GLS Conference 2: Beyond Measurements: Enabling … · How does your organisational purpose affect...

GLS Conference 2:

Beyond Measurements: Creating An Effective Social Value Framework

26 Sep 2017 • 8.30am – 5.30pm • Raffles Town Club

Funded by Organised bySupported by

Enabling Attraction, Motivation and Retention of Talent

Agenda

Overview of People Strategy1

Implementation of EVP3

Evaluation of success4

Designing an EVP 2

Wrap up and Q&A5

Recap

What is an EVP?

An Employee Value Proposition (EVP) defines and communicates the attributes of employment that an organisation delivers to its current and targeted

workforce.

Commitment to stakeholders

Mid-careeristsVolunteers StudentsSocial Service Professionals

Full-time employees

Contingent employees

Does your organisation have a brand that attracts top talent?

Building blocks of

employer brand

Value

proposition

Marketing &

social mediaTalent pools

Competition

Companies who invest in their brand internally

have 3.9x’s higher

earnings per share compared to those in the same industry

1 in 4 companies have developed an opportunity brand strategy

Employer Brand

56% of professionals rank talent brand as a top factor when picking a job

67% of job seekers said they’d accept a lower salary if the company had exceptionally positive reviews online

78% of jobseekers

say ratings and reviews from current employees are influential when deciding where to work

Top Talent

What do you plan to invest in your branding strategy this year?

60% of companies claim that they plan to implement social recruiting strategies within the next year, very few are technologically prepared to support that strategy

Understanding your brand:►What percentage of your employees would

recommend the company to their friends?►What are the components of your talent brand?►How is your brand perceived in the market?►Compared to competitors?

Of CEOs are concerned about their employer brand to acquire the right talent360%

Purpose drives Social Purpose Entities

PURPOSESocial Purpose Entities are in a unique position where purpose drives their work.

The work done at these organisations directly links to purpose.

Simon Sinek: How great Leaders Inspire Action

Designing an EVP

1. Lay the foundation

2.

Build the evidence base

3. Design the EVP

4. Implement and maintainthe EVP

1. LAY THE FOUNDATION

Key Objectives

Establish the principles to support the EVP

Establish the employment elements to be considered for including in EVP

12

Live Poll

Qn. Think of your own reasons why you have joined/stayed with your organisation. Which of

these 5 employment elements is most important to you?

Live Poll

Qn. What do you think is the EVP of your organisation, to you?

1. Lay the Foundation

Rewards

► Compensation

► Benefits

► Recognition

Opportunity

► Career management

► Speed of progression

► Promotion

► Training and development

► Job security

Organisation

► Communication

► Diversity

► Empowerment

► Market position

► Fairness and ethics

► Organisation size

► Technology

People

► Collegial work environment

► Co-worker quality

► Leader quality

► People management

► Senior leadership

Work

► Travel

► Innovation

► Work environment

► Resources

► Job impact

► Job match

► Work-Life Balance

► Accommodation

► Job Satisfaction

Consider the following employment elements that will be relevant for your unique EVP

2. BUILD THE EVIDENCE BASE

Key Objectives

Collect evidence through surveys, focus groups, etc. to understand:

• People preferences

• What the organisation is currently doing well

• The unique characteristics of the organisation

• The competitive environment

1

2. Build the Evidence Base

Employment

attributeDefinition

What importance do you place on this

when choosing to work here?

(please circle, 1 = poor 3= neutral 5 =

excellent)

How well is Organisation XYZ doing?


excellent)

Collegial work

environment Team orientated and collaborative 1 2 3 4 5 1 2 3 4 5

Co-worker quality Quality of the co-workers 1 2 3 4 5 1 2 3 4 5

Leader quality Quality of the leaders 1 2 3 4 5 1 2 3 4 5

People management Reputation for managing people 1 2 3 4 5 1 2 3 4 5

Capture what is important to employeesA) Survey

B) People Opinion Survey C) Social Media D) Focus Group

2. Build the Evidence Base

Understand what is important to VolunteersA) Survey

B) Volunteer Opinion Survey C) Social Media D) Focus Group

Employment

attributeDefinition

What importance do you place on this

when choosing to volunteer here?


excellent)

How well is Organisation XYZ doing?


excellent)

Purpose Purpose of the organisation 1 2 3 4 5 1 2 3 4 5

Team environment Team orientated and collaborative 1 2 3 4 5 1 2 3 4 5

Meaningful workSatisfaction from the impact you bring

to beneficiaries 1 2 3 4 5 1 2 3 4 5

Opportunity Opportunity for personal development 1 2 3 4 5 1 2 3 4 5

Volunteer

partnership

How well the organisation partners

with volunteers 1 2 3 4 5 1 2 3 4 5

3. DESIGN AN EVP

Key Objectives

Design an EVP which takes into account what is important to people, what the organisationcan deliver and unique characteristics

Consideration is given to brand alignment

1

2

3. Design an EVP

Key questions to ask when designing EVP

3. The unique characteristics of the organisation

2. The most important

employment attributes

1. The employment attributes the organisation

can confidently deliver

► What attributes of employment do your employees value?

► How does this change by employee profile?

► What are the unique characteristics of your organisation?

► How is it valuable to employees?

► What is your organisation doing well now?

► What is your organisation committed to deliver?

► What is the purpose your organisation is driving?

► How does your organisational purpose affect the following elements?

Key questions to ask under each employment elements when analysing/

developing an EVP

Is there an EVP about rewards offered within the organisation?

Does the EVP clearly communicate how the employee performance is rewarded?

Does the EVP clearly communicates the benefits ( tangible and non-tangible) offered to employees?

Is there an EVP about the potential opportunity for employees?

Does the EVP clearly communicate the organisation’s people strategy on developing and progressing its people?

Does the EVP clearly communicates how the employees can progress in their career?

Does the EVP clearly communicate how the employees are developed and trained?

Does the EVP articulate how the organisation is growing in a way that’s delivering their purpose and sustaining their future?

Is there an EVP about the general traits/benefits of working within the organisation?

Does it clearly communicate how the organisation differentiates itself from other organisations?

Does it clearly articulate the purpose driven employees they are looking for?

Is there an EVP about the people philosophy of the organisation?

Does the EVP clearly communicate what type of people it is looking for?

Does it clearly communicate the senior leadership, people management style and or the people trait/quality in the organisation?

Does the EVP articulate the purpose that the organisation is trying to drive?

Is there an EVP about the unique work requirement/ traits?

Does the EVP communicate how is it like working within the organisation?

Does the EVP communicate why people work for the organisation?

RewardsOpportunityOrganisationPeople Work

EVP: Talk to anyone at EY and they’ll tell you what a rewarding place it is to work.Purpose:Building a Better Working World

Working with tomorrow’s business leadersAt EY, you’ll be working with some of tomorrow’s global leaders, today.

A truly global perspectiveOur unique global structure provides our high-performing teams to respond faster and deliver more consistent quality of service to clients around the world.

We’ll involve you in our business –and in the wider communityAt EY we have a strong commitment to involvement and teamwork.

Support that lasts a lifetimeIt’s a career which offers the chance to build unparalleled networks and draw upon truly first-class development opportunities.

Career development: we’ll help you get where you want to goAt EY, you’ll be provided with the experiences, training and coaching you need to achieve your potential.

Inclusiveness: our differences are an assetRespect, integrity and teamwork define the way we work.

EY’s EVP Elements:

PeopleOrganisation

WorkOpportunity

We offer a unique “Kampung Spirit”, where staff are valued and patients are cared for, with a focus on building meaningful relationships

Opportunitieswe create ongoing opportunities for learning, growth and development to meet one another’s needs;

Equity we have a fair, equitable reward and recognition system that recognises our varied talents

Respect we respect one another as professionals and value each other’s contributions

Quality of Lifewe build work-life quality and balance, in a safe work environment with adequate resources and even distribution of work.

Clarity We set clear goals/directions and work together to achieve them;

Dialogue We dialogue with and give constructive feedback to one another and our supervisors in a safe and dignified environment;

EVP for a Leading National Hospital Elements:

PeopleOrganisation

WorkOpportunity

Reward

EVP for an international fast food chain Elements:

PeopleOrganisation

WorkOpportunity

Reward

Our People Vision is for our people to feel valued and proud to work here.

Respect and Recognition Employees are respected, valued and empowered. Employees are recognised and rewarded in many ways. Great rewards for outstanding work include a variety of exciting “Once in a Lifetime Opportunities.”

Learning, Development and Personal Growth We provide the essential training which gives our employees the skills to further their careers. We invests millions annually on training, crew, managers and corporate employees.

Global Opportunities McDonald's operates in 119 countries around the world, and many of our crew find themselves working in a variety of destinations around the world.

Competitive Pay and Benefits Compensation packages include benefits that employees tell us they value. Employees receive regular performance and wage reviews.

Flexible SchedulesWe offer flexible schedules to help you choose hours that best fit your life.

Now it’s your turn!

• Draft your own EVP statements, using your activity pack as a guide

Live Poll

Qn. Share your EVP statements

4. IMPLEMENT AND SUSTAIN EVP

Key Objectives

Assign ownership and resources to ensure that policy & processes are constantly aligned to EVP

Market and communicate the EVP

1

2Review the EVP3

Key Aspects of Implementation

1 2 3Translating EVP across the HR value chain

EVP Branding and Organisationculture

Evaluate, maintain and update your EVP

Translating an EVP across HR value chain

… starts at the beginning of the employee life cycle, is reiterated across other HR processes, and communicated clearly at all times.

1

Translating an EVP –Recruitment

Include the EVP when advertising for job

positions. Do mention the opportunities offered to

employees in the organisation

Develop and ask targeted questions during interview to

understand whether the candidate

understands and is able to identify with

the values of the organisation. If

possible, provide feedback even if the

candidate is not selected

Include key behaviors and

values which match and reflect your organisation’s

value into the job descriptions

Reiterate key behaviors that align

the selected candidate to the organisation’s

values during the offer and acceptance period

Include a discussion on the organisation’s EVP as

part of the orientation program curriculum

1

Translating an EVP –Training & Development

► Include processes in place to ensure that employees have access to training and development opportunities that will allow them to fulfill their career aspirations in accordance to EVP

► Include feedback channel for employees to provide feedback on the process of training and development evaluation

► Include EVP in coaching employees to “own” their own training and development

1

Translating an EVP –Career

► Include RC Values and DNA in career conversation to see how it correlates with employee career progression

► Include EVP in communicating career opportunities to employees and ensure that employees are communicated clearly and understand what is expected of them to move to the next level in their career

1

Translating an EVP – Performance Management & Rewards

► Include how employee is living Company Values and DNA when providing ongoing feedback

► Include discussion of Company Values and DNA in development discussions to see how it correlates with employee personal needs

► Includes required behavioral competencies and skills that are aligned to Company Values and DNA

► Communicate measurement mechanism of the behavioral competencies and skills clearly

► Includes Company Values and DNA demonstration to be one of the criteria when rewarding good performance

1

Rewards Design in Attraction, Retention and Motivation of Top

Performing Employees

AttractMarket CompetitiveMarket Competitive

RetainMarket CompetitiveMarket Competitive + Paying for Performance

MotivateMarket CompetitivePaying for Performance

1

AN INTRODUCTION TO TOTAL COMPENSATION

What is Total Compensation?

The term ‘Total Compensation’ is used to describe all forms of monetary payments to an employee, including base pay as well as incentives.

Defining Compensation

Basic Pay - fixed monthly pay

Allowances* - cash based components: Car Allowance Mobile Phone Allowance Child Education Allowance

Total Guaranteed Cash: Basic Pay + Monetized value of cash allowances

Statutory: CPF

Fixed Pay

Variable Pay:

I. Short Term Incentives*

Performance Pay Annual Bonus Sales Incentive Profit Sharing

(short term)II. Long Term

Incentives* Retention Bonus Deferred Pay

Variable Pay

70-93% 7–30%

% varies based on pay philosophy

* Illustrative list of sub-elements

Elements of Total Compensation:

Defining Compensation

Fixed Pay Variable Pay

Impa

ct

Attraction of talent

Ensure that a fair structure is in place

Ensure the structure is simple to understand / compare

Statutory adherence, ensure no undue exposure to the organisation and employees

Meet/exceed near term business goals

Ensure that the near term goals of the company are met

Short term plans help drive performance

Attract and retain talent

Ensure that good performance and talent is recognised and rewarded

Purpose of various Total Compensation elements:

BUILDING SALARY STRUCTURES: PART I

What is the purpose of salary structures?

Salary structures provide a framework for fair and consistent pay policies; they help monitor and control the implemented pay practices and demonstrate

possible pay opportunities to the employees.

Live Poll

Qn. How would you rate the salary structures in your organisations?

Live Poll

Qn. Can a person in a lower job level earn more than a person in a higher job level?

Live Poll

Qn. What is more important when design salary structures: Internal Equity or External

Competitiveness?

Introducing Salary Structures

A salary structure refers to the range of pay rates for different work or skills within a single organisation. The number of levels, the differentials in pay between levels, and the criteria used to determine those differences describe the structure.

An ideal salary structure…

Clarifies the external (market) and internal

(organisation) value for each job

Quantifies compensation costs and enables sound

budget decisions

Aligns compensation strategy to organisational

goals

Enables the organisation to reward employees fairly

Allows ease of administration

1 2 3 54Define Jobs

Categorise Jobs

ValueJobs

Build Salary Ranges

Review Salary Ranges

Five-step process of designing a salary structure

Why should organisations define jobs?

Defining jobs is a way of expressing what the organisation needs in terms of people and expertise. This information forms the backdrop for HR strategies and

operational decisions.

1

Defining Jobs

A job description is a document shared between an employer and job applicants/ employees to communicate the following areas of expectation:

• Key roles and responsibilities

• Experience

• Required skills

• Behaviours

1

Defining Jobs

There are a number of publicly available competency frameworks that provide guidelines on the roles and responsibilities of different roles within the social service sector for organisations to adapt, such as:

• NCSS National Social Work Competency Framework

• NCSS National Youth Work Competency Framework

• Skills Framework for Early Childhood Care & Education

• Skills Framework for Social Services (July 2018)

• Skills Framework for Healthcare (July 2018)

1

1 2 3 54Define Jobs

Categorise Jobs

ValueJobs

Build Salary Ranges



Why categorise jobs?

Categorising jobs enables an organisation to clarify the relative worth of all jobs and eventually helps to determine equitable remuneration levels.

2

Categorise Jobs

Job Family

Social WorkerCommunity Partnerships

Job Role

Principal Social Worker

Head of Community Partnerships

Senior Social Worker

Community Partnerships

Manager


Executive

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1 Scope of jobWhat are the tasks and responsibilities required of this job?

ImpactWhat are the reporting lines around this job? How does this job affect the organisation?

KnowledgeWhat is the level of skills and competencies required of this job?

Using information from job descriptions/summaries, assess each job against the following considerations:

Classify all jobs within the organisation according to job family:

A “job family” is a group of jobs involving similar types of work and requiring similar training, skills, knowledge, and expertise.

2

Categorise Jobs

For illustration onlyApply the assessment criteria across all job families within the organisation:

Executive Director


Manager

Finance Manager

Programmes Manager

HR & Admin

Manager

Senior Social

Worker


Head of Social Services / Principal Social Worker

Head of Corporate Services

Community Partnership Executive

Volunteer Management

Executive

Social Worker

Admin Executive

Programmes Executive

Admin ExecutiveBand 4

Band 3

Band 2

Band 1

Are there other ways/criteria of categorising jobs? How does your organisation categorise jobs?

2

Categorise Jobs

Consistent Unbiased Current

The methodology of job categorisation may differ from organisation to organisation. Regardless of the method used, the process is often subjective. Therefore, it is important to remain:

2

1 2 3 54Define Jobs

Categorise Jobs

ValueJobs

Build Salary Ranges



How should organisations value jobs?

Ultimately, jobs should be remunerated sustainably. Since competitive pay is not limited to one single point, organisations have the flexibility to decide on how to

pay for jobs.

3

Valuing Jobs


Principal Social Worker


Min6,030

RP7,530

Senior Social Worker


Manager

Min4,900

RP6,120


Executive

Min4,010

RP5,010

Min4,270

RP5,340

Min4,010

RP5,010

Ban

d 1

Ban

d 2

Ban

d 3

Job type A Job type B

Salary data

Salary data

Using market salary data, such as the 2018 NCSS Salary Guidelines, organisations can obtaininformation on how similar jobs in the market are valued. These will act as the reference forconstructing salary structures as well as remunerating “non-benchmark” jobs, for which pay data isnot readily accessible.

3

Valuing Jobs

Although most job roles may be easily mapped to NCSS comparable positions, there are some exceptions. In mapping “non-benchmark” roles within your organisation, consider all the following sources of information in order to derive an accurate matching.

For illustration only

1 2 3Job descriptions Job grade descriptions Position, not any particular incumbent

3

Valuing Jobs

External Competitiveness“Pay what the external market is

paying”

InternalEquity

“Pay what other similar jobs are being paid”

• Helps communicate career movement within the organisation

• May support teamwork and a sense that employees are equally valued

• Supports attraction and retention

• Makes economic sense (neither overpaying nor underpaying)

3

1 2 3 54Define Jobs

Categorise Jobs

ValueJobs

Build Salary Ranges



What considerations should an organisationtake in designing a salary structure?

What approach should organisations take in building salary ranges?

Organisations benefit most from striking a balance between paying as the market pays as well as ensuring that jobs of similar value are rewarded accordingly.

4

Build Salary Ranges

65

Competitive Pay

$2,583

$2,666

$2,833

$3,800

$3,083$3,250

$3,416

$3,583

Reference pointMinimum /

Starting Salary

(lowest market pay level)

Competitive pay is a range and not a point!

*If your organisation is funded, it is recommended that employees are remunerated at the reference point.

4

Build Salary Ranges

Illustrative salary structure

The salary range is meant to encourage performance and accommodate merit increments of employees as they gain relevant experience and expertise in their roles over time.

4

Build Salary Ranges

Key concepts in designing a salary structure

Details of the salary structure should be

governed by the organisation’s pay

philosophy

Overlap = (Max2 – Min1)/(Max2 – Min2)

Midpoint differential = (Mid1 – Mid2)/Mid2

Range spread= (Max – Min)/Min

4

1 2 3 54Define Jobs

Categorise Jobs

ValueJobs

Build Salary Ranges



How often should salary ranges be reviewed?

Ideally, salary ranges should be reviewed every year. Salary range reviews should take factors such as market inflation, labour supply, economic outlook, changes

to internal goals, and the organisation’s financial ability into consideration.

5

Where can data on wage increases be obtained?

5Review Salary Ranges

Review Salary Ranges 5Where can data on wage increases be obtained?

MOM//www.mom.gov.sg/newsroom/press-releases/2016/0531-national-wages-council-guidelines-2016-2017Sing Stathttps://www.singstat.gov.sg/statistics/browse-by-theme/labour-employment-wages-and-productivitySNEFhttp://snef.org.sg/wp-content/uploads/2017/06/nwc_guildlines_2017-2018.pdf

National Wages Council Guidelines

Salary surveys Available upon participation

http://stats.mom.gov.sg/iMAS_PdfLibrary/mrsd-Labour-Force-in-Singapore-Advance-Release-2017.pdf#page=6

MOM’s LabourForce in Singapore Report

:/www.mom.gov.sg/newsroom/press-releases/2016/0531-national-wages-council-guidelines-2016-2017

https://www.singstat.gov.sg/statistics/browse-by-theme/labour-employment-wages-and-productivity

http://snef.org.sg/wp-content/uploads/2017/06/nwc_guildlines_2017-2018.pdf

Live Poll

Qn. What does culture mean to you?

(Word Cloud)

Translating EVP into employee culture

What is culture?

Culture is ‘the way things are done around here’. It is driven by the underlying values, beliefs and motives observed through people’s practices, behaviours, and

symbols. It’s what gives one organization a different “feel” from another.

Live Poll

Qn. Do you think culture is by chance?

(Multiple Choice – Yes/No)


Sustain and Measure

Articulate future behaviors

Assess current culture, gaps and root causes

Define culture journey

Anchor target culture in the business

521 3 4

Confirm and align purpose, vision, strategy and align with performance metrics

Define preliminary future values and key supporting behaviors

Drive leadership alignment and prepare leadership to support culture transformation

Assess current employee behaviors

Assess gaps to desired behaviours from articulated EVP and identify root causes

Refine and prioritize future state behaviors

Define culture transformation roadmap

Define metrics and set baseline

Prioritize and launch quick wins

Define leadership coaching and engagement plans

Anchor values and behaviors in all critical business programs

Embed values and behaviors in HR talent cycle

Continually activate future values and behaviors

(Re)prioritize behavior focus to maximize benefits


Re-enforcing mechanisms• Align the people policies, processes

and systems enable so they encourage the right behaviours & practices – reward, recognition, etc

• Identify the policies and practices with the potential to reward the right behaviours e.g. promotions, performance, recognition

• Run recognition campaign to celebrate success and exemplars

Knowledge and skills• Design and develop training

courses that help people build they need to behave in the new way

• Refresh the learning and development portfolio to support this

• Recruit and support new talent with the behaviours and skills needed

• Enable every individual to crate a personal development plan so they can play their part

Purpose & Story

• Create and share a clear sense of purpose and belief in the future direction of the organization

• Help people understand the role they personally play and understand what’s expected of them

• Communicate the strategic narrative and involve employees in sharing their stories too, keep the conversation going

• Create experiences that show employees what the new world looks like

Role Models

• Identify the leaders who’s decisions and actions demonstrate the desired culture and behaviours and give them a role in the change

• Create a clear leadership competency framework and set expectations with leadership assessments and performance discussions

• Promote and recruit leaders with the desired behaviours and make these appointments public so people are clear ‘what it takes to succeed’

I will change my attitudes and behavior if…

Clear & compelling Purpose & Story

“I understand what’s expected of me and I

agree it makes sense”

Knowledge & Skills

“I have the knowledge and

skills to behave in the new way”

Re-enforcing mechanisms

“The processes, policies and systems support the

changes in behaviour that I am being asked to make?”

Role Models“I see senior

leaders and my manager role

modelling these behaviours”

Symbolic Acts“I see that things are changing and have

confidence in the new direction’

Symbolic Acts

• Make symbolic acts of leadership that show employees the old ways are not acceptable

• Make these visible to others

Translating an EVP –Communications

Key possible communication principles

Open Transparent Encouraging Two-way Positive

Example of changes to an organisation’s Social Media, office, meetings, intranet and employee handbook Social Media: ► Introduce organisation’s values, and EVP► Include short examples of employees talking about what the organisation has to offer

Office/Meetings:► Create and communicate organisation’s values and EVP on posters► Introduce open-door policy► Senior management/middle managers to be the role model of empowering, inclusive and thriving behaviours► Senior management emphasise the importance of organisation’s values and EVP during annual and quarterly meetings

Intranet/Employee Handbook: ► Communicate buddy systems/mentor programmes► Communicate performance management cycle and its processes ► Communicate career progression ladder and the required responsibilities, skills, competencies and years of experience to

move to the next level

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2

3

4

5

1

Successfully developed/implemented EVP would have at least the following:

Buy in from senior & mid management (will support the overall EVP governance & EVP implementation)

Alignment with organisational strategy

Alignment with HR practices across employment life cycle

Reflection of the true reality of working within the organisation

Existence of measurement approach including KPIs

Pros (when successfully developed/implemented)

Pros (when EVP is successfully implemented)

Cons(when EVP is not successfully implemented)

Create a strong “People” brand and communicate your brand

entity to the public

Attract and retain the right talent that have a true match to

your company’s culture and values

Help to re-engage a disenchanted workforce

Help to prioritise your people practice (HR) agenda

Reduce new-hire premiums

Confusion and mistrust towards the organisationDisenchanted workforce and possible high turnover rateNo improvement on organisational culture, productivity and financial performancesEVP is more of a tagline than a way of working within the organisation

3

Managed EVP is iterative

ManagedEVP

The external context

► Workforce outlook

► What is changing in the broader environment?

The benefits delivered

► Attraction and retention trends

► Is the EVP delivering the targeted value?

Effectiveness of delivery

► Validation of delivery effectiveness

► How well is the organisation delivering –where does it need to invest?

What’s important?

► Validation of employment elements

► Are there changes to what people view as important to their employment?

A managed EVP is iterative, it is tested and realigned to changes as they occur in both the internal and external environment.

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