Dear all,Looking forward to tonights presentationsPlease.docx
1. Dear all,
Looking forward to tonight's presentations?
Please find attached the case study which will constitute the
final exam for this course.
Please read the case thoroughly, and write approximately 10
page case analysis addressing the following questions:
- Why is it important to understand thoroughly the various
elements of the employee value proposition (EVP)?
- Why would a company want to know what are the most
important aspects of EVP for their employees?
- Who is responsible for defining EVP?
- Would there be other elements to the EVP than the listed 38?
- What explains the differences in the preferences in different
countries?
- Do you expect that there would be differences in preferences
depending on the age, experience and gender of employees?
- After understanding the employee preferences, what should a
company do next?
- Would you consider the EVP to mature or evolve over time?
- In your experience, what are the most important aspects of the
EVP for the employees in your organisation?
Please also feel free to include any other discussion points.
As discussed, the value of the analysis can be improved by:
- using additional information sources for the analysis
(company website, earlier research on the topic, background
info on the company,...)
- presenting your own individual thoughts and views on the case
3. Implementing an Employee Value Proposition in the GCC:
A Case Study on TNT Express
Prof. Abhilasha Singh,
Institute of Management Technology, Academic City, Dubai,
PO Box 345006 UAE
E-mail – [email protected]
Ms Jacqueline Mitchell
TNT Express, PO Box 15321, Dubai UAE
E-mail – [email protected]
ABSTRACT
In a highly competitive labor market, employee value
proposition is becoming a solution
to attract and retain talent. The present case helps the readers to
identify the factors of
Employee Value Proposition to build a credible, strategic and
competitive EVP at TNT
Express in Kuwait, Bahrain and Saudi Arabia.
The case also focuses on the differences in the choice of factors
selected by the
employees of TNT Express in three different countries that will
help the HR
professionals in identifying the employee preferences and
perceptions in determining the
EVP attributes that matter most to attraction and retention.
4. INTRODUCTION: WHY EVP?
In today’s world, an array of organizations ranging in all sizes,
industries, and
geographies are facing problems of employee retention and of
talent shortage. The
consequence of this entire situation has lead to an increased
demand in supply
constrained labor markets. This shortage is manifested through
a diverse and wide-
ranging set of challenges: a shortage of highly qualified
graduates, pending retirements,
an aging workforce, and a lack of experienced talent. These
supply problems are coupled
with rising demand for labor, creating two additional issues
with which organizations
must contend: high turnover and wage inflation. In combination,
these problems threaten
to disrupt operations across the globe, and require organizations
to seek new and more
refined methods to attract and retain the talent they need for
success.
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5. In current economic conditions where cost optimization is very
important, it is ideal to
execute a system as a means of optimizing the performance of
each employee thereby
achieving an efficient organization. Companies have begun to
recognize the importance
of EVP. McKinsey and Co. have shown this importance through
the statement given by
them which says that “Companies must therefore make talent
management a top priority
- create and continuously refine their employee value
proposition, and source and
develop
talent systematically.”
The fact is that to combat the problem of talent management
especially attraction and
retention, the Employee Value Proposition needs to be
implemented in organizations for
excellence.
Employee Value Proposition (EVP) is a set of 38 important
factors (Fig.1) that
6. employees and labor market perceive as the value gained
through employment. It is the
measurement of the balance between what an employee receives
from their employer in
return of their performance on the job; a balance between ‘get’
and ‘give’. It drives
attraction of potential candidates and retention of the existing
employees and it is built
upon the market realities and leverages the organizational
strengths therefore aligning
with strategic objectives of the organization (CLC Research,
2006).
Figure-1
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SOURCE: CORPORATE LEADERSHIP COUNCIL RESEARCH
2006
An Effective Employee Value Proposition provides organization
with three quantifiable
benefits:
Enhanced attractiveness: Organizations with effective Employee
7. Value Propositions are
able to source from a much deeper talent pool in the labor
market. According to the
findings by Corporate Leadership Council, 2006, the top-
performing organizations draw
candidates from about 60% of the labor market, including
"passive" candidates who
would otherwise be content to stay with their current job.
Lesser- performing
organizations are able to source only from the most active 40%
of the workforce.
Greater Employee Commitment: Organizations with effective
Employee Value
Propositions enjoy significantly higher level of commitment
from their employees. A
research by Corporate Leadership Council suggests that the
most efficient organizations
have 30-40% of their workforce displaying high levels of
commitment, compared to less
than 10% in underperforming organization.
Compensation Saving: Organizations with effective Employee
Value Propositions are
able to reduce the compensation premium that is required to
attract the new candidates.
8. As highlighted by a study by Corporate Leadership Council, the
leading organizations are
able to spend 10% less on base pay as compared to
underperforming organizations.
TNT EXPRESS: BRIEF PROFILE
Established in 1946 TNT is now a global integrator and
provides its services in more than
200 countries. TNT, through its two divisions, Express and
Mail, is part of the global
transportation and distribution industry, and dedicated to
providing delivery solutions to
its customers. The global transportation and distribution
business is a vast industry which
is estimated to be worth over US$3,500 billion. TNT serves
more than 200 countries, is
present in 64 countries and employs around 160,000 people. Its
revenue in 2009 was over
10 billion Euros. TNT Express is in the business of
transferring goods and documents
around the world tailored to its customers’ requirements. It is
TNT’s business to deliver
the “business” of its customers at the right time and at the right
place. With 30,000
9. vehicles and 48 aircraft, it is the largest Express operator in
Europe. In 2009 TNT won a
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number of awards including the Clinton Global Initiative
Corporate Citizenship Award
and was the top scoring company in the Dow Jones
Sustainability Index.
In a competitive market, the right strategy is a key to survival
and success. TNT is
reviewing its strategy in the world after the global recession.
One strategic area is that of
the Emerging Markets which includes the Middle East.
The Human Resources function at the TNT Express Head Office
develops policy and
tools to be used by Regional Centers and Country Operations.
Understanding that ‘one
size’ does not fit all, the tools are flexible enough to be
localized where required, so
enabling HR to integrate into local business needs.
One key factor behind their spectacular track record is the HR
function and the
10. enthusiasm, dedication and professionalism of the people. TNT
values its people,
motivates them, empowers them, recognizes their contribution
and rewards them. It has a
"Sure We Can" culture, where employees are encouraged to be
innovative and to show
commitment to their job. The key objective of Human Resource
at TNT is to develop
people and their competency at all levels and in continuing
efforts to aspire to be the best
employer TNT has moved beyond people management and had
introduced EVP, to prove
their mission.
“Our ambition is for our people to be a competitive advantage
for TNT Express and for
TNT Express to become recognized as a preferred employer in
the Express industry.”
– HR Express Statement
WHY EVP AT TNT EXPRESS?
The Regional General Manager MEA called the HR Manager
into his office. He asked,
‘Why is it taking so long to hire an Operations Manager in
Bahrain and a Sales Manager
11. in Saudi Arabia”.
The HR Manager explained, ‘The talent we need is hard to find
in the region. It is
difficult to find candidates who want to work in these
countries’. The Regional General
Manager considered this for a moment, and said, ‘It is up to you
to ensure that we can
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always attract candidates for our jobs. I want these immediate
vacancies filled within 4
weeks and I want a permanent solution to this problem’.
The HR Manager returned to her office. She could meet the
deadline for hiring but how
should she go about creating a long term strategy to ensure the
creation of a larger pool
of candidates for TNT in the Middle East. There were other
positions which were also
difficult to recruit in the region. The only way would be to
raise the profile of TNT as an
attractive employer. She recalled a presentation about
12. Employee Value Proposition at
Divisional HR Conference 2 years ago, and the work that had
been done in this area
afterward. The benefits of EVP were candidate alignment to the
organization, a greater
talent pool and better retention which would answer her
immediate issues. After doing
some further reading, she decided that creating and
implementing EVP in an arena of
increasing competition for talent would be a lasting and
successful strategy for TNT.
TNT Express, known for its journey towards bringing
excellence at work place, sensed
an urgency to introduce EVP and conducted a pilot study in
three countries namely,
Kuwait, Bahrain and Saudi Arabia to create an Employee Value
Proposition that
highlights the most competitive and strategically relevant
aspects of TNT Express and
further to identify human resource investments that matter most
in attracting and
retaining the talents.
The HR manager Ms. Jackie planned a structured study to be
implemented in two phases.
13. The first phase of the study was to identify the factors
important for attraction and
retention of talent and also to bring out the differences, if any,
in the choice of factors
selected by the employees of TNT express in three major
countries.
After thoughtful consideration of all relevant factors, the second
phase of the study was
aimed to identify the competitive aspects of the value
proposition that best aligns with
TNT’s strategy, culture, HR investments and competitive
differentiation with the
employment value proposition, to achieve the desired results.
She planned a systematic study to collect the data through
survey on employees’
preferences and perceptions to determine the Employee Value
Propositions’ factors of
attraction and retention. This survey also took into
consideration the differences in the
choice of factors selected by the employees.
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14. In the second phase of the study, she took maximum
involvement of management teams
to define the Employee Value Propositions which is aligned
with TNT’s strategy and
culture and was supported by HR investments by assessing the
costs and differentiation
that comes with the factors suggested by the Employees.
The data was collected for phase one, on employee preferences
and perceptions to
determine the EVP attributes that matter most to attraction and
retention by conducting
employee surveys which were a prime source of the data. This
survey was conducted for
Stream 1 employees who are not involved in people
management and Stream 2/3
employees who manage people and teams. The survey involved
the set of 38 factors in 3
different sheets seeking different kinds of information.
To arrive at attraction factors, employees were asked to rate the
factors taking into
consideration their importance when they are applying for any
job but to discover what
15. employees perceive about all 38 factors, employees were asked
to grade TNT’s
performance on the factors listed selecting the category which
best fits.
Also, to arrive at retention factors, employees were asked to
choose top 10 most
important factors that matter the most for their choice of
employer.
The second phase of the study was focused on management
teams to define an EVP that
is relevant to strategic priorities and the organization’s culture,
supported by HR
investments, and differentiated from competitors.
PILOT STUDY AT TNT EXPRESS:
Jackie was not sure about the implementation of EVP and after
giving a serious thought
to it; she planned to go for a pilot study.
Keeping in mind the stated objectives, the data was collected
and results were analyzed.
Attraction data was analyzed by collecting the data from
16. employees who had served TNT
for a period of six months or less. Analysis for stream1 and
stream 2/3 were made
separately since the research showed that level segmentations
could show differentiated
factors. The analysis was done using MS – Excel by assigning
weights for each category
(e.g. Very Good = 5, Good = 4 and so on). The employee
perceptions were analyzed to
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identify the strengths and the weakness of TNT in the three
countries- Kuwait, Bahrain
and Saudi Arabia.
Table: 1 Factor Selected by Employees at Kuwait
Top EVP Factors Resulting from Analysis
Stream 1 Stream 2/3
Attraction Retention Attraction Retention
Health Benefits Vacation Future Career
17. Opportunities
Manager Quality
Communication with Co –
workers
Health Benefits Recognition Future Career
Opportunities
Development
Opportunities
Compensation Respect Compensation
Future Career
Opportunities
Retirement Benefits Communication With Co –
Workers
Social Responsibility
The Table: 1 shows clearly the top factors selected by the
stream 1 employees at Kuwait
for attraction are health benefits, communication with co-
workers, development
opportunities and future career opportunities. The attraction
factors for stream 2/3
employees were future career opportunities, recognition, respect
and communication with
18. co-workers. The retention factors for both streams had the
compensation factor in
common but stream 1 employees chose vacation, health benefits
and retirement benefits
whereas stream 2/3 employees chose quality, future career
opportunities and social
responsibility as other top factors for retention.
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Table: 2 Employee Preferences & Perceptions at TNT Kuwait
for Stream 1 & Stream
2/3
Employee Preferences & Perceptions at TNT Kuwait for Stream
1 & Stream 2/3
Table 2 clearly shows the employees preferences and
perceptions with regards to EVP
19. factors of attraction and retention for Stream 1 and Stream 2/3.
The factor which is
common in attraction and retention for stream 1 is Health
Benefits as per the employees’
preferences and perceptions. Future Career Opportunities is the
common factor for
attraction and retention for Steam 2 and Stream 3 in Kuwait.
Also results indicate that
candidates give high importance to Respect and Communication
with Co-Workers as the
factors for attraction to TNT, while the existing employees
consider Manager Quality and
Social Responsibility as the most important for retention.
• Health Benefits
• Recognition (Attraction)
• Communication with Co‐Workers
(Attraction)
• Manager Quality(Retention)
• Social Responsibility(Retention)
• Respect(Attraction)
• Compensation (Retention)
• Future Career Opportunities
(Attraction)
20. • Retirement Benefits (Retention)
• Compensation(Retention)
• Development Opportunities (Attraction)
• Vacation (Retention)
• Future Career Opportunities
• Communication with Co‐
Workers(Attraction)
TNT
Employee
Perception
Low
High
High
Factors Attraction/Retention ‐ Perceptions
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Table: 3 Employee Preferences & Perception at TNT Bahrain
for Stream1 and Stream
2/3
Employee Preferences & Perceptions at TNT Bahrain for Stream
1 and Stream 2/3
21. Interpretation of Table 3 makes it evident that there are no
factors that are common
between the Stream 1 employees for attraction and retention.
However between Steam 2
and Stream 3, Health Benefits are the most important for
attraction and retention. Finally
candidates in Bahrain feel that Communication with Co-
Workers is what attracts them
most to TNT while Health Benefits, Retirement Benefits and
Senior Leadership
Reputation are the factors that play an important role in
retaining the existing employees.
• Health Benefits • Health Benefits(Retention)
• Retirement Benefits (Retention)
• Senior Leadership Reputation
(Attraction)
• Communication with Co-
Workers(Attraction)
• Future Career
Opportunities(Retention)
• Future Career
Opportunities(Attraction
• Retirement
22. Benefits(Retention)
• Meritocracy(Attraction)
• Recognition(Attraction)
• Manager Quality(Attraction)
• Compensation(Retention)
• Vacation(Retention)
• Development
Opportunities(Attraction)
High
Factors Attraction/Retention ‐ Perceptions
TNT
Employee
Perception
Low
High
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Table: 4
Employee Preferences & Perceptions at TNT Saudi Arabia for
Stream1&Stream 2/3
23. • Manager Quality(Retention)
• Development
Opportunities(Retention)
• Vacation
• Development
Opportunities(Retention)
• Organization Stability(Attraction)
• Manager Quality(Attraction)
• Health Benefits(Retention)
• Health Benefits
• Compensation(Attraction)
• Work Life
Balance(Retention)
• Recognition(Attraction)
• Organization
Stability(Attraction)
• Compensation
• Future Career Opportunities
(Attraction)
Legend:
Text in Black – Stream 1
Text in Bold – Common factor of attraction and retention
24. Text in Red – Stream 2/3
Text in Bold – Common factor of attraction and retention
Employee Preferences & Perceptions at TNT Saudi Arabia for
Stream1&Stream
2/3
Table 4 shows that according to the employees of Stream 1 in
Saudi Arabia, Health
Benefits and Vacation are the common factors for attraction and
retention in TNT,
whereas employees of Stream 2 and Stream 3 have rated
Compensation as the common
factor for attraction and retention. Organization Stability is a
factor of high importance
for attraction of employees of Stream 1 while Development
Opportunities is of high
importance for retention of existing employees. Vacation is the
common factor as well as
of high priority for both attraction and retention for Stream 1
employee. For Stream 2/3
employees, Manager Quality is a very important factor for
attraction while Health
Benefits is the important factor for retention.
High
25. Low
TNT
Employee
Perception
Factors Attraction/Retention ‐ Perceptions High
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Table: 5
Differences in Employee Preferences & Perceptions at TNT
in
Kuwait, Bahrain & Saudi Arabia
COUNTRY STREAM 1 STREAM 2/3
KUWAIT
1. Health Benefits
2. Communication with Co-Workers
26. 3. Development Opportunities
4. Future Career Opportunities
5. Vacation
6. Compensation
7. Retirement Benefits
1. Future Career Opportunities
2. Recognition
3. Respect
4. Communication with Co-Workers
5. Manager Quality
6. Compensation
7. Social Responsibility
BAHRAIN
1. Manager Quality
2. Senior Leadership Reputation
3. Meritocracy
27. 4. Recognition
5. Future Career Opportunities
6. Compensation
7. Health Benefits
8. Retirement Benefits
1. Health Benefits
2. Communication with Co – Workers
3. Development Opportunities
4. Future Career Opportunities
5. Vacation
6. Compensation
7. Retirement Benefits
SAUDI
28. ARABIA
1. Compensation
2. Vacation
3. Health Benefits
4. Organization Stability
5. Manager Quality
6. Vacation
Development Opportunities
1. Future Career Opportunities
2. Compensation
3. Manager Quality
4. Organization Quality
5. Development Opportunities
6. Health Benefits
29. 7. Work Life Balance
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Differences in EVP Factors at TNT in Kuwait, Bahrain & Saudi
Arabia
Table 5 shows the differences in the choice of EVP factors at
TNT in three countries
Kuwait, Bahrain & Saudi Arabia, chosen for the pilot study. The
priority factors out of
38 EVP factors differs in each country, which will serve as
basis for the management to
device an Employee Value Proposition, relevant to the strategic
priorities and
organization’s culture of TNT express.
The results of the first phase were presented to the management
teams at TNT Express
Kuwait and Bahrain separately for Stream 1 & Stream 2/3 and
the top 4 factors for
retention and attraction were taken.
30. Also, the employee perception of the selected factors was shown
to the management and
a discussion to device an Employee Value Proposition that was
relevant to the strategic
priorities and organization’s culture, was initiated. The
Employee Value Proposition had
to be supported by HR investments, and differentiated from
competitors by assessing the
implementation costs, and competitive differentiation afforded
by proposed EVP factors.
With the above mentioned employees’ response and thorough
implementation of both the
phases of study, the HR manager was very clear about the
importance of EVP and the
impact of internal and external factors like culture on
employees’ perceptions.
Jackie said, “It was clear that the TNT country operations
involved in the study were
quite different in what they wanted their EVP to communicate,
due to their different size,
maturities and cultures. The ability to differentiate from the
main competitors also
differed between locations”.
31. IS EVP THE ONLY ANSWER FOR TNT EXPRESS?
The present knowledge age is demanding a must change in the
way of thinking to
bring a conceptual revolution. A revolution, to destroy the
obsolete and to give birth to
the energetic and the living. Acquisition, reorganization,
downsizing and job cuts are
becoming the hallmark of the upheavals of the knowledge age.
These are the inevitable
birth pangs of a vibrant tomorrow. The HR department at TNT
knew that the time has
come when we need to introduce EVP to achieve competitive
edge. Today the
conventional premise that capital is rare and expensive and the
people are abundant and
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cheap is no longer valid. Today, the capital is mobile and cheap
(as compared to people);
because it is global. People, especially competent people, are
32. becoming rare because of
the same reason. Globalization has opened new vistas for them.
There was a time when
people were regarded as an item that increased costs. Today,
every additional person,
with effective skills and competencies, means additional profit.
In the Industrial era the
companies hired "hands". Obviously hands have limited
productive potential. Today a
company recruits people, it employs additional minds, and a
creative mind has unlimited
profit potential. Thus there is a qualitative difference in the
field of Human Resource
Management between the industrial age and knowledge age. In
industrial age HR was
one of the numerous functions amongst manifold operations. In
knowledge age, HR is at
the heart of business. Every successful business leader in the
knowledge age is a
successful human resources manager. These imperatives point
out that the organizations
can no longer be complacent with their human resources or else
they will perish in this
competitive age.
33. Thus, the importance of an effectual employment value
proposition (EVP) cannot be
undervalued as it helps to attract, motivate and retain the most
priceless assets of a
company, its employees. In a highly competitive labor market
where top talent becomes
increasingly scarce, it makes sense for a company to invest in a
strong employment value
proposition (EVP) in order to get the best results from their
recruitment efforts.
Although, the notion of the EVP is not new and has been around
for decades, still many
organizations have yet to realize the significance of having a
strong EVP.
Jackie’s initiative of implementing EVP at TNT Express in
three countries made it very
clear that ignoring the implementation of EVP can be a costly
mistake, especially with
the continuing strong demand for talent across many industries
and professions.
It is important here to mention that the management’s decision
on the EVP focus area
was based on the few important parameters like current strength
34. or weakness of TNT,
aligning TNT’s strategy with chosen factors of EVP, and
financial implications of
implementing the EVP factors.
Based on these parameters, the management decided to focus on
three of the Employee
Value Proposition aspects, that best aligned with strategic goals
and offered the best
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opportunities for labor market differentiation at the same time
representing current
strengths of the organization.
Management teams in Saudi Arabia, Kuwait and Bahrain were
asked to pay special
attention to the identification of EVP aspects that are best
aligned with the company’s
strategic objectives and provide the highest opportunities for
competitive differentiation.
To assess the strategic relevance of each of the seven identified
35. EVP factors, they
considered its alignment with the business objectives,
company’s culture and
organization’s values. To identify the best opportunities for
competitive differentiation
among the EVP factors, the management team assessed areas of
current strength, areas of
current focus by closest competitors, and areas currently not
well delivered by
competitors.
Finally, Jackie prioritized those HR programs and policies that
have the highest impact
on reinforcing the EVP, where there is room for improvement,
and where return on
investment is highest.
The identified EVP factors were taken into account and the HR
activities that contributed
to the EVP factors at TNT were assessed for their impact and
then further assessed for
improvements where it was believed that there could be a
greater impact on talent
attraction and retention.
36. Lastly, based on the discussions with the employees, about the
best way to communicate
a message internally, communication strategies were suggested.
She prepared a
document for the HR department on ways to spread the message
across the organization
about Employee Value Proposition at TNT Express.
Communication strategies were
suggested for both internal and external communication. After
identification of the EVP
factors, now she is happy with an EVP Express statement that
was written separately for
Saudi Arabia, Kuwait and Bahrain based on the factors.
The pilot study has concluded that developing an EVP has
become the key to success in
acquiring and retaining talent and is no longer an option. The
development of employee
value proposition at TNT is not only to make itself appealing to
external job candidates,
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37. but also for learning culture, high performance work practices,
better management style
and growth opportunities, which is reflected in the perception of
people having perceived
organizational support, high motivation, pride in identifying
with organization and happy
to work there and thus are willing to ‘go the extra mile’ for the
company they are
working.
Needless to mention that EVP captures the essence of what a
company wants to stand for
in candidates and employees mind relative to competitive
employers. The management
teams of TNT Kuwait, Bahrain and Saudi Arabia were involved
to define the Employee
Value Propositions which is aligned with TNT’s strategy and
culture and was supported
by HR investments by assessing the costs and differentiation
that came with the EVP
factors suggested by the Employees.
Excited with the results Jackie strongly feels that even though
the study was very
38. encouraging, it has raised many issues at the macro and micro
level. She was left
unanswered on many questions:
The HR Manager Ms. Jackie Mitchell sitting in her office is
thoughtfully considering how
she should now progress the results of the studies. It was clear
that the employees in the
countries had very definite views on what they looked for in an
employer. The EVP areas
which the management teams wished to focus on and where the
employees had rated
them as weak in TNT were areas which were acknowledged to
be requiring solutions. In
order to leverage these results to raise TNT’s profile in the
countries involved in the
study, and to meet the objective of attracting talent, funding
and in some cases policy
changes would have to be made. How could she get support at
the Regional level for
financial investment while the country was in a cost
optimization phase?
At what level of the organization should the implementations
be initiated?
39. At the MEA Regional level, the Regional General Manager had
a broader knowledge
and regional level view of the people management activities,
and demanded some
consistency across the region, at the same time considering the
differences caused by
government driven regulation. Many business decisions were
driven by this approach.
Also, TNT branding in terms of consistent communications and
approach to employees
and customers was considered to be critical and very regulated
within TNT.
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Further what would be the real return on investment and how
could this be measured
was the most important question which she knew would be
raised by the management
and thus she had to answer?
She also considered the raised expectation of the employees in
carrying out the survey.
40. How should she go about communicating the results and actions
back to employees?
What result would establish that TNT met their requirements?
REFERENCE:
Attracting and Retaining Critical Talent Segments, Building a
Competitive Employment
Value Proposition, Corporate Leadership Council, Corporate
Executive Board, 2006.
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