Business Case for an Employment Value Proposition

CEB Corporate Leadership Council

© 2015 CEB. All rights reserved

Instructions
What it does:
This presentation helps you communicate the business case for an employment value proposition and the benefits of a managed
EVP.
How to Use it:
Adapt, then present the slides in this presentation as necessary to get buy-in for a well-managed employment value proposition,
describe your EVP challenges, or introduce the concept of an EVP to your team.
Instructions:
Slide 3 – Title Page
- Insert your organization’s name and date.

Slides 4-6 – What is an Employment Value Proposition?

- Agree upon a definition of EVP, and build a common understanding of the attributes that make up an EVP.

Slide 7-11– Benefits of an EVP

- Quantify the benefits that an EVP has for your organization in terms of attraction and retention.

Slide 12-16 – The Current State of Our EVP

- Describe the current state of your EVP and why your organization needs to invest in EVP improvements.

Slide 17-19 – Next Steps

- Outline your project plan for redesigning your EVP and effectively delivering and communicating the redesigned EVP.

2
© 2015 CEB. All rights reserved
Business Case for an Employment Value Proposition

[Organization Name]
[Date]

Insert your
organization’s
© 2015logo
CEB. All
hererights reserved
Roadmap

What Is an Benefits of an EVP The Current State: Next Steps

Employment Poor EVP
Value Management
Proposition?
• Definition of Employment
Value Proposition
• EVP Attributes

Insert your
organization’s 4
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Defining Employment Value Proposition

The Employment Value Five Key EVP Categories

Proposition (EVP) is the
set of attributes that the
labor market and
employees perceive as
the value they gain
through employment with
the organization.
Rewards Opportunity
• These attributes fall into five
categories: rewards,
opportunity, work, people,
and organization.

Organization Work

People

Source: CEB Employment Value Proposition Survey; CEB analysis.

Insert your
organization’s 5
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CEB’s EVP Framework
38 Attributes that Comprise an EVP

EVP
The set of attributes that the labor market and employees perceive as
the value they gain through employment in the organization

$
REWARDS OPPORTUNITY ORGANIZATION PEOPLE WORK
■ Compensation ■ Development ■ Customer Prestige ■ Camaraderie ■ Business Travel
■ Health Benefits Opportunity ■ Empowerment ■ Collegial Work ■ Innovative Work
■ Retirement Benefits ■ Future Career ■ Environmental Environment ■ Job–Interests
■ Vacation Opportunity Responsibility ■ Coworker Quality Alignment
■ Growth Rate ■ Ethics–Integrity ■ Manager Quality ■ Level of Impact
■ Meritocracy ■ Formality of Work ■ People Management ■ Location
■ Stability Environment ■ Senior Leadership ■ Recognition
■ “Great Employer” Reputation ■ Work–Life Balance
Recognition
■ Inclusion/Diversity
■ Industry Desirability
■ Market Position
■ Organization Size
■ Product/Service
Quality
■ Respect
■ Risk Taking
■ Social Responsibility
■ Technology Level
■ Well-Known Product
Source: CEB Employment Value Proposition Survey; CEB analysis.
Brand
Insert your
organization’s 6
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Roadmap

What Is an Benefits of an The Current State: Next Steps

Employment Value EVP Poor EVP
Proposition? Management

• Increases Candidate
Attraction
• Reduces Compensation
Costs
• Drives Commitment

Insert your
organization’s 7
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 A Managed EVP Improves Candidate Attraction

Constructing and Benefit 1:

delivering an effective Enables organizations to reach 50% deeper into Note: Customize with your own
EVP allows us to source the labor market to attract passive candidates. data where possible.
deeper in the labor
market by increasing our
access to passive
candidates.
Percentage of Employees by Degree of Job Search Behavior, Global
• Potential candidates are Employed Labor Force
almost twice as likely to be 55.0%
passive than active.
45.7%
43.1%

35.0%
29.7% 30.1%

27.3%
24.2%

15.0%
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015

Passive Neutral Active

Source: CEB Employment Value Proposition Survey; CEB 2012–2015 Global Labor Market Survey; CEB analysis.

Insert your
organization’s 8
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A Managed EVP Decreases Compensation Costs

When candidates in the

Benefit 2:
labor market view an Note: Customize with your own
Reduces the compensation premium needed to
organization’s EVP as data where possible.
hire by 50%.
attractive, they demand
less of a compensation
premium when deciding
to join.

• Employees expect an 8.5%

total pay increase to switch Switching Premiums, Global Employed Labor Force
jobs. 11.0%

10.0%

9.3%

9.0%
8.5%

8.0%

7.0%
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015

Source: CEB Employment Value Proposition Survey; CEB 2012–2015 Global Labor Market Survey; CEB analysis.
Note: Switching premium expectations measure the percent change in total compensation an employee would expect to
receive when switching to a new employer.
Insert your
organization’s 9
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A Managed EVP Drives Employee Commitment

Employee commitment
Benefit 3:
increases with a well- Note: Customize with your own
Decreases annual employee turnover by 69%.
managed EVP, resulting data where possible.
in a decrease in
employee turnover.

• Only about one third of

employees express high
intent to stay with their
current organization. Engagement Levels, Global Employed Labor Force
40.0%

35.1%
32.3%

30.0%

20.2%
20.0%
17.5%

10.0%
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015

Intent to Stay Discretionary Effort

Source: CEB Employment Value Proposition Survey; CEB 2012–2015 Global Labor Market Survey; CEB analysis.

Insert your
organization’s 10
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A Strong EVP Impacts the Bottom Line

Delivering a strong EVP Compensation Premium Annual Turnover

The Five EVP Categories
can result in positive Benefit
Required3: to Hire Employees
Decreases annual employee turnover by 69%.
financial firm impact.
30% 30%
• A strong EVP can save a
moderately sized
organization nearly 21%
$13 million per year. 16%
Rewards
Rewards Work
Work
15% 15%
11%

Note: Customize with your own People

People Organization
Organization 5%
data where possible.

0% 0%
Poor EVP Strong EVP Poor EVP Strong EVP
Opportunity Delivery Delivery
Delivery Delivery

Attraction Savings Turnover Cost Savings

$2,600,000 per Year $10,250,000 per Year

The amount an organization that hires 500 The amount an organization with 5,000 employees
employees per year with an average salary of with an average salary of $50,000 would save on
$50,000 would save in compensation premium due to turnover costs due to their strong EVP
their strong and attractive EVP

Insert your Source: CEB Employment Value Proposition Survey; CEB analysis.

organization’s 11
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Roadmap

What Is an Benefits of an EVP The Current State Next Steps

Employment Value of our EVP
Proposition?

• Misalignment with
Employee Preferences
• Misalignment with
Business Strategy
• Poor Differentiation of the
EVP
• Failure to Deliver on EVP
Attributes

Insert your
organization’s 12
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 Misalignment with EVP Preferences of Critical Talent

Our EVP overemphasizes
unimportant
characteristics and
underemphasizes critical
attributes.
Attributes our EVP Emphasizes EVP Preferences of Critical Talent
1. [Insert current elements of your EVP.] 1. [Insert the EVP attributes your top talent cares
most about.]
2. 2.

• There is a disconnect
between what the labor 3. 3.
market prefers and the
attributes in our current EVP. 4. 4.

5. 5.

6. 6.

7. 7.
Note: Delete this slide if
misalignment with candidate
preferences is not an issue with Note: Use CEB’s
your current EVP. EVP Design Center to complete
the chart above.

Insert your
organization’s 13
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 EVP Does Not Reflect Business Strategy
Due to recent
organizational changes,
our EVP no longer aligns
with business strategy.
Note: Delete this slide if
misalignment with business
strategy is not an issue with
your current EVP.
Insert your
organization’s
logo here
EVP Alignment with Business Strategy
Key Business Goals
Example: Drive top-line growth
through higher share of wallet from
key accounts.
14
Primary Strategies Comments on EVP Alignment
 Example: Poor alignment—
 Example: Drive product
EVP does not highlight the
innovation in surgical gown
innovative nature of work our
products.
company offers.
 Example: Good alignment—
 Example: Promote energy- Our EVP highlights our
saving products at low prices. employees’ sense of
environmental responsibility.
© 2015 CEB. All rights reserved
 Our EVP is Not Competitively Differentiated

There is little awareness EVP Attributes Strength Compared to Talent Competitors

of our core EVP
attributes in the labor
market due to a lack of
differentiation with talent
competitors. Insert on this page your final graph from the Competitor Dashboard tab of the EVP
Competitive Differentiator tool (see task 3.4 of the Ignition Guide).

Note: Delete this slide if

competitive differentiation is not
an issue with your current EVP.

Insert your
organization’s 15
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 EVP Does Not Match Employee Reality

Employees do not
Delivery on Core EVP Attributes
believe our current EVP
aligns with the reality of
working at our
organization.
Insert on this page results from the Candidate EVP Survey and Employee EVP Survey (see
task 3.2 of the Ignition Guide).

Note: Delete this slide if

misalignment with employee
reality is not an issue with your
current EVP.

Insert your
organization’s 16
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Roadmap

What Is an Benefits of an EVP The Current State: Next Steps

Employment Value Poor EVP
Proposition? Management

• EVP Rebuilding
• EVP Management

Insert your
organization’s 17
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 Note: Update this page based
on the overall EVP strategy you
are proposing.

Proposal: An EVP that Delivers Competitive Advantage

Talent Competitor EVP Position
Creating a competitive
advantage requires Well Positioned Poorly Positioned
delivering and
communicating well Competitive Parity Competitive Advantage
against attributes where

Well Positioned
competitors Organizations need to Organizations need to
ensure that they are at ensure they are effectively
underperform: poor EVP equal levels, both in terms communicating these

Our Organization EVP Position

awareness among of delivery and attributes.
candidates and poor EVP communication, with their
delivery by talent competitors on these
attributes.
organizations.

Competitive Disadvantage Competitive Parity

• The competitive advantage
which attributes can provide Organizations need to Organizations need to
Poorly Positioned

in the labor market varies improve their performance ensure that they are at
significantly based on on these attributes and then equal levels, both in terms
differences in competitor communicate at the same of delivery and
delivery and organization level as talent competitors. communication, with their
delivery of the attribute. talent competitors on these
attributes.

Insert your Source: CEB Employment Value Proposition Survey; CEB analysis.

organization’s 18
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 Note: Customize these stages
as necessary for your
organization’s project plan.
EVP and Employment Branding Project Plan

Process Map

I II III IV V
Phases Planning Delivering on Employment Monitoring
Designing the EVP
the EVP Branding

Steps ■ Assemble support. ■ Gather intelligence. ■ Align HR investments ■ Segment the ■ Measure EVP and
with the EVP. employment brand. branding effectiveness.
■ Set goals. ■ Prioritize
EVP attributes. ■ Deliver the EVP across the ■ Create brand ■ Govern and refine the
employee life cycle. messages. EVP and brand.
■ Segment
EVP attributes. ■ Communicate ■ Communicate the
the EVP to employees. brand to external
audiences.

Typical 1–3 months 6–9 months Ongoing

12–24 months 12–24 months
Timeline

Note: Phases III and IV can be completed simultaneously if resources allow.

Source: CEB analysis.

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organization’s 19
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Thank You

© 2015 CEB. All rights reserved