How to win the battle for talents by

How to win the battle for talents by building a compelling employer brand Can You Clone Your Talents? Rita Veres, Engagement Practice Leader, Central Eastern Europe, Hewitt To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.

About Hewitt Our services encompass the entire spectrum of HR consulting and outsourcing Process Strategy Retention & Talent Management Organizational Change Leadership & Management Development Mergers & Acquisitions Compensation & Rewards Benefits & Actuarial 2 Delivery HR Process Outsourcing Payroll & Benefits Outsourcing HR Efficiency & Effectiveness

Unstoppable Trends in Workforce Management 24/7 virtual workplaces Shrinking workforce In-charge workforce Mobile workforce Ultradiverse workforce 3 Source: Robert Gandossy, Elissa Tucker, Nindhi Verma (Hewitt Associates): Workforce Wake Up Call – Your Workforce is Changing, Are You? , John Wiley & Sons Inc. 2006

„Women are recruited to be masons in Poland… … 1 million people have left Poland to abroad, since the EU accession in 2004. ” 4

What Do Data Tell Us? Natural annual growth of European population is 0, 04%. * Talent shortage in the CEE region Proportion of elder generation is getting more significant in the society, but not in the labour market* *Europen Commission, Green paper on challenges of demographic changes 2005 Fierce war for talent Rising employee expectations and confidence 83% of HR professionals working in CEE believe that, within 3 -5 years, attracting and motivating talent will have become the most significant people issue they face. 71% of leaders see the attraction and retention of talent as the key issue for the coming three to five years Almost 50% of employees think that they could find a new job easily 52% of those surveyed are not afraid of losing their jobs Source: Hewitt: The Changing Chemistry of Employee Motivation, Best Employer Study Central Eastern Europe 2006/2007 5

„Your Workforce is Changing, Are You? ” Being at the beginning of a seismic shift in the workforce. . . we need to rethink our approaches to managing talent: Get the Talent Forecast and Workforce Strategy Right Revitalize the Talent Entry Processes Treat Talent Well Embrace New Age Leadership Source: Robert Gandossy, Elissa Tucker, Nindhi Verma (Hewitt Associates): Workforce Wake Up Call – Your Workforce is Changing, Are You? , John Wiley & Sons Inc. 2006 6

What is Your Challenge? Attracting the best people to Your organization Retaining the best talents on long-term 7

The Employee Lifecycle Awareness Apply Offer Don’t Apply No offer Accept Reject Join Stay Re-Engage Leave Alumni 8

It is Easy to Develop Interesting Words… Energy Opportunity Growth Teamwork Imagination Value Diversity Personal responsibility Challenge Career planning Right attitude Valuing people Value diversity Achievement Compelling rewards Multinational environment Continuous development 10

… but Much Harder to Deliver on the Promise 11

Does Delivering on the Words Matter? 12

Making the Love Affair Last… 51% End of the honeymoon The image of this organization as an employer is consistent with my experiences working here. Divorce? 13

The Employee Value Proposition A specific „promise” The organization’s end of the deal of value What’s in it for me-functional, economical, psychological benefits to your target audiences Candidates and employees that is differentiating, compelling, and authentic What makes the organization stand apart in the minds of candidates and employees and it is consistently delivered through all touch points. Communication, programs, policies, delivery 14

+ HARMONIZED ALIGNED CREDIBLE = + COMPELLING + + DIFFERENTIATING 15 Employee Value Proposition

Building Employee Value Proposition FIRST • Truly understand: ― The business context ― The CVP ― Organisational capability requirements ― Current EVP ― Current Engagement drivers ― Desired values FOURTH • • Develop and implement a migration plan that prioritises the action steps required to align the people and culture processes and systems to the value propositions Measure the impact of the new EVP SECOND • Understand the Context 1 Create the Value Propositions 4 • 2 Deliver the Value 34 Connect with Employees THIRD • • • 16 Create value propositions that are aligned to organisation capability and that define the desired work experience: ― Includes a promise line, statement and standards Create internal brand positioning statement Develop a branding strategy that is in keeping with the Value Propositions and in line with the migration plan outlined in Step 4 Determine key enablers Leadership to actively communicate the what and why of new Value Propositions

Creating an Employment Brand Integrate with the Company Value Proposition: Company Value Proposition Who are we? Customer Value Proposition What do we stand for? Employee Value Proposition Shareholder Value Proposition 17 Why are we here? Community Value Proposition

What is an Employment Brand? Employment Value Proposition (EVP) Functional Benefits Economic Value Psychological Benefits The image that employees and others have about the type of employer an organisation is. It gives current and potential employees information about the ‘employment experience’ or ‘the deal’. Defines what is in it for the employee as well as what is expected of them. It answers questions like: What is this job like? What will I be doing in this job? How will I develop professionally and personally? How will I be rewarded? What can I expect in return for my efforts? What will I be a part of? What will I belong to? How will I feel? How will my efforts help drive a greater mission? Source: Abler, Tim and Simon Barrow, “The Employer Brand, ” The London Business School (08/1996) 18

An Example—Ritz Carlton: “Ladies and Gentlemen Serving, Ladies and Gentlemen” Functional Benefits What will I be doing? How will I develop? I will be serving the world’s elite. I will be given extensive training on how to execute my job exceptionally well. I will be a service professional and will be treated with dignity and respect Economic Value How will I be rewarded? I can expect to receive market level cash compensation with above average perks! Psychological Benefits How will it make me feel? What will I be a part of? I will be part of one of the world’s most elite hotels. I will feel special 19

Let’s Learn from the Marketers In developing an Employment Value Proposition (EVP), we should take the key learnings from the development of a Customer Value Proposition (CVP) Customer Value Proposition Why Do Business With Us? Employment Value Proposition The Experience Customer Promise Employee Promise How We Pull It Off People, Processes and Programs Core Capabilities Customer Attraction, Retention, Profitability The Results Employee Attraction, Retention, Profitability 20

Successful Organisations are Marketing their Value Proposition on Two Fronts Hewitt Best Employers use the value proposition to build powerful brands that are targeted both externally and internally The holy grail is an aligned value proposition Customer Market External Brand Employment Value Proposition Source: Hewitt’s Survey on “Emerging Trends in Internal Branding” 21 Internal Brand Talent Market

Let’s Learn from the Marketers Employer Brand versus Customer Brand *Source: External employer brand research in CEE by Hewitt, 11, 000 respondents 22

The Employee—Customer Mirror Freedom Begins with Me Southwest Airlines The Freedom to Fly Ladies and Gentlemen… The Ritz-Carlton …Serving Ladies and Gentlemen Simply Palm Simplicity at Work 23

How To Make It Alive? 24

What’s in It? 25

Together, We Grow, Excel and Succeed! u Together means we achieve through teamwork. u We means all of us regardless of positions. u Grow means that we provide development opportunities for our people to grow with our company. u Excel means we persistently drive for continuous improvement. u Succeed means we consistently achieve our desired outcomes. EVP Tagline Promise Statements We live our EVP every day by making sure that our behavior in the workplace follows the Guiding Principles u We trust, respect and support each other to achieve our goals. u We are flexible and receptive to change. u We seek opportunities for growth as individuals and as a company. 26 u We encourage each other to take initiative and innovate. u We are accountable for our performance and success. Guiding Principles

Akik már „megcsinálták”! 27

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Our Points of View Delivering the EVP is more important than creating it Consider the effort a Company effort, not an HR effort Obtain senior management support right from the beginning Connect to the company strategy early in the project Work with a cross–functional team right from the beginning Understand the current (albeit not articulated) EVP before developing a new one Connect with your people throughout the process 31

Your Contacts at Hewitt Rita Veres Hewitt Associates B. V. Hungary Váci street 33 1132 Budapest Dir +36 1 – 8011 Fax +36 1 – 801 8001 Mob +36 20 – 519 5209 rita. veres@hewitt. com 33