Having a talent pool that is available, high-performing, and engaged to deliver products and services to clients—and ultimately drive value and financial results—is no longer just an "HR policy" issue. It’s a core business strategy. It’s no longer just a concern for managers or HR directors; it has also, and most importantly, become a top-of-mind issue for C-level executives. As such, it deserves a deeper look now more than ever.

In 2022, a Gartner study highlighted that the top 3 priorities for Australian employees when deciding to stay with a company were:

1. work-life balance

2. the quality of direct management

3. compensation

However, the priority results of this study were contradicted by another PwC study on the same demographic in the same year... Ultimately, everyone agreed that the differences were significant depending on the industry sector or employee profile (age, education level, career stage, or personal life stage, etc.).

This example is interesting because, beyond the need to filter through the data floating around, it raises the question of alignment between a company’s value proposition and the needs of its specific target audience—which are likely different from those of the company next door. This prompts businesses to reflect on and even rethink their employee value propositions.

↳ Employer Branding vs. "EVP"

Many companies and organizations reduce the issue of recruitment, retention, and engaging their talent to the term "employer branding." In reality, this reduces the topic to recruitment marketing or internal engagement communications. We prefer the term "Employee Value Proposition," or EVP, for three key reasons.

• First, a "value proposition" is a strategic move. It focuses on substance, the offering, and actual value, rather than just the packaging, which the term "branding" often suggests.

• Second, it is employee-centric. Given the current shift in the employer/employee dynamic, changing this perspective is essential.

• Third, the term "value proposition" puts the topic right back at the core of the company's business model, just like a customer value proposition. This encourages us to look at all its components systematically (revenue streams, cost structures, key elements, expected flows, etc.).
  
  

Mapping Out Your HR Business Model

Inspired by the "Business Model Canvas" introduced by Alex Osterwalder years ago—and now widely used to design customer-centric business models—we are sharing an adapted "HR Business Model Canvas." This framework is built upon various studies on extrinsic and intrinsic employee motivation.

This canvas helps map out the different elements of your "HR business model" and check them for consistency. It should be built collaboratively with all stakeholders: HR teams, managers, and executives.

Positioned right at the center is the employee value proposition and the company's purpose.

From the target audience and expectations side, we map out:

•  Key HR target segments: profiles, qualification levels, location, etc.

• Quality of life at work: working hours, work environment, etc.

• The relationship aspect: systems for employee participation, transparency, and internal engagement communication.

• Individual development: from onboarding to career growth, and the resources (time, budget) invested in training.

• Key professional skills, behaviors, and core values expected from employees.

On the systems and available resources side, we find:

• The employment structure: share of permanent vs. temporary contracts, freelancers, remote/hybrid workflows, etc.

• The management framework: the internal management "style" or signature, expectations, key rituals, and concrete commitments from managers to their teams.

• Key partners utilized for recruitment, training, and retention.

• The direct and indirect compensation structure in place.

This essential step helps leadership prioritize and make aligned, strategic decisions. However, it often helps leaders realize that many elements are already in place and simply need to be reinforced or highlighted more effectively.

Aligning Your HR Business Model with Employees

Just like with customers, executives and managers can often have a biased view of what employees actually want.

Once you have mapped out the HR business model as a team, it's time to test it against the reality of how your employees actually perceive and value each element.

To do this, you can conduct internal quantitative or qualitative surveys, asking employees to rate or score each element. This will help you identify the most critical areas to invest in or de-prioritize.

Finally, and only after aligning your HR business model, can you address employer branding. Specifically, how to communicate this employee value proposition and its components consistently—both internally and externally—to stand out in today's highly competitive job market.