1. Company Values and Employment Branding: Alignment and Engagement
American Marketing Association
March 24, 2009
Rick Garlick, Senior Director of Consulting and Strategic Implementation, Maritz Research

2. The Importance of Values
Brands represent a value proposition to both employees and customers.
Corporate values inform the mission of the company.
Just as customers seek out companies that represent the values that are important to them, so do employees.
Employees are more engaged when they share their companies’ values.
To the extent that employees are aligned behind their companies’ core values, the more motivated they are to deliver the promised brand experience to customers.

3. The Current State of Value Alignment
Only one-in-ten (12%) of North American employees ‘strongly agree’ that their values and their companies’ values are ‘completely consistent’
Twice as many actively disagree

4. The Study Maritz conducted a full-blown study to understand
Which workplace values are most important to employees?
How do company values impact how employees do their jobs?
Which values are most important to attract and retain talent?
How do company values impact customers?
How do values relate to company profitability?

5. The Study 1478 full-time employees 18 years or older
Work 30+ hours or more per week
Not self employed
Wide variety of business sectors
Conducted online
Panel provided sample
Wide range of questions
65 total questions surveying attitudes toward employer

6. The Study Each person was also shown 26 ‘value’ statements.
‘Q-Sort process
Asked to select which three value statements most and least represented the values they most associated with their company.
Process was repeated for ‘next most’ and ‘next least’ important statements until all values were categorized.
Cluster segmentation analysis was performed to profile each person into a ‘value segment’.
Segments examined both ‘important’ and ‘unimportant’ values

7. Values Segments Values tended to cluster into four themes - ‘4 Ps’
Profit-oriented values
Driving profit for the company and stakeholders
Being entrepreneurial
Being driven to succeed
Competitiveness
Being the best in the business
Productivity-oriented values
Taking initiative
Fostering teamwork
Innovativeness
Efficiency
Hard work
Operational effectiveness

8. Values Segments (cont’d)
Principle oriented values
Being open in communication
Fairness
Caring and concern for employees
Respect
Trust
Honesty and integrity
Having high ethical standards
Doing the right thing at all times
Strong commitment to customer service
Progressive oriented values
Being environmentally responsible
Having a commitment to diversity
Being socially responsible
Adaptability

9. Segment 1: High Profit-Focus; Low Principle-Focus (16%)- ‘Win at Any Cost’
Most defining values are
Driving profit for the company and stakeholders
Competitiveness
Being entrepreneurial
Operational effectiveness
Being driven to succeed
Least defining values are
Honesty and integrity
Having high ethical standards
Caring and concern for employees
Fairness
Trust
Respect

10. Segment 2: High Progressive-Focus; Low Profit-Focus (16%)- ‘Social Progressives’
Most defining values are
Adaptability
Being environmentally responsible
Having openness in communication
Fairness
Commitment to diversity
Least defining values are
Being the best in the business
Having a strong commitment to customer service
Driving profit for the company and stakeholders
Being driven to succeed
Competitiveness

11. Segment 3: High Principle-Focus; Low Profit-Focus (15%)-’Always Do the Right Thing’
Most defining values are
Honesty and integrity
Doing the right thing at all times
Having high ethical standards
Respect
Caring and concern for employees
Least defining values are
Driving profit for the company and stakeholders
Competitiveness
Being the best in the business
Being driven to succeed
Being entrepreneurial

12. Segment 4: High Profit-Focus; Low Progressive-Focus (14%)-’The Traditionalists’
Most defining values are
Driving profit for the company and stakeholders
Being the best in the business
Running efficiently
Being driven to succeed
Competitiveness
Least defining values are
Being socially responsible
Being environmentally responsible
Having a commitment to diversity
Openness in communication
Adaptability

13. Segment 5: High Principle-Focus, Low Productivity- Focus (14%)-’People and Customers First’
Most defining values are
Caring and concern for employees
Honesty and integrity
High ethical standards
Doing the right thing at all times
Having a strong commitment to customer service
Least defining values are
Operational effectiveness
Efficient
Adaptability
Competitiveness
Innovativeness

14. Segment 6: High Profit/Progressive-Focus; Low Productivity/ Principle-Focus (13%)-’A Cause for a Profit Purpose’
Most defining values are
Driving profit for the company and stakeholders
Competitiveness
Commitment to diversity
Being socially responsible
Being driven to succeed
Least defining values are
Efficiency
Operational effectiveness
Caring and concern for employees
Fairness
Honesty and integrity

15. Segment 7: High Productivity-Focus; Low Profitable/ Progressive/Principle-Focus (13%)-’Quality and Efficiency’
Most defining values are
Operational effectiveness
Being the best in the business
Strong commitment to customer service
Efficiency
Innovativeness
Least defining values are
Driving profit for shareholders
Being entrepreneurial
Doing the right thing at all times
Being environmentally responsible
Fostering teamwork

16. Which Values are ‘Best’?
For ‘engaging’ employees?
For attracting and retaining employees?
For improving service quality?
For driving profit?

17. Engaging Employees Four engagement questions
Overall, I am completely satisfied with my job.
I would be very happy to spend the rest of my career with my present company.
I would strongly endorse my company to friends and family as a great place to work.
I look forward to coming to work every day.

18. Engaging Employees Segment Average % ‘Strongly Agree’ for four items
Average % ‘Disagree’ for four items
‘Always Do the Right Thing’ (15%)
28% 7%
‘People and Customers First’ (14%)
27%
10%
‘Quality and Efficiency’ (13%)
18%
14%
‘Social Progressives’ (16%)
21%
‘The Traditionalists’ (14%)
12%
‘A Cause for a Profit Purpose’ (13%) 9%
‘Win At Any Cost’ (16%) 6%
43%

19. Attracting and Retaining Employees
Did the brand image and reputation of your company influence your decision to work there?
% ‘Yes’
‘People and Customers First’ (15%)
46%
‘Social Progressives’ (16%)
40%
‘A Cause for a Profit Purpose’ (13%)
‘Always Do the Right Thing’ (15%)
39%
‘Quality and Efficiency’ (13%)
36%
‘The Traditionalists’ (14%)
35%
‘Win at Any Cost’ (16%)
31%

20. Attracting and Retaining Employees
Of ‘Boomers’ who chose a company based on brand reputation, 22% chose a ‘People and Customers First’ company; while only 7% chose a ‘Traditionalist.’
Of ‘Gen X-ers’ who chose a company based on brand reputation, 18% chose a ‘Social Progressive’ company; 10% chose a ‘Quality and Efficiency’ company.
Of ‘Gen-Yers’ who chose a company based on brand reputation; 21% chose a ‘Social Progressive’; however, only 8% chose a ‘Cause for a Profit Purpose’ company.

21. Attracting and Retaining Employees
Additional questions related to retention
I am proud to work at my company.
If I had the chance to do the same work at the same pay for a different company, I would stay here
The pay I receive at my company is fair for the work I perform.

22. Attracting and Retaining Employees
‘I am proud to work for my company’
% ‘Strongly Agree’
% ‘Disagree’
‘Always Do the Right Thing’ (15%)
44% 3%
‘People and Customers First’ (14%)
41% 2%
‘Quality and Efficiency’ (13%)
29%
‘Social Progressives’ (16%)
23% 8%
‘The Traditionalists’ (14%)
19% 6%
‘A Cause for a Profit Purpose’ (13%)
12%
10%
‘Win at Any Cost’ (16%)

23. Attracting and Retaining Employees
‘If I had the chance to do the same work at the same pay for a different company, I would stay here’
% ‘Strongly Agree’
% ‘Disagree’
‘People and Customers First’ (14%)
45% 6%
‘Always Do the Right Thing’ (15%)
44%
‘The Traditionalists’ (14%)
28%
13%
‘Quality and Efficiency’ (13%)
27%
14%
‘Social Progressives’ (16%)
24%
19%
‘A Cause for a Profit Purpose’ (13%)
12%
23%
‘Win At Any Cost (16%)
11%
42%

24. Attracting and Retaining Employees
‘The pay I receive at my company is fair for the work I perform.’
% ‘Strongly Agree’
% ‘Disagree’
‘Always Do the Right Thing’ (15%)
19%
18%
‘People and Customers First’ (14%)
17%
‘Quality and Efficiency’ (13%)
14%
26%
‘The Traditionalists’ (14%)
10%
22%
‘Social Progressives’(16%) 9%
31%
‘A Cause for a Profit Purpose’ (13%) 7%
30%
‘Win At Any Cost’ (16%) 5%
45%

25. Values and Customer Service
Two items used to evaluate the quality of customer service
How much do you enjoy interactions with your company’s customers? (customer affinity)
Our customers would rate the service we deliver as “excellent.” (service quality)

26. Values and Customer Service
‘How much do you enjoy interactions with your company’s customers?’
% Who ‘Very Much’ Enjoy Customer Interactions
‘Always Do the Right Thing’ (15%)
61%
‘People and Customers First’ (14%)
55%
‘Quality and Efficiency’ (13%)
‘Social Progressives’ (16%)
50%
‘The Traditionalists’ (14%)
48%
‘Win at Any Cost’ (16%)
‘A Cause for a Profit Purpose’ (13%)
42%

27. Values and Customer Service
‘Our customers would rate the service we deliver as excellent.’
% ‘Strongly Agree’
% ‘Disagree’
‘People and Customers First’ (14%)
29% 4%
‘Always Do the Right Thing’ (15%)
27% 5%
‘Quality and Efficiency’ (13%)
21%
‘The Traditionalists’ (14%)
17%
11%
‘Social Progressives’ (16%)
12%
16%
‘A Cause for a Profit Purpose’ (13%) 7%
18%
‘Win At Any Cost’ (16%) 6%

28. Values and Profitability
In a study such as this, it is difficult to connect an individual’s perception of his/her company’s values to actual company performance.
However, responses to the item ‘If I could, I would invest my own money in my company’ have been consistently linked to company profitability in proprietary studies.
Key question: Does emphasizing profitability as a core value actually lead to greater profitability?

29. Values and Profitability
‘‘If I could, I would invest my own money in my company’
% ‘Strongly Agree’
% ‘Disagree’
‘People and Customers First’ (14%)
26% 9%
‘Always Do the Right Thing’ (15%)
20%
14%
‘Quality and Efficiency’ (13%)
18%
22%
‘The Traditionalists’ (14%)
16%
23%
‘Social Progressives’ (16%)
15%
28%
‘A Cause for a Profit Purpose’ (13%) 6%
33%
‘Win At Any Cost’ (16%)
47%

30. Value Alignment
To what extent are employee values aligned with the companies for whom they work?
‘My company’s values are completely consistent with my own values.’ (value alignment item)

31. Value Alignment
‘My company’s values are completely consistent with my own values.
% ‘Strongly Agree’
% ‘Disagree’
‘People and Customers First’ (14%)
26% 7%
‘Always Do the Right Thing (15%)
25%
‘Quality and Efficiency’ (13%)
14%
‘Social Progressives’ (16%)
11%
20%
‘The Traditionalists’ (14%)
17%
‘A Cause for a Profit Purpose’ (13%) 2%
30%
‘Win At Any Cost’ (16%)
46%

32. Summing it Up
Being a highly principled company is critically important for success in any/every area (e.g., attracting talent, engaging employees, being profitable, etc.)
Companies that only emphasize making a profit at the exclusion of having any other higher order values seem doomed for extinction.
If a company engages in ‘socially progressive’ activities, but doesn’t demonstrate any real moral commitment behind those principles, it will realize few tangible benefits.
Being a ‘socially responsible company’ will help attract talent, but will not sustain employee engagement for the long-term, unless these initiatives are undergirded by solid ‘people principles’.

33. Q & A?

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