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Attracting and Retaining Critical Talent Segments in India

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

Attracting and Retaining Critical Talent Segments in India


Building a Competitive Employment Value Proposition (EVP)
I. Defining the Differentiated Employment Value Proposition
Key Questions Answered What EVP attributes are most important for driving attraction and commitment? Where are the biggest opportunities to differentiate the EVP from competitors? How can we ensure that the EVP is aligned with organisational strategy?

II. Managing EVP Variation Across Key Talent Segments


Key Questions Answered How different are the preferences of key talent segments? What EVPs will be most successful for key talent segments? How can we manage EVP consistency across key talent segments?

III. Ensuring EVP Credibility in the Labour Market


Key Questions Answered How can our organisation most effectively communicate the EVP? How can our organisation leverage the most trusted communication channels? How can our organisation embed the EVP into our day-to-day operations?

Profiled Case

Profiled Case

Profiled Cases

Employment Value Proposition Redesign

Segment-Specific EVP Communication

Life CycleBased EVP Delivery

Employee-Centric EVP Delivery

Employee Recruiters

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

Source: Corporate Leadership Council research.

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

Attracting and Retaining Critical Talent Segments in India


Building a Competitive Employment Value Proposition (EVP)
I. Defining the Differentiated Employment Value Proposition
Key Questions Answered What EVP attributes are most important for driving attraction and commitment? Where are the biggest opportunities to differentiate the EVP from competitors? How can we ensure that the EVP is aligned with organisational strategy?

II. Managing EVP Variation Across Key Talent Segments


Key Questions Answered How different are the preferences of key talent segments? What EVPs will be most successful for key talent segments? How can we manage EVP consistency across key talent segments?

III. Ensuring EVP Credibility in the Labour Market


Key Questions Answered How can our organisation most effectively communicate the EVP? How can our organisation leverage the most trusted communication channels? How can our organisation embed the EVP into our day-to-day operations?

Profiled Case

Profiled Case

Profiled Cases

Employment Value Proposition Redesign

Segment-Specific EVP Communication

Life CycleBased EVP Delivery

Employee-Centric EVP Delivery

Employee Recruiters

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

Source: Corporate Leadership Council research.

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

Through its Employment Value Proposition Survey, the Council measured the impact of 38 attributes on attraction and employee commitment in six steps: 1. Respondents were asked to review a list of 38 organisational attributes that they may or may not consider when evaluating an organisation as a potential employer. 2. Using a Q-Sort methodology, respondents were asked to sort the attributes in order of importance when evaluating an organisation as a potential employer. 3. The Council compared the individual attribute rankings to determine the relative importance of each attribute for attracting critical talent. 4. Respondents across different organisational tenures were asked to indicate their perceptions about the delivery of each attribute in their own organisation. 5. The Council measured employee commitment using attitudinal questions and a series of factor analyses. 6. The Council used multivariate regression techniques to analyse survey responses to determine how perceptions of attribute delivery affect employee commitment.

Section I: Defining the Differentiated Employment Value Proposition

A Six-Step Assessment of EVP Impact


The Council built a proprietary methodology to determine which attributes of the EVP are most important Measuring Impact on Attraction
1 Survey respondents are shown a list of attributes that make up the EVP of a potential employer. 2 Respondents force-rank the attributes in terms of which are most important when considering a potential employer using a Q-Sort methodology.
Vacation Compensation Location Respect Camaraderie

3 The Council determines the relative importance of attributes across respondents and conducts a series of cluster analyses to group the attributes.
Percentage of Respondents Rating EVP Dimension in Top Five Most Important Percentage of Respondents Rating EVP Dimension in Top Five Most Important The Opportunity The Rewards = 23% = 23% The Opportunity The Rewards 50 = 23% = 23% 46
50

The Work = 14.9% The Work = 14.9%

The Organization = 8% The Organization = 8%

The People = 9% The People = 9%

46 31 28 31 22 20 17 22 20 12 17 11 12 11 24 24 16 13 13 12 11 16 10 10 9 13 7 6 6 13 12 6 12 11 5 5 4 4 4 11 5 10 10 4 9 3 2 7 6 6 6 5 5 5 4 4 4 4 3 2

34
Percentage of 25 Respondents Rating in Top Five of Percentage Respondents Rating in Top Five

31 34 28 31

25

15 9 15 9

12 11

0 0

6 Based on a series of multivariate regression analyses, the Council determines how perceptions of attributes drive employee commitment.
Impact of Employee Perceptions on Commitment Impact of Employee Perceptions on Commitment The Opportunity The Rewards = 36% = 26% The Opportunity The Rewards = 36% = 26%
45% 50% 42% 45% 39% 42% 39% 29% 26% 28% 26% 25% 29% 23% 25% 23% 45% 40%40% 45% 36% 40%40% 36% 29% 29% 21% 21% 15%14% 15%14% 50%

5 The Council asks respondents a series of attitudinal questions and then conducts a series of factor analyses to measure employee commitment.

4 The Council asks respondents at different points in their employee life cycle about their perceptions of each attribute.

The Work = 30% The Work = 30%


45% 40%39% 45%

The Organization = 33% The Organization = 33%

The People = 38% The People = 38%


44%43% 42%

Maximum 25% Impact on Commitment Maximum 25% Impact on Commitment

28%

36%35%35% 40%39% 33%32%32% 36%35%35% 30%30%29% 33%32%32% 30%30%29% 22% 22% 15% 15%

44%43% 37%36% 42% 37%36% 28% 28%

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Measuring Impact on Commitment


Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

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Dimensions

Dimensions

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Conceptual and operational definitions of what attracts key talent, along with corresponding advice on how to retain it, vary significantly in the labour market. As a result, senior HR leaders and their executive colleagues have grown increasingly frustrated with the failure of EVP branding efforts to yield the right talent for the business. To solve this problem, the Council utilized a variety of sources to identify the possible attributes that could comprise an EVP. These sources included job postings, company Web sites, business press articles, consultant literature, academic and business research, past Council research, and interviews with Council members. A master list of more than 200 attributes was compiled and evaluated for similarity, distinctiveness, universality, and overall ratability, leading to the consolidated list of 38 attributes seen below. This final list of 38 organisational attributes can be categorised into five categories: The Rewards, The Opportunity, The Organisation, The Work, and The People.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Testing an EVP Along 38 Attributes


Of all of the potential attributes, which are most important for attraction and retention?
Rewards Opportunity Organisation People Work

The Rewards
Compensation

The Opportunity
Development Opportunities Future Career Opportunities Organisation Growth Rate Meritocracy Organisational Stability

The Organisation
Customer Reputation Diversity Empowerment Environmental Responsibility Ethics  Great Employer Recognition Industry Informal Environment Market Position Product Brand Awareness Product Quality Respect Risk Taking Organisation Size Social Responsibility Technology Level

The Work
Business Travel Innovation Job Impact JobInterests Alignment Location Recognition WorkLife Balance

The People
Camaraderie Collegial Work Environment Coworker Quality Manager Quality People Management Senior Leadership Reputation

Health Benefits Retirement Benefits Vacation

Note: Building on existing academic and business research, business news, organisation and employment Web sites, and more than 100 member interviews, the Council distilled the EVP into 38 representative attributes. These 38 attributes comprise five EVP attribute groupings that together define an organisations EVP.
CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

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Definitions of EVP Attributes


Attribute Name Business Travel Camaraderie Collegial Work Environment Compensation Coworker Quality Customer Prestige Development Opportunities Diversity Empowerment Environmental Responsibility Ethics/Integrity Formal/Informal Work Environment Future Career Opportunities Great Employer Recognition Growth Rate Health Benefits Industry Desirability Innovative Work JobInterests Alignment Definition The amount of out-of-town business travel required by the job Whether working for the organisation provides opportunities to socialise with other employees Whether the work environment is team-oriented and collaborative The competitiveness of the jobs financial compensation package The quality of the coworkers in the organisation The reputation of the clients and customers served in performing the job The developmental/educational opportunities provided by the job and organisation The organisations level of commitment to having a diverse workforce The level of involvement employees have in decisions that affect their job and career The organisations level of commitment to environmental health and sustainability The organisations commitment to ethics and integrity Whether the work environment is formal or informal The future career opportunities provided by organisation Whether or not the organisations reputation as an employer has been recognised by a third-party organisation The growth rate of the organisations business The comprehensiveness of the organisations health benefits The desirability of the organisations industry to the respondent The opportunity provided by the job to work on innovative, leading edge projects Whether the job responsibilities match your interests

Source: Corporate Leadership Council research.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Definitions of EVP Attributes (Continued)


Attribute Name Job Impact Location Manager Quality Market Position Meritocracy Organisation Size Organisational Stability People Management Product Brand Awareness Product/Service Quality Recognition Respect Retirement Benefits Risk Taking Senior Leadership Reputation Social Responsibility Technology Level Vacation WorkLife Balance The level of impact the job has on outcomes The location of the jobs the organisation offers The quality of the organisations managers The competitive position the organisation holds in its market(s) Whether or not employees are rewarded and promoted based on their achievements The size of the organisations workforce The level of stability of the organisation and the job The organisations reputation for managing people The level of awareness in the market place for the products brand The organisations product or service quality reputation The amount of recognition provided to employees by the organisation The degree of respect that the organisation shows employees The comprehensiveness of the organisations retirement benefits The amount of risk that the organisation encourages employees to take The quality of the organisations senior leadership The organisations level of commitment to social responsibility (e.g., community service, philanthropy) The extent to which the organisation invests in modern technology and equipment The amount of holiday/vacation time that employees earn annually The extent to which the job allows you to balance your work and your other interests Definition

Source: Corporate Leadership Council research.


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When attracting candidates, organisations must first identify which EVP categories are most important, then focus on improving EVP perceptions and awareness within the labour market. Effectiveness in attracting talent ultimately depends on prioritising the EVP categories that are most important to candidates. The Councils India Employee Value Proposition Survey indicates that the Indian talent market is more similar to the UK market than it is to its traditional competitor, China. As shown in the graph on the adjoining page, Indian talent places a high premium on opportunity-related aspects of the EVP. Indian candidates also place a greater premium on the work-related aspects of the EVP than China or the United States.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Opportunities Key to Attraction Across Geographies


Indian candidates value work-related attributes in addition to opportunities and rewards when evaluating an employment offer
Importance of EVP Categories for Attracting Talent India Versus Other Countries Indian candidates value workrelated aspects of the EVP more than candidates in the United States and China
100%

11% 15%

10% 10% 12%

8% 8% 18%

10% 9%

Attribute Categories The People The Organisation The Work The Opportunity The Rewards

26% 22%
Relative Importance Indexed to 100
50%

31%

26%

34%

33%

and also place a higher premium on opportunityrelated aspects compared to other talent markets.
0%

37% 18%
India China

40% 22%

United States

United Kingdom

Source: China HR Executive Board research; Corporate Leadership Council research.


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The graph below shows the percentage of respondents globally who listed each attribute within their top five most important attributes when assessing a potential employer. Looking across the attribute categories, opportunities and rewards drive candidate attraction globally more than any other category. Compensation is by far the single most important driver of attraction for candidates, followed by career opportunities, worklife balance, and respect. A few attributes that have been heavily relied upon traditionallysuch as product brand recognition, great place to work recognition, or market positionactually have very little impact on attracting employees to the organisation. Organisations that rely on these attributes alone to attract talent risk lower EVP attractiveness in the labour market.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Opportunity and Rewards Are Most Important Globally


Compensation and career opportunities show disproportionate returns at improving attraction
EVP Attraction Drivers Global Employees The Opportunity
50% 44%

The Rewards

The Work

The Organisation

The People

Compensation is the most important driver of attraction.


33% 28% 22% 20%19%

35% 33%

Percentage of Respondents Rating Attribute 25% in Top Five Most Important

28%

Product brand awareness is relatively unimportant at driving attraction

as is manager quality.

15% 9% 11% 11%11% 12% 4%

17% 15% 13% 10%10% 7% 6% 2%


n re es s

14% 10% 5% 5% 5% 4% 4% 4% 4%
n ilit y

9% 9%

7%

3%
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5%

0%
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EVP Attributes
Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.
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The graph below presents the aggregate EVP attraction preferences of the Indian labour market versus the global labour market and shows the percentage of respondents who listed each attribute within their top five most important attributes when assessing a potential employer. The grey-shaded bars in the graphic on the page below represent the attraction preferences of the Indian labour market, while the diamonds represent the attraction preferences of global candidates. Looking across the EVP attribute categories, opportunities and work characteristics drive candidate attraction more than any other category, followed by organisational characteristics, rewards, and then people. When considering an organisation as a potential employer, future career opportunity is by far the most important driver of attraction for Indian candidates. Interestingly, Indian candidates place significantly lower value on compensation compared to global candidates. Candidates in India in fact place a much higher premium on organisation growth rate, innovation, and technology than global candidates.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Compelling Work and Opportunities Attract in India


Future career opportunity and organisation growth ratenot compensationare most important for attracting talent in India
EVP Attraction Drivers Indian Versus Global Employees The Opportunity The Rewards The Work The Organisation Indian candidates place much greater importance on innovation and technology than global candidates. and significantly less emphasis on compensation.
28%

The People

50%

Compared to global candidates, Indian candidates place much more emphasis on organisation growth rate

India Global

35%

Percentage of Respondents Rating Attribute 25% in Top Five Most Important

26%

25%

26%

25% 22% 20% 19% 15% 11% 10% 21% 21% 17% 15% 15% 10% 10% 10% 6% 6% 3% 12% 8% 7% 7% 7% 7% 7% 4% 7% 7% 5% 2%

12%

6%

3%

0%

CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

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EVP Attributes
Source: China HR Executive Board research; Corporate Leadership Council research.

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The graph below presents the maximum potential impact that delivering each EVP attribute can have on an employees level of commitment, globally. EVP attributes concerning the organisation and its people have the greatest overall impact on driving commitment, though attributes concerning opportunities and work play an important role as well. Development opportunities, job-interests alignment, and respect for employees are the most important drivers, potentially impacting commitment by 45% across the globe. Beyond these top three attributes, however, organisations have a wide array of attributes to rely on when designing EVPs to build commitment. Seven other attributes have impacts of 40% or greater: future career opportunities, recognition, innovation, empowerment, ethics, manager quality, and senior leadership reputation. Importantly, nearly all of these attributes (except people management and ethics) have a consistently high impact on commitment across talent segments. Comparison of global attraction and commitment drivers reveals that while compensation and career opportunities are important for attracting talent, working with quality people in an environment that respects and empowers employees is the key to driving employee commitment.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Quality of the Job Experience Drives Commitment Globally


Development opportunities, jobinterests alignment, respect, and people management are critical for commitment
Impact of EVP Fit on Commitment Global Employees

The Opportunity
50%

The Rewards

The Work

The Organisation

The People

Opportunity drives commitment

45% 42% 39%

45%

45% 41%40% 39%

but compensation is less important.

40% 40% 36%

Maximum Impact on Employee Commitment

28% 26% 25%

29% 25% 23% 21%

29%

36% 35% 35% 33%32% 32% 30% 30%29%

Manager quality becomes critical at driving commitment.

44%43% 42% 37% 36%

26% 22% 15%14% 15%

28%

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CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved.

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EVP Attributes
Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

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The graph below presents the maximum potential impact that delivering each EVP attribute can have on an employees level of commitment in India versus globally. The grey-shaded bars indicate the maximum impact of specific EVP attributes on employee commitment for India while the diamonds reflect the maximum impact on the commitment of global employees. EVP attributes concerning the people aspects of an organisation have the greatest overall impact on driving commitment globally and in India. Coworker quality and manager quality are the most important commitment drivers for India, potentially impacting commitment by 44% and 43%, respectively. The level of rewards is a bigger driver of commitment for Indian employees than for global employees. Further, the level of business travel and work environment are more important for driving employee commitment in India. While many of the strongest drivers of attraction also have a strong impact on commitment, there is not a perfect overlap between the two. In general, opportunities and organisational growth rate are important for attracting talent, but working with quality people in an environment that respects and empowers employees is the key to driving employee commitment.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

People Aspects Drive Employee Commitment in India


Coworker and manager quality, senior leaderships reputation, and empowerment are critical for commitment in India and across the globe
Impact of EVP Fit on Employee Commitment Indian Versus Global Employees The Opportunity The Rewards The Work The Organisation The People

50%
40%

Compared to the global talent market, rewards have more impact on Indian employees commitment.

Level of business travel has a much greater impact on the commitment of Indian employees than global employees.
42% 39% 36% 36% 36% 36% 33%

Compared to global employees, work environment has a much greater impact on the commitment of Indian employees.

People aspects such as coworker and manager quality are most critical for employee commitment in India.
44% 43% 42% 41%

India Global

39% 39% 35% 30% 34% 33% 32% 28%

39%

37%

36% 36% 36%

36% 34% 34% 34% 33% 33% 33% 32% 31%

35%

Maximum Impact on Employee 25% Commitment

29%

28%

15%

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0%

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Source: China HR Executive Board research; Corporate Leadership Council research.

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The Venn diagram presents the EVP attributes that drive attraction and commitment. These attributes form the core EVP, applicable across all major talent segments and geographies. The area of overlap between the two circles highlights the attributes that both attract candidates to the organisation and ensure their commitment once hired. Attributes to the immediate left and right impact either attraction or commitment. Organisations may need to utilise these attributes to create differentiated EVPs, to leverage their organisational strengths, or to tackle specific attraction or commitment problems.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Defining the Core EVP for the Global Labour Market


Out of 38 EVP attributes, seven are critical for driving attraction or commitment across all major talent segments and geographies, but only three drive both
Core EVP Attributes These attributes improve both the quantity of employees attracted and the quality of their commitment levels. Across All Major Segments

Compensation Organisational Stability

Development Opportunities Future Career Opportunities Respect

Manager Quality Collegial Work Environment

Certain EVP attributes are critical drivers of attraction or commitment, but not both.
Top Drivers: Attraction Top Drivers: Commitment

Defining the Core


Core attraction attributes are rated in the top 13 in importance for more than 60% of respondents across all talent segments (e.g., geography, function).* Core commitment attributes have greater than a 30% impact on commitment for all talent segments. Some non-core attributes are important for particular talent segments.

* The Q-Sort methodology forces a distribution of importance across attributes by respondent; the top 13 is one of the breakpoints in the distribution.
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Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

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Organisations in India can rely on the core global EVP attributes to provide more than half of the total potential attraction and retention benefits that an EVP can provide. Specifically, focusing on the seven attributes in the global corecompensation, stability, development opportunities, future career opportunities, respect, manager quality, and collegial work environmentwill yield approximately 56% of the potential attraction and retention benefits in India.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

The Power of the Core Across Geographies


Focusing on the global core attributes captures 56% of the EVP benefits in India

EVP Return* by Strategy

Australia Benefits Received by Focus on Seven Attributes in Universal Core EVP

Canada

China

France

Germany

India

Japan

United Kingdom

United States

59%

60%

60%

58%

58%

56%

54%

58%

60%

* The percent indication in the table is the average return of the compensation premium, labour market sourcing, and commitment benefit. For example, by focusing on the core attributes in India, organisations are able to obtain 56% of the average of the compensation premium, sourcing benefit, and commitment benefit.
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Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

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In addition to the global core attributes, core attraction attributes for the Indian labour market include organisation growth rate, recognition, and worklife balance. Core commitment attributes for the Indian labour market include manager quality, collegial work environment, empowerment, senior leadership reputation, and coworker quality.

Section I: Defining the Differentiated Employment Value Proposition (Continued)

Defining the Core EVP for the Indian Labour Market


Out of 38 EVP attributes, thirteen are critical for driving attraction or commitment in India, but only three drive both
Core EVP Attributes Across All Major Segments in India

Compensation Organisational Stability Organisation Growth Rate Recognition WorkLife Balance

Development Opportunities Future Career Opportunities Respect

Manager Quality Collegial Work Environment Empowerment Senior Leadership Reputation Coworker Quality

Top Drivers: Attraction

Top Drivers: Commitment

Defining the Core


Core attraction attributes are rated in the top 13 in importance for more than 50% of respondents across all talent segments (e.g., region, function) in India.* Core commitment attributes have greater than a 38% impact on commitment for all talent segments in India. Some non-core attributes are important for particular talent segments.

* The Q-Sort methodology forces a distribution of importance across attributes by respondent; the top 13 is one of the breakpoints in the distribution.
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Source: China HR Executive Board research; Corporate Leadership Council research.

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Employment Value Proposition Redesign


Scotiabank Group
A strategy for creating an employment value proposition that a) centres around the most competitive and strategically relevant aspects of the organisation and b) identifies the HR investments that matter most to reinforcing the value proposition.

Company Profiled

Action Scotiabank first diagnoses the strengths and weaknesses of its employment value proposition and creates a new employment brand aligned around the most competitive and strategically relevant aspects of the organisation. Second, Scotiabank prioritises HR investments toward those with the highest impact on its new employment brand. Key Teachings Identify competitive aspects of the value proposition that best align with the organisations strategic priorities and culture. Anchor value proposition around organisations realities to avoid new-hire attrition and dilution of external brand. Align HR investments with the employment value proposition to increase talent attraction and retention outcomes over time.

Likely Return on Investment Significant rise in employee and candidate perceptions of your organisation as an employer of choice Sustained ability to attract and retain employees Higher talent attraction and retention returns from HR investments

Industry: Financial Services Revenue: $27 Billion Employees: 58,113 Headquarters: Toronto, Canada Organisational Challenge Increasingly concerned about its ability to attract talent for hard-to-fill roles, Scotiabank learns through employee surveys, job seeker surveys, and interviews that its employment value proposition lags behind that of its main competitors.

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Practice Driver

Unclear Employment Value Proposition


Concerned about increasing competition for talent
The Future of Talent Management in the Financial Services Industry

Scotiabank experienced undesirable levels of employee satisfaction with its value proposition
Employee Satisfaction with Job Offer 2002Offer Fit Scores*
High

As financial services organisations strive to become more innovative and entrepreneurial, the war for talent is intensifying. Risks mount as products become more complex, organisations more diffuse and the business environment ever more uncertain. Piecing the Jigsaw: The Future of Financial Services PwC, 2006

0.22
Medium

0.25

Low

Scotiabank

Financial Services Benchmark

as well as unsatisfactory perceptions among job seekers about the employment value proposition
Percentage of Employees and Job Seekers That Strongly Agree with the Statement 2003 43% Conclusion from Brand Equity Survey 2002

24%

28%

Job seeker perceptions of Scotiabanks Employment Value Proposition lagged behind that of key labour market competitors.
Encourage a Friend
Source: The Bank of Nova Scotia; PricewaterhouseCoopers, Inc., Piecing the Jigsaw: The Future of Financial Services, 2006; CLC Solutions ; Corporate Leadership Council research.

Best Employer in Canada

Great Place to Work

* Offer fit scores measure employee satisfaction with a range of employment attributes and weights them according to the importance of each attribute in highvalue employee career decisions. Satisfaction levels with employment attributes that are very important to high-value employees are given the most weight.
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Scotiabank focused on four key steps when redefining their EVP: First, Scotiabank identifies the preferences that are most important for driving attraction and retention, and subsequently they assess the labour markets perceptions of Scotiabanks performance against each of those preferences. Second, Scotiabank reduces their list of preferences by focusing on the attributes where they can best leverage their strengths to create the largest opportunity for strategic alignment and competitive differentiation. They further prioritise actions according to implementation cost. Third, Scotiabank prioritises HR EVP investments in the areas that maximise the opportunity for achieving high returns. Finally, Scotiabank actively manages the EVP by incorporating EVP investments into the HR strategic plan and by continuing to measure the impact of investments on key talent outcomes.

Practice in Context

Beyond the Usual Employment Brand Strategy


Scotiabank creates an employment value proposition focused on the most competitive aspects of the organisation and identifies HR investments that matter most to reinforcing the value proposition
Key Aspects of Scotiabanks Employment Value Proposition Strategy

Step #1: Understand Employee and Candidate Preferences and Perceptions

Step #2: Define the Competitive Employment Value Proposition

Step #3: Identify Highest-Return Investments to Reinforce the Employment Value Proposition

Step #4: Implement Employment Value Proposition Improvements and Measure Impact

Identification of Employment Value Proposition Attributes

Identification of Competitive Value Proposition

Identification of High-Return Investments

Implement and Measure High-Return Investments


Prioritization of Investments

Employee Preferences and Perceptions Candidate Preferences and Perceptions

Potential Value Proposition Aspects 1. Recognizes and Rewards Performance 2. Strong Managers 3. Fun, Hardworking Colleagues 4. Successful Organisation 5. Many Career Opportunities 6. Strong Relationships 7. Cares About People

Relevance to Strategic Objectives High Medium Medium

Perceived as Current Strength by Employees and Candidates Low Low High

Opportunity Implementation for Competitive Cost Differentiation Medium Medium Low High Low High

Conclusion
Rewarding and Recognizing Performance Rewarding and Recognizing Performance Jobs Online Position Vacancy Staffing Career Management Performance Management System Appreciation programmes Incentive Programmes Base Salary Programme Management Incentive Programme Candidate selection Leading Edge Programme Financial Services MBA Leading Edge Programme Educational Programme FinancialAssistance Services MBA Institute of Canadian Bankers (ICB) Educational Assistance Programme Acting Allowance Institute of Canadian Bankers (ICB) Acting Allowance
Related Engagement Attributes Recognition Related Engagement Attributes Promotion Recognition Promotion

Focus area; critical to strategy Current weakness, low differentiation Low strategic relevance Focus area, competitive strength Low opportunity for differentiation Focus area, strong differentiation Low strategic relevance
High Engagement High Impact Engagement Impact

Establishing Strong Relationships Establishing Strong Related Engagement Attributes Relationships Manager Quality Related Engagement Attributes Coworker Quality Manager Quality Coworker Quality Orientation Programme Position Vacancy Staffing ViewPoint Survey/Actions Employee Community Programmes Candidate Selection Accommodation Policy Alternate Work Arrangement Mentorship Programme Referral Programme Scotiabank ReferralScholarship ProgrammeProgramme Work Experience Programmes Scotiabank Scholarship Programme Employee Policy Work Communication Experience Programmes Ideas in Action Employee Communication Policy Pension IdeasPlan in Action Pension Plan Guidelines for Employing Family Suspensions, Resignations Policy Guidelines for Employing Family Employee HumanResignations Rights Suspensions, Policy Occupational Safety Employee Health Humanand Rights Smoking Policy Health and Safety Occupational Smoking Policy

Successful Company Successful Related Engagement Attributes Company Senior Team Quality Related Engagement Attributes Company SeniorBrand Team Quality Company Brand Leadership Resource Planning Performance Management System Leadership Development Corporate Branding/CSR

1
Effectiveness Gap

Management Incentives Public Relations Succession Planning

Leadership Development Orientation Programme Performance Management System Career Management Position Vacancy Staffing Candidate Selection Base Salary Programme Appreciation Programme Alternate Work Arrangement

Executive Communication Mentorship Programme

ROI

Measure Impact on Investments


Internal Perception of EVPs
Employee Share Ownership Plan Job Employee Level Protection Share Ownership Plan Town Hall Conference Job Level Protection Town Hall Conference

High Medium High Low

High High High High

Low Medium Low Low

High Low High Medium

Brand Equity Survey Employer of Choice Survey

3 2 Execute on Highest Impacting Programmes


Global HR Strategy 2005 Priorities Global orientation programme Launching of compensation philosophy Leadership development Implementation of new learning programmes New approach to performance management New recruiting marketing campaign

Moderate Engagement Moderate Impact Engagement Impact Low Engagement Low Impact Engagement Impact

External Perception of EVPs Annual Employment Preferences Survey Annual Engagement Pulse Survey

Scotiabank Insight Focus employment value proposition on aspects that drive attraction and retention. Anchor employment value proposition in workplace realities.

Scotiabank Insight Focus on aspects of the employment value proposition that support strategic priorities and are competitive strengths.

Scotiabank Insight Use key aspects of the employment value proposition as a filter to prioritise HR investments.

Scotiabank Insight Ensure EVP investments have real impact on talent attraction and retention.

We will highlight these steps on the following pages. For full text of this case please refer to the Council study, Attracting and Retaining Critical Talent Segments (Vol II).
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Source: The Bank of Nova Scotia; Corporate Leadership Council research.

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m Having identified, via employee and candidate survey and focus groups, the seven EVP attributes that matter most, and where its relative strengths and weaknesses lie, Scotiabank then conducts a prioritisation exercise to select final EVP attributes. To ensure the organisation defines an EVP that is strategically relevant to the organisation, HR leads an executive steering group of business unit heads, including the SVP of public affairs and the EVP of marketing, that is tasked with defining the competitive value proposition by assessing each of the seven potential EVP aspects in terms of four decision criteria: 1. Is the EVP aspect currently perceived as a strength or weakness? 2. Is the EVP aspect relevant to our corporate brand and business strategy? 3. Does the EVP aspect offer an opportunity for competitive differentiation? 4. Are there high costs related to delivering the EVP aspect? Based on all four decision criteria, the Steering Group decides to focus on three of the EVP aspects that best align with strategic goals, offer the best opportunities for labour market differentiation, and represent current strengths of the organisation. While the EVP aspect of recognising and rewarding performance is not a current strength, Scotiabank still decides to include this aspect as an anchor of its EVP due to its importance to overall strategy and its importance to talent attraction and retention.

Step #2: Define the Competitive Employment Value Proposition

Identifying Competitive EVP Aspects


An executive steering group identifies where to focus the employment value proposition by assessing strategic relevance, implementation cost, and competitive differentiation
Competitive Value Proposition Decision Criteria
Potential Value Proposition Aspects 1. Recognizes and Rewards Performance 2. Strong Managers 3. Fun, Hardworking Colleagues 4. Successful Organisation 5. Many Career Opportunities 6. Strong Relationships 7. Cares About People Perceived as Current Strength by Employees and Candidates Low Low High High High High High Relevance to Strategic Objectives High Medium Medium High Medium High Low Opportunity for Competitive Differentiation Medium Low High High Low High Medium Implementation Cost

EVP Focus Areas

For more detail on criteria used to rate attributes, please see full case version in the Council study, Attracting and Retaining Critical Talent Segments (Vol II).

High Medium Low Low Medium Low Low

Critical to strategy Low opportunity for differentiation Low strategic relevance Competitive strength Low opportunity for differentiation Competitive strength Low strategic relevance Together
(Brand Theme) We recognise and reward performance. We are a successful company. We believe in the value of strong relationships.

Executive Steering Group Background Cross organisational executive steering group Chaired by the Head of HR Convened throughout the process of creating the EVP to provide guidance and support and for the project team to secure executive buy-in
SVP Public Affairs EVP Marketing EVP HR (Chairman)

Six SVPs Business Units

Objectives Provide business line perspective to ensure the EVP is strategically and globally relevant Support project team from a capital investment perspective and to overcome internal barriers Provide subject-matter expertise (i.e. head of Marketing, head of Public Affairs) and strategic counsel
Source: The Bank of Nova Scotia; Corporate Leadership Council research.

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Having selected its three final core EVP attributes, HR prioritises investments in the policies and programmes with highest impact on reinforcing the EVP. To identify highest-return investments, HR assesses every policy or programme on two dimensions: 1. The extent to which the organisation is currently delivering the policy or programme effectively 2. The estimated impact on talent attraction and retention from investments in the policy or programme HR targets improvement of the policies and programmes most in need of improvement and where they believe the talent attraction and retention return is the greatest.

Step #3: Identify Highest-Return Investments to Reinforce the Employment Value Proposition

Prioritising Investments
HR prioritises the programmes and policies that have highest impact on reinforcing the value proposition, where there is most room for improvement, and where perceived ROI is highest
Scotiabanks Prioritisation of Highest-Impact EVP Investments 1 2
High
Rewarding and Recognising Performance Related Attributes Recognition Promotion Management Incentives Base Salary Programme Performance Management System Career Management Position Vacancy Staffing Candidate Selection Leading Edge Development Programme Financial Services MBA Educational Assistance Programme Institute of Canadian Bankers (ICB) Establishing Strong Relationships Related Attributes Manager Quality Coworker Quality Mentorship Programme Appreciation Programme Alternate Work Arrangement Orientation Programme Successful Company Related Attributes Senior Team Quality Company Brand Leadership Development Succession Planning Executive Communication Public Relations

Identification of High-Impact EVP Investments

Prioritisation of Investments Leadership Development Orientation Programme Performance Management System Career Management Position Vacancy Staffing Candidate Selection Base Salary Programme Appreciation Programme Alternate Work Arrangement
High Primary HR Priorities

Management Incentives Public Relations Succession Planning


Effectiveness Gap

High Impact

Referral Programme Scotiabank Scholarship Programme Work Experience Programmes Employee Communication Policy Ideas in Action Pension Plan Guidelines for Employing Family Suspensions, Resignations Policy Occupational Health and Safety Smoking Policy

Employee Share Ownership Plan Job Level Protection Town Hall Conference

Executive Communication Mentorship Programme


Low Low

Moderate Impact

ROI
Secondary HR Priorities

Low Impact

HR assesses the impact of each policy or programme on the employment value proposition by evaluating the following attributes: Connection between value proposition attributes and programme or policy Extent to which programme or policy impacts a significant portion of the workforce
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Effectiveness Gap: Gap between importance of programme to employees and current effectiveness at delivering programme ROI: Cost of improving programme relative to potential talent attraction/retention return
Source: The Bank of Nova Scotia; Corporate Leadership Council research.

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Since the rollout of its new EVP, Scotiabank reports that employees and job seekers perceptions of its EVP have been enhanced and that more than 55% of employees and job seekers would now recommend working at the organisation compared to 43% in 2003. The success of the new EVP in the labour market has led to a 25% increase in rsums received, and this has been combined with enhanced quality of candidates; Scotiabank reports new-hire fit with the job offer has increased by 32%.

Results

Increasing Talent Returns of Value Proposition Investments


Employee and candidate perceptions of Scotiabanks employment value proposition have significantly improved
Percentage of Employees and Job Seekers Who Strongly Agree with the Statement About Scotiabank 2003 Versus 2005 55% 44% 34% 24% 28% 43%
2003 2005

Improvement in Fit with Job Offer* 2002 Versus 2005, Indexed


= 27%

1.27

1.00

Best Employer in Canada

Great Place to Work

Encourage a Friend

2002

2005

leading to improved attraction and satisfaction of new-hire employees


Increase in Rsums Received 20032005, Indexed 1.25 1.00 Improvement in New-Hire Fit with Job Offer* 20022005, Indexed 1.32
= 32%

1.00

= 25%

2003

2005

2002

2005
Source: The Bank of Nova Scotia; CLC Solutions, The Globe and Mails Reports on Business Magazine ; Corporate Leadership Council research.

* Offer fit scores measure employee satisfaction with a range of employment attributes and weights them according to the importance of each attribute in high-value employee career decisions. Satisfaction levels with employment attributes that are very important to high-value employees are given the most weight.
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Key Findings
1. The most powerful drivers of attraction in India include future career opportunities, organisation growth rate, organisational stability, compensation, and development opportunities: These drivers consistently rank as the most important attributes in attracting candidates to an organisation, for all demographic segments. Compared to global candidates, Indian candidates place much more emphasis on organisation growth rate and less emphasis on compensation. 2. In contrast, employee commitment in India is driven by people aspects of an organisation: While some of the key attraction drivers (future career opportunity, development opportunity) are also strong drivers of commitment, others (compensation, organisation growth rate) are much less so. Indian employees commitment is strongly impacted by coworkers, managers, and senior leadership. Interestingly, other drivers such as jobinterest alignment, product/service quality, and organisation size, which are rated highly by global candidates, have a comparatively low impact in India. 3. Seven attributes of the global EVP are universally important at driving either attraction or commitment: While conventional wisdom holds that employees in different geographies, age bands, or gender groups require fundamentally different elements from their employment experience, there are seven attributes that are essential for every major talent segment. Compensation Future career opportunities Respect Manager Quality Organisational stability Development opportunities A collegial work environment

4. Taken together, these seven elements of the global core EVP provide 56% of the total possible attraction and commitment benefit for all major talent segments in India: Organisations should build their employment value propositions around at least some of these critical attributes.
Source: Corporate Leadership Council research.
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Attracting and Retaining Critical Talent Segments in India


Building a Competitive Employment Value Proposition (EVP)
I. Defining the Differentiated Employment Value Proposition
Key Questions Answered What EVP attributes are most important for driving attraction and commitment? Where are the biggest opportunities to differentiate the EVP from competitors? How can we ensure that the EVP is aligned with organisational strategy?

II. Managing EVP Variation Across Key Talent Segments


Key Questions Answered How different are the preferences of key talent segments? What EVPs will be most successful for key talent segments? How can we manage EVP consistency across key talent segments?

III. Ensuring EVP Credibility in the Labour Market


Key Questions Answered How can our organisation most effectively communicate the EVP? How can our organisation leverage the most trusted communication channels? How can our organisation embed the EVP into our day-to-day operations?

Profiled Case

Profiled Case

Profiled Cases

Employment Value Proposition Redesign

Segment-Specific EVP Communication

Life CycleBased EVP Delivery

Employee-Centric EVP Delivery

Employee Recruiters

Source: Corporate Leadership Council research.


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While segmentation strategies often appear feasible in theory, deciding which talent segments warrant tailored EVP strategies requires careful consideration. To understand how to segment the workforce, organisations should first determine which segments are readily identifiable, accessible, and substantial enough in size to warrant the additional investment of resources required for segmentation. Once the potential segments are identified, organisations must identify how each segment is unique in terms of preferences and information consumption and then determine the extent to which the organisation can and should deliver a segmented EVP that supports the segments needs.

Section II: Managing EVP Variation Across Key Talent Segments

Where to Segment
Organisations decisions to segment should be determined by answers to critical questions Step 1: Understanding Segments
Identifying Potential Segments*

Is it measurable? Is it accessible? Is it substantial?

Step 2: Addressing Segments

Do the groups preferences vary enough to warrant investment in a segmented EVP?

Do the groups ways of consuming information vary enough to warrant a different competitive approach?

Is the group important to organisational strategy and can the organisation support the needs of this group?

* Measurable is defined as whether or not a particular segment can be identified. Accessible is defined as whether or not a segment can be contacted with unique information. Substantial is defined as whether or not the segment is large enough to justify an investment.
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Source: Weitz, Barton and Robin Wensley, editors; The Handbook of Marketing, London; SAGE Publications, 2002, pp 86125; Corporate Leadership Council research.

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Globally, geography explains the majority of differences in employee EVP preferences, accounting for 72% of the total variation. Gender and ethnicity account for surprisingly little of the variation in the EVP preferences of candidates.

Section II: Managing EVP Variation Across Key Talent Segments (Continued)

Geography Is the Main Driver of Variation Globally


Most variation in EVP preferences is a function of geography
Percentage of Variance Explained By Segment

Geographic differences account for the majority of the variation in EVP preferences 13.0% 72.0%

6.7%

3.5%

2.7%

2.5%

Implications
with some additional differences across employee levels.
Organisations need to strongly consider how they can vary their EVP across geographies. Segmentation based on gender or ethnicity is unlikely to generate returns.

Total Variation Explained

Geography

Level

Age

Function

Gender

Ethnicity

Source: Corporate Leadership Council research.


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The table below highlights differences in EVP preferences for eight countries. Each column presents the top 10 attraction drivers for each country in descending order, allowing for quick comparison across countries. The lighter grey cells highlight the location of top three global attraction attributes within each geography, while the darker grey cells represent attributes that are ranked in the top 10 for one geography but fall outside the global top 10 drivers. Notable differences exist in EVP attribute preferences by geography. For instance, Indian candidates prioritise innovation more than any other country, while French candidates place more importance on camaraderie. India and Japan are the only countries where organisation growth rate is among the top 10 attraction drivers. Accordingly, organisations operating across multiple global locations will need to consider how to most appropriately position and segment their EVPs to account for variations in EVP preferences across countries.

Section II: Managing EVP Variation Across Key Talent Segments (Continued)

Significant EVP Variation Across Geographies


Notable differences exist in the degree of importance candidates in different geographies place on EVP attributes; Indian candidates prioritise innovation more than candidates in other geographies
Rank Order of EVP Attraction Drivers By Geography

Global
Compensation Future Career Opportunities WorkLife Balance Organisational Stability Development Opportunities Respect JobInterests Alignment Location Recognition Ethics

Australia
WorkLife Balance Future Career Opportunities Compensation Organisational Stability JobInterests Alignment Respect Development Opportunities Location Ethics Recognition

China
Compensation Development Opportunities Future Career Opportunities Meritocracy Health Benefits JobInterests Alignment Respect Organisational Stability Industry Retirement Benefits

France
Compensation WorkLife Balance Future Career Opportunities Respect Organisational Stability Recognition Product Quality Camaraderie Development Opportunities Coworker Quality

Germany
Compensation Collegial Work Environment Location Organisational Stability Development Opportunities Future Career Opportunities WorkLife Balance JobInterests Alignment Respect Recognition

India
Future Career Opportunity Organization Growth Rate Organizational Stability Compensation Development Opportunity WorkLife Balance Innovation Technology Level Respect Recognition

Japan
Compensation WorkLife Balance Organisational Stability Vacation Location Technology Level JobInterests Alignment Organisation Growth Rate Development Opportunities Product Quality

United Kingdom
WorkLife Balance Future Career Opportunities Compensation Location Organisational Stability Development Opportunities JobInterests Alignment Respect Recognition Empowerment

United States
Compensation Health Benefits Organisational Stability WorkLife Balance Future Career Opportunities Respect JobInterests Alignment Location Retirement Benefits Ethics

Location of the Top Three Global Attraction Practices Within Each Geography Attraction Practices That Are Ranked in the Top 10 for One Geography, but Fall Outside the Global Top 10
Source: China HR Executive Board research; Corporate Leadership Roundtable research.
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While function is not a very significant driver of the variation in global EVP preferences, the Council has identified some notable differences across functions in India.

The table below shows function-specific differences in EVP preferences for eight functions in India. Within each column, the top 10 drivers of labour market attraction are presented in descending order, allowing quick comparison of the top 10 attraction drivers for each function in India.

The lighter grey cells highlight the location of the top three attraction attributes for India within each function, while the darker grey cells represent attributes that are ranked in the top ten for one function but fall outside the overall top 10 drivers.

While some attributes, such as future career opportunities, organisation growth rate and organisational stability are in the top ten for nearly all functions in India, there are notable differences in attribute preferences across functions. For instance, for engineering and IT employees, the organisations technology level holds much more importance, while for Sales, Finance, and the corporate function, compensation is rated in the top 10 attraction drivers.

Section II: Managing EVP Variation Across Key Talent Segments (Continued)

Additional EVP Variation Across Functions in India


Organisations may need to adjust the EVP to attract specific segments in India; technical employees place a premium on an employers technology level
Rank Order of EVP Attraction Drivers By Function in India India (Overall)
Future Career Opportunity Organisation Growth Rate Organisational Stability Compensation Development Opportunity WorkLife Balance Innovation Technology Level Respect Recognition

Information Technology/ Systems


Future Career Opportunity Compensation Technology Level WorkLife Balance Organisation Growth Rate Development Opportunity Innovation Organisational Stability Recognition Location

Engineering and Design


Future Career Opportunity Technology Level Innovation Organisational Stability Development Opportunity Compensation WorkLife Balance Respect Location Recognition

Sales
Future Career Opportunity Organisation Growth Rate Compensation Organisational Stability Development Opportunity Market Position Recognition Respect Ethics and Integrity WorkLife Balance

Customer Service/Call Centre


Future Career Opportunity Organisation Growth Rate Organisational Stability Respect Development Opportunity Compensation Recognition WorkLife Balance Location Market Position

Corporate (Strategy, Public Relations, Legal, Real Estate)


Future Career Opportunity Compensation Organisational Stability Respect Organisation Growth Rate Development Opportunity WorkLife Balance Ethics and Integrity Innovation Recognition

Manufacturing
Organisation Growth Rate Future Career Opportunity Respect Organisational Stability Development Opportunity Product/Service Quality Technology Level Compensation Innovation Recognition

Marketing
Future Career Opportunity Organisation Growth Rate Organisational Stability Development Opportunity Compensation Market Position WorkLife Balance Respect Innovation Location

Finance/ Accounting
Future Career Opportunity Organisation Growth Rate Compensation Location Organisational Stability Development Opportunity WorkLife Balance Respect Recognition Ethics and Integrity

Location of the Top Three Overall Attraction Practices Within Each Function Attraction Practices That Are Ranked in the Top 10 for One Function, but Fall Outside the Top 10 Overall
Note: The functions are arranged in descending order of amount of variation shown from the Indian EVP across all segments.
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Source: China HR Executive Board research; Corporate Leadership Roundtable research.

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Segment-Specific EVP Communication


Sapient Corporation
Segment-specific communication of EVP attributes to align with specific needs of candidates by industry and career stage.

Company Profiled

Industry: Information Technology Revenue: $566 Million Employees: 4,952 Headquarters: Cambridge, Mass., U.S. Organisational Challenge As Sapient began refocusing its candidate attraction efforts on experienced hires, it noticed increasing challenges with candidate conversion. Sapient knew it had to find a way to stand out from other employers to win over this and other critical segments. Although confident that its EVP was generally aligned with labour market preferences, Sapient realised that candidates cannot absorb large amounts of generic information and tend to listen for the things most relevant to them. To make its EVP resonate, therefore, Sapient decided to target communications by segment, highlighting those few critical attributes most prized by each segment.

Action Having identified that candidates vary in their EVP preferences principally by industry and career stage, Sapient tailored its EVP communications to dial up the attributes that would be most attractive to candidates depending on their segment. To drive customisation of communication, Sapient created a matrix to depict key EVP attributes identified as having particular resonance for each segment. It also provides recruiters and hiring managers with segment-customised themes from the EVP to enable them to align recruiting and conversion conversations with candidate preferences by segment. Key Teachings Identify critical talent segments the company wants to attract and focus EVP communication customisation efforts accordingly Determine the few critical EVP attributes most critical to key segments Orient all candidate conversations early attraction and later conversion discussionsaround segment-specific messages

Likely Return on Investment Increased conversion rates Improved new hire satisfaction with EVP promise and delivery Improved market perception

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Practice Driver

Not Standing Out from the Crowd


Severe competition for talent
Perceived Market Opportunities Indian Versus Global Employees A higher percentage of candidates in India perceive numerous job opportunities available to them. 73.0%
Percentage of Respondents That Perceive Numerous Job Opportunities Available to Them
India

and lack of personal relevance to candidates of the EVP communications approach


Candidate Perception of Core EVP Varies by Segment
Its great that there is no glass ceiling, but right now I want to have lots of client interaction.

Sapients Core EVP Variety of Work Mix of Development Versus Support No Glass Ceiling

I dont care about variety of work. I want to do lots of what Im good at.

60.6%

Candidate A, Experienced Hire, Industry X

Candidate B, Fresh MBA, Tier One University

Global

led to undesirable talent attraction results

Need for Differentiated EVP Messaging


Given the intensifying war for talent, we identified the need to get more effective in our messaging with candidates. Based on candidate feedback gathered by recruiters, we realized that the existing general messaging used for all candidate segments led to low brand differentiation of Sapients EVP vis--vis competitors. This dampened our efforts to attract and retain the best talent. Prashant Bhatnagar Director, Hiring Sapient Corporation
Source: Sapient Corporation; Corporate Leadership Council research.
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To understand what specific candidate groups care about most, Sapient utilised recruiter focus groups sessions and new hire interviews to gather inputs. Focusing on a small subset of EVP attributes that candidates from this segment care about most avoids information overload, and creates a more compelling recruiting experience for the candidate. Based on this segmentation, Sapient was able to identify two to three key EVP attributes that mattered most to the segment and created a matrix depicting these to help recruiters and hiring managers have more focused attraction and conversion conversations.

Step #1: Understand EVP Preferences for Key Segments

Customising Critical Messages for Key Segments


Sapient utilises recruiter and new hire input
Recruiter Focus Groups
Focus Group Questions What questions are candidates from this segment asking you about Sapient in your conversations? Where do they press for more information? When you talk about the EVP with candidates in this segment, which talking points make them sit up and get excited? When you ask candidates from x industry about why they are thinking of leaving their jobs, what do they say?

to sharpen segment-specific EVP preferences within its core EVP attributes


Decision Matrix to Identify Focus for EVP Communication

Winning Themes Focus Industry A Culture Sense of Urgency Ownership and Accountability Career Experienced Hires Opportunities Mix of Development Versus Support Industry B Industry C

_ _ ___________ _ _ ___________ _ _ ___________ _ _ ___________ _ _ ___________

_ _ ___________ _ _ ___________ _ _ ___________ _ _ ___________ _ _ ___________ Work Opportunities to Travel External Client Interface Culture Variety of Work No Glass Ceilings

New Hire Interviews

New Hire Interview Questions Why did you choose to join Sapient rather than other companies you may have had interest from? What made you first take notice of Sapient? What would you have liked more information on in your interviews?

_ _ ___________ _ _ ___________ New Graduates _ _ ___________ _ _ ___________ _ _ ___________

_ _ ___________ _ _ ___________ _ _ ___________ _ _ ___________ _ _ ___________

Source: Sapient Corporation; Corporate Leadership Council research.


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Using the segmentation matrix, Sapient creates scripting guides for recruiters and hiring managers to ensure they focus on the right EVP preferences and messages. Focusing on a small subset of attributes that candidates from this segment care about most rather than the full range of EVP attributes Sapient effectively avoids information overload and creates a more compelling recruiting experience for the candidate.

Step # 2 : Tailor Recruiting Conversations to Focus on Segment-Specific Themes

Keeping Recruiters and Hiring Managers On Message


Sapient moved from providing a plethora of information on its EVP
Information Overload through Multiple Sources Company Web Site Recruiter
We offer great worklife balance.

to providing recruiters and hiring managers with a small number of themes to consistently focus on
Segment-Specific Tailored Recruiting Conversations
Winning Themes Focus Industry A Culture Sense of Urgency Ownership and Accountability Career Opportunities Mix of Development Versus Support
_ _ _ _ _ _

Industry B
_______________ _______________ _______________ _______________ _______________ _______________ _ _ _ _ _ _

Industry C
_______________ _______________ _______________ _______________ _______________ _______________

We are an employer of choice.

Experienced Hires

Recruiting

_ _ _

_______________ _______________ _______________ _______________ _______________ _______________

_ _ _ _ _ _

_______________ _______________ _______________ _______________ _______________ _______________

What is the company about?

New Graduates

_ _ _

Work Opportunities to Travel External Client Interface Culture Variety of Work No Glass Ceilings

Job Posting

Hiring Manager
We provide a transparent culture.

We offer our people full ownership for their work. We provide career growth support through a mix of development-based training and mentoring opportunities.

We offer people at your level extensive travel opportunities. Our people interact with external clients on a day-to-day basis.

We provide career development opportunities

Recruiter Conversation for Candidate A, Experienced HireIndustry A


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Recruiter Conversation for Candidate B, New GraduateIndustry C


Source: Sapient Corporation; Corporate Leadership Council research.

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Since launching its segment-specific EVP communications approach in April 2008, Sapient has experienced improved conversion rates. Sapient will continue to measure the impact of this strategy via its new hire satisfaction surveys and external market perception surveys (e.g., ranking in employer of choice surveys).

Results

Increased Employee Value Proposition Effectiveness


Sapient is already experiencing improved conversion rates
Offer Acceptance Rate

= 5%

Q2 2008

Year to Date

and anticipates increased new hire satisfaction and favourable candidate perception in the labour market

Anticipating Improved New Hire Satisfaction Scores and Market Perception


We anticipate an improved new hire satisfaction rate that is a function of how effectively candidates were communicated with regarding the EVP during the recruitment process. In addition, we are already experiencing improved recruiter productivity with our ability to attract talent more effectively and quickly. Lastly, we anticipate our EVP effectiveness to reflect on external market perception surveys. Prashant Bhatnagar Director, Hiring Sapient Corporation

Source: Sapient Corporation; Corporate Leadership Council research.


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Key Findings

1. Customising the EVP can improve attraction and commitment outcomes for certain talent segments but is probably not worthwhile for others: The consistency of the core EVP means that segmentation is valuable only if the talent segment is important to the organisations strategy and if the customised EVP can improve significantly on the performance of the core EVP. 2. Globally, geographic differences in EVP preferences matter more than differences by function, level, age, and gender: The most important variation in EVP preferences occur across geographies. Organisations with global operations will need to consider varying their EVP (in either design or communication) to meet the needs of employees in their different locations. 3. Additional variation within India is accounted for by functional differences: Within India, functional differences drive variation in EVP preferences. For instance, the competitive EVP for the engineering and design function should include a focus on innovation and the organisations technology level while the competitive EVP for sales employees should include a focus on organisations market position and recognition.

Source: Corporate Leadership Council research.

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Attracting and Retaining Critical Talent Segments in India


Building a Competitive Employment Value Proposition (EVP)
I. Defining the Differentiated Employment Value Proposition
Key Questions Answered What EVP attributes are most important for driving attraction and commitment? Where are the biggest opportunities to differentiate the EVP from competitors? How can we ensure that the EVP is aligned with organisational strategy?

II. Managing EVP Variation Across Key Talent Segments


Key Questions Answered How different are the preferences of key talent segments? What EVPs will be most successful for key talent segments? How can we manage EVP consistency across key talent segments?

III. Ensuring EVP Credibility in the Labour Market


Key Questions Answered How can our organisation most effectively communicate the EVP? How can our organisation leverage the most trusted communication channels? How can our organisation embed the EVP into our day-to-day operations?

Profiled Case

Profiled Case

Profiled Cases

Employment Value Proposition Redesign

Segment-Specific EVP Communication

Life CycleBased EVP Delivery

Employee-Centric EVP Delivery

Employee Recruiters

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Source: Corporate Leadership Council research.

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The most powerful channel, current employees, while used frequently, must be leveraged to communicate attributes of the EVP more effectively. Just 16% of employees are proactive advocates for their organisation, indicating a significant underutilisation of the most credible source of EVP information for candidates.

Section III: Ensuring EVP Credibility in the Labour Market

Use Personal Connections and Company Web Site to Reach Candidates


Current employees most trusted, but few employees are advocates for the organisation
Channel Credibility Versus Channel Usage1 in India
80

Indian Employees
Former Employees of the Organisation Alumni Network Help Wanted Sign Use of Employers Products or Services Online Discussion Forums Clients/Customers Coworkers Recruiting Event/ Career Fair Online Social Networking Tools Organisation Web Site/Intranet Friends/Family Current employees are the most important channel; yet most current employees do not advocate for the organisation. Percentage of Indian Employees Who Are Proactive Advocates2
Proactive

Current Employees of Potential Employers

College Career Centre

Channel 50 Credibility

Information Sessions Sponsored by the Organisation

Organisations Job Ads Annual Report on Television or Radio Analyst/ Professional Search Firm/ Investor Reports or Trade Recruitment Associations Agency

Best Employer Award List Job Ads in Magazines or Newspapers

New Stories on Television or Radio

Job Ads Through a Niche Third-Party Job Board

Articles in Magazines or Newspaper

16% 84%
Disinterested

Job Ads Through ThirdParty Online Job Board

Brochures and Posters 20

30

60
Source: China HR Executive Board research; Corporate Leadership Council research.

Percentage of Candidates Using Channel


1

Respondents were asked to indicate which information channels they used when gathering information about potential employers. For channels that were used, respondents were then asked to rate the extent to which they believed the information they received from each channel on a 7-point scale (1 = Strongly Doubted, 7 = Strongly Believed). Advocates are employees who are personally committed to promoting their organisation and generating support for it within both the labour market and among current employees. Advocates include respondents that scored 90% and above on a factored index of champion.

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Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Ensuring Credibility: Two Mandates

I. Increasing Believability of Channels

II. Making Advocates of Employees

Source: http://upload.wikimedia.org/wikipedia/commons/3/37/Edmund_Dulac_-_The_Emperors_New_Clothes_-_ procession.jpg; http://www.morguefile.com/images/storage/g/gracey/lowrez/JGS_Hurrah.jpg; Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

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Organisations with highly credible EVPs observe three key principles: 1. Messages must reflect the reality of the organisation. Organisations should not be critical of themselves, but realistic about organisational characteristics offered. 2. Messages must enable applicants to self-assess whether the organisation is the right place for them. Communicating critical information that enables employees to assess whether or not they will pursue employment at the organisation has the added benefit of alleviating some of the selection burden from the organisation, as people who do not feel they would fit well with the organisation will voluntarily opt out. Organisations should facilitate this process by making it clear who is likely to be a good fit. 3. Ensure that the information candidates receive from different sources is consistent.

Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Three Factors Increase Believability of Traditional Channels


1
30%

Reflect Reality Accuracy of Recruiting Experience 27%

Enable Self-Selection Communication Emphasis in Recruiting Experience


20%

16%

Maximum Impact on Commitment

0%

(14%)
(30%) The Recruiting Process Covered up the Negative Aspects of the Organisation The Recruiting Process Accurately Reflected the Organisation

Maximum Impact on 10% Commitment


0%

2%
Points Out Relative Strengths of Organisation Allows Candidates to Assess Fit with Organisation

Ensure Consistency Channel Consistency Impact on Commitment


30% 30

26%

Maximum 15% Impact on 15 Commitment

<1%
0% 0 Information Was Information Was Highly Consistent Across Sources Inconsistent Across Sources
Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

Note: Maximum impact on commitment is calculated by comparing two estimates: the predicted impact on commitment for an employee who rates high on the item and the predicted impact for an employee who rates low on the item averaged across emotional and rational measures of commitment. CLC1ABQP77 2008 Corporate Executive Board. All Rights Reserved. 71

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The reason most employees in the labour market do not view the EVP as credible directly results from organisations failure to manage the messages that they communicate. As shown below, only a third of respondents believed that the recruiting process accurately reflected the organisation. Fewer than a third agreed that the information they received during the recruiting process enabled them to assess their fit with the organisation, a state likely exacerbated by the fact that only 36% of respondents agreed that the information they received was consistent.

Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Presenting an Unbelievable EVP?


Most organisations do not effectively support the credibility of the EVP
The Recruiting Process Accurately Reflected the Organisation The Information I Received Let Me Assess My Fit with the Organisation

Agree Agree

30% 70%
Neutral or Disagree

36% 64%
Neutral or Disagree

The Information I Received Was Consistent

Agree

36% 64%
Neutral or Disagree

Note: Agree represents the percentage of respondents who rated the item agree or strongly agree (6 or 7 on a 7-point scale). Neutral or disagree reflects the percentage of respondents who rated the item 5 or lower on the same scale.
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Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

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Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Ensuring Credibility: Two Mandates

I. Increasing Believability of Channels

II. Making Advocates of Employees

Source: http://upload.wikimedia.org/wikipedia/commons/3/37/Edmund_Dulac_-_The_Emperors_New_Clothes_-_ procession.jpg; http://www.morguefile.com/images/storage/g/gracey/lowrez/JGS_Hurrah.jpg; Corporate Leadership Council, Employment Value Proposition Survey ; Corporate Leadership Council research.
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The graph below shows the percentage of advocates within each organisations workforce. As seen by the wide variation in the number of advocates within workforces, many organisations have a significant opportunity to increase the number of employee promoters they employ.

Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Few Organisations Have Advocates


Few organisations have a significant population of employees who actively promote the EVP, and the vast majority have a large percentage who do little to promote the organisation
Percentage of Advocates By Organisation (Global)
70%

The number of advocates varies substantially, with some organisations having less than 10% and others more than 50%.

Employee Advocates
Advocates are employees who are personally committed to promoting their organisation and generating support for it within both the labour market and among current employees.

Percentage of Advocates 35%

0%

Organisations

* Advocates include respondents who scored 90% or higher on a factored index of champion or proactive organisational support.

Source: Corporate Leadership Council research.

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Organisations will see sizeable returns from increasing the percentage of advocates in their employee populations. The graph below highlights the direct positive effect of advocates on new hire commitment: every 10% increase in the number of advocates leads to a 3% improvement in new hire commitment, which drives employee effort and reduces turnover. Given their high credibility and usage within the labour market (and by your own employees), the key method to manage EVP messages is to increase the number of employees who act as advocates of the organisation.

Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Capitalise on the Power of Employee Advocates


Employee advocates help organisations achieve high commitment in new hires
Percentage of Tenured Advocates Versus Commitment of New Hires By Organisation1
70

For every 10% increase in the number of advocates an organisation has, average commitment of new hires increases by 3%.

Commitment Score of New Hires (Less Than 12 Months of Tenure)

60

50 0% 0% 30% 30% 60% 60%

Percentage of Employees Who Are Advocates2 (Greater Than Twelve Months of Tenure)

1 2

Each dot represents a unique organisation. Advocates include respondents who scored 90% or higher on a factored index of champion.

Source: Corporate Leadership Council research.

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EVP advocacy behaviour is significantly lower in India compared to the global benchmark. Building advocates requires that organisations meet three conditions: trust, flexibility and innovation, and a strong sense of organisational values. Trust forms the foundation; employees must feel that they can trust the organisation before they will actively promote it to others. Organisations that enable these three conditions will have a higher number of employees who actively promote the organisation to others inside and outside the organisation.

Section III: Ensuring EVP Credibility in the Labour Market (Continued)

Significant Room to Improve EVP Advocacy in India


Focus on improving EVP advocacy behaviour among existing employees
Percentage of Employees Displaying EVP Advocacy Behaviour India Versus Other Geographies Fostering an atmosphere of trust is the most effective thing organisations can do to build employee advocates. 2 Indian Employees EVP advocacy is significantly lower in India. Encourage Flexibility and Innovation Average Impact = 18% 1 Foster an Atmosphere of Trust Average Impact = 47%

through increased emphasis on trust, flexibility, and values

16%

28%

Communicate the Organisations Values Average Impact = 17%

Global Employees

* Advocates include respondents who scored 90% or higher on a factored index of champion.

Source: Corporate Leadership Council, Employment Value Proposition Survey; Corporate Leadership Council research.

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Life CycleBased EVP Delivery


Royal Philips Electronics N.V.
A strategy for managing candidate experiences consistently across all attraction, recruitment, and early career experiences to ensure that candidate perceptions of the organisation align with core EVP messages.

Company Profiled

Action Philips identifies the points in the candidate attraction and recruiting life cycle that most critically impact candidate perceptions of the organisation and aligns candidates experiences at each touchpoint with the employment value proposition. Key Teachings Identify major touchpoints across the attraction recruiting life cycle that impact candidates perceptions of the EVP. Align candidates experience of the EVP across all major touchpoints.

Likely Return on Investment Improvement in labour market ratings Increase in employee referral rates Improved offer-to-hire ratios Improved new hire retention

Industry: Healthcare Lifestyle and Technology Solutions Revenue: $39.50 Billion Employees: 391,948 Headquarters: Amsterdam, The Netherlands Organisational Challenge Inconsistent employment brand positioning and recruiting processes across Philipss multiple business units leads to negative candidate experiences of the EVP and failure to meet recruiting goals.

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Practice Driver

Misaligned Experiences
In 2002, misaligned corporate brand positioning and recruiting processes across Philipss multiple business units result in a highly inconsistent candidate EVPexperience
Uncoordinated Candidate Experience of the Employment Value Proposition
Back
Address:

Forward

Stop

Refresh

Back
Address:

Forward

Stop

Refresh

Multiple career Web sites with uncoordinated look and feel and uncoordinated messaging about the EVP.

Theyre big and I think they make TVs, but I have no idea what it means to work there!

Recruiters and hiring managers provide contradictory perspectives about Philips EVP given their specific business unit or function.

Multiple Philips recruitment advertisements appear in same newspaper with contradictory messages about the EVP.

Confused Candidate

Business units, attraction, and recruitment processes are siloed and sometimes compete for the same talent.

which results in failure to meet talent attraction goals

and new hires indicating that their introduction to Philips did not match their expectations
New-Hires Responses to Question: Did Your Introduction to Philips Match Your Expectations? 2002

Failure to Meet Hiring Goals


We identified that we had been inconsistent in our positioning and messaging and therefore in our communications with potential employees. We werent addressing them as one Philipss and we werent reaching the targets wed set ourselves to attract and retain the best talent. Jo Pieters VP, Global Recruitment Philips Electronics

Yes

40% 60%
No

Source: Royal Philips Electronics N.V.; Corporate Leadership Council research.


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Philipss Corporate HR team consolidates inputs from recruiters, candidate surveys, and their own personal experience to brainstorm a list of all momentstouchpointsduring the attraction, recruitment, and onboarding process where candidates experiences of the organisation shape their perceptions of Philips as an employer. While all touchpoints are important and can form positive or negative perceptions in the minds of candidates, Philips identifies the most critical candidate touchpoints by applying three urgency screens: 1) current misalignment of touchpoint with the EVP, 2) number of candidates affected by the touchpoint, and 3) cost to impact candidate experience at touchpoint. Philips identifies 10 touchpoints across the three stages of the candidate life cycle and focuses resources on delivering the desired EVP experience at these high-impact moments. The rejection letter sent to candidates is an example of a high-impact touchpoint because Philips rejects 39,800 applicants monthly, so the perception of these declined candidates weighs heavily in the labour market.

Step #1: Identify Critical Candidate Experiences

Prioritising Perception-Building Touchpoints


Philips identifies all touchpoints that impact candidates experience across the life cycle
1 Identification of All Candidate Touchpoints

and applies three criteria to screen for critical experiences


2 Touchpoint Urgency Screen 3

resulting in 10 touchpoints that build brand perceptions across three stages of the candidate life cycle
Philips Critical Candidate Touchpoint Wheel

Development Experiences

Experience with Product/ Service Company Web Site

Labour Market Research Budgetary Analysis Candidate Satisfaction Survey Results

Management Behaviour

Corporate HR Team

Post-Application Experience
Interactions with Colleagues

EVP Touch Lives Everyday

Pre-Application Experience
Career Web Site

All Candidate EVP Touchpoints Pre-Application Experiences


Company brand Experience with products and services Corporate Web site Career Web site Campus recruitment Print advertising Online advertising Internships News stories about Philips Best company to work for lists Annual report Analyst/Investor reports Interactions with current employees Interactions with former employees

Introduction

Recruitment Experience
Invitation letter Prescreening Interview Assessment Contract handling Acceptance/rejection letter Interactions with current employees Interactions with future team mates

Early Employment
Information on department Information on role Clarification of performance standards Introduction to colleagues Interactions with colleagues HR administration Internal career Web site Management behaviour Performance review Career development Exit interview

Application Experience
Rejection/ Acceptance Letter Hiring Manager Behaviours

Interview Process

Extent of current misalignment  with desired value proposition Number of candidates impacted  by touchpoint Cost to impact candidate  experience at touchpoint

Rejection Letter Critical Touchpoint Rationale Philips rejects over 39,800 candidates each month, so candidate experience here has significant implications for the employment and company brand.

Source: Royal Philips Electronics N.V.; Corporate Leadership Council research.


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Having identified that the hiring managers behaviours during the interview process represent a critical candidate touchpoint with the organisation, Philips provides managers with interviewing guidelines that outline behaviours aligned with the desired EVP experience. Philips provides managers with tangible examples of how their behaviours can positively impact candidate perceptions of the organisation and shares insights about the broader business implications of their behaviours on the Philips brand. Philips supplements the manager guidelines with manager training and provides managers with candidates feedback about their interviewing style.

Step #2: Align Critical Candidate Experiences with the EVP


Development Experiences Experience with Product/ Service Company Web Site

Aligning the Recruitment Experience


Corporate HR guides hiring manager behaviours during the interview process to ensure that candidates interview experiences align with the EVP
EVP-Aligned Manager Recruiting Guidelines Hiring Manager Candidate
Career Web Site

Management Behaviour

Interactions with Colleagues

Post-Application Experience

Pre-Application Experience

EVP Touch Lives Everyday


Application Experience

Introduction

Interview Process

Rejection/ Acceptance Letter

Hiring Manager Behaviours

Creating a Great Candidate Experience To ensure our ongoing success, we need to make sure were encouraging the best people to join us. And to do that, we need to build our reputation as a great place to work. The key to this is the experience that we create before, during, and after the interview for the people who apply for a job with us. It is important to always keep in mind that we will have more candidates than there are jobs available. We must ensure therefore, that the experience they have with us as a candidate recruits and retains them as a Philips customer if not as an employee. Getting the candidate experience right means shorter timescales in effectively filling each vacancy and, in the long term, a higher quality talent pool as a result of increased brand image. The success of this process is in your hands. So this guide is here to provide you with tips and techniques from other managers and recruiters that will help you to bring, our promise to the labour market, Touch lives every day to life. We want to deliver a more consistent and engaging experience to the individuals who express an interest in helping us achieve our goals.

Create a Positive Candidate Experience Regardless of Hire or Reject Decision Philips seeks to create a recruitment experience that conveys positive aspects of Philips, even for those candidates who are rejected. Provide Managers with Tangible Guidelines for EVP Aligned Behaviours
Philipss Five Ways to Leave an Unforgettable Impression 1. Create an engaging job profile that helps the candidate to see how they can contribute at Philips and what working at Philips will offer them. 2. Treat candidates as you would a guest and remember that all of our candidates either are or could be Philips customers. 3. Demonstrate respect for their time by keeping their appointment times and greeting them promptly. 4. Explain to candidates how they can touch lives every day. Excite them about working at Philips. 5. Ensure candidates leave the interviews clear on the next steps and when they will hear the decision.

Philipss Tactics for Aligning Manager Behaviours with EVP Train line managers in high-impact EVP interview behaviours. Issue line manager guidelines for EVPaligned interview behaviours. Provide managers with candid candidate feedback about their interview experience.

Source: Royal Philips Electronics N.V.; Corporate Leadership Council research.


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Delivery of the desired EVP experience for early career employees is critical to ensure new hire satisfaction and engagement. Philips focuses on four key touchpoints during the first three months on the job: initial introduction to the organisation, networking with colleagues, management behaviours, and career management. While Philips focuses on these early career experiences, the organisation also looks to align other organisational processes and practices with the EVP and uses feedback from employee engagement surveys to determine which organisational processes (e.g., performance management, long-term career management) require attention.

Step #3: Align Onboarding and Early Employment Experiences with Value Proposition
Development Experiences Experience with Product/ Service Company Web Site

Delivering on Promises Across Onboarding


Philipss comprehensive induction programme ensures that early employment experiences deliver consistently on EVP promises
Alignment of Touchpoints Across Induction
Career Web Site

Management Behaviour

Interactions with Colleagues

Post-Application Experience

Pre-Application Experience

EVP Touch Lives Everyday


Application Experience

Introduction

Interview Process

Rejection/ Acceptance Letter

Hiring Manager Behaviours

Point of Hire

2 EVPAligned Pre-Start-Date Introduction Pre-start-date CD-ROM Personalised induction Web site EVP Insight Once a candidate accepts an offer, Philips provides clear insight into how the organisation will deliver on EVP promises across onboarding.

Building Early Career Networks Accountable buddies Online Yellow Pages EVP Insight Strong networks are a critical part of Philipss EVP; the onboarding process facilitates cross-functional networking and holds staff accountable for new hire buddy-relationships.

4 Assessing Manager Delivery of Onboarding Tasks


Back
Address:

Aligning Early Career Management


Forward Stop Refresh

! !

Back
Address:

Forward

Stop

Refresh

Clearly defined accountabilities for new hires managers EVP Insight Philips tracks delivery of six critical manager actions and behaviours across the onboarding period to ensure the delivery of the EVP for early career employees.
Engaged and Retained at Three Months Tenure

Standardised learning curricula for all job families Revised internal career Web site

EVP Insight Managers encourage new hires to access comprehensive learning resources from early in their careers to provide them with insight into how Philips can deliver on the EVP as they progress their careers.

Engagement Survey

Ongoing Improvement of EVP Alignment Annual engagement survey to test alignment Survey results discussed at business, department, and team level Corrective actions implemented

Action Plan

Source: Royal Philips Electronics N.V.; Corporate Leadership Council research.


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Since implementing the delivery of EVPaligned behaviours across the candidate life cycle, Philips reports considerable success in meeting talent attraction goals and satisfying new hires that their early employment experiences match with expectations developed across the attraction and recruiting process. In addition, Philipss rankings in labour market surveys have become more favourable, especially within target geographic and functional markets. Philips believes that a key indicator of the success of focusing on delivering the desired EVP experience is the increase in the number of new hires originating from employee referrals as greater numbers of existing staff advocate the organisation as a great place to work.

Results

Increasing Employment Value Proposition Effectiveness


Following introduction of EVPaligned candidate management, Philips has observed improvements in its ability to attract candidates and new hire satisfaction with their introduction to Philips is high
Average New Hire Satisfaction with Introduction to Philips
Dissatisfied

Attracting the Talent We Need


Across our product divisions, functions, and regions, we see businesses attracting talent more effectively and staffing roles more quickly. Jo Pieters VP, Global Recruitment Philips Electronics
Very Satisfied

3% 38%
Satisfied

59%

Sample new hire comment: I am honored to be welcomed this warmly by Philips and I really look forward to being part of the team.

the success of the consistently applied employment value proposition is further reflected by increases in the organisations labour market rankings and in employee referrals
Improvement in Philipss European Labour Market Rankings 20032006 Europe Science and Business and Engineering Marketing 12 51 16 54 17 62 21 65 China Science and Business and Engineering Marketing 4 5 4 5 8 9 14 20 Increase in Employee Referral Rates 20042006
26% Referrals as a Percentage of Total Hires 19%

2006 2005 2004 2003

2004

2006

Note: New hires rated the induction program on a 10 point scale. Dissatisfied = A score of 13 Satisfied = A score of 47 Very Satisfied = A score of 810
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Source: Royal Philips Electronics N.V.; Corporate Leadership Council research.

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Employee-Centric EVP Delivery


Wipro Limited
A strategy for aligning values with Employment Value Proposition to increase employee retention and advocacy.

Company Profiled

Action To foster employee understanding of the values from day one, Wipro ensures that values are embedded into the EVP and defines behavioural expectations that support the EVP. To drive employee ownership and advocacy of the values, Wipro establishes interactive occasions for employees to identify and respond to misalignments between the EVP and employee experiences. To drive trust, Wipro ensures employee feedback is handled with sensitivity. Key Teachings

Likely Return on Investment Increased employee engagement Increased employee advocacy

Industry: Information Technology Revenue: $5 Billion Employees: 75,050 Headquarters: Bangalore, India Organisational Challenge Values at Wipro have been around for more than 30 years. Wipro periodically checks on its value realignment to see how relevant it is to todays time and business needs. A further need was emphasized through Wipros employee survey results which revealed a lack of clarity among employees on how they were expected to embody these values in various everyday situations.

Identify employee behaviours critical


to living the values. Ensure employee advocacy from day one through an onboarding programme that empowers employees to live the values. Engage employees in identifying and correcting EVP misalignments.

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Practice Summary

The Employee at the Centre of EVP Delivery


Wipro places the individual employee at the centre of delivering the EVP by defining behavioural expectations and providing every employee with an opportunity to reinforce the EVP and respond to misalignments
Wipro Employee-Centric EVP Delivery 1
Values

EVP

Employee Handbook

Behaviours

Values-Integrated EVP with Behavioural Guidelines Wipro closely integrates its EVP with values and defines key behaviours critical to delivering on its value proposition. These are reinforced from day one to new hires.

Employee Self-Regulation of EVP Wipro actively encourages employees to promote the value proposition and model it to their peers by providing frequent recognition and feedback relating to desired behaviours.

Ombuds Programme

Safe Channels to Report Values-Related Non-Adherence Wipro encourages employee feedback on the extent to which employees are living the values through multiple channels, including surveys, help desks, and its Ombuds programme. Through its Ombuds programme, Wipro enables all employees to report any misalignment between actions and company values.

Source: Wipro Limited; Corporate Leadership Council research.


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m Wipro closely integrates its values with the Employment Value Proposition to define a set of guiding principles. These guiding principles provide a foundation for how Wipro wants to act as a company. m Wipro cascades these guiding principles into behavioural expectations for employees to provide concrete examples of desired behaviours and help reduce instances of misinterpretation.

Step #1: Translate Organisational Values into EVP and High-Impact Behaviours

From Values to EVP to Behaviour


Wipro aligns its corporate values with the EVP to define guiding principles that provide a foundation for desired employee behaviours
Values-Driven EVP and Behaviours Articulation 4 1 Wipros Values The following values help Wipro measure the appropriateness of its decisions and represent what Wipro is and wants to be: 1. Intensity to Win 2. Act with Sensitivity 3. Unyielding Integrity Honesty and Fairness in Action Deliver on Commitments Thoughtful and Responsible Respect for Individual 3 Team, Innovate, Excel Wipro Guiding Principles Wipros guiding principles provide a foundation on how it wants to act as a company. The following six principles guide the companys and employees day-to-day behaviour: Make Customers Successful Team, Innovate, Excel Respect for Individual Thoughtful and Responsible Deliver on Commitments Honesty and Fairness in Action Make Customers Successful These behaviours act as guiding principles that suggest why and how to do rather than what to do. The behaviours provide direction to create value in our day-to-day work. The following behaviours are focused on making customers successful: Work together to create synergy Build intensity to stay focused Exceed customers expectation Enjoy taking on challenges Spend time innovating newer products/services for the customers Desire to stretch and aim for the maximum

Employment Value Proposition We make working at Wipro an enjoyable experience by providing a right balance between work and fun. Wipros EVP is a reflection of Wipros values: Offer an environment of honesty and fairness in action Offer challenging and thought-provoking work Provide a clear thrust on performance enhancement Provide a culture of equality and trust Provide meaningful opportunities to develop employees careers Reward exemplary performance Work in teams and innovate

Source: Wipro Limited; Corporate Leadership Council research.


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m To build employee advocates, Wipro fosters an atmosphere of empowerment and accountability from day one by reinforcing desired EVP behaviours through multiple forums such as new employee onboarding, leader-led sessions, and employee recognition programmes. m Wipro actively promotes a culture of openness and candid feedback regarding the extent to which employees are living the values in the three following ways: Ombuds process Employee blogs Employee opinion surveys

Step #2: Enable Employee Self-Regulation of the EVP Experience

Employee-Focused Value Proposition Reinforcement and Feedback


Wipro uses multiple forums to reinforce and celebrate commitment to desired behaviours and provides frequent opportunities for employee feedback to drive trust and advocacy
Key Employee-Focused Value Proposition Reinforcement and Feedback Activities Employee Onboarding Onboarding includes a half-day workshop on Spirit of Wipro and a video that describes the values that the Spirit of Wipro stands for. Importantly, the workshop focuses on employee empowerment to live and reinforce the values so that employees understand that they own values realisation. Ombuds Programme The Ombuds programme is a mechanism to encourage employees to voice concerns around misalignment and violation of values in a safe way that they can trust Wipro will take action on.

Leader-Led Sessions at Local Offices Senior leaders travelling to regional offices hold informal sessions with employees to conduct a quick audit of values adherence and identify immediate opportunities for improvement.

Employee Blogs Wipro introduced Blogs at Wipro to encourage informal dialogue among employees regarding employee compliance with values and EVP. The blog provides a forum for employees to share, meet, and collaborate on ways to reinforce and demonstrate desired behaviours in line with Wipros EVP.

Recognition Programmes Through its Encore recognition programme, Wipro recognises employees that live the values by demonstrating exemplary behaviours, and modelling it to their peers.

Employee Opinion Surveys The employee opinion survey (EPS) also known as the Voice of Wipro (VOW)is periodically used to solicit employee feedback on the extent to which employees are role modeling the EVP.

Source: Wipro Limited; Corporate Leadership Council research.


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m While most organisations establish an Ombuds process for legal and compliance issues, Wipro goes a step further to utilise this mechanism to ensure that all internal programmes, policies, and processes are aligned to the employee value proposition and values. m Wipro encourages employees to voice concerns around misalignment and violation of values through an intensive communication campaign. Campaigns provide real-life dilemmas to illustrate the nature of concerns that should be raised to the Ombudsperson. m The Ombuds process provides a simple, confidential, and trusted route to report violations and misalignments between employee or organisational actions and the values. An Ombudsperson is designated at the business unit and corporate levels to investigate and respond to concerns raised by employees. Employees may write to the designated Ombudsperson for his or her business unit to report concerns. m Within 30 days of raising of concern, the Ombudsperson submits a report to the business unit or corporate review committee comprising of the Ombudsperson and business unitCEO, CFO, HR head, and chief legal officer. m Based on discussions and deliberations on the Ombuds report, the review committee provides recommended action steps on the concern raised to appropriate departments. This ensures ongoing corrections of any misalignments between the EVP and corporate values.

Step #3: Control for Ongoing Alignment of Employee Experience with EVP

Identifying and Correcting Misalignments


Employees are encouraged to voice serious valuemisalignment concerns to a designated Ombudsperson
Ombuds Process Promotion Channels Awareness Campaign Posters

who collaborates with an Ombuds review committee to investigate employee feedback


Ombuds Review Committee and Process Ombuds Process Designated ombudsperson investigates concern, involving appropriate parties, and ensuring confidentiality. Ombudsperson prepares a detailed report within 30 days from raising of concern. Ombudsperson submits report to business unit or corporate review committee. Review Committee discusses concern and draws recommendations for next steps.

E-Mails A real-life scenario shows a typical situation when an employee should approach the Ombudsperson.

Ombuds Review Committee Designated Ombudsperson Business Unit CEO Business Unit CFO Business Unit HR Head Business Unit Chief Legal Officer

and provides recommendations to management to correct programme and policy misalignments with the EVP
Department Response to Ombuds Review Committee Recommendations
Based on ombuds team feedback, we need to reassess our sales force incentives.

Contact details for the designated Ombudsperson are also provided for easy employee access. Compensation and Benefits Team
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Department Decision-Maker Imperatives Hear and consider voice of the employee. Correct programme, policy, and process misalignments with the values. Monitor emerging issues. Identify ways to improve operations.
Source: Wipro Limited; Corporate Leadership Council research.

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m By actively involving employees in reinforcing and managing the value proposition, Wipro is experiencing high levels of employee satisfaction and engagement. m Wipro is also experiencing a high percentage of employees actively promoting the organisation to friends and family as a best employer.

Results

Increased Engagement and Employee Advocacy


Involvement of employees in reinforcing and delivering the value proposition is driving employee engagement and building advocacy
Employees Demonstrating a High Level of Engagement at Wipro Indexed 120

100

= 20%

FY 2007

FY 2008*

Increased Employee Advocacy


As well as increased employee engagement, our organisation has identified a growing culture of employee advocacy within Wipro that is being driven by the increased involvement of employees in delivering and reinforcing our value proposition. Veena Padmanabhan General Manager, HR Process and Capability Building Wipro Limited

* Preliminary results from dipstick survey.


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Source: Wipro Limited; Corporate Leadership Council research.

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Employee Recruiters
MITRE Corporation
A strategy for empowering and enabling employees to successfully refer high numbers of quality candidates to the organisation.

Company Profiled

Action MITRE enables employees to act as promoters of the employment value proposition by providing them with the information and support that they need to successfully refer strong candidates.

Likely Return on Investment  Increase in employee referrals Increase in quality of candidates

Industry: Systems Engineering Revenue: Not for Profit Employees: 6,800 Headquarters: Bedford, Mass., United States Organisational Challenge With low unemployment among systems engineers and facing fierce competition for talent from bigger brand name companies, MITRE was looking for new ways to leverage current employees social networks to attract and recruit needed talent.

Key Teaching It is not the size of the referral bonus that is important to a successful employee referral programme but the organisations ability to provide employees with the information and tools they need to effectively identify and attract potential candidates from their social networks.

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Practice Driver

An Unleveraged Weapon in the War for Talent


Driven by low unemployment within target talent populations
Unemployment Rate for U.S.Software Engineers
20%

and tough brand name competition for that scarce talent


MITREs Talent Competitors

SAIC
Percentage 10% Unemployed

Lockheed Martin Corporation Northrop Grumman Corporation Accenture Ltd.

0%

2000

2001

2002

2003

2004

2005

MITRE was turning to employees as the most successful channel to attract right-fit candidates
MITREs Applicant-to-Hire Ratio by Source 2003 Source: Applications for advertised openings (active candidates) Source: Referrals from current employees (often passive candidates)

but only experiencing moderate success


Percentage of New Hires Originating from Employee Referrals 34%
Percentage of New Hires Originating from Employee Referrals

60:1 18:1

25%

Referrals Yield More Right-Fit Candidates The probability of finding the right talent is three times higher through employee referrals than through general applications.
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U.S. Organisation Average

MITRE (2003)

Source: MITRE Corporation; Bureau of Labour Statistics; Recruiting Roundtable Process Benchmarking Suite; Corporate Leadership Council research.

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HR enables the workforce to be more effective at attracting talent by enhancing awareness about the talent needs and employment value proposition of the organisation. In addition, HR provides employees with recruiting tools to maximise the attraction effectiveness of their networking activities. Contrary to common practice, MITRE does not believe that the referral bonus is the main driver of employees willingness to recruit talent for the organisation. Rather MITRE believes that success stems from providing engaged employees with the insights and tools they need to find right-fitting candidates within their social networks.

Practice in Context

Supporting Organisational Advocates


MITREs HR department increases the level of information and support needed by employees to actively promote the organisations EVP
MITREs Approach to Leveraging Employee Networks to Attract Talent 1 2 MITRE Increases Employee Awareness About Organisational Talent Needs and the Organisations Value Proposition MITRE Provides the Tools and Support Needed for Employees to Leverage Their Networks Effectively

Organisational Challenges Organisations are overly focused on employee referral incentives as the driver of a successful referral programme. Employees are unaware of organisational talent needs and the organisations EVP.

Organisational Challenges Employees are too limited when thinking about potential networks to promote the EVP.

Employees often lack the tools and support to promote the EVP effectively.

Not (Only) About the Referral Bonus


We realised that our employees were committed to MITRE and actually wanted to champion the organisation, they just didnt know how. It was therefore up to us to provide the necessary insight and support in order to leverage that commitment to attract talent. Gary Cluff Corporate Recruiting Director MITRE Corporation

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HR embeds a recruiting update into monthly team meetings across the organisation to highlight current talent needs, to provide insights into how to sell the organisations EVP, and to generate leads about where to find great talent. In addition, HR builds awareness about the organisations EVP and talent needs through established events and programmes.

Step #1: Raise Employee Awareness of Attraction Goals

The Information They Need


MITRE frequently provides employees with insight into talent needs and how to effectively promote the organisation to potential job-seekers
Ten-Minute Employee Referral Discussion at Monthly Team Meetings

Recruiter Update Update on current talent needs


Frequently updated take-home material on specific talent needs, which is also posted throughout the organisation.

Results from New Hire Survey What Factors Convinced You to Join MITRE?

How to effectively sell the MITRE value proposition Brainstorming from team on where to find great talent
Salary Work/Life Nature of Work People Professional Job Development Security

HR team facilitates information about the most attractive aspects of the MITRE value proposition to employees. Employees Collaborative environment forces employees to think outside the box when exploring their social network for potential candidates. Recruiter Recruiters participate in regular staff meetings across business units and functions to provide information on talent needs and identify potential candidate pools.

Staff Meeting

Additional Awareness Building Activities


New Hire InvolvementHR introduces referral programme during formal onboarding presentation and provides practical advice for new hires to get involved. HR follows up with referral reminder e-mail 30 and 60 days after onboarding. Executive Promotion CEO and executive team actively promote employee referrals and share referral success stories during companywide presentations. Organisational PromotionHR constantly refreshes referral promotional material and promotes material at employee-wide gatherings and events.
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Source: MITRE Corporation; Corporate Leadership Council research.

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MITRE supplies its employees with candidate referral materials, such as networking cards, to maximise referrals from employees social and professional interactions with potential candidates. Best practices on finding, approaching, and securing applications from candidates are promoted through HR support materials.

Step #2: Provide Employees with Ongoing Support to Drive Referral Activity

The Support They Need


MITRE provides support material for employees to use at social and professional events
Employee Networking Cards MITRE Talent Needs Social Networking Tools Jobster.com Linkedin.com H3.com YorZ.com
Employee Potential Candidate Employee

and promotes employee involvement in new online social networking tools


Social Networking Tools

as well as sharing best practices for how to leverage networks to generate referrals
Promotional MaterialsWhere to Find Candidates?*

Looking Beyond Friends and Family HR continually pushes employees to think beyond active job seekers as potential candidates. Suggestions for how to leverage new or unusual sourcing channels to find passive candidates are provided.

Dont limit your referrals to friends, neighbors and family members.


Think about:
People you meet at technical symposia Speakers you hear at professional conferences Impressive individuals you meet in the airport/ on the bus/at a restaurant/etc. Respected former workmates from past employers Classmates from your alma mater

Heres how Steve Roe encouraged his alumnae friends to consider joining MITRE. I browsed through the jobs database and saw what positions were available, and what might be a good match for my friends skill sets. Also, I thought my resume had worked pretty well, so I sent copies to my friends so they could see what got me in the door here. I talked to them about the role MITRE plays in working with customers, so they had a solid understanding of MITRE before they even sent in their resumes or came in for interviews.

Sharing Best Practices HR identifies employees who make the most referrals, and profiles the tactics that generated their referral success: Where did they find candidates? How did they approach them? What information did they share to get them interested in MITRE?

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Source: MITRE Corporation; Corporate Leadership Council research.

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Since launching its employee referral support initiative in 2003, MITRE has experienced an 18% increase in the proportion of total new hires sourced through employee referrals, while achieving a turnover rate of just 5.0% against the industry benchmark of 23.7%.

Results

Higher Quantity and Quality


MITREs efforts to leverage employee networks have led to more employee-referred new hires
Increase in New Hires Coming from Employee Referrals at MITRE 20032005 52%

Percentage of New Hires from Referrals

34%

2003

2005

as well as better retention


Industry Average Versus MITRE Systems Engineer Turnover Rates 2005 23.7%
Annual Turnover

5.0%
Industry Average MITRE
Source: MITRE Corporation; American Electronics Association; Corporate Leadership Council research.
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Key Findings
1. Organisations face two critical challenges in communicating their EVP: First, the broader labour market generally distrusts traditional communication channels. Second, the most trusted communication channelan organisations current employeesoften does not actively advocate for their organisation in the labour market. 2. To improve broader communications with the labour market, organisations need to ensure that communications during the recruiting process are candid, accurate, and consistent: Specifically, recruiting processes should accurately reflect the realities of the work environment, be consistent in their representation of the EVP, and facilitate candidates self-assessment of their fit with the organisation. 3. Current employees are one of the most widely used and highly trusted sources of organisational information for potential job candidates: Approximately 80% of job candidates find current employees to be a credible source of information. Furthermore, candidates referred by employees have significantly higher levels of commitment to the organisation. 4. Unfortunately, few employees actively advocate for their organisations in the labour market: Only 28% of employees across the globe and 16% of employees in India report that they would refer a friend to work at their organisation. 5. The percentage of employee advocates in an organisation is strongly correlated to employee perceptions of trust and organisational values: Organisations looking to build greater levels of employee advocacy should involve employees in identifying and overcoming any perceived misalignments between the organisations stated EVP and values and the actual work experience.

Source: Corporate Leadership Council research.


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Attracting and Retaining Critical Talent Segments


Building a Competitive Employment Value Proposition

From: Communication of the Employment Brand 1. Focus on brand communication 2. EVP focused on nondifferentiated aspects of the organisation like compensation and benefits 3. Focus on getting candidates in the door 4. Focus on one-way messages to recruit talent 5. Communication through HRowned employment brand campaigns

I. Defining the Differentiated Employment Value Proposition


Build the EVP around attributes that

II. Managing EVP Variation Across Key Segments

III. Ensuring EVP Credibility in the Labour Market

To: Management of the Employment Value Proposition

Trade-off consistency and complexity based Build consistency and reality into the 1. Focus on realisation of on segment needs and the ability to actually traditional processes of the organisation the employment value maximise attraction and commitment deliver on EVP attributes proposition Incorporate an understanding of how Identify and select EVP attributes than enable candidates make employment decisions relative advantage over direct labour market Build processes, decision rules, and 2. EVP focused on whats infrastructure to manage necessary variations Turn employees into labour market advocates competitors most important to the from the core EVP by building advocacy and trust labour market Ensure the EVP is aligned with the organisations strategic objectives 3. Focus on delivering work environment experiences Profiled Cases Profiled Case Profiled Cases that matter most to reinforcing the EVP 4. Focus on candidate experience of the EVP throughout the employee life cycle 5. EVP messages reinforced through the current workforce

Employment Value Proposition Redesign

Segment-Specific EVP Communication

Life CycleBased EVP Delivery

Employee-Centric EVP Delivery

Employee Recruiters

Source: Corporate Leadership Council research.


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Key Findings and Recommendations

Attracting and Retaining Critical Talent Segments in India


Building a Competitive Employment Value Proposition

Overall Takeaways
1. The Employment Value Proposition (EVP) is key to attraction and commitment of candidates in India. An attractive EVP provides three quantifiable benefits: improved attractiveness, greater employee commitment, and higher compensation savings. 2. Development opportunities and future career opportunities, drive both attraction and retention outcomes in India. In addition, organisational stability and growth rate are key attraction drivers while coworker and manager quality maximise employee commitment. 3. Organisations need to customise their EVP for strategic talent segments. Global organisations must account for geographic variation in EVP preferences, while companies operating primarily in India may need to account for functional differences in EVP preferences. 4. Traditional EVP communication channels typically lack credibility in the Indian talent market. Current employees that advocate for the organisation are the most credible channel for EVP communication. Organisations can more effectively communicate their EVP to the labour market by increasing the number of EVP advocates in their organisation.

Source: Corporate Leadership Council research.


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The CLC Attraction and Retention EVP Design Centre


Organisations can segment Council data to determine the EVP attributes that most effectively match their needs
1 Determine Segment of Interest 2 Receive Detailed Analysis of EVP for Segment

Members are able to select a segment based on geography, function or other demographic criteria
Back
Address:

Forward

Stop

Refresh

EVP for Critical Segment


The Opportunity The Rewards
50% 44%
Attributes that display consistency across segments

The Work

The Organisation

The People

35% 33%

33% 28% 22% 20% 19% 15% 9% 11% 11% 11% 12% 4%

Attributes that display variation across segments

Percentage of Respondents Rating in Top Five

28% 25%

17% 15% 13% 10% 10% 7% 6% 2%


en es s

14% 10% 9% 9% 5% 5% 5% 4% 4% 4% 4%
n itio ilit y

7%

3%
en t

5%

0%
pp or tu nit

ta bil

O rg an

t Fu

ur

Ca

re

er

iza

ev

elo

pm

en

tO rg

tio

pp

na

or

lS

er

tu

ito

nit n

an

iza

tio

ro

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y Co m pe n Re He V satio tir alt ac n em h ati en Ben on t B ef W en its or ef k its Lif e Ba lan ce L Re oca co tio Inn gnit n o io J Bu ob vat n sin Im ion es p s T ac ra t ve l Re sp Em e Pr pow Et ct Te odu er hics ch ct me n Q n M olo ua t ar gy lit ke L y So t P ev cia os el itio lR es n po n sib Inf or Ind ility Cu ma us sto l E try m nvir O er R onm rg ep e an u n iza ta t tio tio n n D Size ive rsi ty R Pe isk op Ta le kin g M Man an ag ag em er e Co Q nt u wo ali ty rk e Ca r Q m ua ar lit ad y er ie w th Ra Jo b Int er ts es Al ign m Pr od uc tB r d an Aw ar G re at Em plo y er Re co gn v En iro nm en ta e lR sp on sib l Co leg ial W or n kE vir on m S io en rL ea de rs hip Re pu

cr

ies

ies

ac

te

en

ity

ta

tio

Attributes

and then receive detailed EVP analyses for that population.

Source: Corporate Leadership Council research.

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