the coming employee wave

The Coming Employee Wave

The Tug-of-War for Talent

in our Post-Recession Economy

Organizational

Commitment

There are three types of

psychological attachment that

people feel towards organizations.

Organizational Commitment


Normative

Commitment

Continuance

Commitment

Affective

Commitment

These types of employees stay out

of feelings of obligation; for some

reason, they feel like they should.


Normative

Commitment

Continuance

Commitment

Affective

Commitment

Employees stay because they “ought to”

These types of employees stay because the cost of

leaving is too great. These costs could be

economic, but also include things like social costs.


Normative

Commitment

Continuance

Commitment

Affective

Commitment

Employees stay because they “have to”

These types of employees stay because

they strongly identify with organizational

goals and feel a positive emotional

attachment to the organization.


Normative

Commitment

Continuance

Commitment

Affective

CommitmentEmployees stay because they “want to”


Normative

Commitment

Continuance

Commitment

Affective

Commitment

In times of economic downturn,

organizations can get good talent for cheap

prices because a lack of options and a tight

budget build continuance commitment.


Normative

Commitment

Continuance

Commitment

Affective

Commitment

That’s what has happened recently.


Normative

Commitment

Continuance

Commitment

Affective

Commitment

Except that people are starting to shift

away from continuance commitment as

the economy climbs out of this trough.


Normative

Commitment

Continuance

Commitment

Affective

Commitment

Employees feeling only continuance commitment

are finding that they are more mobile now than

they were two or three years ago.


Normative

Commitment

Continuance

Commitment

Affective

Commitment

And they’re leaving.


In fact, in October of 2010, the number

of employees terminated through

layoffs and discharges was smaller

than the number that voluntarily quit.

Employees

terminated

through

layoffs and

discharges

Employees that

voluntarily quit


This trend presents both a

threat and an opportunity.


Threat

What can we do

to keep our

best people

from leaving?

Opportunity

What can we do

to attract the

best people

from elsewhere?


The answer to both the threat and

opportunity is the same – the EVP.

The

EVP

Employee Value Proposition

There are two ways of

thinking about the EVP.

We expect people to pay their

dues and work their way up the

line before they get the top

jobs and big bucks.

We think of our people as

volunteers and know we have

to try to deliver on their dreams

now if we are to keep them.

We have a strong value

proposition that attracts

customers.

We also have a distinctive

employee value proposition

that attracts and retains

talented people.

The Old Way The New Way


We expect people to pay their

dues and work their way up the

line before they get the top

jobs and big bucks.

We think of our people as

volunteers and know we have

to try to deliver on their dreams

now if we are to keep them.

We have a strong value

proposition that attracts

customers.

We also have a distinctive

employee value proposition

that attracts and retains

talented people.

The Old Way The New Way


This “new way” is essential to attracting

and retaining talented people.

As part of the hiring process,

employees have traditionally had to

present what you could think of as an

organizational value proposition.



References


References

These documents, and others

like them, are all ways to say,

“You should hire me because…”


References

PRETTY DARN

AWESOME

“…I’m awesome.”

But it’s a two way street.


You have to consider the

value proposition that you

offer to potential employees.


Employee Value Proposition“We’re awesome, too!”

This Employee Value Proposition

(EVP), introduced in The War for

Talent by McKinsey & Co.,

originally included four elements.


With the rise of the current generation,

a fifth is becoming an equal priority.



Exciting Work Great Company

Ample Rewards Growth and Development

Work/Life Balance


Exciting Work Great Company


Work/Life Balance

(The new one.)


Exciting Work

Challenge, Innovation, Passion

Great Company


Work/Life Balance

People want challenging jobs that they can feel

passionate about doing: jobs that are

demanding, stretching, and full of requirements

that are interesting and worthwhile.


Exciting Work


Great Company

Management, Culture, Leadership


Work/Life Balance

People want to work for organizations

that are well managed, practice

admirable cultures and values, and

have great leaders.


Exciting Work


Great Company



Work/Life Balance

Regarding culture, two aspects are

especially important: (1) a strong

emphasis on performance, and (2)

an open and trusting environment.


Exciting Work


Great Company

Culture, Leadership, Management

Ample Rewards

Pay-for-Performance, Market Equity

Growth and Development

Work/Life Balance

People want to be compensated equal to the value

they create and the opportunity cost of choosing

their organization. They also want to be recognized

and valued for their individual contributions.


Exciting Work


Great Company


Ample Rewards



Feedback, Mentoring, Opportunities

Work/Life Balance

People expect their organization to

help them develop skills. Today,

people realize that their only real job

security is the skill set they posses.


Exciting Work


Great Company


Ample Rewards




Work/Life Balance

Many individuals, particularly

Millennials, crave work-life balance.


Work/Life Balance

Exciting Work


Great Company


Ample Rewards




Riding the

Wave

Picoult suggests five things

that organizations can do to

attract and retain employees.

To “ride the wave”,

so to speak.

Articulate a Purpose

Market the Opportunity

Give Undivided Attention

Communicate Considerately

Set Up Listening Posts






They match really well with

The War for Talent’s EVP

concept. If you’re interested in

these, look up Picoult’s article.






Exciting Work

Exciting WorkGreat

Company

Growth and

Development

Ample

Rewards

Work/Life

Balance

Growth and

Development

Great

Company

Great

Company

Conclusion

People can feel normative, continuance, or affective commitment

There is both a threat and opportunity regarding the acquisition of talent

The old way of thinking made sure employees paid their “dues”

The new way of thinking considers their dreams and desires for opportunity

The old way of thinking considered marketing only to customers

The new way of thinking suggests crafting an Employee Value Proposition

Employees value exciting work, a great company, ample rewards, growth and

development, and work/life balance

An EVP can help you take advantage of the oncoming tide of potential employees

Consider how you measure up in each area of the EVP

http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

The Coming Employee Wave

The Tug-of-War for Talent

in our Post-Recession Economy

Daniel Larsen - http://www.linkedin.com/pub/daniel-larsen/19/8b8/910

http://www.linkedin.com/pub/daniel-larsen/19/8b8/910



the coming employee wave

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