There’s more to attracting the best talent than a competitive remuneration package. Your employer branding and employment value proposition (EVP) have an important part to play, too.
The next generation are changing the future of hiring. From the duration of their tenures and their agile working styles, to the qualities they look for in an employer, businesses are finding that they need to adapt their approach in order to secure the best talent.
An employment value proposition is an excellent way to strengthen your appeal to quality candidates, to keep them invested long-term and to attract other top performing individuals.
Here are the ingredients of a great employee value proposition and why you should develop one.
What is an EVP?
In its most basic form, an employee value proposition (EVP) is a compelling list of benefits your company provides its employees. It’s a psychological contract that forms an important part of your employer branding and reveals what you, as an employer, are willing to provide employees in exchange for their skills and loyalty.
The benefits of an employee value proposition
Establishing a strong employee value proposition has a multitude of benefits:
• Provides a point of difference
The competition to secure top performing talent is intense. Candidates will be looking for factors that set one role apart from another, and although remuneration packages do play a significant part, a solid employee value proposition can give you the edge.
Despite it’s obvious advantages, only one third of managers in medium to large-sized companies say they’ve leveraged their points of difference to candidates within an EVP. This one simple addition could win you a long-term top performer!
• Creates loyalty
The idea of having a job for life is in danger of falling out of favour—60% of millennials say they’re open to new job opportunities. They’ve been named the generation most likely to switch jobs, which is unfortunate when you consider that they’re the future of our workforces.
Because an EVP represents a deal between both employer and employee, it is an excellent tool to help foster loyalty. To ensure it’s effective, it should be aligned with the goals of the company goals and the employee’s personal development plan.
To help keep this on track, employers should aim to issue an anonymous employee survey at least once a year to gauge how well they’re fulfilling their commitment and where adjustments can be made.
• Puts company culture at the forefront
Two fundamental factors in an employee’s workplace happiness are cultural fit and engaging in meaningful work. The right employee value proposition plays a key role in both these factors.
Today’s workforce puts a high value on company culture, so when you use yours to appeal to candidates, you’ll naturally attract those who are a good fit. A recent study found that 70% of professionals between the ages of 18 and 35 are attracted to companies who share their values. The choice to work for values provides a sense of satisfaction, which feeds back into your overall company culture.
• Shows accountability
The simple act of making a commitment to your employees with an employee value proposition shows that you aren’t afraid to be held accountable for your actions as a business.
This level of transparency and honesty at a management level is extremely heartening for potential employees and something they find very attractive. Our research shows that a sense of fairness plays a huge part in how happy your employees are at work and, along with transparency, are employer traits specifically being sought in the current hiring market.