Topic: HR CASE STUDY

Order Description

Please read the case thoroughly, and write approximately 10 page case analysis addressing the following questions:
– Why is it important to understand thoroughly the various elements of the employee value proposition (EVP)?
– Why would a company want to know what are the most important aspects of EVP for their employees?
– Who is responsible for defining EVP?
– Would there be other elements to the EVP than the listed 38?
– What explains the differences in the preferences in different countries?
– Do you expect that there would be differences in preferences depending on the age, experience and gender of employees?
– After understanding the employee preferences, what should a company do next?
– Would you consider the EVP to mature or evolve over time?
– In your experience, what are the most important aspects of the EVP for the employees in your organisation?
Please also feel free to include any other discussion points.
As discussed, the value of the analysis can be improved by:
– using additional information sources for the analysis (company website, earlier research on the topic, background info on the company,…)
– presenting your own individual thoughts and views on the case
ABSTRACT

In a highly competitive labor market, employee value proposition is becoming a solution
to attract and retain talent. The present case helps the readers to identify the factors of
Employee Value Proposition to build a credible, strategic and competitive EVP at TNT
Express in Kuwait, Bahrain and Saudi Arabia.
The case also focuses on the differences in the choice of factors selected by the
employees of TNT Express in three different countries that will help the HR
professionals in identifying the employee preferences and perceptions in determining the
EVP attributes that matter most to attraction and retention.

INTRODUCTION: WHY EVP?
In today’s world, an array of organizations ranging in all sizes, industries, and
geographies are facing problems of employee retention and of talent shortage. The
consequence of this entire situation has lead to an increased demand in supply
constrained labor markets. This shortage is manifested through a diverse and wide-
ranging set of challenges: a shortage of highly qualified graduates, pending retirements,
an aging workforce, and a lack of experienced talent. These supply problems are coupled
with rising demand for labor, creating two additional issues with which organizations
must contend: high turnover and wage inflation. In combination, these problems threaten
to disrupt operations across the globe, and require organizations to seek new and more
refined methods to attract and retain the talent they need for success.
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In current economic conditions where cost optimization is very important, it is ideal to
execute a system as a means of optimizing the performance of each employee thereby
achieving an efficient organization. Companies have begun to recognize the importance
of EVP. McKinsey and Co. have shown this importance through the statement given by
them which says that “Companies must therefore make talent management a top priority
create and continuously refine their employee value proposition, and source and
develop
talent systematically.
The fact is that to combat the problem of talent management especially attraction and
retention, the Employee Value Proposition needs to be implemented in organizations for
excellence.
Employee Value Proposition (EVP) is a set of 38 important factors (Fig.1) that
employees and labor market perceive as the value gained through employment. It is the
measurement of the balance between what an employee receives from their employer in
return of their performance on the job, a balance between ‘get’ and ‘give’. It drives
attraction of potential candidates and retention of the eXisting employees and it is built
upon the market realities and leverages the organizational strengths therefore aligning
with strategic objectives of the organization (CLC Research, 2006).
Figure-l
TESTING AN EX’P ALt:iNt3 38 ATTRIBUTES
Of all of the potential attributes, which are most important for attraction and retention?
Rewards People
Opportunity Work
D rganlzati on
“The Rewards” “The Opportunity” “The Orglniution” “The Work” “The People”
Compensation – Development – Customer Reputation – Business Travel – Camaraderie
Health Benefits ‘:-‘v”Pl3?5>”‘J-Ilil’iii‘is * Diversity * Innovation * Collegial Work
Retirement Benefits ‘ FUIUI’E Career ° Empowerment * Job Impact EWIFO-nmem
Vacation oppormnmes ‘ Environmental ‘ Job-Interests Alignment ‘ coworker QUHIIW
Organization Grimm Responsibility . Location + Manager Qualit}.r
Rate . Ethics . Recognition + People Management
Meritocrasr . “Great Employer” – Work-Life Balance ‘ Senior Leadership
Organizational Stability Recognition Reputation
Industry
Informal Environment
Market Position
Producc Brand Awareness
v Producc Quality
v Respecc
Risk Taking
Organization Size
Social Responsibility
Technology Level

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SOURCE: CORPORATE LEADERSHIP COUNCIL RESEARCH 2006
An Effective Employee Value Proposition provides organization with three quantifiable
benefits:
Enhanced attractiveness: Organizations with effective Employee Value Propositions are
able to source from a much deeper talent pool in the labor market. According to the
findings by Corporate Leadership Council, 2006, the top-performing organizations draw
candidates from about 60% of the labor market, including “passive” candidates who
would otherwise be content to stay with their current job. Lesser- performing
organizations are able to source only from the most active 40% of the workforce.
Greater Employee Commitment: Organizations with effective Employee Value
Propositions enjoy significantly higher level of commitment from their employees. A
research by Corporate Leadership Council suggests that the most efficient organizations
have 30-40% of their workforce displaying high levels of commitment, compared to less
than 10% in underperforming organization.
Compensation Saving: Organizations with effective Employee Value Propositions are
able to reduce the compensation premium that is required to attract the new candidates.
As highlighted by a study by Corporate Leadership Council, the leading organizations are
able to spend 10% less on base pay as compared to underperforming organizations.

TNT EXPRESS: BRIEF PROFILE

Established in 1946 TNT is now a global integrator and provides its services in more than
200 countries. TNT, through its two divisions, Express and Mail, is part of the global
transportation and distribution industry, and dedicated to providing delivery solutions to
its customers. The global transportation and distribution business is a vast industry which
is estimated to be worth over US$3,500 billion. TNT serves more than 200 countries, is
present in 64 countries and employs around 160,000 people. Its revenue in 2009 was over
10 billion Euros. TNT Express is in the business of transferring goods and documents
around the world tailored to its customers’ requirements. It is TNT’s business to deliver
the “business” of its customers at the right time and at the right place. With 30,000
vehicles and 48 aircraft, it is the largest Express operator in Europe. In 2009 TNT won a

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number of awards including the Clinton Global Initiative Corporate Citizenship Award
and was the top scoring company in the Dow Jones Sustainability Index.

In a competitive market, the right strategy is a key to survival and success. TNT is
reviewing its strategy in the world after the global recession. One strategic area is that of
the Emerging Markets which includes the Middle East.

The Human Resources function at the TNT Express Head Office develops policy and
tools to be used by Regional Centers and Country Operations. Understanding that ‘one
size’ does not fit all, the tools are flexible enough to be localized where required, so
enabling HR to integrate into local business needs.

One key factor behind their spectacular track record is the HR function and the
enthusiasm, dedication and professionalism of the people. TNT values its people,
motivates them, empowers them, recognizes their contribution and rewards them. It has a
Sure We Can” culture, where employees are encouraged to be innovative and to show
commitment to their job. The key objective of Human Resource at TNT is to develop
people and their competency at all levels and in continuing efforts to aspire to be the best
employer TNT has moved beyond people management and had introduced EVP, to prove
their mission.

“Our ambition is for our people to be a competitive advantage for TNT Express and for
TNT Express to become recognized as a preferred employer in the Express industry.”

HR Express Statement
WHY EVP AT TNT EXPRESS?

The Regional General Manager MEA called the HR Manager into his ofiice. He asked
‘Why is it taking so long to hire an Operations Manager in Bahrain and a Sales Manager
in Saudi Arabia

The HR Manager explained, ‘The talent we need is hard to find in the region. It is
diflicult to find candidates who want to work in these countries’. The Regional General
Manager considered this for a moment, and said, ‘It is up to you to ensure that we can

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always attract candidates for our jobs. I want these immediate vacancies filled within 4
weeks and I want a permanent solution to this problem
The HR Manager returned to her oflice. She could meet the deadline for hiring but how
should she go about creating a long term strategy to ensure the creation of a larger pool
of candidates for TNT in the Middle East. There were other positions which were also
diflicult to recruit in the region. The only way would be to raise the profile of TNT as an
attractive employer. She recalled a presentation about Employee Value Proposition at
Divisional HR Conference 2 years ago, and the work that had been done in this area
afterward. The benefits of E VP were candidate alignment to the organization, a greater
talent pool and better retention which would answer her immediate issues. After doing
some further reading, she decided that creating and implementing EVP in an arena of
increasing competition for talent would be a lasting and successful strategy for TNT
TNT Express, known for its journey towards bringing excellence at work place, sensed
an urgency to introduce EVP and conducted a pilot study in three countries namely,
Kuwait, Bahrain and Saudi Arabia to create an Employee Value Proposition that
highlights the most competitive and strategically relevant aspects of TNT Express and
further to identify human resource investments that matter most in attracting and
retaining the talents.
The HR manager Ms. Jackie planned a structured study to be implemented in two phases.
The first phase of the study was to identify the factors important for attraction and
retention of talent and also to bring out the differences, if any, in the choice of factors
selected by the employees of TNT express in three major countries.
After thoughtful consideration of all relevant factors, the second phase of the study was
aimed to identify the competitive aspects of the value proposition that best aligns with
TNT’s strategy, culture, HR investments and competitive differentiation with the
employment value proposition, to achieve the desired results.
She planned a systematic study to collect the data through survey on employees’
preferences and perceptions to determine the Employee Value Propositions’ factors of
attraction and retention. This survey also took into consideration the differences in the
choice of factors selected by the employees.

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