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Our Compass strategy - Unilever

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In China, for example, we identified<br />

a shortage of talent in the leadership<br />

pipeline and difficulties in retaining young<br />

talent. So we developed a recruitment<br />

scheme for students studying overseas,<br />

offering opportunities back home once<br />

they have finished their initial training<br />

at <strong>Unilever</strong> after graduation. In Latin<br />

America, our <strong>Unilever</strong> in your Class<br />

campus programme targeted college<br />

students across eight countries. The<br />

programme has helped almost 1,700<br />

students learn more about <strong>Unilever</strong> and<br />

the consumer goods industry. We will<br />

roll it out to more countries in 2011.<br />

Business Week Turkey recognised us as<br />

the best consumer goods employer in the<br />

country, the first time we have achieved<br />

this honour. We were named most<br />

preferred employer in the Benelux<br />

countries in a number of surveys, including<br />

Universum and Qompas, and <strong>Unilever</strong><br />

Indonesia received Asia’s Best Employer<br />

Brand Award from the Employer Branding<br />

Institute in conjunction with the Chief<br />

Marketing Officer (CMO) Council in Asia.<br />

Meanwhile in India, <strong>Unilever</strong> came in<br />

ahead of all other consumer goods<br />

companies and achieved a ranking of<br />

third overall for business school students<br />

in the Nielsen Employer of Choice national<br />

employer survey.<br />

Diversity<br />

<strong>Unilever</strong> needs a diverse team – across<br />

gender, nationality, race, creed and culture<br />

– to be able to connect with the widest<br />

range of consumers. Currently, we have six<br />

nationalities represented on the <strong>Unilever</strong><br />

Executive team and five on the Board of<br />

Directors. This diversity delivers a wealth of<br />

experience which is critical to our success.<br />

In terms of gender, the number of women<br />

in senior positions increased from 23% in<br />

2007 to 27% at the end of 2010.<br />

<strong>Unilever</strong>: the place to succeed<br />

With the launch of the <strong>Compass</strong> <strong>strategy</strong>,<br />

we developed a performance culture<br />

toolkit and held workshops for all<br />

managers across the company. The<br />

programme, run and owned by leaders<br />

within the business, places strong emphasis<br />

on leadership and personal responsibility.<br />

We know this is resonating with people<br />

from the outstanding results of our annual<br />

Global People Survey (GPS). Engagement<br />

scores had been hovering around 65%<br />

for a number of years; in 2010 it was<br />

73%. We learnt that people are inspired<br />

by the <strong>strategy</strong> and, while it is presenting<br />

them with big challenges, they<br />

understand what’s expected of them.<br />

This level of engagement was also reflected<br />

in our <strong>Compass</strong> Awards, launched in 2010<br />

to celebrate employees who are making<br />

a big contribution to our success. In all, we<br />

received over 1,400 entries, representing<br />

every part of our business, way beyond<br />

what we expected.<br />

One of the winning entries was an<br />

employee engagement programme run<br />

in South Africa. Aiming to revitalise the<br />

culture among all employees, from senior<br />

management to the shop floor, the results<br />

speak for themselves with the business<br />

achieving one of the most positive trends<br />

in the GPS survey.<br />

A genuine performance culture needs<br />

to reward people and teams who deliver.<br />

This year we changed our incentives<br />

and remuneration plans for all <strong>Unilever</strong><br />

managers. They are now based entirely<br />

on personal achievement, with personal<br />

development goals also contributing<br />

to people’s overall rating.<br />

But changing a company’s culture takes<br />

time. We are looking at a period of<br />

◊ 2010 data is preliminary. It will be independently assured and reported in our online Sustainable<br />

Development Report 2010 at www.unilever.com/sustainability.<br />

Report of the Directors About <strong>Unilever</strong><br />

Winning in the universities – China<br />

Talent is the most valuable resource in China’s<br />

developing market place. Last year, <strong>Unilever</strong><br />

China ran an initiative to assess how our talent and<br />

organisational capabilities could best be harnessed<br />

to our strategic ambitions for 2015 – with a particular<br />

focus on attracting the best graduates.<br />

And we’re winning graduates over. After scaling<br />

up our recruitment programme and strengthening<br />

its international appeal, <strong>Unilever</strong> China’s employer<br />

brand among graduating students at ten targeted<br />

universities across the country moved from 38th in<br />

2008 to the top ten in 2010, according to Universum.<br />

sustained effort over some time to get<br />

all our people to work in new ways.<br />

Safety is essential<br />

We take seriously our responsibility to<br />

provide a safe workplace. For us this<br />

means the health, safety and well-being<br />

of everyone working for or on behalf of<br />

<strong>Unilever</strong>. A key measure of progress is our<br />

total recordable accident frequency rate,<br />

which counts all employee workplace<br />

accidents except those requiring only<br />

simple first aid treatment. There was a<br />

15.7% ◊ reduction in our total recordable<br />

accident frequency rate in 2010.<br />

Building a winning culture<br />

Ensuring a winning culture truly<br />

comes alive involves everyone from<br />

senior management to the shop<br />

floor. One of our <strong>Compass</strong> Award<br />

winners in 2010 was <strong>Unilever</strong> South<br />

Africa. They revitalised their business<br />

through an employee engagement<br />

drive, dramatically reducing staff<br />

turnover and strengthening our<br />

business where it counts – in<br />

the market place.<br />

<strong>Unilever</strong> Annual Report and Accounts 2010 19

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