The employee value proposition redefined
| Pages | 3-3 |
| Date | 01 May 2005 |
| DOI | https://doi.org/10.1108/14754390580000792 |
| Published date | 01 May 2005 |
| Author | Andrew N. Bell |
| Subject Matter | HR & organizational behaviour |
3
Volume 4 Issue 4 May/June 2005
STRATEGIC COMMENTARY
,
Thought leaders share their views on the HR profession and
its direction for the future
DEPARTMENTS AT A GLANCE
STRATEGIC COMMENTARY
,
e-HR
,
HOW TO…
,
PRACTITIONER PROFILE
METRICS
HR AT WORK
REWARDS
,
RESEARCH AND RESULTS
,
,
,
,
A
key differentiator of success for
organizations competing to
recruit, develop, inspire and
retain talented people is their employee
value proposition (EVP). But what is best
practice in developing a convincing,
credible and competitive EVP that’s
responsive to the expectations of these
valuable people?
While remuneration is important –
though sometimes over-emphasized
compared to other elements – it’s most
worthwhile to focus on non-financial
factors, such as:
•company attractiveness;
•responsibility – corporate conduct and
ethics;
•respect – diversity and inclusion;
•work-life balance; and
•opportunities – for personal and
professional growth.
As companies become increasingly
competitive in seeking top talent, the
first two elements have emerged as key
differentiators. This piece will examine
these two key ingredients of the EVP.
Company attractiveness
Companies involved in strongly branded
(e.g., luxury goods, mobile phones) or
desirable business sectors (e.g., finance,
airlines) have a potential advantage in
being seen as an attractive employer.
This may not necessarily mean they are
better places to work, but the personal
pride and social status deriving from
working for such a company can be an
important driver.
It’s also interesting to consider an
example of how a company with an
initially low public profile and in a sector
that often has negative perceptions has
addressed this component of the EVP.
Developing attractiveness: a case study
Esquel Group is part of the apparel
industry. Formed in 1977, it now
employs 47,000 people, mostly in Asia-
Pacific with about half in China. Esquel
has actively sought to establish positive
perceptions through building a business
based on growth, quality, productivity,
best management practices, technology,
innovation and corporate citizenship. Its
core strategy is based on a vision of “A
company of fun people serving happy
customers,” and creating an “eCulture”:
•Ethics – be a good citizen and a good
employer.
•Environment – cherish the environment.
•Exploration – explore and embrace
innovative solutions.
•Excellence – reduce wastage through
functional excellence.
•Education – dare to err but quick to
learn.
Esquel’s internal surveys demonstrate a
high awareness among employees of
the eCulture and particular progress has
been made in the areas of increased
Andrew Bell
is The Conference Board’s
program director for the Asia-
Pacific HR Council and a Singapore-based consultant
in people strategies for business and psychometric
instruments. He is also a former senior VP of HR at
Unilever.See www.hc.com.sg for more information.
productivity, diversity and learning and
talent depth.
Improving company attractiveness is
something that organizations can invest
in and develop. Some companies and
sectors start with an advantage, but any
company can successfully develop its
attractiveness and, as a consequence,
improve its EVP.
Corporate responsibility and ethics
There are numerous drivers for improving
a company’s reputation with respect to
corporate conduct and ethics. Given that
people may leave organizations if their
personal values and principles are
compromised by the behavior of the
company or individual leaders, it’s clearly
a major contributor to the EVP.
There are many parallels between
corporate governance and company
attractiveness. Organizations that
address the former seriously and
sincerely will be contributing to a more
positive attractiveness profile.
Clearly, responsibility for crafting the
EVP doesn’t uniquely belong to the HR
function and neither is there a singular
model of best practice. Indeed, the best
EVPs flow from strong company values,
principles and strategic objectives.
However, this is an area where HR can
make a key contribution and establish a
stronger strategic and added-value role,
rather than remaining in the safe
harbor of transactional expertise.
The employee value
proposition redefined
Andrew N. Bell considers the role of company reputation in creating a
convincing, credible and competitive employee value proposition.
© Melcrum Publishing Ltd. 2005 For more information visit www.melcrum.com or e-mail info@melcrum.com
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