Creating a Compelling “Employee Value Proposition”

Rose Clements HR Director Microsoft

A Recipe for Success...

Step 1 : Understand Talent

Step 2 : Know Why People Stay ... And Why They Leave

Step 3 : Get Personal

Step 4 : Create a Strategic Plan

Step 5 : Make it Real

Step 1 : Understanding Talent

“Human Resource Management becomes the business strategy when knowledge workers are the winning resource for an organisation”

Adapted B.Groysberg, 2005

Harvard Business School

• The most productive employees are about TWICE AS GOOD as the least productive

• In Knowledge industries stars’ impact is out of proportion to their numbers

– R&D : Top 1% : 5 to 10 times

– Computer Programmers 8:1

– Analysts : Top 5% : 6 times

“Nature vs. Nurture” : The Theory

Nature• Star performers are born• Managers attribute the differences in productivity between star and non-

stars to differences in in-born traits• Managers will hire large numbers of workers, hoping that with some luck,

some stars will emerge• “Magic bullet: : An in-coming star will quickly bring in huge business

Nurture• Star performers are made• There’s little difference in the cognitive abilities of stars and average

performers• Stars can be developed through training, mentoring and incentives• Stars are dependent upon their surroundings and environment

“Nature vs. Nurture” : The Reality

• Stars’ performance is NOT portable across firms

• Stars need to learn the new culture and develop workable relationships – very time consuming tasks

• Even with developmental guidance from the organisation, stars still face stiff odds

• Stars show resistance to change, believing that they have little to learn

• Stars have invested in a “recipe for success” which they are fearful of tampering with

• Stars who switch employers show an immediate decline in performance which can persist for up to five years

Growing & Retaining Talent is a Commercial Imperative

Step 2: Knowing Why People Stay ...

Informal

Formal

Variety / Quality

Ability toimpact

Network / access to Leaders

Challenging work

Global, Lateral,UpwardDevelopment

Transparency of

promotion path

Support throughhard times

Time forrelaxing

Time forwork study

Market competitive fixed pay

Variable pay to reward

contribution

Pay Recognition

Work / life balance

Careerpath

Natureof work

... And Why People Leave

Pushing Factors ...

• Don’t enjoy the work that they do

• Poor work-life balance

• Not a good values “fit” with the culture / industry

• They do not like / respect their manager (# 1 reason)

Pulling Factors ...

• Career growth will be better

• Compensation & benefits are higher (real or perceived)

• Skill marketability

• Competitors brand and reputation

Step 3 : Get Personal

• People are individuals first and employees second

• Trust them• Help people say “YES” to these four key

questions:– Do I know what is expected of me?– Does my Manager care about me?– Am I a good fit?– Can I see a future here?

Step 4: Create a Strategic Plan

MyMicrosoftMyMicrosoft

Leadership BehaviourGlobal Mobility

Initiatives

Coaching & Mentoring

Benefits ChoiceDiversity Strategies

Training& Development

Recognition Programs

Citizenship & Community Efforts

Flexible Working Options

Career Path Planning

Congruent System & Symbols

Focus on What Matters Most ...

Differentiated Reward for Performance

... To Build an Integrated Approach

Fixed Variable

Managers & Above

Below Manager

Remuneration

Packaged B

enefits

Profit Share

Discretionary Bonus

Formal & Informal

Recognition

Nature of Work / Job Design

Benefits

Additional Company Benefits

Recognition & Reward

Development & Career Path Planning

Work / Life Balance

Brand, Citizenship & Culture

Step 5 : Make it Real

• Be Curious• Leadership Commitment – are they up for this?• Building Management Information • Avoid defensiveness - See “the Gap” as an

opportunity to improve• Invest in People Managers• Prioritise

– “Show me your cheque book and your diary and I’ll show you what you value”

Final Reflections

1. A Clear People Strategy is an Essential Commercial Imperative

2. Good Diagnostics are Critical

3. Invest Purposefully

4. The Grass is Not Always Greener

5. Managers Matter

6. Get Personal

“Every day I face new and different challenges. Every day I learn something new from an avenue I didn't expect. Every day I grow a bit more in myself, as I understand more about myself and how I react to different situations and pressures. Every day I report to an open and respectful manager, who encourages and motivates me to achieve. Every day I meet new colleagues who are intelligent, dynamic and passionate about what they do, and who vary greatly in terms of experience and background. Every day I speak to customers who are genuinely happy to have impactful and important conversations with me about how our technology can help them to improve their business in better, faster ways. ... And every day I love to come in to work.”

Microsoft Employee (Anonymous),

Source : Hewitt Best Employer Survey, 2007  

What’s the Prize?