Unilever’s Vision : Double the size of its business and half its environmental footprint by “Compass” :Unilever’s Business Strategy comprises of 4 non-negotiables: 1.Winning with Brands & Innovation 2.Winning with Markets 3.Winning with Continuous Improvement 4.Winning with People Unilever Sustainability Living Plan –strategy to reduce our environmental footprint and increase the positive contribution we make to society while growing our business Unilever : Vision and Strategy

HR Support to the Unilever Vision and the Sustainability Living Plan is multifold Unilever HR Ambition Employer Brand Diversity Development Leadership -Right Job : Right Person: Right Pay Drive Performance Culture and Differentiation e.g. Performance Ratings linked to reward that is valued by people Build HR Capabilities e.g. world class HR Services/ initiatives to drive transformation Drive Productivity Right size -bigger better roles Volunteer Programs Drive the ‘mood’ and culture in the Org.

Reward processes (e.g. Merit/Bonus) directly linked to - business performance - individual performance and listing potential - market competitiveness - business affordability Reward programs that are valued by employees - “Rate my Reward” survey to gain information on employee reward perception and satisfaction Productivity Study - Ideal FTE and functional structures based on indirect targets/span of control and functional ratios Talent And Organisation (T&O) readiness study - Charters on R&R - Increase transparency and communication on Total Reward vs. Fixed Salary Recognition – based on leadership competencies and target achievement (e.g. Chairman’s awards/ Heroes Site/ Town hall meetings/sales conference) R&R Strategies that drive USL business

1. Annual Pay Cycle - Online tool for reward processing that is linked to the Performance management system - Pay for performance approach (e.g. Listers/high potential) - Communication : top down approach starting with Chairman 2. Pay scale - based on market positioning to ensure competitive reward (minimum and maximum pay points strictly adhered to) 3. A seamless and consistent Job Evaluation mechanism that can be operated with equal understanding across the organization 4. Total Reward Statement (online system) and Gross Compensation Statements to build ‘Total Reward’ appreciation. 5. Bonus Calculator – transparency on bonus process. Aim to drive performance culture and accountability USL - Reward & Recognition practices

6. Deliver Rewards valued by people – “Rate my Rewards” Salary Survey 7. Transparent and consistent communication on policies/ pay review : HR Services portal and employee handouts 8. Annual Remuneration Survey – to compare market positioning 9. Remuneration Workshops – Carried out by Head of Reward, South Asia to build reward awareness and appreciation 10. Reward 101 : e-learning modules - clarity on Unilever Reward principles USL - Reward & Recognition practices

11. Recognition programs Chairman’s awards Annual Sales recognition Heroes Site Long service awards Recognition of ‘Action Heroes’ Special recognition – Chairman’s blog, magazines Learning Recognition Field Incentives USL - Reward & Recognition practices

Challenges and Action Plan ChallengesAction Plan Change from ‘Base Pay’ mindset to ‘Total Reward’ mindset Communication on total reward/pay elements Feedback sessions / Reward 101 workshops Driving the fact that pay is linked to performance, business affordability and market competitiveness Transparency of individual pay points/ pay positioning CEO communication on link between business performance and Reward Driving the Performance Culture life cycle via line managers e-learning and reward workshops Consistent and transparent benefit structure Communication of policies and procedures Exceptions should be strictly administered

Challenges and Action Plan ChallengesAction Plan Benefit Cashing out Drive Total Reward understanding Queries on Market Competitiveness e.g. Rem survey peer groups/ job matching Explained the process through Reward appreciation workshops Clarify the fact that market position drives reward proposals Establish the job evaluation process which guides all promotions and transfers and new roles Constant communication and strict adherence to the evaluation process Well documented Job Descriptions Sample Job evaluation template - consistent approach