John M. Bremen and Thomas O. Davenport

Every year the typical global organization with twenty thousand employees invests approximately $3 billion in employee programs that include salaries and bonuses, stock grants, healthcare and retirement benefits, training, and paid time off. These employers also invest in creating employee-friendly cultures and workplaces. And too often, organizations spend these funds without clearly understanding whether the programs align with the preferences and usage patterns of those who will consume them, or whether they’re likely to achieve their intended results. This is where segmentation can play a valuable role. Just as organizations segment external consumer populations, they can segment employee groups to explore their values, attitudes, and preferences.

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