October 13, 2011

Employee Engagement Seen Through the Lens of the Employee Value Proposition (EVP)

William H. Macey, Ph.D. (Valtera)

The choices people make identifies their values.  Because each choice implies a trade-off, people will reveal what they truly want when they choose one option over another.  What specific attributes did Option A have and not have, and why was Option A chosen over Option B?  This type of research not only helps in understanding the values of individuals, but it can also help in predicting behavior, such as what will make a person leave a position, join a union, or choose a particular benefit plan.  

Because values differ from person to person, it is beneficial to classify people into sub-groups based on their common preferences.  Dr. Macey showed an example where he surveyed preferences for two job options, which varied in the attributes: union status and dues, pay, management quality, and voice.  Based on preferences, using a Multinomial (Conditional) Logit Model, there were seven segments of people, which all varied in attribute preferences.  For example, individuals that fell in segment two showed pay and good management to be most important; segments three and five showed pay to be most important with variations in the other attributes; and segment six showed non-union status to be highly important.  As an organization, it is possible to target groups of individuals based on their preferences.

Attributes of the Employee Value Proposition

Since Jurgensen’s pioneering work in the 1940s, the attributes we value as an employee have not changed much (e.g., advancement, benefits, coworkers, hours, pay, security, supervisors).  Attributes such as fairness, autonomy, teamwork, and participation in decisions are also important to the modern-day worker.  When comparing major demographic groups using the clustering tools mentioned above, there are a few differences.  For instance, the only major gender differences found is that women value flexibility more than men.  In regard to age, younger people most value advancement, and older people care most value retirement.  National differences show U.S. workers valuing flexibility much more than other countries (e.g., Canada, China, Hong Kong, Netherlands).  U.S. workers differ significantly from the other countries because we hold little value in empowerment and commitment to the community.  

To understand what employees value, whether it is pay, security, or advancement, is a key step in facilitating engagement.  No organization can have everything, but targeting those that value what your organization can offer is a good strategy to ensure an engaged workforce.  Engaged employees are those who are getting what they want and expect out of the organization.


Reported by: Ashley Busing