Tuesday, July 29, 2008

Employer Positioning

When generating synergies between marketing and HR, one can not overlook learning from Levi Strauss or Nike. Both corporate giants offer tailor-made products to fit unique needs and desires of every individual customer.

HR departments already recognize the need to position their companies in job markets. They draft, declare, and communicate the company’s value proposition to employees and candidates. An Employee Value Proposition (EVP) in the form of a statement of why the total work experience at a given company is superior to that of another is however not enough.

EVP must be real in terms of what the employee receives from the company for their commitment and the contributions they are expected to make. VOI2C2E is a framework for detailing elements of an EVP*:

Vision. The firm has a clear sense of the future that engages hearts and minds and creates pride among employees.
Opportunity. The work provides a chance to grow both personally and professionally, and to develop skills and knowledge that promote present and future employability.
Incentive. The compensation package is fair and equitable, including base salary, bonus, and other financial incentives.
Impact. The work itself makes a difference or creates meaning, particularly as it connects the employee with a customer who uses the employee’s work.
Community. The social environment includes being part of a team (when appropriate) and working with co-workers who care.
Communication. The flow of information is two-way, so employees are informed about what is going on.
Experimentation. Working hours, dress, and other policies are flexible and designed to adapt to the needs of both the firm and the employee.


Obviously, different employees will rank the importance of each element of this framework on their own accord. Therefore, an effective EVP will personalize the agreement so employees who meet expectations will be rewarded with VOI2C2E elements that matter most to them.

So, it is not only vital to differentiate the company from other companies. Just like Levi Strauss and Nike can address customers’ unique preferences, HR ought to differentiate the EVP for each employee.

The goal of HR should not be so much attempting to differentiate the company from other companies, as putting people first and differentiating effectively between them. This sort of flexibility from an EVP can build true commitment among employees.


* Ulrich, Dave, & Brockbank, Wayne (2005). The HR Value Proposition. Boston, MA: Harvard Business School Press.

Tuesday, July 22, 2008

Job Branding

Job branding is yet another concept that brings the principles of marketing and HR together in order to attract and retain talent.

Essentially, this is a technique to increase the importance of the job by tying it directly into the company’s strategy, vision, or an important initiative or major project. Accordingly, candidates and employees can clearly see growth opportunities that come with successful performance, i.e. what they can learn, do, and become.

Surprisingly though, job branding is only becoming fashionable now. But, tying each job in some way to the company’s strategy should have been HR’s task for decades. How else could HR have determined the need for new positions or additional staff in certain positions?

Or is it that simply with growth, companies hire more and more employees who do not (recognize how they) create value and whose work does not connect to the company’s strategy?

True, some jobs can be more directly connected with strategy than others, and there are jobs that are absolutely strategy-general, e.g. switch-board operator. However, a clear sight between employees’ work and value creation must be sought to create a win situation; for employees, customers, or shareholders.

Tuesday, July 15, 2008

Outsourcing and Culture

From a strategic HR standpoint, outsourcing should be considered when different company functions exhibit different cultures and assert conflicting cultural expectations. The same holds true when handling different business units that require different business strategy and thereby a distinct HR strategy*.

“One organization created a new company to market a product it developed because the reward systems required sales force effectiveness which was culturally incompatible with the values and beliefs of the rest of the organization. In another organization, the information system function was outsourced because the required culture of supporting continuous and dramatic innovation did not fit the rather pedestrian needs of the rest of the organization.”


Nevertheless, business leaders can still agree that cultural differences are acceptable or manageable across an organization. As an example, The Four Seasons organizational culture strongly advocates and supports a business strategy of customer intimacy to deliver world-class experiences for guests; whatever it takes! But, the organization’s billing and procurement function adheres to adding value through efficiency and cost-reduction.

When companies deliberate outsourcing decisions, they should seek out HR contribution. HR needs to analyze the subcultures in an organization in addition to the more traditional outsourcing assessment which concentrates on strategic importance, cost, and quality** for sourcing capabilities.


* Greene, Robert J. (1995). Culturally Compatible HR Strategies. HR Magazine. Vol. 40, June 1, pp. 115-122.
** Gottfredson, Mark; Puryear, Rudy, & Phillips, Stephen (2005). ”Strategic Sourcing: From Periphery to the Core”. Harvard Business Review. Vol. 83, No. 2, March. pp.132-9.

Tuesday, July 8, 2008

Creativity in the Creative Industry

Creativity is a subjective area. After all, certain creative businesses are more creative than others and there are ones which are not perceived as creative at all by their peers. Nonetheless, probably all of these creative enterprises will call “creativity” as their core competency. Creativity is the human ability to see things differently and have original ideas. Thus, talent is an essential asset for creative enterprises.

When a shortage of talent prevails, debates ignite over whether talent is born or made. In respect to leadership, the current mainstream conclusion dictates that Leaders are born and they are always made. In respect to creative talent, an increasingly common belief is that everyone has creative potential; which has to be unleashed by removing “mental locks”. In particular, the training industry and consulting which focuses on innovation are based upon this premise and consequently strive to contradict the old proverb, “You Can’t Teach an Old Dog New Tricks”.

Through an appropriate organizational culture, supportive and physical environment, creativity can be set free, fostered, and capitalized. Beyond literally thousands of tips to boost creativity, there are also a gazillion approaches, tools, and techniques. A few recent concepts to unleash creativity include Mid-level managers as key enablers, Appropriate and targeted training as intensive and thorough as the one of golf players or Thinking from Inside of the Box. Let us also not forget OD specialists and interior designers; these professionals can help release creativity by transforming companies’ workplace environment.

The point of the story is:
If you cannot buy talent (recruit), then build it (invest in training). If you can buy talent, then make sure you do not scare it away. In both cases, bind talent (retain) and build the best climate conducive for creativity. Otherwise, someone else will!

Tuesday, July 1, 2008

Name Game

A recent American study of first names* showed that the name an individual carries has a significant impact on how he or she is viewed, and conceivably, whether or not the individual is hired for a job.

More specifically, researchers found that common names were seen as least unique, best liked, and most likely to be hired. Unusual names were seen as most unique, least liked, and least likely to be hired.

The findings may not necessarily relate to the real world since the study was conducted in a laboratory situation. But, it is also worthwhile to keep in mind that research exists showing a strong correlation between an individual's attitudes and subsequent behavior.

Importantly, there are several practical implications of the study’s findings. These may also be considered in countries like China.

Because of bias in how people perceive names and for easier communication, Chinese employees routinely choose Western names when dealing with foreigners. Thus, when selecting a name, they may want to reconsider choosing distinctive or unique names as Purple, Sugar, Jelly, Fish, Candy, or Shellboy to name a few, so as to avoid any possible dislike of the name during their professional career.

For HR professionals, they need to be aware that there seems to be a clear bias in how people perceive names. When CVs are screened for hiring purposes names (just like pictures) should be left off to avoid potential discrimination. Alternatively, applications and CVs could be routed to hiring managers with initials only or applicant numbers.


*Cotton, John L.; O'Neill, Bonnie S.; and Griffin, Andrea (2008). The “name game”: affective and hiring reactions to first names. Journal of Managerial Psychology. Vol. 23. No. 1. pp. 18-39.