Employee value proposition

Astheregioncontinuestogrowwithlocalorganizationsexpandingbeyondbordersandmultinationals beginningtoenterandexpandtheirbusinesses,thebattlefortalentisintensifying.Someindustriesare alreadyfacinghighattritionrates,whileothersarestrugglingtoincreasetheproportionofdiscretionary effortfromtheirworkforce.Innovationandglobalmegatrendslikedemographicshifts,rapid technologicaladvancement,powerofsocialmediaandenvironmentalchangesallpointtowardsthe needforagilityinbusinessmodelstoaccommodatethedynamisminthebusinessecosystem.This agilitycanonlybeachievedifwehavehighlymotivatedandcommittedagileworkforcewhichiswilling todomorethanjustsurvivalatworkplacethediscretionaryeffort. Someofthemostsuccessfulorganizationsgloballyhaveaveryhighquotientofdiscretionaryeffortthat theyachievefromtheirworkforce.Discretionaryeffortisafunctionofwillfuldisplayoftheright behaviorsthatarealignedtoachievingtheoverallbusinessobjectivesandstrategy.Aneffective performancemanagementframeworkdrivesandrewardstherightbehaviorssuperiorfinancialresults arethenjustamathematicaloutcome.Inshortthesesuccessfulorganizationshaveaverypowerful EmployeeValueProposition(EVP). AnEmployeeValueProposition(EVP)isaholisticframeworkthataddressesalltheaspirationsofahigh performingworkforce.Theseaspirationsofahighperformingworkforcecanbeclusteredin3pillars whichinturnaddress12 subfactorswhicharethe decisiondriversfor employmentchoiceand atthesametimehelp organizationsachieve largerbusinessobjectives. EVPmustbeunique, relevantandcompellingif itistoactasakeydriver oftalentattraction, performanceand retention. Organizationscannomoreaffordtothinkonlyofexistence,theyneedexcellenceforsurvival.Whenwe lookatwhatmakesorganizationsgreat,isitthefixedassets,theplantandmachinery,thetechnology? No,whilealloftheseareimportantandcontributeintheirownwaytoanorganizationssuccess,thereis moretoitthatmakesgoodorganizationsgreat,itisthepeople!ApeoplecentricEVPisthereforean indispensableenablertoachievethemuchneededcompetitiveedge. Attractingthetoptalentisprobablytheleastissue,retainingthemcertainlyiscomplex,andwhatisthe mostcriticalisprovidingtherightecosystemsforthishighperformingtoptalenttoperformtotheir ultimatepotentialandenhanceitfurtherfromtheirlastjob.

FromastrategicHRmanagementperspective,itiswidelyarguedthatawellframedEVPcanleadto betterorganizationalperformanceandanenhancedbottomline.Forits20122013GlobalTalent ManagementandRewardsStudy,TowersWatsonsurveyed1,605employers.Thestudyfoundthat organizationsthathad donethemostwork developingandexecuting theiremployeevalue propositionachieved superiorfinancial performanceover businesseswithless developedones.According toCorporateLeadership CouncilsResearch,awell thoughtthroughand executedEVPcanincrease thecommitmentofnew hiresbyupto29%,reduce newhirecompensation premiumsupto50%,andincreasethelikelihoodofemployeesactingasadvocatesfromanaverageof 24%to47%. Theemployeevaluepropositionneedstobecommunicatedtoallemployees,currentandprospective, andotherorganizationalstakeholders.Itmaybereflectedonthecompanyswebsite,job advertisementsandlettersextendingemploymentopportunities.Theextenttowhichemployees connectwithyourorganizationsEVPdeterminestheamountofdiscretionaryefforttheycommitto bringingthecompanyculture,mission,visionandvaluestolife. OnekeydifferentiationbetweenthetraditionalperformancemanagementsystemsandaholisticEVPis thatthetraditionalPMSseenintheregionareforcefullydrivingthebusinessobjectiveswithafocuson driversthatwillensureawillfulexecutionoftherightbehavior,whereasawellthoughtoutEVPensures thatthemajorityworkforcedisplaystherightbehaviorsreducingtheachievementoffinancialresultsto anaturalmathematicaloutcome. AtthesametimetheimportanceofsupportingtheEVPwiththerightstructureandleadershipis absolutelycritical.AnEVPframeworkjustlikeanyotherorganizationalstrategyisofnogoodifitisnot beingdrivenbytherightleadersandsupportbytherightprocesses&structures.Inaworldofhigh dynamismandambiguitytheneedformatureprocessesisfurtherenhancedtoaccommodateagility andavoidchaos. Articleby:MaheshPuniaPartnerandHeadofManagementConsulting,KPMG(mpunia@kpmg.co.ke) DavidGacheruHRConsulting,KPMG(dgacheru@kpmg.co.ke)

KPMGPeople&Changeconsultingpracticeispartofouroverallmanagementconsultingpracticeandis basedonasoundfoundationthatHRtransformationinanyorganizationcannotbeachievedin isolation,Itmustbedoneincollaborationwithstrategy,operationalunderstandingofspecificbusiness, IT&technologyinnovation,optimizationoffinancialfunctionsupportedbystrategicsourcing,seamless supplychainmanagement,deepunderstandingofcustomerlifecyclemanagementandproject management.

ForfurtherinformationpleasefeelfreetocontactDavidGacheruHRConsulting,KPMGat dgacheru@kpmg.co.ke