There are many benefits of having an employee value proposition
But, what are they and how do you create one?
Between skill shortages and employees looking at new opportunities, many companies will need to look at what they can do to attract new team members and retain their talent, and that is where your employee value proposition comes in!
According to Recruitment and Employment Confederation, there were a total of 1.66 million job adverts in the UK at the end of August, with HGV drivers and nurses in highest demand.
The tech industry is also expecting to experience a mass exit with almost half of tech employees saying they will be job hunting in the next 12 months (Qualtrics), causing a skills crisis for those with digital expertise.
With remote and hybrid working changing the employment landscape, most employees now have plenty of choice for their next role and are becoming more discerning when looking for their next employer. They’ll be looking for employers that inspire and support them both inside and outside of work.
Plus, a new generation is starting to make impacts on their working world. According to a study by WeSpire, Gen-Z is prioritising purpose over salary and choosing where they work by evaluating potential employers’ mission statements and values and ensuring they align to their own values.
This is why your employee value proposition is more important than ever. Here’s how you can create one…
What is an employee value proposition?
Previously, an employee value proposition (EVP) would be seen as the balance of rewards and benefits your teams would receive in return for their performance at work. But in more recent years, it has become more than that.
Your EVP should encompass everything that your employees need to achieve their highest potential at work and boost their engagement. This includes your support system, how you recognise them, your values and your company culture.
It helps you to establish a strong employer brand by defining your essence, what you stand for and what makes you unique. This will all be the reasons that your employees want to work for you, and help you stand apart from the competition when attracting new talent.
The benefits of a strong employee value proposition:
There are many benefits of having a strong EVP, including:
- Improving your employee engagement: According to a Towers Watson study, organisations that use their EVP most effectively are 5 times more likely to report high employee engagement.
- Helping your bottom line: Companies are twice as likely to achieve better financial performance than those who use EVP less effectively (Towers Watson)
- Attracting and retaining your top talent: A study by Gartner found that businesses that deliver on their EVP can decrease their annual employee turnover by just under 70% and increase new hire commitment by nearly 30%.
Despite these benefits, only 43% of organisations have a long-term plan in place to support their EVP (Towers Watson). Here’s what you can do…
How to create a compelling employee value proposition:
Make a plan:
The first step in creating your EVP is to understand what you want to get out of it. Some goals you could look at are attracting talent, reducing your time to hire, and helping retain your employees.
Understand how people see your businesses:
Next, you need to understand how people currently see you and the areas you can improve. There are a few ways to do this, including:
- Speak to your highest performers: these are the type of employers you will want to attract, so speak to them to see what about your company they value and what motivates them.
- Reach out to those candidates that rejected your offer: this may seem unusual, but one of the best ways to find out how you are perceived by the type of candidate you want is to speak to any candidates that didn’t accept your offer. Reach out to them and find out if they’d be willing to answer a few questions as to why, this will highlight the areas you need to improve on.
- Don’t forget about exit interviews: conducting exit interviews will highlight to you the reasons your employees started to look for other opportunities and what changes you need to strengthen your offering.
- Make use of external review sites: to get an unfiltered opinion, look at anonymous review sites to see what people are saying about your company.
Define your key USPs:
Now that you know what your current employees value and the areas you can improve on, it’s time to define what your business embodies and how this can fit into your potential employees’ values. You should consider:
- Financial rewards: from salary, bonuses and rewards like vouchers and gift cards. As well as the financial compensation you should consider your holistic benefits offering.
- Benefits that can support them: from discounted Gym Memberships to Cycle To Work Schemes or Health Screenings and Employee Assistance Programmes, there are plenty of benefits that will help your employees stay well.
- Focusing on career development: from formal training to mentoring or lunch and learns, developing your people can help you retain your employees.
- Improving your work environment: your EVP should include a focus on your work environment, wherever your teams are based. This could include flexible working hours, work-life balance, recognition and team building. According to a survey by Reed, the benefits that were most important to working professionals include: remote working, flexibility and more paid time off.
Don’t forget to vary your EVP for different roles and levels:
Your employees that are just starting out will want different things from their employer than more established professionals. For example for your younger employees, you should highlight any career development opportunities you have.
After defining your EVP, the next step is to communicate it! This includes letting potential candidates know using your company website, talking about it in interviews as well as using your internal communications channels for your current employees.
Remember to review it every year:
The employee experience is constantly changing, and your EVP will need to change with it. You could use annual engagement surveys to regularly get feedback on what’s working and where you need to improve.
A strong employee value proposition can really help you attract your ideal candidate, retain your employees, and improve your engagement. It may seem like a daunting task to create one, but you don’t have to do it alone.
How we can help with your EVP:
Your employee benefits are key to creating your employee value proposition, we can help you create a strategy that aligns to your goals. Get in touch today to speak to our experts to get started!