The talent market has changed drastically, and so have modern organizations. Hiring and retaining employees is not just transactional anymore, and organizations realize the need to view it more strategically. The current millennial workforce doesn’t like merely earning the big bucks; how, where, and in what setting they earn it matters more than ever. In a competitive talent market, organizations need to develop an X factor to attract the best people.
As a result, the employee value proposition (EVP), is increasingly becoming popular in the people management space. “What can we, as an organization, offer in lieu of your professional services?” EVP is not just a statement, but also a promise that the organization delivers to the workforce, fulfilling work that instills pride and gives a sense of belonging.
Why do organizations need a compelling EVP?
According to Gartner, organizations that effectively deliver on their EVP can decrease annual employee turnover by 69 percent and increase new hire commitment by nearly 30 percent. Thus, in today’s highly candidate-driven market, a compelling EVP provides organizations the perfect strategy to steer clear of the clutter and differentiate themselves from their competitors. While zeroing in on a job, candidates not only weigh tangible aspects like compensation, but also look at intangible aspects like work-life balance, culture, talent mobility, and professional development among others that fuel their personal and professional goals.
EVP shows that your organization, among all the employers out there, is willing to match their ambitions with your thoughtful initiatives and policies that culminate in elevating employee performance. A bespoke EVP contains elements that appeal to talent groups from different cultures, age groups, and functions but always addresses with a unified voice.
Developing an effective EVP
Every EVP rests on a framework that is primarily known as ‘brand pillars.’ These pillars help develop a framework that identifies your ‘employer genome’ and allows for its adaptation. Individually, these pillars represent an undeniable facet of your organizational ‘being.’ Collectively, they merge and evolve into a ‘rallying cry’; a statement that holds all life and meaning of your ‘proposition.’
It is crucial to remember that EVP is both for internal and external talent. Besides, the journey to a compelling EVP begins with inputs from both these talent subsets. Delve deeper and understand the mood of the organization internally; what are the pain points, what is obstructing the culture of growth, what are the benefits that your employees value? External candidates provide valuable feedback regarding candidate experience, brand perception, and other vital components of EVP. Once you have the answers to these questions, involve your leadership team to ensure that the proposed EVP is aligned with organizational goals and vision. Collaborate with your marketing communications team to effectively communicate your EVP internally and externally.
Making EVP the organization’s strength
At a time of high attrition and talent crunch, organizations understand the need and urgency to provide a differentiated experience at workplaces. EVP strategies have two main advantages over traditional employee engagement tools. Firstly, it takes a 360 degree view of the relationship, beginning well before a new hire comes on-board. Secondly, it allows for extended engagements between employees and employers long after they leave the firm through initiatives such as the alumni network.
Above all, establishing an EVP yields something quintessential as the kind of talent that comes in and stays. Motivated employees automatically become your brand ambassadors externally, thus eliminating the overhead of an expansive talent pool.
The ability to attract top talent and to retain them would be an accurate measure of success for your EVP. Thus, determine if the rate of offer letter acceptance has increased. Similarly, ask yourself if there is positive feedback from employees and candidates that reflect the values of your EVP? Answers to these questions will give you some indication of where you are headed on your employee value proposition journey.
There is no denying that talent will always remain at the core of an organization. However, in today’s disruptive business environment, perception of talent towards the organization, and what it stands for can impact the course of the organization significantly. Therefore, it is indispensable for organizations to cultivate a strong EVP in order to attract and retain the best talent.