Vertical integration ensures people management strategies support the business’s goals for success. This is where the HR function operates as a strategic partner to drive organisational success (Armstrong and Brown, 2019). Unilever demonstrates this by linking its people practice to the company’s strategy and values (Bartram, 2023). For example, Unilever’s Compass strategy aims to make its brands a “force for good” and achieve sustainable growth (Perry, 2023). Its HR policies support this by promoting sustainability mindsets through skill-building and reward systems. Unilever adjusts its performance management and incentives to support key strategic goals like sustainability and innovation (Gitsham, 2024). Crucially, Unilever links talent plans to business plans. For example, former CHRO Leena Nair, working with the CFO, integrated talent management with financial strategy to plan workforce needs for growth (CIPD, 2016). This vertical integration guarantees the people strategy delivers the necessary capabilities and culture for organisational success.
Unilever’s people practice also demonstrates effective horizontal integration. This means its different HR activities connect under broader people strategies. Research confirms that strategic HRM requires various aspects of people management to work together (Armstrong and Brown, 2019). This collaboration drives desired behaviours and meets performance targets. Organisations perform best when their HR practices function as a mutually supporting system. By integrating activities like learning and development, leadership programmes, and employee engagement initiatives, Unilever achieves this internal interaction. These support its Future of Work agenda (Unilever.com, 2025). For example, Unilever merged workforce planning with lifelong learning and involved employees early in change processes. This approach drives individual purpose with organisational change needs. The integration cuts across leadership development, skills training, and employee relations, ensuring all people’s practice areas collectively drive the company’s vision (Unilever PLC, 2021). Consequently, horizontal integration creates a consistent climate where practices from recruitment to talent development and reward complement each other (Martinson and De Leon, 2018). This interaction supports Unilever’s values, enhances performance, and underpins its overall people strategy.
References
Armstrong, M. and Brown, D. (2019). Strategic Human Resource Management: Back to the future? A literature review in partnership with. [online] Institute for Employment Studies. Available at: https://www.employment-studies.co.uk/system/files/resources/files/517_Strategic-Human-Resource-Management-Back-to-the-future-IES-CIPD-2019.pdf. Bartram, E. (2023). Bermans Employment Law: ACAS advice on performance management systems | Bermans. [online] Bermans.co.uk. Available at: https://www.bermans.co.uk/employment-law-acas-advice-on-performance-management-systems/. Gitsham, M. (2024). HR’s role in aligning a people and sustainability strategy - HR Magazine. [online] HR Magazine. Available at: https://www.hrmagazine.co.uk/content/comment/hr-s-role-in-aligning-a-people-and-sustainability-strategy. Perry, N. (2023). What is Unilever’s partner with purpose programme? [online] procurementmag.com. Available at: https://procurementmag.com/articles/what-is-unilevers-partner-with-purpose-programme.
