employee branding: the link to the best...

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Employee Branding: The Link to the Best EmployersTed Emond, Hewitt Associates

Breakfast Briefs—The Bagg Group and Fulcrum Search Science Breakfast Seminars 2008

2

Agenda

The Talent Challenge: A Perfect Storm

Hewitt’s Engagement Studies

– What is employee engagement

– Does engagement matter

– Engagement varies

– Engagement and intrinsic motivation

– What we’ve learned about engaging your workforce

Foundation for Your Employee Brand: The Employee Value Proposition

A Quick Word About the Future

3

The Talent Challenge:The Perfect Storm

4

130

140

150

160

170

180

190

200

2002 2006 2010 2018 2022 2026 2030

Labor Needed Labor Available

Source: United Nations

Millions

Global Workforce Projections

5

Emerging Workforce: Canadian Projections

2008 2011 2012 2015 20202010

• People of Colour will outnumber Whites in the city of Toronto.

• Baby boomers reach age 65.

• Millennial generation enters workforce en masse.

• 950,000 vacant jobs in Canada due to exodus of mature employees

• 1 in 5 Canadians will be People of Colour.

• Seniors will outnumber children in Canada

• Negative natural increase.

• All population growth exclusively from immigration

2017

• Nearly half of the workforce in Canada’s 5 major cities will be People of Colour.

6

Canada—Labour Force Growth

Labour force grew by 226,000 per year for last 25 years

This decade will grow by 123,000

By 2010 will drop to 42,000

By 2016 growth will be near zero

7

Canadian Diversity Current State

Source: Statistics Canada 2006 Census

Ethnic Diversity of Canadian Cities

0%5%

10%15%20%25%30%35%40%45%50%

Toron

to, O

ntar

ioVan

couv

er, B

CAbb

otsfo

rd, B

C

Calgar

y, AB

Edmon

ton,

AB

Mon

treal,

QC

Ottawa-

Gatine

au

Percentage of visible minorities by city

8

Canadian Diversity Current State

Source: Statistics Canada 2006 Census

0%5%

10%15%20%25%30%35%40%45%50%

Toron

toVan

couv

er

Miam

iLo

s Ang

eles

Sydne

y M

elbou

rne

New Y

ork C

ityM

ontre

alW

ashin

gton

Ethnic Diversity of Selected Global Cities

Percentage of visible minorities by city

9

Canada—Diversity

“Firms doomed if they fail to tap diverse talent pool”

26 July 2007, The Toronto Star

10

Canada—Competing for Talent

Source: Hewitt’s “Attracting and Retaining the New Workforce” Survey – June 2006

Attraction and Retention Challenge by Region

35.6%

41.2%

41.2%

44.0%

46.7%

57.9%

64.5%

0.0% 20.0% 40.0% 60.0% 80.0%

Ontario

MB and SK

Atlantic Provinces

National

BC and NT

Quebec

Alberta

Percentage of participants indicating both attracti on and retention are challenges

Attraction and Retention Challenge by Region

35.6%

41.2%

41.2%

44.0%

46.7%

57.9%

64.5%

0.0% 20.0% 40.0% 60.0% 80.0%

Ontario

MB and SK

Atlantic Provinces

National

BC and NT

Quebec

Alberta

Percentage of participants indicating both attraction and retention are challenges

11

Canada—A Perfect Storm

LabourShortage

Only 50% of Canadian employees believe that their employers are attracting the people needed for success.

—Best Employers in Canada2008 Study

SkillsShortage

Only 44% of Canadian employees believe that their employers areretaining the people needed for

success.

— Best Employers in Canada 2008 Study

GreaterWorkforceDiversity

The dominant factor for business in the next two decades is not going to be economics or

technology; it will be demographics .

— Peter Drucker: The Future Has Happened Already

12

Meeting the Talent Challenge

Engage your workforce

Make talent a business priority

Ensure organizations are focused on adding value

13

Hewitt’s Engagement Studies

14

Engagement Studies

Sponsors:

2 Annual studies:

– Best Employers Study (organizations with 400+ employees)

– Best Small/Medium Employers Study (organizations with 50 to 399 employees)

Hewitt’s employee engagement database (4 year rolling averages):

– 400+ organizations employing 900,000+ employees

– 250,000+ employees surveyed

– 3,500+ leaders surveyed

– 50+ industry/sector benchmark comparisons

15

Employee Research Over Time

Pos

itive

Cor

rela

tion

With

Bus

ines

s P

erfo

rman

ce

Lower

Higher

How much people like it here

The Evolution of Engagement Research

Satisfaction

How much people want to improve business results

Commitment

How much people want—and actually do—improve business results

Engagement

16

What is Employee Engagement?

17

STAYSTAY

22

• Have an intense desire to be a member of the organization

SAYSAY

11

• Consistently speak positively about the organization to coworkers, potential employees, and customers

STRIVESTRIVE

33

• Exert extra effort and engage in behaviors that contribute to business success

Behaviours of Engaged Employees…

Hewitt’s Definition of Engagement

Engagement is the state of emotional and intellectual commitment to an organization or group. Or, in other words, the degree to which you have captured the hearts and minds of your employees

18

Does Engagement Matter?

19

Does Engagement Matter?

Financial SuccessGreater financial returnsGreater growthGreater customer satisfaction

High MoraleHigher morale and sense of accomplishmentGreater alignment among leaders and between leaders and employeesGreater employee alignment with values and workplace culture

Attraction & RetentionLower turnoverMore unsolicited applications for employment

ProductivityLess sick timeFewer lost days due to accidentsHigher performance cultureEmployees more focused on future direction and strategies

Studies show that high engagement can lead to:

20

Employee Engagement Varies…

21

Engagement by Sector

% Engaged

30%

40%

50%

60%

70%

80%

90%

Best E

mploye

r

Other

Par

ticipan

ts

Top 10

Bottom10

Top 50

Bottom 50

Privat

e Sec

tor

Public S

ecto

r

Engagement

22

30%

40%

50%

60%

70%

80%

Pharm

acutic

als

Profe

ssio

nal Ser

vices

Credit

Union

s

Constru

ctio

n & E

ngin

eerin

g

Real E

state

Teleco

mmunica

tion

Insu

rance

Banks

Media

Food, B

ever

age &

Tobac

co

Oil, Gas &

Con

sum

able

Fuels

Air Fre

ight &

Logist

ics

Health

Car

e

Retail

ing

Energy

Hotel, R

esta

uran

t & L

eisure

Transp

ortat

ion

Minin

g & M

etal

Gamin

g

IT S

ervic

es

Utilit i

es

Engagement

Engagement by Sector

% Engaged

23

Engagement by Region

20%

30%

40%

50%

60%

70%

80%

90%

BC

Alber

ta

Sask/M

an

Ontario

Quebec

Atlantic

Global

North A

mer

ica

Asia P

acifi

c

Europe

Latin

Am

erica

% Engaged

24

Engagement by Best Employer ZoneJourney (57%)

Maintain (74%)

Rethink (38%)

25

Engagement by Role

30%

40%

50%

60%

70%

80%

90%

100%

Senior Mgr Middle Mgr Supervisor/TeamLdr

Prof/Tech Front Line Adm/Clerical

% StronglyAgree/Agree

Maintain Engagement Zone Journey to High Engagement ZoneRethink Orientation to People Zone Canada

26

20%

30%

40%

50%

60%

70%

80%

90%

Millenials Generation X Late Boomers MiddleBoomers

Early Boomers Matures


Canada

Engagement by Generation

27

Engagement by Years of Service by Generation

50%

55%

60%

65%

70%

75%

80%

< 1 years >1 - <2years

2 - 5 years

6 - 10 years

11 - 15years

16 - 20years

21 - 25years

26 years orlonger


Overall Mid Boomers Late Boomers Generation X Millenials

61%

65%68%

70%

75%

72%

62%

67%

28

Engagement of Segments of Workforce

0%10%20%30%40%50%60%70%80%

Male

Female

Visible

Minorit

y

Aborigin

al Per

son

Perso

n with

Disa

bility

Born in

Can

ada

Born o

utsid

e Can

ada

English is

firs

t lan

guage

French

is fi

rst l

anguag

e

Neither

Eng./F

rench

is fi

rst l

anguag

e

29

Engagement by Size of Organization

0%

20%

40%

60%

80%

100%

10,000 > 4,000 - 9,000 2.500 - 3,999 1,500 - 2,499 1,000 - 1,499 500 - 999 200 - 499 < 200

Size of Organizaton by Number of Employees

Engaged Not Engaged Somewhat Engaged

30

Union versus Non-Union Employees

0%10%20%30%40%50%60%70%80%90%

100%

66% > unionemployees

66% > non-union/non'mgt

employees

33% -66% unionemployees

33% - 66% non-union/non-mgt

employees

< 33% unionemployees

< 33% non-union/non-mgt

employees

% of Union Representation Excluding Management Empl oyees

Engaged Somewhat Engaged Not Engaged

31

Engagement and Intrinsic Motivation

30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85%

Canada

Public Sector

Private Sector

Top 10

Bottom 10

Top 20

Bottom 20

Top 50

Bottom 50

Maintain Zone

Journey Zone

Rethink Zone

Engagement Intrinsic Motivation

32

What We’ve Learned About Engaging Your Workforce

33

Prerequisites for Being an Employer of Choice

Do the basics well

Have leaders who lead

Have managers who manage

Hire, promote and reward for fit

34

Best Employers Do the Basics Well

30%

40%

50%

60%

70%

80%

90%

My pay isappropriate for my

role

Benefits meet myand my family nees

Physical workenvironment is

appropriate for thework I do

Balance betweenmy work and my

personal commitsis right for me

My workloadstress is

manageable


Canada (database average) Top 20 Bottom 20

35

Best Employers Have Leader Who Lead

30%

40%

50%

60%

70%

80%

90%

Provides cleardirection

Makes me feelexicited about

future

Delivers onpromises

Makes decisionsconsistent with

values

See strongevidence of

effectiveleadership

% StornglyAgree/Agree


I have a good working relationship with my manager. 87% versus 67%

36

Best Employers Have Managers Who Manage

30%

40%

50%

60%

70%

80%

90%

Sets clearexpectations with

me

Provides support Ineed

Measuresperformanc in

ways that makessense

Provides on goingfeedback

Celbratessuccesses

Effectively dealswith poor

performers



37

Best Employers Hire, Promote and Reward for Fit

30%

40%

50%

60%

70%

80%

90%

I feel I'm valuedmember of org.

My personalvalues align with

org.

I feel I fit in wellhere

My co-workersvalue my input

When faced with acrisis we work

together



38

Foundation for Your Employee Brand: The Employee Value Proposition

39

Employee Value Proposition

…the rewards for managing an employee value proposi tion (EVP) effectively are huge, increasing a company's pool o f potential workers

by 20% and the commitment of its employees fourfold …

… companies with well-managed EVPs get away with pa ying 10% less than those with badly managed EVPs…

…most companies are falling down on this job. Three -quarters of new recruits feel that their employers are failing to d eliver on their

promises, making the recruits feel less committed t o their work.

Source: The Economist Survey of Talent, October 2006—citing a Corporate Executive Board detailed study of

90 organizations

40

When an EVP Exists Employees Say:

30%

40%

50%

60%

70%

80%

90%

Our People-focused policies,

programs &practices create a

positive workenvironment for me

Our People-focused policies,

programs &practices fit our

organizationculture

This organizationsupports learning &development of its

employees

My future careeropportunities here

look good

This organizationdelivers on

promises it makesto employees



41

What is an Employee Value Proposition?

A written document that answers the questions:

What is expected of me as an employee, manager, leader?

– What I do—the tangible skills and expertise I bring to my work

– How I do my work—the way I behave and the approach I take to complete my work

What can I expect of you as my employer? What’s in it for me? What is special about working for you?

– How we interact and work together

– Coaching, mentoring and opportunities

– Learning and development

– Rewards and recognition

– Managing my work life and my personal life

42

Employment Deal

EmployerCommits

To...

EmployeeCommits

To...

Capabilities:what your organization

must excel at if it is going to

succeedLeadership:

the behaviours and styleof leaders, managers

and supervisors

Workplace Culture:the practices and norms

that shape behaviourand decision-making

Employee Value Proposition Components

Strategic Choices:organization’s source of value & strength, pace of

change and market influence

CustomerValue Proposition:

the value your customersshould derive from

your products and services

Mission, VisionValues :

the desired future state for the organization- what you believe in

43

How an EVP Addresses your Talent Challenge

Integration

Create a connection to the needs and demands of the organization for success in the future

– Right people, doing right things, with the right behaviours

Create a connection to the labour market for your key talent

– Right programs/practices/ways of working together to appeal to your target workforce segments

Make sure everything works together

– One framework as a foundation for programs and practices that are consistent and reinforce each other

44

How an EVP Addresses your Talent Challenge

Execution

Touchstone for program/practice strategy, design and implementation

Basis for identifying and closing gaps between current state and desired future state, and for measuring progress

Foundation for creating an Employment Brand to convey the essence of the employment deal to current and prospective employees—i.e., to bring the EVP to life

45

An Example of the “Deal”—Managing work and personal life

Professional Services

• Extensive flexibility to fit your personal commitments into your work schedule

• Extra services and benefits to help you manage your personal commitments

• Time off when client demands are low

• Be available to meet client needs

• In busy times, this will mean evenings and weekends

What you can expect of usWhat we expect of you

• A work schedule that fits with your personal life

• A job that you don’t have to take home with you

• Resources to help you manage your personal life

• Be clear when and how much you want to work

• Be willing to commit extra time and effort beyond your scheduled work hours if you want to advance here

What you can expect of usWhat we expect of you

Retail

46

EVP readyfor Branding& EngagementActionPlanning

The EVP Process

Starting with clear business strategy and goals/objectives

ARTICULATE BUSINESS

REQUIREMENTS

ARTICULATEANTICIPATED

EMPLOYEE EXPECTATIONS

CRAFT THE “DEAL”

•Research the Organization Vision and Customer Value Proposition.

•Test Executive perspectives on Strategic Choices and Workplace Culture

•Confirm organization capabilities

•Ensure Executive agreement on Customer Value Proposition, Strategic Choices, Workplace Culture and Core Capabilities

•Test Executive perspectives on what should be promised to employees who meet expectations

•Research anticipated employee expectations of incumbents and target labour market segments

•Ensure Executive agreement on anticipated employee expectations

•Bring together business requirements and anticipated employee expectations to define the employment deal and confirm Executive agreement

•Clarify expectations of leaders and managers

•Test the EVP with leaders, managers and employees

47

A Quick Word About The Future

48

A Quick Word About the Future

Scarcity and diversity of talent will be a reality

Many parts of Western Canada are facing the challen ges today

Reality across all of Canada in next 5 to 10 years

Mature industries and much of the public sector wil l feel it sooner and stronger

“One size will no longer fit all”

49

HR’s Challenge

Despite improving functional excellence and moving to Shared Services, HR costs are increasing 6% per year and HR is still struggling to demonstrate value to the business.

Value

Past Present Future

Supportingthe

Business

Being aBusinessPartner

Being aBusiness

Driver

Most HR organizations are struggling to be a business

partner

We are fighting the wrong battle…we need to be value

drivers

Value is derived from owning and being accountable for

processes that deliver business results

We need to rethink the work of HR

50

Challenge for Human Resources Professionals—Cost versus Value

Cost

People Process People Outcomes Business Performance

PeopleAdministration Return

Operational efficiency & effectiveness

Talent Supply

Leadership Talent & Key Capabilities

High Performance

EmploymentRelationship

Value

Growth

Profitability

Innovation

Continuous supply of qualified talent

High performance workforce

Continuous supply of capable leadership talent

Compelling employment brand and engaged employees

51

Value-Added Talent Supply Process Involves

• Planning keyed to short- and long-term business goals

• Comprehensive inventory of incumbent workforce skills and understanding of gaps

• Predictive workforce analytics

Workforce Planning

Clear, articulated vision of the talent demand/supply impacts on business strategy execution

• Farming for critical roles vs. hunting for speed for high volume roles

• Deep relationships with diverse talent sources

• Mindset that everyone in the organization is a recruiter

CandidateSourcing

Deliberate and targeted sourcing strategies

• Differentiate assessment tools for key/critical roles

• Invest in training and coaching to develop managers’ assessment skills

• Create a compelling and seamless candidate experience

Assessment and Selection

Competency-based predictive processes to ensure successful hiring decisions

Onboarding andOrientation

• Begin onboarding process as soon as candidate accepts

• Strong orientation process to learn about the business and the work

• Support network to assist with learning about the business and role

Formal plan to place new hires on a success trajectory

First Year Performance

• Clearly-defined performance goals

• Frequent assessment and performance feedback

• Assess first year engagement

Tangible positive impact on bottom-line company performance

Lead

ing

Pra

ctic

es

Talent supply chain management requires integration and a strongExternal focus on the human capital needs of the business

52

Managing Process rather than Functions

HR Business Partners

Compensation& Benefits

OD/LeadershipLearningRecruiting

High PerformanceWorkforce

Talent Supply

Leadership Talent& Key Capabilities


HR Business Partners

Compensation& Benefits

OD/LeadershipLearningRecruiting

High PerformanceWorkforce

Talent Supply

Leadership Talent& Key Capabilities


• Human capital planning

• Interviewing

• Market Pay Levels

• Evaluation Tools

• Competencies

• Skill Gaps• On-boarding

and Orientation

• Sourcing• Screening• External

VendorManagement

• Human capital planning

• Interviewing

• Market Pay Levels

• Evaluation Tools

• Competencies

• Skill Gaps• On-boarding

and Orientation

• Deployment• Mobility• Leadership

Engagement

• Executive Rewards

• Pay Banding

• Leadership Development

• Succession Planning

• Skill Development

• Sourcing • Deployment• Mobility• Leadership

Engagement

• Executive Rewards

• Pay Banding

• Leadership Development

• Succession Planning


• Sourcing

• Team Building

• Goal Setting

• Pay Differentiation

• Incentive Programs

• Gap Assessment

• Performance Coaching


• Managerial Capability

• Team Building

• Goal Setting

• Pay Differentiation

• Incentive Programs

• Gap Assessment

• Performance Coaching


• Managerial Capability

• Employee Relations

• Benefits Design

• Base Pay Positioning

• Employee Surveys

• Career Development

• External Branding

• Employee Relations

• Benefits Design

• Base Pay Positioning

• Employee Surveys

• Career Development

• External Branding

53

A Snap Shot of the Future for Human Resources?CHRO

BU Talent Leader

BU Talent Leader

BU Talent Leader

BU Talent Leader

Process Owner: Talent Supply

Diversity Strategy

Workforce Planning

Sourcing and Recruitment

Evaluation, Selection, and Onboarding

Mobility Planning

Process Owner: Leadership Talent & Talent Capabilities

Identification and Assessment

Competency Development

Deployment

Succession Planning

Executive and Key Talent Rewards

Process Owner: High Performance

Goal Setting Critical Skill Growth

Manager Capabilities

Performance Communication

Reviews and Rewards

Process Owner: Employment Relationship Benefits Design

People Relations

Policy Design

Employee Surveys

Operational Effectiveness

PeopleR&D

HR Measurement Data Analysis/Mining Customer Feedback Research

Service Quality Technology Process Efficiency

Branding/Communications

CHRO

BU Talent Leader

BU Talent Leader

BU Talent Leader

BU Talent Leader

BU Talent Leader

BU Talent Leader

BU Talent Leader

BU Talent Leader

Process Owner: Talent Supply

Diversity Strategy

Workforce Planning

Sourcing and Recruitment

Evaluation, Selection, and Onboarding

Mobility Planning

Process Owner: Leadership Talent & Talent Capabilities

Identification and Assessment

Competency Development

Deployment

Succession Planning

Executive and Key Talent Rewards

Process Owner: High Performance

Goal Setting Critical Skill Growth

Manager Capabilities

Performance Communication

Reviews and Rewards

Process Owner: Employment Relationship Benefits Design

People Relations

Policy Design

Employee Surveys

Operational Effectiveness

PeopleR&D

HR Measurement Data Analysis/Mining Customer Feedback Research

Service Quality Technology Process Efficiency

Branding/Communications

Vendor Management

54

Challenge for Business Leaders

Do you have a strategy and the tactics in place to ensure your organization has these critical business outputs?

– Continuous supply of talent

– Continuous supply of capable leaders

– High performing workforce

– Engaged and committed workforce

If not, you’re already “behind the curve” in meetin g and solving the future talent challenge.

55

Questions/Discussion

56

www.engagementcheckup.com

www.hewitt.com/bestemployerscanada

Ted EmondHewitt Associates2 Sheppard Ave. E.Toronto, ON M2N 7A4

416-226-8422—direct647 291 0106—cell

[email protected]

employee branding: the link to the best...

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