Source of image
In the world of business, we're often focused on our customer value proposition. What makes our products or services stand out in the marketplace? How do we draw the right customers at the right price?
The unfortunate thing, however, is that we often neglect to pay attention to the most important stakeholders in our organisation. Namely, our employees.
With a shrinking talent pool and a tight labour market, organisations need to focus on what they bring to the table to attract, retain and motivate their staff. A good way to do this is to focus on enhancing their Employee Value Proposition. This was defined by Brett Minchington (2005) as follows (source: Wikipedia):
"...a set of associations and offerings provided by an organisation in return for the skills, capabilities and experiences an employee brings to the organisation."
To offer a compelling value proposition to current and future employees, an organisation should consider its Employer Brand and how these are communicated internally. Quoting from Wikipedia, this can be understood as the...
"sum of a company’s efforts to communicate to existing and prospective staff what makes it a desirable place to work, and the active management of a company’s image as seen through the eyes of its associates and potential hires."
While ensuring that it builds up the right image in the eyes of its workers, companies should also consider the comprehensive package that it can offer to team members. In doing so, Sibson Consulting's framework for total rewards may be useful as a point of reference as seen below:
Courtesy of Sibson Consulting
While most organisations focus on the Compensation and Benefits which a new or seasoned hire would enjoy working with them, they often place less emphasis on developing the other three dimensions of Work Content, Career and Affiliation.
This isn't unexpected. Doing so requires extensive effort to map out the growth trajectories of every employee, match individual aspiration with organisational needs, and build a positive organisational culture.
To succeed, however, organisations must embrace a more holistic approach to employee attraction, retention and motivation. They need to develop a strong set of vision, mission and values which steer and guide all employees towards a common direction, and build a climate of collaboration, camaraderie and trust. They need to also look individually at how each and every valued team member is progressing, how she/he is being valued and groomed, and whether she/he finds fulfillment, joy and meaning in the work she/he does.
Building a robust organisation doesn't end with hiring the right people for the right jobs. It comes with ensuring that these individuals grow along with the organisation. It also comes with understanding the various social and psychological triggers that can motivate or demotivate one's workforce.
Employees are not just headcounts - they are passionate individuals with views, thoughts and feelings. By paying attention to their Employee Value Proposition, organisations can greatly increase their chances of winning in the race for the brightest and the best. As legendary business leader Jack Welch has shared: "The team with the best players wins."
Labels: companies, employee value proposition, human resource management, leadership, management, organisational development, organisational management