUATIONAL ANALYSIS
    HUL : Turnaround in Employee Proposition

    ➜ Flattening the organization structure to reduce the promotion time . Provide global experience early in the
    career
    ➜ Increased the variable component by more than 100 percent between 2008 –’09
    ➜ Handling large size & scale of the responsibility at an early stage created an attractive proposition
    ➜ Training & development methodology – On the Job learning , Mentoring & Training ,Coursework
    ➜ Performance Measurement – 360 degree performance appraisal was institutionalized. HP & SHP performers
    were differentiated in terms of training & development, career opportunities, coaching & compensation
    ➜ Work Life Balance – Generous career breaks & sabbaticals, work from home policy & closing office at 8:30 pm
    Alternatives
    1. Do nothing
    2. Avoid retention, groom more young talent
    Starting with a larger number of young management graduate will result in retaining more talent even after poaching
    3. Quarterly appraisals
    In response to frequent feedback, quarterly appraisals should be made the norm

    4. Share status of CSR efforts


    To help employees realise the effect of their individual efforts and that of the organisation

    5. Flatten the hierarchy


    HPs & SHPs should be on fast track promotion to reach the senior management level in < 14 years as a pilot project

    6. Talent Succession Management


    Develop a connect between the middle and the higher divisions of management at the initial level so that if an
    employee at the higher level leaves HUL, there is a person from the middle level to replace him/her.

    7. Compensation
    Increase the base compensation for the lower-level employees and simultaneously increasing the variable pay component
    for the mid and higher-level employees at HUL.
    Reduced Cost Turnover Ease of
    Practicality Summation
    to Company Reduction Implementation

    Option 1 5 1.5 5 1 12.5


    Option 2 1 1.5 1 2 5.5
    Option 3 2 5 3 5 15
    Option 4 4 3 4 4 15
    Option 5 3 4 2 3 12
    Recommendation-

    Ensure talent success management, increase base pay for lower


    level and variable pay for the middle and higher level, bring cross
    country learning and development programs and provide
    organizational footprint in leading B-Schools to attract and retain
    the best talent.

    HUL should incorporate quarterly appraisals and sharing the results


    of CSR activities of the employees to see immediate association
    and allegiance to the company.

    The changes in hierarchy can be implemented as a long-term


    solution to address the retention of managerial talent.
    THANK YOU

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