EMPLOYEE VALUE PROPOSITION

EMPLOYEE VALUE PROPOSITION BY: TIM ROBINSON, Ph.D.

Do you enjoy your job, believe in your club’s mission, and feel respected by your colleagues and manager?

Would you recommend your club / organization to your friends as a great place to work?

If you answer “Yes” to these two questions, consider yourself lucky, as research has consistently found that only 25% of employees will recommend their organization to others. If you’re in the lucky 25%, you are likely working for a club/organization that has worked hard to create what is known as a strong Employee Value Proposition (EVP). A strong EVP, will translate into positive benefits when it comes to attracting top talent, encouraging strong performance, retaining your best employees, and ultimately, achieving your business goals.

As described in Article #1 of this series (Strategic Talent Management: A Key to Organizational Success) EVP is defined as the “give and get” of the employment deal. In other words, the value that employees are expected to give to the club compared to the value they can expect in return.

From an employee’s point of view, value relates to a combination of positive benefits employees

perceive they will gain from joining an organization (ex: salary) as well as those things they’ll receive if they stay with the organization (ex: good career development).

Potential employees (those looking to be hired) will know what their starting salary will likely be and will have an opinion on the organization’s stability, its treatment of employees, etc., from newspapers, social media, and friends. While somewhat limited, potential employees form an opinion (ex: strong or weak) of an organization’s EVP without ever working a single day.

Whereas, current employees know precisely what the club’s practices are when it comes to onboarding, training, career development, pay-for-performance, promotion, leadership quality, respect, and club’s culture. For current employees, a club’s EVP is tangible yet is constantly evolving. This is a result of employees frequently assessing the benefits/value they are receiving from the club compared to their expectation, needs, and personal beliefs.

This is the 2nd article of the PGA of Canada's Professional Development Series: Improving your club's talent management outcomes.

The five phases of the PGA of Canada’s talent management framework (see Figure 1 below) play an important role in the establishment of a club or organization’s EVP. If employees have a favorable experience and their expectations are met (or exceeded) during each of the five phases, a positive EVP will be created. Conversely, if employees have a poor experience and their needs are not met (ex: salary, relationship with team leader), a weak or negative EVP will be manifested.

FIGURE 1 Talent Management Improves EVP

PHASE 5 PHASE 1 P

HA

SE

2 PHASE 3

P

HA

SE

4

T

alent A

ssessment Business & People Planning Recru

itmen

t & S

election Onboarding & Training

Per

form

ance

Ma

na

gem

ent

IMPROVEDEmployee Value

Proposition

Organizational/club leaders who understand the power of a strong EVP and invest the time and resources to monitor and improve their club’s EVP will be rewarded with happier and more productive employees and stronger bottom line results.

We will now look more closely at EVP and share some proven activities that any club can use and/or customize to improve their EVP.

The Importance of Commitment to Performance

When considering the best way to build a strong EVP it is important to understand the notion of employee commitment and its impact on employee performance. Ultimately, it is the collective performance of employees that will determine the success of any organization; improving a club’s EVP is a means to establishing the right conditions to drive stronger employee commitment and ultimately performance.

Fact: an employee’s commitment to their organizations account for about 50% of their overall performance. Commitment is broken down into two categories: rationale and emotional commitment which are defined below:

FIGURE 2 Two Sides of Commitment

RATIONALE COMMITMENT: EXTENT TO WHICH AN

EMPLOYEE’S FINANCIAL AND DEVELOPMENTAL NEEDS

ARE MET

EMOTIONAL COMMITMENT: EXTENT TO WHICH AN

EMPLOYEE DERIVES PRIDE, ENJOYMENT, AND MEANING

FROM WORKING IN THE ORGANIZATION

EMPLOYEE VALUE PROPOSITION

An employee’s level of emotional commitment as compared to their rationale commitment has been found to be four times more powerful in terms of driving performance. Specifically, studies have concluded that an employee’s emotional commitment to their job and organization have resulted in significantly higher discretionary effort scores (which has been positively associated with higher levels of engagement and performance).

Rationale commitment (ex: an employee’s perception of his/her salary and/or organization’s stability) is important as it does positively impact the initial attraction an employee feels towards an organization, as well as their intent to stay with the organization over the long term.

Compensation, for example, is without question one of the most powerful levers a club can pull to attract and hang on to their employees. But if the objective is to not only attract, but to engage, drive top performance, and retain your club’s best employees, then leaders must look for ways to increase their employees’ emotional commitment scores.

Strategies to increase both types of commitment, especially emotional commitment, will be considered as we look at the elements that make up an organization’s EVP.

A Club’s EVP: A Key to Attraction, Performance, & Retention

Researchers have landed on five key workplace elements that attract new hires to an organization, drive higher levels of engagement and performance, and increase retention (see Figure 3).

Obviously, the time and effort an organization applies to fostering each of these five elements will significantly contribute to the overall strength of the organization’s EVP.

1: THE WORK / JOB ROLE

• The nature of the role and the fit with employee’s interest and skills• Work-life balance provided by role• Social recognition associated with role• Location of role• Impact of role

2: THE REWARDS (ASSOCIATED WITH ROLE):

• Salary • Vacation entitlements• Health benefits• Retirement benefits 3: THE OPPORTUNITY:

• Future career opportunities within organization• Skill development opportunities• Mediocracy – whether or not opportunities are based on abilities and performance versus some other social/political factor(s)

4: THE ORGANIZATION:

• The stability of organization• Growth rate / market position• Diversity• Environment/social responsibility• Culture – respect, empowerment, ethics, values

5: THE PEOPLE:

• Quality of co-workers• Quality of direct manager• People management approach• Reputation of leadership team

FIGURE 3Elements of and Employee Value Proposition (EVP)

Work

OrganizationRewards

Opportunity

People

*EVP DEFINEDHow the labour market and existing employees perceive the value they

will gain by working for or staying with your organization.*CORPORATE LEADERSHIP COUNCIL, 2005

EMPLOYEE VALUE PROPOSITION

What Attracts Employees Is Not What Drives Their Retention

People are attracted to organizations that offer jobs that align with their interests and skills, offer a competitive salary, and who are thought to provide opportunity for growth and development. These elements drive rationale commitment to the organization.

People stay with organizations who, in addition to offering a solid job, provide a working environment that is innovative and respectful, promote managers who are able to build great relationships, hire other talented employees, and deliver on career development and growth opportunities. These elements drive emotional commitment to the organization.

Figure 4 and 5 attempts to summarize what is known about the various elements of an EVP and the effects it has on employee commitment, performance, and other related benefits.

Assessing Your Club’s / Organizations EVP

Now that you have the various elements of an EVP and the importance of fostering both rationale and emotional commitment in your employees, how would you assess your commitment to your own club or organization?

To find out your personal level of commitment, complete the “EVP – Self Assessment” questionnaire (see Figure 6) and add up your score.

FIGURE 4Impact of a strong EVP: Attraction benefits

ORGANIZATION WITH STRONG EVP:

Increase attraction by 60%

Can reduce new hire compensation by up to 50%

Increase retention by 30%

Drive sustain rationale commitment to organization

Employees join organizations primarily for the work, rewards and opportunities they’ve been promised....

ATTRACTION BENEFITS

Work

OrganizationRewards

Opportunity

People

FIGURE 5Impact of a strong EVP: Retention benefits

ORGANIZATION WITH STRONG EVP:

85% increase for both new hire and existing employees’ commitment to organization

35% increase in performance

Drive and sustain emotional commitment to organization

Employees stay with organizations for the opportunities provided, the leaders/people they work with, and organizational culture.

RETENTION BENEFITS

Work

OrganizationRewards

Opportunity

People

EMPLOYEE VALUE PROPOSITION

This questionnaire, while not scientifically validated, has been used in a number of workshops and provides a fairly accurate assessment of not only an employee’s commitment level, but the strength of their organization’s EVP.

Individuals who’s EVP score is greater than 40 are likely feeling good about their role, are performing well, have high commitment to their colleagues and their organization. EVP scores below 40 typically indicate that these individuals are having difficulty with some aspect of their role, their team leader or colleagues, etc. and their commitment level is not what it should be to achieve and/or sustain top performance.

Ideas to Improve Your EVP

Figures 7 to 11 contain a summary of specific ideas for strengthening the five elements of an organizations EVP – Work, Rewards, Opportunity, Organization, and People.

FIGURE 7EVP Improvement Suggestions (WORK)

WORK1. Ensure job posting is accurate so employee isn’t confused2. Discuss, clarify roles and responsibilities changes3. Scope of work needs to be achievable – work/ life balance, work from home/option

NAME HERE:

Indicate your level of agreement with the following statements StronglyDisagree

Neither Agree or Disagree

StronglyAgree

1My role is what I expected when hired and is still a good fit for my skills and interests.

1 2 3 4 5

2I am satisfied with my salary as it fairly compensates me for my experience and the value I bring the organization.

1 2 3 4 5

3I have had career discussions with my team leader, know what my potential career path will be, and I’m excited about where I’m heading

1 2 3 4 5

4 My role affords me a good work-life balance 1 2 3 4 5

5 I have a strong team leader who I believe in and can learn from 1 2 3 4 5

6 I truly believe in what the organization is trying to accomplish 1 2 3 4 5

7 I derive a lot of pride telling people I work for my organization 1 2 3 4 5

8 My work colleagues are talented and I can learn from them 1 2 3 4 5

9I’m satisfied with the other benefits I receive (ex: health, pension, vacation)

1 2 3 4 5

10I believe the best way to achieve my career goals is to stay with the organization

1 2 3 4 5

11I have confidence in the senior leadership team to guide the organization to a successful future state

1 2 3 4 5

12My work environment is respectful and I have colleagues at work that I would call “friends”

1 2 3 4 5

EVP Score: /60

FIGURE 6 EVP – Assessment (SELF)

EMPLOYEE VALUE PROPOSITION

About the AuthorTim Robinson has over 25 years of experience in leadership development, learning, and talent management and is currently working as an Associate in the Talent and Leadership Development practice for Lee Hecht Harrison Knightsbridge (a Toronto-based international Talent and Leadership Development company).

Prior to joining LHH Knightsbridge, Tim was a senior Human Resources leader at a large Canadian crown corporation (pop. 65,000) where he held progressively more responsible positions culminating in having stewardship for the corporation’s overall talent management and learning functions. During this time, he led national teams who designed and delivered operational training, leadership development, lean six sigma certification, performance management, and talent segmentation.

Tim has also worked in Canada’s national sport system where he directed the development and implementation of a national coach-development program. During this period, he worked to identify and develop some of Canada’s top national and international sport coaches.

Tim holds a Ph.D. in Education from the University of Ottawa and is currently a member of the Leadership and Learning Council of the Conference Board of Canada. He is an avid golfer and long-time club member who has recently broken 80 with the help of numerous PGA Teaching Professionals over the years!

FIGURE 8EVP Improvement Suggestions (REWARD)

REWARD1. Educate staff: provide benchmark info on total compensation: salaries, benefits, etc.2. Allow extra holidays in conjunction with travel, competitions, etc.3. Complimentary tickets to other sport competitions, restaurant voucher for family, lots of SWAG

FIGURE 9EVP Improvement Suggestions (OPPORTUNITY)

OPPORTUNITY1. Conduct annual career discussion separate from performance; career profile2. Establish a formal mentoring program for new employees3. Establish and communicate that employee development is organization priority and budget exists

FIGURE 10EVP Improvement Suggestions (ORGANIZATION)

ORGANIZATION1. Take a pulse, survey, find out how people are feeling about organization; involve them in action planning2. Establish, communicate and live your values; align all hiring, promotions with values; terminate for values violation3. Allow, encourage and support employees to work on related social causes that do good for community

FIGURE 11EVP Improvement Suggestions (PEOPLE)

PEOPLE1. Establish high leadership standards and hire, promote, and assess against these standards.2. Communicate vision, goals, and include employees in annual strategic reviews; treat as adults and share information broadly3. Tell people that not only does their work matter…but they matter. Say thank you for a job well done.

These ideas have been generated over many years in workshops that have been facilitated with front-line employees, managers, and senior leaders who are looking to improve their organization’s ability to attract new employees, motivate top performance and retain their best people. You are encouraged

to review this list, talk with your employees about what might benefit them, modify your existing practices and/or adopt one or two new practices. I’m confident you’ll begin to notice a difference in your employees’ attitudes and more importantly, their performance in the days/months ahead.

EMPLOYEE VALUE PROPOSITION