ASIA CONFERENCE ON BUSINESS AND ECONOMIC STUDIES

ASIA CONFERENCE ON BUSINESS AND ECONOMIC STUDIES 94 Analyzing Organizational Elements of Employee Value Proposition The Employees Perspective Avinash Pawar Rajiv Gandhi Business School, India Abstract[.]

Analyzing Organizational Elements of Employee Value Proposition:

The Employees Perspective

Avinash Pawar

Rajiv Gandhi Business School, India

Abstract

Today's dynamic business environment has created new challenges for IT companies Especially, the human resource of companies face various issues regarding attrition, turnover, talent attraction, talent

management, manpower planning and employer branding etc

The Employee Value Proposition (EVP) helps to state what the organization would most likely to be linked with an employee and defines the “give and get” of the employment agreement It has become meticulously

associated at the center to the notion of employer branding and talent management It also serves as an

organizational strategy to deal with various challenges of HR and Marketing IT industry in India has grown

in multiple folds and earned respect and revenue in the world This knowledge intensive sector faces various

problems of engagement, attrition, retention etc and concerned about the attracting and maintaining the good

talent in the organization

The organizational elements plays a vital role in developing a unique employee value proposition which helps to develop a good brand, talent attraction and sustainability of the organization, This paper analyses the

organizational elements of employee value proposition from the perspectives of the employees working in IT

companies in India The primary data is collected using a structured questionnaire from employees working

in IT companies The outcome of study shows the difference of levels (Current and Expected) of organizational

elements (Internal and External) from the employee’s perspective

Keywords: Employer Branding, Employee Value Proposition, Organizational Strategies, Human Resource

Marketing

1 Introduction

Employee value proposition is a correct balance of the offerings and benefits provided to employees for the contribution and performance in the organization Employee value proposition gives the clarity and a

better stage for enriching the employer brand and employee experience Employee value proposition is

creating a win-win situation for employer and employees in the organization This can be visible enough

through employee motivation and commitment and organizations return on investment Which makes this

employer and employee relationship more meaningful and fulfilling.1

The organizations with well-aligned employee value proposition can significantly attract top talent from the market, increased levels of employee commitment and require less compensation to attract the talent

Hence, organizations needs to have a formal employee value proposition which is documented, evaluated and

communicated for current and future employees Developing an Employee value proposition can act as a

differentiating strategy for organizations to ensure the availability of right people with right skills It is a

connecting link between employee and employer A successful organization provides a differentiated

experience and a better career path to employees which can be adopted using a well-designed employee value

proposition As IT industry is highly dependent on employees, to attract and keep the talented employees,

companies are required to develop a unique employee value proposition for employees.2

Employee value proposition is an integrated approach of human resource and marketing management in the organization Employee value proposition is also called as a tool of talent management and employer

branding of the organization Employee value proposition is an organizational strategy focused and aligned

with current and prospective employees In order to develop a good brand and increase the talent attraction

of the organization the employee value proposition should be compelling and unique Hence, to become an

employer of choice for the employers needs to transform the HR functions of the organization through a

well-defined employee value proposition which results in better attractiveness, commitment and profitability.3

1.1 Objectives of Study:

To analyses the organizational elements of employee value proposition

To know the gap between current and expected levels of organizational elements

To understand the most important organizational elements

2 Literature Review

Jublee, D & Kavitha, G., (2015)4 discussed about the essence of what the organization stands for and should typify the fundamental nature of the organization This is the process of placing an image of being a ‘great

place to work’ in the minds of existing and prospective employees

Rathore, H (2014)5 deliberated that, “the strategy employed by an organization to create an Employer Value Proposition (EVP) that would convey to desired current and prospective employees why the

organization is unique, appealing and a fantastic place to work in EVP are communicated through company

actions and behaviors and evoke emotive and rational benefits for current and prospective employees”

Kennedy, K (2013)6 has expressed his views on the difference between Employee Value Proposition and Employer Branding According to him “many organizations have begun to define the employee experience in

their company, and many have taken steps to add internal departments focused on the work of branding and

communicating this experience Employee Value Proposition and Employer Brand are two sides of the same

conversation

Hewitt, A (2012)7 debated about “a strong employee value proposition is consistently valuable to employees across the world’s regions Companies create strong EVPs when employees are clear on

performance expectations and feel that their employers in turn deliver on promises to them Strong EVPs are

highly engaging A strong employee value proposition is about clarifying the employment contract

articulating what they expect and in turn delivering on what employees expect”

Lau, F (2009)8 expressed that, “An employee value proposition is the value or benefit an employee obtains through employment, simply put the value of an organization’s employment experience Developing an EVP

has become the key to success in acquiring talent

Minchington (2005)9 defined an Employee Value Proposition as a set of associations and offerings given by

an organization in return for the skills, experiences and capabilities an employee brings into the organization

It is an employee centered method that is aligned to existing, integrated manpower planning strategies as it

has been well-versed by existing employees and the target external audience

3 Methodology

• Research Design: Descriptive Research

• Data Collection: Survey Method

Tool: Structured Questionnaire Scaling: 5-Point Likert Scale Sampling: Non Probability Convenience Sampling Element: Employees working in IT Companies Sample Size: 512 employees

The designed and adopted methodology helps and suffices the purpose of this research study

3.1 Hypothesis of Study:

H0: There is a no significant difference in organizational elements from employee’s perspective

H1: There is a significant difference in organizational elements from employee’s perspective

4 Data Analysis

4.1 Element Identification:

The researcher has identified following factors associated with the organization The analysis is done

by considering these elements

Table 1: Elements of Organization

Internal External Organizational Stability

Growth Rate Diversity Empowerment Product/Service Quality Size of Organization Risk Taking

Informal Environment Technology Level Respect

Ethics

Employer Recognition Industry

Market Position Brand Awareness Customer Reputation Social Responsibility Environmental Responsibility

4.2 Scatter Diagram:

The scatter diagram shows the relationship between organizational elements and Employee Value Proposition of IT Companies

Figure 1: Scatter Diagram of Organizational Elements

The scatter diagram shows that as the organizational elements increases, so is the Employee Value Proposition The positive correlation may exist between organizational elements and Employee Value Proposition

4.3 Elements Analysis

The elements analysis is done by analyzing the current and expected levels along with the mean rank and sum of ranks

Rank

Sum of Ranks

Total 1024

Table 2: Mean Rank Analysis for Organizational Elements

4.4 Levels for Elements:

The analysis in terms of current level and expected level is computed The difference in both of the

levels for all internal and external organizational elements are evaluated

No Organizational Element Current Level Expected Level Difference

Internal O rganizational Ele ments

1 Organizational Stability 399.74 625.26 225.52

2 Growth Rate 363.35 661.65 298.30

3 Diversity 501.35 523.65 22.30

4 Empowerment 405.88 619.12 213.24

5 Product/Service Quality 405.19 619.81 214.62

6 Size of Organization 566.45 458.55 -107.90

7 Risk Taking 425.52 599.48 173.96

8 Informal Environment 487.81 537.19 49.38

9 Technology Level 471.68 553.32 81.64

10 Respect 366.71 658.29 291.58

11 Ethics 411.07 613.93 202.86

No Organizational Element Current Level Expected Level Difference

External Organizational Elements

1 Employer Recognition 417.03 607.97 190.94

2 Industry 423.80 601.20 177.40

3 Market Position 477.37 547.63 70.26

4 Brand Awareness 436.27 588.73 152.46

5 Customer Reputation 479.34 545.66 66.32

6 Social Responsibility 468.78 556.22 87.44

7 Environmental Responsibility 461.00 564.00 103.00

Table 3: Levels and Difference of Organizational Elements

The difference between the current level and expected level of organizational elements from the employee’s perspectives is computed This will further help to grade and rank these factors to know the most important

factors which affects the employees working in IT companies in India

Chart 1: External Organizational Elements

Recognition Awareness Reputation Responsibility Responsibility

Chart 2: Internal Organizational Elements

4.5 Grading and Ranking of Elements:

The grading and ranking of elements is done using the difference, mean rank and sum of ranks for

each element

Rank Organizational Element Difference Mean Rank Sum of Ranks

1 Growth Rate 298.3 661.65 338764.00

2 Respect 291.58 658.29 337044.50

3 Organizational Stability 225.52 625.26 320131.00

4 Product/Service Quality 214.62 619.81 317340.50

5 Empowerment 213.24 619.12 316991.00

6 Ethics 202.86 613.93 314333.00

7 Risk Taking 173.96 599.48 306934.50

8 Technology Level 81.64 553.32 283301.00

9 Informal Environment 49.38 537.19 275040.00

10 Diversity 22.3 523.65 268107.50

11 Size of Organization -107.9 458.55 234776.00

Table 4: Ranking of Internal Organizational Elements

0

100

200

300

400

500

600

700

Rank Organizational Element Difference Mean Rank Sum of Ranks

1 Employer Recognition 190.94 607.97 311278.50

2 Industry 177.4 601.20 307814.50

3 Brand Awareness 152.46 588.73 301427.50

4 Environmental Responsibility 103 564.00 288767.00

5 Social Responsibility 87.44 556.22 284787.00

6 Market Position 70.26 547.63 280385.00

7 Customer Reputation 66.32 545.66 279380.00

Table 5: Ranking of External Organizational Elements

The rank for the expectation of the employees is understood by the difference (Current and Expected Levels) and sum of ranks This helps us to understand the most important internal and external organizational

elements This also shows the importance levels of these elements in IT companies in India which can help the

IT companies to strategies for organizational effectiveness and develop a good employee value proposition

4.6 Hypothesis Testing:

The hypothesis is tested with the Mann-Whitney test for all the organizational elements The null and alternate hypothesis are as follows

H0: There is a no significant difference in organizational elements from employee’s perspective

H1: There is a significant difference in organizational elements from employee’s perspective

Factor Whitney U Mann- Wilcoxon W Z (2-tailed) P value

Organizational Stability 73341.000 204669.000 -12.861 000 Growth Rate 54708.000 186036.000 -16.807 000 Diversity 125364.500 256692.500 -1.296 195 Empowerment 76481.000 207809.000 -12.381 000 Employer Recognition 82193.500 213521.500 -11.082 000

Product/Service Quality 76131.500 207459.500 -12.290 000 Industry 85657.500 216985.500 -10.356 000 Size of Organization 103448.000 234776.000 -6.172 000 Risk Taking 86537.500 217865.500 -9.876 000 Informal Environment 118432.000 249760.000 -2.855 004 Market Position 113087.000 244415.000 -4.106 000 Brand Awareness 92044.500 223372.500 -8.709 000 Customer Reputation 114092.000 245420.000 -3.845 000

Technology Level 110171.000 241499.000 -4.750 000 Respect 56427.500 187755.500 -16.674 000 Ethics 79139.000 210467.000 -11.685 000 Social Responsibility 108685.000 240013.000 -4.984 000 Environmental

Responsibility 104705.000 236033.000 -5.851 .000

Table 6: Mann-Whitney Test for Hypothesis Testing

As the P value is lesser than 0.05 significance level for all elements except for the factor of diversity It signifies that, alternate hypothesis is accepted and the null hypothesis is rejected It confirms that, there is a

significant difference in organizational elements from employee’s perspective in IT companies in India

5 Findings and Suggestions

The internal and external organizational elements can help the companies for developing the employee value proposition (Ref: 4.1)

There is a positive association between the organizational elements and employee value proposition (Ref:

4.2)

There is difference between the current levels and expected levels for all internal and external organizational elements from the employee’s perspectives (Ref: 4.3, 4.4)

The top internal organizational elements from the employee’s perspective are Growth Rate, Respect and Organizational Stability It is necessary that organization should provide the growth opportunities, respect

people irrespective of designations and should maintain the stability in terms of job and future of employees

(Ref: 4.5)

The top internal organizational elements from the employee’s perspective are Employer Recognition, Industry and Brand Awareness The organizations should have a good recognition in the market for their

products and services and work or operate in the particular industry Companies should also have a good

brand awareness which can be done developing and communicating the brand of the organization (Ref: 4.5)

The internal element of Size of Organization shows that, the expected size is less than the current size of organization which suggest that, employees prefers the smaller organizations It is due to perception that, the

employee’s recognition is lesser in larger originations (Ref: 4.5)

The organizational internal element of diversity is found insignificant which shows that, employees in IT companies do not want more diversity It is due to the different perceptions about the cultural difference in

different states (Ref: 4.6)

There is a significant difference in organizational elements from employee’s perspective (Ref: 4.6) Internal and External Organizational Elements can help the organizations to develop the unique and compelling Employee Value Proposition

6 Conclusion

The Employee value proposition is about defining es sence, identity and uniqueness of the company for employees and it signifies the overall deal bet ween employer and employee The employer makes a deal to

the employee and expects contributions from the employee in return The organizational elements plays a

crucial role in dev eloping a good employee value proposition and helps the organizations to develop and

sustain in f uture and for implementation of good Employee Value Proposition require the IT companies to

under stand the importance of these organizational elements with the perspective of employees There i s a

significant difference observed between the current levels and expected levels for all inte rnal and external

organizational elements from the employee’s perspectives Hence, there is need t o bridge this difference by

developing a good employee value proposition

References

Talent Smoothie (2015) Employee Value Proposition (EVP)

Yates, K and Sejen, L (2011) Employee Value Propositions: Creating Alignment, Engagement and Stronger Business Results, Society for

Human Resource Management webcast, Tower Watson

Hill, B & Tande, C (2006) Total Rewards: the Employee Value Proposition, workspan, October, viewed on 17 Feb 2018, Available at:

www.tandehill.com

Kavitha, G., & Jublee, D (2015) Employer branding in Indian IT companies IJABER, Vol 13, No 2, (2015): 905-912

Rathore, H (2014) Employer branding: a synergistic and reinforcing for an organization International Journal of Transformations in

Business Management Vol No 4, Issue No IV, ISSN: 2231-6868

Kennedy, K (2013) What’s the Difference between the Employee Value Proposition and the Employment Brand? Kenedy

Communications Global

Hewitt, A (2012) 2012 Trends in global employee engagement Aon Corporation Retrieved May, 11, 2018

Lau, F (2009) The Power of Employment Value Proposition Manpower Services Australia

Minchington (2005) Employee Value Proposition A Global Perspective