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Becoming An Employer of Choice APPA National Conference June 25, 2007
Becoming An Employer of Choice
APPA National ConferenceJune 25, 2007
Outline
What It Means to be an Employer of Choice How to Attract and Retain Critical Talent An Employment Value Proposition (EVP) for the
Future Workforce The Importance of Flexibility How to Create an EVP for Your Organization
What It Means to be an Employer of ChoiceHistorical Definitions Able to attract and retain best and brightest Recognized and respected among employers Competitive pay, benefits and growth
opportunities Leader in effective human resource practices Enjoy high levels of employee satisfaction Known as a good place to work
What It Means to be an Employer of ChoiceWhy Our Definitions Must Change “The worst employment crisis ever is on the horizon as
baby boomers leave the workforce faster than new employees can take their place.”
CEO, Monster.com
Over half of 76 million baby boomers eligible to retire in next decade
U.S. Dept. of Labor states that 60% of 21st century jobs will require skills that 20% of workers have
What It Means to be an Employer of ChoiceWhy Our Definitions Must Change Only 5% of U.S. students earn
undergraduate degrees in science and engineering
Bureau of Labor Statistics estimates that more than 300,000 new IT jobs will remain unfilled
What It Means to be an Employer of ChoiceWhy Our Definitions Must Change Towers Perrin study in 2005 found only 21% of
U.S. workforce considered themselves fully engaged
Gallup’s U.S. Employee Engagement Index: 29% truly engaged 54% not engaged 17% actively disengaged
What It Means to be an Employer of ChoiceNew Definitions Ability to attract and retain the right people
Excited by what they’re doing Fiercely loyal to the organization Productive for the long-term
Target recruitment for high performance Intelligence Right skill set Clear performance standards Organizational fit
Employee engagement as competitive advantage Goes beyond job satisfaction Extent to which employees commit to something or someone in the organization How hard they work How long they stay Likely to go the “extra mile”
How To Attract and Retain Critical Talent Build and deliver an effective employment value proposition (EVP) What Is An EVP?
Attributes labor market and employees perceive as value gained from an organization
What Is In An EVP? Tangible rewards Opportunity Nature of work itself Characteristics of the organization
Understand what matters to employees at different stages Financial drivers Work content (interesting, challenging and meaningful) Development and real-life learning Communications Affiliation and connection
How to Attract and Retain Critical Talent Benefits an effective EVP delivers
Increases size of talent pool (60% vs. 40%) Reduces new hire compensation premium (4% vs.
21%) Improves commitment of new hires (38% vs. 9%) Improves commitment after first 12 months of tenure
(31% vs. 3%) Enables shift of expenses from recruitment costs to
development investments
The employment value proposition (EVP) drives attraction and commitment in the labor market
Compensation and career opportunities show disproportionate returns at improving attraction
Pay (Also) Keeps Talent InsideCompensation has a much larger impact on retention than effort
Source: Corporate Leadership Council, Driving Employee Performance and Retention Through Engagement: A Quantitative Analysis of the Effectiveness of Employee Engagement Strategies, Washington D.C.: Corporate Executive Board 2004, p. 83.
Understanding the Benefit Plans That Matter Most"Brand" your benefit program
Maximum Impact on Employee Discretionary Effort Due to Benefits Programs
© 2006 Corporate Executive Board. All Rights Reserved.
Development opportunities, job-interests alignment, respect, and people management are critical for commitment
Out of 38 employment value proposition (EVP) attributes, seven are critical for driving attraction or commitment across all major talent segments and geographies, but only three drive both
Definitions of EVP AttributesCollegial Work Environment Whether the work environment is team-oriented and collaborativeCompensation The competitiveness of the job’s financial compensation packageDevelopment Opportunities The developmental/educational opportunities provided by the job
and organizationFuture Career Opportunities The future career opportunities provided by organizationManager Quality The quality of the organization’s managersOrganizational Stability The level of stability of the organization and the jobRespect The degree of respect that the organization shows employees
Employees join for “the opportunity” and “the rewards” and stay for “the people” and “the organization”
The Role of the Manager Tremendous impact on employees’ commitment to team, organization and
job Managers serve as the enablers (connection) to many attributes of the EVP
Compensation Development Future career opportunities Respect Work/life balance Empowerment
Almost all manager activities drive employee effort Provide clear, consistent and honest communication Building collaborative teams Enable access to individuals and networks Commitment to diversity Offering frequent and job relevant informal feedback Focusing on employee contributions Creating linkage between employee’s job and organization’s mission
The Role of the Manager According to one survey, 32% of an employee’s
decision to stay with their organization is based on trust for their direct supervision
Key Actions to Enhance Management Quality Establish selection criteria for supervisors and
managers Use 360 degree feedback and coaching Invest in supervisory training and leadership
development Enroll best managers as mentors and facilitators Provide tools to enable managerial productivity and
effectiveness
An EVP for the Future Workforce Four Generations in the Workplace
Traditionalists (1925-1945) = 52 million Baby Boomers (1946-1964) = 80 million Generation X (1965-1980) = 51 million Millenials/Gen Y (1980-2000) = 76 million
EVP for “Mature Workers” (age 55+) Meaningful work and responsibility Opportunity to learn Congenial and respectful workplace Fair pay Benefits that reflect the value of their experience and retirement
preferences Flexible employment relationships
Retiree return programs Project-based assignments
An EVP for the Future Workforce
EVP for Mid-Career Workers” (Born 1951-70) Comprehensive benefits plans Flexibility to meet work and life commitments Stimulation, variety, change of pace Enjoy work with a service component Opportunity to leverage existing skills while learning
new ones Mentoring for knowledge and skills transfer Availability of training and development
An EVP for the Future Workforce EVP for Newer Workforce Entrants
Individual responsibility and freedom to make decisions Sociable and enjoyable work environment Opportunities to learn and grow Opportunities to contribute right away Pay for performance Team-based work Lots of feedback, frequent and positive input Manager who is a show horse and a plow horse Boss as mentor Open communications and accessibility Very fast responders and expect the same Focus on effort vs. results Flexible everything – work schedules, workplace, work policies
An EVP for the Future Workforce Common Core EVP Attributes
Development opportunities Compensation Respect Manager quality Delivering an EVP Across Generations – ACORN Imperatives
Accommodate employee differences Create workplace choices Operate from a flexible management style Respect competence and initiative Nourish retention
from Generations At Work, Zemke, Rains, Filipszak
The Importance of Flexibility Key to Being An Employer of Choice
Provide employment value across talent segments Increase engagement and reengagement
Flexible Work Arrangements Customization of schedules, hours, and career paths Time off Telecommuting Organization of work Elastic job content Efficient systems and processes to eliminate nonessential work
The Importance of Flexibility Flexible Learning Opportunities
Lifelong learning for all employees Leverage information technology Knowledge networks Action-learning experiences On-boarding new employees
Flexible Compensation & Benefits Customization New variables in benefit segmentation Educate employees and retirees More kinds of incentive compensation Fairness vs. equity Key resources required for productivity
How to Create an EVP for Your OrganizationDefining Relevant EVP Attributes Identify attributes that matter most to
attraction and retention7 core attributesSegment-specific
Select attributes that represent your organization’s strengths
How to Create an EVP for your OrganizationFind Competitive Opportunities Study what your competitors don’t do as well Review which attributes aren’t promoted by
competitors How to find out which EVP attributes matter
Published research Employee preference surveys Focus groups (segmented) Data collected from job seekers New employee follow-up
How to Create an EVP for your OrganizationAssess Strategic Alignment Determine which attributes best support
your organization’s strategic objectives and culture
Evaluate level of HR investments
How to Create an EVP for Your OrganizationDefine Your Competitive EVP Focus on most competitive and
strategically relevant EVP attributes Focus on opportunities that offer:
Competitive differentiationStrategic alignmentLow implementation costs
SRP’s EVPRelevant EVP Attributes Organizational Stability Compensation Development Opportunities Manager Quality Collegial Work Environment RespectOrganizational Stability Rich history Stability of ownership and leadership Well-managed Makes good business decisions Reputation
Good corporate citizen Environmentally responsible Honest in dealings with customers and employees
Understands its mission and strengths
SRP’s EVPCompensation Market-based pay Corporate-wide incentive program Spot awards Defined benefit plan 401(k) plan
100% immediate vesting Pre-tax, after-tax and Roth Company match at 80%
Health/Benefits PPO and 2 HMO’s Preventive health and wellness coverage CHAMP Hearing and vision
SRP’s EVPCompensation (cont.) Retirement and financial planning Retiree medical coverage PERA Club recreational services Voluntary benefits
Long term care insurance Auto and homeowners coverage ID theft protection Group legal
Work/life programs Lots of benefits communications
SRP’s EVPDevelopment Opportunities Tuition assistance On-site bachelor’s degree program Leadership series Apprenticeship program Certification support Extensive classroom training schedule Online training Community involvement and leadership assignments Ongoing technical training Professional and industry association participation
SRP’s EVPManager Quality Thousands of years of experience Industry experts Continuous investment in leadership development Accessibility and approachability Active engagement in the communityCollegial Work Environment Begins with on boarding new employees Foster principles of teamwork, cooperation and
interdependency Building an inclusive environment Recognize longevity and service
SRP’s EVPRespect Safety Onsite EAP resource Harassment-free workplace policy Positive discipline Wide communication and equitable application of policies Investment in communications Doing the right thing Take care of each other
Overall: We strive to treat every employee with dignity and respect and ensure the fair and consistent application of policies, programs and practices
Marketing Your EVP to Candidates Ensure that communications during recruitment process
are: Candid (reflects reality) Accurate (enable self-selection) Consistent (impact new hire commitment)
Broader labor market distrusts traditional channels Job ads and third-party job boards are typically trusted by less
than half of labor market Organization’s website is trusted by 63% of candidates Online forums (blogs) are least trusted (22%) Most trusted channels are:
Current employees 81% Friends/family 72% Former employees 65%
Common employment value proposition (EVP) communication channels not trusted; trusted channels not advocates for the organization
Few organizations have a significant population of employees who actively promote the employment value proposition (EVP) and the vast majority have a large percentage who do little to promote the organization
Marketing Your EVP to Candidates Keys to Building Employee Advocates
Trust essential to employees’ willingness to promote the organization
Empowerment creates sense of ownership and increases likelihood employees will promote organization
Communication of values strengthens employees’ perception of what organization stands for and increases effectiveness in promoting it
Successful Communications Emphasize: Organizational reality Message consistency Self-assessment
Summary Knowing Your Employment Value Proposition is
Critical to Attraction, Commitment and Retention Select Core Attributes as Foundation for Your
EVP Differentiate From Your Competitors Align With Your Organization’s Strengths
COMMUNICATEYour EVP Internally and Externally
Selected ReferencesWorkforce Crisis, Ken Dychtwald, Tamara Erickson, Robert Morison, 2006
Attracting and Retaining Critical Talent Segments, Corporate Leadership Council, 2006
It’s 2008: Do You Know Where Your Talent Is?, A Deloitte Research Study, Deloitte Development LLC, 2004
Leveraging the New Human Capital, Sandra Burud, Marie Tumolo, 2004
Driving Performance and Retention Through Employee Engagement, Corporate Leadership Council, 2004“What It Means to Work Here,” Harvard Business Review, March, 2007
Great Place to Work Institute, www.greatplacetowork.com
Families and Work Institute, www.familiesandwork.org
Society for Human Resource Management, www.shrm.org
Center for Creative Leadership, www.ccl.org
Good to Great, Jim Collins, 2001
“The 100 Best Companies to Work For,” Fortune Magazine, Robert Levering, March 2007
“The Rewards of Work: What Employees Value,” Sibson Consulting Group, Nextera, WorldatWork, 2001
“Engaging the Massive Middle,” Beverly Kaye and Sharon Jordan Evans, 2007
“Leveraging Employee Engagement for Competitive Advantages: HR’s Strategic Role,” Nancy R. Lockwood, March, 2007
