Compensation Practice

Compensation Practice

Introduction

Unilever is a multinational organizational operating in USA. The company was formally formed in 1920's and has been listed on the stock exchange as a public company. The company has more than 400 brands in around 14 categories of personal care, home, and foods products. The company envisions improving the life of people by its products. It aims at building an improved future every day. It aims at making people feel and look good by the use of its products so that they can get more out of the product, not only for themselves but also for the people around them. The company also aims and makes efforts to make the people bring small contribution daily so that they can collectively bring a big difference form improving the world around them. The company also strives to develop novel ways of conducting business, so that the size of their business can grow by double, while the adverse affect of business on the environment is reduced. The company believes in the power that is possessed by its brands. It also believes, that with an increase in the volume of its business, its responsibilities towards the consumers and others is also increasing (www.unileverusa.com)

Compensation strategy

Compensation strategies are designed after an analysis of the company's vision, mission, and goals. It involves understanding the key personnel's expectations and the level of performance they are giving for the organization (Upadhyay, 2009). Compensation packages offered by a company can include a variety of different forms of monetary and non-monetary rewards such as base salaries, short-term incentives, midterm incentives, wealth accumulation, development benefits, executive perks, and director's compensation (Graham, Roth and Dugan, 2008).

The compensation package of Unilever is divided into the following categories (www.unileverusa.com).

Rewards and benefits

Unilever has a reward package to recognize its talent. Its package for rewarding employees is exclusively designed to attract the best talent available in the market and also to retain the talent with it has acquired or already possess. It comprises of a fixed pay reward system, and a performance related reward system. The fixed pay is further divided into a base pay given to the employees and benefits. The fixed pay and the rewards form the total reward package given to the employees. The reward for performance is awarded to the employees by determining a balance between the short term and the long term business and the achievements made by an individual.

The overall package

The overall package offered by Unilever to its employees include competitive package offering a wide array of benefits. These benefits include Plans for Medical and Dental health, plan for Life Insurance including employees spouses, children and domestic partners, Dependent Care, Flexible Spending for Health Care, Retirement Savings Plans, Retirement plans, Reimbursement for Tuition fees, Holidays and Paid Vacation.

Performance-related rewards

An incentive program is also designed for Employees who give superior performance as compared to their counterparts, or against the performance target set by the company. The program is designed very effectively and links the performance of an individual to ...