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Developing Leadership from Employee Value Propositions

Learning Organisational Leadership from Employee Value Proposition Examples It’s no secret that energised employees perform at their peak, and employees who feel disengaged can be a […]

Learning Organisational Leadership from Employee Value Proposition Examples

It’s no secret that energised employees perform at their peak, and employees who feel disengaged can be a destructive element that no employer wants. As part of engagement strategy, organisations are finding that a strong and sustainable employee value proposition is invaluable. Here I look at two different employee value proposition examples before describing the steps to creating an organisational environment that emulates the best employee value proposition examples.

Employee value proposition examples in action

An effective employee value proposition will act as a magnet to the best talent, and help retain them. If your company is finding it difficult to hire top people, or is losing its best people to competitors, it could be that you need to look inward and reassess your employee value proposition.

When TNT Express found itself losing out in the talent employment race, it did exactly this. It canvassed employees and asked why they felt disengaged. From these results senior management on-boarded middle management to align these employee wishes with the organisation’s strategy, culture, and investment in human capital management. In its study, the factors identified as important to employees included:

  • Health benefits
  • Vacation benefits
  • Manager quality
  • Communication
  • Respect

Among almost all employee groups surveyed, compensation came some distance behind other factors identified as important. TNT referenced its developing employee value proposition to three of these elements that most aligned with its strategy. Prime of these was the quality of its leaders and the methods and depths of communication within the company.

Netflix created an open and inviting culture as its employee value proposition (EVP), as perhaps you would expect. It emphasizes that it values diversity in the workforce, and empowers employees with freedom and responsibility. It doesn’t have a vacation policy. Nor does it dictate on clothing, and its policy on expenses is simple: “Act in Netflix’s best interests.”

The company also encourages its people to consider the long-term view, with a strategy that engages employees in their own career development.

How can you profit from employee value proposition examples?

Excellent and sustainable employee value propositions do not come about by accident. Both TNT and Netflix took deliberate action to create a uniqueness of company brand that appeals to top talent and then retained them. Here are four steps to create your organisation’s unique EVP:

1.     Think Strategically

Whether purposefully or not, your organisation does have an EVP, even if it has not been formalized or strategized. In order to create a progressive EVP, think strategically and involve employees in discussions, as TNT did:

  • Instigate employee surveys
  • Align the EVP with organisational values
  • Communicate with employees

2.     Integrate the EVP strategy with leadership and rewards

With the EVP formalized, create a set of objectives to deliver on the promise of the EVP. The elements in the EVP will identify with employee competencies, human capital management practices, career path progression, and compensation.

3.     Communicate the EVP and deliver the internal brand

At this step, the EVP is fully aligned on a companywide basis, and it is now time for strong leadership to engage employees in an environment of mutual trust. It’s now time to discuss strategy in an open and transparent communication style, engaging employees in the process of creating and delivering an internal brand aimed at retaining top talent.

4.     Remain unique in the competitive marketplace

Even within organisations, different segments will have different needs and these can now be defined at micro-levels. Use this increased knowledge to be unique in the marketplace and gain an advantage over competitors.

To benefit from an EVP, take a page out of the TNT and Netflix books and:

  • understand your people;
  • define the value-added rewards based upon this knowledge;
  • deliver those rewards; and
  • communicate continuously

Contact Primeast today to discuss our Management Development Series, including our Energy Leadership Program, which helps develop high-performing managers into inspirational leaders.

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