the coming employee wave
TRANSCRIPT
There are three types of
psychological attachment that
people feel towards organizations.
Organizational Commitment
These types of employees stay out
of feelings of obligation; for some
reason, they feel like they should.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
Employees stay because they “ought to”
These types of employees stay because the cost of
leaving is too great. These costs could be
economic, but also include things like social costs.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
Employees stay because they “have to”
These types of employees stay because
they strongly identify with organizational
goals and feel a positive emotional
attachment to the organization.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
CommitmentEmployees stay because they “want to”
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
In times of economic downturn,
organizations can get good talent for cheap
prices because a lack of options and a tight
budget build continuance commitment.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
That’s what has happened recently.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
Except that people are starting to shift
away from continuance commitment as
the economy climbs out of this trough.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
Employees feeling only continuance commitment
are finding that they are more mobile now than
they were two or three years ago.
Organizational Commitment
Normative
Commitment
Continuance
Commitment
Affective
Commitment
And they’re leaving.
Organizational Commitment
In fact, in October of 2010, the number
of employees terminated through
layoffs and discharges was smaller
than the number that voluntarily quit.
Employees
terminated
through
layoffs and
discharges
Employees that
voluntarily quit
Organizational Commitment
Threat
What can we do
to keep our
best people
from leaving?
Opportunity
What can we do
to attract the
best people
from elsewhere?
We expect people to pay their
dues and work their way up the
line before they get the top
jobs and big bucks.
We think of our people as
volunteers and know we have
to try to deliver on their dreams
now if we are to keep them.
We have a strong value
proposition that attracts
customers.
We also have a distinctive
employee value proposition
that attracts and retains
talented people.
The Old Way The New Way
Employee Value Proposition
We expect people to pay their
dues and work their way up the
line before they get the top
jobs and big bucks.
We think of our people as
volunteers and know we have
to try to deliver on their dreams
now if we are to keep them.
We have a strong value
proposition that attracts
customers.
We also have a distinctive
employee value proposition
that attracts and retains
talented people.
The Old Way The New Way
Employee Value Proposition
This “new way” is essential to attracting
and retaining talented people.
As part of the hiring process,
employees have traditionally had to
present what you could think of as an
organizational value proposition.
Employee Value Proposition
Employee Value Proposition
References
These documents, and others
like them, are all ways to say,
“You should hire me because…”
You have to consider the
value proposition that you
offer to potential employees.
Employee Value Proposition
This Employee Value Proposition
(EVP), introduced in The War for
Talent by McKinsey & Co.,
originally included four elements.
Employee Value Proposition
With the rise of the current generation,
a fifth is becoming an equal priority.
Employee Value Proposition
Employee Value Proposition
Exciting Work Great Company
Ample Rewards Growth and Development
Work/Life Balance
Employee Value Proposition
Exciting Work Great Company
Ample Rewards Growth and Development
Work/Life Balance
(The new one.)
Employee Value Proposition
Exciting Work
Challenge, Innovation, Passion
Great Company
Ample Rewards Growth and Development
Work/Life Balance
People want challenging jobs that they can feel
passionate about doing: jobs that are
demanding, stretching, and full of requirements
that are interesting and worthwhile.
Employee Value Proposition
Exciting Work
Challenge, Innovation, Passion
Great Company
Management, Culture, Leadership
Ample Rewards Growth and Development
Work/Life Balance
People want to work for organizations
that are well managed, practice
admirable cultures and values, and
have great leaders.
Employee Value Proposition
Exciting Work
Challenge, Innovation, Passion
Great Company
Management, Culture, Leadership
Ample Rewards Growth and Development
Work/Life Balance
Regarding culture, two aspects are
especially important: (1) a strong
emphasis on performance, and (2)
an open and trusting environment.
Employee Value Proposition
Exciting Work
Challenge, Innovation, Passion
Great Company
Culture, Leadership, Management
Ample Rewards
Pay-for-Performance, Market Equity
Growth and Development
Work/Life Balance
People want to be compensated equal to the value
they create and the opportunity cost of choosing
their organization. They also want to be recognized
and valued for their individual contributions.
Employee Value Proposition
Exciting Work
Challenge, Innovation, Passion
Great Company
Culture, Leadership, Management
Ample Rewards
Pay-for-Performance, Market Equity
Growth and Development
Feedback, Mentoring, Opportunities
Work/Life Balance
People expect their organization to
help them develop skills. Today,
people realize that their only real job
security is the skill set they posses.
Employee Value Proposition
Exciting Work
Challenge, Innovation, Passion
Great Company
Culture, Leadership, Management
Ample Rewards
Pay-for-Performance, Market Equity
Growth and Development
Feedback, Mentoring, Opportunities
Work/Life Balance
Many individuals, particularly
Millennials, crave work-life balance.
Employee Value Proposition
Work/Life Balance
Exciting Work
Challenge, Innovation, Passion
Great Company
Management, Culture, Leadership
Ample Rewards
Pay-for-Performance, Market Equity
Growth and Development
Feedback, Mentoring, Opportunities
Articulate a Purpose
Market the Opportunity
Give Undivided Attention
Communicate Considerately
Set Up Listening Posts
Articulate a Purpose
Market the Opportunity
Give Undivided Attention
Communicate Considerately
Set Up Listening Posts
They match really well with
The War for Talent’s EVP
concept. If you’re interested in
these, look up Picoult’s article.
Articulate a Purpose
Market the Opportunity
Give Undivided Attention
Communicate Considerately
Set Up Listening Posts
Exciting Work
Exciting WorkGreat
Company
Growth and
Development
Ample
Rewards
Work/Life
Balance
Growth and
Development
Great
Company
Great
Company
People can feel normative, continuance, or affective commitment
There is both a threat and opportunity regarding the acquisition of talent
The old way of thinking made sure employees paid their “dues”
The new way of thinking considers their dreams and desires for opportunity
The old way of thinking considered marketing only to customers
The new way of thinking suggests crafting an Employee Value Proposition
Employees value exciting work, a great company, ample rewards, growth and
development, and work/life balance
An EVP can help you take advantage of the oncoming tide of potential employees
Consider how you measure up in each area of the EVP
The Coming Employee Wave
The Tug-of-War for Talent
in our Post-Recession Economy
Daniel Larsen - http://www.linkedin.com/pub/daniel-larsen/19/8b8/910