Getting to grips with Corporate Values, EVPs and Employee Engagement

I was asked recently to explain the different roles played by an Employee Value Proposition and corporate values in enhancing employee engagement.

It was one of those questions where the answer appears self-evident but attempting to give a succinct explanation left me sounding like a stuttering fool so, naturally, I’ve been pondering it off and on ever since and these are some of my conclusions / findings:

In developing my ‘elevator speech’ in response to the above question, I first needed to define what I understand by employee engagement.  The best description I found was in a White Paper entitled Developing Stronger Corporate Brands Through Employee Engagement by consulting firm Organisational Effectiveness Strategies. This identified two fundamental aspects of employee engagement: cognitive (intellectual) – when employees are sure about their job requirements and role expectations, and emotional – when employees feel they have good friends at work and are being supported personally as well as professionally.

In his article The employee value proposition: How to be an employer of choice, Stewart Black, INSEAD Affiliate Professor of Organisational Behaviour, identifies four main categories that a good Employee Value Proposition (EVP) should cover:

Leadership: Black highlights strong leadership as “the single most powerful feature in motivating and retaining employees”, and high potential employees will inevitably be interested in what the company is doing to identify and develop leaders from within.

Company: encompassing everything about the firm – reputation, values, culture and its contributions to the world and the community.

Job: in essence employees want to know how much freedom, autonomy, growth and challenge do they have in the job that they are asked to do? How interesting is the job?

Rewards: covering both the tangibles – wages and benefits, and intangibles such as career prospects, development opportunities and social contact with co-workers.  

A good EVP will encapsulate the mutual expectations and promises agreed on by both sides.  The best EVPs are versatile and can be customised for different groups of employees. Constant communication between employees and employers is required for this ‘contract’ to continue to be meaningful.

Corporate values, on the other hand, should be fundamental and enduring; core ideologies that indicate a sense of purpose beyond money-making, that will help steer the organisation through bad times as well as good.

However values, per se do not drive the business; they drive the people within the business. Research shows that employees who believe their company’s leaders support and live the corporate values are much more committed to the organisation.  Values must be seen to be guiding the actions and behaviours of people at all levels of the organisation if they are to be a true differentiator and not just a compilation of platitudes.

 

Advertisements

About madeleinekavanagh

Internal comms specialist with a career spanning advertising, car sales and management consulting. My greatest legacy (so far) - my son!
This entry was posted in Business Leadership, Corporate Values, Employee Engagement, EVP, Internal communications. Bookmark the permalink.

One Response to Getting to grips with Corporate Values, EVPs and Employee Engagement

  1. Ian Johnson says:

    While an EVP can be boiled down to an informal contract describing a series of things a set of people in the organisation will deliver for the individual in return for the individual doing their part, there is no such simple reduction of the ‘concept’ of Corporate Values. Part of the reason for this, in my opinion, is that the concept makes no sense. The way it’s usually presented is largely devoid of intellectual rigour.
    Starting at the top of the list of issues, corporations are reifications of an ongoing process – ‘the organisation’ should be thought of as a verb far more than a noun. How does a process/verb have ‘values’?
    Values are held by the individuals within whatever arbitrary boundary you use to define the process of organisation, perhaps your chosen boundary contains all those people paid a salary by the legal entity that relates to the organisation, but if you are considering the “values” exhibited by the members of that organisation, and what influences them, you have to think wider than than just the paid staff. So not only is the idea of ‘values of the organisation’ troublesome, but the definition of “the organisation” in this context is equally difficult.
    That leads to the next fallacy; namely that you can ever have ‘aligned’ values through some sort of senior management or organisational development edict. To align values you have to ‘programme’ the values sets of the multitude of individuals inside and outside “the organisation”. An impossible task.
    There is, however, an evolutionary, ongoing, movement in what is deemed acceptable behavior in any group of people which is influenced by every interaction anyone in that group has, but with a disproportionate influence by the ‘most influential’ participants in that group, which in our case may be the senior management. It is influenced by, but never controlled by them. Yet in retrospect, when the post implementation review comes around, we pick out the data that supports our assumptions and ideologies, ignore the rest, so that we can declare the embarassingly high investment in our “corporate values initiative” a sucess.
    So in summary I’d suggest the difference is that one is a two way contract and the second is an ignorant simplification of a highly complex ongoing process exploited by management consultants to create a revenue stream.
    Discuss.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s