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RECRUITMENT & SELECTION IN FMCG INDUSTRY

HINDUSTAN UNILEVER LIMITED

Aksshaya K, Kshitij Malani, Maheswar Panda, Nikhil Jagtap, Pooja Jain,

Thumpally Pratheek Reddy & Urvi Mangal

DEPARTMENT OF HUMAN RESOURCES, SBM NMIMS, MUMBAI

Managing People

Dr. Hema Bajaj

August 19, 2021
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TABLE OF CONTENTS

S. No. Topic Page No.

1 Abstract 3
2 Introduction 4
3 Recruitment and Selection 4
4 Recruitment and Selection in the FMCG Industry 4
5 Industry Analysis 6
6 Impact of Covid 19 on the FMCG Sector 9
7 Study of Organization: Hindustan Unilever Limited 10
8 Intervention of Covid 19 in HRM 12
9 Literature Review 13
10 Data Collection Instrument and Sample 16
11 Analysis and Discussion of Results 17
12 Recommendations 19
13 References 20
14 Appendix A 22
15 Appendix B 30
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ABSTRACT

FMCG is India's fourth-biggest industry, with three major segments: food and drinks,
healthcare, and household and personal care. To get a deeper understanding and give more
substance, we focused our research on HUL, with a narrower focus on how the company's
recruiting and selection procedures have evolved to meet the changing demands.

Fast-moving consumer goods (FMCG) are things that sell rapidly and for a low price.
Beverages, toiletries, packaged meals, and other consumable items are examples of FMCG
goods. India has a better market for the FMCG sector because of the easy availability of raw
materials and low labor costs. The importance of investing in manpower in the FMCG industry
cannot be undermined. The industry's major focus is not just on customer loyalty, but also on
employee loyalty and productivity.

In today's technologically advanced world, staying ahead of the competition necessitates the use
of appropriate employment options. The recruitment and selection process is critical in any
organization since companies invest a lot of money in this area and do not want to attract bad
personnel because it would result in long-term losses. Interviews are frequently used to assess
the body language of potential workers to determine their level of confidence. Because the
FMCG sector is changing, individuals with prior job experience are preferred so that they can
withstand the intense competition and maintain their place in the economy.

The goal of this study is to bring attention to and understand the recruiting and selection
processes of the FMCG industry with a particular dive through in HUL. It indicates that
businesses should go beyond survival and strive to capitalize on the chances presented by the
dynamic environment. Instead of focusing solely on short-term crisis management, firms might
concentrate on securing key personnel, laying off unnecessary ones, and tapping into the vast
talent pool.
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RECRUITMENT & SELECTION IN FMCG INDUSTRY

HINDUSTAN UNILEVER LIMITED

Fast Moving Consumer Goods or FMCG industry deals with products that are sold fast
and are low cost, and it majorly deals with non-durable consumable products. This industry is
the fourth largest sector in the Indian economy. It can be further divided into three main
segments. The largest segment is household and personal care, consisting of 50% of the sector
followed by healthcare which accounts for 31%, and food and beverage which account for
19%.

Compared to 2012, the valuation of the FMCG industry has tripled in 2020 to US$ 110
billion. By 2025, the market for the industry is expected to be US$ 220 billion. The top 5
companies in the FMCG sector of India consist of Hindustan Unilever Limited (HUL), ITC
Limited, Nestlé India, Britannia Industries, and Marico. The whole sector has generated
employment for more than 3 million people.

RECRUITMENT AND SELECTION

The most important HR functions are recruitment and selection. These are the key
strategic activities for any organization since selecting the right employee for the right job
maximizes the effectiveness and productivity of an organization. The process of recruitment is
very crucial because a firm’s future depends on its manpower. The HR department has a wide
area to work upon like employee engagement, employee development, data management, etc.
One of the key focus areas is to attract and select suitable candidates for the organization.

Recruitment
Recruitment is the process of attracting prospective candidates for a job role. It is often
regarded as a positive process as it aims at developing a pool of candidates suitable for the
job. A brief overview of various aspects of recruitment is shown in Fig 1.

Selection
Selection is the process of selecting the right person for the right job for the various positions
that are open in the organization. It is often regarded as a negative process as it involves
eliminating the candidates which are not suitable by various screening processes and finally
choosing a handful of the most suitable candidates. The selection process involves a variety
of steps which are shown in Fig 2.

RECRUITMENT AND SELECTION IN THE FMCG INDUSTRY

The FMCG industry is a steady, diverse, and highly profitable industry where a person
does a lot of work. The jobs in this field range from sales and advertising, strong supply chain
and distribution channels, marketing, HR development, and general management. It has a much
formalized structure for the recruitment and selection of employees.

The FMCG industry is different from other industries in its approach to recruitment and
selection. They select a particular candidate who has the necessary skills to complete the work
efficiently. They also make use of social media for inviting people for hire. To get hired in the
FMCG industry, one needs to be experienced, qualified, and possess good communication
skills.
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The FMCG recruitment process includes a sequence of steps that includes Recruitment
Planning, Strategic Development, Searching, Screening, Evaluation, and Control. The
recruitment team invites candidates and selects the profile for the available vacancies.
Candidates are selected based on their qualifications, skills, and experience in the field. As the
FMCG industry is growing rapidly, it prefers experienced candidates as they won’t have to put
in their time training the employee and focus on more crucial and key areas.
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INDUSTRY ANALYSIS

Michael Porter’s Five Forces Model

It is an important business analysis tool that uses the industry forces to determine the
competitive intensity and the profitability of the industry in the market. It is a widely used tool
for designing business strategies. Michael Porter recognized 5 forces/ factors namely Threats
of new entrants, bargaining power of suppliers, Bargaining power of buyers, threat of
substitutes, and Rivalry among the existing firms.

FMCG industry is the fourth largest sector in the Indian economy and hence making it
one of the largest contributors to the GDP. Studying the FMCG industry in the light of Porter’s
Five Forces model would say about the collective strength of the underlying forces of the
industry which would determine the potential profit.

1. Threats of New Entrants

As the number of players in an industry rises so does the level of competition. This
leads to reduced attractiveness of the industry. The threat of new entrants is largely dependent
on the entry and exit barriers. There exist high entry barriers in some industries and some are
easy to enter as there are little or no barriers. There are certain key barriers to entry:

 Economies of Scale: One of the key determinants of market structure and entry of a firm.
In the FMCG sector, economies of scale are highly attractive. One can produce in large
quantities while incurring very less costs.
 Product Differentiation: It is done to make your product more attractive in contrast to the
competitor’s product. In the FMCG sector, it is highly attractive and is done on various
parameters like color, shape, size, etc.
 Brand identity: A strongly built brand identity communicates a positive image of the
company, builds brand recognition and loyalty. In the FMCG sector, it is very high.
 Customer Switching Costs: In the FMCG sector, it is low due to the large number of players
in the market.
 Access to Distribution Channels: There is a huge availability of distribution channels in
the FMCG sector in the form of wholesalers, retailers, etc.

Thus, the FMCG sector is designated to have modest barriers to entry and exit.

2. Bargaining Power of Suppliers

Suppliers play a vital role for any industry. Generally, powerful suppliers wish to
squeeze out as much profit as they can in the whole process by manipulating price and supply
of the product. Suppliers are either the price makers or the price takers depending on how
powerful they are. The power of the supplier depends on some characteristics:
● Number of suppliers: any industry which has less suppliers is more vulnerable at the hands
of the suppliers. In the FMCG industry, the number of suppliers are more, hence the power
rests more in the hands of the industry.
● Threat of forward integration: the supplier is powerful if it can threaten forward integration
i.e., the supplier may threaten to move up the value chain by turning into a manufacturer of
the same goods. In the FMCG industry, a supplier’s threat of forward integration is low as
there exists many manufacturers already.
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● To reduce the threat of forward integration from suppliers, one of the FMCG companies,
Britannia develops its own distribution network, including regional warehouses, in order
to sell directly to retailers rather than through wholesalers.
● Industry’s importance to supplier: the supplier is powerful if the industry is not the primary
customer. Since the FMCG industry is such a huge market, it is a very important customer
to the suppliers hence reducing the latter’s power.
● Switching cost: it is the cost which buyers bear by switching from one established supplier
to a new supplier. If the switching cost is low, the power of the supplier is less. FMCG has
a large number of suppliers hence switching cost is low, leaving little power in the hands
of the supplier.

Overall, the power of the supplier in the FMCG is low.

3. Bargaining Power of Buyers

Buyers play an important role in any industry. Generally, when buyers have a strong
bargaining power, they tend to demand low priced or high-quality products. Certain factors
determine their bargaining power:

 Number of buyers: In the FMCG sector, the number of buyers is huge.

 Availability of suppliers: There is huge availability of suppliers in the market.
 Switching Cost: Due to the intensified competition in the FMCG sector, the customer
switching costs are low. Hence, persuading the customer to switch between products.
 Contribution to quality: To maximize value, customers bargain for high quality products
thereby increasing competition among firms.
 Contribution to Cost: To minimize cost, customers bargain for highest level service and
the lowest price possible. Thereby, increasing the cost to the firms.

Thus, in the FMCG sector, the bargaining power of buyers is high.

4. Threat of Substitutes

The existence of substitutes in the industry impacts the attractiveness and the
profitability of the industry by limiting the price levels. The threat of substitutes depends on a
variety of factors:
 Availability of close substitutes: there is huge availability of close substitutes in the
FMCG sector thereby posing a threat.
 Switching costs: the cost of switching is lower if it is easy to switch from one supplier to
another. In the FMCG sector, it is low due to wide availability of substitutes.
 Relative price and performance of substitutes: In the FMCG sector, these are closely
related.
 Profitability and substitutes: Profitability is highly dependent on the performance of
substitute products.

Thus, in the FMCG sector, the threat of substitutes is high.

5. Rivalry amongst existing firms

Competitors may compete amongst themselves by using strategies like pricing, product
introduction, product renovation, aggressive advertising and marketing. The intensity of rivalry
depends upon various factors:
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● Number of competitors: Since the number of manufacturers in the FMCG industry is high,
the intensity of competition is high especially amongst the big players.
● Industry growth: According to Nielsen, the Indian FMCG industry grew 9.4% in the
January-March quarter of 2021 hence proving that the industry growth is high i.e. rivalry
is moderate.
● Product Differentiation and Switching costs: the product differentiation is moderate and the
switching cost low for the consumers, therefore making the rivalry moderate.
● Durability of the product: the less durable the product, the more intense the competition.
Since the FMCG industry deals mostly with non-durable products, the competition is more
intense.

Thus, the intensity of rivalry in the FMCG industry ranges from moderate to high.

CONCLUSION
According to Porter’s Five Forces Model, the FMCG industry doesn’t quite restrict new
competitors to the existing firms, thus high competition, has a high number of both suppliers
and buyers, and provides ample substitute to consumers so that they can easily switch from one
company to another.
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IMPACT OF COVID-19 IN THE FMCG SECTOR

Covid-19 was not the first pandemic that the world witnessed but it was surely the first
that the globalized nations have. This pandemic has impacted every nation, every industry,
every organization, and every living being. A few industries were doomed because of the
pandemic (Aviation industry, Tourism Industry, and Hospitality industry), on the contrary, a
few industries boomed during this pandemic (Pharmaceutical industry, Healthcare Industry,
and Organic industry). Overall, 53 percent of businesses across the country have already faced
the brunt of this pandemic.

According to Nielsen, FMCG in India saw stagnant growth in 2020 following months
of strict lockdowns, restrictions on manufacturing units, social distancing norms, and store
closures. In June 2020, the industry showed signs of improvement but in the first half of the
year, the growth of the industry had dipped to negative 6 percent. “Never let a crisis go to
waste” is what the FMCG sector adopted. The demand for hygiene-related products like masks,
sanitizers, cleaning substances hiked up and so did the demand for organic products like
organic food and organic personal care.

The FMCG industry had to do everything to stay resilient, be it scaling up to meet new
demand, re-starting operation in the manufacturing unit and warehouse, or coming up with new
strategies to tie up with online platforms to deliver the product. According to Pinakiranjan
Mishra, Partner and Leader, Consumer Products and Retail, EY India said, “FMCG companies
will become more active in their direct-to-consumer outreach as this crisis will have a long-
term impact on consumer behaviour and they will need to devise strategies to adjust to this new
reality. Recent trends such as the outreach to various resident welfare associations and tie-ups
with e-commerce for last-mile delivery are examples of how companies are quickly adapting
to the external environment, the changing consumer need and behaviour, and thus, looking to
turn it into long-term, sustainable business strategies.”

People’s day to day life is highly dependent and related to FMCG products. None of the
organizations are being able to continue their HR work as they had once planned. While the
pandemic is a large problem at hand, the organizations have to change and endure according
to the environment. Numerous activities of the HR department have been confronting the
impact of COVID-19, such as recruitment, training process, interview process, compensation
process, evaluation process, employee’s safety, and security procedures.

● Work from Home: Transformation of brick-and-mortar offices to virtual offices and

providing laptop and data cards for seamless work.
● Well-Being and motivation: HRs communicated the necessary information related to a
pandemic like safety protocols, hygiene practices, and guidelines for quarantining and
isolating, and emergency numbers. They also conducted online sessions to help
employees manage their stress and boost their motivation.
● Reorienting Learning & Development initiatives: team activities have become more
important to create inclusiveness. Partnerships with learning platforms and programs to
upskill and develop employees were just one of the initiatives taken.
● Flexible timings: demand for flexible timings is even more than before as work from home
has become the new normal.
● Managing employee cost: Redesign of compensation structure and other relevant benefits
to adapt to the changing scenario. Redefining existing flexible allowance and relevant
employee expenses.
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STUDY OF ORGANIZATION: HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited is India’s largest FMCG Company in India. It has a

strong presence of more than 85 year in the country. More than 90% households in India use
HUL Products.
Product Portfolio
HUL has three major categories of brands in its product portfolio. These categories are
‘Beauty and Personal Care’, ‘Food and Refreshment’ and ‘Home Care’.
● Beauty and Personal Care:
HUL has a total of 32 Brands in its Beauty and Personal Care Category. This category
comprises prominent Soap products like Lifebuoy, Dove, Ponds, Pears, and Lux. These
soap brands are valued at more than Rs.1000 Crore. Glow and Lovely, a beauty product
under HUL, has a valuation of more than Rs. 2000 Crore. This category also comprises
other products in the segment of skincare, oral care, and hair care.
● Food and Refreshment:
HUL has 22 Brands under the Food and Refreshment Category. This category comprises
health food drink brands like Horlicks and Boost. Brooke Bond, the tea product brand under
HUL has a valuation of more than Rs 2000 Crore. Kissan, Kwality Walls, and Bru coffee
have a valuation of more than Rs 500 Crore.
● Home Care:
HUL has 11 Brands under the Home Care Category. This category comprises Surf-excel, a
washing product brand under HUL that has a valuation of more than Rs 5000 Crore. Wheel,
a cleaning bar product brand has a valuation of more than Rs 2000 Cr. Rin soap and Vim
have a valuation of more than Rs 1000 Crore.

Geographical Markets

HUL is a subsidiary of Unilever, which has a presence in over 190 countries. More than
21000 employees work in HUL. HUL has 29 Factories, more than 4500 Distributors, and more
than 8 million outlets across India. Product Brands under HUL can be categorized into the
following types of geographical segmentation:

● Density-based Segmentation: ‘Rin’ majorly captures customers in the urban area while
‘Wheel’ tends to capture the customers in the rural area.

● Climate based Segmentation: Pond’s sunscreen lotion is majorly offered in the hot regions
and Pond's cold cream is majorly offered in cold regions.

● Location-based Segmentation: Knorr Soups are targeted as per the regional taste of the
customers.
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Financial Performance
● HUL has recorded a revenue of Rs. 45311 Cr. in the financial year 2020-21. Revenue in
the financial year 2016-17 was Rs. 33895 Cr. Thus, HUL has shown growth in revenue
with a CAGR of 8.42% in the span of the last 5 years.
● HUL has recorded an EBITDA of Rs. 11324 Cr. in the financial year 2020-21. EBITDA in
2016-17 in the financial year 2016-17 was Rs. 6047 Cr. Thus, HUL has shown growth in
EBITDA with a CAGR of 21.81% in the span of the last 5 years.
● HUL has recorded a Net Profit of Rs. 7954 Cr. in the financial year 2020-21. Net Profit in
the financial year 2016-17 was Rs. 4490 Cr. Thus, HUL has shown growth in Net Profit
with a CAGR of 19.28% in the span of the last 5 years.
● HUL has recorded Earnings per Share of Rs.34 in the financial year 2020-21. Earnings per
Share in the financial year 2016-17 was Rs.21 Cr. Thus, HUL has shown growth in
Earnings per Share with a CAGR of 15.47% in the span of the last 5 years.
● HUL has recorded a Market Capitalization of Rs. 571 thousand Cr. in the financial year
2020-21. Market Capitalization in the financial year 2016-17 was Rs. 197 thousand Cr.
Thus, HUL has shown growth in Market Capitalization with a CAGR of 47.46%.

Organizational Structure
The Managing Director is at the top of the organizational structure of Hindustan
Unilever Limited. Second in line are the Executive Directors after the Managing Director.
Please refer to Fig.4. For a better understanding of the Organisation Structure.

Human Resource Department

The Executive Director of Human Resources is at the apex of the Human Resource
Department. Second, in line is the Vice President of Human Resources. Third, in line are the
Heads of Verticals. For a better understanding of the Human Resource Department in
Hindustan Unilever Limited, please refer to Fig.5
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INTERVENTIONS OF COVID 19 IN HUMAN RESOURCE MANAGEMENT

● HUL during this pandemic considered employees to be the backbone of their competitive
industry and weighing upon the responsibility of pushing the economy, one of the key
investments of organizations has been on people. Strong leadership and an innovative
workforce are the key agendas of the company, and hence the role of HR teams is more
profound now than ever before.
● The HR team customized their talent management practices, modified their Employee
Value Proposition (EVP) as per the need of an hour, and also understand that it is important
to adopt the new approaches for talent acquisition in the current scenario, thereby
improving the company’s business value, and carrying out proper positioning of the
organizations to attain their business goals.
● To form a productive talent pipeline, the organization put efforts to realize that there should
be no single pool from which these talent teams can draw the latest skills. Hiring should be
uniform, and across all levels of an organization.
● With due credit to the relaxation in lockdowns and the multilevel unlock phases, the FMCG
sector has seen a significant increase in hiring in recent time as compared to earlier, and as
Work from Home begins to gain dominance in the current scenario, there would be hiring
for expertise in the digital platforms, which is equipped to gather insights of this new
demographic.
● HUL CMD, Sanjiv Mehta in an interview said the company has not cut any jobs or salaries
of employees so far due to the coronavirus pandemic, and the company’s major focus is
going to be on looking particularly at every bit of it in ensuring that the organization holds
a strong business model and we can preserve it.
● HUL already hired over 100 interns from the country’s top B-schools in the year 2020. The
executive director of Human Resource (HUL), Anuradha Razdan also mentioned in one of
the press releases that the organization will go ahead and deliver a 100% signature HUL
experience virtually to the new employees, and some projects which required extensive
fieldwork will be tweaked slightly.
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LITERATURE REVIEW

Recruitment and Selection are key functionalities of the HR department that help
identify the resources required to sustain a competitive advantage in the business. It involves
finding prospective employees, interviewing them for a particular job, evaluating them, and
selecting the right person for the right position.

Steps in Recruitment and Selection

● Recruitment Planning: The process of recruitment starts with job analysis. It is then
followed by a job description and job specification. The former describes the roles and
responsibilities of a job, while the latter specifies the education and experience required to
be eligible for the job.
● Strategy Development: Devising a suitable strategy for recruitment, which involves
identifying the source, geographical area to be considered, and the sequence of activities
that follow.
● Searching and Screening: It involves eliminating out the people who are either not fit for
the job or do not in line with the goals of the company. It is initiated by reviewing all the
resumes of the applied candidates which are followed by an interview of the candidates
who qualify for the post and finally recruiting the required number of candidates.
● Evaluation and Control: The effectiveness of the recruitment process and the validity of the
methods used are assessed. As it is a costly affair, it is important to evaluate the process
and keep the costs incurred under control.

Sources of Recruitment

The sources of recruitment can be narrowed down to two main methods: Internal and
External.

Internal: In internal recruitment, the candidates are the existing employees in the company
itself. It is a cost-effective method that saves the cost of training and the transition is done
smoothly. It also helps in increasing the morale of the employees as they are happy about their
hard work being recognized by the organization and acts as a phenomenal prospectus for the
current employees.

External: In external recruitment, the candidates are selected and recruited from outside the
organization. It can help in bringing new skills and ideas to the organization. New employees
recruited also expect less wage as compared to the already existing ones if promoted but it has
disadvantages like it may take some time for new employees to get accustomed to the new
rules, new people, and the culture of the organization.

With the growth of the social media industry talent pools are no longer restricted to top
universities and technical colleges but now any person can gain the necessary critical skills be
it on the job or learning it from the various social platforms available today. Talent recruitment
should also not be restricted to people from high-price clusters, going out of this niche and
exploring will allow diversifying the organization which could be beneficial for them.
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Novel ways of Employee reach

Globally, the impact of COVID-19 has changed the way organizations reach out to their
employees. All the work including presentations, meetings, and communication from the top
level in an organization is done virtually. The impact of covid-19 has increased the frequency
with which managers communicate with their employees and it has reduced the gap between
the top management and the rest of the employees in the organization. This situation has
changed the traditional structure of how an organization works and has brought to light a new
and favorable way that is being adopted by the future generation. This has increased the
flexibility of work, not only in the domain of time but also in the geographical domain. Now
an organization is not restricted to any particular region, it can have new employees from all
around the world. This new flexibility that has been achieved by the organization increases the
pool from which selection and recruitment can be done. This new way of communicating is
proving to be very effective as it helps employees achieve a work-life balance and also helps
the companies in diversifying themselves.

Bringing in the best talent is always an uphill task, but it is something that will add
value to the future of the company. The desires of the employees keep changing and it is the
responsibility of the organization to show why they are different from the rest.

Employer Branding: New EVP

In a recent survey by Microsoft, it was seen that 74% of the new generation employees
wanted more flexible working hours and remote work but this was not the only thing that
attracted new talented employees to the companies. Employees are no longer attracted to huge
sums of money; they instead prefer jobs that will help them grow in their careers and provide
competitive challenges in their work. The definition of a compelling employee value
proposition has come a long way, people have become increasingly selective in their choice of
working with an organization, and they now look for career-development opportunities and
stellar management. Most of the people from top universities also want roles that would add
value, to work for something greater or towards a social cause.

The recent pandemic has also changed the way people want to work, they have realized
the importance of family and the importance given for proximity of work to the family has
increased a lot. All these together form the new EVP that most organizations are advertising
for their new employees.

Reciprocal relationship

A recruitment process is usually a proactive approach, in which either they seek an

eligible candidate for an organization or find a hiring organization for a candidate. Now if the
recruitment process is done wrong i.e., the goals of the employee recruited do not match with
the long-term goals of an organization, this can lead to negative effects on the organization
such as poor performance by the manager and therefore leading to poor compensations at the
end of the fiscal year. The challenges between the recruiters and Human Resource policies can
be challenging to navigate, especially if a new partnership is formed between them or if they
don't cooperate in the process of talent recruitment. On the other hand, if the recruiter and the
HR department decided to work together the results will be immensely positive.
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Boomerang Recruitment

Rehiring former employees is becoming increasingly prevalent. Employees who

performed well at a company but subsequently left on good terms for a variety of reasons are
known as boomerang employees. Employers see the value in rehiring them because they are
familiar with their skills and the employee is familiar with and fits into the corporate culture.
Bringing a boomerang employee back on board reduces time to hire, eliminates the risk of a
bad hire and reduces cost per hire.

Gamification in recruitment and selection

Gamification or game-thinking is the process of applying elements of games in non-

game contexts. It can be used to enhance the processes in recruitment and selection, by
motivating the employees to refer potential applicants and put more effort into increasing the
applicant pool. A system of points might be used which reflects the number and quality of
referrals that each employee provides. On completing certain referral goals, the employees
could be given badges. A progress bar could display the amount of progress made towards
achieving an individual or organizational goal. The usage of competition in the recruitment
process might also attract applicants who are interested in challenges. However, the recruiters
should be mindful as to not make the process too challenging or competitive.

Gamifying selection might improve the perceptions of fairness in the assessment

processes like online surveys or personality tests. Gamified assessments could also provide
insights into predicting the job performance of the candidates.
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DATA COLLECTION INSTRUMENT AND SAMPLE

Sample

For the study, the survey pool consists of employees of the FMCG industry, particularly
Hindustan Unilever Limited.

Data Collection Instrument

In order to collect relevant data to examine the recruitment and selection processes, and
the FMCG industry, we would be using the Structured Interview method for exploratory
analysis. The questions asked are as follows:

1. What are the various steps in the recruitment process of the HUL?
2. What are the various steps adopted by HUL in the selection of candidates?
3. How does recruitment strategy vary for different hierarchies of positions?
4. How HUL is implementing new technologies in its recruitment process?
5. What were the steps taken by HUL in the hiring process post-Covid-19 Pandemic?
6. How are the critical skills tested during the interview?
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ANALYSIS AND DISCUSSION OF RESULTS

1. Recruitment Planning
Recruitment is a positive process. So, we need to find a sufficient number of potential
candidates that can be screened under the selection round to get the desired number of hires
with the best match with the job description. From the inputs received as part of the interviews
conducted with the employees at HUL, we can observe that the functional manager assesses the
requirement of a new hire in his department. He analyses both the numbers of candidates to be
selected as well as the skill sets required in those candidates. This information is further shared
with the HR Manager of the organization and the HR Manager develops the job description
with the inputs received from the functional manager.

2. Strategy Development
Once the job description is finalized. HR Manager develops the strategy to efficiently use the
sources of recruitment as well as the relevance of the sources on the basis of the nature of the
job. It’s very important to understand the recruitment funnel with respect to the position of
vacancy as well as the industry of interest. At HUL, a major source of recruitment is a referral.
Jobs are also posted on the careers section of the website as well as the newspaper. For hiring
the candidates at entry-level, HUL has a campus recruitment program. But, it was stated in the
interviews with the employees at HUL that the share of campus recruitment is significantly low
compared to other sources of recruitment.

3. Screening Process
Once the organization has a sufficient number of candidates applying for the job. Screening is
initiated as the first step of the selection process. Selection is a negative process, so the aim of
the hiring organization is to reduce the number of candidates at each step of the selection
process and find the best candidates suited for the position of vacancy. As Unilever hires nearly
30000 employees out of millions of applications on an annual basis it would be very difficult as
well as time-consuming for the organization to manual scan through each resume and they
might end up missing out on the best candidates in the pile of the applicants. With the
information received from the interviews conducted with the HUL employees, currently rely on
the external recruitment agency for finding the best set of candidates relevant for the job. But
they have plans to use artificial intelligence tools for screening of resumes.

4. Interview Process
Candidates with the shortlisted resumes are reached out via telephonic calls. These calls are
used to just get the basic information about the candidates. The actual interview process starts
with either a Group Discussion round or by the interview with the reporting manager for the
position of vacancy. Reporting manager has the best understanding of the nature of work for
which the candidate should be selected so he/she asks technical questions to the candidates to
understand the subject knowledge of the candidate to find the solutions. Later on, the candidate
goes through a more technical interview where his knowledge is tested and finally, he has to go
through the HR interview round where the cultural fitness of the candidate is tested.

4. Sources of Recruitment – (Internal and External)

For Entry level jobs there is only external recruitment. HUL organizes a campus recruitment
program for both Managerial and Non- Managerial positions. For senior job roles both Internal
and External recruitment mechanisms are used. For Internal recruitment HUL have their
company’s online portal where the job IDs are published for open positions. For External
recruitment referral method is used. Also, job roles are published in the social and print media
to attract competent candidates.
 18

5. Employee reach - Flexibility

The impact of covid-19 has increased the frequency with which managers of HUL
communicate with their employees and it has reduced the gap between the top management and
the rest of the employees in the company. For the field workers in manufacturing plants the
manager regularly visits to check on the employees and progress of the work. For the
managerial level jobs there were daily meetings that were held online for the regular updates.
Also, now the organization is not restricted to any particular region, it can have new employees
from all around the world.
 19

RECOMMENDATIONS

1. Usage of Assessment centers

This method consists of a series of tests and practical simulations that are used to test the skills
that cannot be assessed during interviews. It focuses on performance-related exercises to
simulate actual work situations. It consists of different components like In-Basket exercise,
Roleplay, Psychological tests, etc. This method not only helps in assessing the current
performance but also predicts future performance. It gives the organization an opportunity to
identify the candidates whose talent could not be tested during the interview, as the position
they applied to didn’t demand it but could be essential for the future. It also gives the candidates
a greater insight into the job they have applied for.

2. Usage of Integrity tests

These are specific types of personality tests that test the candidate’s tendency to be trustworthy,
dependable and honest. They are also strong predictors of job performance, and also
counterproductive behaviour like absenteeism. There are two types of integrity tests: The overt
test, which directly asks about counterproductive behaviour and the Covert test, which asks
questions from which conclusions can be drawn about likely integrity issues. Hiring low-risk
employees can also help in reducing turnover and improving productivity, as a company culture
is created that everyone deems safe.

3. Increase in external hiring

Conversations with HUL employees showed that they give preference to hiring through internal
referrals. Although this method saves time and cost, it has several drawbacks as well. The
organization could end up with a lot of like-minded people, which leads to a lack of fresh ideas
and perspectives. It could also lead to the formation of cliques. It is important to have a diverse
employee population for the business to achieve its full potential.

4. Start interview process with HR interaction

Starting the interview process with the HR round is important to identify how a candidate
would align with the company’s culture and values. Hiring candidates who are not culturally fit
can lead to increased turnover and recruitment cost. The selection process could become easier
if such candidates are eliminated in the initial rounds itself.
 20

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post-lockdown-2-0-hul-nestle-others-look-fundamentally-strong/2273949/
 21

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attractiveness. International Journal of Organizational Analysis, 22(1), 48–60. doi:10.1108/ijoa-
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the- coronavirus-on-hr-and-the-new-normal-of-work/?sh=3ed82b472b60
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Source: https://www.fortuneindia.com/opinion/the-hiring-landscape-in-the-fmcg-sector/104718
18. PTI (2020). COVID-19: No job, salary cuts so far but can’t say about future, says HUL, April 30,
2020; Source: https://www.financialexpress.com/industry/covid-19-no-job-salary-cuts-so-far-but-
cant-say- about-future-says-hul/1944801/
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referrals: Costs, yields, and the effects of geographic focus. European Journal of Work and
Organizational Psychology; Source: https://scihub.do/https://doi.org/10.1080/13594320500183709
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https://www.ibef.org/download/FMCG-July-2017.pdf
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the What and How of Organizational Communication to Employees During COVID-19
Pandemic: Adopting an Attributional Lens. The Journal of Applied Behavioral Science,
002188632093702. doi:10.1177/0021886320937026; Source: https://sci-
hub.do/https://doi.org/10.1177/0021886320937026
22. Sareen et al, Euromonitor (2020). Coronavirus Effect on Indian FMCG Industries and Services;
April 20, 2020; Source: https://blog.euromonitor.com/coronavirus-effect-on-indian-fmcg-
industries-and- services/
23. Singh, Mohan (2020). Impact of Covid-19 on HR practices and future workforce; May 10,
2020; Source: https://hr.economictimes.indiatimes.com/news/industry/impact-of-covid-19-on-
hr- practices-and-future-workforce/75653859
24. Shih, H.-S., Huang, L.-C., & Shyur, H.-J. (2005). Recruitment and selection processes through an
effective GDSS. Computers & Mathematics with Applications, 50(10-12), 1543–1558.
doi:10.1016/j.camwa.2005.08.026; July, 2005; Source: https://sci-
hub.do/https://doi.org/10.1016/j.camwa.2005.08.026
25. Thompson et al (2019). Referencing: Reinventing the Company in the Digital Age. United
Kingdom,UK
26. Vispute,Shweta (2020). Recruitment Process of FMCG Industry in Bangalore; February 11, 2020;
Source: https://www.7consultancy.in/blog/recruitment-process-of-fmcg-industry-in-bangalore.php
 22

APPENDIX A

Figure 1
Different Aspects of Recruitment Process
 23

Figure: 2
Steps in the Selection Process
 24

Figure: 3
Industry Analysis using Porter’s Five Forces Model
 25

Figure: 4
Organization Structure of Hindustan Unilever Limited
 26

Figure: 5
Structure of Human Resource Department of Hindustan Unilever Limited
 27

Figure: 6
Benefits of Collaborative Recruitment and Hiring Process
 28

EMAIL PROOF
29
 30

APPENDIX B

Interview Transcript 1

Interviewee: Ms. Priyam Joshi, Assistant CMI Manager, Unilever

1. What are the various steps in the recruitment process of the HUL?
Whenever there is a requirement to hire a new candidate in a team, the functional manager of
that team conducts a meeting with the HR Department Manager. Specific technical skill
requirements are shared with the HR Manager. The HR manager develops the job description of
the role and it is validated by the functional manager. In the case of external hiring, the job is
posted in the career section of the website, shared on the LinkedIn job section as well as using
the newspapers. Usually, the career section of the website is more updated than the LinkedIn
Job Portal. HUL focuses on quickly filling the vacancies rather than going through an elongated
process.

2. What are the various steps adopted by HUL in the selection of candidates?
After the recruitment process, the selection process is initiated. The focus is on hiring the best
quality candidate and also minimizing the time taken in the selection process to fill the
vacancies as soon as possible. After resume screening, candidates received telephonic interview
calls. This work is outsourced to partners. In this call, the basic details of the candidate are
noted. Then the 1st interview round is conducted by the functional manager. This round starts
with hygiene questions and ends with technical questions related to the job. The functional
manager has a very significant role in the selection of candidates. The second round is mostly
technical and it is conducted by both the functional manager and his/her superior.. Finally, the
HR interview round is conducted and the cultural fitness of the candidates is evaluated. After
this round, the final job offer is made to the selected candidates.

3. How does recruitment strategy vary for different hierarchies of positions?

For entry-level jobs, HUL has a campus recruitment program. For management students, we
have the Unilever Future Leadership Program. For non-managerial jobs, HUL has developed an
Executive Trainee Program. Unilever Internship Program is used to assess the quality of the
students before making them the job offers. For more senior jobs, there is both an internal and
external recruitment mechanism. In the internal recruitment mechanism, the jobs are posted on
the employee portals. In external recruitment, the major source of recruitment is through
referral. Online and print media is also used to share job opportunities to hire candidates.

4. What were the steps taken by HUL in the hiring process post-Covid-19 Pandemic?
There was no job or salary cut at HUL as a consequence of the Pandemic. Due to the
uncertainty caused during the pandemic, the young candidates were very stressed regarding
their onboarding process at HUL. But quick steps were taken by the Human Resources
Department and it was ensured that they were virtually on boarded on the allotted time.

5. How are the critical skills tested during the interview?

Rather than asking questions directly based on technical skills. At HUL, we look at candidates'
abilities in a case study based on situations similar to the real-life challenges faced by the
organization. We look at both the candidate’s aptitude to apply the solution as well as the
personality traits shown by the candidates in a stressful situation.
 31

Interview Transcript 2

Interviewee: Mr. Kalyanakumar, Senior System Officer (1998-2004)

1. What were the various steps in the recruitment process of the HUL?
The first step is to identify the type of recruitment: if it is a backfill or a new opening. The next
step is to identify the job specification. After the required information is gathered by the
Reporting Manager, it is sent to the Department Manager for approval. Post this an official
email requirement is sent to the HR Manager, who then looks for an internal referral, sends the
requirements to recruiting agencies and posts advertisements in the newspaper.

2. What were the various steps adopted by HUL in the selection of candidates?
The first step is the written test, in which the numerical and logical reasoning skills of the
candidates are tested. This is followed by Group Discussion and Personal Interviews. There are
three rounds of the personal interview (with Department Manager, HR Manager, etc.).

3. How did recruitment strategy vary for different hierarchies of positions?

For senior level positions, only 3 Personal interviews are conducted. But for the junior level
positions, it starts from the written test, followed by group discussion and interviews.

4. What software did HUL use during the process?

The skills required for each position are tested, and rated on a scale of 1-5. These ratings, along
with feedback comments are fed into an HR tool. The tool is used to save the employee data,
and also measure the eligibility of the candidate to proceed to the next steps of the selection
process based on predefined selection criteria (E.g., minimum score for each skill, minimum
average score).
 32

Interview Transcript 3

Interviewee: Ms. Vinti Arora, Engineering Manager, Unilever

1. What were the various steps in the recruitment process of the HUL?
As per my knowledge, HUL has two types of hiring processes. First is lateral hiring and other
process being of Campus Hiring. In the campus hiring process, HUL hires positions of BLT
from Tier 1 colleges like IITs & BITS Pilani. SLT are hired from the Tier 2 colleges like NITs
and ET are hired from the tier 3 colleges. For the lateral hiring, the job description is shared
with the external agency and they screen the candidates before the initiation of selection process
at HUL.

2. What is the selection process at HUL?

There are usually 3 rounds of interviews at HUL. But, structure of interviews is subject to the
position of vacancy.

3. How did recruitment strategy vary for different hierarchies of positions?

There is no change in the structure of process but there is definitely a change in the interviewers
as per the position of vacancy. At HUL, we have 4 bands of employees, they are Level 1, Level
2, Level 3 and highest level is Level 4. For hiring the employees for Level 1 position,
interviewers from Level 2 are sufficient to conduct the all three rounds. For hiring employee for
Level 2, for 1st interview is conducted by Level 2 employee with more seniority. 2nd interview
is conducted by the Level 3 employees. Third interview might be conducted by the Level 3 or
maybe Level 4 employee.

4. How technology has been used in HUL for recruitment process?

Right now, the screening is assigned to the external agency. But, HUL has recruitment
software’s in the process of development.

5. What were the steps taken by HUL in the hiring process post-Covid-19 Pandemic?
As per my understanding, HUL hasn’t made any significant change in their hiring process. Just,
the face-to-face interviews at campus are now been replaced by the virtual video call-based
interviews. Microsoft teams is used for the video call-based interviews.

6. How are the critical skills tested during the interview?

In the first round of interview all the technical skills are tested by the reporting manager. In the
second round of interview some technical skills along with soft skills are tested and in the final
round managerial skills are tested.