1. McLean & Company1 McLean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a clear and measurable impact on your business. © 1997-2013 McLean & Company. McLean & Company is a division of Info-Tech Research Group Inc. Uncover the Employee Value Proposition to Attract, Engage, and Retain Talent An EVP that is not accurate, aligned, aspirational, and differentiated can cause more harm than good. McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © 1997 - 2013 Mclean & Company. McLean & Company is a division of Info-Tech Research Group

2. McLean & Company2 The Employee Value Proposition (EVP) is a critical tool for organizations to effectively retain and engage the right talent in their organizations, while attracting their desired future workforce. Introduction The Head of Human Resources Talent Acquisition Leaders Uncover the EVP that currently exists in your organization Strengthen your EVP by ensuring that it is accurate, aligned, aspirational, and differentiated Test your EVP with your current workforce and target talent pool Develop an internal and external communication plan Track and measure the results of your EVP This Research Is Designed For:This Research Will Help You:

3. McLean & Company3 Executive Summary McLean & Company defines the Employee Value Proposition (EVP) as a unique and clearly defined set of attributes and benefits that captures an employee’s overall work experience within an organization. A strong EVP positively impacts engagement levels which in turn positively impact profitability and shareholder value. An effective EVP also positively impacts employee retention (decreasing turnover costs), increases the alignment of HR with the business, and increases recruiting efficiency (decreasing recruitment costs). Despite these benefits, only one-third of organizations have a formally articulated EVP. Use McLean & Company’s three-step process for uncovering your EVP: 1.Uncover your organization’s EVP: Establish goals and success metrics for your EVP project. Creating an EVP is an iterative process. Gather executive input to develop your first draft, then continue to revise it based on employee data from engagement surveys, EVP interviews, and/or focus groups. 2.Road test and revise your organization’s EVP: Conduct an analysis on the EVPs of your direct competitors to ensure that your EVP statements highlight your unique employee experience. Use McLean & Company’s EVP scorecard to determine the strength of your EVP statements. o Internally: the EVP should be aligned, accurate, and aspirational. o Externally: the EVP should be clear, compelling, and comprehensive. o Additionally, your EVP must be differentiated and capture the unique aspects of your organization both for current employees and the employees you wish to attract and hire in the future. Revise the EVP using the results of your competitor analysis and the EVP scorecard. 3.Adopt the EVP in your organization: Assess how well your HR programs and policies support the EVP and develop remediation plans to close the gaps. This is a crucial step to ensure successful adoption and long-term sustainability of the EVP in your organization. Create your internal and external communication plans to launch and sustain your EVP.

4. McLean & Company4 How to use this blueprint We recommend that you supplement the Best Practices Blueprint with a Guided Implementation. For most McLean & Company members, these Guided Implementations are included in your membership plan.* Our expert analysts will provide telephone assistance to you and your team at key project milestones to review your materials, answer your questions, and explain our methodology. McLean & Company’s expert analysts will come onsite to help you work through our project methodology in a 2-5 day project accelerator workshop. We take you through every phase of the project and ensure that you have a road map in place to complete your project successfully. In some cases, we can even complete the project while we are onsite. Do-It-Yourself Implementation Use this Best Practice Blueprint to help you complete your project. The slides in this Blueprint will walk you step-by-step through every phase of your project with supporting tools and templates ready for you to use. Project Accelerator Workshop You can also use this Best Practice Blueprint to facilitate your own project accelerator workshop within your organization using the workshop slides and facilitation instructions provided in the Appendix. Book your workshop now by emailing: WorkshopBooking@McLeanCo.com WorkshopBooking@McLeanCo.com Best Practice Blueprint Free Guided ImplementationOnsiteWorkshops * Gold and Silver level subscribers only Or calling: 1-877-281-0480 Ext. 3001 There are multiple ways you can use this McLean & Company Best Practice Blueprint in your organization. Choose the option that best fits your needs:

5. McLean & Company5 Guided Implementation points in the Employee Value Proposition project Book a Guided Implementation Today: McLean & Company is just a phone call away and can assist you with your project. Our expert Analysts can guide you to successful project completion. Here are the suggested Guided Implementation points in the EVP project: Section 1: Uncover your organization’s EVP. Review the process and any pitfalls in creating your organization’s EVP. Discuss the formatting of the EVP, and identify ways to improve your current draft. Section 2: Road test and revise your EVP. Discuss the results of the internal road test. Review the scores for the 3A 1D criteria and establish next steps. Discuss the results of the external road test. Review the scores for the 3C 1D criteria and identify and create a plan to improve scores. Section 3: Adopt the EVP in your organization. Evaluate the alignment of your organization’s programs and policies and how they currently support or detract from your organization’s EVP. Discuss the remediation plan and means to increase alignment. To enroll, send an email to GuidedImplementations@McLeanCo.com or call 1-877-281-0480 and ask for the Guided Implementation Coordinator.GuidedImplementations@McLeanCo.com This symbol signifies when you’ve reached a Guided Implementation point in your project.

6. McLean & Company6 What’s in this Section:Sections: The case for uncovering the EVP Uncover your organization’s EVP Road test and revise your EVP Adopt the EVP in your organization Appendix Understand what the EVP is and the link between it and other common Human Resources terms. Learn the four components of a successful EVP. Know the benefits for an organization with a strong EVP.

7. McLean & Company7 A formal EVP is a critical tool in attracting, retaining, and engaging the best talent for your organization McLean & Company defines the Employee Value Proposition (EVP) as: a unique and clearly defined set of attributes and benefits that captures an employee’s overall work experience within an organization. An authentic representation of the employee experience, not just a slogan. Closely aligned with organizational culture. Present in all organizations, whether or not it is formally documented and labeled as the EVP. Fundamental to all stages of the employee lifecycle – it describes why a candidate would want to work for your organization, and why a current employee would want to stay. A tool that guides investment in programs and policies. It allows HR managers to check whether they are making decisions or creating policies that align to the EVP. Short and succinct. If the EVP gets too wordy or detailed, its value diminishes. The EVP is: About what the employee can do for you, but about what you can do for the employee. A list of programs and policies. An annual project, but one that should be completed every 3-5 years and refreshed annually based on sustained relevancy. The EVP is NOT: The EVP work is what HR is all about, and everything else should be in support of that work. If the idea is to create a highly engaged, highly motivated workforce that can deliver results while being clear on the value proposition, you can't get there without this work. - Orlando Ashford, CHRO at Marsh and McLennan Cos, qtd. in Fox

8. McLean & Company8 Make sure you know the difference between terms – have clear, distinct definitions in your organization. Don’t get the EVP confused with other commonly used terms in Human Resources The employee value exchange refers to the balance between the rewards that the organization offers (employee value proposition), and what it expects in return, such as hours of work, productivity, etc. Your employer brand is the external manifestation of the EVP. Organizations can use and leverage the EVP to create a strong employer brand. Your organizational values are used to test the organizational alignment of your EVP. Total Rewards refers to a comprehensive, detailed list of Total Compensation, Performance & Recognition, Learning & Development, and Culture & Work Environment offerings and initiatives. The EVP is a high level, overarching statement with which the Total Rewards offerings should be in alignment. Performance & Recognition Total Compensation Learning & Development Culture & Work Environment Total Rewards Employee Returns (outputs) Employee Investments (inputs)

9. McLean & Company9 Companies with a highly engaged workforce demonstrate: An average revenue growth of 20.1% over three years, which is much higher than the 8.9% peer average. An earnings growth over three years that is three times higher than the peer average. (Source: Bloomberg Businessweek, 2009) In 2012, organizations with engagement levels that were: Higher than 72% posted total shareholder returns 50% higher than the average organization. Less than 46% posted total shareholder returns 50% lower than the average organization. (Source: Trends in Global Employee Engagement, Aon Hewitt, 2013) EVPs can have a positive influence on employee engagement which drives business performance and shareholder returns Organizations that are perceived to be delivering on the EVP promises enjoy substantially higher levels of employee commitment. This results in improved performance and retention, where the probability of an individual leaving could be reduced by as much as 87%. -- David Fairhurst, Chief People Officer for McDonald’s Europe, qtd. in Fox The Employee Engagement Value Chain Performance (Effectiveness + Efficiency) Retention Creativity Engaged employees drive: Performance, retention, and creativity drive: Increased Revenue Decreased Costs Profitability & Shareholder Value The Bottom Line Impact

10. McLean & Company10 A strong EVP leads to a wide variety of positive HR outcomes A clearly defined and differentiated EVP acts as a filter to attract candidates best suited to what your organization offers. Over and above details about the job let candidates know what their work experience will be like. Use the EVP to let them know so that: o “Good-fit” candidates may increase their effort during the hiring process. o Doubtful candidates may self-select out of the hiring process. A strong and attractive EVP can provide an organization with access to candidates in the passive job market. o In a 2013 study completed by the Novo Group, 46% of respondents said: “I am happy with my job and not actively looking for another but would be open to other opportunities.” An EVP is a great way to tap into this talent pool. Increased recruiting efficiency and lower recruitment costs Increased alignment of HR with the business The EVP helps align HR’s decisions with the strategic direction and values set by the organization, which in turn influences the way employees interact on a day-to-day basis with each other and with clients. Increased retention and lower turnover costs Communicating a formal EVP to employees helps them understand what guiding principles the organization will use to set the HR agenda and how HR makes program and policy decisions; this is shown to increase retention. New hires join an organization based largely on the EVP message that they hear in the job market. When the internal employee experience reflects the EVP, new hire retention increases. Overall result: a better fit between candidates, the position, and the organization. This will boost current employee morale and attract, retain, and engage employees.

11. McLean & Company11 McLean & Company categorizes the EVP into four key components Employee Empowerment Development Rewards & Recognition Co-worker Relationships Manager Relationships Culture Customer Focus Organization Potential Department Relationships Senior Management Relationships Compensation Health Benefits Retirement Benefits Vacation Work/Life Balance Working Environment Compensation & Benefits Working Conditions Organizational Elements Day-to-Day Job Elements Communicate the high level themes regarding what employees value the most in each of the four categories. Ideally, the EVP should: Employee Value Proposition

12. McLean & Company12 McLean & Company Helps HR Professionals To: hr.mcleanco.com Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies Sign up for free trial membership to get practical solutions for your HR challenges "McLean & Company provides practical research, tools and advice covering the entire spectrum of HR & Leadership issues to ensure you experience measurable, positive results." - Rob Garmaise, VP of Customer Experience Toll Free: 1-877-281-0480