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HRM Report: Employee Value Proposition

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HRM Report: Employee Value Proposition

Uploaded by

Army
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

A WRITTEN REPORT

IN
SPECIAL TOPIC IN
HUMAN RESOURCE
MANAGEMENT

Prepared by:

Dan Michael S. Arabejo


Gladys D. Ereger
BSBA HRM 4-A

Submitted to:

Dr. Analyn M. Banagbang, DM-BM


Professor

1
Table of Contents

Page

Maslow’s Hierarchy of Needs……………………………………………………………...3


Critical Organizational Attributes…………………………………………………….6
Attributes Definition………………………………………………………………..6
Critical Organizational Attributes (that candidates look for)…………………….6
Employee Value Proposition (EVP) and Employee Branding…………….………9
Employee Value Proposition (EVP) Definition…………………………………....9
Elements of Employee Value Proposition (EVP)…………………………………9
Importance of Employee Value Proposition……………………………………...9
Employee Branding Definition……………………………………………………10
Difference between Employee Branding and Employer Branding……………..10
Importance of Employee Branding………………………………………………10
Best Practices for Talent Acquisition……………………………………….…….…11
Talent Acquisition Definition……………………………………………….…….11
Best Practices for Talent………………………………………………………….11

2
Maslow’s Hierarchy of Needs

What motivates behavior? According to humanist psychologist Abraham Maslow,


our actions are motivated in order achieve certain needs. This hierarchy suggests that
people are motivated to fulfill basic needs before moving on to other, more advanced
needs.
This hierarchy is most often displayed as a pyramid. The lowest levels of the
pyramid are made up of the most basic needs, while the more complex needs are located
at the top of the pyramid. Needs at the bottom of the pyramid are basic physical
requirements including the need for food, water, sleep, and warmth. Once these lower-
level needs have been met, people can move on to the next level of needs, which are for
safety and security.
As people progress up the pyramid, needs become increasingly psychological and
social. Soon, the need for love, friendship, and intimacy become important. Further up
the pyramid, the need for personal esteem and feelings of accomplishment take priority.
Maslow emphasized the importance of self-actualization, which is a process of growing
and developing as a person in order to achieve individual potential.
Needs and their description:
1. Physiological needs
Physiological needs are the physical requirements for human survival. If these
requirements are not met, the human body cannot function properly and will ultimately
fail. Physiological needs are thought to be the most important; they should be met first.
Air, water, and food are metabolic requirements for survival in all animals,
including humans. Clothing and shelter provide necessary protection from the elements.

3
While maintaining an adequate birth rate shapes the intensity of the human sexual
instinct, sexual competition may also shape said instinct.
2. Safety needs
With their physical needs relatively satisfied, the individual’s safety needs take
precedence and dominate behavior. In the absence of physical safety – due to war, natural
disaster, family violence, childhood abuse, etc. – people may (re-)experience post-
traumatic or trans generational trauma. In the absence of economic safety – due to
economic crisis and lack of work opportunities – these safety needs manifest themselves
in ways such as a preference for job security, grievance procedures for protecting the
individual from unilateral authority, savings accounts, insurance policies, reasonable
disability accommodations, etc. This level is more likely to be found in children because
they generally have a greater need to feel safe.
Safety and Security needs include:
Personal security
Financial security
Health and well-being
Safety net against accidents/illness and their adverse impacts

3. Love and belonging


After physiological and safety needs are fulfilled, the third level of human needs is
interpersonal and involves feelings of belongingness. This need is especially strong in
childhood and can override the need for safety as witnessed in children who cling to
abusive parents. Deficiencies within this level of Maslow’s hierarchy – due to hospitalism,
neglect, shunning, ostracism, etc. – can impact the individual’s ability to form and
maintain emotionally significant relationships in general, such as:
Friendship
Intimacy
Family
According to Maslow, humans need to feel a sense of belonging and acceptance
among their social groups, regardless if these groups are large or small. For example, some
large social groups may include clubs, co-workers, religious groups, professional
organizations, sports teams, and gangs. Some examples of small social connections
include family members, intimate partners, mentors, colleagues, and confidants. Humans
need to love and be loved – both sexually and non-sexually – by others. Many people
become susceptible to loneliness, social anxiety and clinical depression in the absence of
this love or belonging element. This need for belonging may overcome the physiological
and security needs, depending on the strength of the peer pressure.
4. Esteem
All humans have a need to feel respected; this includes the need to have self-
esteem and self-respect. Esteem presents the typical human desire to be accepted and

4
valued by others. People often engage in a profession or hobby to gain recognition. These
activities give the person a sense of contribution or value. Low self-esteem or an inferiority
complex may result from imbalances during this level in the hierarchy. People with low
self-esteem often need respect from others; they may feel the need to seek fame or glory.
However, fame or glory will not help the person to build their self-esteem until they accept
who they are internally. Psychological imbalances such as depression can hinder the
person from obtaining a higher level of self-esteem or self-respect.
Most people have a need for stable self-respect and self-esteem. Maslow noted two
versions of esteem needs: a “lower” version and a “higher” version. The “lower” version
of esteem is the need for respect from others. This may include a need for status,
recognition, fame, prestige, and attention. The “higher” version manifests itself as the
need for self-respect. For example, the person may have a need for strength, competence,
mastery, self-confidence, independence, and freedom. This “higher” version takes
precedence over the “lower” version because it relies on an inner competence established
through experience. Deprivation of these needs may lead to an inferiority complex,
weakness, and helplessness.
Maslow states that while he originally thought the needs of humans had strict
guidelines, the “hierarchies are interrelated rather than sharply separated”. This means
that esteem and the subsequent levels are not strictly separated; instead, the levels are
closely related.
5. Self-actualization
“What a man can be, he must be.” This quotation forms the basis of the perceived
need for self-actualization. This level of need refers to what a person’s full potential is and
the realization of that potential. Maslow describes this level as the desire to accomplish
everything that one can, to become the most that one can be. Individuals may perceive
or focus on this need very specifically. For example, one individual may have the strong
desire to become an ideal parent. In another, the desire may be expressed athletically. For
others, it may be expressed in paintings, pictures, or inventions. As previously mentioned,
Maslow believed that to understand this level of need, the person must not only achieve
the previous needs, but master them.

5
Critical Organizational Attributes

What is Attributes?
Attributes in business pertain to brands or products, companies and even employees.
They can be best described as certain underlying characteristics that best represent all
brands or businesses in the marketplace. Companies may be strong in some of these
characteristics and weaker on others.
Critical Organizational Attributes (that candidates look for)
1. Attraction

Employee attraction, also called employer branding, refers to the strategies


and practices a company uses to appeal to potential candidates. It’s the first step
in building a workforce, where the aim is to make your organization stand out as
an employer of choice.
Factors that influence attraction includes the nature of work (including
duties and responsibilities associated with a specific role), the perceived value of
the employment package (including salary, benefits, and other perks), and the job
security (including regular and consistent work schedule, long-term contracts,
opportunities for career growth, and solid employee benefits).

Nature of Work - Businesses that offer a dynamic and


engaging work environment tend to attract more talent.
Employees are drawn to workplaces where they feel
valued, motivated, and part of a team working towards
common goals.

Compensation - Competitive compensation packages


tend to attract talent and can lead to greater employee
satisfaction and retention.

Job Security – It is the probability that an individual


will keep their job; a job with a high level of security is
such that a person with the job would have a small
chance of losing it.

6
In the light industrial sector, where skilled workers are in high demand,
effective attraction strategies are vital for sourcing the best talent. This includes
showcasing career development opportunities, a commitment to safety and
technology advancements, and flexible work arrangements.

2. Retention

Employee retention, on the other hand, involves keeping talented staff in


the organization once they’ve been hired. It’s about creating an environment where
employees feel engaged, valued, and satisfied with their work. Retention strategies
are crucial for minimizing turnover, which can be costly and disruptive to
operations.
Factors that influence retention includes the stress level, compensation,
and promotion opportunities.

Stress Level - A less stressful work environment can


retain talent by promoting employee well-being, job
satisfaction, and productivity. When stress levels are
low, employees are more likely to feel balanced,
motivated, and engaged, reducing the likelihood of
burnout and turnover.

Compensation - Compensation plays a key role in


retaining talent because it directly reflects the value an
organization places on its employees' contributions.
Competitive salaries, bonuses, and benefits not only
fulfill basic financial needs but also serve as recognition
for hard work and achievements.

Promotion Opportunity - Promotion opportunities in


business can significantly help retain talent because
they provide employees with a clear path for career
growth and personal development. When individuals
see that their hard work and skills can lead to upward
mobility within an organization, they are more likely to
remain engaged, motivated, and loyal.

In the light industrial market, retention efforts focus on safety, career


development, competitive compensation, and a positive company culture.
Effective retention means understanding and addressing your workforce’s unique
needs and desires, ensuring they have compelling reasons to stay.

7
3. Motivation
Employee motivation is the level of energy, commitment, and creativity that
a company's workers bring to their jobs. Your motivated employees are the ones
who roll out of bed almost every morning feeling excited to go to work and take
on new challenges.
Factors that influence retention includes the nature of work,
compensation, and appreciation of work.

Nature of Work - The nature of work can motivate talent by


aligning with an individual’s intrinsic interests, values, and
skills, creating a sense of purpose and fulfillment. When the
work environment offers challenges that stimulate creativity,
learning, and growth, it keeps talented individuals engaged
and driven.

Compensation - Compensation serves as a powerful


motivator for talent because it directly ties to an individual's
sense of value, security, and recognition. Competitive pay
attracts skilled professionals and rewards them for their
expertise, incentivizing high performance and loyalty. It also
fulfills basic needs, reduces financial stress, and can enhance
job satisfaction when linked to merit and achievement.

Appreciation of Work - Appreciation of work can motivate


talent by fostering a sense of recognition and validation,
which boosts self-esteem and encourages continued effort.
When individuals feel their contributions are valued, they are
more likely to be engaged and committed, driving them to
further excel.

8
Employee Value Proposition (EVP) and Employee Branding

What is Employee Value Proposition (EVP)?


Employee Value Proposition (EVP) is a balance of awarding the results of the
performance that has been done to a company. According to Review and Backhaus
(2016), EVP is reciprocity that prospective employees will obtain for the work that
has been done to a company. This can include special abilities and experience brought
by the prospective employees to the company.
An Employee Value Proposition (EVP) is used to attract and retain top talent. An
employee value proposition communicates the ‘value’ and benefits that a company
provides their employees in exchange for their time, performance in the workplace.

Elements of Employee Value Proposition (EVP)


Here the most important building blocks of a successful Employee Value
Proposition (EVP):

COMPENSATION BENEFITS CAREER WORK CULTURE


ENVIRONMENT
Salary satisfaction Time off Ability and chance Understanding of
to progress and Recognition firm’s goals and
Compensation Holidays develop plans
system satisfaction Autonomy
Insurance Stability Colleagues
Rases and Personal
promotions Satisfaction with the Training and achievements Leaders and
system education at work managers
Timeliness Work-life balance
Retirement Career development Collaboration and
Fairness Challenges team spirit
Education Evaluation and
Evaluation feedback Understanding of Social responsibility
Flexibility one’s role and
responsibility Trust
Family

Importance of Employee Value Proposition


Employee Value Proposition is important because it can help companies:

• Attracts talent by telling candidates what they'll get in return for working with the
company.
• Improves employer brand and differentiates the organization from competitors.
• Produces genuine candidates and helps retain good talent.
• Builds a positive culture and drives employee engagement.
• Boosts performance by offering benefits and opportunities to employee.
9
What is Employee Branding?

Employee branding is the strategic process of shaping


and promoting a company's reputation as an employer. It
involves creating a compelling identity that showcases the
company's values, culture, and staff experience to attract and
retain top talent. Like employer branding, employee branding
also focus on shaping the public perception of an
organization.
In essence, employee branding focuses on how a
company is perceived by both current and new employees, as
well as external stakeholders. It goes beyond traditional
marketing efforts aimed at customers and clients to cultivate
a positive image specifically tailored to the workforce.

Difference between Employee Branding and Employer Branding


While there is overlap between employer branding and employee branding, there
are distinct differences that set them apart. Employer branding is largely driven by
company leaders and HR, and it’s the personal you want job seekers, stakeholders, and
the community to associate with your company. Employee branding is the perception
created by employees and potential employees about your company as a workplace.
Employer branding focuses on marketing your company to potential hires, while
employee branding focuses on engaging your current employees to create a positive
perception of your company. Employer branding is about presenting your company in
the best possible light to attract and retain talent, while employee branding is about
getting employees on board with the values that your brand stands for.
Importance of Employee Branding
Employee branding is important because it can help companies:

• Attract top talent: A strong employment brand can help a company attract the
best candidates.
• Engage and retain employees: Employee branding can help improve employee
satisfaction and loyalty.
• Optimized online visibility: Employee branding can help improve a company’s
online visibility and reputation, which can lead to more job applicants and better
quality candidates.
• Better employee engagement and performance: Employee branding can help
improve employee engagement and motivation, which can lead to better
performance and customer satisfaction.
• Lower employee turnover: Employee branding can help reduce employee
turnover by making employees feel more invested in the company and its success.
• Lower per-hire cost: Employee branding can help lower the cost of recruiting
and hiring new employees.
10
• Efficient talent pool: Employee branding can help companies build an efficient
talent pool by attracting and retaining high-quality candidates.

Best Practices for Talent Acquisition

What is Talent Acquisition?


The term "talent acquisition" refers to a strategy approach that involves locating,
attracting, and engaging elite people in order to fulfil the present and future requirements
of an organization. It entails taking a proactive and long-term view, with the intention of
constructing a pipeline of qualified candidates who are in agreement with the values,
culture, and strategic objectives of the organization.
Best Practices for Talent
Talent acquisition is a crucial aspect of every organization's efforts to attract highly
skilled individuals, and recruiting and HR play key roles in this process (Agarwal., [Link].,
2018) Organizations can optimize their recruiting and HR processes by adopting these
recommended strategies, which will ultimately help them attract and hire highly skilled
individuals to promote success and expansion. Here are some optimal strategies to take
into account:

• Begin by explicitly delineating the requisite skills, credentials, and experience for
the position. This guarantees that both recruiters and candidates comprehend the
requirements.
• Create job descriptions that not just enumerate qualifications but also emphasize
the company's culture, mission, and perks. Create a compelling experience to
captivate the interest of highly skilled individuals.
• Develop a robust employer brand that highlights the distinctive and appealing
aspects of your organization to prospective recruits. Employ social media, the
corporate website, and employee testimonials to construct a favorable perception.
• Avoid depending exclusively on employment boards. Utilize a range of sourcing
channels, including employee recommendations, networking events, social media
platforms, and professional organizations, to access a varied pool of candidates.
• An Applicant Tracking System (ATS) simplifies the recruitment process by
automating duties such as resume screening, candidate correspondence, and
interview scheduling. It enhances productivity and guarantees a more seamless
recruitment process.
• Proactively strive for diversity in your pool of candidates and guarantee an
inclusive hiring process. Not only does this encourage innovation and creativity,
but it also has a beneficial impact on your company brand (Anand, V., [Link]., 2018).
• Develop a comprehensive selection procedure that include evaluations, telephone
interviews, and/or video interviews to analyze candidates' abilities, compatibility
with the organization's culture, and motives.

11
• Conduct thorough research on industry benchmarks to ensure that your
remuneration plan is in line with prevailing standards. Moreover, emphasize
certain advantages and privileges that differentiate your organization from others.
• Guarantee that candidates have a favorable experience throughout the recruitment
process, irrespective of the result. Timely and clear communication, honest
feedback, and consideration for their time are essential.
• After being employed, it is important to allocate resources towards training and
development programs in order to facilitate the assimilation of new employees into
the company culture and enhance their skill sets.
• Regularly evaluate and analyze your recruitment procedures to uncover
opportunities for enhancement. Seek input from both candidates and hiring
managers to enhance and perfect your approach.

12
References

1. Anand, V., & Rajput, N. S. (2018). Status of Women in India: Empowered or Facing
Challenges for Survival. Kaav International Journal of Economics,
Commerce & Business Management,5(1),147-152. [Link]
[Link]

2. Berger, L. A., & Berger, D. R. (2004). The talent management handbook: Creating
organizational excellence by identifying, developing, and promoting your
best people. McGraw-Hill

3. Chatterjee, s. (2021). Current organizational practices (recruitment, onboarding


and training) and changed hr competencies in a covid 19 era (1st ed., pp.
114-119).

4. Review, B. M., & Backhaus, K. (2016). Beacon Management Review


2012. Organization Management Journal, 13(4), 29–36 excellence by
identifying, developing, and promoting your best people. McGraw-Hill

5. Srivastava, V. (2016). Strategic Recruitment Technique - Competency Mapping.


Kaav International Journal of Economics, Commerce & Business
Management, 3(1), 21 61.

6. [Link]

7. [Link]
needs/

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Common questions

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Critical Organizational Attributes enhance talent attraction by making the organization appealing to potential candidates through a strong Employer Branding. Factors such as a dynamic work environment, competitive compensation, job security, commitment to safety, technology advancements, and flexible work arrangements create a desirable workplace. These elements signal to candidates that the organization values its employees and provides opportunities for career growth, thus standing out as an employer of choice .

Maslow's Hierarchy of Needs impacts employee motivation by emphasizing the progression from fulfilling basic physiological needs to achieving psychological and self-fulfillment needs. In a workplace, ensuring that physiological needs (such as salary for food and shelter), safety needs (such as job security), love/belonging needs (such as teamwork and camaraderie), and esteem needs (such as recognition and promotions) are met can result in increased motivation. Ultimately, facilitating opportunities for self-actualization (such as personal growth and career advancement) can lead to enhanced employee satisfaction and productivity .

The importance of Employee Value Proposition (EVP) lies in its ability to communicate the unique value and benefits that employees receive in exchange for their performance, thus attracting and retaining talent. EVP helps improve employer branding, differentiating organizations from competitors while fostering a positive corporate culture that drives engagement and boosts performance. Additionally, a strong EVP aligns employees' values with the company's goals, reducing turnover by making employees feel invested in the company's success .

According to Maslow's model, the psychological impact of unmet 'Love and Belonging Needs' in workplace environments includes increased vulnerability to loneliness, social anxiety, and depression. A lack of meaningful interpersonal relationships and acceptance can lead to feelings of isolation and disengagement. This unmet need may also override other hierarchical needs, disrupting employee morale and diminishing productivity. Encouraging a culture where teamwork and inclusivity are prioritized can mitigate such negative outcomes by fulfilling these fundamental psychological needs .

Employee Branding is the impression created by employees and potential employees about a company, focusing on existing staff engagement and the internal company culture, while Employer Branding involves marketing the company to potential hires and external stakeholders. The distinction is significant as Employee Branding builds a positive internal image that aligns with employees' attitudes, leading to increased satisfaction and lower turnover, while Employer Branding attracts new talent by presenting the company positively to the outside world .

'Safety Needs,' as defined by Maslow, are increasingly relevant in today’s employment landscape as they encompass physical and economic security, critical in an ever-changing job market. Employees demand environments free from harm, job security amidst economic fluctuations, and policies that prevent unilateral job termination. Implementing measures such as clear safety protocols, comprehensive health benefits, and job security guarantees are essential in fulfilling these needs, thereby enhancing stability, retention, and productivity within organizations .

Self-actualization plays a crucial role within Maslow's Hierarchy of Needs as it pertains to personal development at work by representing the realization of an individual's full potential and capabilities. In a workplace setting, it involves opportunities for creativity, problem-solving, and personal growth. Organizations that create environments where employees can pursue self-actualization through challenging roles and professional development enable them to achieve higher levels of satisfaction, dedication, and innovation, contributing to both personal and organizational success .

'Best Practices for Talent Acquisition' improve an organization's ability to hire highly skilled employees by implementing strategies that align with organizational values and candidate expectations. These practices include defining clear job requirements, creating compelling job descriptions, maintaining a robust employer brand, and using diverse sourcing channels beyond job boards, such as employee referrals and networking events. Additionally, using Applicant Tracking Systems and promoting diversity ensure a streamlined and inclusive recruitment process, enhancing the success of hiring efforts .

Building a strong Employee Value Proposition involves strategies such as clearly communicating the benefits and values the company offers, ensuring competitive compensation packages, promoting career development opportunities, and fostering a supportive and inclusive work environment. Emphasizing work-life balance, aligning company culture with employee values, and providing recognition and rewards are critical elements. These strategies not only attract top talent but also retain employees by aligning personal growth with organizational goals .

Maslow’s concept of 'Esteem Needs' influences employee engagement and productivity by aiming to satisfy these through recognition, promotions, and the granting of responsibilities that reinforce an employee's sense of value and contribution. Meeting esteem needs revitalizes self-respect and self-esteem, promoting confidence and motivation. When individuals feel esteemed and respected, they are more engaged and willing to invest effort into their work, enhancing productivity and organizational loyalty .

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