SCHOOL OF WESTERN SYDNEY

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Student name: Nguyen Minh Trang Student ID number: 21000296

UNIT AND TUTORIAL DETAILS

Unit name: Hunam Resources Management Unit number: HRM-T233WSB-3

Tutorial group: Tutorial day and time:
Lecturer or Tutor name: Dr. Le Thi Thanh Xuan

ASSIGNMENT DETAILS

Title: How successful is the AI application in Unilever’s selection process?

Length: 19 pages Due date: 13/08/2023 Date submitted: 13/08/2023
Home campus (where you are enrolled):

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ARO 00380 08/15

 FINAL ESSAY
How successful is the AI application in Unilever’s selection process?

HRM-T223WSB-3

Mrs. Nguyen Le Thanh Xuan

TABLE OF CONTENTS

1. INTRODUCTION.......................................................................................................................... 1
1.1 Unilever Company Background............................................................................................1
1.2 Reason to choose this topic.................................................................................................... 1
1.3 Objectives................................................................................................................................ 2
1.4 Scope of the analysis...............................................................................................................2
1.5 How to collect data................................................................................................................. 2
2. HOW SUCCESSFUL IS THE AI APPLICATION IN UNILEVER’S SELECTION
PROCESS?..........................................................................................................................................3
2.1 Literature review.................................................................................................................... 3
2.1.1 What is selection? (Juneja, P. n.d)............................................................................... 3
2.1.1.1 Selection method standards: ( Noe et al., 2019)....................................................... 3
2.1.1.2 Selection methods:......................................................................................................5
2.2 Findings................................................................................................................................... 7
2.2.1 How does Unilever make AI-powered selection decisions?....................................... 7
2.2.1.1 The new process launching AI program (Appendix 4)..................................... 7
2.2.1.2 What technologies, tools and data were used?...................................................9
2.2.2 Why is it so important for Unilever HRM to use AI in the recruitment process
and evaluate the process?.................................................................................................... 10
2.2.2.1 The problem that Unilever faces before applying AI in selection process.... 10
2.2.2.2 Results after coordinating with Pymetrics and HireVue to launch new hiring
program........................................................................................................................... 11
2.3 Discussion.............................................................................................................................. 12
3. CONCLUSION.............................................................................................................................13
4. REFERENCES............................................................................................................................. 15
5. APPENDIX................................................................................................................................... 17
 1. INTRODUCTION

1.1 Unilever Company Background

Unilever is one of the world's leading fast-moving consumer goods (FMCG) corporations. To

mention a few, it manufactures Dove, Lynx, PG Tips, Ben & Jerry's, Sure, Magnum, Knorr, and

Hellmann's. Unilever supervises its products' whole supply chain, from development and sourcing

through production, marketing, and distribution. According to Unilever (2023), 165,000 workers

worldwide develop brands that are sold in 190 countries and utilized by two billion people every

day.

Unilever, the Dutch-British consumer products conglomerate, has been employing artificial

intelligence to hire entry-level staff for the past year, and the corporation claims that it has

significantly enhanced diversity and cost efficiency. According to Mike Clementi, VP of human

resources for North America, the firm was looking to rejuvenate itself, and altering fresh talent

recruitment and selection was one method to accomplish so (Feloni, R., 2017).

1.2 Reason to choose this topic

The reality of human resource management (HRM) is being influenced by artificial intelligence

(AI). It is necessary for HR operations including recruiting and selection requiring predictive

decision-making. Identifying suitable individuals, matching evaluation methodologies with job or

performance-related criteria, and controlling administrative discretion in the hiring procedure are all

part of the hiring for talent strategy.

To evaluate potential employees, CVs and interviews are conducted, which provide measures for

performance that may be biased. The prejudice may be more pronounced among neurodiverse

personnel. Modern businesses always want to increase diversity and inclusiveness in their

workforces, but hiring a varied pool of applicants can be difficult due to unconscious biases and

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other hurdles that discourage different individuals from applying. Organizations need to apply

AI-based hiring technologies responsibly, with clear norms and monitoring, to ensure fairness and

transparency in the selection procedure. Based on Unilever's case in point of AI-based recruiting

and selection, this essay aims to demonstrate AI's influence on the staffing function.

1.3 Objectives

The purpose of this article is to determine Unilever's success in applying AI to the process of

selecting potential employees for positions within the company. To draw the final conclusion, this

article will answer 2 small questions: How does Unilever make AI-powered selection decisions?

and Why is it so important for Unilever HRM to use AI in the recruitment process and evaluate the

process? in the findings section. Finally, evaluate the success of Unilever's selection process based

on the data found.

1.4 Scope of the analysis

The scope of this article will be in the case of Unilever, specifically, the selection process to apply

modern technology through a combination of Pymetrics - a soft skills platform redefining hiring

and talent management - using data -driven behavioral insights and audited AI and HireVue - a

talent experience platform designed to automate workflows and make scaling hiring easy with text

recruiting, assessments, and video interviewing software.

1.5 How to collect data

The data and figures contained in the article were searched and fully referenced through research

articles and websites using the desk research method.

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 2. HOW SUCCESSFUL IS THE AI APPLICATION IN UNILEVER’S SELECTION

PROCESS?

2.1 Literature review

2.1.1 What is selection? (Juneja, P. n.d)

Employee selection is the process of matching the appropriate personnel with the proper jobs. It is

the process of aligning organizational requirements with people's abilities and qualifications. The

firm will receive superior employee performance by picking the best individual for the desired role.

Furthermore, the firm will see fewer absenteeism and staff turnover.

2.1.1.1 Selection method standards: ( Noe et al., 2019)

Four selection process criteria will be revealed in order to mitigate errors in personnel selection and

placement and, as a result, improve the organization's competitive position: reliability, validity,

generalizability, and utility.

1. Reliability is the degree to which a measure of physical or cognitive talents or attributes is

devoid of random error(SlidePlayer, n.d.).

- Knowing how one's score on a measure compares to another's score on the same

measure is referred to as test-retest reliability.

- True Scores and Measurement Reliability - The principle of consistency is

exemplified by measuring height at several periods. Even though height is meant to

be a constant feature, every time height is measured, somewhat different results are

produced.

- Reliability standards - the more reliable the measure, the more probable choices may

be made based on score differences.

2. Validity is the amount to which performance on the measure is connected to performance on

the job
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- Criterion-related validation establishes the validity of a personal selection process by

demonstrating a significant link between test results and work performance scores.

Criterion-related validity is classified into two types:

+ Predictive validation is a criterion-related validity research that aims to

demonstrate an empirical link between test results and job performance.

+ Concurrent validation is a criterion-related validity study in which a test is

given to all present employees.

- Content validation is a test-validation approach that demonstrates that the test items,

questions, or issues are a representative sample of the types of circumstances or

problems that occur on the job.

+ Content validation has two limitations:

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 ● The individual employed must have the necessary knowledge, skills,

or abilities at the moment of recruitment.

● Subjective judgment is extremely important in content validation.

3. Generalizability is the degree to which the validity of a selection process established in one

context extends to other settings. It was formerly thought that validity coefficients were

situationally specific, meaning that the amount of correlation between test and performance

would vary from organization to organization.

4. Utility is the degree to which the information offered by selection procedures improves the

efficacy of selecting employees in companies. Reliability, validity, and generalizability all

have an influence on utility. Even if utility is constant, other things will alter it. The

selection ratio, for example, which is the percentage of persons tested versus the total

number of applications, will influence utility as well as the number of people chosen, the

rate of employee turnover, and the degree of performance among those who choose to leave.

2.1.1.2 Selection methods:

1. Interviews (Andrea, M., 2022): Selection interviews are described as a conversation

started by one or more people in order to gather information and evaluate an

applicant's credentials for employment. Although interviews are the most commonly

utilized selection method, research indicates that they can be inaccurate, lacking in

validity, and biased against a variety of groups.

- Structured interviews include a precise series of questions meant to examine

employment experience, credentials, abilities, and motivation. Structured

interviews should contain defined evaluation criteria to assist interviewers in

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 judging the quality and effectiveness of the interviewees' replies.

Interviewers must be taught on how to conduct a structured interview

correctly, probe for further information, and accurately use rating criteria

when evaluating applicants. The rating system used to evaluate the

candidates' responses might range from 1 (not at all good) to 5 (extremely

satisfactory).

- The behavioral interview is based on earlier inquiries. Previous workplace

actions influence future workplace behaviors and results. If a salesman has

previously made €1.000.000 in sales, he is likely to be able to do it again. If a

cashier has been disrespectful to customers in the past, he is likely to do so

again.

Example: Tell me about a difficult sales objective you've met in the past.

How much did it cost? What did you do to get there?

- The situational interview exposes applicants to scenarios that they may face

or handle at work. They must describe how they would manage that

particular issue.

Example: For the last six months, a client has not paid for the company's

services. How would you go about getting the money? How would you

persuade the client to pay you?

2. Cognitive ability tests (Test Partnership, n.d.): Cognitive capacity reigns supreme

when it comes to predicting total work performance. Ability tests are obviously the

best indicators of success in complicated professional, technical, and management

tasks, particularly when it comes to "Task Performance" (as opposed to Contextual

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 Performance). The reasons for their efficacy are simple to comprehend. Cognitive

capacity enables people to learn more efficiently, solve issues, and make judgments,

which considerably improves task performance in any type of knowledge work.

- Verbal comprehension refers to the ability to understand and use written and

spoken words.

- Quantitative ability concerns the speed and precision with which one can

answer mathematical problems. (Appendix 1 for example)

- Reasoning ability refers to a person's ability to devise solutions to a wide

range of difficulties. (Appendix 2 for example)

3. Personality inventories (Test Partnership, n.d.): Personality Tests: A selection

technique assesses candidates' personality traits that are connected to future work

performance. Personality tests often assess one or more of the following five traits:

extroversion, emotional stability, agreeableness, conscientiousness, and openness to

experience.

2.2 Findings

2.2.1 How does Unilever make AI-powered selection decisions?

2.2.1.1 The new process launching AI program (Appendix 4)

Mike Clementi, a human resource executive with Unilever, explains to Thibodeaux, W. (n.d.) that,

given the fact that young workers have a strong online presence and use smartphones on a regular

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basis, it no longer makes sense for the company to continue recruiting only at their go-to college

campuses. According to Unilever PLC. (2023), Unilever's new method of recruiting and classifying

applications works like this:

➢ Unilever places targeted advertisements on job guidance websites and on Facebook.

➢ Individuals respond to the tailored advertisements by clicking on them.

➢ Unilever sends individuals who click on the advertisements to websites where they

may apply for entry-level employment. Much of the application is filled out using

information from the participants' LinkedIn profiles.

➢ The Unilever program checks all applications and eliminates more than half of the

prospects.

➢ Candidates that pass the algorithm play a series of 12 short online games created by

Pymetrics, a company that specializes in game- and algorithm-based candidate

evaluation and matching. The games are based on neurobiology and include tests

such as short-term memory. The game-based evaluation makes it more interesting,

relevant, dependable, and transportable, allowing Unilever's workforce effectiveness

to increase.

➢ Unilever asks the top third (or less) of candidates who finish the games to submit a

video interview on HireVue. Rather than recruiters or employers, the assessor is a

machine learning system. The system gains various benefits by utilizing verbal

computer-mediated communication (VCMC) technology, including cost and time

savings, greater convenience for applicants, and an improved image for the

company. Its video interview lasts around 3 minutes and asks candidates to answer

questions based on its goal of matching vacancy characteristics and personal

features.

➢ Final candidates are invited to an in-person interview with Unilever human resources

leaders and managers.

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Through games and preparation, prospective applicants are required to properly comprehend

Unilever's requirements. Using these game components, recruitment may be changed from a

time-consuming and stressful procedure to a fun and participatory experience for applicants.

By giving timely feedback, challenges, and prizes for their performance, gamification may help

keep applicants interested and motivated throughout the recruiting process. By incorporating game

aspects, the recruiting process focuses on vital know-how and capabilities rather than qualifications

and experience alone. Traditionally, recruiting entails enticing potential applicants, whereas

selection entails making a final decision. However, with gamification, these stages might converge

and overlap.

2.2.1.2 What technologies, tools and data were used?

Pymetric games enable the creation of thorough portfolios, allowing for a more quantitative

assessment of individuals' strengths and shortcomings than the traditional face-to-face interview

procedure. These profiles can then be compared against the values chosen by machine learning

algorithms as likely to indicate eligible applicants.

Unilever then interprets the data gathered through pre-recorded videotape interviews using

HireVue's facial image analysis technology. The cassettes are analyzed using computer vision and

natural language processing technologies to gather data points that can be automatically tagged to

offer indicators of personality qualities such as "sense of purpose," "systems thinking,"

"endurance," or "business acumen." These personality qualities can be compared to those who have

demonstrated success in the jobs being sought.

Unabot, which is based on Microsoft's robotics platform, is also powered by natural language

processing. It can interpret inquiries posed in normal human language and deliver responses

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regarding personnel positions, processes, and information using business data from internal papers

and company handbooks. Company continuity, benefits including as pension plans, and even shuttle

bus timings to and from Unilever sites are all factors to consider.

2.2.2 Why is it so important for Unilever HRM to use AI in the recruitment process

and evaluate the process?

2.2.2.1 The problem that Unilever faces before applying AI in selection process

Any recruitment procedure is fraught with danger. Posting job advertising, vetting candidates, and

onboarding new staff is a time-consuming and costly procedure. However, it must be done correctly

because employing the incorrect personnel may be costly and detrimental to the organization.

Recruiters have a limited amount of time to identify the proper applicants, and once they have a

shortlist, the window of opportunity to decide if the prospect is the right fit for the job closes. That

part does not. When hiring for their Future Leadership program, Unilever understood it had four to

six months to narrow from a pool of 250,000 individuals throughout the world to fill 800 open jobs

(HireVue, n.d.).

The expense of finding the appropriate person for the right job does not end there; according to the

Human Resource Management Community, the typical cost of training a new employee is between

6 and 9 months pay for that position (Huffington Post, n.d.).

2.2.2.2 Results after coordinating with Pymetrics and HireVue to launch new hiring

program

According to Feloni, R (2017), the employment makeover began with Unilever North America and

spread to 68 countries, was undertaken in 15 languages, and involved 250,000 applications.

Unilever released the following North American results from July 2016 to June 2017:

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Job applications more than quadrupled in the first 90 days of posting, reaching 30,000 from 15,000

in the previous year.

- Job applications more than quadrupled in the first 90 days of posting, reaching 30,000 from

15,000 in the previous year.

- Unilever hired the company's "most diverse class to date." There was a "significant" rise in

the number of nonwhite candidates hired, as well as an increase in the number of colleges

represented, from 840 to 2,600. Unilever stated that the socioeconomic composition of its

new personnel was less top-heavy, but did not specify by how much. In addition, gender

balance in hiring was nearly constant year over year.

- The average time it took to hire a candidate was reduced from four months to four weeks,

saving applicants 50,000 hours of time. Recruiters spend 75% less time analyzing

applications.

- The percentage of offers to candidates who advanced to the final round climbed from 63%

to 80%, while the rate of acceptance of these offers increased from 64% to 82%.

- The 12 Pymetrics games were completed with a 98% rate. Based on a poll of 25,000

candidates, the whole procedure received a 4.1 out of 5 rating.

Digital media, such as social media, is a center where recruiters may uncover thousands of people

that are possibly the greatest prospects for a job vacancy (Putri, 2018). Traditional techniques take a

long time and do not provide as many alternatives as digital media does. According to HireVue

(n.d.), not only has the process been significantly improved for candidates, saving over 50,000

hours in candidate time, but the Unilever team has seen over 1 million pounds in savings in just one

year, recruiting time saved of 75%, and the largest class of diverse hires (gender and ethnicity).

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 2.3 Discussion

When compared to traditional verbal computer-mediated communication (VCMC) technologies,

automation of the recruiting process makes a significant difference in minimizing human bias.

According to Mccoll and Michelotti (2019), both applicant and recruiter traits might cause signal

distortion, whereas VCMC technology widens the selection validity difference. Their findings also

imply that the memory effect causes a remember of a previous interview, which influences the

perception of subsequent interviews for both face-to-face and VCMC-based interviews. During the

assessing process, recruiters are inevitably influenced by their own restricted rationality, but the

usage of VCMC technology distances both interviewer and interviewee, as well as outcome and

objective. Recruiters and candidates are separated via video interviews (Mccoll et al, 2019).

Unilever mitigates this effect by removing recruiters from the process. Candidates are now the only

side influenced by distance, reducing random error and improving consistency. At the same time,

Unilever ensures that all feedback is delivered as soon as possible in order to preserve a

compassionate environment. Unilever is relying on AI to improve its staffing effectiveness. The

algorithm generates an authentic figure for each application by excluding the participation of

humans and human prejudice. At the same time, the internal development project provides distinct

qualities of desired personnel, which is important for external human resource sourcing. The

collaboration of Unilever's HR operations, aided by AI, increases its human resource

appropriateness to company culture and future development. Unilever pioneered innovation in the

recruiting and selection process throughout the fourth industrial revolution's digital transition.

AI is an ambitious attempt that employs an evaluation tool to complement recruiters' judgments and

automate the recruiting process. As a consequence, HR professionals may devote more time to

strategic and developmental thinking. The AI-based recruiting and selection process at Unilever is

separated into four stages: the impression process, the retention process, the selection process, and

the decision process. The selection phase will go deeper into the analysis. Unilever discovered two

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partners for this function: HireVue and Pymetrics. Its recruiting approach is centered on social

media (LinkedIn) and games, and its selection choice is based on video interviews, exams, and

group work, all of which are selected by recruiters and employer committees. According to Hire

Vue data, more than 80% of candidates' comments will be favorable till the end of 2021. It assisted

Unilever in saving around 50,000 hours (25%) and £1 million in recruitment expenditures. It had

the most varied racial and gender employee pool to date. The reduction of about 70,000

person-hours spent on interviewing and candidate assessment demonstrates Unilever's achievement

in AI-driven recruiting innovation.

3. CONCLUSION

Threats to the human resource selection process that firms confront include a high amount of

applications, candidate selection bias, and a shortage of competent applicants. While AI-powered

recruiting using natural language processing (NLP) solves such difficulties by automating or

improving different elements of recruitment, such as applicant sourcing, screening, and

interviewing. In 2016, Unilever began collaborating with HireVue and Pymetrics to develop an

AI-powered recruiting, selection, and admission system. This article examines Unilever's use of AI

in the application selection process. The brightest member is the greatest fit for the open roles. The

investigation will take place in the context of social networking sites such as Facebook and LinkIn,

as well as video games and vocal computer-mediated communication (VCMC). Unilever has saved

a significant amount of time and money, as well as enhanced the effectiveness of its human resource

management. Such AI-based decision-making technologies raise issues about bias and data privacy.

To summarize, recruiting talent using AI is an unavoidable trend that firms should follow.

Organizations profit greatly from the use of technology in hiring employees. Businesses can pick

competent and suitable individuals through the employee recruiting process.

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 4. REFERENCES

1. Andrea, M. (2022, January 6). Three effective personnel selection methods. Andrea

Miriello. https://andreamiriello.com/three-effective-personnel-selection-methods/

2. Feloni, R. (n.d.-b). Consumer-goods giant Unilever has been hiring employees using brain

games and artificial intelligence - and it’s a huge success. Business Insider.

https://www.businessinsider.com/unilever-artificial-intelligence-hiring-process-2017-6

3. Global Talent Acquisition Strategy: HireVue + Unilever. hirevue.com. (n.d.).

https://www.hirevue.com/customers/global-talent-acquisition-unilever-case-study

4. Human Resource Management gaining a competitive advantage - ppt video online

download. SlidePlayer. (n.d.). https://slideplayer.com/slide/5710223/

5. Juneja, P. (n.d.). MSG Management  Study  Guide.

https://www.managementstudyguide.com/employee-selection-process.htm

6. Mccoll, Rod & Michelotti, Marco. (2019). Exploring video-interview recruitment practice in

HRM. Human Resource Management Journal. 29. 10.1111/1748-8583.12249.

7. Noe, R. A., Hollenbeck, J. R., Gerhart, B. A., & Wright, P. M. (2019). Human

resource management : Gaining a competitive advantage. Mcgraw-Hill Education.

8. Putri. (2018, July 31). Unilever applies digital hiring, here are the 3 benefits.

Integrity Indonesia.

https://www.integrity-indonesia.com/blog/2018/07/31/unilever-applies-digital-hiring-

here-are-the-3-benefits/

9. Unilever PLC. (2023). Retrieved from https://www.unilever.com/our-company/at-a-glance/

10. Unilever PLC. (2023, February 13). Game on! our graduate recruitment drive’s gone

digital. Unilever.

https://www.unilever.com/news/news-search/2016/game-on-our-graduate-recruitment-drives

-gone-digital/

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11. TheHuffingtonPost.com. (n.d.). HuffPost - Breaking News, U.S. and World News. The

Huffington Post.

https://www.huffingtonpost.com/julie-kantor/high-turnover-costs-way-more-than-you-think

b9197238.html

12. Thibodeaux, W. (n.d.). Unilever is ditching resumes in favor of algorithm-based sorting.

https://www.inc.com/wanda-thibodeaux/unilever-is-ditching-resumes-in-favor-of-algorithm-

based-sortingunilever-is-di.html

13. 3 most effective personnel selection methods for hiring. Test Partnership. (n.d.).

https://www.testpartnership.com/blog/personnel-selection-hiring-methods.html

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 5. APPENDIX

Appendix 1: Cognitive ability tests - Quantitative ability example

Source: https://www.testpartnership.com/blog/personnel-selection-hiring-methods.html

Appendix 2: Cognitive ability test - Reasoning ability example

Source: https://www.testpartnership.com/blog/personnel-selection-hiring-methods.html

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Appendix 3: Selection process before transformation

Source: https://www.hirevue.com/blog/hiring/how-unilever-attracts-millennial-talent

Appendix 4: Procedure after AI application

Source: https://twitter.com/UnileverArabia/status/924208880464297984

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