Increasing Market Value Through Talent

HR’s ad agency.

Increasing Market Value Through Talent

Windy City Summit │Chicago, IL │ May 25, 2016

HR’s ad agency. 2

Agenda

1) Focal Point – Employer Brand and Employee

Engagement

2) The Villain – The Perfect Storm

3) Definitions

4) Solutions

N. Robert Johnson, APR

Practice Leader, Workforce Communications


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Employer Brand and Employee

Engagement

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Banking institutions with an engaged

workforce and a stronger employer brand

outperform their peers.

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How So?

1) They attract and retain higher quality talent

2) Their people are more productive

3) They spend less on HR

But, what’s the connection to market value?

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“The full value of talent comes from how talent

choices affect those outside the

organization, not just inside.” – Dave Ulrich

Translation

In addition to being great employees, higher quality talent that is

engaged build stronger customer relationships which leads to

higher market value.Source: Taking Stock of Your Talent, Workforce, Dave Ulrich, February 2016

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Source: Universum/Richard Mosley

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Intangible Value

1) Market value comes from “intangibles” as a

group (i.e. strategy, brand, talent, etc.)

2) 30 percent of intangibles is related to quality of

leadership, based on research by Ulrich

3) Leadership = talent

4) To do: Run P/E comparisons for industry

competitors

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Apple’s 10 year P/E average = 22 while industry average = 14.6

50% of Apple’s $750 billion market cap is based on intangibles (22 – 14.6 = 7.4; 7.4/14.6 = 50 percent)

If leadership/talent is 30% of intangibles, Apple’s value of talent is $110 billion (30% of Apple’s intangibles)

Source: Taking Stock of Your Talent, Workforce, Dave Ulrich, February 2016

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Source: Boston Consulting Group


Perfect Storm



Warning: Perfect Storm Ahead

The impact of an improving economy, talent

mobility, weaker employer-employee

connections, and a consumer-driven

communications world increases the difficulty of

attracting and keeping critical talent.



The State of Talent1) Talent has more employment options than ever (small

business, gig-economy, start-ups)

2) Talent will research a new employment opportunity just as

they research everything else (consumer-driven behavior)

3) Talent has a heightened experience expectation in our

brand interactions, as well as shorter attention spans

4) Talent, generally speaking, is less connected to current

employers



1) While unemployment is at a seven-year low …

2) It’s taking 8% longer to hire and

3) It costs 7% more to hire candidates (Bersin by Deloitte 2015)

The average cost-per-hire is $4,200 with increases in the high-

tech, financial and manufacturing industries. (ERE, 2015)

The State of Talent



The State of Talent

74% of employees are open to a new job (Jobvite 2016)

45%of employees are not actively seeking but are

open to a new job (Jobvite 2015)

51%

of workers are satisfied but are open to a new

job (70% of Millennial males satisfied and open) (Jobvite 2016)



2016 Outlook

on the state of

talent

competition

Significant increase 35%

Some increase 56%

No 10%

1 in 3 employees are planning to leave their current organization

within the next 12 months.

Source: Future-Proofing HR Mercer, 2016

The State of Talent



An unstable workforce erodes culture and is

extraordinarily expensive.

• Increases HR spending (recruitment, rehire,

interventions, etc.)

• Decreases productivity and engagement (both

within individual role and throughout the

unit/group)

Impact



The average cost of turnover is between 90%

and 200% of an exiting employee’s base

salary and represents 12% of a company’s

operating budget.

Source: Fortune 100 Best Companies to Work For® 2016

Impact



A disengaged employee costs an organization

approximately $3,400 for every $10,000 in

annual salary. Disengaged employees cost

the American economy up to $350 billion per

year due to lost productivity.

Source: Gallup Organization

Impact



But, here’s the good news: On average, the

Fortune 100 Best Companies see half of the

voluntary turnover of their industry peers.


Impact



There is a direct connection between trust and

purpose; and engagement and retention. Research

shows that employees feel a great workplace is

one where …

• There is trust between employees and employer

• Employees take pride in their work

• Employees enjoy the people they work with




Employees who want to stay for a long time

report:

• My work has special meaning, it’s not just

a job

• When I look at what we accomplish, I have

a sense of pride

• I feel I make a difference hereSource: Fortune 100 Best Companies to Work For® 2016



Why executives love their jobs …

• 47% workplace relationships

• 21% company culture/values

• 18% growth opportunities

• 4% pay/compensation Nearly 70% say that working for

a company that is aligned to

my values would dramatically

improve their feelings about

their job.

Source: Korn Ferry Hay Group, 2016



1) People are looking to connect in a deeper,

more meaningful way with their

employers

2) They will connect when there is alignment

with mission, culture and values

3) This creates pressure to define and

articulate culture, mission and values


Definitions



Employees’ commitment to the

organization and willingness to give extra

effort to their employer.

Employee Engagement



Line of Sight + Commitment

(I know what I have

to do and why)

(I have the commitment, motivation

and I’m empowered to do what I

have to)

Employee Engagement



Employer branding is the story of you as an

employer.

But, it’s a story of your employment

experience as formed and told by the

everyday experiences of your employees.

Employer Brand



Employer brands are made up of …1) Employer brand promise (what we stand for,

mission/culture/values)

2) Employer brand attributes (the things that connect us)

3) Employer brand architecture (how to express it –

words, images, behaviors, actions)

4) Employee value proposition (specific elements of the

employer-employee employment deal)



The strongest employer brands reflect the

validated story of an organization’s

employment experience.

Employer Brand Strength Continuum weaker stronger

“We’ll just go

with what we

think”

“We’re using

validated

employee

perspectives”

Source: David Group, Workforce Communications Practice


Solutions



Embrace the Fortune 100 Best Companies

to Work For® model and create a great work

environment, one that attracts and engages.

But, understand that it’s much more than just

advertising, marketing and communications.



Walking the

Talk

I See(Every Day Experiences)

ImperativeAlign your employees’

everyday experiences

and your internal

branding and

communications Based on work by Johnson, D’Aprix and Quirke

High

Low

FoundationExperience softens attitudes; solid

foundation for internal

communications programs; but

employees will have a hard time

committing without communication

reinforcement

PerformanceCommunications and experiences

are aligned; strong commitment to

leadership and direction of

organization

AdriftNo one knows what matters; risk

of high disengagement; distrust in

leadership and self

LostEmployees distrust what they are

told; dissonance between sight

and messages; potential

disconnection between aspirational

and authentic employment story

Low High

I’m Told(Branding/Communications Effectiveness)



Among the Things I’m Told• Leadership communications

• What manager/supervisor says

• Rewards communications

• Statements of mission and values

• “State of the business” communications

• Employer branding messaging

Among the Things I See• Leadership behavior

• Manager/Supervisor does

• Rewards given out

• Workplace decisions

• “State of the business” seen

• Employer branding experiences

• What colleagues say

• What friends say

• What peers say

• Reputation in community

See – Told Differences



1) As deeply as possible, understand your workforce (the

elements of “walk” versus “talk”)

2) Use employer branding to define and communicate your

mission, culture and values throughout the employee lifecycle*

3) Use internal communications to connect and drive

engagement

1) Pay particular attention to on-boarding messages and

reinforcements

4) Become active listeners and accept the principles of “all-way”

communication* Lifecycle found in Addendum



Employee Understanding

Among the ways to better understand your employees …

• Employee engagement surveys

• Focus groups and stakeholder interviews

• Stay and exit interviews

• Communications audits and testing

• Reputation monitoring and assessments

• On-going active listening programs



High-performing employer

brands are …

• Planned

• Systematic

• Purposeful

• Aligned to business

needs


Employer Brand

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The power of internal

communications

Retain great people

Help great people

accomplish great things

Empower great people to tell your great story

Create a great

workplace environment

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Employee Communications

High-performing employee

communications are [also] …

• Planned

• Systematic

• Purposeful

• Aligned to business needs



Hierarchy of Engagement

Communications

Success

Senior Most Leaders Involved in Shaping

Communications

What success looks likeCommunication

Integral to

Change

Leader and Line

Managers create

Line of Sight

Managers’

Actions Support

Words

Making it workActivity Links to

Business

Strategy

Evaluation Data

Acted Upon

Feedback

Known to Senior

Management

Line Managers

Trained and

Evaluated

The basicsSkilled

Communications

Planned

Messaging and

Timing

Old and New

Channels

Listening and

Intelligence

Gathering

Line Managers

Clear about

Role

Based on work by Towers Watson, Melcrum and D’Aprix



One more thought …

Appeal to a customer’s reason and you’ve got

them for the day.

Appeal to their emotions and you’ve got them

for a lifetime.

Source: Lippencott Consultancy


N. Robert Johnson


216.685.4486 │[email protected]

davidgroup.com

The David Group Inc. All rights reserved.

mailto:[email protected]

http://www.davidgroup.com/


ContactN. Robert Johnson, APR


The David Group

216.685.4486 (direct) 216.410.5258 (cell)

[email protected]

www.davidgroup.com

mailto:[email protected]

http://www.davidgroup.com/

HR’s ad agency.

HR’s ad agency.

We apply advertising and marketing practices to

help organizations attract and retain talent.

The focus of The David Group’s workforce

communications practice is to strengthen

employer brands, engage people and cut the

cost of talent.

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Employer Branding for attraction Employer brand and employee communications for retention

• Social Media

• PR/Publicity

• Employees

• Patients

• Careers site

• Talent

community

• Special

events

• Corp. site

• Mobile site

• EE Stories

• ATS

• Mobile site

• Recruiters

• Hiring Mgr

• Process and

updates

• Offer

• Alignment

experience

• Collateral

• Initial

engagement

• EE comm

• Leadership

comm

• Rewards

• Engagement

drivers

• Exit interview

• Social media

• Special events


Employee Lifecycle