Professional Documents
Culture Documents
11 Evp
11 Evp
Laury Sejen
Rewards
towerswatson.com
2
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
towerswatson.com
3
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Employees are
z Thankful to have a jjob in light
g
of past layoffs
z Recovering from no pay increase,
no/smaller bonus, reduced benefits and
furloughs
z Less likely to have promotion
opportunities
z Survivors who have made it through in
one piecebarely
Theme of Renewal
Theme of Security
towerswatson.com
4
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
towerswatson.com
5
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
What is sustainability?
z
programs
z
Addresses the broad range of elements of the deal that are important to
employees
Allows for flexibility to target key employee groups such as high performers,
critical-skill
i i l kill employees
l
and
d hi
high
h potentials
i l
towerswatson.com
6
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Employer Perspective
Employees
p y
connection with the EVP
determines their level of discretionary effort
in bringing the company mission, vision and
values to life.
A strategically
g
y designed
g
EVP attracts,,
retains, engages and motivates
employees to drive business success.
towerswatson.com
7
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Corporate Brand
This is who you are to your customers. Like any brand, it needs to be rooted in reality yet it can have some
aspirational attributes. It has both practical and emotional elements: If a corporate brand and EVP are misaligned, the
result can be employee cynicism which directly impacts productivity.
Total Rewards
Total
Total Rewards is a key element of your EVP.
EVP It represents the more tangible aspects of the EVP: compensation
and benefits.
towerswatson.com
8
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
While all organizations have an informal value proposition, only onethird globally have formalized their EVP
z
z
The other two-thirds indicate their EVP is implicit and has evolved over time
There is significant regional variation regarding formalization of EVP
towerswatson.com
9
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Rewards
recognition
and opportunity
towerswatson.com
Employers recognize the importance of base pay, challenging work and career
advancement opportunities
pp
in attracting
g employees
p y
to their firm
Employers have not made the connection between employee well-being (e.g.,
flexible scheduling, time off) and an employees decision to join an organization
towerswatson.com
11
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Employers are having difficulty attracting and retaining top talent, but not employees in
general
z
Critical Skill and Top Performers are reluctant to leave current employer due to uncertainty
Percentage of respondents reporting great or very great difficulty attracting or retaining employees.
towerswatson.com
12
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
towerswatson.com
13
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Reputation
p
(employee experience)
(customer experience)
Marketing doesnt control:
Company
Co
pa y reputation
eputat o
Employees
p oyees u
understanding
de sta d g o
of tthe
eb
brand
a d
Yet
People
p are the keyy factor in deliveringg the
Effective brand alignment requires Human Resources and Marketing to work together to develop
a fully integrated and aligned employee and customer experience
towerswatson.com
14
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
This sets a foundation for modifying the EVP by location and/or employee segment
Characteristics of EVP
towerswatson.com
15
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Customer Experience
z
Consistent communication
Typical
Performer
39%
12%
L
Laggard
d
M
Myopic
i
18%
31%
Poor
Good
Employee Experience
z
Performer
+15%
20%
Percentage of
Difference in
Market Value
10%
Typical
Company
-10%
-20%
Laggard
-30%
-18%
Myopic
5%
-5%
*Market Premium is the percent difference we found in market value based on brand alignment performance.
Market value is the stock price times the number of shares outstanding measured at the end of the fiscal year.
Towers Watson Brand Alignment Study, 2008.
towerswatson.com
17
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
towerswatson.com
18
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Key
Focus
Areas
Build
Segment
Workforce strategy
Research
Competitor scan
Segmentation
towerswatson.com
EVP
Definition
Implement
Gap
p
Analysis
Gaps and
recommendations
Framework and
straw model
Priorities
Socialization
Sociali
ation and
approvals
Deal
Improve
EVP and
Brand
Management
Creative
Final framework
Implementation
plan
Ongoing roles
Metrics
Creative
articulation and
approach
pp
((Brand))
19
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Nestl
Real
Possibilities.
Real
People.
towerswatson.com
20
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
z
z
This organization is its countrys top retailer, with nearly 50,000 employees in more than 1,000 stores
The organization has approximately $9 billion in annual revenue,
revenue with almost 50% of revenue coming
from a specific segment for which aggressive organic growth is planned
Additional growth is planned through a new line, as well
Each store is owned by an individual
The organization developed an EVP to communicate the deal in a compelling way so that new and
prospective professional employees could quickly see and understand the value of working in its
stores
Rapid growth and expansion of stores create a challenge because legally, a store cannot open
without a licensed professional on staff
Store/Associate owners must be licensed professionals intensifying the challenges associated with
finding attracting and retaining suitable licensed professionals with business acumen
finding,
A global shortage of this type of professional has increased the competitiveness of the market, so the
organization needed to differentiate itself by developing a compelling attraction and retention strategy
The organization engaged Towers Watson to create differentiated employee value propositions for
critical staff p
positions
Attracting and retaining top talent was critical to deliver business results
towerswatson.com
21
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
A five-step methodology was followed to synthesize company and industry research to develop
segmented value propositions
1. A series of interviews and focus groups with internal and external licensed professionals provided
key insights into what employees need and want from an employer in exchange for their skills and
time
2. EVP straw models were shared and vetted in focus groups across different geographical regions
to ensure that the EVP resonated with employees in the stakeholder groups
3. Once the value propositions were validated, focus turned to preparing and delivering a
communication plan and implementation road map
4. EVPs were made foundational to the overall people strategy, with gaps, recommendations and
quick wins identified for action
5. Branded leadership tools and manager toolkits were used to cascade the message
Customer satisfaction
Vacancy rates
towerswatson.com
22
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
z
z
towerswatson.com
23
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Questions?
z
laura.sejen@towerswatson.com
towerswatson.com
24
2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Laura Sejen
Rewards