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Taking Control of EVP
 

Taking Control of EVP

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ERE webinar from 6/29/2009, presented by Mitzi Adwell.

ERE webinar from 6/29/2009, presented by Mitzi Adwell.

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    Taking Control of EVP Taking Control of EVP Presentation Transcript

    • 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 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 2
    • Employment Value Proposition Defined Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 3
    • The Employment Value Proposition – a Methodology The EVP is comprised of five key categories: – Organization (stability, success) – People (quality of managers, collegial environment) – Rewards (compensation, recognition) – Opportunity (developmental and advancement) – Work (work/life balance, engagement) How do employees, candidates, and other stakeholders rank these attributes in order of importance? How do they perceive your ability to deliver a quality experience in each of these categories? How is your competition and the industry doing? Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 4
    • Employment Value Proposition Attributes Rewards Opportunity Organization • Respect • Ethics/Integrity • Compensation • Stability • Empowerment • Health Benefits • Future Career Opportunity • Product/Service Quality • Retirement Benefits • Developmental Opportunity • Technology Level • Vacation • Meritocracy • Diversity • Growth Rate • Market Position • Formal/Informal Work Environment Work People • Brand Awareness • Social Responsibility • Industry Desirability • Work Life Balance • Co-Worker Quality • “Great Employer” • Job Interests Alignment • People Management Recognition • Location • Collegial Work Environment • Customer Prestige • Recognition • Manager Quality • Environmental • Innovative • Sr. Leader Reputation Responsibility • Level of Impact • Camaraderie • Organization Size • Business Travel • Risk Taking Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 5
    • Employment Value Proposition Attributes Defined WORK ORGANIZATION The degree of respect that the organization shows The extent to which the job allows you to balance your Respect employees Work Life Balance work and your other interests Ethics/Integrity The organization's commitment to ethics and integrity Job Interests The level of involvement employees have in decisions Alignment Whether the job responsibilities match your interests Empowerment that affect their job and career Location The location of the jobs the organization offers Product/Service QualityThe organization's product or service quality reputation The amount of recognition provided to employees by the The extent to which the organization invests in modern Recognition organization Technology Level technology and equipment The organization's level of commitment to hiring a The opportunity provided by the job to work on Diversity diverse workforce Innovative Work innovative, "leading edge" projects The competitive position the organization holds in its Market Position market(s) Level of Impact The level of impact the job has on outcomes Formal/Informal Work The amount of out-of-town business travel required by Environment Whether the work environment is formal or informal Business Travel the job The level of awareness in the marketplace for the REWARDS Brand Awareness organization's brand(s) The organization's level of commitment to social responsibility (e.g., community service, philanthropy, Compensation The competitiveness of the job's financial package Social Responsibility etc.) The comprehensiveness of the organization's health The desirability of the organization's industry to the Health Benefits benefits Industry Desirability respondent Whether or not the organization's reputation as an The comprehensiveness of the organization's retirement "Great Employer" employer has been recognized by a third party Retirement Benefits benefits Recognition organization The amount of holiday/vacation time that employees The reputation of the clients and customers served in Vacation earn annually Customer Prestige performing the job Environmental The organization's level of commitment to environmental PEOPLE Responsibility health and sustainability Manager Quality The quality of the organization's managers Organization Size The size of the organization's workforce The amount of risk that the organization encourages Coworker Quality The quality of the coworkers in the organization Risk Taking employees to take OPPORTUNITY People Management The organization's reputation for managing people Stability The level of stability of the organization and the job Collegial Work Whether the work environment is team-oriented and Future Career The future career opportunities provided by the Environment collaborative Opportunity organization Development The developmental/educational opportunities provided Sr. Leadership Opportunity by the job and organization Reputation The quality of the organization's senior leadership Whether or not the employees are rewarded and Whether working for the organization provides Meritocracy promoted based on their achievements Camaraderie opportunities to socialize with other employees Growth Rate The growth rate of the organization's business Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 6
    • Typical inputs to the Employment Value Proposition Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 7
    • 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. Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 8
    • 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 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 9
    • 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. Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 10
    • 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. Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 11
    • Re-engaging your Employees Understanding Perception: The attributes most ‘preferred’ by your employees could change over time. Reviewing Programs: How your employee population ‘perceives’ your company is typically very closely aligned with the EVP. As the EVP changes, ensure the programs are 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 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 12
    • Advantages of Employing an EVP Strategy The Advantages of an EVP strategy are enjoyed by both the Company and the Employees Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 13
    • For the Employee: Functional and Emotional Benefits Functional benefits of Employment Brand – Hourly wages or salary – Work environment – Equipment needed to perform Emotional Benefits of an Employment Brand – Value from total work experience – Satisfaction with work performed – Feeling valued by colleagues – Belief in quality, purpose and mission of organization These important elements to the Employment Brand can sometimes be taken for granted Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 14
    • 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 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 15
    • For the Company: Customer Satisfaction Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 16
    • Developing Brand Insights Companies spend 10 times more on company research than employee research It is important to gather quantitative and qualitative data on employee perceptions to identify and understand your Employment Brand Reality (EVP) With the advent of the many survey tools, establishing a high level overview of a company’s EVP can be attained without significant cost or resources Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 17
    • Measuring Results You will need to identify new measures to monitor the impact of your Employment Brand campaigns Traditional recruiting metrics will not be enough – you will want to correlate to key business indicators Identify key measurements by the business and establish a benchmark/ snapshot prior to launching the campaign Measure shortly after launch and then on regular intervals Ideally (albeit more difficult) roll the numbers up into a single number and call it a Brand Strength Indicator Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 18
    • Who is Volkswagen Group of America (VWGoA) •  Volkswagen AG is the world’s •  Over 800 U.S. dealerships third largest automaker •  Over 350,000 vehicle sales •  Brands sold in the U.S. include annually Volkswagen, Audi, Bentley, Lamborghini, Bugatti •  Goal to sell over one million cars in the U.S. by 2018 •  2,500 employees in the U.S. •  U.S. production facility recently •  Facilities in 13 states announced for Chattanooga, •  350 employees at U.S. Tennessee to employ 2,000 headquarters in Herndon, Virginia as of April, 2009 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 19
    • Volkswagen Group of America, Inc. - Transformation September 6, 2007 A new way of working… we hit the –  Dynamic, Fast –  Collaborative –  Customer Focused Button… –  Bold and Fresh Thinking And announced a “new start”… –  Performance Driven –  Implementation of a new company structure –  Trust Based –  HQ Relocation to Herndon, VA –  Creative –  New VWGoA Management Team Structure –  The potential of U.S. Production –  Resource consolidation/optimization and.… Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 20
    • Relocation of U.S. Corporate Headquarters Michigan Virginia Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 21
    • Talent Management Challenges: Identifying the Tasks at Hand Timeline Employee Relocation Beginning Relocation Complete Relocation Decisions Due of Corporate H.Q. of Corporate H.Q. Announcement of H.Q. Relocation Workforce Transfer Employee Plans Complete Notifications Targeted End Dates for Auburn Hills, MI Support Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2007 2008 Transfer of Operations Period Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 22
    • Solution Part II: Employment Value Proposition (EVP) Why the EVP & Competency Framework help Shape the New Culture Why is Employment Value Proposition (EVP) Important? Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 23
    • 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) Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 24
    • EVP: Understanding the “Before” Picture Work People Opportunity • Work Life Balance • Co-Worker Quality Rewards Organization • Stability • People Management • Compensation • Respect • Job Interest • Future Career Alignment • Collegial Work • Health Benefits • Ethics/Integrity Opportunity • Location Environment • Retirement Benefits • Empowerment • Developmental • Manager Quality • Vacation • Product/Service • Recognition Opportunity • Innovative • Sr. Leadership • Meritocracy Quality • Level of Impact Reputation • Growth Rate • Technology Level • Business Travel • Camaraderie • Diversity • Market Position • Formal/Informal Work Existing talent places value primarily on •  Environment • Brand Awareness Work & Opportunity • Social Responsibility They rate work experiences high, while opportunity experiences are rated lower • Industry Desirability • “Great Employer” 3.16 and above 3.00 and below Recognition • Customer Prestige • Environmental •  Responsibility • Organization Size • Risk Taking 3.29 3.16 3.00 3.30 2.23 3.00 4.40 3.21 3.53 3.76 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 25
    • The Process: Identifying Forward-Thinking EVP attributes Work People Opportunity Organization Rewards • Work Life Balance • Co-Worker Quality • Stability • Respect • Compensation • Job Interest Alignment • People Management • Health Benefits • Future Career • Ethics/Integrity • Location • Collegial Work Opportunity • Empowerment Environment • Retirement Benefits • Recognition • Developmental • Product/Service Quality • Manager Quality • Vacation • Innovative Opportunity • Technology Level • Level of Impact • Sr. Leadership • Meritocracy • Diversity • Business Travel Reputation • Growth Rate • Market Position • Camaraderie • Formal/Informal Work •  Environment • Brand Awareness Attributes sought in talent that will be coming on board in the • Social Responsibility new location should place value primarily on • Industry Desirability • “Great Employer” Work & Organization Recognition • Customer Prestige • Environmental •  Responsibility • Organization Size • Risk Taking 3.00 4.40 3.21 3.53 3.76 3.13 2.75 2.54 3.27 3.27 3.29 2.50 Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 26
    • EVP Planning “After” Picture—a Clear Path from Current to Desired Attributes Current Desired Innovative Work Level of Impact Market Position Work Job Interests Alignment Brand Awareness Work Life Balance Risk-Taking Organization Ethics/Integrity Stability Empowerment Future Career Opportunity Opportunity Respect Meritocracy Innovative Work Empowerment Level of Impact Work Respect Organization Job Interests Alignment Manager Quality Co-Worker Quality People People Collegial Work Environment Collegial Work Environment Compensation Rewards Meritocracy Opportunity Red = Where current attributes align with desired attributes Black = Where current attributes are less relevant Blue = Where desired attributes need to be valued Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 27
    • Putting it Together—Connecting Competencies and EVP Strategy “Connecting With Our Customers” Business Organizational Competency Attribute Strategy Culture Innovative Work Dynamic, Fast, Innovation Level of Impact Product Creative Performance- Job Interests Alignment Performance- Driven Meritocracy Driven Dealer Network Customer Market Position Brand Focused Bold, Customer Focus Brand Awareness Positioning Fresh Thinking Change Leadership Risk Taking Empowerment Local Production Collegial Work Environment Organization Collaborative Co-Worker Quality Teamwork Trust-Based Respect Ethics/ Integrity Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 28
    • 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) Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 29
    • Closing Thank You Mitzi Adwell Strategic Solutions Leader The Newman Group mitzi.adwell@futurestep.com Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved. Page 30