in a world of evolving work preferences, Unilever employs a fresh approach to solving talent scarcity.
In 2022, when Forbes named Unilever’s Morag Lynagh to its inaugural Future of Work 50 — a list of influential “leaders, executives, thinkers and teams who are shaping the office of tomorrow, today” — it acknowledged the innovative thinking and practices the consumer packaged goods giant has brought to the world of work. Long before the pandemic forced many employers to reassess their own approaches to job flexibility and talent experience, Unilever was pioneering a new social contract with its people. And today, that groundbreaking work Lynagh and her colleagues undertook has led to leading-edge workforce strategies.
With one of the most unique approaches to job flexibility, Unilever has been able to retain its older workers even as aging demographics have led to millions leaving the labor market. But, through alternative work arrangements, the company is persuading many experienced, valuable talent to continue contributing to its business but at a pace and workload of their choosing. For example, wherever possible the company supports caregivers to flex work around their personal schedules, which greatly reduces barriers to staying in the labor market. This is especially important as workforce participation continues to decline in many markets.
As the company’s former Global Future of Work Director, Lynagh had been instrumental in advancing a new work paradigm at Unilever. For instance, a pilot that is an alternative to the gig work model launched in the U.K. in 2019 and is now rolling out to other markets at Unilever. Its U-Work employment model was created when data revealed a shrinking talent pool and an imminent wave of retirements were going to severely affect the company’s workforce. To entice many of its older employees to stay productive with the company, it launched the program based on fractional employment, which provides unprecedented flexibility that accommodates personal needs.
Unlike part-time, contingent or traditional gig work, U-Work offers participants a monthly retainer regardless if they work that month. In addition to the retainer, they are paid for taking on assignments, can access benefits such as a pension, and are free to work for other employers. Most importantly, they have a say over when and how much they work while maintaining a good relationship with the company. Lynagh, who recently spoke with Randstad Enterprise before departing from her role, says the model offers talent a very compelling reason for workers to continue to contribute, even when they need to care for others, want to spend their time in other jobs or just want to limit their work schedules at Unilever. While the program initially started out as a way to entice older workers to stay, it has since been expanded to talent of all ages.
For example, one worker took on U-Work assignments so she could also tend to an upcycling business. The flexibility also allows her to care for a disabled brother and her elderly mother. Another employee near retirement didn’t want to stop working so enrolled in the program, giving him time to support a son active in sailing competitions. Additionally, the employee also volunteers at a bike shop while taking on U-Work assignments.
“With our U-Work model, we allow people to remain connected to Unilever, to work on assignments with Unilever, but still do the other things in their lives that are important,” Lynagh says.
improved productivity and access to resource
The benefits for Unilever are also substantial. Having a large pool of flex workers is important for covering manufacturing shifts when there are planned and unplanned absences and to support factory maintenance. Because this group of talent brings their experience and knowledge to assignments, they are highly productive and engaged. Most importantly, these resources help the company stave off a difficulty that many organizations struggle with: growing talent scarcity.
rethink aging to mitigate talent scarcity
In many markets, the working-age population will dwindle significantly over the next several decades. The share of population over 65 across OECD markets will increase from 17% in 2015 to 28% by 2050. By that time, in more than two-thirds of these markets the population will be over 65. At the same time, birth rates today are at their lowest ever in a number of industrialized nations. Even in the U.S., which has been able to maintain its workforce due to immigration, the fertility rate of women has reached record lows for the second consecutive year.
These statistics serve as a wake-up call for both employers and policymakers. Already, governments in South Korea, China, Germany and others are investing considerable sums to incentivize families to have more children. In Japan, incentives and subsidies are being used to help older workers stay in the labor market. More recently, policymakers are also raising the retirement age not only as a cost-cutting measure, but also to maintain the workforce.
But governments can only do so much to incentivize people to continue working. For people to be successful later in their career, they also need support in the workplace and allowances for unique needs at this stage of their life, says Melissa Gee Kee, chief talent, development and people analytics officer at Unilever.
“It’s also important that people feel it is ok to say that they would like to step back and take a less demanding role. As we shape and re-imagine careers differently, this can apply at all life stages, but can be particularly relevant as careers progress,” she says. “It’s equally important that people feel comfortable to be able to say this is what they want, and that line managers and leaders do not judge them for this.”
Support also means flexible hours for people to tend to health needs. For instance, Unilever recognizes people experiencing menopause often encounter a poor night’s sleep. In the U.K. the company has provided guidance that allows workers to catch up on rest and report to work later in the day in some circumstances, and this approach is being considered in other markets as well. These and other accommodations are intended to build on a culture of trust.
The accommodations Unilever offers today required cultural shifts for the organization. Job flexibility, whether for workers on the manufacturing floor or behind the desk in accounting, requires line manager buy-in, and that can be challenging to come by. Especially for those who are accustomed to traditional schedules and ways of working, adopting this new paradigm can be upsetting.
However, Lynagh says Unilever’s been able to broadly gain buy-in using data that demonstrates the value of such an approach for those managers. Successful case studies are also a powerful way to convince leaders to think about work and resourcing differently.
“By showing what we've done, and then triggering more and more people, we see success breeds success,” she says. “When you see line managers access flexible resources, when you see people working in a flexible way — whether that's in a U-Work type of environment or more in the everyday, flexible environment where they can manage their working day and their working week because they have trust from their line manager — it becomes a kind of virtuous circle.”
creating satisfying career journeys
Giving people some latitude in setting their schedules and workloads might seem overly accommodating in an employment relationship, but Lynagh points out that it’s part of a broader effort to create a better talent experience and trust. And while there are many instances where such flexibility is not possible, the company is constantly assessing opportunities as part of their work in progress.
Reflecting on the past 10 years in the world of work, she says one of the big trends during this time is a shift in the way organizations regard talent. Rather than regarding people simply as assets whose sole purpose is to serve the business, companies now seek to build long-term relationships that are mutually beneficial. Doing so will only enhance the output and loyalty of the workforce, she adds.
“It’s about how we can come together and meet people where they are. And it’s for the company’s benefit as well because, if we don't do that, the best people will go to organizations that do,” she explains. “In a world of talent scarcity, in order to be able to attract the best people, you need to be able to meet people where they are and support them in what they want.”
While Unilever is at the forefront, defining the future of work through flexibility and empathy, Gee Kee and Lynagh point out that the company’s efforts are a work in progress. More data is needed to help improve outcomes, additional piloting is under way and securing buy-in is an ongoing endeavor. The investment in time, budgets and resources, however, is clearly paying off. As one of the world’s largest consumer packaged goods companies, its corporate, product and employer brands are all highly regarded.
As Gee Kee puts it succinctly: “In many markets, we remain an employer of choice, and that has to be indicative of our employment practices, the way that we're engaging people and meeting their needs.”