We are always talking about the profitability of a business as defined through the amount of sales that lead to cash flow. However what if you understood that nearly 60% of your costs are related to employees. Would you want to look at harnessing this cost and making it more effective for driving engagement and profitability?
One of the first things I look at when working with a business is their employee business value statement – or lack of one.
Human resource managers used to look at value statements as being employee centric. Many businesses have had employee value proposition statements or a set of offerings provided by a business in return for the skills, capabilities and experiences an employee brings to the business. An employee value proposition is typically a short sentence or two that communicates why an employee should choose to work with an employer. People also used to refer to these as statements as being an ’employer of choice’.
This is focused on the employee, but what about the business? The world is changing and we need to look at both the employee and employer needs so achieve workplace engagement, innovation and business success.
An employee business value is the identification of the ideal employee the business needs, rather than marketing the business towards an employee. This moves the focus to become business, organizationally and culturally centric.
Why You Need An Employee Business Value Statement?
All too often a business will hire an employee based on their application and interview, their ‘branding’, but later issues arise that cost money, time, effort and damage the culture. An employee business value statement is the fastest way for you to cut through the clutter, stand out, and get the attention of your ideal employee. It also sets the business standards, culture and employee engagement expectations.
How To Define An Employee Business Value
You need to look at your current workforce, strategic plans and future direction. Ask yourself honestly to identify the current employee issues. Are employees empowered to make decisions and take advantage of opportunities? Is there conflict from a lack of direction? Are employees complacent and lacking in motivation to drive profits? What does your business need to cut costs and drive profit?
Where Do You Start
There are many ways a business can approach developing the employee business value, but most fall into these four key steps:
- Step 1: Identify Themes
The first stage is to review all of the data you currently have available. This might include employee surveys, financial statistics and customer metrics. Look beyond the top line numbers – the real insights come from the comments of employees that provide context and allow you to understand the themes.
- Step 2. Look deeper
This is the most important step and should involve key stakeholders including senior management, HR, finance, marketing and most importantly existing and target employees. This stage should include interviews with key stakeholders and focus groups with employees to dive deeper into key themes identified in step one. What are your clients or customers telling you that is driving profit or causing costs to the business?
- Step 3. Develop your Statement
Now it is time to develop your employee business value statement. Based on all of the research and insights from steps one and two, you need to create your value statement that should be a simple overarching statement that will become the essence of your employee experience and employer expectations.
Importantly, you should also test your statement against your business strategies. If it does not support your future business outcomes then you need to revise it.
- Step 4. Deliver your message
Now it’s time to implement your employee business value statement across all employee experiences and business objectives. You should ensure that the message and intent of the employee business value statement is delivered at each of these stages in materials such as recruitment, performance development and strategic planning.
Can you give me an example?
Each business will have a different statement but it is important that it showcases the business, sets the expectations and engages employees.You know when you’ve got it right – you become a magnet for talent, and have engaged and motivated employees that are driving up profit.
Not for profit – “Working together with the community to foster strength and diversity”
SME business – “Driving profits together with innovation and commitment”
L’Oreal – “A thrilling experience, inspiring company and school of excellence”
Goldman Sachs – “At Goldman Sachs you will make an impact”
Do you need some help?
Do you see how a strong value proposition speaks directly to the ideal employee. It’s clear and easy to understand. And it communicates the core benefits the employee and the business want.
Now it’s time for you to create your own value proposition. If you need some help please contact us at firstname.lastname@example.org