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Presentation from the ERE Expo Fall 2009, presented by Mitzi Adwell
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Page 2 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Agenda
Employment Value Proposition (EVP) Defined A Methodology
(tools/templates) (inputs/data gathering/analysis)
Aligning the EVP to Talent Management processes Competitive Advantage (attraction) Candidate Experience (evaluation) Employee Engagement (retention)
Advantages of Employing an EVP Strategy For the candidate/employee
For the employer
Case in Point: Volkswagen Group of America
Conclusion
Page 3 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Employment Value Proposition Defined
Page 4 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
The Employment Value Proposition – A Methodology
Rewards Opportunity Work Organization People
Compensation Benefits
Development Advancement
Nature of Work Match to Interests
Org Size Market Position
Managers Co-workers
Page 5 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Employment Value Proposition Attributes
Work
• Work Life Balance • Job Interests Alignment • Location • Recognition • Innovative • Level of Impact • Business Travel
Rewards
• Compensation • Health Benefits • Retirement Benefits • Vacation
People
• Co-Worker Quality • People Management • Collegial Work Environment • Manager Quality • Sr. Leader Reputation • Camaraderie
Opportunity
• Stability • Future Career Opportunity • Developmental Opportunity • Meritocracy • Growth Rate
Organization • Respect • Ethics/Integrity • Empowerment • Product/Service Quality • Technology Level • Diversity • Market Position • Formal/Informal Work Environment • Brand Awareness • Social Responsibility • Industry Desirability • “Great Employer” Recognition • Customer Prestige • Environmental Responsibility • Organization Size • Risk Taking
Page 6 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Employment Value Proposition Attributes Defined
WORK Work Life Balance The extent to which the job allows you to balance your
work and your other interests Job Interests Alignment Whether the job responsibilities match your interests Location The location of the jobs the organization offers Recognition The amount of recognition provided to employees by the
organization Innovative Work The opportunity provided by the job to work on
innovative, "leading edge" projects Level of Impact The level of impact the job has on outcomes Business Travel The amount of out-of-town business travel required by
the job REWARDS
Compensation The competitiveness of the job's financial package Health Benefits The comprehensiveness of the organization's health
benefits Retirement Benefits The comprehensiveness of the organization's retirement
benefits Vacation The amount of holiday/vacation time that employees
earn annually PEOPLE
Manager Quality The quality of the organization's managers Coworker Quality The quality of the coworkers in the organization People Management The organization's reputation for managing people Collegial Work Environment Whether the work environment is team-oriented and
collaborative Sr. Leadership Reputation The quality of the organization's senior leadership Camaraderie Whether working for the organization provides
opportunities to socialize with other employees
ORGANIZATION Respect The degree of respect that the organization shows
employees Ethics/Integrity The organization's commitment to ethics and integrity Empowerment The level of involvement employees have in decisions
that affect their job and career Product/Service Quality The organization's product or service quality reputation Technology Level The extent to which the organization invests in modern
technology and equipment Diversity The organization's level of commitment to hiring a
diverse workforce Market Position The competitive position the organization holds in its
market(s) Formal/Informal Work Environment Whether the work environment is formal or informal Brand Awareness The level of awareness in the marketplace for the
organization's brand(s) Social Responsibility
The organization's level of commitment to social responsibility (e.g., community service, philanthropy, etc.)
Industry Desirability The desirability of the organization's industry to the respondent
"Great Employer" Recognition
Whether or not the organization's reputation as an employer has been recognized by a third party organization
Customer Prestige The reputation of the clients and customers served in performing the job
Environmental Responsibility The organization's level of commitment to environmental
health and sustainability Organization Size The size of the organization's workforce Risk Taking The amount of risk that the organization encourages
employees to take OPPORTUNITY
Stability The level of stability of the organization and the job Future Career Opportunity The future career opportunities provided by the
organization Development Opportunity The developmental/educational opportunities provided
by the job and organization Meritocracy Whether or not the employees are rewarded and
promoted based on their achievements Growth Rate The growth rate of the organization's business
Page 7 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Typical inputs to the Employment Value Proposition
Page 8 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Aligning the EVP to Talent Management Processes
Although the most common benefits cited in Employer Branding research are enhanced recruitment and retention as well as increased engagement/commitment, Employment Branding applies to all facets of talent management.
Workforce Planning: Getting the right people in the right place at the right time Outreach: Recruitment marketing efforts to generate awareness about the company Sourcing: Strategies to attract targeted talent for organizational fit Selection: Evaluating talent for organizational fit Onboarding: Orienting new hires to the company/culture Retention: Increasing employee satisfaction and reducing turnover
With a focused brand strategy, organizations can realize a positive impact across all talent management operations.
Page 9 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Components of an EVP
Competitive Advantage Marketing the message: A well defined EVP identifies the competitive differentiators based on the preferences of critical talent and the core attributes based on their perceptions. The combination of that study spells out the competitive advantage to include in the employment branding messages
Candidate Experience The Evaluation process: Candidates are evaluating the company as much as the company is evaluating them through the hiring process. Educating the recruitment teams and hiring managers on the EVP study results allows them to evaluate and sell candidates on realistic aspects of the culture that ensure a good organizational fit
Employee Experience The Retention factor: An EVP study helps to understand what is most important to critical talent. Therefore where HR investment dollars should be prioritized and spent
Page 10 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
The Pathway to Competitive Advantage
Preference: The employment related attributes most ‘preferred’ by your employees.
Perception: How your employee population ‘perceives’ your company is performing against the most preferred attributes.
Core Attributes: Those attributes which are both highly preferred and perceived as strengths in a company.
Competitive Advantage: Core Attributes which differ from industry norms.
Page 11 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
A Positive Employee Experience
Tools & Processes: Once the desired EVP is identified & understood, it can be incorporated into the recruiting evaluation tools such as; screening forms, interview questionnaires, debrief meetings.
Training: The competitive advantage messages should be communicated throughout the organization to ensure a consistent message to candidates throughout the evaluation process.
Ensuring Organizational Fit: Candidates receiving consistent messages make better decisions in the long-run. Ensuring a better fit and increased retention.
Page 12 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Re-engaging your Employees
Understanding Perception: The attributes most ‘preferred’ by your employees could change over time.
Reviewing Alignment: How your employee population ‘perceives’ your organization is typically very closely aligned with the EVP. As the EVP changes, ensure the organizational culture is in alignment
Quantitative Reviews Are Not Enough: In addition to performing the quantitative analysis, use focus groups to ask questions and solicit competitive intelligence from your employees
Page 13 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Advantages of Employing an EVP Strategy
The Advantages of an EVP strategy are enjoyed by both the Company and the
Employees
Page 14 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
For the Employee: Functional and Emotional Benefits
Functional benefits of Employment Brand
– Hourly wages or salary (Rewards)
– Stable work environment (Opportunity) – Equipment needed to perform (Organization)
Emotional Benefits of an Employment Brand
– Value from total work experience (Work)
– Satisfaction with work performed (Work) – Feeling valued by colleagues (People)
– Belief in quality, purpose and mission of organization (Organization)
These important elements to the Employment Brand can sometimes be taken for granted
Page 15 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
For the Company: Lower Costs
Towers Perrin study in 2003, over 35,000 employers found a clear correlation between employee engagement and cost of goods sold
AON study in 2000 found that the cost to replace an employee is equal to ½ their annual salary
The Conference Board estimates the cost to replace middle manager is as high as 1.5 times annual salary
Hewitt study found that companies in Fortune’s 100 best companies to work for had average turnover 50% lower than other companies resulting in significantly reduced recruiting costs
Page 16 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
For the Company: Customer Satisfaction
Page 17 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
A case study: Volkswagen Group of America (VWGoA)
• Volkswagen AG is the world’s third largest automaker
• Brands sold in the U.S. include Volkswagen, Audi, Bentley, Lamborghini, Bugatti
• 2,500 employees in the U.S.
• Facilities in 13 states
• 350 employees at U.S. headquarters in Herndon, Virginia as of April, 2009
• Over 800 U.S. dealerships
• Over 350,000 vehicle sales annually
• Goal to sell over one million cars in the U.S. by 2018
• U.S. production facility recently announced for Chattanooga, Tennessee to employ 2,000
Page 18 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
A new way of working…
– Dynamic, Fast – Collaborative – Customer Focused – Bold and Fresh Thinking – Performance Driven – Trust Based – Creative
September 6, 2007 we hit the
Button…
And announced a “new start”…
– Implementation of a new company structure
– HQ Relocation to Herndon, VA
– New VWGoA Management Team Structure
– The potential of U.S. Production
– Resource consolidation/optimization and.…
Volkswagen Group of America, Inc. - Transformation
Page 19 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Michigan
Virginia
Relocation of U.S. Corporate Headquarters
Page 20 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Talent Management Challenges: Identifying the Tasks at Hand
May Jul Oct Mar 2008
Jun Nov Dec Apr Sept Aug Sept Oct Nov 2007
Dec Feb Jan
Announcement of H.Q. Relocation
Employee Notifications
Employee Relocation Decisions Due
Transfer of Operations Period
Workforce Transfer Plans Complete
Beginning Relocation of Corporate H.Q.
Complete Relocation of Corporate H.Q.
Targeted End Dates for Auburn Hills, MI Support
Timeline
Page 21 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
EVP: Understanding the “Before” Picture
Approach to Analyze the Existing EVP
Conducted 14 focus groups to survey the 154 employees that were invited to the new location, asking them:
• What attributes were most important to them when selecting a career (Preference)
• How VWGoA rated in delivering on those attributes (Perception)
Page 22 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
EVP: Understanding the “Before” Picture People
• Co-Worker Quality • People Management
• Collegial Work Environment
• Manager Quality • Sr. Leadership
Reputation • Camaraderie
Opportunity • Stability
• Future Career Opportunity
• Developmental Opportunity • Meritocracy • Growth Rate
Work • Work Life Balance
• Job Interest Alignment • Location
• Recognition • Innovative
• Level of Impact • Business Travel
Rewards • Compensation • Health Benefits
• Retirement Benefits • Vacation
3.29 3.00 3.16 3.30 2.23 3.00 4.40 3.21 3.53 3.76
Existing talent places value primarily on Work & Opportunity
They rate work experiences high, while opportunity experiences are rated lower 3.16 and above 3.00 and below
Organization • Respect
• Ethics/Integrity • Empowerment
• Product/Service Quality
• Technology Level • Diversity
• Market Position • Formal/Informal Work
• Environment • Brand Awareness
• Social Responsibility • Industry Desirability • “Great Employer”
Recognition • Customer Prestige
• Environmental • Responsibility
• Organization Size • Risk Taking
Page 23 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
The Process: Identifying Forward-Thinking EVP attributes
3.00 3.21 4.40 3.53 3.76 3.13 2.75 2.54 3.27 3.27 3.29 2.50
Organization • Respect
• Ethics/Integrity • Empowerment
• Product/Service Quality • Technology Level
• Diversity • Market Position
• Formal/Informal Work • Environment
• Brand Awareness • Social Responsibility • Industry Desirability • “Great Employer”
Recognition • Customer Prestige
• Environmental • Responsibility
• Organization Size • Risk Taking
Opportunity • Stability
• Future Career Opportunity
• Developmental Opportunity • Meritocracy • Growth Rate
Rewards • Compensation • Health Benefits
• Retirement Benefits • Vacation
Work • Work Life Balance
• Job Interest Alignment • Location
• Recognition • Innovative
• Level of Impact • Business Travel
People • Co-Worker Quality
• People Management • Collegial Work
Environment • Manager Quality • Sr. Leadership
Reputation • Camaraderie
Attributes sought in talent that will be coming on board in the new location should place value primarily on
Work & Organization
Page 24 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
EVP Planning “After” Picture—a Clear Path from Current to Desired Attributes
Current Desired Innovative Work Level of Impact
Job Interests Alignment Work Life Balance
Stability Future Career Opportunity
Meritocracy
Empowerment Respect
Manager Quality Collegial Work Environment
Compensation
Opportunity
Market Position Brand Awareness
Risk-Taking Ethics/Integrity Empowerment
Respect
Innovative Work Level of Impact
Job Interests Alignment
Co-Worker Quality Collegial Work Environment
Meritocracy
Organization
Red = Where current attributes align with desired attributes Black = Where current attributes are less relevant Blue = Where desired attributes need to be valued
Work
Work
Opportunity
Organization
People
Rewards
People
Page 25 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Putting it Together—Connecting Competencies and EVP Strategy
Innovative Work Level of Impact Job Interests Alignment Meritocracy
Market Position Brand Awareness Risk Taking Empowerment
Collegial Work Environment Co-Worker Quality Respect Ethics/Integrity
Attribute
“Con
nect
ing
With
Our
Cus
tom
ers”
Product
Dealer Network
Brand Positioning
Local Production
Organization
Business Strategy
Dynamic, Fast, Creative Performance-Driven
Customer Focused Bold, Fresh Thinking
Collaborative Trust-Based
Organizational Culture
Teamwork
Competency
Innovation Performance-Driven
Customer Focus Change Leadership
Page 26 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
In Conclusion…
Build…your business case
Identify…your Employment Value Proposition Create…your Employment Brand
Execute…your communications strategy
And remember, the two fundamental goals of the Employment Brand are
– Provoke the right talent to leave whatever they are doing and accept employment with your organization (attraction)
– Induce them to resist offers from other organizations and continue their employment with yours (retention)
Page 27 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.
Closing
Thank You
Mitzi Adwell VP, Strategic Solutions
The Newman Group [email protected]