Employee Value Proposition. Make the Most of your HR Investment

Transcription

1 Employee Value Proposition Make the Most of your HR Investment 1

2 Workshop Goal: What is an Employee Value Proposition? 2

3 We help organizations dramatically improve performance and work through the friction points triggered by growth and transition. Leadership Development Human Resources Brand Strategy and Development Business Operations Product Marketing & Management Finance Intellectual Property Transform Grow BUSINESS PERFORMANCE Improve About Stratford Managers Expert Advise with Hands-on Implementation Support 3

4 Some Recent Clients 4

5 Stratford s leading expert on employee value proposition, engagement and retention programs Co-leading Stratford Leadership Development Certified in Change Management and Lean Six Sigma methodologies Former Board of Director for the Ottawa Region Rewards Association Your Presenter Dean Fulford, VP HR Consulting 5

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8 Talent shortages Multiple generations in workforce Constrained budgets Business Issues Being Faced Today 8

9 Cost per Hire -50% Amount of Attrition -25% Poor/moderate Good/strong (very likely to join your company) Poor/moderate Good/strong (very likely to join your company) Employer Brand Strength Employer Brand Strength What s the Business Case 9

10 According to BNA Bloomberg, on average, how much HR program budget is allocated by small/medium organizations? $1100 per employee $2600 per employee $3750 per employee Quick Quiz! 10

11 Assume 200 person organization Median HR expenditure = $2600/ee* Assume 20% misdirection Gives HR $104,000 to invest! Misdirected Program Spending 11

12 Put Your Money Where THEIR Mouths Are 12

13 Informs your investment in ALL your HR programs Identifies a winning employment strategy that can inform your leadership strategy and tactics The ROI for Conducing an EVP Review 13

14 E A Here s the deal Training and Development Wellness Strategy D B C Leadership Strategy Recruitment Strategy Understand organizational and employee needs Define the employee value proposition Align your primary HR strategies with the EVP EVP Assessment and Implementation 14

15 Organizational purpose and reputation A collegial work environment Culture of respect f(x) Leadership and Manager quality Development opportunities Compensation/status Job attributes Understand Organizational and Employee Needs 15

16 Compensation Mandate Development Culture Leadership Workplace Job 16

17 Compensation Mandate Development Culture Leadership Workplace Job 17

18 Compensation Mandate Development Culture Leadership Workplace Job 18

19 Compensation Mandate Development Culture Leadership Workplace Job The next set of questions asks about facets of the organization and how that can influence your day-to-day work Q6. life. I receive Using a constructive scale of 1 to feedback 7, where about 1 is strongly my disagree performance and 7 is strongly from my agree, manager. please select any number on the Q7. scale I have to a indicate clear career your roadmap level of agreement at the organization. or disagreement with each statement. Q1. The organization invests in my professional Q8. To me, a diverse workforce is an important development. characteristic of the organization. Q2. I'm committed to work here because of the Q9. Working in a global company makes my role more organization s reputation as an industry leader. interesting. Q3. The training programs helped me get up to speed Q10. The communication I receive enables me to stay quickly after I started working here. informed about our corporate strategy. Q4. I have career advancement opportunities working Q11. I have the opportunity to put forward ideas and with the organization. know that they will be considered. Q5. Pay is the main reason I am working here. Q12. I like that my workplace has an informal working environment. Test your Organization s (and Leader s) Hypotheses 19

20 It s Biology, not Opinion 20

21 Data Analysis Determine the Relative Impact of Factors Driving Attraction and Retention 21

22 Factor 1 42% Factor 2 39% Factor 3 14% Q1. 24% Q9. 21% Q7. 35% Q10. 18% Q2. 20% Q8. 18% Q6. 11% Q5. 9% Q3. 6% Q4. 4% Q11. 2% Q12. 6% Regression analysis determines the relative impact Factor analysis groups like behaving questions together Data Analysis Progression 22

23 Attraction Increases the size of the available talent pool Increases fit between organization and the candidate EVP attributes Organization Opportunity Workplace Retention Improves employee effort level and performance Improves retention 64 Leadership 63 Communication Tangible Rewards Attraction Index Intangible Rewards Retention Index A Strong EVP Drives Both Attraction and Retention 23

24 All Factors are not Drivers 24

25 Which of the following is the most influential to driving attraction to organizations? Pay and benefits (tangible rewards) Career and professional development Company reputation Quick Quiz! 25

26 Which of the following is the most influential to driving retention within organizations? Manager relationship Career and professional development Company reputation Quick Quiz! 26

27 100% Relative Importance of Drivers (Indexed to 100) 10% 16% 22% 4% 23% 10% Drivers Manager Effectiveness Communication Intangible Rewards Tangible Rewards Workplace Opportunity Organization 50% 28% The key to attraction emphasizing the organization and the opportunity 0% 48% Attraction 35% Retention The key to retention however, emphasizing tangible rewards and opportunity become increasingly important 27

28 Different audiences determine which are the most important for attraction versus retention Mandate Development Workplace Compensation Culture Leadership Job Compensation Development Mandate Job Culture Leadership Workplace Attraction Retention Attraction Retention Employees place increased importance on colleagues and leaders Contractors place increased importance on the job design and workplace EVP Drivers May Evolve Over Time and Audience 28

29 Performance (Average Score) Maintain Low Importance High Performance Be Aware Low Importance Low Performance Mean Importance Derived Importance (Correlation to Overall Index Score) Reinforce High Importance High Performance Mean Performance Focus High Importance Low Performance Key drivers are presented as a quadrant analysis in a focus map. The focus map clearly identifies opportunities (high importance and lower relative performance) and strengths (high importance and higher relative performance) The Focus Map Drawing Attention to Items That Have the Most Influence 29

30 Using data collected from the EVP survey, we have examined how to most effectively leverage the EVP to build a compelling employer brand strategy Combined, the drivers of the EVP inform how candidates are attracted to an organization and, once employed, areas that will increase commitment Increases the size of the available talent pool from which talent can be sourced Increases the fit between the organization and job candidates Index of Attraction Index of Retention The EVP Informs Your Employer Brand Strategy 30

31 Let s Look Deeper 31

32 While all factors are important to some level, focus on those that have significant influence and strong alignment to strategy Use demographic data to influence tactics All Factors are not Drivers 32

33 Why How What 1. Clarify 2: Determine 3: Develop Driver Item Action Plan Relevance Prioritization Determine driver support of business strategy Determine opportunities to differentiate the organization from competitors Review item performance and importance Estimate required investment Assess feasibility for action Use demographic data to influence tactics Create strategy to leverage strengths for internal and external messaging Future Steps Develop Metrics Continually build EVP data Set EVP success metrics Develop a dashboard Communicate Invest in an end-to-end communication plan Use data to refine internal and external messaging Implementation Process 33

34 Core qualities that define the employee experience and priorities Identify 1. EVP Assessment or Review 2. Competitive Assessment Positioning and competitive differentiation Align 3. Employer Brand Positioning 4. Communication Plan Sustained brand building initiatives Optimize 5. Brand Campaign Establish and Promote an Evidence-Based Employer Brand 34

35 EVP Assessment Competitive Assessment Employer Brand Positioning Communication Plan Brand Campaign Engage key stakeholders to validate connection to business strategies and corporate values Review current data and program information Determine drivers of attraction and retention Research the competitive employer landscape and external perceptions Assess current corporate branding strategy for alignment with EVP Prioritize efforts to maximize impact on attraction and retention Develop audience personas, value propositions, objections, and key differentiators. Identity true, credible, relevant, distinctive and aspirational brand Design a multi-pronged plan that may include website, multi-media content, employee ambassadors, partner engagement, social media activity, blog content, events, guerrilla tactics, etc., all aligned with corporate and customer branding initiatives Activation of sustained employer brand building initiatives, building internal competencies and tools, and aligning with ongoing talent attraction and retention initiatives Establish and Promote an Evidence-Based Employer Brand 35

36 Make data your friend! Fuel your investment decisions with employee opinion! 36