MOTIVATING & REWARDING PEOPLE: EMPLOYEE VALUE PROPOSITIONS TODAY

Transcription

1 MOTIVATING & REWARDING PEOPLE: EMPLOYEE VALUE PROPOSITIONS TODAY

2 TODAY S JOURNEY Employee Value Propositions Renewed importance Advances in behavioural science can help us to improve our propositions Considerations while scoping your EVP: 2

3 Defined as the set of attributes that the labour market and employees perceive as the value they gain through employment in the organisation [CEB, now Gartner, 2018]

4 IT S NOT NEW NEWS HOWEVER: 1. It has gained renewed importance: World of work shifting Expectations Multiple Generations *Complex and competitive labour market 2. Advances in behavioural science can help us to improve our propositions 4

5 Have you ever thought about why you get up in the morning?

6 The answers lie in our human desire to THRIVE

7 The challenge lies in the fact that thriving is not automatic

8 THE 3 PSYCHOLOGICAL NEEDS THAT UNDERPIN MOTIVATION AUTONOMY The need to perceive that we have choices & that we are self-directed MASTERY The desire to learn, to master something over time PURPOSE The desire for what we do to be in service of something larger than oneself. 8 *Read Dan Pink & Susan Fowler

9 A STRONG EVP IS MORE THAN JUST A COMBINATION OF BENEFITS It understands intrinsic & extrinsic motivation and balances tangible & intangible rewards It is everything that employees get in return for their time and effort It can be broken into 5 categories 9

10 EVP IS GENERALLY BROKEN INTO 5 CATEGORIES: GARTNER,

11 Before we talk about what this means when it comes to developing an EVP, who are we?

12 Strictly speaking Prodigy Finance is a cross border lending platform We set out in 2007 to solve something Founded on the philosophy that funding shouldn t be a barrier to education. Disrupting the traditional banking model Over the last 10 years we have made it our mission to make quality education accessible, using fintech to redefine the student loan market. We work with alumni, impact investors, and other private qualified entities who invest in tomorrow's leaders whilst earning a financial and social return. 12

13 PRODIGY FINANCE AT A GLANCE HEADQUARTERED IN LONDON (2007) OPERATIONS IN CAPE TOWN (2010) BUSINESS DEVELOPMENT HUB IN NEW YORK (2014) Our borrowers are future leaders from diverse countries, making our bonds smart and ethical investments. UK 7.8% Russia 5.1% USA 6.2% Rom 2.8% Turk 2.7% China 3.2% Nig 2.4% India 20.1% Brazil 5.9% Aus 2.3% Map of our student borrowers top 20 countries of origin full time employees $1bn Loan book by end Lives Change 80% of our student borrowers come from emerging market countries, 66% of whom return home after graduation 82% of our borrowers say they had no alternative funding options

14 We are proud of what we do & we knew that scoping an EVP that articulates who we are and what we stand for was critical to our success 14

15 DEVELOPING AN EVP IT MATTERS (ITS MORE THAN JUST A LIST OF BENEFITS) ACTIVE & DELIBERATE PROCESS UNIQUE & AUTHENTIC TO YOU ONGOING & ITERATIVE 15

16 OUR ROADMAP Basic components 1 2 Core concepts Level of detail will vary A look at our EVP 16

17 ORGANISATION On average, millennials would be willing to give up nearly $8000 (over R100,000.00) in salary to work in the right type of organisation Young professionals are thinking about more than money and are willing to sacrifice a portion of their salary in exchange for a career move that more closely aligns with their values MARKET POSITION How established are you Who are you working with PRODUCT / SERVICE QUALITY What are you doing / making Is it interesting / innovative Can they be proud to be associated with it PURPOSE Do you care to make a difference [because they do] Millennials care about the type of organisation they work Purpose over Paycheck Being part of something [that matters] 17

18 OUR BUSINESS IS DOING GOOD Fintech is good, disruptive Fintech is better. Like our team, our products are forwardthinking, and have broken boundaries, changing the way people access finance. We have top investors from around the world, and impressive backing, from likeminded people who also believe access to economic opportunity shouldn t be limited by where a person comes from. We encourage accountability, with empowered team members, and defined values that we live by. We have a number of social impact and responsibility initiatives closer to home, such as a day of volunteer leave and charity drives. We strive to build quality products based on sound engineering practices, releasing daily to satisfy our customer needs in a secure and responsible manner.

19 WORK Questions about what work will look & feel like are on the rise! Increase in questions about ways of working As work continues to shift, so too will expectations AUTONOMY MASTERY PURPOSE UNDERPINNING PHILOSOPHY STRUCTURE OF WORK OTHER 19 Informal & fun Autonomy Self-Direction Collaboration Cross functional teams Agile Type of work International Flexibility Flexi time Flexi place

20 WORK DAYS THAT CHANGE LIVES We know that work should be more than financially rewarding. It should be intellectually challenging, and it should create positive impact, on the people doing it, and on the world. The way we work is innovative, the engineering environment is agile, and we re always stretching our thinking and product offering. We work collaboratively, in cross-functional teams and across three global offices: Cape Town, London and New York. We keep things informal (and fun), and the growth environment keeps things creative and dynamic. We also keep things flexible, which allows for remote working and flexitime - if your team and position allow for it.

21 PEOPLE People make or break the experience Who you work with is increasingly considered a non negotiable element of the quit pro quo LEADERSHIP./ MANAGEMENT CO-WORKER / PEER QUALITY CAMARADERIE 21 Senior leadership reputation Manager quality * Continuous investment is key Will they like who they work with Will they have things in common with their peers Recruitment processes at Prodigy are designed to ensure that: We are religious about who we bring into the organisation Potential candidates are exposed to our people throughout the process We tell / show them that they will work with: Smart people Reputable leaders Diverse people People who are like minded in their commitment to do good In having fun while they do it Smell of the place Vibe

22 WE PUT THE FUN IN FUNDING We re made up of really, really smart people, and reputable leaders. And it s not all work and no play. Team dinners, weekly lunches, yoga classes, company events and hackathons are just a few of the reasons we spend time together as more than colleagues - and it s the quality of the people we work with that makes it worthwhile. Our team is made up of over 35 nationalities from around the world. Energetic, conscientious people with diverse interests and backgrounds - who are high performers with a passion for doing good.

23 OPPORTUNITY The desire to learn, grow and advance at work has increased: According to research conducted by LinkedIn, when candidates have to give their final answer on a job offer, one of the deciding factors for them is how your company would impact their career advancement Intrinsic Motivator: Mastery They want to learn & make an impact (& they are ok to move on when they have done so) How you engage with your team about the opportunity for career advancement & growth is critical & it can t be hot air! CAREER OPPORTUNITIES 23 DEVELOPMENT OPPORTUNITIES ORGANISATION GROWTH RATE

24 JUST GROW FOR IT You can t grow a business without growing its people. It s why we have a whole lot of opportunities for growth; Training budgets, study leave, a graduate programme, leadership and management workshops, and a strong career development philosophy and process. On top of more formal growth, we are a meritocracy. You ll have accountability and autonomy in your role. And the global exposure to team members and customers is invaluable. And it s not just that we believe in growing our people, the organisation is growing too, and fast.

25 REWARD - Dan Pink famously said pay people enough to take money off the table - Avoid: - Perceived unfairness - Potential worries / fears - Get them focused on the work and not the money COMPENSATION HEALTH & RETIREMENT BENEFITS VACATION - Work-Live Integration - Generous Leave Policies days annual leave - 1 day of birthday leave - 6 months maternity 4 months Paternity - Civic Responsibility Leave - Political leave 25

26 REWARD FOR REWARDING WORK Good work should be rewarded. It seems obvious, but not everyone thinks this way. We do. It s why we offer more than just competitive remuneration, although we do offer that. We also offer competitive bonuses, employee equity, and health and retirement benefits. You ll also get 24 annual leave days. A day of birthday leave, half a day for civic action, and we offer both maternity and paternity leave.

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28 CULTURE VIDEO 28

29 WHAT I KNOW TO BE TRUE The labour market is 90% candidate driven not defining your EVP has the ability to break your business into the future This is not an HR thing It s not enough that s your CEO s, Executives or Founding team s think they are clear on the EVP it needs to be carefully articulated It needs to be unique & authentic to you It might need you to let go of some of your tightly held beliefs about how you run your business Communicate it consistently across channels and, more importantly, ensure that once you know who you are and what you stand for, that those values underpin the way you engage and operate at all levels Measure your success and iterate as your business evolves, so should your EVP 29

30 Thank You

31 THE MISMATCH BETWEEN WHAT SCIENCE KNOWS AND WHAT BUSINESS DOES 31

32 THE WORLD OF WORK IS CONTINUOUSLY EVOLVING AGRICULTURAL INDUSTRIAL INFORMATION FUTURE is now Clear source of motivation if you were living on a farm work or go hungry. Cause and Effect was clear. Efficiency Division of labour Simple, repetitive tasks Productivity Contingent motivators If you do this Then you ll get that 1970 s shift to economy based on information technology Automation Emergence of knowledge workers People are paid to do things like thinking and creative problemsolving [i.e. More complex tasks] Contingent Motivation increasingly ineffective Technological advances continue to shrink the world. We can: Work/collaborate from anywhere Learn from anywhere Send and receive money from anywhere Multi-generational workforce The quit pro quo has intensified: All of which intensify the war for talent & increase the need for a well articulated EVP that understands motivation differently 32

33 A STRONG EVP IMPACTS THE BOTTOM LINE, AND MORE ATTRACTION BENEFITS Reduce the compensation premium needed to hire by 50% Enables the organisation to reach 50% deeper into the labour market to attract passive candidates RETENTION BENEFITS Increases the commitment of new hires by up to 29% Improves the commitment of employees by up to 37% An 11 percentage point decrease in annual turnover Engagement levels increase OTHER BENEFITS Right fit Broader range of values can result in a competitive advantage 33 CEB, 2016

34 PRODIGY BUSINESS MODEL Prodigy Finance s solution to education finance is a win-win for students and investors LBS INVESTORS SCHOOLS BORROWERS Investors Alumni, Foundations, Family Offices, Impact Funds, Institutional Lenders - Credit Suisse, etc. Can purchase bonds for one or multiple Universities or establish a warehouse facility [institutions only e.g. GS & DB] INSEAD Loans are originated by Prodigy Finance under partnership with Universities The high potential individuals from around the world that we lend to. Excellent loan book performance providing attractive and stable yield to investors, plus positive social impact International students secure funding, enabling and empowering a new generation of global talent 34

35 PROVEN MODEL Rigorous screening and enforcement whilst focused on a global base of super-prime prime borrowers Credit-worthy Strict university admissions criteria financing only students accepted at top universities provide the first level of risk screening. Community enforcement Alumni and other community members invest in bond funding their future fellow alumni. Risk screening Risk screening of every applicant in their home country using the best available data from bureaus to private investigators. Borderless model Legal model developed with Freshfields allows for enforceability and collections in 150 countries. Predictive scorecard Proprietary scorecard assesses future earning potential, built on thousands of data points. Provides a statistical view on a graduate s future debt to income ratio. Diversification Wide range of nationalities reduces exposure to geographic risk. The diversity of students sector experience and backgrounds limits concentration risk. 35