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The Power of Employment Value Proposition
The Power of Employment Value Proposition
commitment from an
What is an Employment
Value Proposition (EVP)?
An EVP is the value or benefit an employee obtains through
employment- simply put the value of an organisations
employment experience. Developing an EVP has become the
key to success in acquiring talent and in fact is no longer an
option.
The results of
communicating the
value of employment
can result in an
estimated 29%
increase in access to
passive job candidates.
(Source: Corporate Leadership Council, EVP
Survey: Corporate Leadership Research 2006)
Organisations with effective EVPs are able to source from a much deeper pool of
talent in the labour market. Top-performing organisations draw candidates from
Improved
Attractiveness
about 60% of the labour market, including passive candidates who would
otherwise be content to stay with their current job. Lesser-performing
organisations are able to source only from the most active 40% of the workforce.
Greater
Employee
Commitment
Organisations with effective EVPs are able to reduce the compensation premium
Compensation
Savings
*Information in this section was obtained from the Corporate Leadership Council Article, Delivering on the employment brand promise
and potential employees are the keys to retaining and attracting talent in a recession. Keep in mind that
the employment brand needs to originate from your business strategy. In tough times, organisations need
to take a look at the performance and health of the business which impacts the brand value. Review the
strategy and consider what and how it needs to be change. From this, build the employer brand and EVP.
4
If the market dictates a major change to the business then the employer brand also has to change .
2
3
4
Key contributors
are a companys
highest retention
risks- top performers
are most likely to
find opportunities
elsewhere, even in a
strained labour
market.
(Source: Medhunters, Even in a Recession,
2008)
Dr. John Sullivan, The economic downturn means that hiring freezes will soon decimate recruiting
6
7
Carole Watkins, Cardinal Health, We must ensure the EVP is understood and embedded before the pond freezes over.
ibid
So why do your best employees leave or stay? And how do you attract top talent in the highly competitive
labour market during a recession? This vital question can be answered by your companys employment brand
and EVP initiatives a set of tools to create a unique and compelling place to work and grow.
As all employees are different, the task for the EVP is to appeal to as many employee segments as possible,
specifically to those candidates who will be a good fit with the organisation.
Organisations need a unique EVP to underpin their employer brand. Once organisations have strong
employment attributes that are realistic and achievable, they can begin to align them with the messages
senior management wants to convey, as well as those the target audience wants to hear 8 .
The first step, however, is the most vital. Selecting the right EVP attributes explain 77% of the variation in
EVPs attractiveness in the labour market 9 .
8
9
The single most important finding of the research was that overall employee satisfaction as a measure is no
guarantee against high turnover (Please refer to Figure 3), though staff satisfaction is clearly important,
employees change jobs for a variety of reasons and not just due to dissatisfaction with their current role.
Although its important to understand what factors lead to employee satisfaction, it is imperative to understand
which of these factors correlate directly to the intention to leave the organisation. Results showed that the
overall job satisfaction of Australian and New Zealand workers are almost identical- 75% of respondents in
Australia and 75% of New Zealand respondents have indicated that they are totally satisfied with their current
job, whilst 7% of respondents in Australia and 8% of respondents in New Zealand have indicated their
dissatisfaction.
Overall
dissatisfied 7%
Can't say, 4%
Can't say, 1%
Overall
dissatisfied
8%
Overall
satisfied 75%
Overall
satisfied 75%
Despite the fact that 75% of respondents in Australia and 75% of respondents in New Zealand have reported
overall job satisfaction with their current job, a total of 30% satisfied respondents in Australia and New
Zealand were planning to leave (Please refer to Figure 3). Results also showed 83% of dissatisfied
respondents in New Zealand have indicated their intention to leave their organisation in 2009, this result is
15% higher than the Australian dissatisfied respondents.
68%
70%
60%
50%
40%
30%
20%
12%
20%
10%
7%
10%
0%
Australia- Satisfied
but intending to
leave
AustraliaDissatisfied and
intending to leave
Australia- Not
applicable
Table 1: Opinions on job satisfaction from Australia and New Zealand respondents
Generally, respondents in Australia and New Zealand are satisfied with job
recognition, job security and training provided from their organisation (Please
refer to Table 1). However, less than half the number of respondents in both
countries indicated that they are less satisfied with job opportunities provided
by their organisation (Australia-43%, New Zealand-42%), the amount of pay
they get in their current job (Australia-49%, New Zealand-48%) and their
manager/management quality
10
Almost 30% of
employees seem to
be on the lookout for
new jobs and more
than 90% display
below average
levels of
commitment towards
their organisations.
(Source: CEB Research)
10
manager/management quality 11 are the major dissatisfaction drivers that cause intention to leave.
Therefore, compensation/pay, job opportunities and manager/management quality 12 have the greatest impact
on overall job satisfaction and intention to leave. As a result, these satisfaction drivers might have the greatest
impacts on talent retention and attraction in the Australia and New Zealand labour markets. HR professionals
should consider these major satisfaction drivers/factors for the creation of their organisations EVP.
10%
20%
Baby Boomers
30%
Gen X
40%
Gen Y
50%
60%
70%
Gen Z
A tight labour market and the shift in demographics have created a large
generation gap in the workforce. Offering unique benefits or stimulating
incentive programs are a good way to attract qualified applicants and motivate
the current young employees.
Manpower research on job satisfaction in 2008 has profiled key satisfaction drivers of different generations in
Australia and New Zealand: Baby boomers, Gen X, Gen Y and Gen Z.
Results showed that Gen X respondents (born between 1961-1975) are more satisfied with their current job
compared with the Baby boomers, Gen Y and Gen Z respondents, with only one satisfaction driver/fact falling
11
12
below 50%- job opportunities (46%) is a major issue in the Gen X workforce as Gen X talent will more than
likely be seeking future career development. HR professionals should take this into account for their EVP
attributes selection in order to attract and retain Gen X skilled talent.
The results of Gen Y (born between 1976- 1990) and Gen Z (born in 1991 onwards) respondents are similar,
they indicated less satisfied (below 50%) with their current pay and the job opportunities provided by their
organisation, Gen Z respondents also indicated that they are less satisfied with their manager/management
quality 13 but surprisingly they are more happy/satisfied with the training provided by their organisation
compared with the other generation groups.
Only 4.9% of Baby Boomer respondents indicated that they are intending to retire in the next 12 months 14 ,
this trend might reflect the impact of current economic downturn as older workers delay their retirement to
stay in the workforce longer.
Based on the results, the key EVP attributes to attract/retain Gen X and Gen Y talent should include job
opportunities and pay/compensation.
13
14
The survey results of the Corporate Leadership Council survey and the more recent Manpower research on
job satisfaction are similar- with job opportunities/future career opportunities and compensation/pay as the top
EVP attraction drivers/core attributes.
Source: Adopted from Corporate Leadership Council, EVP Survey: Corporate Leadership Research 2006
Communication
Once the EVP has been designed, organisations must credibly relay their EVP to the labour market. The most
powerful channel, current employees, while used frequently, must be leveraged to communicate attributes of
the EVP. Turn employees into EVP advocates by providing them with information and tools to promote the
organisation.
Clearly, how organisations manage their downsizing efforts will have a long-term impact on their employment
brand as well as EVP. Employers of Choice understand the value of looking at HR from a marketing
perspective. Leading organisations strive to develop and communicate a strong EVP that resonates with the
type of employees they wish to recruit and retain 15 .
As companies navigate through turbulent economic times, organisations need to keep in mind that the way
they treat their employees today- both those that are leaving and those that remain- will have an impact on
their employment brand and EVP. As economic conditions improve, they might find themselves disadvantage
in the face of even greater heated talent competition of talent than exists today. By treating departing people
with dignity and supporting their transition an organisation can protect their employment brand and EVP, it will
give organisations the advantage over their competitors when the time comes to recruit again 16 .
HR experts suggest that, in order to attract and retain adequately to keep operations running, employers need
to create an environment in which people enjoy attending work, are fulfilled in their role and share in working
towards a common goal.
As a result, creating a unique EVP and an employment brand is emerging as the latest focus and solution for
human resource professionals who recognize the problems of the pending retirement of the Baby Boomers
and shortage of young people. Compounding that challenge is younger workers propensity to seek work-life
balance, opportunities to ascend quickly and to have meaningful work that fits their values.
Add the economic downturn, which is seeing even profitable companies implement layoffs to maximize
earnings and the ensuing race for talent will be intense.
15
16
Research Sources
Manpower Research on Job Satisfaction:
This research was undertaken in partnership with Roy Morgan Research, utilizing a panel of 3,364
people over the age of 14 in the Australia and New Zealand workforces.
Other research sources have included in footnotes
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Manpower Services (Australia) Pty Ltd 2009
This publication, whether in part or whole, may not be reproduced without the approval of Manpower
Services (Australia) Pty Ltd.