Case Study: Unilever’s Approach to Talent Engagement and Retention Through Sustainability and Purpose

Unilever, a global leader in consumer goods, has long been recognised for its commitment to sustainability and purpose-driven growth. The company’s unique approach to engaging and retaining talent revolves around aligning its business strategy with broader societal and environmental goals. This alignment has not only strengthened Unilever’s brand but has also made it a top employer of choice, particularly for millennial and Gen Z talent who prioritise working for companies that make a positive impact on the world.

Challenge

In today’s competitive talent market, attracting and retaining top employees requires more than just competitive compensation packages. Increasingly, employees, especially younger generations, are looking to work for companies that align with their values. Companies are now expected to be socially responsible and contribute to sustainable development, making it essential for businesses to integrate these elements into their corporate culture to retain talent.

Unilever recognised this shift early on and developed its Sustainable Living Plan to address societal concerns and differentiate itself from competitors. The challenge was to use this framework not only to drive business success but also to engage employees by aligning the company’s mission with their personal values.

Strategy

Unilever’s engagement and retention strategy is deeply intertwined with its purpose-driven business model, centered on sustainability. Here’s how the company effectively integrates purpose and sustainability into its talent management approach:

1. Unilever Sustainable Living Plan (USLP): Launched in 2010, the USLP aims to decouple the company’s growth from its environmental footprint while increasing its positive social impact. The three core pillars of the plan include:
2. Purpose-Driven Leadership: Unilever promotes a culture of purpose-driven leadership, encouraging employees at all levels to connect their personal values with the company’s mission. Employees are invited to discover their personal purpose through internal programs such as "Purpose Workshops." By empowering employees to find alignment between their values and their work, Unilever creates a sense of belonging and purpose, leading to higher engagement and retention.
3. Diversity and Inclusion: A key aspect of Unilever’s talent engagement strategy is its focus on diversity and inclusion. Unilever believes that diverse teams are more innovative and reflective of the global consumer base they serve. The company has set ambitious targets to achieve gender balance across its leadership and continuously works to improve representation across all demographics. This inclusive culture fosters a sense of belonging among employees and improves retention by ensuring all voices are heard and valued.
4. Learning and Development: Unilever invests significantly in the learning and development of its employees. The company offers a variety of programs and resources to help employees grow professionally, including online learning platforms, leadership development programs, and mentoring opportunities. This commitment to continuous learning helps employees feel that they have opportunities for long-term growth within the company.
5. Employee Engagement in Sustainability Initiatives: Employees are encouraged to take part in sustainability initiatives both at work and in their communities. Unilever’s internal programs, such as its "Sustainable Living Ambassadors" initiative, allow employees to champion sustainable practices in their daily work. This participatory approach strengthens employee engagement by fostering a sense of responsibility and contribution to meaningful causes.

Results

Unilever’s comprehensive approach to sustainability and purpose has had a profound impact on employee engagement and retention:

• High Employee Satisfaction: Unilever has consistently ranked as one of the best companies to work for, particularly among millennials and Gen Z. According to internal surveys, employees who feel that their personal purpose aligns with Unilever’s mission are more likely to stay with the company long-term.
• Attraction of Top Talent: Unilever’s focus on sustainability has positioned the company as an employer of choice for socially conscious talent. A study by Deloitte found that 83% of millennials are more engaged when they believe their employer is making a positive impact on the world . Unilever has successfully capitalised on this trend, attracting top talent that is passionate about purpose-driven work.
• Reduced Turnover: The alignment of personal values with company mission has led to a significant reduction in turnover. Employees feel more engaged and loyal, knowing their work contributes to the company’s broader societal and environmental goals .
• Enhanced Reputation: Unilever’s leadership in sustainability has enhanced its reputation as a forward-thinking and socially responsible employer. This reputation not only attracts talent but also retains employees who are proud to be part of a company that is making a positive impact on the world.

Key Takeaways

Unilever’s success in engaging and retaining talent is a powerful example of how aligning a company’s purpose with employee values can drive business success. The company’s focus on sustainability, purpose-driven leadership, diversity, and continuous development has created a workplace culture where employees feel empowered, valued, and motivated to stay for the long term.

In a talent market increasingly driven by values and purpose, Unilever stands out as a leader by embedding sustainability into the core of its business and employee experience. For other companies looking to engage and retain top talent, Unilever’s model offers a clear roadmap: create an environment where employees’ personal values align with the company’s mission, and foster a culture of purpose, inclusion, and continuous growth.

References:

1. Unilever Sustainable Living Plan: https://www.unilever.com/sustainability/
2. Deloitte’s Millennial Survey: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/about-deloitte/us-inclus-millennial-influence-120215.pdf
3. Unilever's Diversity and Inclusion Efforts: https://www.unilever.com/sustainability/equity-diversity-and-inclusion/