Revenue Exceeds 1 Billion! Unilever’s “U-shaped Work Model”

2024-05-14 10:42:24

As we set out to reshape work patterns, a key consideration is how these changes contribute to sustainability—can these new ways of working effectively reduce carbon emissions for individuals and businesses? At first glance, adopting new forms of work patterns such as reducing commuting and business trips certainly seems to have a positive impact on

As we set out to reshape work patterns, a key consideration is how these changes contribute to sustainability—can these new ways of working effectively reduce carbon emissions for individuals and businesses? At first glance, adopting new forms of work patterns such as reducing commuting and business trips certainly seems to have a positive impact on slowing down carbon emissions.

However, as I learned in my conversation with Alexandru Dincă, the Global Sustainable Development Director of Employee Experience at Unilever, the reality of this subject matter is more complex than it seems. Unilever is a global manufacturer of food and personal care products. Alexandru is part of a cross-functional team dedicated to providing a high-quality and streamlined work experience for its approximately 149,000 employees. The team’s expertise is wide-ranging, including business travel management, workplace design and safety, office equipment, HR services, recruitment processes, IT platforms and technical support, as well as enhancing the mobility of global employees.

In the team, Alexandru’s responsibility is to ensure the sustainability of employee experience. He pointed out that reducing carbon emissions should be seen as a priority when redesigning work methods. Alexandru mentioned that while many people might think remote work would significantly reduce the carbon footprint due to commuting, the actual situation of multinational companies indicates that usually 80% of employees live within 10 to 20 kilometers of the office. In developed countries, most employees usually choose to travel by public transportation; whereas in developing countries with less perfect public transportation, employees are more likely to drive to and from work.

Alexandru explained that employees who choose to walk, cycle, or use electric vehicles for commuting essentially produce no carbon footprint. Those who use buses, car-sharing, or drive hybrid vehicles generate low to medium levels of carbon emissions. Conversely, those who drive petrol vehicles on their own to work create medium to high levels of carbon emissions. Therefore, a crucial point is that we should actively encourage the group of employees who commute to the office to adopt low-carbon travel methods.

Another interesting finding from Alexandru is that employees under 30 use about 25% less energy on average than other age groups. Alexandru believes the reasons behind this include: Firstly, these employees typically live alone or with a partner, without children. Secondly, they are more inclined to use advanced technology and products, such as air conditioners that can be smartly controlled and improve energy efficiency. Finally, more young people like to work remotely and consider low public amenity reliance, good thermal insulation, and the use of renewable energy when choosing a place to live.

In summary, when assessing the potential impact of work patterns on the carbon footprint, it is very necessary to involve young employees, who can offer their insights and suggestions. Alexandru emphasized that by pooling ideas, Unilever can better understand the challenges faced by working from home in reducing carbon emissions and seize the opportunities that lie within.

The agile working model is increasingly becoming a trend in the modern work environment, reflecting the need to find a balance between reducing carbon footprint and retaining talent. At Unilever, Morag Lynagh and Prasid Jovial have embarked on a journey exploring the issue of flexibility since 2017. Together, they pursue a new path that combines market skill demands with resource flexibility, which they call the “third way.”

Prasid describes their vision, hoping to attract and retain talent in the long term through this approach. The importance of flexibility spans all age groups, not just for older employees, but also for those at other career stages. Morag highlights a focus on individuals aged 55 and above, emphasizing the need for their insights and wisdom, rather than having them warm the bench.

Addressing the needs of different age levels, Prasid draws a broad picture, from young graduates eager in the job market to employees in their thirties with side-hustle dreams, all seeking personalized career paths. Thus, Unilever targets a new type of employment contract to meet these diverse needs, aimed at overcoming the divide between traditional full-time and contract work, to create a new model of talent collaboration.

In the UK, some of Unilever’s senior management teams have started to implement the so-called “U-shaped work model.” This model allows employees to adjust their work cycles to the rhythm of their personal lives, making the standard 52-week work year more flexible. The work model not only includes prepaid wages but also integrates the concept of task hours, offering employees pensions, health insurance, and access to Unilever’s online learning resources.

This model has shown its real-life impact on three Unilever employees—Adam, Roy, and Susanna. For example, Adam joined the U-shaped work program after completing Unilever’s Future Leaders Program in supply chain, to combine work with travel. He participated in a full-time project for six months, satisfying both his desire for flexibility and the manager’s temporary but professional skill requirements.

In this increasingly diversified and flexible era of work, Unilever is exploring a unique work model to adapt to the ever-changing workforce demands. Adam is a perfect example of this model, an insider of the company, well-versed in corporate culture, with a valuable network, capable of integrating and getting to work quickly.

Roy, who has served as a manufacturing manager at Unilever for 45 years, is not ready to retire full-time, but his extensive expertise cannot be easily lost. Therefore, to balance personal and corporate interests, he transitioned to a performance mentor for business leaders, working onsite for two days and has continued for months.

Similarly, Susanna, a seasoned lawyer, sought to balance full-time childcare with professional development. By working part-time in Unilever’s legal team and consulting for emerging media companies, she not only achieved work-life balance but also had the opportunity to make her mark in a new field without worrying about workload or business stability.

By the first quarter of 2021, the so-called U-shaped work model had become widely popular in the UK, Mexico, Argentina, and the Philippines. Frontline managers in corporations reported that they were able to quickly find talent with key skills. Employees participating in the U-shaped work program generally did not opt to revert to traditional employment models.

In the summer, when asked about the progress of the U-shaped work program and its gains, Morag and Prasad indicated that the program made them realize that participants are often people with strong social skills and a trustworthy reputation. As the project advanced, they saw the necessity of creating a role of “connector” to help managers establish connections with U-shaped workers.

Moreover, the U-shaped work model is particularly suitable for jobs that can be broken down into independent tasks and projects, so that participants can complete them efficiently. However, not everyone is suited for this model. According to their estimates, only 2% to 4% of the workforce is interested in this. Even so, for Unilever, which has about 150,000 employees, this still represents a huge group of up to 4,000 people.

Currently, Morag and Prasad are exploring other flexible employment models, believing this to be a great opportunity to exercise creativity and redefine employment relationships. With exploration of more innovative employment models, they hope to unlock new possibilities, such as supporting paid sabbaticals for graduates and a wider group of people.

This constant exploration and practice of new work models is paving the way for the employment forms of the future, contributing new wisdom and strategies.