Having available, quality, and committed human resources to deliver products and services to clients, thus generating value and financial results, is no longer just a "HR policy" issue but a business strategy. This is not merely a topic for managers or HR directors; it has become, first and foremost, a subject for company leaders. As such, it deserves more than ever to be examined thoroughly.
In 2022, a Gartner study highlighted the top 3 concerns of Australian employees when deciding whether to stay with a company:
work-life balance
the quality of direct management
compensation
However, the priority results of this study were contradicted by another PwC study of the same population in the same year... Everyone eventually agreed that the disparities were significant depending on the industry or the profile of employees (age, education level, career stage or personal life, etc.).
This example is interesting because beyond the necessity to sort through the numbers that are published left and right, it raises the question of alignment between a company's value proposition and the concerns of its specific target, which are surely different from those of the company next door. It thereby encourages companies to reflect and perhaps even reconsider their Employee Value Propositions.
↳ Employer Brand vs "EVP"
Many companies and institutions summarize the issue of recruitment, retention, and engagement of their human capital through the term "employer brand." In reality, this boils down to recruitment communication or internal engagement communication. We prefer the term "Employee Value Proposition," or "EVP," for three reasons.
Firstly, "value proposition" is a strategic act. It focuses on the substance, the offer, and the value, rather than the form, which the term "brand" might imply.
Secondly, it is centered on the employee. Considering the imbalance observed in the employer/employee relationship, it's crucial to change perspectives.
Thirdly, the term "value proposition" brings the subject to the heart of the company’s "business model," as it does for a client value proposition. It thereby encourages a systematic view of all the components involved (revenue sources, cost sources, key elements, expected flows, etc.)
Lay Out Your HR Business Model
Inspired by the "Business Model Canvas" proposed by Alex Osterwalder several years ago, and now widely used to design business models focused on customer value propositions, we now propose an "HR Business Model Canvas" tailored to insights from various studies and works on the extrinsic and intrinsic motivations of employees in companies.
This canvas allows you to lay out the various elements of your "HR business model" and verify its coherence. It should be developed with all stakeholders: HR teams, managers, leaders, etc.
At the center, the employee value proposition and the company’s raison d'être.
It positions the key target segments and expectations:
Key HR target segments: profiles, qualification level, location, etc.
Quality of work life: work hours, environment, etc.
Relational dimension: what systems exist for participation in company life, transparency, and internal engagement communication
Individual development: from onboarding to professional growth, the investment in training (time, budget)
Core competencies, behaviors, and key values expected of employees
On the system and available resources side, you’ll find:
Employment system: the proportion of permanent, temporary, freelance workers, work arrangements, etc.
Management system: what is the "signature," internal management style, expected rituals, and concrete commitments from managers to their teams.
Key partners used for recruitment, training, and retention
The existing direct and indirect compensation system and its structure.
This essential stage enables prioritization, making strategic choices aligned among leadership. But it also often reveals that many elements are already in place; it’s simply a matter of reinforcing them or highlighting them more.
Align Your HR Business Model with Employees
As with clients, leaders or managers may often have a biased view of what employees truly want.
Once the HR business model has been laid out as a team, it's time to confront it with the reality of the perception and importance of each element to your company’s employees.
To do this, you can conduct internal quantitative or qualitative studies by applying a scoring system to each element. This will help you more precisely determine which elements are most critical and where to invest or divest.
Finally, and only after aligning your HR business model, you should consider your communication as an employer. That is, how to sustainably communicate internally and externally about this employee value proposition and its components to stand out in a highly competitive job market.
