The present report aims to outline the reward strategy and policy for Unilever’s new business
division, i.e. a store in central London for Unilever’s largest Personal Care brand Dove. The
reward strategy and policy are designed to motivate the Dove House employees to provide an
excellent service to our customers and hence to ensure a successful establishment of this
unique store concept. If this aim will be achieved, further stores in the UK and other countries
will be considered.
Accordingly, an effective reward management system, which is aligned both with the overall
business strategy and other HR practices, is vital to ensure the engagement, commitment and
high levels of performance of all our employees and will be proposed in this report.
Table of Contents
1. Introduction
1.1. About Unilever
1.2 Opening a Dove House in London
2. Reward Strategy
2.1 Reward Goals
2.2.1 External Market Competitiveness
2.2.2 Promoting our Performance Culture
2.2.3 Promoting Teamwork and our Values
2.2.4 Promoting Learning and Development
2.2.5 Engagement and Satisfaction
3. Reward Strategy for the Dove House Employees
3.1 Rewarding Managerial Employees
3.2 Rewarding Shop Floor Employees
3.2.1 Massage Therapists and Cosmetologists
3.2.2 Customer Service Assistants and Cashiers
3.2.3 Rewarding Collaboration
3.3 Collective Rewards
3.4 Non-Financial Rewards
3. Reward Policy
3.1 Implementation
3.2 Ensuring Reward Effectiveness
3.2.1 Equity, Fairness and Transparency
3.2.2 Employee Involvement and Communication
3.2.3 Line Manager Training
3.2.4 Evaluating Reward Effectiveness
4. Conclusion
Objective and Key Themes
This report develops a comprehensive reward strategy and policy for the launch of Dove House, a unique retail store concept in central London. The primary objective is to create an effective, aligned reward management system that motivates employees, ensures high service standards, and supports Unilever's overall business growth strategy.
- Alignment of reward structures with Unilever's corporate values and business objectives.
- Differentiation of reward packages for managerial versus shop floor staff.
- Implementation of financial and non-financial incentives to boost employee engagement.
- Ensuring market competitiveness through systematic benchmarking in the London retail sector.
- Frameworks for performance evaluation, equity, and continuous line manager development.
Excerpt from the Book
1.2 Opening a Dove House in London
Given the increasing distribution challenges currently facing the consumer goods industry (Blissett et al., 2010), Unilever needs to find new ways to connect directly with consumers to achieve its growth strategy. Setting up a store in central London for Unilever’s largest Personal Care brand Dove, which is available in over 70 countries and has an annual turnover of over €3 billion (Unilever, 2012), presents an alternative sales channel to traditional retailers and hence a solution to this prevailing issue. At the same time, this new business division provides an opportunity to feature Dove’s extensive range of hair, skin and body care products. In this way consumers will be able to experience the different products, which often is connected with difficulties in retail stores, and to receive personalised product recommendations on the basis of skin assessments on the ground floor of the Dove House. Moreover, the first floor will offer visitors various professional beauty services and a luxurious spa on the top floor will provide visitors a place to feel good about themselves where they will be able to receive a full range of relaxing massage treatments.
This unique store concept will support Unilever’s achievement of its corporate mission ‘to help people to look good, feel good and get more out of life with brands and services that are good for them and good for others’ (Unilever, 2014). Furthermore, if the Dove House in London succeeds, further stores will be established in the UK and worldwide.
Summary of Chapters
1. Introduction: This chapter introduces the corporate background of Unilever and describes the strategic rationale behind establishing the Dove House store in London as a new sales channel.
2. Reward Strategy: This section details the theoretical and practical foundations of the reward strategy, focusing on market competitiveness, performance culture, and team-based incentives.
3. Reward Strategy for the Dove House Employees: This chapter specifies the distinct compensation approaches for management and shop floor personnel, including financial profit-sharing and various non-financial motivators.
3. Reward Policy: This chapter outlines the operational framework for implementing the rewards, focusing on transparency, fairness, line manager training, and methods to monitor reward effectiveness.
4. Conclusion: This chapter summarizes the alignment between the proposed reward practices and Unilever’s organizational objectives, serving as a foundation for future business expansion.
Keywords
Reward Management, Reward Strategy, Unilever, Dove House, Employee Motivation, Performance Culture, Retail Sector, Total Reward, Compensation Policy, Employee Engagement, Incentive Schemes, Market Benchmarking, Talent Retention, Human Resource Management, Organizational Commitment
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on developing a tailored reward strategy and policy for Unilever’s new retail concept, Dove House, in central London, aimed at motivating staff and ensuring business success.
What are the central themes discussed in the document?
Key themes include aligning HR practices with business strategy, balancing financial and non-financial rewards, maintaining market competitiveness, and ensuring fairness in compensation.
What is the core objective regarding employee performance?
The goal is to create a high-performance culture by rewarding behaviours that support corporate values and business goals, ultimately driving customer satisfaction and sales.
What scientific or theoretical methods are used to underpin the strategy?
The strategy is informed by established motivational theories such as expectancy theory, goal-setting theory, and attribution theory, alongside best practices in total reward management.
What does the main body of the text cover?
It covers the strategic goals of the reward system, specific reward structures for different employee groups (management vs. shop floor), and the operational policy for ensuring reward effectiveness.
Which keywords best characterize this work?
The work is characterized by terms such as Reward Management, Dove House, Performance Culture, Talent Retention, and Total Reward.
How is the pay progression structured for shop floor employees?
Progression is linked to the acquisition of new skills, such as advanced massage techniques or specific beauty treatments, ensuring service improvement and career growth.
Why is line manager training considered vital in the reward policy?
Training is essential to minimize subjectivity in performance evaluations, ensure goals are clear and attainable, and help managers effectively administer complex reward systems.
What criteria are used to evaluate the effectiveness of the reward system?
Effectiveness is monitored through metrics including applicant quality, employee engagement levels, turnover, retention rates, customer-service ratings, and overall sales growth.
- Quote paper
- Anna Jung (Author), 2014, Remuneration Strategy and Policy for "Dove" House, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/275400
